OPINION

Instagram – One of the most popular photo sharing app for smartphones, that enables its users to share their photos on Facebook, Twitter, Tumblr, Flickr or via email, too. Instagram was launched by Kevin Systrom and Mike Krieger in October 2010. On April 12, 2012, Facebook purchased Instagram, along with its 13 employees, for approximately $1 billion in cash and stock. Tumblr – Yahoo’s newest toy, the social media and blogging network was founded by David Karp and Marco Arment in February 2007, hosts over 108 million blogs. Tumblr was just recently sold to Yahoo! for $1.1 billion. David Karp will remain CEO. Pinterest – A photo-sharing social networking site, Pinterest was founded by Ben Silbermann, Paul Sciarra and Evan Sharp. A tool to create online bulletin boards and share it with others based on various themes such as travel, decorating, or sports. You can also browse others pinboard, ‘re-pin’ images to your own collections and/or ‘like’ photos. With no revenue, Pinterest was valued at $2.5 billion, and is now predicted to be worth roughly $7.7 billion by Debra Borchardt at Forbes. Square – Mobile payment platform Square was founded by Jack Dorsey (creator of Twitter) and Jim McKelvey, launched its first app and service in 2010, which include mobile phone and tablet processing for merchants and mobile wallet applications for consumers, is currently operating in the United States and Canada. Investors like Starbucks and Citi Ventures are throwing millions into the growth of Square Inc., the credit card processing company, valuing the company over $3 billion. YouTube – a video-sharing website founded by Chad Hurley, Steve Chen and Jawed Karim in 2005, who were all early employees of PayPal, Google bought YouTube for $1.65 billion in November 2006. Launched eight years ago with a single video. Now, 100 hours of video are uploaded per minute. Twitter – Micro-blogging site Twitter was created in March 2006 by Jack Dorsey, hit over 500 million users in 2012 and is recently estimated to be valued around $10 billion. Users to send and read text-based messages of up to 140 characters, known as “tweets”. Amazon.com – Founded by Jeffrey Bezos in July 1994, Amazon.com is the world’s largest electronic commerce retailer, employing more than 43,000 people in the United States, and its net worth stands at about $90 billion. SurveyMonkey – free online survey software and questionnaire tool was founded by Ryan Finley in 1999. With 14 million users and over 200 employees, SurveyMonkey is currently valued at $1.35 billion. It has offices in Palo Alto, California, Portland, Oregon, Seattle, Washington, Lisbon, São Paulo, and Luxembourg. Groupon – Deal-of-the-day website Groupon rejected a $6 billion acquisition offer from Google in 2010, and today, the company is valued at roughly $3 billion. Groupon  generated about $2.5 billion of revenue last year. Groupon was founded by Andrew Mason, Eric Lefkofsky and Ted Leonsis currently serve as the company’s interim co-CEOs. Spotify – Music-streaming service Spotify raised $100 million from Russian investment firm DST Global and venture-capital firm Kleiner Perkins Caufield & Byers. Its global user base, spread across 28 countries, is currently around the 24 million mark, with six million forking out for a subscription, the company was valued at a cool $1 billion. Now you tell us: Are you excited about these 10 Billion Dollars Tech start-ups? Let us know your thoughts in the comments. DON’T MISS: Hit List Top Most Powerful Women in Social Media 2013 Do you think Snapchat will be the next big thing like Instagram and Pinterest? London schoolboy sold his smartphone news app Summly for $30 million to Yahoo Is Facebook Considering On Incorporating Hashtags Functionality? Is it a good idea that Instagram is joining its data to Facebook’s? Interview with Mr. Michał Zaleski, Mayor of Torun, Poland List Of Business Savvy Celebrity Entrepreneurs Creating Thriving Enterprises How a marketing genius like Randi Zuckerberg was entangled in a privacy mess? Why Vine, six-second Video-sharing app by Twitter no longer accessible to everyone? List of the most frequently visited sites in the United States (U.S) Foursquare new privacy policy changes can generate a firestorm of controversy How many recruiters adopting social media into their recruitment process [Social Recruiting INFOGRAPHIC 2013]?

