Review

Guantánamo, Wikileaks, Snowden, Manning & Modern SocietyNancy Hollander, International Criminal Defense Lawyer in Albuquerque, New MexicoWithin the scope of the MCI Alumni & Friends lecture series, the Entrepreneurial School® recently welcomed the internationally renowned lawyer Nancy Hollander. Because of her commitment to people classified as public enemies or accused of terrorism, the New York Times has described Hollander to be a “terrorist lawyer”.Nancy Hollander opens her lecture with the disillusioning fact that 3 % of the entire population of the United States of America are imprisoned, which is more than in all of Europe. A number of American prisoners are so-called whistleblowers, people who have disclosed truths or secrets about the government relevant to all people. Among them is Hollander’s client Chelsea Manning, who became known for having provided Wikileaks with documents about human rights and violations of such during the Iraq War. Also Mohamedou Ould Slahi, who has been imprisoned in Guantánamo for his suspected connection to al-Qaida, is one of Hollander’s clients. His book, consisting of letters to Nancy Hollander as his lawyer, was published not until after seven years and partial censorship under the title Guantánamo Diary. According to Hollander, Mohamedou Ould Slahi has been tortured more than any other of the prisoners of Guantánamo. However, the lawyer does not only criticize the American way of treating whistleblowers: The government’s approach to its citizens’ privacy seems equally alarming. Hollander even goes so far as to claim that the state draws on surveillance not to protect its citizens, but simply to spy on them.Hollander seizes the final discussion moderated by MCI Rector Dr. Andreas Altmann to emphasize the responsibility of all people to sustain a fair and, above all, a transparent concept of democracy. In comparison to former presidencies, Hollander believes the Obama era to be the least transparent of all. Dr. Andreas Altmann thus raises the question of whether the failure of justice may relate to the failure of society, of education, or the media. Hollander particularly blames the American educational system for its deficiencies, and admits that poorly educated people are indeed much more easily to be influenced.{phocagallery view=category|categoryid=1084}

Franz Hackl, Jazz trumpeter, Composer, Instrument maker, Founder of the Outreach Festival, New York & Schwaz   The Entrepreneurial School® recently welcomed the Austrian jazz trumpeter Franz Hackl to speak at MCI within the MCI Alumni & Friends program. The founder of the Outreach Festival followed his festival motto for his presentation: “Violate common sense: particularity – soul”. Hackl links common sense to sociopolitical topics and runs the gamut to his work as a musician and his very personal notion of common sense.Franz Hackl keeps stressing the importance of common sense – be it for a responsible way of using modern technology, the way we deal with the refugee issue or the ongoing elections in the United States. He partly ascribes the “Donald Trump” phenomenon to the strong media influence. According to Hackl, it has never before been possible for so many people with so little talent to become famous.The event was hosted by Prof. Dr. Siegfried Walch, MCI program director for Nonprofit, Social & Health Care Management / International Health & Social Management at MCI.Einladung_Franz_Hackl3.pdf{phocagallery view=category|categoryid=1076}

American society between Donald Trump & Hillary ClintonMr. Ramesh Ponnuru, National Review senior editor, Bloomberg View columnist, American Enterprise Institute visiting fellow Within the framework of the MCI Alumni & Friends lecture series, the Entrepreneurial School® had the pleasure of welcoming the National Review senior editor, Bloomberg View columnist, American Enterprise Institute visiting fellow Mr. Ramesh Ponnuru for an inspiring talk about the U.S. presidential elections.Ramesh Ponnuru proposes, that contemporary times are called the “area of bad feelings” whilst the past three decades of presidents was called the “area of good feelings”. He explains the contemporary climate in the U.S., that people think, America is heading into the wrong direction. They do not believe that their political leaders serve them well. In the past when people were asked if their children will be better off than they are, there was once a great deal of confidence that the answer was “yes”. Now they have another opinion. The Americans are concerned about the low economic growth, about the cost of living, the cost health care and higher education and over all about the future.Ramesh Ponnuru identifies two points of views within the society. Meaning people are either conservative, either progressive – so that the middle isn't nearly existing any more. There used to be a lot of conservative democrats and progressive republicans. And this is no longer the case. Political divisions now line up with cultural divisions. Now in most of the states it is clear where they are going to be and is not as much mixed as it used to be. Moreover he identifies the social movement that Americans stopped trusting the democrats to stand for middle class values but they don’t start trusting the republicans to stand for middle class values.After describing how parties could deal with issues like migration, higher education, health care, balancing family and work the talk ended into a very vivant discussion hosted by MCI Lecturer Dr. Armin Fiedler.{phocagallery view=category|categoryid=1065}

