Having beaten almost 500 teams to make it to the last 6 of Cerebration 2010, one of the world’s largest business plan competitions, the IE team had to settle for a position as runner-up having been beaten by Rottman of Toronto who were also presenting a strategy plan for Vestas. The students, Mark Peinhopf, Matteo…Details
IE Focus | By Barbara Huerta, Professor at IE Business School
Real estate promoters have been largely responsible for the crisis that has affected their sector so badly, and now they are finding out exactly where their business plans went wrong.´Own less to owe less´. With these words, Rafael Santamaria, CEO of Reyal Urbis, summed up his new business strategy at the end of 2008. The liquidity shortage and extremely high debt payment commitments meant that all real estate companies in the country had to let go of their assets. But how did this change in fortune come about in a sector that was heavily in debt only two years before taking on ambitious corporate projects? With a view to answering this question, I did a research project that led to my writing the book Promotores de la Crisis (Promoters of the Crisis) (Lid). In the book, I analyse the impact of the international financial crisis on the financial system and real Spanish economy and its impact on leading Spanish real estate businesses.
When did they start to blow air into the real estate bubble and why? Everything began with a positive macroeconomic environment, low interest rates and consumers who wanted to consume. But could such an illusion ever have been maintained indefinitely? We would soon see that it couldn´t. Those responsible for the monetary policy, albeit somewhat late, took measures to prevent overinflation by upping the interest rates. What would happen when the higher rates translated into an increase in the financial burden on homes and enterprise? The highest rates reduced the amount of income available to families. In addition, from mid-2007, families that were overwhelmed by the credit crisis started to encounter difficulties in obtaining mortgage loans and consumer credit. Liquidity was short, prices were still high, there was a general lack of confidence and the outlook for the deceleration of the construction and real estate sector was less than optimistic. 2008 confirmed expectations: the situation was getting worse.Details
Throughout architecture´s history, there has been the perception that the best designs were created by artists whose works remained untouched by the financial constraints of business. However, contemporary architecture has proven that excellence in design, although very necessary, is not quite enough to reach success. The majority of architects are, in fact, entrepreneurs and vocational…Details
The barriers to entry that have plagued the music industry for decades have made it the perfect example of an imperfect market. The internet can put an end to this situation, but there are plenty of people who don’t want it to happen.An imperfect market is when the supply and demand are conditioned or altered so as to prevent normal development. Imperfect markets are often the result of monopolies, exclusivity, obstacles, blocks, etc. caused by many situations that usually lead to inefficiency.
One typical example is the music market. For many years the supply was conditioned by the “selection” process that a small number of leading record companies applied to talent. You could be a genius, propose something that was original and interesting or sound incredibly good, but if you did not pass through the record company´s filter, it was more or less impossible to access the market. The filter could depend on the mood of the person listening to your demo, your sponsors, all kinds of commercial criteria or even what you were willing to do to pass the first stage of the selection process, but if you did not pass it, your possibilities were very low indeed. The capacity for self-production was minimal, the capacity for distribution was almost zero and for promotion it was just pie in the sky: demand was also controlled and manipulated through access to the media.Details
IE Business School´s International Executive MBA program has been rated the best in the world in the report on online management education published today by The Economist. IE Business School shares the top position with the University of Florida (U.S.), rated for its Internet MBA. The rating further consolidates IE´s position as a leading business…Details
Even though considered as one of the world’s leading business school, IE has much more to offer than management related degrees as you will find out during the upcoming QS World Arts Fair in Kuala Lumpur, Singapore, Shanghai, Seoul and Tokyo. … or in case you don’t have time, just browse through the following presentation…Details
On behalf of the entire IE Community – Professors, Staff, students and alumni – we wish you a good start into the Year of the Tiger!
By Fernando Fernandez, Professor at IE Business School As the decline of macroeconomic indicators finally starts to ease, some can now see light at the end of a tunnel. But we are not out of the woods yet.January has not brought much new information or many original comments. Except, perhaps, the fact that the international…Details
“Does Marketing Run through your veins?” This was the slogan for this year’s Novartis Masterminds Challenge, a marketing competition sponsored by the leading farmaceutical company with the objective to search for professionals with management skills and passion to demonstrate their talent, lead and execute a marketing plan in the healthcare sector. Our Master in Management…Details
By Enrique Dans, Professor at IE Business School Many people use their mobile phone for much more than speaking, with the result that mobiles are now designed to fit well in your hands rather than against your ear. They’re no longer phones. They’re computers.I have always been particularly interested in adaptation processes where technology is…Details
By Prof. Javier Carrillo, Professor at IE Business School The inability to reach an international agreement which would bring continuity to the current Kyoto Protocol is incomprehensible, from both an environmental and business perspective.After 12 days of intense work, last weekend saw the closure of the 15th Conference of the Parties (COP 15) of the…Details
As first Spanish business School IE launched this week its content on iTunesU. It’s an exciting project and provides insights about the academic sphere for interested academics and candidates . The IE Multimedia Campus was the first step to generate this content but iTunesU facilitates to take it on the move, watching and listing to…Details
IE Focus | By Gonzalo Garland, Professor of Economic Environment at IE Business School The dollar is at an all time low, and everything points to it continuing to show signs of weakness over the next few months. Is this the beginning of the end of its reign?In the last few weeks we have seen…Details
Experimental findings and methods in the behavioral sciences are becoming increasingly important in fields like economics and finance which until the last few decades relied heavily on models of rationality that often failed to predict real world behavior. As Professor Lee Newman comments, “We can study how people should behave and how people actually behave.…Details