Amid cost-cutting and conformity, corporate centres may end up merely coordinating the group’s businesses to meet the demands of global change. There is a likelihood they are not necessarily adding value although perceived to be.  This begs the question: Is your corporate centre a “value creator” or a “value destroyer”? Nurturing and investing in capabilities that create value is something MNCs should consider if they want to stay ahead of the competition, says Dr Andreas Raharso, Director of Hay Group’s Global R&D Centre.  This reinforces apart from weighing control and compliance, the role of the corporate centre is more important today for MNCs than before. Some 59% of Fortune 500 companies are based in Singapore and Hay Group research shows that 34 of the top Fortune 500 companies accounted for approximately 20% (US$2.164 trillion) of the total revenue of all Fortune 500 companies combined in 2012. The key observation here is that with developed economies like Singapore and Hong Kong featuring over 5000 regional headquarters between them, Asian hubs are becoming increasingly popular choices for American and European MNCs to locate their regional headquarters. In this way, it is vital for them to learn how to control the foreign operations in the East from across the ocean in their domicile country. Globalisation pressures, rapidly developing emerging markets, and technological advances require multinational corporations (MNCs) to be agile and flexible like a start-up firm to cater to the local demand while maintaining global growth. The dangers of failing to be locally responsive are far too well known by C-suite executives and are observed around the world fairly often. Let us take the case of the Germany-based Cash & Carry retail giant Metro’s attempt to enter the lucrative Indian market. In a report by Business Standard, the company has struggled to set a strong foothold in India since 2003 with only fifteen retail outlets whereas Walmart, a relative latecomer, currently owns twenty outlets till date since launching in India in 2007. According to Dr Tarun Khanna, Jorge Paulo Lemann Professor at the Harvard Business School, Metro’s initial strategy to enter India failed due to its lack of local responsiveness. To substantiate his case, he pointed out how the company installed roofs in its first outlet in Bangalore, India to withstand five to 10 metres of snow exactly like it had done in its home country. Conventional business strategy that enables MNCs to expand across their borders while maintaining control is also known as centralisation strategy. Centralisation in today’s fast-paced business environment mutes the foreign subsidiaries’ ability to respond to local markets in time. At the same time too much decentralisation of authority of the foreign subsidiaries threatens the parent company’s control over them. Thus there needs to be a shift in focus, shares Dr Raharso, stating that “the tipping point begins by questioning the conventional ways corporate centres create value”. Hay Group research has identified some recent cases of big corporate headquarters’ failures and compared them with their successful counterparts. This comparison will shed some light on how corporate headquarters can retain control while being locally responsive like a start-up firm. The story of Toyota, Apple and Walmart: While encounters of Toyota’s unintended acceleration and later problems with its brake pads have been reported often with fatalities involved, it was not until 2005 when the goliath auto-manufacturer actually responded to these reports with a major recall of many popular car models. As of January 2010, Toyota USA Newsroom reported recalls of approximately 5.2 million vehicles for the pedal entrapment/floor mat problem, and an additional 2.3 million vehicles for the accelerator pedal problem.  This raises the question, what took them so long to respond? Many industry analysts commented that the lethargy was created because of the disconnect between Toyota headquarters in Toyota, Aichi, Japan and the retail shop floors in the US. The lack of control and sluggish flow of information that is apparent  between the corporate headquarters and their foreign subsidiaries is a problem not only unique to Toyota. Other cases of corporate centres failing to take swift action are seen in the encounters of Apple and Walmart. Numerous suicide cases and allegations of inhuman working conditions plagued the reputation of  Apple’s Chinese manufacturing partner, FOXCONN. These were controversies to which Apple’s late ex-CEO Steve Jobs turned a blind eye to for years. On the other hand, in April 2013, Walmart’s manufacturing partner in Bangladesh, witnessed a devastating garment building collapse that killed more than a thousand workers.  The mishap revealed the reluctance of the company to ensure local work safety compliance at its offshore outsourced operations. These cases indicate that the corporate headquarters play a paramount role in maintaining control of its foreign operations. Certainly this “value destroyer” reputation cannot be the only fate of corporate headquarters. As a result, it is worth observing the evolution of growth strategies of some global giants who have proven their corporate centres act as  “value creators” for their organisations. Samsung’s journey to success: According to Financial Times, Samsung Electronics is the largest electronics manufacturing company in the world with revenue of ₩201,103billion (US $179.4billion) in 2012. It is currently headquartered in Seoul, South Korea with assembly plants and sales networks spread out in 65 countries all over the globe. Samsung’s journey to success has not exactly been smooth sailing. In its pursuit to become a leading MNC in the 1980s to 2000, Samsung went through several [...]