Philanthropy or an undermining of democracy?Dr. Martin Schütz, group leader for monetary analyses at the National Bank of Austria in ViennaA complex debate of issues relating to the concentration of wealth was the subject of a talk given by Dr. Martin Schütz, the group leader for monetary analyses at the Economics Department of the National Bank of Austria. The lecture, which indeed also reflected Schütz’s personal opinion, was organized as part of the MCI Alumni & Friends lecture series.Dr. Schütz opens his talk by giving insights into the current situation of Austria: Austria may be a wealthy country with comparatively high earned income. But despite this fact the so-called Gini coefficient, i.e. a value which represents a nation’s income distribution on a scale of 0 to 1 (0 = maximal equality; 1 = maximal inequality), currently amounts to 0,76. This high value expresses a clear inequality in the distribution of Austria’s wealth. Social changes induced by the industrialization and the relatively low number of land owners have considerably facilitated this development. More recently also heritages, which affect capital gains more strongly than increases in earned income, have come to play a role in upholding the prevalent inequality.In Austria the bottom 50 percent of households own four percent of gross financial assets, while the top five percent own over 45 percent. This directly relates to the global situation: The 62 wealthiest persons world-wide own just as much as the entire bottom half of the world’s population. In this context Schütz refers to the work of economist Thomas Piketty, who has demonstrated that the income gap increases as returns on investment remain above the level of economic growth for an extended period of time.Of course wealth implicates charisma and, if it has reached a certain level, also creative power, as Schütz explains. Wealthy people very often justify the amount of their assets by pointing to their commitment to charity. However in the long run, this seemingly philanthropic attitude undermines democracy. After all, the wealthy are in the position to choose which projects and actions they would like to fund. The concentration of wealth thus weakens society (see Christine Legarde 2013), creates educational disadvantages that restrain the growth of the gross domestic product (see OECD), and violates principles of justice by ignoring actual achievements as the basis of valuation. It additionally causes abuse of power since the wealthy and the poor of a society express different interests and politics has a strong tendency to protect the wealthy and their wealth rather than the poor.Prof. Dr. Bernd Ebersberger, who is responsible for the area of Research, Innovation, and Entrepreneurship at MCI, moderates the animated discussion which follows the lecture.{phocagallery view=category|categoryid=1059}

