Friday, December 01, 2006

The Entrepreneur's Journal: My Personal Blogging Experience

Throughout my blogging experience I have gained extensive knowledge in how communicative a blog can be. My experience was positive, I learned to develop a solid argument and research the internet for supporting evidence to further prove and establish integrity within my entries. Using graphics was also a tool I developed in supporting my debates. I learned how to use graphics as a visual aide, giving readers a better understanding of my discussion. Although my experience was positive and constructive, I feel my writing could have improved in the form of structure and organization. My entries have successively developed in organization and structure and became increasingly more articulate as the semester progressed. My last blog entry titled, Lloyd Greif: Nomination for 2007 Honorary Degree shows improved organization and structure, and therefore my writing and claims captivate the reader more effectively.

As a business major I consider technology of paramount importance given today’s ever demanding business environment. I have always considered myself proficient pertaining to technology, more specifically the internet, however until now I have never understood the function of a blog and how informative one can become. Through my blogging experience I was able to become comfortable with the “blogosphere” and effectively research fields of interest using the internet. I now understand that the Internet is not just a research tool, it can give one the ability to convey thoughts and findings on a medium that is exposed to billions of people. Through my research on China I have come to understand the laws, politics and different ways that Americans practice business overseas. I have also commented on other blogs, furthering conversations on China’s detrimental manufacturing practices and the laws or lack thereof surrounding Chinese fabrication. The first two blog entries forced me to probe into international business and challenge myself to find new research tools. In the third entry I choose to research a website called This international trade site is a vital tool in that it takes the arduous task of international business and simplifies it into a simple point and click of a mouse. Becoming an expert on this site has familiarized me to the practices and formalities of business in China. I have gained valuable insights through the Entrepreneur’s Journal and will apply the material towards my future endeavors!

Saturday, October 28, 2006

Lloyd Greif: Nomination for 2007 USC Honorary Degree

Universities nationwide distribute copious awards, however an honorary degree is the highest recognition an institution may grant. As stated by James O. Freedman, in Liberal Education and the Public Interest, the honorary degree is not entirely to honor distinguished individuals who have made an impact on the university and society as a whole but “one of the ways in which universities advertise themselves”(125). The inheritor must be analogous with the Role and Mission of the University of Southern California, embody a diverse background and support the “cultivation and enrichment of the human mind and spirit.” According to the Honorary Degrees Committee, the focal point of a recipient’s career must accentuate the university’s strengths and “honor alumni…who have made outstanding contributions to the welfare and development of USC or the communities of which they are a part.” Of paramount importance, the recipient must adhere to the Mission Statement of the university, match the criteria of the honorary committee and conform to the Code of Ethics presented by The University of Southern California.

In the past, USC has awarded candidates typically associated and distinguished within the arts; however Lloyd Greif meets and exceeds all criteria through his generosity and exceptional presence within the University of Southern California. A proper match between the school and the honorary recipient is essential and the engagement must convey the appropriate image and thus is designed to “elevate the university in the eyes of the world” (Honorary). Lloyd Greif is the founder of the world’s first and only investment bank for entrepreneurs as well as a philanthropist involved in the university and fosters an environment of excellence through emphasis on the education of students analogous to the university’s Role and Mission of the University of Southern California.

Over time, Freedman states, "the original purpose of honoring distinguished personal achievement has widely been modified” with the current selection process now geared towards figures of “commoditized fame” (126). Being the highest award one may receive at USC, much effort should be put forth towards ensuring the candidate has distinguished himself through achievements that benefit not only USC, but also the surrounding community. When institutions select their beneficiaries “a university makes an explicit statement to its students and the world about the qualities of character and attainment it admires most” (Freedman 117). In 1998, a generous donation was made in the sum of five million dollars from Lloyd Greif and shortly after, a naming ceremony was held in which the Lloyd Greif Center for Entrepreneurial Studies was established. His philanthropy does not stop short of donations; Greif is chair of many organizations in USC and throughout the community. By nominating Lloyd Greif, the university will adhere to its honorary criteria while recognizing a man who takes a vested interest in not only the betterment of himself, but likewise those that surround him.

