How Amazon transforms investor tension into creative tension — Lou Shipley

MIT Sloan Lecturer Lou Shipley

MIT Sloan Lecturer Lou Shipley

From Forbes

One of the big financial stories of 2014 has been Amazon versus its investors. The company’s stock, after climbing nearly 40% in 2013, started to slip early this year, then plunged 11% on the last day of trading in January. Throughout February, the stock remained in the doldrums.

Investors, it seems, are weary of Jeff Bezos’ practice of plowing Amazon’s oversized revenue into secret projects designed to grow the massive company even more. The stock’s big drop in January coincided with the company’s announcement that it planned to raise the price of Amazon Prime, a sign that investors don’t trust management to use whatever money the price hike might generate to benefit shareholders.

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Keeping creative employees inside the firm — Aleksandra Kacperczyk

MIT Sloan Professor Aleksandra Kacperczyk

MIT Sloan Professor Aleksandra Kacperczyk

From the Chicago Tribune

At a large, established company, several employees get together and hatch a plan for a new business. Eventually, they make the leap, exiting their old firm and launching a venture that takes off and achieves great heights.

This oft-repeated tale is usually considered a business success story. Spin-offs have the potential to generate great value. New companies create jobs and spawn new products and services. When the process starts happening at a number of firms in the same place at the same time, business clusters form, spreading prosperity across an entire region.

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