The second stage in the life cycle of a business, when the founder relinquishes control to the next generation of leadership, is on average the most critical of all. Most do not make it. It has been estimated that as many as 80% of small successful family businesses die during this transition.  Thirty years of work in the intensive care unit of leadership transition has revealed to me two major symptoms for triage and intervention.  The first is studied by almost all who treat the wounded.  When a business has perception, personality or politics (usually family politics) controlling the decision making regarding the resources of the company it is in trouble.   The arrested development occasioned by having the founder making all the decisions based on his or her perceptions and intuitions is ultimately high-risk behavior. The transition to information-driven decision making, with all its metrics objective, transparent and accountable, is the most important vital sign to monitor when looking at the health and viability of the 20% of businesses that will make it. The second vital sign that indicates the health and viability of an evolving business is the replacement of a hub-and-spoke form of governance and communication with a genuinely integrated team.  If the managers of the business are not accountable to one another and communicating directly with one another the system is at risk.  When a founder demands all to be responsible to him or her alone and communicates information from one manager to another the probability of arrested development is certain and the life-threatening symptom of sibling rivalry starts to erode the time and energy necessary for life and growth. It is easy to diagnose the presence of both these indicators in the patient.  It is easy to prescribe and treat the absence of information-driven decision making. Technology and popular psychology both conspire to help diagnose and treat the problem.  The second indicator of probable mortality is much harder to diagnose and treat.  It seems that few are willing to address the total paradigm shift needed for survival.  Unlike the movement from perception- to information-driven decision making, a process that can be very gradual and tolerant of resistance and evolutionary acceptance, the transition needed in the treatment of the second symptom requires immediate and total intervention and change. During the entrepreneurial stage of growing a business the founder is the key.  Charisma is the energy, vision and mission the fuel.  All those who come to work are there because they serve the needs of the charismatic visionary and believe in the potential of his or her vision.  The management serves the needs of the founder. The day the business passes to the management and direction of someone other than the founder, even if that person is the wife, husband, or child of the founder, the dynamic of the system shifts.  Where the total definition was ‘we are here to serve the needs of our managers,’ now the paradigm shift is ‘management is here to serve our needs, as we are here to serve those the business serves.’ Metamorphosis differs from evolution.  Too many have been diagnosing morbidity in arrested development with the mindset of evolutionary systems. Information-driven decision making is evolution. The dynamic shift from hub-and-spoke management that serves the needs of the leader to management that serves the needs of the people below is necessary to establish from day one. It is fatal for the next leader to assume the dynamic of a founder. ‘You are here to serve my needs, to grasp my vision and to trust my decisions,’ is exclusively the right of the founder.  The next person in must abandon all pretense of such demands and declare, ‘I am here to serve your needs you are here to serve the needs of those you direct, evaluate coordinate and empower – all the way down to our customers.’ If the person who inherits the post-founder mantel of leadership does not see the needs of the system as his responsibility and tries to mimic the style of an entrepreneur, he is in a very risky place. By Tom O’Leary. Tom has been evaluating and training leaders for over thirty-five years. He is the owner and President of Personal Resource Management Associates, Inc. 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Why to choose and invest in Torun? Mr. Michał Zaleski, Mayor of Torun: Torun focuses on investment. The city will allocate over 430 million zl on investment in 2013. This amount represents more than 38% of its annual budget expenditure. Most of the money will be spent on roads and transportation, including the construction of an impressive road bridge over the Vistula River. There will also be a new sports and cultural facilities, which always favor investment climate and affect the formation of new workplaces in such cities. In addition, Torun effectively use funds from the European Union, as evidenced by the large number of projects implemented with it’s support. How Torun wants to attract investment? Mr. Michał Zaleski, Mayor of Torun: Our main