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Cars, jewels, wine and watches have been good investments via The Economist Business

DIAMONDS, they say, are for ever. They can be pricey, too. On December 5th 173 lots of jewels auctioned by Sotheby’s raised $54m. They included several pieces belonging to Sean Connery, known for playing James Bond. The following day a car favoured by Bond, the Aston Martin DB5, was auctioned for $2.7m. It was among 24 classic vehicles that together fetched $45m. The sales in New York last week by the world’s two biggest auction houses, Sotheby’s and Christie’s, also involved fine wines, watches and other luxuries. Between them they sold $200m-worth.The Economist has compiled price indices for many of these items—diamonds, classic cars, fine wine, art, watches and other curios—and grouped them in a “passion” index. The index is weighted according to the holdings…

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An accounting scandal sends Steinhoff plummeting via The Economist Business

Steinhoff goes on special offerTHE scale is staggering, even by the standards of scandal-worn South Africa. Steinhoff, a retailer that is one of the country’s best-known companies, admitted to “accounting irregularities” on December 6th when it was due to publish year-end financial statements. Its chief executive, Markus Jooste, resigned, and the firm announced an internal investigation by PwC. Within days Steinhoff had lost €10.7bn ($12.7bn) in market value as its share price fell by more than 80% (see chart). Much is unclear, but it is shaping up to be the biggest corporate scandal that South Africa has ever seen. The company has said it is reviewing the “validity and recoverability” of €6bn in non-South African assets.Steinhoff traces its roots to West Germany, where it found…

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The global property business tries to adapt to e-commerce via The Economist Business

Stores of valueFIFTH AVENUE in New York is the most expensive stretch of retail property in the world, now festooned with lights in the approach to Christmas. The pavements heave with crowds eager to see the diamonds sparkling at Tiffany & Co, a jeweller, and festive displays at Saks Fifth Avenue, a department store. But storefronts further downtown in once-thriving shopping districts remain vacant.The global retail property business is having to adapt as consumers spend more online. Consolidation is in vogue. On December 12th two retail property companies, France’s Unibail-Rodamco and Australia’s Westfield, agreed to merge in a deal worth $24.7bn to form the world’s second-biggest owner of shopping malls by market value. Westfield earns about 70% of its revenues from property holdings in America.In…

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America’s Public Company Accounting Oversight Board gets a new boss via The Economist Business

THE collapses of Enron and WorldCom in the early years of this century turned book-cooking into front-page news. Investors lost over $200bn; in 2002 the stockmarket fell by over a fifth between April and July. In response, America’s Sarbanes-Oxley Act set up a new body, the Public Company Accounting Oversight Board (PCAOB), to supervise auditors.Its quest to give auditors more teeth continues, with the introduction of new rules that James Doty, its outgoing chairman, bills as the most significant changes to reporting by auditors in over 70 years. The question now is whether Mr Doty’s successor, who was announced by the Securities and Exchange Commission (SEC) on December 12th along with four new PCAOB board members, will keep heading in the same direction.New disclosures on…

How AI Will Change Strategy: A Thought Experiment

Executive Summary AI is a prediction technology. Its improvement is akin to turning up the volume knob on a speaker dial. But rather than volume, you’re turning up the AI’s prediction accuracy. What happens to Amazon’s strategy as their data scientists, engineers, and machine learning experts work tirelessly to dial up the accuracy on the prediction […]

What Science Says About Identifying High-Potential Employees

Executive Summary Scientific studies have long suggested that investing in the right people will maximize organizations’ returns. In a world of unlimited resources, organizations would surely invest in everyone.In the real world, however, limited budgets force organizations to be much more selective, which explains the growing interest in high potential (HiPo) identification. If we are […]

Is Your Company Adapting Fast Enough to Thrive in an Increasingly Digital World? – SPONSOR CONTENT FROM DXC TECHNOLOGY

As digital technologies permeate all aspects of their operations, companies around the world anticipate the need for massive change over the next five years, according to a new global survey by Harvard Business Review Analytic Services. But can these organizations adapt fast enough? Almost all of the 376 business leaders in the survey said they […]

Whiteboard Session: How to Think Like an Entrepreneur

About Us Careers Privacy Policy Copyright Information Trademark Policy Harvard Business Publishing: Higher Education Corporate Learning Harvard Business Review Copyright © 2017 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School. Source: HBR Whiteboard Session: How to Think Like an Entrepreneur

