Cheating or the way to do business?...

‘”We are always shown best examples of a successful entrepreneurs and look at their case studies and reasons for success. With this presentation on Mr Mavrodi I wanted to go outside the box and present you an entrepreneurial story that was successful but not really legal. From Mr Mavrodiy’s case we can see all different theory applications that we cover: market analyzes, competition analysis, business model and so on. We also see that in the beginning of his life as an entrepreneur he faced a lot of difficulties but found the way to the top. This case also shows us that things in business not always go smooth as it is presented in books. You will need to face different occasions and decide if you need to bribe, get away with something using your contacts or eliminate somebody by other means. Nothing personal, just business, as they say. What is most important, you need to work according to your personal code of ethics. Different backgrounds, different interests and different ways of doing business. ”

Profile:

Sergei Mavrodi was born in 1955 in Moscow, USSR. He was an Entrepreneur, Russian businessman and financier; the founder of the financial pyramid МММ. Everybody in Russia knows about him. Some people call him a financial genius, some people call him a criminal and there are thousands who committed suicide because of him. The founder of the financial pyramid MMM Sergei Mavrodi January 25 2011 launched his new project "MMM-2011," which in his words, can bring participants from 20 to 30% profit per month.

MMM company:

The company was established in 1989 and was called MMM. Initially, the company imported computers and office equipment. MMM created its successful Ponzi scheme in 1994. The company started attracting money from private investors, promising annual returns of up to one thousand percent. It is unclear whether a Ponzi scheme was Mavrodi's initial intention, inasmuch as such extravagant returns might have been possible during the Russian hyperinflation in such commerce as import-export.

In February 1994, the company reported dividends of 1,000%, and started an aggressive TV ad campaign. Since the shares were not quoted on any stock exchange and the company itself determined the share price, it maintained a steady price growth of thousands of percent annually, leading the public to believe its shares were a safe and profitable investment.

At its peak the company was taking in more than 100 billion rubles (about 50 million USD) each day from the sale of its shares to the public. Thus, the cash flow turnover at the MMM central office in Moscow was so high that it could not be estimated. The management started to count money in rooms (1 room of money, 2 rooms of money, 3 rooms of money and etc.).

In August 1994 Sergei Mavrodi was arrested for tax evasion. However, he was soon elected to the Russian State Duma, with the support of the "deceived investors". He argued that the government, not MMM, was responsible for people losing their money, and promised to initiate a pay-back program. The amount ultimately paid back was minuscule compared to the amount owed. 

In October 1995, the Duma cancelled Mavrodi's right to immunity as a deputy. In 1996, he tried to run for Russia's presidency, but most of the signatures he received were rejected. MMM declared bankruptcy on September 22, 1997.

It was believed that Sergei Mavrodi left Russia and moved to the United States. With the help of a distant relative he started Stock Generation Ltd., another pyramid scheme based around trading non-existent companies' stocks in a form of the "stock exchange game" on the company's site, stockgeneration.com. Despite a bold-letter warning on the main page that the site was not a real stock exchange, between 20,000 and 275,000 people, according to various estimates, fell for the promised 200% returns and lost their money. According to U.S. Securities and Exchange Commission, losses of victims were at least USD 5.5 million.

The MMM scandal led to increased regulation of the Russian stock market, but the legacy of the fraud led many to become extremely suspicious of any joint stock companies.

Let's see what the new MMM-2011 will bring this time...

 by Pavels Zascitnikovs BBA4 

Dynamic Balance for Entrepreneurs and Leaders with… Ms Zanker!

     Most of us already heard the story of success of Ms Zanker. But do we really know what was behind the story and how her vision change over time? Let us enjoy a short interview with our master of Entrepreneurship!

http://www.silkezanker.com/en/start

      

    What was the major reason that encouraged you to become an entrepreneur?

It  was a combination of seeing a need and also knowing what I am passionate about. I love innovation, I love starting new things. When one day I realized that my values are not going the same direction as of the company I was working for, I asked myself: 

.So why not to go on my own? That is how it started

     Can you see some differences in your life after you have settled your own company?