In Mike W. Martin’s, Meaningful Work: Rethinking Professional Ethics, he believes the extent of an individual’s professional achievement can be measured upon three different categories, craft, compensation and ethical motives. How these three categories pertain to Lloyd Greif will be discussed in the following sections. Craft motives deal primarily with one's profession, the skills possessed and his application towards his craft. To quote Martin, craft motives encompass the “desires to achieve expertise and desires to manifest technical skill, theoretical understanding and creativity” (20). Compensation motives do not only apply solely to ones income, Martin includes abstract advantages of compensation motives including one’s “desire for social rewards, including money, power, authority, recognition and job stability” (23). The two components of moral motives include, “the desires to promote the good of clients for their sake” and “to enter into and sustain caring relationships with clients, customers, colleagues and the wider community” (23).

Craft motives are based on expertise, which according to Martin “is acquired through higher education” (22). Greif has obtained a degree in economics from UCLA, a master’s degree from USC in entrepreneurship and a J.D. from the Loyola School of Law. All three degrees further Martin’s belief regarding higher education. The myriad degrees Greif obtained has enabled him to distinguish himself within the investment banking industry and eventually become the founder of Greif & Company, a company that has reached immense recognition and success under Greif’s leadership. It was Greif’s past experience and success at Sutro where he derived his experience and expertise from. Within a decade at Sutro, corporate finance revenues increased tenfold and Greif was ranked as the firm’s top performer. In 1992, after ten years of acquired experience, Greif left Sutro and founded a personal venture, Greif & Company. In just six years of applying his technical skill and theoretical understanding “Greif had built his firm into the leading purveyor of merger and acquisition advisory services to medium sized businesses based in the Western United States” (Trojan). One short year later in 1997, Greif completed nearly one billion dollars in mergers and acquisitions for 'entrepreneurial' owned and operated companies. Martin also encompasses “exercising good judgment and sound discretion when providing professional services” (22) as another measure of craft expertise. Upon immediate upload of Greif & Co.’s firm profile one will find the five pillars of expertise that encompass Greif & Company’s foundation. Upon selecting “Integrity” the quote prominently reads “We are proud of our firm’s long standing reputation for honesty and integrity in all of our business deals.” Lloyd Greif meets and exceeds the craft expertise set forth by Martin and has proceeded to build a reputable and successful business model based upon his expertise.

With craft expertise and a status such as Greif’s, a high compensation does follow. As an entrepreneur in the investment banking industry, the salary potential is limitless. A theory proposed by Adam Smith states, due to substantial craft expertise and barriers to entry, “professionals generally receive above-average social rewards in the form of income and prestige” (Martin 22), though this should not sway the Honorary Committee from eliminating Greif from their considerations. As Martin believes, “compensation motives are not exclusively self-interested” (23). A five million dollar donation is evidence to the part and Martin also explains, “[Motives] may be linked to desires to support one’s family or philanthropic desires to obtain resources in order to help others” (22). Greif’s income gives him the necessary prestige and power to Chair the advisory council of the Lloyd Greif School of Entrepreneurial Studies at USC and the Entrepreneurship Mentor Program, a position that lacks any financial compensation but is sufficient in intrinsic rewards. Greif ensures USC students are given the best resources to succeed. His passion for the success of students is unparalleled and his involvement in students' education is unique, his donation far exceeded that of a five million dollar check. As Greif stated regarding the new center, “The establishment of this center will give greater emphasis to the critical role of the entrepreneur in the American economy, while providing the entrepreneurs of tomorrow with the tools and inspiration to fuel their future success.” Greif refers to the “entrepreneurs of tomorrow,” as students studying under his scholastic program. Greif and his firm have fostered a unique change towards philanthropic donations within the investment-banking field, a field considered by many to be brimming with carnivorous, over-paid executives. Greif’s achievements and donations show an individual motivated by passion for the university and community rather than just compensation.