priority is to highlight investment and innovative character of the city. Recently the most dynamic growth concerns shopping centers, hotels and office buildings. Logistics centers of large companies are located there, as well as nationwide wholesale trade headquarters. Torun is also a city of enterprising people. More then 24 thousand businesses are located here and 412 of these are companies with foreign capital. The Torun Technology Incubator is under construction. This institution will support business development by facilitating access to new technologies and scientific achievements. It’s offer will be directed to start-ups and already existing companies in the IT industry. In what areas Torun is most attractive to investors in your opinion? Mr. Michał Zaleski, Mayor of Torun: The city supports economic activity in many areas, including: grants tax credits to investors, creates urban investment offer, helps to access to information about the location of the investment and continually introduce facilitates in the official procedure. An important advantage of Torun is the high quality of the labor market. Torun with all its advantages is open to projects related to the service sector, culture, tourism, including hotel industry and not harmful to the environment high technology industry. Within the city there are many areas which are suitable for production, logistics and services. With economic ventures, private businesses international contacts and numerous municipal investments, Torun is now a modern and important center in the region and is one of the most dynamically developing Polish cities. Last but not least… You are cordially invited to Torun – an attractive place to locate new investments, where the Gothic meets innovation and entrepreneurship. Contact: Department of Investor’s Service The City Hall of Torun, Grudziądzka 126 b St. 87-100 Torun phone: +48 56 611 86 99 e-mail: boi@um.torun.pl www.boi.torun.pl City Profile Toruń: Toruń is one of the most recognizable cities in Poland. It owes it’s value to long history, preserved monuments, distinctive people who influenced the creation of the historical and modern image of the city, as well as to a strategic location, and cooperation with the twin cities, abounding in mutual economic relations. Thanks to its location and pro-investment policies of the city authorities Toruń stands out in comparison with other cities with high quality of labor market, modern technical infrastructure and social climate conducive to investment. Toruń is one of the fastest growing Polish cities. There are special centers of modern technologies here such as: Toruń Technology Park (TTP), where at the beginning of 2013 was opened first data center in Poland – The Exea Data Center. It was design for cloud computing solutions. In addition, there are also many ongoing projects to support the development of entrepreneurship and innovation, and to facilitate the transfer of modern technology. Created in the city Special Economic Zone, which is a part of the Pomeranian Special Economic Zone is certainly the factor that increases investor’s interest in Toruń because on this area economic activity can be carried out on preferential terms. Moreover, there is a number of business institutions to support the development of entrepreneurship in the city such as: Toruń Regional Development Agency, the Chamber of Commerce, Toruń Credit Guarantee Fund, Western Pomeranian  Regional  Fund of Credit Guarantee and the Polish Federation of Engineering Associations. Comprehensive services to investors at all stages of the project and support with the administrative requirements provides Investor Assistance Office which also runs web portal www.boi.torun.pl that easy access to the necessary planning and economic information about the city. In the time of a strong public deficit and the global economic slowdown, Toruń tries to use alternative instruments to finance public investment. The aim is to achieve the most cost-effective way to create infrastructure and provide municipal services. The result of this search is public-private partnership model (PPP). Currently, the city plans to apply this innovative model of project preparation to implement three projects such as the adaptation of office space in ‘Toruń Mills’ complex, construction of public housing and renovation of the city swimming pool. DON’T MISS: Hit List Interview with Mr. Piotr Grzymowicz, Mayor of City of Olsztyn, Poland Interview with Mr. Piotr Jedliński, Mayor of Koszalin, Poland Interview: Mr. Janusz Piechociński Deputy Prime Minister, Minister of Economy of the Republic of Poland Interview with Prof. dr hab. Danuta Hübner, Member of European Parliament So Apple is stifling competition in the European Union? 