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Performance Task  2

1. Persistent

Jack Ma: I didn’t have a rich father, tried three times for university, all failed. I applied for Harvard for ten times, all failed, they don’t even want to see me and for the last time, I went to the teachers college which was considered the third of fourth class of my city. It was so difficult at that time I was so frustrated because I taught in the university, ,my pay was 10 dollars a month. Because I cannot find a good job in 1994, discussed that I’m going to do something called internet and 23 of them I guess that they said “this is a stupid idea we have never heard about internet and you know nothing about computer”. And I never thought I was smart, nobody believed that I could be successful. Because everybody said that “this guy thinks differently, thinks crazily” you know they think about something that would work. I tried to borrow 3000 US dollars from the bank, took me 3 months but I still cannot get it, we talked over 30 or 40 venture capitalists, everybody said “no, forget about it.” A lot of people said “Alibaba is a terrible model”, as I said “I believe it. I think this thing could be big, I never thought you will be that big like today. I believe that something, something is waiting for me there and I have to work hard to prove myself”, that was the tough experience. So we gather 50 000 US dollars form 18 funders, we started. For the first 3 years we do not even have 1 dollar revenue form our business. That’s not easy. “Why it keeps going ahead? Going forward?” Because I received lots of emails of thanks from the costumers they say “this is such a great thing, we cannot pay you. But this thing helped us, if you keep helping us one day you will be successful.” And I believed this, little by little we built up our business, little by little we built up our Ecosystem of the Infrastructure and now after 16 years we have a Alibaba group we have a team or group. (2:14-4-27)

2. Committed

Jack Ma: Being an entrepreneur, you have to do the things before the other people do it. You have to wake up before the other people wake up. You have to be more brave than the others. Use your instinct, everything you do is to the need of your costumer. To everybody, to any person tomorrow is new. Make the move, make the action. (5:42-6:08)

3. Self-confident

Jack Ma: Either work for the others or work for yourself, and I chose the way “work for myself”. Working for myself that mean working for the society, if you really want to work for yourself think about the others, because only when the other people are successful, when the other people are happy, you’ll be successful, you will be happy. (6:49-7:09)

4. Risk-taker

Jack Ma: I think today people worry about the world, about the economy, China economy in the world. I’m very optimistic. When people start to worry, that that is the opportunity is but I worry about the blood testing and she created good thins and great innovations, great company’s happening in the tough times. Lives like the music, you have a up you have a down you have a long you have a short notes. And I like the American movie “life is like a box of chocolate” you never know what you’re going to get. Right? So I’m pretty optimistic, the opportunity in  the future for equality is huge because in the last century the IT is for big companies and the Globalization is for the big companies but now with the technology we can serve those 80% of the companies that never been served. We can serve the 80% of the young people that never been serve. Technology for internet is so cheap, so easy to use. One of the reasons why we grow in Chine e-commerce so fast, much faster than the US because our Infrastructure of Commerce in China was too bad. (7:13-8:28)

5. Goal Setter

Jack Ma: I’m excited about the future. I love the young kids sitting there and talking about their dreams their hopes, because if they have the hope we have the hope. That’s what I believe.  (9:03-9:15)

https://www.youtube.com/watch?v=lYGGpc2mMno

[gwenc4]

Informational Blog

1. The Innovative Theory - Joseph A. Schumpeter argues in "Capitalism, Socialism, and Democracy" that capitalism isn't stationary and always evolving, with new markets and new products entering the sphere. He is perhaps most known for coining the phrase “creative destruction," which describes the method that sees new innovations replacing existing ones that are rendered obsolete over time. Schumpeter proclaims that economics may be a natural self-regulating mechanism when undisturbed by “social and other meddlers.”

He said that theories are based on logic and provide structure for understanding fact. He proceeds to illustrate that there are fundamental principles in the phenomena of money, credit, and entrepreneurial profit that complement his earlier theories of interest and the business cycle. His theory of development assigns the uppermost role to the entrepreneur and innovations introduced by him in the process of economic development. This video shows you how the Innovative Theory really works.

https://www.youtube.com/watch?v=0Hv-sMeNKGQ&t=120s

2. Keynesian Theory - Keynesian theory is a macroeconomic economic theory of total spending in the economy and its effects on output, employment, and inflation. Keynesian economics was developed by the British economist John Maynard Keynes in an attempt to understand the Great Depression. Keynesian economics is considered a "demand-side" theory or shall we say inflation, that focuses on changes in the economy over the short run.