Under Greif’s management, trust and integrity is never in question. He comments on the ethical nature of his firm when he suggests that one “must stand behind your deals. At Greif & Co. our word is our bond.” Ethics, an issue of paramount importance in business, often becomes a hazy subject in investment banking. As a result, figures that are successful often are held in a negative perception. Greif & Company’s competitive advantage is simple,“our good name and reputation are the most valuable assets we have,” and through this belief became the first investment bank to base itself on client trust. As stated by Martin, “caring motives are desires to promote the good of clients for their sake” (23). Greif transformed his venture in six short years from a boutique investment bank to an avant-garde mid range investment house established on a meritorious foundation with integrity on the top of the priority list. One searching for Greif & Co.’s characterization must look no further than the home page where the mission statement boldly reads, “Do unto others as you have them do unto you.” This statement bears a striking resemblance to one of USC’s moral pillars in which the code of ethics is constructed, “a commitment to respecting the rights and dignity of all persons”. Integrity, one of the five pillars Greif founded his company around, reads, “to be an effective, credible dealmaker, you must stand behind your deals. At Greif & Co, our word is our bond.” In today’s demanding business world, allegations and scandals have sadly become norms; Lloyd Greif exhibits morals and ethics many individuals have breached in the hopes of obtaining success like Greif’s. The generous donation from Grief came in the sum of five million dollars, however one cannot measure the treasured hours Greif has allocated towards the program, organizing and attending events, listening to student concerns and ensuring the maximization of the educational experience. The time apportioned from a man of Greif’s reputation differentiates him from other donors who just write a check.

Honorary Degrees at the University of Southern California require that the candidate possess an exemplary reputation, be involved in the community and exhibit altruism to the university. Greif’s merit extends beyond USC to the surrounding community where he is a board member of Loyola Law School, an active member in the Boy Scouts of America, The Entrepreneurship Mentor Program and the Los Angeles Police Department. Lloyd Greif’s coupled donation of five million dollars and lifetime dedication has propelled USC into the elite class of business schools and has given USC’s entrepreneurs a competitive advantage and an ability to flourish as an entrepreneur. According to the Honorary Degrees Committee, a degree is presented to fulfill one of four important components. The award is given to honor distinguished individuals who have achieved superb achievements in not only their professional field, but in scholarships or creative activities. An award may also be given to honor alumni or those that have had a substantial influence on the development and furtherance of the university. An award may further be presented to recognize exceptional acts of philanthropy and most importantly the Honorary Degree may be presented to “elevate the university in the eyes of the world” (Honorary).

Lloyd Greif has spent over twenty years in investment banking, and has established Greif & Co. as a top tier investment banking firm. Aggressiveness, considered by many to be a valuable asset has enabled Greif to set himself apart from the competition; however some critics may consider his aggressiveness to be an antagonistic trait. Often times, high profile executives are seen as cold and callous individuals and many feel they are greedy and have no regard for the party on the other side of the negotiating table. In reality, a client pays a colossal sum to Greif in return for his expertise and therefore Greif would be foolish not to represent his client to the best of his ability. Martin believes, “integrity motives are desires to meet the ethical standards governing a professional responsibilities-because they are one’s responsibilities” (23). In Greif’s situation, not representing a client to his maximum potential would be dishonest and immoral. Therefore, aggressiveness should not be considered a negative character trait when evaluating Greif, his industry is cutthroat and Greif is proud to admit that his employees are “in no immediate danger of being confused with shrinking violets anytime soon.” Investment banking requires “aggressive advocates” that represent their clients’ best interest. Unique to Greif & Co., they are experts at “pushing the envelope” but knowing where the ethical line is drawn. According to Greif, “many times other professionals tell us that we look out so much for our clients’ best interest and negotiate so hard on their behalf that they forget we’re that agent and not the principle.” Some may consider Greif too aggressive in his practice however; Greif’s aggression and his competitive instinct are essential to staying afloat in his industry. While at the negotiating table, he may be brusque and domineering, but Greif’s character is dynamic in that he shows a philanthropic side too, well suiting him for an Honorary Degree.