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How would you place Koszalin on the map of Poland? Mr. Piotr Jedliński, Mayor of Koszalin: It depends on what kind of map: physical, economic, sports or cultural map of Poland. The most appropriate is to say that Koszalin is an outstanding city in the center of the Polish coast. It stands out in many areas – for example, we are one of the few Polish cities with population of  approximately 100 000 which has its own theater and concert hall and the level of Koszalin’s education is one of the highest  in our country. These advantages of Koszalin are directly connected with the business. There is something more than work in our life after all. An interesting cultural offer and attractive surrounding areas like the sea, a clean environment, numerous lakes and vast forests are the perfect entourage for an interesting leisure time. The opportunities for children are also important. Offer of our schools is very wide. We also provide a number of extra-curricular activities and we have educational results on a high level. In my opinion, these aspects are very important to decide where to settle down  because most of cities offer incentives to investors and enjoy a business-friendly titles so it ceases to be a prime issue.  Although we have a lot to offer  in this aspect – a special economic zone with a number of facilities, in which many companies placed their investments, including foreign high-end hi-tech manufacturing. Businessman would not stay for long in Koszalin if not prevalent good climate for business in our city. If a company decides to invest here, we help them and led them through the meanders of our specific economy to acclimatise as soon as possible. And what is most important to us – that the companies feel good in Koszalin. What are the challenges and the major projects planned for 2013? Mr. Piotr Jedliński, Mayor of Koszalin: I am convinced that only a few people outside of our region are aware that Koszalin is just a few kilometers from the Baltic Sea, and in medieval times was one of the Hanseatic cities, which were closely co-operating trade centers that gained great profits from this collaboration. We return to this tradition – a few years ago we joined two villages bordering the lake Jamno to Koszalin, which gives us a direct access to the sea. Jamno is connected with the Baltic by a channel, now reconstructed and deepened so the sailing ships could swim to the waters of the lake. Therefore, soon we will start to build a special marina so the ships will be able to dock in Koszalin. Now visitors can use the water tram, which carries them from Koszalin to the Baltic coast. We are trying to develop to the north to form the Baltic axis so the city will become The Port Koszalin not only by the name. This summer we plan to create a lake on the outskirts of the city where people can enjoy water sports and relax on the beach. We have also started the construction of the water park. It will be open next year. Of course we also need new roads for the city to function well. That is why we are building ring around Koszalin. Value of the investment amounts to 100 million zloty and it will move the transit traffic form the city center to its its surroundings. It will be ready next year. We are also working on the project of the large bypass of Koszalin which will facilitate the transit traffic even more and improve communication. The new building of Koszalin Philharmonic will be opened in September. Beyond great acoustics it will attract with its interesting shape of the building that will look like a piano. We also have a project of revitalization of the town square which will change the image of the city center. City Profile: KOSZALIN – AN ATTRACTIVE PLACE TO INVEST IN Koszalin is a dynamically developing economic center, located in the north-west part of Poland, over one of the biggest lakes in Poland – the Jamno Lake, which is connected with the Baltic Sea. Benefits of investing in Koszalin : improved investment lands (starting from 2.000m2) in the „Koszalin” Subzone of the Słupsk Special Economic Zone, attractive investment plots of land designated for the construction of hotels and for services, trade, production, recreational, sports and gastronomic purposes, presence of the Technological Park, developed technical infrastructure, tax exemptions and preferences within both the city area and the economic zone, constant contact with an investor, well qualified future staff and low work costs, investment-friendly atmosphere and countless international contacts, investment process assistance, professional and efficient investors service. The city of Koszalin offers attractive investment lands equipped with utilities of approximately 68 hectares located in the “Koszalin” Subzone of the Słupsk Special Economic Zone (SSSE) under attractive conditions. The lands are designated for the building of production plants and logistics centers as well as for BPO investments. An entrepreneur who has been granted the permit for business activity in the zone is exempted from the CIT income tax up to 60%, depending on the size of the company. He is also exempted from the local real estate, lands, buildings and constructions tax by the rule of  de minimis  (up to 200 thousand Euro). “Koszalin Subzone” Słupsk SEZ investment assets Perfect location and transport accesibility   in [...]