His theory was the first to differentiate the study of economic behavior and markets based on individual incentives from the study of broad national economic aggregate variables and constructs. Based on his theory, Keynes advocated for increased government expenditures and lower taxes to stimulate demand and pull the worldwide economy out of Depression . Subsequently, Keynesian economics was wont to ask the concept that optimal economic performance might be achieved—and economic slumps prevented—by influencing aggregate demand through activist stabilization and economic intervention policies by the government. This video allows you to understand the Keynesian Theory without confusion.

https://www.youtube.com/watch?v=kukKpqd_B2c

3. Alfred Marshall Theory -  Alfred Marshall’s specialty was microeconomics—the study of individual markets and industries, as opposed to the study of the whole economy. In his most vital book, Principles of Economics, Marshall emphasized that the worth and output of an honest are determined by both supply and demand: the 2 curves are like scissor blades that intersect at equilibrium. Modern economists trying to know why the worth of an honest changes still start by trying to find factors which will have shifted demand or supply, an approach they owe to Marshall.

The concept of consumer surplus is another of Marshall’s contributions. He noted that the worth is usually an equivalent for every unit of a commodity that a consumer buys, but the worth to the buyer of every additional unit declines. A consumer will buy units up to the point where the marginal value equals the price. Therefore, on all units previous to the last one, the buyer reaps a benefit by paying but the worth of the great to himself. The size of the benefit equals the difference between the consumer’s value of all these units and the amount paid for the units. This difference is called the consumer surplus, for the surplus value or utility enjoyed by consumers. Marshall also introduced the concept of producer surplus, the quantity the producer is really paid minus the quantity that he would willingly accept. Marshall used these concepts to live the changes in well-being from government policies like taxation. Although economists have refined the measures since Marshall’s time, his basic approach to what is now called welfare economics still stands. The video below explains how the theory works.

https://www.youtube.com/watch?v=oTd0nQeW05U

4. Risk and Uncertainty - bearing Theory -  Frank Hyneman Knight distinguished between risk that can be modeled probabilistically, from uncertainty, for which the probabilities are unknowable. For instance, uncertainty surrounds the implementation of latest strategies, the event of latest products or entry into new markets. Similarly, the positive consequences of acquiring a competitor may have unknowable probabilities. According to the idea , bearing business uncertainty creates profit and therefore the more uncertainty taken on, the more profit are often gained. The relationship between uncertainty and gain could also be linear, or maybe exponential, where there are bigger payoffs on the proper hand side of the chart.

The uncertainty-bearing theory obviously views entrepreneurs as bearers of uncertainty making it a very individualistic theory to start out with. The theory places great emphasis on the entrepreneur’s ability to form decisions under uncertainty. The uncertainty perspective suggests a normative dimension: that entrepreneurs who are willing to require on great uncertainty may deserve windfall profits the rare times they are doing succeed. Entrepreneurs combat uncertainty consistent with their inclinations and abilities—the greater their self-confidence, the more they will combat . Thus, uncertainty bearing may be a capability that's innate or developed and using it in touch uncertainty in an entrepreneurial context may be a normal cost of doing business or "cost of production", where the payoffs are indefinite, future, and supported hope and theories. In this video, it explains the how the theory works.

https://www.youtube.com/watch?v=vAzj_CBgSPk

5. Kirzner’s Learning-Alertness Theory - According to Kirzner, the profits entrepreneurs receive from entrepreneurship are their reward for their tolerance of uncertainty as they eliminate arbitrage opportunities (the opportunity to sell the same product at a higher price than he or she bought it) created by the ignorance or incompetence of incumbent firms. Entrepreneurs need to be alert in order to be able to perceive economic opportunities that others cannot yet see, such as the need for new goods or services. Opportunities are seen to exist only because of the ignorance of incumbents otherwise they would already be exploited. When incumbents don't know key information or don't even realize what they are doing not know, then opportunities for entrepreneurship are born.

Ignorance begets errors that can be corrected by the actions of entrepreneurs. The entrepreneur acts under uncertainty and can't know if his or her action will yield a profit until after the action has been taken. Thus, entrepreneurs must accept they'll lose money (or that of their investors) from their actions if they end up to be incorrect. Kirzner believes that entrepreneurial alertness cannot be taught. However, this belief has been critiqued because marketing research and customer discovery can clearly help to acknowledge certain sorts of opportunities. But a rebuttal could be that knowing that marketing research was needed within the first place is entrepreneurial. Kirzner doesn't view the economic actions like buying resources or creating new products as entrepreneurial. Rather it's only the act of alertness that's entrepreneurial. The video below explains the theory.

https://www.youtube.com/watch?v=Bu-i1q8LVvA