International MBA and business news roundup

Faster than expected growth in German business morale

Munich-based think tank Ifo’s business climate index rose from 104.4 in April to 105.7 in May. This rise is significantly higher than the median 104.5 predicted by 40 economists polled by Reuters, and even exceeds the highest prediction of 105.5. The announcement has sent the euro higher against the dollar and saw German bund futures pare gains, reports Reuters. The index is based on a monthly survey of 7,000 firms, which asks them to rate their current business situation and compare their six-month business outlook with the previous month’s. The highest ever score was 109.5, while the lowest was 82.2. 

German business schools at a glance >

Bitcoin network more powerful than world’s 500 most powerful supercomputers

The peer-to-peer network which maintains digital currency Bitcoin far exceeds the world’s 500 most powerful computers in terms of processing power, reports CNN. The figure for the latter stands at 162 petaflops, while the Bitcoin network is well in excess of 1,000 petaflops at any given moment. Bitcoin is a digital currency, created in 2008 by an anonymous hacker. They are created by an algorithm designed to release 21 million bitcoins periodically until 2140. To date, 11 million of the total of 21 million which will be created have been released. In April this year a single bitcoin was worth US$266, though this has since fallen to US$122.

Contraction in China factory activity increases fear of global slowdown

A decline in new orders in China’s manufacturing sector has seen  HSBC’s ‘flash’ index of purchasing managers’ sentiment fall to 49.6 as compared to 50.4 at the end of April (a score below 50 signals contraction). This has led to fears that global growth may be slowing, with China’s manufacturing  sector generally considered to be a good barometer. China’s growth reached a 13-year low in 2012, but first quarter growth of 7.7% still exceeds the government’s target of 7.5% for the year, reports Reuters.

MBA demand on the rise in China >

Extroverts lose status, while neurotics gain it, finds paper

Professors Corine Bendersky of UCLA Anderson School of Management and Naha Parikh Shah of Rutgers Business School have published a paper which has found that, contrary to what we might expect, over time extroverts fall in status, while neurotics rise. Studies conducted for ‘The Downfall of Extroverts and the Rise of Neurotics: The Dynamic Process of Status Allocation in Task Groups’ showed that even when contributions to group activity were controlled to ensure equality, extroverts’ contributions put under particular scrutiny and viewed with a degree of skepticism. This is despite the fact that expectations of extroverts were not particularly higher than those for others. Shah discusses the report with PR Newswire.

Commit to your first MBA career, says Darden dean

In his commencement speech to Darden School of Business’ graduating Global Executive MBA cohort, the school’s dean, Robert F. Bruner, urged the newly qualified MBAs to make a commitment to their first position. The “urban myth” that an MBA should stay in a first job for only 18 months is misguided he suggested, as this amount of time leaves one no wiser than the day after graduation, in his opinion. Five years is time period he suggested it takes to really make an impact, citing examples of successful Darden graduates who could be said to have adhered to his refrain of, “hang on, hang in, and make a difference”. The speech was reproduced in full on his blog.