Olsztyn is celebrating the 660th anniversary of its civic rights and it is the the regional center of development. What is the role of Olsztyn as an important stimulator of changes in the economic sphere? This autumn it will be 660 years from the time that Olsztyn received the location privilege given by the Cathedral Chapter of Warmia. The city became the seat of the territorial rulers of the Chapter and local economic center. Today Olsztyn, as the capital of the region, develops its administrative functions as well as economic, educational, scientific and cultural activities. All these factors have a significant influence on the direction of development of our city but also of its near and far surroundings. A few years ago development activities of Olsztyn were focus on its own administrative territory. Nowadays processes that determine the development are crossing administrative boundaries. Form the Europe’s and even Polish perspective we are not looking at each municipality individually but we consider it collectively as the “region”. Active cooperation using a common potential of Olsztyn and neighboring communities will contribute to our image of an important center supporting regional development processes. We want to be a source of stimulus for the development of surrounding cities and municipalities. We are confident that the results of our colaboration with partners from Olsztyn’s agglomeration area will serve as a model of good practice for other local governments from Warmia and Mazury region. Construction of the Olsztyn bypass is undoubtedly the most awaited development project in the region. Is there a chance to start it in 2013? What economic benefits it will bring to the city? Do you think that the bypass will increase investors interest in the region and the city? We are aware of and deeply convinced that the limited availability of communication is a major factor hindering economic development in the region. The project of Olsztyn bypass is ready for a few years now. Inhabitants belief that concern for the natural values of the region prevent the intensification of our economic development is grow in in the past 20 years. However, without economic growth the region will not generate funds, including those for environmental protection. Without increasing the availability of transport and communication, in particular the construction of the Olsztyn bypass, the chances for favorable economic developments remain insignificant. Olsztyn is the last regional city which does not have its bypass yet. We do believe that officials from relevant ministries will understand that logic in a short time. Otherwise, they will continue to focus their activities on environmental protection which, after all, should be the object of activiities of the hosts of this region. We take all posible actions to increase the chance for the construction of the Olsztyn bypass. Olsztyn Science and Technology Park is under construction. At what stage is this project now and when the Park is expected to start operating? What are its main objectives? We have high hopes of starting Olsztyn Science and Technology Park. Its organizational formula will combine the package of offes and solutions containing the necessary ingredients to conduct creative and scientific processes which’s input will be a thought processed in the lab, and the output will be specific segments of the market. Four kilometers away from the city center, on the Science and Technology Park, the construction of six buildings with a total area of over 13 thousand m2 dedicated to business incubator for starting-up innovative companies, technology transfer center with laboratory space and equipment. There will also be a conference and office building for headquaters of the Park with additional rooms for trainings, conferences or exhibitions. There will also be a place for different institutions providing business services such as advisory and consulting companies, promotion, accounting, training, insurance, consulting and patent certification and many others. Land reserves will allow to built a new infrastructure and technical and scientific base for the Institute of Animal Reproduction and Food Research of the Polish Academy of Sciencee nearby the Pakr in recent time. Thereupon, a strong complex of research institutions focused on a commercial exploatation of knowledge will rise in one place. This will enhance significantly the impact of science on innovation of Olsztyn’s economy. We plan to start operating the Science and Technology Park on 20 September 2013 and the recruitment of the future users of the Park is in progress. How Warmia and Mazury Special Economic Zone contributes to the development of entrepreneurship in your city? The Warmia and Mazury Special Economic Zone, especially in the context of a near start-up of Science and Technology Park, affects positively our economic plans. The number of companies operating in Zone aera is steadily incrising thanks to the fiscal system instruments that our Special Economic Zone offers. It is now close to 60 operators who have invested more than 3 billion zlotys and created more than 8,000 jobs. Nearly 50 hectares of land provided for the Industrial Park will create both the GDP growth generated in the greater Olsztyn and also will generate new workplaces. 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