Dot-Com Crash Of 2000

Dot-Com Crash Of 2000
CASE OF STUDY DOT–COM CRASH OF 2000 1. What is the intended role of each of the institutions and intermediaries discussed in the case for the
effective functioning of the capital market? * Investors: Trade with proper education and information. * Investment Banks (underwrites): provide
advisory financial services, helped the companies price their offerings, underwrite the shares, and introduce them to investors, often in the form of a
road show. * Entrepreneurs and existing companies: their like to attract saving from savers to fund their business ideas Companies, but entrepreneurs
typically have better information than savers on the value of business investment opportunities. Secondly, communication by entrepreneurs... Show
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* Sell–side Analysts: they have to monitor the performance of public companies and determine whether or not their stock are good or bad investment at
any point in time. Additionally, they provide research to buy–side before the company go to public. * Investment Bankers, Sales Force and Trades: they
have to provide their expertise in helping companies to go public and introducing them to the investors. * Accountants, Auditors and Lawyers: Audit the
financial statements of companies and evaluate if they comply with establish standards and represent the true states of the firms. This give to the
investors and analysts the confidence to make decisions based on these financial documents. 2. Are their incentives aligned properly with their intended
role? Whose incentives are most misaligned? No, in fact some incentives are misaligned, such as: the payment of commission to investment banks
based on the amount of money that the company managers raise in its offering (around 7%). Additionally, the auditors because they received payment
form the same company which they are evaluating. 3. Who, if anyone, was primarily responsible for the Internet stock bubble? Venture capitalists,
because they was influenced by the ebusiness euphoria in the market and bring public companies with questionable business models, or not yet proven
themselves operationally and
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The Crisis On The Real Estate Market
House bubble situation on the real estate market is presented by condition when there are low supply and high demand at the same time, which causes
shortage on the market. (Yoshino, Nakamura and Sakai, 2013). Moreover, house price bubble is always associated with speculators who are buying
houses with the goal to resell it in the short term. These conditions appeared on London real estate market and caused В«Bubble TroubleВ». This essay
will discuss main causes of the bubble, matters of its bursting and danger, connected with bursting.
Very high indexes of demand in London are mostly caused by several components, such as: desirability of London, job opportunities and real estate
market seen as investment.
London is considered to be one of the most desirable cities to work and live in (Kollewe, 2014). One of the reasons of this indicator is connected with
В«best jobs and economic opportunities". (Chakrabortty, 2014). Moreover, people want to move to London, considering В«high salary prospects,
public healthcare and cultural diversity". Vast majority of foreigners (65 percent) consider buyingproperty in London as investment (Statista, 2013),
without goal to let for rent or live there (BNP Paribas real estate guide to investing in London, 2013). This is the most popular В«alternativeВ»
investment. (Gardina, 2010), which allows diversification of portfolio and spreads risk in the long term. (Mattson–Teig, 2014). This increasing percent
of not–to–rent type of property causes lack of

The Dot.Com Bubble Phenomenon: The rise and fall of the...
When the internet first made an appearance in the business world, outside of government and military use, the term dot.com was introduced. The
technical term ".com" is defined as a suffix used to describe a company that uses the internet as a primary or only marketplace for transfer of goods
and services. It was being used as a suffix to the several existing web addresses. It only took a few months for .com websites to become the dominant
form of business transaction (Simpson & Simons, 1998). The phenomenon behind this story lies in the rapid rise and fall of the dot.com companies and
the players, events, and mindsets that accompanied the bubble boom and bust (Simpson & Simons, 1998). In 1995 Netscape was one of the first dot.com
... Show more content on Helpwriting.net ...
Therefore, with the mania which swept the dotcoms came a massive amount of short term expectations which fuelled the bubble, or the "gold rush."
Overall, according to the Wall Street Journal, expectations are considerably market–based (Wall Street Journal). With the introduction of dot.com
businesses, many rules were changed in the way global financial professionals used indicators to foreshadow the future prosperity of companies and
shares. The old–style economy players were already trying to play the "internet game" by shifting their standard of e–commerce. An important
investigation of the Wall Street Journal found that a strong belief and faith in the dot.com companies would be the blue–chip of the future and
eventually helped spread the bubble. The old economy rules were not applicable anymore to the Dot.com bubble situation of financial markets, where
most of the principles got lost and forgotten (White C. & Schreb, 2000). Now that the beginning has been laid out, it is important to show how the
atomic bomb of dot.com shares – commonly referred to as a bubble – was created and ignited. There are many reasons for the initial failure in the face
of the World Wide Web. The principal reason investors were so hasty investing in dot.coms is they thought the odds/statistics and probability were in
their favor for making capital gains on their investments. Obviously, this is why most investors choose to part with their money but there was strong
reasoning

Disney's Folly
If you are looking for ways to make money, try thinking of something that you can offer to a niche market which has not been offered before. One
major problem in the world of Internet marketing is that people are afraid to stand out and go against the grain. The truth is that most online business
websites look like one another.
Way back during the dot come boom, coming up with the next cutting edge solution was the ultimate goal, and the actual business was secondary. The
person who was most creative was the person who would make the most money. In fact, even an amazingly novel idea was worth millions, or even
billions. Do you think I am being far fetched with this assertion? If so, visit your favorite search engine, and type in the name "Mark Cuban". How do ...
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Similar to Facebook and Twitter, he was ridiculed in his early years. In fact, many business geniuses are ridiculed prior to demonstrated success. For
instance, the press doubted that Disneyland had a chance of survival, and referred to it as "Disney's Folly". Funny huh? I wonder who got the last laugh.
Just know that if you have an idea which goes against conventional thinking, expect people to put that idea down. Just think back to the year 1996.
You are excited because you have determined that you are going to develop an online business in which you will give everything away for free. What
do you think would happen if you were to have shared this concept with your friends or family? They would probably have given you their movie
money and thanked you for the comedy.
The funny thing is that a company did actually develop on Internet business which was based on giving away everything for free. This company is
called Hotmail, and they gave their e–mail platform away for free at a time where everyone else was requiring either payment, or some sort of work
or scholastic affiliation. Hotmail was first, and Hotmail was, and still is

Amazon 's Largest Online Bookstore Amazon.com Essay
Jeff Bezos is the CEO and founder of the world 's largest online bookstore Amazon.com; In August 2013, Bezos spent 250 million US dollars on behalf
of the individual acquisition of "Washington Post". Bezos will use the private identity, rather than through the Amazon to complete the transaction. In
competing with other company market, the advantage of Amazon become more obvious, Amazon was one of the cheapest online bookstore, it always
on sale. Compare to other traditional bookstore, it was more convenient by just click the product and you can get all the books, and it has very fast
service. Amazon also provides efficient, reliable back–end services to an enormous range of customers through Amazon Web Service. In the company's
initial stage, to compete with other company, he took a year to build website and databases. At the same time, Amazon faced many challenges, the most
powerful competitors Barnes and Noble bookstore, and this is a struggle between tradition and modernity. Amazon 's initial business plan was
uncommon; it did not assume to make profits for at least four to five years. This deliberate "slow" growth made stockholders complain about the
company not reaching profitability fast enough to rationalize investing in it. However, when the dot–com bubble burst, destroying many e–companies
in the process, Amazon survived, and went past the bust to become a huge player in online sales. It eventually posted its first profit in the fourth
quarter of 2001: $5

