5/30/2008

What recession?


Google do not know the recession. Google continued prosperity to its ability to keep innovating both in search and advertising operations. And also they launch new lines such as online office-productivity software. Many companies usually face the recession and they need a innovations that change the game in their industries. How Google manages the innovation?
First of all, they do not treat the innovation in recession. They think that a hot product will sell just as well in a recession as it will in a nonrecession. It means there is no other special way to overcome the recession. I think this is the key of success of Google. They are always innovating. Innovation is not only an option depending on situation when the company faced on the recession but also a necessary part of managing company.
Especially, Google has a unique culture of innovation. Engineers usually spend their 20% of time on project related to innovation outside their main job. It can be possible to do because nobody legally can not press them. It means the managers can't screw around with the employees beyond some limit. This innovation escape-valve model is applicable to essentially every business that
A problem that they face now is that people in multiple sites, 50 locations because Google always do face-to-face contact when they have a meeting. So they think first programming is "telephone call," which is two people, you and I, programming together. Second choice is everybody fits into a single room. It means other variants are bad. They really emphasize the man to man style meeting.
Google’s whole asset is the people, their ideas. Nowadays, the main power of business is the man. In the financial industries, they really need a man power to keep going or expand their business. I think that ability of employee is not too much important. The most important thing is the system which make employee do their best and keep their best condition such as freedom to talking about own ideas.

20600171 12th entry
http://www.businessweek.com/

Product Advertisements in TV Dramas Go Subtle

In an effort of appealing one's product or services, firms are now using various ways of promoting their brand. One of the most fast growing marketing strategies is product placement. Product placement is having company's product or service on a show, drama, or even on movies so that whoever sees that on any media can be aware of what kind of product they are promoting.

One example that the article states is the resent hit drama from SBS called "One Air," where the main character frequently used a coffee maker from DeLonghi to brew the espresso. After few exposure of the product, the sales of the coffe maker from DeLonghi jumped about for 20 percent. It surely show how effective it is to have such a marketing strategy in order to promote their products in a short period of time.

Experts elaborates the benefit of using product placement stating that since viewers tend to related themselves into main characters in the drama or movie, companies can easily attract their product or services to customer's' daily lives. Instead of using great amount of advertisement budget on a single TV commercial, it's much economic for the company to simply sponsor hit dramas or movies. One of the good successful example would be Coca-Cola supporting American Idol which is the greatest hit reality show in America.

However, it could be vulnerable to the success or failure of the drama. For example, according to the article, "SAAB convertibles were painted as cars for the air-headed rich, after a male star carelessly drove around in one in the 2000 drama ``Juliet's Man.'" (KoreaTimes).

I personally don't like having certain company's products on the shows, drama, or movies because they often distract me from fully enjoying them. I can assume that it's a "Win-Win" situation for both production and the firm to have such strategy since the production can get sponsers easily and the company can get a great output from it. However, I belive overusing such promotion can be also risky for the production because of viewers getting annoyed by too much ads on the show, and the company having a risk for depending a lot of the success of the show. I hope both parties would find the right equilibrium for using product placement strategy.

Reference;
Han, Jane. "Product Advertisements in TV Dramas Go Subtle" KoreaTimes. May 29, 2008.
http://www.koreatimes.co.kr/www/news/biz/2008/05/123_24958.html

20601008 - 12th Entry





Joining big houses to advise on high-profile deals


Boutique Banks Find a Niche in Tech

A new breed of boutique investment bank is making its mark on the merger-crazed tech industry. Unlike the niche securities firms that a decade ago focused on research, stock sales, and initial public offerings in addition to mergers and acquisitions, this crop focuses more narrowly on matchmaking but is no less adept at getting in on some of tech's most lucrative deals.
  
Consider the Yahoo-Microsoft mating dance. In February, Yahoo (YHOO) hired Moelis & Co., the Los Angeles firm started last year by former UBS (UBS) investment banking head Ken Moelis, among other banks, for advice on resisting Microsoft's (MSFT) unfriendly offer, then worth $45 billion. Meanwhile, Google (GOOG) hired Frank Quattrone's new Qatalyst Group for advice on how to respond to Microsoft's bid (BusinessWeek, 3/27/08), according to published reports, supplementing services from Credit Suisse (CS).
  