Erich Harsch, Chairman of the Management Board at dm-drogerie markt GmbH & Co KGThe MCI Alumni & Friends series of lectures invited Erich Harsch, Chairman of the Management Board at dm-drogerie markt, to give the first talk of the new year. The Austrian native has been working for dm for almost 35 years now. Despite having dropped out of college, as he likes to emphasize, Harsch became what we might like to call a self-made man: He started his career as an employee of the company’s IT department and today manages more than 200 stores in South Germany as Chairman of the dm Management Board.In 2008 Harsch took over the management of dm and, with this, replaced founder Götz W. Werner. Harsch was uncertain of whether he was prepared to follow in the steps of a personality like Werner, but soon realized that he was to cut his own path. He therefore decided to continue as well as expand the unconventional management style of the company’s founder.Harsch traces the sustainable success of his business particularly to the provision of exceptional customer service. From his point of view, entrepreneurs cannot escape facing the decision of whether to focus on profit or the customer. A simultaneous orientation towards profit and the customer is simply not possible. However, if you put your main focus on the customer and adapt your actions to the needs of the customer, you will still achieve success: Profit will become a consequence of your action instead of a primary goal. Harsch even goes so far as to call his company a “systematic profit reducer”. He firmly believes that producing a large profit means to have failed to make investments which would have been important for the future of your company.Erich Harsch moreover believes that strict hierarchies and rigorous management cause harm to the company rather than success. As soon as employees are expected to act on the wishes of the management, the customer inevitably fades into the background. This is why dm has inverted the traditional hierarchical pyramid: The customer is at the top of the pyramid while executives form the basis. The employees of the company support the structure of this hierarchy by working on behalf of the customer.In order to guarantee the sustainability of this structure, it is important to allow employees a certain degree of autonomy and to encourage them to act independently. Following this concept, dm neither provides budget guidelines, nor defines specific targets. The company does not instruct employees on how to carry out their jobs. Offering low and stable prices instead of short-term discounts, dm has been able to win the loyalty of its customers. If you shop with dm, you can always rely on cheap and fair prices. A growth rate between eight and ten percent as well as the achievement of an annual turnover of nine billion euros confirm Harsch’s concept of economic management.Host and MCI Rector Andreas Altmann moderates a lively discussion in which the lecture culminates.{phocagallery view=category|categoryid=1055}

"Pinkwashing" or true cultural change?Claudia Große-Leege, Managing Director of the Verband deutscher UnternehmerinnenWithin the scope of the MCI Alumni & Friends series of lectures, the Entrepreneurial School® welcomed the Managing Director of the Verband deutscher Unternehmerinnen (German association for female entrepreneurs), Claudia Große-Leege. After making clear that she is not lecturing to meet a certain kind of “female quota”, Große-Leege focuses on the question of whether the women’s way to top positions receives more support today than in the past.Upon its foundation in 1954 by 30 female entrepreneurs, the Verband deutscher Unternehmerinnen was derided and shrugged off as a temporary phenomenon. But today the association comprises more than 1.600 entrepreneurs, who achieve an annual turnover of 85 billion euros and take responsibility for over half a million employees. Operating across sectors and providing its members with active support, it has in fact evolved into the largest special interest group of German female entrepreneurs.Women have become so-called educational climbers. The number of those who receive higher education and are awarded university degrees increases steadily. Despite this fact, women in top positions are still underrepresented. This underrepresentation is mainly due to the lack of childcare facilities which forces women to work in part-time jobs. Women additionally differ from their male colleagues in their approach to leadership: They are generally less prepared to take risks and focus on employee loyalty rather than ambitious targets for growth.The quota policy, alluded to at the beginning of the lecture, was established to prescribe a certain proportion of women to work in the bodies of companies which are listed on the stock exchange and subject to co-determination. Große-Leege, however, considers this kind of policy as nothing more than a “necessary evil”, without which the participation of women in executive positions would hardly be possible. Yet the special interest group for female entrepreneurs aimed to grant companies maximum autonomy in the appointment of supervisory or executive board members. The female quota has therefore been fixed at 30 %.Looking into the future, Große-Leege admits that the quota policy indeed also entails benefits. After all, the female quota helps achieve a critical number of women in executive positions. On the one hand, these women will act as role models for other women. On the other hand, they will facilitate the establishment of a stronger female network. Such a network is required to increase the influence of female executives on the appointment of supervisory or executive board members. The Managing Director of the Verband deutscher Unternehmerinnen is convinced that the cultural change has already been induced, but definitely needs further advancement.Tobias Anslinger, editor at MCI and Managing Editor at the specialist publisher FAZ, moderates the lively discussion sparked by the lecture.{phocagallery view=category|categoryid=1034}