America 's Largest Internet Service Provider
Situation Overview
Between January 1998 and January 2000 Time Warner's stock saw a 1300% increase as it grew to become the second largest cable provider in the
United States. Time Warner had grown into a major player in the media industry through a number of high profile mergers and acquisitions. In 1998
Time Inc. and Warmer Brothers merged in a deal where Time bought Warner Brothers for $14.9 billion. Gerald Levin, who had been CEO ofTime
Warner since December 1992, had done an excellent job in the eyes of the shareholders. Despite his remarkable success in his first eight years as
CEO, CNBC named Levin as one of the "Worst American CEOs of All Time." Levin was able to earn this distinction primarily in his leadership role
in the ... Show more content on Helpwriting.net ...
Case felt that the vertical integration of the two companies would promote synergy. They believed Time Warner could gain from AOL's experience and
brand recognition in the new Internet industry while AOL would benefit from Time Warner's cable infrastructure. The two CEOs noted that both
companies had comparable values that would mesh well together. Both sides had been interested in merging with another large company in a related
industry. AOL "had been plotting for months about how to use its high–priced stock to make a big acquisition. The company hired the investment bank
Salomon Smith Barney... to consider various targets." AOL was in talks with eBay and Electronic Arts while Time Warner was discussing a merger
with Yahoo. Levin and Time Warner felt that they had transform their company in order to be competitive in the fast paced Internet age. AOL feared
that if they did not move quickly to offer high–speed cable Internet their market share would vanish.
The two CEOs moved quickly and privately. After a few dinner meetings with Case, Levin discussed the deal with Richard Parsons, Time Warner's
president–he thought it was a good idea. Levin only discussed the deal with a few top executives and a deal was made in early January 2000. The deal
was announced publically on January 10, 2000 and at a value of $350 billion, it was the largest merger

Netflix Executive Leadership
Summary To better prepare the chief human resources officer for entering the arena of negotiation coaching recommendations for executive leadership.
Prior to the negotiation the (CHRO) would require that all transactions are represented through a negotiation. This strategy for trade is rehashed and
every now and again goes unnoticed. In the event that the mediation is at your demand, furthermore, you will wish to hold oversee beyond what many
would consider possible to begin the degree for achieving an agreement. Sharon Slade will need to know the who, what, when, where, why and how.
Whose involved from 1998–2012 in the issue is the Founder and CEO of Netflix Corporation Reed Hastings, Patty McCord who is the founder of
Patty McCord Consulting and the former chief talent officer at Netflix also who wrote the philosophy of Netflix Culture (McCord, 2014). There were
circumstances and events that played a part to the challenges Netflix faced such as the dot–com bubble burst, 9/11 and the impending IPO resulting to
1/3 of their employees to be let go. Employees were let go with a healthy severance and a great recommendation. At Netflix, building an extraordinary
group of gifted, submitted employees is a top need for directors. he timeline of when the issues began was 1998–2012. CEO Reed and Talent Officer
McCord started to strategize on a new vision for the company. Reed and McCord started to give a new meaning to the company core value and mission
statement. In the year

Stock Markets: The Castle in the Air vs The Firm...
Market Theories
Investments Seminar
Table of Contents
Introduction 3
Castle in the Air Theory 3
Firm Foundation Theory 3
Effects of the Market 3
Market Theories 5
The Tulip–Bulb Craze 5
Today's "Tulip–Bulb" Craze, the Dot–Com Crash 5
Conclusion 6
Introduction
Castle in the Air Theory
The Castle in the Air theory was introduced by John Maynard Keynes, an well known economist and successful investor of the 1930s. It was Keynes'
theory that the keys to investing came from supernatural or psychic means. ... Show more content on Helpwriting.net ...
Firm Foundation Theory
The firm–foundation theory speculated that each tool used for investment (stock, real estate, etc.) was directly related to intrinsic value. Intrinsic value
could be determined by carefully analyzing present–day conditions and future speculations. It was determined that when market prices fell below or
rose above this firm foundation a buying or selling opportunity would come about. Quite simply it became a matter of comparing the actual price
with its "firm foundation" of value. As stated in our text, the classic developer of this technique came from John B. Williams, a mathematician and
financial writer. Williams' formula for determining the intrinsic value of stock was based on dividend income. He introduced the concept of
"discounting" in order to determine this value. It was his belief, according to our text, that the intrinsic value of a stock was equal to the present or

"discounted" value of all of its future dividends. In other words a stock's value should be based on the earnings a firm will be able to distribute in the
future in the form of dividends. At this point, future expectations have to be included which would of course entail more intricate calculations. The
overall issue with the firm foundation theory, as pointed out in our text, is that it relies on difficult forecasting towards the extent and duration of future
growth.
Effects of the Market
Overall all both of the above mentioned

Doing Business In Silicon Valley Case Study
Doing Business in Silicon Valley
PERSONAL COMPUTER BUSINESS MODEL REVIEW
Qudus Deen
In the past, computer manufacturers such as Compaq and IBM assembled computers based on what they had in their inventory. This necessitated
maintaining a stock room for three to four months of computer inventory in the distribution channel – spending millions of dollars in holding cost. As
computers component cost steadily decreased with significant technology changes, keeping inventory in stock over a long period became
non–beneficial. This led to delays in the delivery of new product line to consumers. [1] The products sold by retailers meant more overhead cost before
for the consumers. On the contrary, computer manufacturers such as Dell produce ... Show more content on Helpwriting.net ...
[2]
A strategy they like to call "Protect and Attack," making them the no. 1 market leader of PCs globally– with a market share of 20.6% as of 2016.
Compaq suffered much from Dell's new business model, leading to its acquisition by HP. Compaq relied much on reseller channels, so their criticism
caused Compaq to retreat from its proposed direct sales plan, although Capellas maintained that he would use the middlemen to offer value–added
services. [3]
Compaq struggled as a result of the collapse of the Dot–com bubble burst, which hurt sales of their high–end systems in 2001 and 2002, and they
managed only a small profit in a few quarters during these years. They also accumulated $1.7 billion in short–term debt around this time. [4] The stock
price of Compaq, which was around $25 when Capellas became CEO, was trading at half that by 2002 [5] A dominant business model for PCs five
years from now will be a SaaS Model. Where the consumers only pay's for the time spent using the product and not for the entire value of the PC
itself. This will allow consumers to change manufacturers, explore new product & technology, and not get tied to the lifespan of the PC itself. The
demand to set up new businesses without having to deal with the overhead cost upfront and the need to have the latest technology today will be the
trigger for this changes. 20 years from now the PC market sector would no longer exist – replaced by two major markets sector

Swot Analysis Of Retronics, A Software Engineering Firm Essay
Background Information History Retronics, a software engineering firm located in Silicon Valley, was founded in 1990s. Many internet
–based
companies were founded at that period since a new economic sector grew up and it attracted many investors. With the new economic sector and its
privileged geographic location, Retronics could easily attract a tremendous amount of capital funding and investments, as well as a long list of big
clients. Owing to the high interest rate, many people invested in the dot–com companies and their stock prices had risen sharply. The bubble burst
when it hit the peak. Millions of investors and companies suffered from the dot–com bubble. Retronics, one of the suffering companies, had to lay off
employees for survival in the extreme environment. In 2003, the board of director fired the founder of Retronics and hired George Latour, who was
experienced in enterprise–scale systems and operations as the new CEO. Development George had brought in new investments for the company after
his inauguration. After 16 months, the company's revenue did not reach a satisfying level and the market share started to decline as competitions
became more intense. George was very nervous and worried about the figures and he had no ideas of how to change the company's fortune. On the
other hand, Shelley Stern, the marketing director came into the company by the way of the chairman, Pete Dmitrijevich. George was asked by Pete to
train and coach her since she had great