Startup Accelerators Have Become More Popular in Emerging Markets — and They’re Working

Executive Summary For decades, we have heard that emerging markets are poised for huge growth that will yield even greater prosperity. But a long list of obstacles always seems to be getting in the way of realizing this potential. Startup accelerator programs have been touted as one path to faster progress. But is the boost that accelerators give in […]

How Energy and Economic Resilience Are Moving to the Top of the Corporate Agenda – SPONSOR CONTENT FROM SIEMENS

Corporate leaders are increasingly concerned about energy, seeing it not just as a cost to be managed but as a key to the future sustainability of their companies. Climate change also is a major concern. How are leading organizations dealing with this challenge? In this edition of the Quick Take, insights from the latest Harvard […]

What We Can Learn About Resilience from Female Leaders of the UN

Executive Summary It’s difficult enough to stay resilient in the face of high demands and changing circumstances. Imagine adding extreme physical conditions, threats to personal safety, natural disasters, armed conflict, large numbers of traumatized people, minimal infrastructure, and complex, multi-stakeholder relations to your list of challenges. While most of us do not face situations this […]

Research: Missing Product Information Doesn’t Bother Consumers as Much as It Should

Consider the following situations: A surgeon creates an online profile of her qualifications and experience for potential patients, but she does not include her patient mortality rates. After one of her patients dies on the operating table, a lawyer for the patient’s family discovers that the surgeon deliberately withheld the mortality data. You are eating […]

Here’s What Mindfulness Is (and Isn’t) Good For

Executive Summary While mindfulness doesn’t necessarily work the way the hype proclaims, there are some things that a good mindfulness practice can really help with: focus, stress response, working memory, and corporate citizenship. By better understanding when mindfulness is the right approach — and how it works — HR and training programs can better enhance both leader performance and employee well-being. […]

How Businesses Are Reducing Their Energy Costs and Building Resilience – SPONSOR CONTENT FROM SIEMENS

Business leaders have significant concerns about energy. A Harvard Business Review Analytic Services report, sponsored by Siemens in conjunction with a national series of seminars focused on energy innovation, found that approximately 90 percent of executives feel significant pressure to reduce their energy spend, and more than 80 percent said fluctuating energy prices are a […]

How to Navigate a Turf War at Work

You’re working on a cross-functional initiative that’s critical to your company. Given your position, you’ve assumed you’re in charge, but it seems your counterpart from another team has made the same assumption. And now you’re in the middle of a turf war. How do you determine who has authority? How do you navigate the situation with […]

Thinking About a “Work from Anywhere” Arrangement? Ask These Questions First

Executive Summary Becoming location-independent and traveling the world is more possible than ever. With the internet and a laptop, scores of professions that were once desk-bound — consulting, writing, researching, designing, and more — are now free to conduct business from around the globe. But is the lifestyle right for you? Before making the decision, […]

How to Regain the Lost Art of Reflection

Executive Summary Executives spend too much time on information processing, reaction, and execution, and not enough on slow, deliberative, reflective thinking. But some CEOs have managed to resist these tendencies. Warren Buffett, Bill Gates, and Mark Zuckerberg read extensively, safeguard time for personal development projects, and constantly seek new stimulus and perspectives. Leaders such as […]

The Grocery Industry Confronts a New Problem: Only 10% of Americans Love Cooking

Executive Summary The food and grocery industry feels threatened by Amazon’s acquisition of Whole Foods, but it faces a bigger but quieter threat: the long-term decline of people’s interest in cooking. Instead of ignoring this behavioral shift, food companies should become more proactive by exiting categories that have no future, focusing on super-premium products, and using […]

Transcending Either-Or Decision Making

Jennifer Riel, an adjunct professor at the Rotman School of Management, presents a model way to solve problems: integrative thinking. It’s taking the best from two inadequate options to come up with a successful solution. She gives examples from the film industry to show how CEOs have put the process to work. Riel is the […]

FBI Negotiation Tips for Navigating High-Pressure Situations – SPONSOR CONTENT FROM HBX

Your success at the negotiation table requires a blend of different techniques. Chris Voss, former lead international kidnapping negotiator for the FBI, spent his career navigating high-pressure situations. While most individuals will never be bargaining to save a human life like Voss did, each of us negotiates daily with colleagues, vendors, friends, and family members. […]