When entering into negotiations, we should always take into account cultural factors such as the educational or religious background of the person sitting across the table, but, says INSEAD professor Horacio Falcao, many people both underestimate and overestimate the cross-cultural aspects.

http://knowledge.insead.edu/CrossCulturalNegotiations080408.cfm?vid=39 »

Muhammad Yunus: Helping the less privileged unleash their entrepreneurial skills

Some thirty years ago, economics professor Muhammad Yunus made his first loan of $27 to a group of 42 women so they could expand their bamboo furniture making business. 

After the success of his initial loan, Yunus saw that such a small amount of money could change the lives of the people and thought why not do more? Since then, small collateral-free loans known as microcredit have been provided to 100 million people across all continents. With 94 per cent of the world’s income going to just 40 per cent of the population, Yunus decided it was time to do something for the remaining 60 per cent. Commercial banks did not provide such loans to the poor and women only accounted for one per cent of borrowers in Bangladesh at the time. 

http://knowledge.insead.edu/muhammadyunus080403.cfm »

More expensive medication may be more potent

“Marketing variables not only influence people’s perceptions and expectations, they actually influence the real efficacy of products such as medications.” This is according to Ziv Carmon, INSEAD Professor of Marketing, who, along with Rebecca Waber and Dan Ariely from MIT and Baba Shiv from Stanford, tested the effect of price on the efficacy of a medication by administering electric shocks to those taking part in the study to test their resistance to pain.

http://knowledge.insead.edu/ExpensiveMedicationMorePotent080402.cfm »

Mergers and acquisitions: Reducing the private firm discount

Owners of private companies normally sell their shares at a 20-30 per cent discount during mergers and acquisitions. The ‘private firm discount’ is one reason the stock market reacts more favorably when companies announce a private acquisition than whenthe target is a publicly-listed firm.

From the buyer’s point of view, says INSEAD Associate Professor of Strategy Laurence Capron, the discount reflects a presumed higher risk associated with the value of private assets due to a lack of information about the target firms, their lack of liquidity and their lack of visibility. From the seller’s point of view, the discount can reflect naivety, a lack of financial advice and the choice of a preferred buyer rather than the highest bidder.

http://knowledge.insead.edu/MergersAcquisitionsPrivateFirmDiscount080406.cfm »

Women and Money

Are men or women better at investing?

“This is not only a fun question but it is of great practical value,” says INSEAD Assistant Professor of Finance Lily Fang, who hosted a Women and Money forum at INSEAD recently. Some studies suggest that women are better investors than men. Dig a little deeper and the picture isn’t so clear.

http://knowledge.insead.edu/WomenAndMoney080404.cfm?vid=36 »

The brand is the business

“Today more than half of the total stock market value of corporations lies in intangible assets such as brands … The brand is the business.” This statement by one of the keynote speakers at the World Effie Festival 2008, sums up why brand building is important for companies. In this climate of the brand imperative, advertising gurus converged on Singapore for the conference which celebrates advertising effectiveness.

http://knowledge.insead.edu/BrandIsTheBusiness080407.cfm »

On the Branding Edge

Branding expert Ken Cato is the man that some major companies turn to for help with overhauling their branding. His clients include Taiwan’s BenQ, Germany’s Siemens, Australia’s Commonwealth Bank and most recently, Dubai World Central, the world’s largest planned airport. He believes that building iconic brands require companies to dare to be different and have a clear idea of their corporate identity.

http://knowledge.insead.edu/OntheBrandingEdge080401.cfm »

Social entrepreneurship: Innovative care for the elderly

Some ten years ago, when Jean-Daniel Muller and his friend, Jean-Michel Ricard, were studying to become sports teachers – both aged 23 – they felt that not enough was being done to help the elderly. So, they decided to develop a series of exercises for the elderly as part of their 3-month practicum, which would eventually form the basis of an innovative scheme.

Their theory was that physical activity would improve the quality of life of those aged 75 and above, and help them lead independent lives. So they developed gentle exercises that could be performed while being seated.

http://knowledge.insead.edu/InnovativeCareElderly080405.cfm »