The Rise Of Silicon Valley
Silicon Valley has always been a place of constant economic change. Huge booms and then sudden busts are not only common, but they're almost
predictable. It's becoming easier to observe and evaluate past crashes and use this knowledge to predict future busts in the valley. The huge jump in the
number of tech startups recently has been attracting an increasing amount of attention from investors who are looking for make it big. Due to this as
well as other factors, these companies are becoming overvalued, causing a tech bubble that will soon burst.
The economic history of Silicon Valley is far from smooth. The Valley has survived the outrageous fortunes of the military industrial complex in the
70s, the silicon wafer business in the 80s, and the personal computer in the 90s, which are all either dead, gone overseas, or now established and
boring. One of the more famous events, the dot–com boom in the late 1990s to 2000s, left many with a feeling of helplessness for the future of the
valley. The sudden growth of the internet resulted in venture capitalists seeing record–setting growth as dot–com companies experienced abnormal
rises in their stock prices and therefore moved faster and with less caution than usual, thus resulting in a tech bubble that burst, leaving investors
floundered.
One thing is for certain, if there is one thing that Silicon Valley is good at, it's recovering from hard times like these. It seems that no matter how hard
of a fall it might take, it's able

Amazon : A Online Commerce And Cloud Computing Company Essay
Amazon.com is a online commerce and cloud computing company in the service sector. Amazon was founded in July 5, 1994 in Seattle,
Washington by Jeff Bezos. Bezos left his employment as vice president of D.E Shaw and CO, a Wall Street firm. Bezos than moved to Seattle
where he began to work on a business plan for what would eventually become what we all know today as Amazon.com. Bezos wanted his
companies name to mean something so he scoured though many books looking for a name. He finally landed on the name Amazon by looking
through the dictionary. He settled on Amazon because it was a place that was exotic and different, just as he planned for his new store to be. Amazon
started as a online whole sale book store. Within the first two months of Amazon entering the book market they were making $20,000/week. Most of
their early success was due to them being able to ship to all 50 states and over 45 countries from their company 's first day.During the next few years
Amazon diversify their inventory to include CD 's, computer parts and many other items. Amazon issued its I.P.O ofstock on May 15, 1997. Amazon
was trading under the NASDAQ stock exchange as AMZN, at a price of US$18.00 per share ($1.50 after three stock splits in the late 1990s). When the
dot–com bubble burst in the early 2000 's it destroyed many e–companies in the process, Amazon survived and grew past the bubble burst to become a
huge player in online sales. Today Amazon is the worlds biggest online

Analysis Of Yahoo 's Business Model Looming
Like many other innovative companies, Yahoo has come to harsh reality that all businesses realize at some point. The market shapes the way we do
businesses and in order to be successful in businesses we must make adjustments as necessary to stay relevant. In the case with Yahoo, some
adjustments in their HR strategy are definitely warranted given the recent change in environment. Alignment of workforce with company goals
With a strategic change to Yahoo's business model looming, Sartain definitely needs to work on shifting the culture and workforce to match the new
direction in which Yahoo is going. Yahoo needs a new vision and approach in how they develop their employees. Manager Training and... Show more
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This is a terrible hiring strategy and I am not surprised that Yahoo had to later layoff 12 percent of their workforce. They clearly hired more than what
their company could support. It's really sad because it could have been prevented if each position being posted was more closely evaluated. The
position control process should include input and evaluation from finance and recruitment departments, and of course contain some form of
justification or business case as to why this position is needed by the requesting manager. Possible Road Blocks Ahead
Implementing a training and development program in a company could be quite a time consuming and costly task. It takes a great deal of planning and
implementation. It might also be challenging in getting staff to support it and get onboard with the program. This might be countered by involving
current management in the development of the training programs and giving them a say in the training classes offered since they should have a good
idea where their opportunities lay.
With my experience in hiring and position control, I can say that the benefit does outweigh the cons. I'm sure most managers will say it is much easier
to hire someone than to fire someone. However, a con of a position control process is the extra time it takes since it usually involves multiple approvers
and stringent evaluations.

CiscoвЂ™s Strategy in Recessionary Times
Strategic Management, BSHCE3 at the National College of Ireland| Cisco's Strategy in Recessionary times | A report on Cisco's strategic management
during recessionary times| 4/4/2013 | Table of Contents Executive Summary3 Introduction3 Literature Review3 Strategic Overview4 Acquisition
Timeline6 Competitors Acquisitions8 Hewlett Packard8 Juniper Networks8 Polycom8 Strategic Tools9 SWOT Analysis9 Porter's 5 Forces9 PEST
Market Analysis Tool9 Other9 Other tools include Management by Objectives (MBO)9 Strategic Tools on Cisco10 SWOT Analysis10 Strengths10
Weaknesses10 Opportunities10 Threats10 Porter's 5 Forces11 Threat of New Entrants: MEDIUM11 Bargaining Power of Suppliers: LOW11
... Show
It's also worth mentioning that Cisco's own website is very informative, with detailed financial and organizational structure. Strategic Overview From
the case study delivered during class (Indu, 2010) it is clear that Cisco's goal was to increase market share and maintain a sustained growth. Added to
this continued improvement to customer and supplier relations. The company's current mission statement states that; 'Cisco's mission is to shape the
future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners.' (Cisco.com)
With a strong customer focus at the core of their business, another strategy employed by Cisco is to position themselves close to not only the customer
but suppliers too. This closeness and strength of supplier relations allows Cisco to respond quickly to changing customer and in fact market demands
and trends. One of the strategic applications to enable growth and innovation was the use of acquisitions. From 1993 to present day Cisco has acquired
over 150 companies in a wide range of Information Technology and Networking sectors. This is facilitating gaining and maintaining competitive
advantage. However, proving the strength of the management and effective adaptation, Cisco has been able to change their strategy when required and
in 2000, after the dot com bubble burst, its highly successful strategy of procurement was abandoned and under the leadership of

Essay example
Two Sample SAT Essays–Up Close
Below is our sample essay question, which is designed to be as close as possible to an essay question that might appear on the SAT. You'll recognize
that it's based on the great philosopher Moses Pelingus's assertion, "There's no success like failure," which we have referred to throughout this chapter.
This particular essay topic presents you with a very broad idea and then asks you to explain your view and back it up with concrete examples. Not every
SATessay topic will take this form, but every SAT essay question will require you to take a position and defend it with examples.
Here's the sample prompt again:
Consider carefully the following quotation and the assignment below it. Then plan and write an ... Show more content on Helpwriting.net ...
Suddenly, Google's search results became far more accurate and reliable than those from other companies, and now Google's dominance in the field
of Internet search is almost absolute. (THREE DEVELOPMENT SENTENCES TO SUPPORT EXAMPLE 2) The example of Rod Johnson's success
as an entrepreneur in the recruiting field also shows how effective learning from mistakes and failure can be. (TOPIC SENTENCE FOR EXAMPLE 3)
Rather than accept his failure after being laid off, Johnson decided to study it. After a month of research, Johnson realized that his failure to find a
new job resulted primarily from the inefficiency of the local job placement agencies, not from his own deficiencies. A month later, Johnson created
Johnson Staffing to correct this weakness in the job placement sector. Today Johnson Staffing is the largest job placement agency in South Carolina,
and is in the process of expanding into a national corporation. (FOUR DEVELOPMENT SENTENCES TO SUPPORT EXAMPLE 3) Failure is
often seen as embarrassing, something to be denied and hidden. But as the examples of the U.S. Constitution , Google, and Rod Johnson prove, if an
individual, organization, or even a nation is strong enough to face and study its failure, then that failure can become a powerful teacher. (THESIS
STATEMENT REPHRASED IN BROADER WAY THAT PUSHES IT FURTHER) The examples of history and business demonstrate that failure can
be the best