Hans K. Reisch, Executive Board Member at SPAR Österreichische Warenhandels-AGThe Entrepreneurial School® welcomed Hans K. Reisch, Executive Board Member at SPAR Österreichische Warenhandels-AG, as guest lecturer in the MCI Alumni & Friends series. Reisch was born in Kufstein, Tyrol, as the grand-son of Hans F. Reisch, who founded the first SPAR association of Austria in 1954. In his lecture he thus recounted the story of a small grocery store as it developed into a Central European business group. Hans K. Reisch moreover outlined the strategies which have led to the consistent expansion of the family-run business, which is still exclusively Austrian-owned. The original grocery store, from which SPAR has evolved into a company with an annual turnover of some 13 billion euros, is still to be found in Kufstein’s historic city center.With its focus on regional products and 3500 store brands, ranging from the discount brand “S-Budget” to the premium brand “Spar-Premium”, the company was listed as the growth leader in the Austrian food retail sector for the fifth time in 2014. Hans K. Reisch draws attention to the innovative ideas through which the SPAR corporation strives to revolutionize business. Among other things, Electronic Shelf Labels (ESL), which are already in use at the Vienna University of Economics and Business campus, will contribute to the achievement of this goal. SPAR’s subsidiary Hervis, too, emphasizes innovation. Through the organization of pop-up ski rentals, for instance, the company breaks new ground in the sporting goods business and consequently succeeds to stand out.MCI Rector Andreas Altmann moderates a lively discussion as the climax of Reisch’s lecture.{phocagallery view=category|categoryid=1028}

Erich Sixt, CEO and Controlling Shareholder of SIXT SE in Pullach, GermanyThe Entrepreneurial School® was particularly proud to welcome Erich Sixt as guest lecturer in the MCI Alumni & Friends series of lectures: Managing the world’s leading car rental company in third generation, the entrepreneur held an inspiring talk which suited the recent establishment of the Center for Family Enterprise at MCI.Although Erich Sixt cannot offer a universally valid formula for success, he wants to provide young entrepreneurs with three pieces of advice. These are based on years of entrepreneurial experience: In the 1960s, Sixt took over his family’s business with 20 rental cars and an annual turnover of approximately one million Deutschmark, and led it to success. Today the company Sixt SE owns more than 250.000 rental cars world-wide and produces an annual turnover of two billion euros.The first advice Sixt offers is to be hungry for success. You need an ambitious goal and a clear vision of what you want to achieve in order to be successful. As a young entrepreneur you are additionally expected to trust in yourself and be ready to venture into new directions. In the mid-70s Sixt therefore chose to expand his father’s local car fleet based in Munich and entered the leasing business. His bold decision proved to be a great opportunity for the advancement of the company. Erich Sixt’s self-confidence as chief executive is also visible in occasionally provocative advertisements, with which he aims to establish the rental car company as a successful premium supplier. Last but not least, Sixt is convinced that successful entrepreneurs also require a sense of responsibility for their employees, investors, and shareholders. These are the factors which, according to Sixt, form the foundation on which entrepreneurs can reach decisions for the benefit of their companies.With the three key factors – self-trust, courage, and responsibility - in mind, Sixt has also been able to overcome several periods of economic difficulties, such as the Eurozone crisis, which hit EU member states in 2008. As chief executive and main shareholder of Sixt SE, Erich Sixt considers entrepreneurs, including himself, as “the last adventurers of the planet”. He thus encourages his sons to take over the management of the company in fourth generation. Their focus will probably shift towards car sharing, which Sixt believes to be the future of the car rental sector. In order to conquer new markets, his sons will moreover expand the business activities with respect to new-car sales and leasing.Anita Zehrer, expert for tourism and lecturer at MCI, takes over the moderation of an animated discussion sparked by Sixt’s talk.{phocagallery view=category|categoryid=1025}