    It definitely does support my personal life and even helped me to shape my environment. I love being hybrid. Normally, there is always division between business and spirituality. But it happened that I am good at both worlds, I am able to combine these two extremes. So for me it is my freedom. I also love that I am lecturing entrepreneurship. It wouldn't be the same if I didn't combine teaching with my entrepreneurial experience. Having my own company, helping me in my teaching job, and being in HIM, teaches me a lot of my own company.  

     How long did it take you from the moment you had an idea of what you want to do and until the real company came out?

     I would say a good year. I remember I started from a small apartment with my friend in US. You should imagine our excitement when you get to the first client and when the first money are coming in... And normally what happens with most of start-ups, after the first round of the clients, the business suddenly goes down, and this is a very challenging moment. 

    What is to be successful for you?

    For me to be successful is to have a vision, values and to know what I stand for, and living a life that is aligned with that. And also to see that I am making the difference to other people and our world a better place. One can say, it is knowing the purpose of your life and living your purpose. I am a teacher in my heart. I found my place to be in and to make the difference for others through teaching. And also being successful involves all areas of my life: loving relationships, my friends, my business and also my health. It is all a good balanced combination. At the end, it is simply being a happy person.  

    What is the biggest motivation, which keeps you developing what you have started?

I   really want to reach as many people as I can, by helping them, guiding them, inspiring them... You can be successful, but you can have certain values that make the world a better place and by looking after yourself and others. You can be an entrepreneur, you can be entrepreneurial within a company, but it is about those opportunities and making the most out of them. Firstly, I want that for my self, and then I want to inspire people around me through my experience and knowledge. 

    How do you normally combine HIM and your own business?

It  is very important to have a certain structure and dedication to everything you are doing. When I am in HIM, I am 100% here. And when I am with my clients, I am with them fully. And I do that with everything: with friends and even with family.

    Where does your inspiration come from?

     From the people I surround myself with. I am very selective with that. There are people around me who are very positive, joyful, lighthearted people who are also connected with something bigger than just themselves. I also spend a lot of time with nature. Nature is also very inspiring to me and it teaches a lot. Role models bring a lot of inspiration as well. Those are people that I admire the way they do their business and the way they live their lives. And every day I make sure that I am happy what I am doing, that I am doing the right thing and that my health doesn't suffer from my daily life activities. When I do so, I feel very much open and trust to my intuition and this is the biggest inspiration.   

Thank you very much, Ms Zanker! Hopefully everyone can get inspired by the passion from your words! 

How our talents may help us in settling our directions

I believe by this time everyone already had a thought of creating something by themselves, opening up their own business etc. However, when it comes to the idea of a new venture itself, we start questioning ourselves: What am I good at? What do I actually want to do?... Seems to be like high school feeling when you have to decide what high education you should choose for reaching your "dream-job". What is actually this dream-job all about? Well, definitely some people have in their minds a beautiful picture what is their dream-job. What about the rest? Do we all really find what we like or what brings to us a lot of inspiration and joy?


In my point of view we just forgot that everyone has a talent. More likely a lot of talents rather than none. When you know what you are good at, what you are really enjoying, that can always grow into a beautiful blossoming flower. We always need a good start, good basement, then we will definitely see the right direction to move forward.


If those questions that are mentioned above somehow touched you and you didn't find yet what you are good at the most, here is some tips how to find your hidden talent.


1. Do what you love to do... As simply as it is))) The best way to discover a hidden talent is to think about what you love to do. What you are good at you always enjoy the most. That joy can spread around and bring out something new from us!


2. Break the walls of your comfort zone. Try completely new things for yourself. Go for new explorations and find the joy where it was not so good for you before. Break out of your comfort zone and you might be surprised what gets waked up in you.


3. Let's go back to the childhood;) We used to enjoy life from different perspective. Start by reflecting on your childhood and remembering what activities TRULY gave you joy and satisfaction. It is important to remember what you imagined when you were alone, and therefore un-influenced by other people, and under the age of seven when the "inner self" is more pronounced than the conscious mind and conscious ego.


