Through The Minimum Wage Looking Glass: Economic Consensus Unrealized
News from UCLA Anderson School of Management
“If you’re like most college graduates, you took an intro to economics class that left you with at least this single and powerful concept: supply and demand are lines that cross on a graph at a magical center point known as price equilibrium. When our politicians and others say that ‘the market will sort it out,’ a belief that verges on deity worship for some, this foundational tool of economics is often what they have in mind: buyers and sellers deciding, in the rough-and-tumble of free enterprise, how much of, and at what price, a good or service will change hands.
“Theoretically, the tool should work to set prices in that most important of markets, the one for human labor. Microeconomics 101 suggests that supply and demand for labor moves just like the forces around widgets, smoothly up and down, until they intersect. Price equilibrium is the wage at which the number of jobs exactly matches the number of workers willing to labor at that price.”
For Chinese Execs, Cornell-Tsinghua Program Offers Best Of Both Worlds
News from Cornell University Johnson Graduate School of Management
“In 2016, Catherine (Zhi) Xu moved from Hong Kong to Shanghai to work in the asset management division of Credit Suisse. She was in her late 20s, had worked for UBS and Goldman Sachs, and was ready for a new challenge.
“China had only recently allowed foreign-owned banks to offer asset-management services. Her job was to study the rules and regulations, learn how the market actually worked, and begin to develop a client base.
“One of her first thoughts was that an MBA could help.”
Record Number Of Global Courses This Year At Darden
News from University of Virginia Darden School of Business
“Led by the Darden Center for Global Initiatives, the University of Virginia Darden School of Business announced it is expanding offerings of Darden Worldwide courses for the 2018–19 academic year to an all-time high of 19 faculty-led courses, rising to meet increasing demand from students for global learning opportunities.
“When the Darden Class of 2018 graduated in May, 79% of the class had participated in at least one global academic course during their Darden degree program. In alignment with Darden’s goal to prepare students for global leadership, the new Batten Foundation Darden Worldwide Scholarship program covers the global course fee for every eligible full-time MBA student, starting with the Class of 2020, which arrived this August.”
Huawei’s Tian Tao Tells Secrets Of Company’s Success At Imperial
News from Imperial College London Business School
“Huawei’s Tian Tao gave a keynote speech on the secrets of the company’s success at Imperial College Business School last night.
“Mr. Tian, an advisor of the Huawei International Advisory Council and author of the book ‘Huawei: Leadership, Culture and Connectivity,’ discussed the Chinese technology company’s strategy and structure with students.
“Mr. Tian, whose son studied at Imperial, said he had fond memories of returning to Imperial, as he used to visit over Christmas and New Year.”
Can Restructuring Sears Fix A Catalog Of Problems?
News from The Wharton School at the University of Pennsylvania
“Last week, Bay Harbor Islands, Fla.-based hedge fund ESL Investments unveiled a plan to rescue one of the icons of American retail: Sears Holdings Corp., which owns the Sears and Kmart brands. However, experts warn that ESL likely stands to gain more from the restructuring than Sears Holdings, and they note there is a potentially large conflict of interest, because Sears CEO and chairman Edward Lampert also owns the hedge fund, which is the retailer’s largest shareholder.
“ESL’s plan for Sears’ restructuring called for the retailer to sell real estate assets to extinguish related debt of $1.5 billion, as well as restructure $1.1 billion in debt, according to a filing with the Securities and Exchange Commission. The plan is expected to cut debt by 78% to $1.2 billion and lower annual interest expense by 80% to $88 million. Earlier this month, Sears posted a net loss of $508 million ($4.68 per share) for its fiscal second quarter, which was more than double the $250 million ($2.33 per share) in losses incurred in the same quarter last year. Revenues plunged from $4.3 billion to $3.2 billion during the same period.”
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