Technology Industry Is Heading Toward A Bubble?
So, what are some of the signs of tech bubbles? Why are certain experts convinced the current technology industry is heading towards a bubble? There
are certain situations that could signal the industry is inside a bubble.
IPO market saturation
First, IPO market saturation tends to be higher during a tech bubble. As mentioned above, during the dot–com bubble, companies flogged to the stock
market at alarming rates. Worryingly perhaps, the level of IPOs is currently getting closer to the levels of the 2000.
The high IPOs don't benefit the owners or the employees of the company, but play in the hands of the initial investors. Employees and owners typically
have lock–in periods for reselling the stock. But in a bubble situation, the stock ... Show more content on Helpwriting.net ...
Marketing firm CB Insights has studies a number of technology companies and noticed the overvaluation issue. For example, the ride hailing app
Uber received a valuation of 100 times its sales from investors. AirBnB's $25 million valuation is over 90 times its sales.
Private companies aggressively searching for fresh capital
But IPOs aren't always the only sign of a tech bubble. In fact, the argument now is there are too many private companies being backed by private
money. For example, in 2015, the number of tech company IPOs remained low, while the number of private companies receiving over $1 billion
valuations doubled in the past 18 months.
The problem of increasing VC interest is that companies tend to take as much as they can. Since equity is easy to obtain in the current climate,
companies might end up aggressively pursuing it even when it isn't necessary.
Funds and investors moving out of the industry
There's also the element of investors and funds beginning to move out from the tech industry. In a way, this condition is the final sign of a tech bubble,
as it often highlights the end of the bubble.

Since the bubble cycle is run by speculation and hope of future fortunes, if companies don't start providing returns at some point, investors may
disappear. Certain investment firms are openly starting to warn about the bubble and even funds find it harder to simply throw money at technology
firms.
Inefficient business models
Finally,

Cisco Systems Managing the Go to Market Evolution
Cisco Systems
Managing The Go To Market Evolution
Cisco Systems
Managing The Go To Market Evolution
Analysis
Company background (Cisco Systems):
Cisco Systems is a world leading company in the switches and router market. Established in 1984 by a Stanford University couple, IT administrators
Len Bosack and Sandy Lerner. Ina short period after founding, it became one of the most successful companies in high technology industry. In Cisco,
manufacturing of its switches and router was outsourced, the company focused on core competencies: product design and development. Indirect sales
and distribution through resellers became the major sales channel in the end of 1990's; its "Value–Added Reseller" (VAR) was the most successful
indirect ... Show more content on Helpwriting.net ...
Cisco Systems accomplished its management functions by integrating its networked system with hiring practices– many of the company's skilled and
talented employees, most of whom have a high level of education required for the specialized field of networking, are garnered from the internet.
Cisco's primary issue faced in the case is how to sustain change after the so–called bursting of the tech bubble or the stock market bubble, and how to
revamp its route to market strategy. To expand its market in the face of dynamic competitors like IBM and Apple, Cisco faced a situation in which it
must expand market channels. Because of its' technology, Consumers are increasingly well informed, with the advent of internet technology which
allows them to gather a great deal of information before making the choice to "hire" one product/service or another, according to their needs. Successful
companies are increasingly turning to marketing to find niches spaces in the consumer consciousness in an effort to increase customer reaction by
treating them as individuals with specific sets of needs. Company websites may offer specialized services that cover a wide range of possible targets in
an effort to induce these more empowered customers to find value, displaying the loyalty that stems from satisfaction. The relationship between the
consumer and the business is no longer necessarily determined entirely by the politics and media in this

Essay on The Key to A Successful E-commerce Site
The Key to A Successful E–commerce Site
Despite the rapid growth of E–commerce sites, 43 percent of the them fails, and the difference between the success and the failure is consumer
experience, according to Ecommercetimes.com. The Dotcom Survival Guide reported there is still one resource left untapped that can save dotcoms
from failure. It's the one resource that historically is most ignored in favor of ads, press, and flashy features yet it's the one resource that can lead
dotcoms to survival. That resource is customers. Customers can provide the revenues needed to attain profitability. Customers can give the
word–of–mouth marketing to drive traffic. Customers can give the feedback needed to continually improve the website. ... Show more content on
Helpwriting.net ...
It's important to remember that the customer experience is a strategic issue, and not just an accumulation of tactics. In fact, it's the most strategic issue
an e–business can work on. A dot–com's strategy should be directly based on the customer experience.
Improving the customer experience can lead directly to higher revenues. On an e–commerce site, building a great customer experience makes it quicker
and easier for customers to buy, raising the conversion rate. On high–volume e–commerce sites, raising the conversion rate by one tenth of 1% can add
as much as $10 million in incremental revenues per month. The customer experience is the key to dot–com survival. To survive, dot–coms must
improve their customer experience.
HOW TO CREATE A GOOD CONSUMER EXPERIENCE?
More and more users with minimal technical expertise are getting online, and they are demanding simple, fast, easy–to–use e–commerce sites. The Web
makes switching (to a competitor) fast, cheap, and as easy as typing in a new URL.
To better understand the value of a good customer experience, creativegood.com has provide the 3–M's framework.
В· Medium. The Web is a constrained medium: screens are small, modems are slow, and users are technically inexperienced. Despite all the hype about
futuristic potential online, the true way to succeeding online is to create good customer experiences that work within the constraints of the Web.
В· Marketing. The Web

Cisco Systems
| Case Analysis – CISCO Systems| | | | | | 1. How have Cisco's channels evolved in the last 10 – 15 years? Why have they evolved that way? What does
the future look like? Cisco is the leader in the switches and router market. Cisco was described as a classic start–up fairy tale. Indirect sales and
distribution through resellers was responsible for the small percentage of products delivered in the early 1990s. Cisco model was praised as a
successful indirect sales and channel strategy. In 1995, Chambers (CEO) took the helm and the company played a leading role in the internet
revolution. Market capitalization exceeded $500 billion in 2000. Cisco's sales had crossed $18 billion and it boasted relationship with... Show more
Through voice VARs? Data VARs? or both? I would recommend the distribution of VoIP products through both voice and data VARs. Even though
voice channel was considerably more consolidated than the data channel however it is agreed that voice needed to be added to the mix of already
existing data VARs. In the data market, margins for the resellers where in the region 12%to 20% due to the channel competition. On one hand, it
makes sense to stay with existing margin structure because the new technology delivered huge cost advantage for the end user. But the Voice VARs
were entrenched with PBX firms and it would cannibalize introducing new product line. The maturing nature of the networking market and
opportunity provided Cisco to expand their business and needed to the keep the productivity with the existing data VARs. 4. What are your
reactions to the Pyramid model advanced in Fig.C of the case? What is the core concept of the model? Is there an alternative evolutional model that
Cisco should adop? It was a completely different strategy adopted by Cisco when healthy profit margins on routers and switches were the norm in
1990s. This offered value addition to the resellers and sales volume was the key which showed Cisco's intention to improve the market share. "Gold",
"Silver" or "Premier" status was awarded to the certified resellers who would in–turn get