Opportunities, risks, and strategies of online tradingJörn Werner, CEO of A.T.U. Auto-Teile-Unger in Weiden, GermanyThe Entrepreneurial School® recently welcomed Jörn Werner as guest lecturer within the scope of the MCI Alumni & Friends series of lectures. As head of A.T.U, Werner manages a chain of car and truck repair franchises with almost 10.000 employees world-wide. His current focus is on advancing his company’s online campaign.Jörn Werner opens his talk by clarifying that online business indeed constitutes a threat to conventional trade, but at the same time opens up new opportunities. The digitalization of the last years has changed the customer expectations and purchasing behavior of an entire generation. The internet provides customers with an unprecedented price transparency and has thus caused a shift of power from the world of commerce towards the buying public. More than ever before, the customer is the king. Ignoring this circumstance, businesses may have to face the dissemination of poor ratings online. In addition online trade also overrides spatial and temporal restrictions of conventional trade. The buying public can shop whenever and wherever they want. Preselection becomes unnecessary, and the range of products which are to be offered no longer needs to be limited. With such restrictions being lifted, the potential of trading considerably increases.In his previous position as the head of Conrad Electronics, which was founded in 1923, Werner supported and actively influenced a company’s development from a traditional mail-order business with individual stores towards an online-focused business. In order to be able to compete with already well-established online companies, a digital supply chain was established. The goal was to unite the benefits of online trading, including low costs, an unlimited product range and large market size, with the two essential benefits of traditional trading, which are customer proximity and a strong service orientation.As the CEO of A.T.U., Werner currently faces the challenge of transforming a rather conservative company into an innovative business of the digital era. But how can repair and assembling services be provided online? Werner particularly intends to use the opportunity of digital networks to enable quick and efficient processing of customer requests, thus gaining a competitive edge. Step by step, the company will expand its online presence. Customers can already benefit from the possibility to arrange workshop appointments online.Andreas Altmann, Rector of MCI, moderates the lively discussion sparked by Werner’s talk.{phocagallery view=category|categoryid=1014}

How to waste a good idea.Henryk M. Broder, European journalist, critic and authorWithin the scope of the MCI Alumni & Friends lecture series, the Entrepreneurial School® recently welcomed the European journalist, critic, and author Henryk M. Broder, who seized the opportunity to introduce his new book “Das ist ja irre! Mein deutsches Tagebuch”. Born in Poland and having lived in Germany since 1958, the author does not like to be presented as a polemicist, for he merely describes reality as it is; and reality in itself is already polemic enough. Broder considers himself to be some sort of “collector of trash” who becomes most aware of the things happening around him through the process of writing.As part of his talk, Henryk M. Broder read from two chapters of his most recent book “Das ist ja irre! Mein deutsches Tagebuch”. It is a political description of the events which took place between January and June 2015 in Germany. Broder comments on the events, particularly on the decisions which were taken by the Chancellor of Germany Angela Merkel. From Broder’s point of view the Chancellor has made great mistakes in her approach to a new asylum policy. He thus announces the European Union to be condemned to failure; its decline is more than obvious.During the discussion following the author’s talk, the question arises of whether there is an alternative to the EU. Broder admits to not know the answer to this vital question and, in turn, asks the guests to think about whether the originally praised project of a European Union has probably already reached the point of no return.{phocagallery view=category|categoryid=1013}

Dr. Konrad Pesendorfer, Director General of Statistics AustriaThe Entrepreneurial School® was honored to welcome Konrad Pesendorfer, Director General of Statistics Austria, as guest lecturer in this year’s MCI Alumni & Friends series. Within the scope of his inspiring talk, Pesendorfer illustrated the consequences of the Eurozone crisis and possible lessons the EU has drawn from it.According to the economist and statistics expert Pesendorfer, the consequences of the European debt crisis, which has already persisted since 2009, are particularly visible in the development of the gross domestic product and rates of unemployment. During the years of the debt crisis, the GDP has considerably decreased. Austria’s deficit, however, has generally remained below EU average. While Austria has meanwhile also been able to regain the level of before the crisis, the economic growth of the European Union has generally been comparatively slow. The crisis has additionally caused an increase in unemployment rates. Attempts to counteract the development have not yet been fruitful. Despite the fact that Austria’s unemployment rate was at a minimum before the crisis and remained rather low throughout the crisis, the rising number of unemployed persons will become an issue in near future.As a reaction to the decreased gross domestic product and increased rate of unemployment, EU states took measures which in turn induced a rise in government expenses. In order to be able to reduce their levels of debt, EU members are now forced to adopt measures which may also be considered controversial.Drawing on public means during the economic crisis, the EU has for the most part been able to avert further regression. Still individual member states are now faced with the enforcement of stricter EU regulations, as the Director General of Statistics Austria criticizes. From Pesendorfer’s point of view, only a relaxed system of rules along with more room for flexibility could increase EU’s capacity to act and prevent future crisis. This would require a new distribution of competences with a shift from individual countries towards the European Union as a whole.Already during the crisis, measures were taken for the correction of deficits in various domains. The installment of supervision of cross-border banking and the prescription of minimum capital requirements, for instance, have affected financial markets. Also with respect to fiscal policy several rules and regulations have been passed at EU level with the aim to facilitate the identification of early indicators of economic decline. But Pesendorfer finds fault with such measures, for their success particularly depends on qualitative data. The focus, however, should be on the quality of public resources. More attention also needs to be given to the improvement of the data base and the establishment of consistent criteria for data analysis.Pesendorfer’s successful lecture was concluded with an animated discussion moderated by MCI Rector Andreas Altmann.{phocagallery view=category|categoryid=1008}