Boutiques Offer More Flexibility
More and more, small banks that specialize in mergers and acquisitions and landing investments for privately held clients are joining high-profile houses such as Goldman Sachs (GS), Morgan Stanley (MS), Citigroup (C), and Merrill Lynch (MER) in helping to stitch together deals.
Boutiques that employ at most a few dozen bankers are using a combination of long-standing industry relationships, small teams that assign senior staff to deals, and the flexibility to dart in and out of smaller buyouts to win business. They're gaining prominence as some of the top banks have cut or reassigned tech bankers amid a credit crisis and lull in IPOs.
  
GCA Savvian Group advised on 45 M&A deals worth $23.6 billion in 2007, pushing it to 59th place based on deal count, from 71st in 2006, according to data compiled by Thomson Reuters (TRI). "Our pitch is all around being a trusted adviser," says Rich Jasen, a Savvian managing director. "This is not something where a managing director shows up for the pitch, and the next time you see him is at the closing dinner."
  
Filling an Important Niche
Boutiques' influence is being felt around the computer industry. Electronic Data Systems (EDS) hired Evercore Partners (EVR) to help structure its $13.9 billion sale to Hewlett-Packard (HPQ), announced May 13. Evercore has been among the top 25 banks based on M&A transaction value the past four years, after ranking 104th in 2003. Other recent deals include advising IronPort Systems on its $830 million sale to Cisco Systems (CSCO) in January, 2007.
  
Investors and entrepreneurs say the boutiques fill an important niche in personalized investment banking that's been absent from Silicon Valley since four powerful boutique banks of the '90s—Alex. Brown, Hambrecht & Quist; Robertson Stephens; and Montgomery Securities—either closed or were subsumed by larger firms in the wake of the dot-com crash. The new crop of boutiques is a welcome presence at a time when the IPO drought has made it tough for venture capitalists to get the attention of senior bankers at the so-called bulge-bracket firms—even for a sale. "We can't get our companies out, and one reason is, we can't get the attention of the investment bankers," says Mark Heesen, president of the National Venture Capital Assn.
  
Unlike those '90s firms, the new boutiques tend to focus on M&A advice and fund-raising, eschewing IPO underwriting, sales of securities, and extensive research. "We're not trying to be everything to everybody," says Brian Roberts, a senior managing director at Evercore. "We would much rather have a dialogue with the CEO about what keeps him up at night."
Union Square Advisors, founded last September by a group of former Quattrone colleagues, has quietly won several M&A and fund-raising projects, and is in talks with large tech companies about future work, say people familiar with the firm's plans. The Yahoo assignment helped catapult Moelis to 12th most active, based on deal value in the first quarter.
  
20700110
12th entry
author : Aaron Ricadela
title : Boutique Banks Find a Niche in Tech
date : May 23, 2008,