The Old Constant : Human Psychology
The Old Constant: Human Psychology
According to the Efficient Market Hypothesis, competition will instantaneously cause the effects of new information to be reflected in actual share
prices. This assumption presupposes that the participants in a market act rationally. The concept of the homo economicus has a long–standing history
in economics and is a relevant premise of efficient markets. According to the founder of economic thought, Adam Smith, the homo economicus is
human who constantly peruses self–interest while always acting rational to reach his subjectively defined ends (Coase, 1994). At times, psychologists
joined this discussion and challenged the concept of the economic man. Among the most prominent researchers who question the rationality in human
decision making is Daniel Kahneman. Kahneman challenged the rationality in decision making processes and is one of the founders of behavioral
economics. Behavioral economists argue that markets are not perfectly efficient because various cognitive biases in humans (HBR, 2015). Among the
most prominent cognitive biases that influence stock prices are the Overconfidence Hypothesis and the Disposition Effect. The Overconfidence
Hypothesis describes the tendency of individual investors to trade excessively based on a mistaken belief that they can pick winners and losers better
than investment professionals. Overconfidence is characterized by three main tendencies. First, overconfident investors tend to overreact to

Electronic Commerce Essay
Analyze the role of EC in the modern business and social environments. Identify three international barriers to EC and evaluate their roles in the
success of EC. This assignment tests your analytical and critical thinking skills and your ability to synthesize concepts around topics. The paper should
be in APA format, 2–3 pages (not including reference page), with at least two references. With the introduction of internet, Ecommerce has taken its
supreme position in Today's industry. Ecommerce essentially means trading products and services by using computer through internet. It has three
important factors– Technology, Law Policy and finally Business Ecommerce was introduced in 1970s and, from then, its use has been exponential...
Role of E–commerce in the Social environments: 1. The major role of social media in E–Commerce is to promote brand awareness. 2. Social media
helps passively showing that the brand interacts with their customers and is easily reachable. 3. Social media has cemented itself in today's society
and changed the way many of us communicate. Not only has it affected the way we interact at an individual level, but it has also started to impact the
way companies do business. E–commerce reduces delivery time and labor cost thus it has been possible to save the time of both – the vendor and the
consumer. Economic Effects of Ecommerce: 1. Reduction in transaction costs in Ecommerce compared to traditional commerce as Ecommerce
removes the traditional geographical and time barriers. 2. Ecommerce is of tremendous advantage to a layman, who does not understand the product–
which is new into the market– Ecommerce helps him make a decision by comparing the prices online and allows this comfort at his home rather than
driving to different locations and accessing the similar product at different stores. 3. Additionally another main advantage has been shipping of the
product to home which saves costs of transportation and time for the buyer. Business Effects of Ecommerce: 1. Various retail stores of a particular
product are now connected online and they would have a better idea of the costs incurred to get the product from the

The Rise and Fall of the Dot.Com Bubble Essay
What was to ultimately turned out to be known as В‘The Internet' was developed in the 1960s through funding by the US military so as to discover
a means of making possible communication in the event of nuclear conflict . Until the beginning of 1990s, though, the Internet was the sphere of
influence of academics as well as researchers as commercial use was proscribed. A process of commercialization began in the late 1980s and the
wider use this encouraged was to be given an additional heightening with the emergence of the World Wide Web in the beginning of 1990s. The
progress of browsers in the early 1990s which facilitated web pages to be viewed in a graphical format in color after that brought the benefits of the
Internet to a wider... Show more content on Helpwriting.net ...
Once shareholders became drawn to stocks because everyone else was buying, realistic valuations of stocks based on their earnings potential got
crowded out by what Greenspan characterized in 1996 as В‘irrational exuberance'. This kind of bull market is typically fuelled by cheap money and
lots of debt. The low interest policy pursued by the Fed in the wake of the Asian crisis in 1997В–99 induced many investors to take out broker loans
for additional stock purchases. With shares serving as collateral for those loans, rising stock prices enhanced the borrowing capacity of investors and
so became a funding machine for the bull market. In addition, many firms took out a lot of debt to buy back their shares and so counter the dilution of
stock ownership brought about by the extensive use of stock options as a new form of employee compensation. It is this interaction between debt and
asset inflation which turns a reasonably bullish stock market into a speculative bubble.
Such a bubble is, however, unsustainable. It will burst when the rosy expectations about future profits underlying those sky–high stock–market
valuations turn out to have been unrealistic. As market sentiments shift and disappointed investors try to cash in their capital gains, selling waves ensue
to push stock prices rapidly lower. Pressured by high levels of indebtedness in the face of declining asset values and mounting capital losses, investors
rush to liquidate their

Dotcom Research Paper
The Dotcom Bubble During the 1990s, as the Internet became available to the public and usage of it was on the rise, new start–up companies
(start–ups) within the technology industry emerged. The Internet and technological advancements at the time enabled these companies to rapidly
spread the word about their business; people were excited. The revolutionizing start–ups, known as "Dotcom companies," (Dotcoms) embraced the
Internet as key components of their business ("Dotcom") and experienced spectacular initial public offerings (IPOs) and rapid increases in stock
prices. This eventually led to a bubble; a bubble that burst in the early 2000s. Economics scholars Stephen G. Cecchetti and Kermit L. Schoenholtz
explain that the Nasdaq Composite Index (Nasdaq), a stock–market index that is "composed of numerous small start–ups as well as large information
technology (IT) firms, doubled in value from September 1999 to March 2000, then fell by 70 percent over the next year" (209). Along with the
bursting bubble came financial distress that spread across the entire economy. Because Dotcoms were prominent in the bubble, the bubble has later
been called "the Dotcom Bubble." To fully understand the Dotcom Bubble, however, one must understand how bubbles are created,... Show more
Technology–savvy (tech–savvy) people realized the potential benefits associated with the Internet and other high–tech innovations, as well as the
paradigm shift they represented. A paradigm shift "is a major shift in how some process is accomplished. . . [as] when new technology is introduced"
("Paradigm Shift"). The Internet allowed for new ways of engaging in commerce, as well as new and improved means of communication. The Internet
created a paradigm shift that was then the predominant reason for a shift in investor

Cisco Systems
Analysis
Company background (Cisco Systems):
Cisco Systems is a world leading company in the switches and router market. Established in 1984 by a Stanford University couple, IT administrators
Len Bosack and Sandy Lerner. Ina short period after founding, it became one of the most successful companies in high technology industry. In Cisco,
manufacturing of its switches and router was outsourced, the company focused on core competencies: product design and development. Indirect sales
and distribution through resellers became the major sales channel in the end of 1990's; its "Value–Added Reseller" (VAR) was the most successful
indirect sales channel strategy at that time. In later 1990s, Cisco had ever been the world's most valuable company, ... Show more content on
Helpwriting.net ...
Because of its' technology, Consumers are increasingly well informed, with the advent of internet technology which allows them to gather a great deal
of information before making the choice to "hire" one product/service or another, according to their needs. Successful companies are increasingly
turning to marketing to find niches spaces in the consumer consciousness in an effort to increase customer reaction by treating them as individuals
with specific sets of needs. Company websites may offer specialized services that cover a wide range of possible targets in an effort to induce these
more empowered customers to find value, displaying the loyalty that stems from satisfaction. The relationship between the consumer and the business
is no longer necessarily determined entirely by the politics and media in this new age of marketing and the internet, which could afford to offer a sort
of "one size fits all" package prior to macro–environmental reform initiatives that made the market more competitive and therefore individualized
towards people's needs. Successful and forward–thinking companies in the digital age must now concentrate on building profitable relationships with
their customers, just as in any business.
Markets and Competitors:
As I mentioned before, Cisco was mainly competing in three big markets.
Firstly, Corporate networking gear market, including both enterprise accounts and small– and