4. Find what is easiest for you. Sometimes, I think our hidden talents aren’t really hidden – more like repressed or discounted and ignored. Be especially aware of what other people “see” in you that you may or may not validate or give much attention to yourself. We all think that the things we are good at
are easy, so we tend to discount their value.

5. Fix your frustration. Not the easiest thing to do though... But one of the most important! There is nothing better than having sunshine on "your" sky without interruption of clouds...)))

6. Learn how to simply enjoy the moment. You might think how it is connected to your talent discovery or entrepreneurial success... Well, our life is composed of present moments. You will never find anything tomorrow unless you will listen to yourself TODAY.  

"Our true entrepreneurial talents may be divined by the emotion sparked by engagement. Listen to your heartbeat, when it speeds our intent becomes fueled by passion which enables action. Action is the key to realizing our identified entrepreneurial talents. If the spark isn’t there, you won’t have the stamina to withstand the inevitable setbacks." 

Brogan Keane of Fuego Nation, Inc. 

Entrepreneurship in Russia

Right now being back to Russia for summer holidays I was one more time persuaded that hospitality teaches us to see the world without boarders. Just only for this simple reason hospitality deserves such a great respect. Every country has its own specific character. Some of them are more plesant to one group of people, some are less. Those are the differences. But every single country was formed of people and I believe there is no such a country on Earth where are people with no happiness, creativity and success with its complex meaning. From this statement I came up with the question for myself: If one can be successful in one specific country, would it be the same for him or her in another location, where everything from the first look seems to be so different. I believe that this is the moment where the full meaning of entreprenuership enters the story. Entrepreneur is a person with very diverse talents. It is not only unlimited inspiration, creativity, persistence, passion and potential power to realize those ideas. It also comprises flexibility, positive attitude towards world's diversity, ability to change and adapt rapidly. Probably it sounds too much to combine all those qualities just only for one person. However looking at and closely communicating with successful people you understand that they somehow found all those talents inside of them and grew together with their businesses. To answer the question of being successful independently of the situation and in which country you are you would find by yourself. I would just love to share with you some examples of successful entrepreneurs from different countries in the world and how they achieved it. Probably it will help us to understand that life is always so full of opportunities and we should never give up our dreams.

To begin with, I have interviewed one of the youngest and successful entrepreneurs in my city Ufa: Leysan and Michail Kumpan. Today they are the owners of the chain of coffee houses "Milly" in Ufa, they are the biggest coffee suppliers and recently they even started to grind and roast various kinds of coffee beans on their own small factory. Everything started in 1999 when in Russia, especially in a city that is 1000 km away from the capital there were very few people who did appreciate good coffee. Instead due to our local traditions and muslim influence, people would rather drink black tea with milk with honey along with a substantial snacks typical for our region. How could they become successful and found great appreciation among our people I would leave to explain to Leysan by herself.

1. What was the inspirational factor to start with such unusual business idea for that time?
When we first tried Italian coffee, there was no doubt that we fell in love with it. Bringing to our city something different and so much beloved in Europe has laid as a foundation to our inspirational ideas.

2. Was it that hard to begin with your new career?  
When you are so full of ambitions and so much inspired you believe you can do anything you wish. Hence it wasn't hard to begin with, but it was hard when the business came to its serious stage of growth with certain requirements of a good business plan and of course good knowledge of all needed documentation work.

3. When you realized that your dream can be transformed into something real, what was your next step? Did you have any plan or it was more just a matter of luck?
I was learning in the process itself. All mistakes taught me something as well. And of course without loving what we were doing we wouldn't learn anything... As for me, I love coffee, but I drink only espresso. I love the feeling of simple pause and just few minutes away from constant rush. In addition the taste of espresso never leaves me untouched. This is where my inspiration was coming from. Now I always try to keep myself up to date, I read a lot of books from finance to marketing, we try to go to different trainings in Moscow and of course life experience is always the most important. This is the way we learned to build our business.