Our future between market, technology, and politicsAndrä Rupprechter, Federal Minister of Agriculture, Forestry, Environment and Water Management Within the scope of the MCI Alumni & Friends series of lectures, the Entrepreneurial School® was allowed to welcome the Federal Minister of Agriculture, Forestry, Environment and Water Management Andrä Rupprechter. Right at the beginning of his talk held at the MCI Technikstandort, the Tyrolean-born minister emphasized the importance of study programs in food technology, biotechnology and mechatronics. He believes these subjects to offer a range of possibilities for cooperations with the large field of environmental technology.Rupprechter moves on to forge a bridge between climate change and the current migrant crisis: One of the causes for the Syrian Civil War is a drought period which has already lasted for three years. Many farmers have lost their livelihood due to the harsh conditions. Rupprechter consequently shifts the focus of attention to the climate negotiations which took place as part of the 2015 United Nations Climate Change Conference in December 2015. The overall goal of the conference was to reach an agreement on the reduction of greenhouse gas emissions. By 2030 the emissions should have decreased to a level which would limit global warming to less than two degrees Celsius until 2050. The agreement is meant to aid the creation of a basis for sustainable development and an agriculture which is able to counteract the spreading of famine.Later in his talk Minister Andrä Rupprechter draws on Laudato si’, Pope Francis’ second encyclical composed just before the climate negotiations of Paris. It is the first encyclical to address all humans and decision makers alike. In his scientific contemplations Pope Francis identifies anthropocentrism, the belief that human beings are the center of the planet, as the obvious cause for all negative climate developments. Rupprechter agrees that we may be allowed to use the world’s resources, but only according to our responsibility for future generations. In this context, he also emphasizes the need for a regulatory framework for political action, such as in the sense of an eco-social policy.During the lively discussion, which is moderated by MCI Rector Andreas Altmann at the end of the lecture, the Minister argues in support of water power utilization and expresses his confidence in further climate negotiations.{phocagallery view=category|categoryid=1006}