Nike-golf

"In 1996 a group of Nike marketing executives gathered in a fourth-floor conference room on the company's Beaverton, Ore., campus and looked into the future. On the whiteboard were the names of five possibilities for the company's next big sponsorship push. Two of them, the NFL and the NBA, were in sports where Nike was well established, but the other three represented worlds where Nike was all but unknown: the Brazilian soccer team, the New Zealand All Blacks rugby team and a teenage golfing phenom named Tiger Woods. Wall Street was waiting to see what Nike would do to follow up Michael Jordan and the enormously successful Air Jordan line of footwear.
When the company announced that it had signed a multiyear, multimillion-dollar deal with Woods, the reaction was swift--Nike stock fell 5%. Says Bob Wood, one of the officials in that room: "They thought we had overpaid for him." When Tiger Woods came on board with Nike Golf in 1996, the company was a $120M business, based primarily and apparel and footwear sales. Fast forward to today, 11 years after Nike Golf signed Tiger Woods. Nike Golf is a thriving $600M business now built around clubs and golf balls in addition to just apparel and footwear.While Tiger Woods is one of the main reasons for Nike Golf's enormous success, he's not the only reason the company is thriving.
Club guru Tom Stites and golfball guru Rock Ishi have come up with innovative products ranging from the SUMO square driver (KJ Choi has ridden the driver to multiple tour wins this season) to the Nike ONE golf ball. Nike Golf has invested substantial money in their 31,000 square foot plus Research and Development facility outside of Dallas.And while Nike Golf might not have the large stable of athletes that Titleist and Callaway possess, they certainly have quality endorsers led by Tiger Woods. Justin Leonard, KJ Choi, Trevor Immelman, Stewart Cink, Rory Sabbatani and of course Michelle Wie. Nike Golf's endorsers, by the way, sport nothing by the Nike swoosh on their apparel, footwear and headwear.......a pre-requisite for any athlete who signs with Nike Golf.Nike Golf Global Sports Marketing Director Kel Devlin will join me on this weekend's edition of Sports Business Radio to discuss the growing success of Nike Golf.
Devlin is attending this week's PGA Championship in Tulsa, Oklahoma.I'll also be joined on this weekend's show by Lamell McMorris, the spokesperson for the World Umpires Association. The Major League Baseball umpires union said Monday that it is refusing to cooperate with a request for background checks from commissioner Bud Selig's office, calling the initiative a "knee-jerk, misguided witch hunt" in response to the NBA betting scandal involving referee Tim Donaghy.The umpires are willing to consider submitting to background checks, but only if MLB comes to the bargaining table and negotiates the provisions in "good faith," Lamell McMorris, was quoted as saying earlier this week.I'd like to get McMorris on the show this weekend to find out what the World Umpires Association is looking for from MLB in order to cooperate with these background checks. For the record, I happen to agree with Mr. McMorris that this initiative by Selig's office is a "knee-jerk" reaction to the Tim Donaghy gambling scandal in the NBA. Why hasn't Selig subjected his umpires to background checks before this?
And how should an umpire like Ed Montague, with 31 years of experience feel when someone tells him that after three decades of loyal service, they now need to cavity search him to make sure he hasn't decided to go "rogue" like Donaghy.Think about it. How would you feel if you were sitting at your desk today and your boss came up to you and said you needed to pee in a cup, take a lie detector test and hand over your personal information so he or she could conduct a thorough background check on you because Tom over in accounting was found cooking the books last week?I understand the cause for heightened security by MLB, the NBA and other sports leagues. The integrity of their games is of the utmost importance. But these leagues had better not go about conducting these background checks in a heavy handed manner or I really think it will come back and bite them in the end.
title: "Nike sprit ahead"
date: june 27, 2007
page: 1
20300780 entry 12

Weekend web-New territory of network


I read an article about 'weekend web'. Weekend web is a type of web service that provide in weekend. You know, people use web service variously in weekend. Most people want to enjoy in weekend and leisure and entertainment information is often used in online. Now, many huge web sites are trying to offer customers more valuable service for their weeks. For example, the yahoo and google provide service for map searching and travel sites. But many people isn't use PC for internet in weekend. Because, when they need the online service, they simply click their mobile phones. But this service isn't affordably available yet. In Korea, the most developed internet country, many people use mobile internet. But the service costs are very high and people often hesitate to use the service. In US, many people use mobile internet, but there are not many service and also costs are high. Many US customers want to get information easily in weekend and if the service is available at affordable price, the mobile internet market will grow humongously.
As I wrote on upper side, people use different set of web sites between week and weekend. In week, people mostly use their PC to access the Internet, but in weekend people use mobile phone to access the Internet. In other words, the development of weekend web can be inplemented only if the mobile Internet is developed. Accordingly, many Internet companies are now trying to cooperate with mobile device companies. For example, iphone, Apple's star product, is the most popular mobile device in US, and web companies like Google or Yahoo suggented them to use their mobile version website. Apple also could be better off if they contain many internet service and they accepted the deal. Now, Americans use more mobile Internet in weekend. Through these developments, US Internet companies could find a breakthrough from the very competitive web service market.
I think korean web site Daum and Naver, doing very well in their small market. Their market share in korea is very high and even Google and Yahoo could't win them. But the Google and Yahoo rule the world Internet trend and our companies are just local marketers. Korea's mobile Internet technology is world No.1. But the regional limitation prohibit them to make services like weekend web. Korea have small territory, and people don't use mobile Internet in the weekend. On the contrary, people use more mobile Internet in week. And the most users are 10s. I think it's a creative web service. Because in korea, many entertainment companies are joining the mobile Internet and provide their service. It also the reason of developing game industry. Although there are many web service in US, we also have our definite territory and can be better off by developing new technology. But we have to cultivate our new territory in the worldwide market. For this innovation, our web sites need to equip more international service and capacity for images and information.
Author: Olga Kharif
Title: Welcome to the Weekend Web
Date: May 29, 2008, 12:01AM EST
Page: 2
entry # 12 20700067