4. Can you say that all ideas that were at the very beginning is exactly what you have today?
At the very beginning we wanted just a small cafe where the whole family and friends could have a cup of coffee and some yammy snacks. While we were in the process, the original idea grew into something bigger as well.

5. To keep the business successful you should be always inspired to grow by yourself. Do you still have some further ideas and inspiration to build something more? 
We are planning to build more 2 or 3 coffee houses, we want to accomplish our coffee production factory and our goal is to increase coffee supply from 3 tons a month to 10 tons a month. And of course we also understand that every level has its own lessons to overcome. The bigger you grow, the bigger competition and challenges come.

6. Business in Russia. Very interesting topic for a lot foreigners and unfortunately very hard to understand for most of people who do not live here and speak our language. How would you describe the growth of your business in our country?
I would say as in every country, especially if it is so huge as Russia, the are always differences between regions. As I have already mentioned, it was very hard to bring coffee appreciation to our city. People got used to traditional tea at home and were very careful to new trends from Europe. I can say there was the same situation for our neighbors in Kazan. However, for instance in Ekaterinburg, by the time we just started to gain trust from our public, there was already very high purhasing power with the predominance of big western chains.
I can also say that we have suffered a lot from the Financial crisis in 2008. There was not much governmental support with very high taxes and complicated private sector documentation system. However, today our country is trying to become very open minded and the government understands the importance of strong foreign relationships. We personally would be delighted to work with foreign partners and the whole country is trying to minimize inconviniences for the foreign investors.

7. What do you think, did your business played a vital role to your own personal growth?
I have learned a very important lesson for myself: there is no division between your personal life and your work. It is all our LIFE. 

The Address Hotels and Resorts

By Niina Johanna Lemettilä

The Address Hotels and Resorts is a hotel group belonging to the Emaar Hospitality Group, which was founded in May 2008 as a part of Emaar Properties PJSC’s vast portfolio. Emaar Properties PJSC is a Dubai based real estate developer with a global presence in multiple industries such as hospitality, leisure, retail, healthcare and education. The group’s aim is to become a global provider of premier lifestyle and its project certainly supports this goal. The Address Hotels and Resorts include serviced residences, golf resorts, polo and equestrian cub, recreation/fitness clubs and yacht club and a marina. The world’s tallest tower Burj Khalifa together with the Armani Hotel are also a part of the group’s hotel portfolio.  

Burj Khalifa

The Address Hotels and Resorts’ aim is to become a globally recognized luxury lifestyle brand within 10 years from its founding and so far it is moving in a good speed to achieve the goal. At the moment The Address has five properties in Dubai: The Address Downtown Dubai, The Address Dubai Mall, The Address Dubai Marina, The Address Montgomerie Dubai and The Palace Old Town (managed by The Address), and it has eight properties under design and development. One of them, the first in Europe, The Address Domaine le Lavagnac, is located in South East France.

Design is one of the most important parts of The Address hotels’ image. Each property is unique. The design supports the brand’s positioning as a modern, young and trendy hotel group targeting the “social CEO” segment in the market. The Address Hotels and Resorts was founded as a gap in the market was noticed. The hotels offer an alternative, yet luxury, experience by following a “one size fits one” strategy and concentrating on benefits rather than features. An example of the uniqueness of The Address will be the name by which the receptionists are called at the property - the lifestyle managers. The hotels really strive to provide the guests with personalized service that meets the guests’ needs.

The “one size fits one” strategy does not only apply to the guests but also to the employees. The hotels are very particular in finding personnel that will enjoy their work, be committed and motivated. Management trainings for instance are tailored according to the trainee’s prior experiences and cover most of the departments in the hotel.

At the moment The Address Hotels and Resorts is mainly know in Dubai and the region but looking at the impressive expansion plans that include France, Morocco, England, China, Egypt and the USA, to mention few, I’m sure they will soon be globally acknowledged as a luxury lifestyle brand.