Solving the Foreclosure Crisis Essay example
I notice that a lot of American politics is about ending major crisis at home and worldwide. Unfortunately the politicians seem to go off course or side
tracked on their particular platform or their states agenda. A major dilemma that needs to be addressed in American politics is the current foreclosure
rate in the housing market. The issue needs to be addressed because our entire financial stability seems to be balanced on the housing market. When the
housing market crashed subsequently the stock market crashed soon after it. As a result of both the real–estate and the stock market crash the banks
opted out to tighten up their belts by increasing the criteria to apply for credit and loans. For most Americans who have or had middle class ... Show
The definition from Wikipedia states "a housing bubble is characterized by rapid increases in the valuations of real property such as housing until
unsustainable levels are reached relative to incomes, price–to–rent ratios, and other economic indicators of affordability."
The market correction also affects major markets including (but not limited to) the retail markets. For the last five years the sales projection for all
areas of the retail market has drastically declined and still no one has been able to make their quotas despite the numerous stimulus attempts from the
government. The housing market correction further the pain on the working class American because the retail companies has started to pressure their
employees to make impossible sales to keep the companies afloat. These employees are the same working class Americans who experiencing the
money crunch and are barely able to pay their bills and/or invoices of past due on their homes. Unfortunately after months of not meeting sales
projections retail companies had to scale back their losses by either making salary cuts or reducing the number of employees. As of the most recent
news report I have seen the United States unemployment rate has increased to 10.0 percent.
Also the market correction has affected the quality of life for all Americans. I seen a recent study that says depression is on the rise amongst all

Walmart As A Crusade For The Consumer
Walmart was founded by Same Walton in 1945. Mr. Walton was, a businessman and former J. C. Penny employee. He purchased a branch of the Ben
Franklin Stores form the the Butler Brothers. Mr. Walton primary focus was on selling products at low prices to get higher–volume sales at a lower
profit margin. He portraying it as a crusade for the consumer. He had some setbacks, because the lease price and branch purchase were unusually high,
but he was able to find lower–cost suppliers than those used by other stores. He passed on the savings in the product pricing. He was able to
increased sales 45 percent in his first year of ownership to $105,000 in revenue, which increased to $140,000 the next year and $175,000 the year
after that. By fifth year, his store was generating $250,000 in revenue. When the store lease expired and unable to reach an agreement for renewal,
he opened a new store at 105 N. Main Street in Bentonville, Arkansas naming it "Walton 's Five and Dime." That store is now the Walmart
Museum. In Rogers, Arkansas on July 2, 1962, he opened the first Walmart Discount City store at 719 W. Walnut Street. The company 's "Store #1"
was converted and relocated to a Supercenter concept is located several blocks west at 2110 W. Walnut Street as of 2015. Within its first five years,
the company expanded to 24 stores across Arkansas and reached $12.6 million in sales. Starting in 1968, the first stores built outside of Arkansas was
in Sikeston, Missouri and

The And On Startup Valuations
A "How To" on Startup Valuations
Valuations are often referred to as an art, rather than a science. An outsider to the field would assume that there was one precise way to set the value
for a growing company, but in the end it comes to preference. Each company is different with assets that are unique and not easily compared to others.
At a baseline level, a valuation matters because it "determines the share of the company [entrepreneurs] have to give away to an investor in exchange
for money" (Vital 2013). With billions of dollars on the line in a valuation, different methods are employed to determine accurate valuations. Proposed
methods can vary based on company type, stage of funding, and many other characteristics. Bill Payne, long time angel investor, offers four popular
methods as a starting point for startup valuation. These span from the Venture CapitalMethod in which valuations get their basis from potential return
rates from exit events, the Berkus Method in which monetary standards are set against the progress a startup has made in commercialization, to the
Scorecard Valuation Process in which the company is compared in a certain region and vertical range based on a set of characteristics, finally the Risk
Factor Summation Method in which characteristics are again inspected in terms of what is expected in the future (Hudson 2015) .
While in the process of determining companies to fund, Venture Capital firms examine some of these same characteristics on

Aol Time Warner- What Went Wrong
In January 2000, AOL announced that it would be acquiring Time Warner through a complete stock deal to create the largest media company in the
world. Not only was the merger the biggest ever in the media industry, it was also one of the biggest in the history of the corporate world. As per the
merger agreement, AOL andTime Warnerstock was converted to AOL Time Warner stock. AOL shareholders received one share of AOL Time
Warner for each AOL share owned and Time Warner shareholders received 1.5 shares of AOL Time Warner for each Time Warner share they owned.
While AOL shareholders owned 55% of the new company, the remaining was held by Time Warner. The merger was soon being talked of as the
beginning of a new trend: the coming together ... Show more content on Helpwriting.net ...
AOL joined hands with Time Warner to create synergy between its online businesses and Warner 's media business.
Two significant factors affected the post merger company. One, the dot–com burst meant adverse effect on AOL's advertising revenues. And two,
dial–up subscribers decreased thereby affecting revenues and overall profitability of AOL. A key element in the turnaround strategy should be to offer
free content on its portal. This strategy will benefit AOL in attracting more online users and advertising revenues.
When AOL began operations it soon became the leading company for–pay online subscriber service, bringing easy–to–use Internet service to more than
30 million users. AOL was mainly based on around its dial up business. With customers shifting to broadband, AOL was losing subscribers rapidly. The
dial–up segment though profitable, was declining in revenues having lost 2.6 million subscribers in a period of one year. The share price of AOL
Time Warner fell by 60% after the merger. The merger was heavily criticized from all quarters.
Growth in advertising business came with AOL establishing itself as a support service rather than an internet access provider. Seeing AOL's success
Google entered into a global advertising partnership with the AOL. Google acquired a 5% equity stake in AOL for US$ 1 billion. In broadband, to be
able to beat the competition they should be the first organization to

Adams Capital Management Case Study Essay
Case Study: Adams Capital Management 1. Adams espouses a "market first" analysis of opportunity by looking for discontinuities. Is this substantive
or window–dressing? Do the four types of discontinuities represent applicable guidelines? Are they comprehensive, or are there other discontinuity
templates that a venture investor would find useful? 2. Analyze Structured Navigation. Is this a valid measurement of progress in early stage
investing? Could such a program ever be a hindrance to company development? 3. How does the ACM approach affect the recruiting, training, and
management of ACM partners? 4. How should LPs of ACM view the ACM approach to technology start–ups (i.e.: Discontinuities and Structured...
2. Structured navigation is essentially a five process checklist system for managing investments. ACM does this by deeply involving themselves in
their portfolio companies Aspects of the structured navigation include: * Establish a talented management team * Obtain a corporate partner or
endorsement * Gain early exposure o industry and investment banking analysts * Expand the product line * Implement best practice The partners
felt this was a valid measurement of progress in early stage investing since early stage technology companies shared many of the same benchmarks
and needed many of the same elements to succeed. I believe the program wouldn't be a hindrance to company development due to its flexibility in
the sense that there is no specific order in which they need to be "finished" and that the processes are positively correlated, overall increasing the
probability of success of the company. 3. The ACM approach differs from conventional venture firms in the sense that instead of venture capitalists,
partners, being key deal makers , each partner would be recruited, trained and managed the same way most business were; where employees , in
principal, replaceable. 4. LP's of ACM would probably have a strong positive view on the ACM approach. ACM portrays a specialised expertise in
technology start ups with its discontinuities based investing and due diligence in management through its structured

