Venture capitalists are stars in Silicon Valley, picking and choosing among potential tech giants and riding startups to riches (if they're lucky). But venture capital isn't for every startup, and the pursuit of VC can be a trap, points out Elana Fine, executive director of the Dingman Center for Entrepreneurship, at the University of Maryland's Robert H. Smith School of Business.
Say you're a hotel manager trying to decide whether to build a pool: Will the additional reservations you bring in from that amenity offset the cost of construction and maintenance? Or say you offer free bottled water to all guests. If you stopped doing so, would you save money in the long run? New research from the Smith School offers some answers to these questions.
The most recent “Poets & Quants’ Best and Brightest MBAs” listing features two recent graduates from the University of Maryland’s Robert H. Smith School of Business. Tiffany Chang and Allison Davern are profiled among 100 of the best MBAs in the Class of 2016, globally.
Smith School professor P.K. Kannan acquiesced, like a typical parent and consumer, each time one of his daughters learned to ride a bicycle and requested her own pink model. Similar bikes of other colors were lower priced, but try explaining that to a child. "When you shop for a special design or a pink color, you signal to the manufacturer a willingness to pay more," Kannan says. "So they take advantage."
Since the global financial crisis, “active” fund managers — stock pickers looking to beat the market — have lost ground to their “passive“ counterparts, as investors shun stock pickers amid concerns over bad performance and high fees. Smith School finance professor Russell Wermers compares the situation to the shark-prey relationship. "We need both in the water to make the world go round properly," he says.
About the University of Maryland's Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and part-time MBA, executive MBA, online MBA, specialty masters, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.