According to the University of Southern California and the honorary committee, the primary objective of the honorary award is to, “honor alumni…who have made outstanding contributions to the welfare and development of USC or the communities in which they are a part”. Lloyd Greif is the President and CEO of Greif & Co., a member of both, the Board of Directors of USC Associates and the Marshall School’s Board of Leaders. Located in Los Angeles, a city known for finance and enterprise, the Marshall School of Business must perform up to the colossal reputation it had built and thanks to Lloyd Greif, USC is now surpassing all expectations, landing the number three spot in the rankings and setting new standards not only for students and entrepreneurs, but new donors to become involved beyond monetary donations. If selected to speak at commencement, Greif will have the opportunity to enlighten the audience to his many distinguished achievements and the importance of giving back to the surrounding community. He is a generous individual who has benefited the university in rankings, internships, donations and other incalculable measures. According to the former Dean of the Marshall School of Business, Randolph W. Westerfield “Lloyd Greif epitomizes the role of the modern, successful entrepreneur, always looking for new business opportunities to create value while, at the same time, encouraging the next wave of entrepreneurs to follow in his place”.

Monday, October 09, 2006 Uniting Markets Across Seas

International business, a thriving sub-category within the macro-sphere of commerce and trade, is a complex system which exists in global communication and connection. Moreover, bridging the gap between buyers and sellers is an arduous task, a task in which the player must be acutely aware of the competitiveness of his constituent market. According to Pew Internet & American Life Project, as of April 2006, the percentage of adult Americans who use the internet daily has grown by 400%. Presently, 66% of Americans use the internet every day to complete such varying tasks as, checking the weather and completing basic business transactions.

A viable solution to international trade and commerce barriers is now available thanks to, an international trade site that capitalizes on China’s industrial market and offers myriad resources to internet savvy business people hoping to capture a piece of the action. received the 2005 “Standard of Excellence” from the prestigious Web Marketing Association’s “WebAwards.” A well deserving recipient, has become the most reliable website, allowing international business to be conducted without expensive travel or extensive research and delivers information to prospective buyers about products manufactured in China via an organized website platfrrm. The WebAwards is an annual event showcasing the elite websites of specific industry categories and identifies a small handful of benchmark setting websites. There is substantial room for interpretation within the WebAwards categories due to loosely defined guidelines set forth in the list of criteria.

Foreign trade data,(FTD), recorded that China’s exports through July 2007 had already reached 30,833.80 units for seven months to date, compared to 28,367.90 units in 2003. The colossal power of China’s exponentially increasing export market is difficult to ignore. It is because of this very reason that, a pioneer in the e- commerce segment of foreign trade, enables an individual to effectively purchase manufactured goods from China without any prior contacts or an intermediary

When a user would like to inquire about a product or service from China, one would simply select a category, for example “lights and lighting,” then a sub-category, “Dimmers” and locate the specific items they are looking for. If one were interested in dimmer switches he could scroll down the page until the exact product was located, then select the product and find any necessary information. The innovation behind the product display and description makes research and purchasing effortless. Few international business website has been able to successfully link international buyers and manufacturers while eliminating the middleman as has. The user can order the product or contact the manufacturer immediately—an innovation and function unmatched in the industry.’s main competitor,SAP, requires that they be initially contacted, and once matched with a manufacturer, a buyer can then establish a relationship. This process requires too many links in the supply chain, and increases the costs and hassles of a potential transaction.

Beyond uniting buyers to Chinese manufacturers, applies interactivity and establishes considerable credibility through forums which enlighten users to potentially lucrative experiences with Chinese manufacturers as well as unpropitious undertakings. According to the Webby Awards effective interacivity is, "input/output, as in searches, chat rooms, e-commerce and gaming or notification agents, peer-to-peer applications and real-time feedback." The forum also lists advice, “empowering you to search and find the customs and certifications necessary to import /export goods to/from your country.” Importing goods from China is a formidable task that many individuals are immediately repelled once informed about the regulations. is a forum where users can not only read about the regulations, but can interact through a virtual blog which allows questions and comments to be posted and discussed. offers an abundance of resources. Several areas of improvement, nonetheles should be further addressed. By shrinking the “categories” section, the homepage will appear less intimidating. Through the use of graphics, a user can seamlessly guide hiself down the page and fully capture everything has to offer. Sidebar links such as “About Us” and “Advice to Importing” may eliminate barriers to entry. This could eliminate hesitation for common consumer. By informing the customer and making them feel at ease, can vastly increase their customer base.