History/142
The Intern yep April 9, 2012 yep The Internet The internet has changed the world as we knew it. The world no longer communicates, does business, or
perches commodities in the same a traditional way. E–mail, instant massager and chat rooms were the first innovations to be used by the public. As
time went on more and more people depended on the internet to communicate with each other. It did not take long for the U.S. Postal service to see
the decline in mailed letters. With the internet being so easy to access and email being so easy to use it quickly became the preferred way to
communicate with family and friends over long distances. Companies soon followed suit to better serve their clients. Over time the internet began to
take... Show more content on Helpwriting.net ...
Take President Obama's campaign for example. President Obama put out campaign messages on You Tube that millions of people saw. This created a
buzz on the internet helping him to win the election. The internet has been the rise and fall of many entrepreneurs. For example, the rise and fall of the
DOT–com. The DOT–com in a business whose main sail and advertisements are on the internet. DOT–coms are businesses like Yahoo.com and
Ebay.com. In the early 1980's the commercialization of the internet started. This allowed and promoted the DOT–com bubble. The reason so many
thought that the DOT–com was a superior way of doing business is because the startup was lower, the rent space was less and you could do business
easily with in America and worldwide. There were many other advantages that appealed to startup companies to help finance the DOT–com
phenomenon. With the market full of DOT–coms it was only a matter of time before the supply outweighed demand and many of them did not have a
positive cash flow to support themselves. The DOT–coms could only stay in business as long as the investors supported them. With no profit in sight
the investors pulled out and the stock market dropped. With this drop a panic in sued and investors and stockholders jumped ship causing the bubble to
burst. Only the strongest

Review Of Alice Marwick 's Status Update Essay
Book Review 2 – Status Update
Status Updates author Alice Marwick is an experienced academic observer of American online culture who subjectively weighs in on the new era of
media and where this social media phenomenon is in this country let alone the world. This book takes you on a personal journey sheading light on old
and new ideas such as, dot com era, Web 2.0, self– branding, Neoliberal capitalism, the up rise of micro celebrities, and online personas. Although
precisely written and full of extensive qualitative research, this book is mostly over opinionated and anecdotal. A good amount of what Marwick is
preaching isn't necessarily true and full of negative rhetoric towards men such as Gary Vaynerchuk, a self–branding guru who she actually dedicates a
part of her book too along with others. Most of the book is full of her first hand experiences in northern California tech start up hotbed areas where
most of her work was done by good journalism.
The dot com era took off around 1997 and peaked in 2002, this idea like the name suggests was based off of large investments in internet tech
companies whether they were profitable or not. Looking back, it's easy too say that there was a lack of common sense or a lack of urgency to make
money since it failed. Directly after Web 2.0 made its presents, and it wasn't new software for computers or a site you can visit rather a time for
social technology to improve. It was like an optimistic perception of a class being half full

Major Events From 1980 : 2005 Cause An Economic Bubble
Introduction The research question in this essay is "To what extent have major events from 1980 – 2005 cause an economic bubble, in turn either
appreciating or depreciating the American stock Market?"
There are countless number of factors that cause a stock market as a whole to crash, but three main reasons. There have been numerous financial
"crashes" throughout history that date back to the 1600's when stock exchanges were first evolving with the trade economies of Europe. A crash
represents a steep, sudden decline in the value of market prices, and can often lead to and economic depression. There are 3 main types of crashes that
occur frequently in today's market, Investment bubbles, Spooks, and HTF. An economic boom on the other hand quickly helps appreciate stock prices,
as the companies' market capitalization and earnings will go up. The most devastating crashes are usually a result of an overly–inflated market, also
known as a "bubble." Investment bubble occur when prices of market shares are driven upwards past there actual value. A bubble is encouraged by a
"herd mentality," where people first jump on a bandwagon of a profitable stock, and then, when the bubble bursts, they engage in panic selling. The
most famous example of this was during the 1929 American stock market crash, following the WW1. Also Stock markets can also be "Spooked" into
a decline or a catastrophic event. For example, San Francisco's massive earthquake in 1906, played an integral role in the

Introduction : What Makes A Startup?
Introduction: What makes a startup?
Startup companies have gained enormous attention in recent years. The term startup became more commonplace during the dot–com boom where
technology businesses were founded at an unprecedented rate. It took one of the most recognizable companies in the world, Facebook, only eight years
to go from one million to one billion users. That virtually exponential growth allowed Facebook to truly transition from a startup to an established
company.
With billion dollar companies like Apple, Walmart, AT&T and many more, why worry about volatile startup companies? Well, virtually every company
begins as a startup (exception for de–mergers). Ergo, it is imperative that startup companies are studied and analyzed to ... Show more content on
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To systematically develop successful startup companies, the method of accelerator programs has gained substantial attention. Accelerators focus on
very–early–stage companies with the hopes with the right guidance and resources, they will become the next Apple, Microsoft, etc. The first
accelerator program, Y Combinator, launched in 2005 in the sunny state of California. In a report released in 2015, there are now an estimated 3,000+
programs around the world. Accelerator programs typically offer a short–term, systematic process to jumpstart a company. While accelerator programs
may sound comparable to business school, there are key differences. Accelerators typically last between 3–4 months and are much more selective than
any business school. Y Combinator accepted less than 3 percent of applicants in 2014. (Ballew, 2014) While business schools have an end goal of
education, accelerators have a primary goal of launching a viable business. The cohort–based programs focus heavily on mentorship and hands–on
business validation. The culmination of the work performed during the accelerator is pitched at the end of the program with the hopes of gaining
financial backing. The majority of accelerator programs are led by one of the following entities: businesses, educational institutions, and/or the
government. Business incubators generally take equity once the startup makes profit. Considering the recent attention accelerator programs

The Market Theory, Meaning, And Market
DFA has had a very consistent strategy since its inception in 1987. They use academic research as the backbone of their decisions. At the heart of their
strategy is the efficient market theory, meaning that in liquid markets, prices reflect all available information. This is contrary to most mutual funds
that attempt to continually beat the market. Instead DFA looks to academic research to invest in asset classes that historically produced higher
expected returns and structure their holdings around those classes. This enables them to stay passive but add alpha over index funds. Other sources of
alpha are contributed by block trading and buying in bulk at a discounted price, and finally by constructing products for niche tax advantages.
Ultimately DFA is not looking to profit by exposing arbitrage in the market but instead building strategies under the assumption of fair pricing allowing
them to focus their attention on investments that compensate investors for taking. Under these assumptions, the market risks come at a premium
which may allow for higher expected returns. They put a strong weight on academic research and results from practicing investors that show robust
long term strategies. The research behind their beliefs show that small companies have higher expected returns than large companies, high B/M "value"
companies have higher expected returns than low B/M "growth" companies, and finally companies with high profitability have higher expected returns
than

