Michael Petromilli, Dan Morrison and Michael Million
Corporations must routinely ask “how should we allocate existing financial and human resources among our brands to grow shareholder value?” Firms should focus on getting the most…
Abstract
Corporations must routinely ask “how should we allocate existing financial and human resources among our brands to grow shareholder value?” Firms should focus on getting the most from existing brands through better organizing and managing brands and brand inter‐relationships within the existing portfolio. “Brand architecture” is the way a company organizes, manages, and markets their brands. It must align with and support business goals and strategies. Different business strategies require different brand architectures. The two most common types are: “Branded house” architecture – employs a single (master) brand to span a series of offerings that may operate with descriptive sub‐brand names and “House of brands” architecture – each brand is stand‐alone; the sum of performance of the independent brands is greater than they would be if under a master brand. Neither type is better than the other. Some companies use a mix of both. The key is to have a well‐defined brand architecture strategy. Steps to maximize brand architecture: take stock of your brand portfolio from the perspective of customers because their view is the foundation for your strategy; do “brand relationship mapping” to identify the relationships and opportunities between brands across your portfolio. Check for these criteria: the perceived or potential credibility of the brands in that space – the perceptual license; whether or not the company currently has or can develop competencies in that space – the organizational capabilities; and whether the size and current or potential growth of the market is significant enough to merit exploitation and investment – the market opportunity. Mine the opportunities where all three criteria are met (aka, the “sweet spot”). Or use these innovative strategies if all criteria do not intersect: “pooling” and “trading,” branded partnerships’, strategic brand consolidation, brand acquisition, new brand creation. Continuously emphasize the portfolio‐wide thinking and business‐wide implications of brand‐oriented decisions. Create a brand council. When managed strategically and used as a structure to anticipate future business and brand needs, concerns, and issues, brand architecture can be the critical link to business strategy and the means to optimize growth and brand value.
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In his review of 30 years of research in Prospect Theory, Barberis (2013) notes that support for Prospect Theory had come mainly from the laboratory. In this paper, I write about…
Abstract
In his review of 30 years of research in Prospect Theory, Barberis (2013) notes that support for Prospect Theory had come mainly from the laboratory. In this paper, I write about a recurring phenomenon in real life that is consistent with Prospect Theory predictions in decision-making loss domain. The 60 cases noted in this paper are associated with specific risk seekers that had cost more than $140 billion (an average of $2.33 billion per case). Given space consider– ations, I provide synopses for 14 cases. A few of these cases have been discussed in the extant literature in connection with internal control, but were not considered from the perspective of Prospect Theory. It is striking that these cases are costly, all participants are young men, and almost all had followed the gambler’s martingale strategy – i.e., double down. While these cases are informative about risk-seeking behavior, they are not sufficiently systematic to be subjected to stylized archival research methods.
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Business travel is key custom to many hotels. Value springs both from volume and relatively low rates of discounting and commission, but what type of strategies will make for…
Abstract
Business travel is key custom to many hotels. Value springs both from volume and relatively low rates of discounting and commission, but what type of strategies will make for success in the future? Three main themes emerge from a review of reported trends in provision: development of special brands, enhancement of special on‐site services and use of promotions.
The purpose of this paper is to offer case studies of hedge fund fraud, solutions that could mitigate hedge fund fraud risk, and a proposal for the industry to establish a hedge…
Abstract
Purpose
The purpose of this paper is to offer case studies of hedge fund fraud, solutions that could mitigate hedge fund fraud risk, and a proposal for the industry to establish a hedge fund information depository (HFID) where participants/stakeholders could provide information on any hedge fund on regular basis.
Design/methodology/approach
Four major hedge fund fraud cases, Bayou Funds, Lipper Holdings, Manhattan Investment Fund and Maricopa Investment Corporation are used as examples of the complete absence of independent oversight and the application of HFID.
Findings
The paper finds that investors in the four funds lost more than $1.3 billion. In all four fraud cases, independent oversight and compliance function were conspicuously missing. In each fraud case there was at least one serious alert (warning) that took place at least 14 months prior to SEC first filing against the fund.
Research limitations/implications
Some hedge fund industry stakeholders may reluctantly join HFID due to concern over possibly disclosing information deemed crucial for their own competitive advantage.
Practical implications
Had third parties become aware of the alerts, they could have made a different investment or business decision. Most importantly, this depository would allow all hedge fund industry stakeholders (accountants, administrators, auditors, investors, marketers, prime brokers, custodians and regulators) to communicate with one another regularly.
Originality/value
The paper makes two proposals: the founding of a hedge fund information depository; and outsourcing of the compliance function for hedge funds where it is more cost effective.