The emergence of allows consumers to efficiently purchase goods without trade brokers or pricey liaisons and facilitates a virtual environment where the buyers are directly connected with the manufacturers—all with the click of a mouse.If one were to visit with limited knowledge of international trade and e-commerce, they may find themselves a bit overwhelmed. According to the 2006 Webby Awards, a webpage devoted to honoring sites for excellence on the internet, content should “take a stand, have a voice, a point of view.” The home page of, regretably displays inapplicable sidebar links forbidding the user to immediately access the category or topic they are looking for. They are not clear categories but list “hot products” and shortcuts for customers such as, “gold buyers” and “resources” for buying and selling. Although allows immediate access to categories upon downloading, discomfort may occur for the users when they are immediately asked to search for a specific product from over thirty five different categories. If one were to select a sidebar link they would be directed to a new page with a small navigational bar titled “Search Gold Suppliers” on the upper half of the screen. Directly under the search bar, lie two overwhelming columns of industries where one may “browse by category.” This often results in inexperienced users shying away from downloading what could have been very useful information. offers an infinite amount of products from Chinese manufacturers, however the abundance of products and information is at the expense of simplicity and user disorientation. Web Style Guide, a site aimed at creating efficient websites that convey relevant and organized information state that the most successful e-commerce websites “kept things technically simple and basic. Amazon, eBay, Yahoo!, and other successful Web commerce sites use remarkably spare page design schemes and simple text- or tab-based navigation systems.” Four tabs inhere upon the homepage of, “Buy,” “Sell,” “Resources” and “My Alibaba”. The four tabs are basic navigational tools that offer no real depth and insight to the site. If one were to select ‘buy” he would immediately be directed to a page listing over thirty five categories, each with two or three subcategories. Within the new page of “buy,” there are no relevant sidebar links, instead they are advertisements which confuse and flood the user with products and selections.

Deprived of text and graphics on the homepage, which compels users to scroll down and inquire deeper into the site, will be difficult in satisfying and heartening potential customers. However, “a rich set of graphic navigation and interactivity links within your Web pages will pull users' attention down the page, weaning them from the general-purpose browser links and drawing them further into your content.” Deficient graphics, music and sidebar links disincline users from proceeding further into the site and utilizing the efficient recourses has to offer. may overwhelm initial users and create some perplexity in navigating the site, but ‘Innovation’ is where outperforms all enterprises within e-commerce. A feature not implemented by many sites, more specifically international business web pages, a live banner scrolls across the top of the screen allowing users to instantaneously purchase commodities from China such as rice,cameras and steel. This creates specific categories of competitively priced goods which are readily available for shipment, right at the buyer’s fingertips. If a user were to select, “buy 21 inch color TV,” one would be directed to New Tide (Shenzhen) Electronic Co., Ltd’s. profile page where the location and contact information is displayed as well as product specifications, when the product will be available, and shipment quotas.

The Webby Award’s judging process allocates points for a website’s structure and navigation and defines it as the “framework of a site, the organization of content, the prioritization of information, and the method in which you move through the site.” allows the user great prioritization, but when evaluating organization and structure through simplicity and conciseness, is clearly lacking. Upon initial presentation of the site, users may experience difficulty in locating categories because of the classification of products. If one were searching for twenty inch wheels for a vehicle, a popular product often manufactured in China, a user would locate the “automobile” category, and then proceed to the “wheel and tire parts” heading. Once the wheel and tire parts are downloaded, the user is flooded with parts and accessories that range from motorcycle rims to commercial tractor tires to glowing tire valves. A great selection of tire parts and accessories though has no category to search further, such as “rims or “wheels.” When attempting to narrow down the product results, a user may use the search bar located to the left of the screen. When used to search for “rims,” a wide product category came up once again, forcing the users to search through many irrelevant parts just to locate what they were looking for.

