FEI Weekly

September 16, 2019

Dead unicorns, managing a suck up and lessons learned from GE

That Unicorn Isn't Breathing

Dealbook

WeWork’s troubled IPO may be the beginning of the end for high flying, highly valued tech companies going public with a big payday. Investors had grown wary of the young, unprofitable businesses and WeWork is the latest example of how investors have soured on the so-called unicorns — businesses funded by venture capital firms that are valued at $1 billion or more.

Yeah, Whatever. You’re Great

Harvard Business Review

There will always be team members who want to make it into your inner circle, and sometimes a subordinate can be singularly focused on pleasing you and gaining your favor. They are focused on a misguided attempt to protect their self-image and their job status, while at the same time neglecting their real work and creating friction with their peers.

Apple, Goldman Spar Over Accounting

Reuters

A Goldman Sachs analyst criticized Apple’s accounting methods for the tech giant’s new TV+ product, saying in a research note that Apple was likely to treat the accounting for its new TV+ subscriptions as a discounted bundle of a free service paired with a hardware purchase. Goldman said may result in lower gross margins and profits, with Apple shooting back.

What Can Be Learned From GE’s Troubles?

Chicago Booth Review

GE’s great mistake was to fail to plan for the “end of history”—what happens when the golden goose stops laying. The story is worth revisiting not just because it explains the deterioration of a single company, but also holds powerful lessons about corporate strategy. Those lesson include: All growth from any single market or technology will end; if you are successful, many will copy your success; and smart corporate strategies are flexible and nimble.

KPMG Restructuring Restructuring

City AM

Senior partners in KPMG’s London-based restructuring division received a 25 per cent pay rise as the accountancy giant tries to prevent a potential break-up. The Big Four accountancy firm has been holding talks about separating its turnaround business from its core audit and consultancy divisions The restructuring division has about 20 partners, and was responsible for about five per cent of KPMG’s £2.3bn UK revenue in 2018.