To learn more about the company please follow the link below:

http://www.theaddress.com/en

Entre-Leaks team is looking forward to getting comments from you!

Entre-Leaks Promo Video "Briefly about Entrepreneurship"

"Briefly about Entrepreneurship"

In today's fast developing and ever changing world so many opinions exist about what entrepreneurship is. We have made an attempt to summarize them all by asking students and professors to share their thoughts about it. 

And what do you think?

We hope to hear your opinion.  Don't be shy, leave a reply! :)

Grand Heritage Doha Hotel and Spa

The Grand Heritage Hotel Group

“Welcome to a World of Tailor Made Services”

By Igor Pak

I would like to start by introducing the newcomers to IRF (International Recruitment Forum in Caux) this semester- The Grand Heritage Hotel Group. I had great opportunity assisting Mr. Pierre-Marie Vasseur- the Pre-Opening Manager of Grand Heritage Doha Hotel and Spa and Ms. Sophie Thiry - the Manager of Grand Heritage in Italy, during the first day at IRF in Caux.

Let me introduce briefly for your evidence The Grand Heritage Hotel Group.  Grand Heritage was found in 1989 by John. W. Cullen, who aimed to focus on historic properties that suffered from lack of branding and boutique expertise.  Today Grand Heritage owns and operates large number of Hotels and Resorts across North America and Mexico. Grand Heritage’s future plan is expanding. Due to this plan, Grand Heritage is currently developing In Western Europe, US, Mexico, and Caribbean, Bermuda and finally Middle East.  Their first international hotel - Grand Heritage Doha Hotel and Spa with 137 rooms which is located in the heart of Doha, opened this month and represents the pure essence of living. We can be proud to announce that some of our students are the luckiest to experience this event in Doha.

Hospitality moving towards Entrepreneurship

The core management of Grand Heritage Hotel Group is based on flexibility and privacy-mentions Mr. Pierre-Marie. You may question yourself how does it relate to the Entrepreneurship?!

-Easily!

Grand Heritage positions its spirit as an entrepreneurial one. The entrepreneurial spirit possesses direct influence throughout all departments in hotels Grand Heritage operates.  So how can it be seen in reality? -  The entrepreneurial way of leading for Grand Heritage is non-traditional and de-centralized- the best example of it would be the relationships with employees.  Mr. Pierre-Marie the Pre-Opening Manager of Grand Heritage Doha Hotel and Spa states that it is all about better conditions for their employees and special treatment. Grand Heritage tries their best to meet all needs and expectations of their employees by providing high-standard accommodation, meals, transportation, solutions for  visa issues and of course additional benefits. 

Grand Heritage believes in open/free relationships between heads of company and employees, so in order to communicate with heads, employees are not required to have a special permissions form their managers, but they are free to communicate directly.

Grand Heritage finds an importance in providing proper and detailed training for their employees, which means that all employees are properly trained for the chosen positions by group professionals and in addition Grand Heritage outsource pure trainers/professionals in order to give more knowledge to their employees who will represent the spirit of Grand Heritage in future.

Entrepreneurial management of Grand Heritage Hotel Group allows and gives an opportunity to employees to make decisions by themselves, but all decisions should be measurable and appropriate. You will not being held responsible for making your own decision towards your guests and their fulfilled satisfaction.

Gathering all perspectives of entrepreneurial management of Grand Heritage, Mr. Pierre-Marie Vasseur describes this approach in following words: Reactive, Productive, flexible and creative.

It was already announced that The Grand Heritage promises a great variety of new job opportunities due to the new management contract of the second iconic property in Doha, which will be operated by Grand Heritage.  So for those of you, who are interested in Grand Heritage, do not miss your opportunity at future IRFs. You are also able to view all current updates and apply for a job while visiting the website of Grand Heritage, which is www.gtrandheritage.com.

Finally on behalf of Mr. Pierre-Marie Vasseur and Ms. Sophie Thiry, I would like to thank SEG group for proper organization of IRF that made Grand Heritage representatives stay smooth and productive.