IE Business School is the No. 1 business school worldwide in the Wall Street Journal ranking of one-year programs. This result further consolidates IE Business School’s position as an international leader in the field of management education. The ranking is based on the opinions held by some 1,300 MBAs students from 48 business schools on…Details
IE Focus | By Rafael Hurtado, Professor at IE Business School
The collapse of the stock market has highlighted the shortcomings of the hedge fund system of short sales and fuelled debate on the need to set limits and rules for this type of operation.In recent months, and in particular after the great crash of the stock markets as from September 2008, the hedge fund system of short sales has been a subject of analysis and debate by many players on financial markets. The consequences and system of short sales are a source of great controversy in the financial sector.
Short sales take place through the loan of securities. A short position (short sale) takes place through the sale of an asset that is not held by the investor, but borrowed through an intermediary and later bought to pay the loan. The profit is obtained if the initial sale is completed at a higher price than the purchase price. With a short sale, the investor obtains greater profit if the price of the asset falls.
On many occasions, hedge funds not only involve short sales, but also use a significant amount of leverage. For a short sale, an intermediary must lend a certain number of shares. Some companies say that they have uncovered signs of their shares being lent as part of a chain. This type of transaction involves further risk.Details
The concept we have had of computers to date is set to disappear under a landslide of Internet realities that offer a new way of working online. Google´s announcement of its project to launch an operating system, Google Chrome OS, is not just another announcement in the hyperactive wasteland of technology news. The announcement is something more than that. It is a change of concept that affects the definition of a computer and what we do with it. Something that is going to change the way we work.
For many years now a computer has been the machine used to do the same things that were done without it, only more quickly and more efficiently. The word processor was a post-modern typewriter that produced results that were aesthetically better in less time by separating the composition process from the printing process. The spreadsheet was a “calculator on steroids”, which avoided the sequential repetition of chains of operations by placing them on coordinates. A bookkeeping or salary application was the fast way to tackle a monthly task that was both tedious and repetitive. For workers, a computer was a machine they used for doing the same thing, but more quickly. And to do that, they needed hardware, an operating system and the right applications. Last century´s computing system: buy a computer, which comes with a large, heavy operating system “that has everything” (including a computer and a game of solitaire!) and then buy the programmes you need to “do things”.Details
IE Focus | By Kenneth Dubin, Professor at IE Business School
In an environment marked by uncertainty, scant resources and a lack of interconnectivity, people management should be based on structures that are more horizontal and less formal coordination systems.The present crisis should mark a before and after in human resources management. Politicians and social players will (or may not) reform the employment market and the labour relations system. However, for businesses and managers (and also for employees), the change is a must: yesterday´s competitive strategies have expired and taken with them the (bad) habits we acquired in people management.
The current situation is defined by uncertainty, the shortage of financial resources and the revolution of inter-connectivity; new business commitments in both SMEs and multinationals must be quick, flexible and innovative. This means working by project and generating value through knowledge rather than capital resources. Projects require collaboration between the functional areas of the company and also between the company and external agents (suppliers, other businesses and, more often than not, clients) and who may be located far from Spain.Details
It is curious to see how flexible we are when we are affected by an economic crisis. Suddenly, established business models are changing within weeks. Companies develop creative solutions to their problems they had for years – and these solutions are working well from spot. Of course, some corporations have to lay off people, but…Details
Follow this brief introduction into the IE Master in Sports Management from the Academic Director, Antonio Martin Antolí. This program is aimed at professional from the Sports industry or those who might enter this exciting sector where passion for sport meets business realities. Blend this 13 month program with your professional career and get engaged…Details
IE Focus | By Carmen Abril, Professor at IE Business School
Things are not often black or white, but rather tend to come in varying shades of gray. The world of white brands is no exception. They are no better or worse than other products, but they are certainly competitive.We are currently witnessing a controversial debate on white brands in Spain owing to the rapid growth they have enjoyed in recent months, where they have reached 38% of the sales of packaged large-consumption products.
As a result of this situation, which, on the other hand, is nothing new, many manufacturers, such as Danone, Nabisco and Kellogg´s, among others, have launched a massive advertising campaign to clarify certain concepts that consumers supposedly confuse regarding the manufacture of white brands in the hope that the message hampers their growth.
The importance of the issue and the controversy it has caused is worth taking a look at. First of all, we should start by giving this type of brand its correct name: if, by white brands, we understand undistinguished products based purely on their composition and ingredients and directly comparable with others, such as generic drugs, the name given to these products is incorrect.Details
Enjoy this new video about IE’s social engagement and how we include social entrepreneurship into our Master programs.
IE Focus | By Rafael Puyol, President IE University The summer is here, bringing with it a series of new hires that could send the budgets of several football clubs into meltdown – strange behavior indeed in the current economic climate.Globalisation has reached football, a sport also affected by the brain drain, the exodus of…Details
On July 9, 10 and 11 IE University, in collaboration with the Social Entrepreneurship and Education Consortium (SEEC), hosted a conference for international experts in Social Entrepreneurship in Segovia. This event, organized by IE professor Rachida Justo, was the first international workshop in Spain on Social Entrepreneurship. The conference was joined by experts from over 20…Details
there are two. A man would praise the first one after understanding her.
The other is blameworthy: and their spirit is wholly different.
For one fosters evil war and battle,
being cruel. No man loves her, but men, forced
by the will of the inmortals, pay honour to harsh Strife.
But the other was born the first from dark Night,
and the son of Cronos, who sits above and dwells in the aether, set her
in the roots of the earth: and she is much better for men.
She wakes up even the shiftless to work;
for a man grows eager to work when he sees another
rich man who hastens to plough and plant
and put his house in good order; and neighbour vies with his neighbour
as he hurries after wealth. This Strife is good for mortals
And potter is angry with potter, and craftsman with craftsman,
and beggar is jealous of beggar, and bard of bard.
However, many foreign analysts are asking why the subprime hurricane has had hardly any effect on the Spanish market in comparison with its impact on the North American or British banking market if, in theory, Spain was on a similar track (housing price bubble, high credit penetration and runaway foreign deficit). Although many have responded to this question with apocalyptic visions, it is our opinion that the actual situation is much less dramatic. In this article, we will make a detailed analysis of this opinion as objectively as possible.
As was pointed out by Alfredo Sáenz, CEO of Banco Santander, subprime mortgages do exist in Spain. However, his statement needs to be explained: yes, they do exist, but to a much lesser extent than in other markets. Where do they come from? There are two basic ways in which the subprime disease can be caught: by awarding subprime mortgages or by buying securitisations linked to subprime risk. If we analyse the first of the phenomena, there are four very good reasons why hardly any subprime mortgages have been awarded in Spain:Details
There are politicians who try to stop it, as if that were possible, as if those who oppose technological progress had ever won a battle against it. There are companies who confine it to specific functional areas or restrict it to specific personnel and there are even countries who try to block it so that citizens cannot gain access to it. We constantly come up against situations in which our options for using technology as we would like are scant or even non-existent due to not having access to a certain device, not having connectivity or a power supply, or to pure and simple ignorance.Details
IE Business School was ranked No.10 in the world and No.1 in Europe in the biannual MBA ranking by Aspen Institute. The Aspen Institute ranking, known as “Beyond Grey Pinstripes”, is considered the most prestigious of its kind and evaluates how social and environmental issues are integrated into the MBA programs of the top 100…Details