Hidden Flaws in Strategy
Hidden flaws in strategy Charles Roxburgh The McKinsey Quarterly, 2003 Number 2 After nearly 40 years, the theory of business strategy is well
developed and widely disseminated. Pioneering work by academics such as Michael E. Porter and Henry Mintzberg has established a rich literature on
good strategy. Most senior executives have been trained in its principles, and large corporations have their own skilled strategy departments. Yet the
business world remains littered with examples of bad strategies. Why? What makes chief executives back them when so much know–how is available?
Flawed analysis, excessive ambition, greed, and other corporate vices are possible causes, but this article doesn't attempt to explore all of them. Rather,
it looks... Show more content on Helpwriting.net ...
Participants are asked to offer not a precise figure but rather a range in which they feel 90 percent confidenceВ—for example, the Nile is between
2,000 and 10,000 miles long. Time and again, participants walk into the same trap: rather than playing safe with a wide range, they give a narrow
one and miss the right answer. (I scored 0 out of 15 on such a test, which was one of the triggers of my interest in this field!) Most of us are
unwilling and, in fact, unable to reveal our ignorance by specifying a very wide range. Unlike John Maynard Keynes, most of us prefer being
precisely wrong rather than vaguely right. We also tend to be overconfident of our own abilities.5 This is a particular problem for strategies based on
assessments of core capabilities. Almost all financial institutions, for instance, believe their brands to be of "above–average" value. Related to
overconfidence is the problem of overoptimism. Other than professional pessimists such as financial regulators, we all tend to be optimistic, and our
forecasts tend toward the rosier end of the spectrum. The twin problems of overconfidence and overoptimism can have dangerous consequences when
it comes to developing strategies, as most of them are based on estimates of what may happenВ—too often on unrealistically precise and overoptimistic
estimates of uncertainties. One leading investment bank sensibly tested its strategy against a pessimistic scenarioВ—the market conditions of 1994,
when a downturn lasted

Amazon: Online Shopping and Amazon.com
BINS 7250–01
Strategic Management of Information Systems and Technology
Fall 2014
CASE ANALYSIS INSTRUCTIONS– AMAZON.COM: BRINK OF BANKRUPTCY
(Points: 100)
Due: Sunday, September 17, 2014 before 6:00 p.m.
Write a 1–page, single–space, 10–point font case analysis on the Amazon Case making sure to address the following questions:
1. On a scale of "1" (Very Poor) to "5" (Excellent), how would you rate Jeff Bezos as an entrepreneur? How would you rate him as an IT manager?
2. Trace the evolution of the Amazon.com business from the company's launch in 1995 to the dot–com collapse in 2000. How did the company's
strategy change over time? How did capabilities evolve? What value did the company deliver to all stakeholders? 3. Do you ... Show more content on
Helpwriting.net ...
The company also created a barrier to entry by being the first large online bookseller.
Since its incorporation in 1994, Amazon's business model had expanded from offering a simple internet marketplace for books to providing web
services to online retailers, storage solutions and a dramatically expanded product line. Nevertheless, despite massive sales the company failed to
produce a profit for shareholders and Amazon was on the brink of bankruptcy at the beginning of 2001. If I were a shareholder who received the
company's 2000 annual report, I would have strongly agreed with CEO Jeff Bezos that the company must achieve profitability by year–end 2001. I
would recommend that the company accomplish this by cutting costs related to fulfillment and inventory and by increasing revenue by capitalizing on
the previous year's investments in infrastructure.
While many expenditures in 2000 were related to Amazon's efforts to implement its strategy for growth, operating costs had also increased. Amazon's
fulfillment costs were 11 11% of sales in 1997 and 1998, increased to 14

14% in 1999. Because e–Commerce was still new and just beginning to establish customer trust, it's critical that these costs be reduced without
negatively impacting quality, speed of delivery or customer service. Because of Amazon's large scale and repeatable processes, I would recommend a
continuous improvement strategy such

The Massive Financial Loss Due to the Dot-Com Bubble Crash...
In the beginning, the Internet was created by the military in 1958 for their own personal purposes. They had no idea how many people would be
interested in the Internet, nor how much the Internet could grow into what it is today. The Internet as we know it today did not come about until 1995.
Now, it is said that approximately one third of the world's population uses the Internet, and it is still growing. The dot–com bubble spanned from 1995
to 2000 and involved the entire world. The Internet caused an unprecedented growth and speed in business because of how accessible it was to
everyone. Many people wanted to become involved because they saw how fast it was growing. One company that made it possible for so many
participants to invest was... Show more content on Helpwriting.net ...
The collapse has been recorded as the single greatest loss in the history of the Internet stock market, with a groundbreaking two–thirds deficit.
Surprisingly, the cause of the crash was because of the companies themselves. Companies began to report major losses in revenue because of the
"Get Big Fast" mentality. This caused doubt to set in, and people quickly stopped investing. Market value dropped by five trillion dollars, and most
companies had to close shop. Andrew Beattie stated that from March 11th, 2000 to October 9th, 2002 the NASDAQ loss compiled to a whopping
78% of value. Soon after the initial fall of NASDAQ came September 11th. People had already lost a lot of their faith in the industry, and the
national crisis of 9/11 only added to the crash. People were focused on the catastrophe of 9/11, and it proved to be the last nail in the coffin for the
stock market. People were no longer investing.
"Many argue that the dotcom boom and bust was a case of too much too fast. Companies that couldn't decide on their corporate creed were given
millions of dollars and told to grow to Microsoft size by tomorrow" – Andrew Beattie.
Aspects of growth–
While many were angry about the dot–com bust, others were grateful. While the crash left many people out of jobs and in debt, the boom proved to
be overall helpful. Because of the speed at which technology was progressing it can be argued that the loss was worth the gains.

Growth strategy is the main means through which any...
Growth strategy is the main means through which any organization plans to achieve its set objective to grow in level of income and capacity of its
sales. The main strategies include the development of their product, diversifying, the development of market and its penetration. Amazon.com, an
online retail company that provides a variety of unique products and services to its customers at cheap prices via the internet, for the past five years
have tripled its sales to more than $60 billion a year. The company's willingness to take a large hit on its margins has contributed significantly to its
35% to 40% revenue growth in past quarters. To increase the company's income and sales, it has utilized a number of strategies (Form 10–K, 2014).
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It has also expanded into offering dim storage for consumers and businesses. This remarkably increased its annual sales (Amazon 2013).
Amazon has transformed its business from direct sales to a sales–and–service model by opening up its storefront to other retailers that were essentially
competitors. This has aggregated many sellers under one virtual roof and has received commissions from the other companies' sales. In 2009, 2010,
and 2011 revenue grew by 27.9%, 39.6% and 40.6% respectively (Amazon 2012). This is proof that the strategies been brought about are of benefit
towards increasing the revenue of the company.
Amazon.com has a market capitalization of $139.81 billion. It has revenue of $19.74B, net income of $108.0M, Total assets of the value $36.36B,
Total liabilities of $26.04B in value and $3.15B total debts. The company has an enterprise value of $134.29B. Amazon has carried out a number of
acquisitions invested in a number of areas in effort to expand its sales. The financial value of the acquisitions and investments made by Amazon.com
are as follows:
The company paid $1.23 billion which were of Zappos, footwear that leads as an online purveyor. The second largest deal of the company is
represented by Kiva.
Amazon invested in the European online film the rental operation, the International Lovefilm Ltd., during the 2008. More shareholders assets were
bought in early 2011 a deal that valued the company at $320 million.

Dot-Com Crash Of 2000

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