Although in the practice of manufacturing, prices are generally open to negotiation. Sale prices can be extremely beneficial to a dabbling consumer. If one were able to get a price range of a product, the outcome of a feasibility analysis can be quickly determined without lengthy discussions with the manufacturer. Prices will also captivate browsing customers looking specifically to capture a distinct segment within an industry.

As stated by Web Style Guide, the overall experience should "encompasses content, structure and navigation, visual design, functionality, and interactivity, but it also includes the intangibles that make one stay or leave." The overall experience and ease of use makes the ideal web site for individuals associated with the foreign trade industry. Furthermore,'s vast resources make it a necessary tool for the industry professional. finally bridges the gap between buyers and sellers overseas, a gap that has long been considered to be an inevitable aspect of conducting international business. Aside from the initial information overload on the homepage, and below benchmark structure, the ability to bridge buyers and sellers with a few clicks of a mouse and virtually no middleman is a novel idea, and a concept has executed well.

Monday, September 25, 2006

Issues with China's Recent Success: Comments on Other Blogs

This week, instead of writing an entry on entrepreneurship pertaining to international business I have decided to post my thoughts on other blogs relating to China. There are many situations surrounding China’s rapid development which should be discussed and explored.

On the highly acclaimed blog by PSD (Private Sector Development) I have taken particular interest in an entry titled, “CSR stirrings in the Middle Kingdom.” This blog post deals mainly with Chinese manufacturers and the excessive damage manufacturing is doing on their environment.

I have also viewed an entry on a PSD blog, “Private sector public goods” which recognizes the large market the private sector of China has become. Many resources which previously had been used to manufacture and export goods are now being directed toward the private sector. The issue up for debate being should the Chinese Government aid private business in areas that are not fully sufficient yet?

"CSR Stirrings in the Middle Knigdom"

My thoughts:

Uniform Manufacturing Regulations Will Deter Externalities from Pollution

It is nice to finally see officials such as Victor Fung, chairman of the Greater Pearl River Delta Business Council embracing policies that put pressure on Chinese manufacturers to practice environmentally responsible operations. However in a society driven by wealth and affluence this may be a difficult task, unless the Chinese Government steps in and creates mandatory regulations for all producers.

It is hard to imagine these Chinese companies along the Pearl River Delta relinquishing their competitive advantage within the industry. Adhering to such regulations would require costly upgrades which would unfortunately increase the cost of production. If another company were to continue their fabrication process the advantage would now belong to their opponent. Although big investors can threaten to revoke contracts with large polluting manufacturers, their bottom line is without doubt their first priority. Without Government enforcement of this timely issue there is no real motivation within the Chinese companies to increase their costs and lower their margins to reduce pollution.

“Private Sector Public Goods”
My thoughts:

Government Interference will be a Step Back for China’s Free Market

Finding the correct balance between government involvement and privatization is a long standing debate throughout the history of business and economics. A free market economy will effectively allow China to correct problems which interfere with consumers’ demands. China’s private sector will benefit immensely through the free markets ability to recognize growing target markets.

The Chinese consumers have demanded that the private sector begin to pay closer attention to their wants and needs and this issue has never been more evident than in Visa International's triple digit growth. This rapid growth has been achieved by catering to Chinese citizens and offering low cost payments for its financial services. Amul diary’s distribution and marketing system would have never come into existence if it were not for the private sector recognizing a consumer demand existed between dairy producers and the urban market.

As for the female entrepreneur’s making textiles in India, if a demand exists for their product, companies will interfere and eliminate the restrictions the infrastructure now imposes. The private sector of China must realize that businesses are most efficient when not under Government regulation. China’s privatization of business has soared under a new free market economy; it would be a shame to involve their Government for problems which will ultimately be worked out through basic supply and demand.

