Thornton's 3-C Leadership Model
Numerous theories have been put forth about the many aspects of leadership such as motivation,
alignment, and empowerment. However, it is not obvious how these pieces fit together into a
coherent model, if they do at all. A
Dow Jones Industrial Average
The Dow Jones Industrial Average is a price-weighted index of industrial stocks and is the most
widely quoted stock index.
In the early 1880's, there was no broad market measure - investors focused on the prices of
The expectancy theory of motivation models motivational force as the product of three factors
perceived by the individual. There is research evidence to support the theory, and it has become
relatively widely accepted.
1. The site would have to be meticulously and expertly updated so that the information would be timely,
relevant and contain no dead links.
2. The site should be a "work in progress," evolving with suggestions from users regarding new links,
the page stru
Introduction: Who (and Where) are the Chinese?
Many non-Chinese find the behavior of Chinese business people to be difficult to understand. To
understand it, one must understand Chinese culture.
While China is a diverse country, it also has a l
Western vs. Chinese Networking
How It Is Done
Economic and social
Formal and defined roles Informal and flexible roles
Individual & Organization Separate
Impact one another
Forward rates can be calculated using the prices and returns of bills, notes, or bonds provided they
cover the proper time periods. For example, given the six month spot rate r0.5, one can calculate
the one year spot rate r1.0 by using the data for a one
3-C Leadership Model
A leadership framework proposed by Paul B. Thornton, the 3-C model identifies challenge, confidence, and
coaching as the three cornerstones of leadership.
Topics on managing people in work environments, incl
2. Solve for the weights by minimizing the standard deviation of the mean tracking error over the entire
time period being analyzed under the constraint that the weights sum to one and are each greater
than or equal to zero (unless net short positions are
Marketing Research for Strategic Decision Making
The two most common uses of marketing research are for diagnostic analysis to understand the
market and the firm's current performance, and opportunity analysis to define any unexploited
opportunities for g
The S&P 100 is a market capitalization weighted index of large-cap companies. This index also is
known by its ticker symbol, OEX. It comprises 100 large blue-chip companies across a wide range
The S&P 500 is a market cap wei
A firm's market share relative to that of competitors determines which strategy is appropriate.
There often is a significant market share gap between two competitors such that each has
approximately a factor of two more market share compared to the next w
E(Rp) = rF + wm (Rm - rF)
Var(Rp) = w2m 2m.
Z = rF + wm [E(Rm) - rF] - 0.5 A w2m 2m
dZ/dwm = E(Rm) - rF - A wm 2m = 0
Solving for A,
A = [E(Rm) - rF] / ( wm 2m)
The risk of an individual security in a well diversified portfolio can be me
Distribution by sales reps - products distributed through reps may not need a separate
brand name. Those sold on store shelves benefit more from their own name.
Positioning Has Broad Applications
The concept of positioning applies to products in the broa
Single Factor Model (Market Model)
Rit = ai + iRmt + eit t = 1, ., T
where eit is the distance from the regression line at time t. The mean value of e it = 0 and the
covariance between Rm and ei = 0. This is a regression model that characterizes the risk
Timing the Market
Some investors have attempted to time the market to increase their returns, increasing their stake
in equities when they predict an up market and decreasing it when they predict a down market.
Coupon bearing notes and bonds typical
where an up market is defined as the situation in which stock returns exceed the risk-free rate in
the period under consideration. Historically,
up = 67% and down = 33%
One then can draw a tree that leads to four outcomes:
1. Up market, predicted up. [pro
If borrowing is not permitted, the rational risk-averse investor will choose a portfolio along the
capital market line up to the efficient frontier, and then follow the efficient frontier for levels of
higher risk and return.
The variance and expected ret
Market-Neutral Strategies Revisited
Given that "alpha" is the return above the market return, by constructing a portfolio long on positive
alpha stocks and short on negative alpha stocks, one can cancel the effect of the market. This
Western vs. Traditional Chinese Business Practices
How It Is Done
Maximize shareholder value
Serve family interests
Financial Openness Public financial reports
Financial information is kept secret
Marketing Plan Outline
I. Executive Summary
A high-level summary of the marketing plan.
II. The Challenge
Brief description of product to be marketed and associated goals, such as sales figures and
III. Situation Analysis
Payment terms and financing options
Decision variables include:
Distribution channels, such as direct, retail, distributors & intermediates
Motivating the channel - for example, distributor margins
more likely to be called than are higher-grade bonds, since there is a strong incentive to refinance
at lower rates if the issuer's credit improves. This characteristic reduces the effective duration
resulting in less volatility.
The premia related to size and P/B are mainly due to the January effect. It is unlikely that the risk is
higher in January. The size & P/B premia are uncorrelated across international markets. This is
inconsistent with the notion of well-integrated intern
situation determine how we will feel. Reactive behavior can be a self-fulfilling prophecy. By
accepting that there is nothing we can do about our situation, we in fact become passive and do
The first habit of highly effective people is proactivit