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Armand Armand Gilinsky and Raymond H. Lopez
In October 2004, Mr. Richard Sands, CEO of Constellation Brands, evaluated the potential purchase of The Robert Mondavi Corporation. Sands felt that Mondavi's wine beverage…
Abstract
In October 2004, Mr. Richard Sands, CEO of Constellation Brands, evaluated the potential purchase of The Robert Mondavi Corporation. Sands felt that Mondavi's wine beverage products would fit into the Constellation portfolio of alcohol beverage brands, and the opportunity to purchase Mondavi for a highly favorable price was quite possible due to recent management turmoil at that company. However, should it be purchased, strategic and operational changes would be necessary in order to fully achieve Mondavi's potential value. In making a decision, students need to consider the attractiveness of the wine industry, its changing structure, its share of the overall market for beverages, and rival firms' strategies. As rival bidders may emerge for Mondavi's brands, Constellation must offer a price that demonstrates its serious intent to acquire Mondavi.
Mei H. Chen and Brian H. Kleiner
This article discusses the pay packages of executive officers at internetrelated business. Generally, the executives’ total compensation include salary, bonuses, commissions…
Abstract
This article discusses the pay packages of executive officers at internetrelated business. Generally, the executives’ total compensation include salary, bonuses, commissions, stock options, and other financial compensation, such as forgiveness of loans, automobile expenses, etc. The 70 to 80 percent of the CEOs’ compensations are from gains of exercising stocks. In this tumbling market, shareholders are suffering the loss from the declining stock prices. However, many CEOs are still left with a mountain of wealth. Meanwhile, the board of directors also raises the stock options to retain their top talents even to those who are under‐performing. Besides CEOs’ compensations, we will also compare the CEO pay with non‐CEO pay packages. The CEOs compensations are still the highest. Furthermore, the average CEO made 42 times the average hourly worker’s pay in 1980, 85 times in 1990, and a staggering 531 times in 2000. Many shareholders are against these out of control pay packages. We conclude that it is time to review the process of determining the CEOs compensation, and that the significant presence of pay‐by‐performance should be taken into account in any examination of the practice and regulation of corporate governance.
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Katherine Taken Smith, Amie Jones, Leigh Johnson and Lawrence Murphy Smith
Cybercrime is a prevalent and serious threat to publicly traded companies. Defending company information systems from cybercrime is one of the most important aspects of technology…
Abstract
Purpose
Cybercrime is a prevalent and serious threat to publicly traded companies. Defending company information systems from cybercrime is one of the most important aspects of technology management. Cybercrime often not only results in stolen assets and lost business but also damages a company’s reputation, which in turn may affect the company’s stock market value. This is a serious concern to company managers, financial analysts, investors and creditors. This paper aims to examine the impact of cybercrime on stock prices of a sample of publicly traded companies.
Design/methodology/approach
Financial data were gathered on companies that were reported in news stories as victims of cybercrime. The market price of the company’s stock was recorded for several days before the news report and several days after. The percentage change in the stock price was compared to the change in the Dow Jones Industrial average to determine whether the stock price increased or decreased along with the rest of the market.
Findings
Stock prices were negatively affected in all time periods examined, significantly so in one period.
Practical implications
This paper describes cases concerning cybercrime, thereby bringing attention to the value of cybersecurity in protecting computers, identity and transactions. Cyber security is necessary to avoid becoming a victim of cybercrime. Specific security improvements and preventive measures are provided within the paper. Preventive measures are generally less costly than repairs after a cybercrime.
Originality/value
This is an original manuscript that adds to the literature regarding cybercrime and preventive measures.
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Most professional athletes are broke financially within a short few years after they stop playing. It is easy for outsiders to place the blame squarely on the athlete himself…
Abstract
Most professional athletes are broke financially within a short few years after they stop playing. It is easy for outsiders to place the blame squarely on the athlete himself. This rush to judgment, however, is not entirely accurate. Black student-athletes who have the talent and ability to play professional sports are hyper-focused on getting to the next level, and the system around them is built to accommodate that focus. A lack of educational, financial, and legal structures creates a dynamic that sets the athlete up for failure. This chapter will focus on the legal and financial realities that Black males face when transitioning into and out of professional sports. In order to shift the current paradigm, this chapter will also provide solutions for both the athlete and the coaches, friends, family members, and agents who surround the athlete, in order to empower the athlete to positively impact himself, his family, and his community.
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Following the tradition of scholarship showing that elites institutionalize their tastes via cultural philanthropy, this chapter investigates patronage of Asian art at the…
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Following the tradition of scholarship showing that elites institutionalize their tastes via cultural philanthropy, this chapter investigates patronage of Asian art at the Metropolitan Museum of Art. Drawing on content analysis of museum press releases and other documents, I conceptually elaborate and empirically illustrate different patterns of Asian art patronage among Asian and white patrons as well as among Asian patrons from different ethnic groups. Engaging theory asserting that elites legitimate art tied to their ethnoracial heritage through supporting it at cultural organizations, I elaborate how Asian elites are especially committed to supporting Asian art at the museum. In addition, I illustrate how, compared with each other, Asian elites particularly champion art from their respective ethnic groups – for example, Chinese elites support Chinese art at higher levels than Asian elites who are not Chinese, and Indian elites support Indian art at higher levels than Asian elites who are not Indian. This chapter advances theory about elites and cultural legitimation, elites and organizational contributions, and progressiveness within the elite.