Tuesday, September 12, 2006

Investors Keep China's Development on the RIse; They May Soon See Their Boom Become a Bust

With China on top as the leader in foreign investment it is beginning to cast major doubts about it's instant economical boom. According to a study released Wednesday, Asian countries attracted $177 billion of foreign direct investment and China receiving 45% of that with $79.1 billion. Economists expect China to remain in the forefront of foreign investment despite many fears that China's economic boom is at the expense of others. With Asian economic development at astronomical rates many fear rising oil prices are directly related to China's rapid growth. According to National Geographic Online, China's oil consumption grew at 11% and is now the second largest oil consumer behind the United States. Economic theory states that with an increase in demand buyers will bid the price of a supply to a new price point. Increased prices of oil are currently set at a point accommodating China's demand. With growth on the rise the prices for oil and other resources are destined to increase concurrently with China’s maturation. During the 1980's China's private automobile ownership was virtually 0, by 2003 the total was estimated at 14 million. "The potential number of Chinese people who could become consumers in the future is enormous," stated Lisa Mastney the project leader of Vital Signs 2005, leaving many to wonder exactly what impact the constant expansion will have on the environment, resources and foreign investment. The long term externalities are unknown but many feel that China's economic boom will soon bust leaving investors such as Stephen Wynn and Sheldon Adelson with billions on the table. China's infrastructure is not sufficient enough to handle the migration to urban areas resulting in complications with sanitation, land availability, resources and pollution. According to National

Geographic Online “Large cities, including Beijing, are smothered in smog. Old and weak people are often warned to stay indoors. Between 2001 and 2020 almost 600,000 people in China are expected to suffer premature death every year due to urban air pollution.” With China leading the world in foreign investment and expecting to attract 80 billion in 2010 investors seem to be engaging war upon themselves through competition for land and resources. China may never see it's 80 billion in 2010 and could soon drop off the list of foreign investment due to the inability to handle such an influx of cash flow, "Public health, social stability, and continued economic growth are all at risk as China continues to pollute its way to prosperity."

Tuesday, September 05, 2006

Wynn Hotels: Owner Believes the Company's Future is in Asia

Yesterday hotelier Stephen Wynn opened his second Wynn Casino in Macau China, reinforcing investors, developers and tourists’ beliefs that Macau will soon oust Vegas as the entertainment and gaming capital of the world.

Since the early seventies Wynn, has been on the forefront of Las Vegas development, transforming it from a city plagued by prostitution, drugs and gaming into a glamorous city of lights and excessiveness. Wynn initially began his career in hotels as an investor in the Golden Nugget; he then revamped it into a destination among the most popular in the mid-seventies to late eighties. He lost ownership in the Golden Nugget through a deal with MGM Mirage and then financed the Bellagio with a highly controversial method in finance, junk bonds. Now the Bellagio is a landmark in Las Vegas, setting the new standard in a city that drew 38.5 million tourists and 6 billion in revenue last year.

Wynn quickly realized the potential for the Wynn Macau after a casino monopoly was relinquished from Stanly Ho. The Chinese government wanted the strip of Macau to become more "Vegas-esque" as opposed to the drugs, prostitution and violence that have plagued the streets of Macau in the past. Sheldon Adelson, Wynn's number one competitor in Las Vegas has recently opened, Sands Macau to unparalleled success, recovering his initial investment in one. This success has opened Wynn's eyes to the emerging market in Macau. With China’s economy growing exponentially, many are looking at Macau as a place where entertainment is a viable market. At the opening of the Wynn Macau, Wynn stated that he believed the future of his Wynn hotels existed primarily in Asia and the “The speed of development is dizzying. The population it seeks to serve is expanding.” With Stanley Ho now in the backseat, Wynn is attempting to capture a large market share before the market becomes too saturated. Wynn also gave an insight into the potential of conducting business in Asia and said the Wynn Resorts would become a Chinese company in the next eight to nine years and is already employing one third of the company’s employees in China.

When asked about their competitve advantage over Sheldon Adelson, Wynn simply stated that the Wynn looks to set itself apart not on sheer size but the quality of the resort, “We never wanted to be the biggest we only enjoy being the best.”