International scenarios, european approaches, austrian strategies.Johanna Mikl-Leitner, Federal Minister of the Interior of the Republic of AustriaThis year’s MCI Alumni & Friends series of lectures opened with a talk about the highly topical and much debated issue of migration: Johanna Mikl-Leitner, Federal Minister of the Interior, outlined her perspective on the current migrant crisis and provided the audience with the possibility to enter into a dialogue.Right at the beginning of her lecture, Mikl-Leitner makes clear that Europe is currently facing a challenge which the individual nation state is unable to cope with. In order to gain control of the tide of refugees, targeted measures must be implemented at federal level but, more and more importantly, also at EU level. Austria primarily relies on the provision of first aid and the accelerated integration of asylum seekers into their new home country. The nation of Austria additionally strives for international cooperation to prevent people smuggling. Considering the measures at EU level, Mikl-Leitner first and foremost appeals to the responsibility of each member state to increasingly fight the causes of emigration. In this context it seems necessary to promote peace negotiations and to provide additional financial support, for instance for African countries. Mikl-Leitner moreover calls on the EU to create legal possibilities for entrance into European countries. At the same time she demands increased safety at EU external borders and a law for the equal distribution of asylum seekers across member states to better be able to control the stream of refugees. Only through the implementation of such measures the large influx of refugees can be handled appropriately, as Mikl-Leitner is convinced.Following Johanna Mikl-Leitner’s talk, MCI Rector Andreas Altmann presented a lively discussion which focused on topics such as the execution of asylum procedures as well as the integration of persons entitled to asylum, their introduction to the labor market and claims to social security benefits:Over the course of the last few years around 18.000 people submitted a request for asylum in Austria. This year, the country has already received three times as many applications. The number of asylum applications is expected to reach about 85.000 by the end of the year. Newly founded in 2014, the Federal Agency for Immigration and Asylum is now in urgent need of qualified staff members to process this amount of applications. The job, however, requires several months of training. The agency is therefore faced with a severe shortage of staff. But considering the average duration of asylum procedures, we need to appreciate that in Austria the process is usually completed within only five months, or currently seven months because of the exceptional influx of refugees: This is still way above EU average.Austria shows a rather liberal approach when it comes to providing access to the labor market as well as social security benefits for persons who are entitled to asylum. During the asylum procedure, applicants only obtain limited access to the labor market: They may accept seasonal jobs or get involved in charitable work. Once they have been granted asylum, refugees have the same rights and obligations as Austrians. In such cases a quick integration, also into the labor market, should have priority. Uncertainty and conflicting interests, however, make the current situation even more difficult, as the Federal Minister of the Interior admits: Never before has Austria, at the same time being faced with the highest unemployment rate since the end of the Second World War, registered such a large number of refugees.Mikl-Leitner furthermore wishes to clarify that asylum must not to be mistaken for immigration. Asylum is exclusively given to people who have to leave their country, for example due to war, and are therefore looking for shelter. Since the idea of a shelter is in the foreground, refugees are certainly not to choose where to apply for asylum. For this reason, Mikl-Leitner would welcome the implementation of EU migrant quotas. The legal amendment to the Austrian Asylum Act, which entered into force on October 1, 2015, enables the Ministry of the Interior to take measures and set up reception places in federal provinces, even without the permission of local mayors. The Minister strongly believes such a regulation to facilitate an efficient and quick distribution of migrants. Yet it does not solve Austria’s lack of places as well as insufficient resources to deal with the present stream of refugees. Not least because of these deficiencies, the Federal Minister of the Interior calls for a fair distribution across EU member states.Upon being asked about the controversial refugee policy of Hungary’s Prime Minister Viktor Orbán, Mikl-Leitner concludes her lecture by praising the Austrian’s strong welcome policy. She uses this final point of discussion as an opportunity to thank the action force and all volunteers for the active care and support they have offered to aid incoming refugees over the past days and weeks.{phocagallery view=category|categoryid=1003}

Prof. John A. Davis, Faculty Chair, Families in Business Program, Harvard Business School & Chairman, Cambridge Institute for Family EnterpriseThe Entrepreneurial School® had the pleasure to welcome Harvard Professor John A. Davis on June 16th, who ended the MCI Alumni & Friends lecture series of the current academic year with an inspiring talk on what we know about family business. Davis has been studying and advising family companies for more than 40 years and is today considered a leading authority on family enterprise and family wealth. When he started his career in the 1970s, nothing academically was known about family business as the academic world did not realize the importance of the sector by then. However, family businesses not only represent the oldest form of enterprises. They also constitute the largest group of undertakings worldwide – about sixty percent of all companies listed on the New York Stock Exchange are family owned and this figure is even higher in other countries. Davis research also shows that on average, family business perform better. In order to better understand this phenomenon, the Harvard Professor developed a framework analyzing the mechanics of family businesses and explaining why these businesses do better. The model considers the interconnections of the three factors “business”, “ownership” and “family”: Although family owned enterprises face vulnerabilities such as strategic stagnation or family conflicts, successful ones are profoundly built around loyalty. They are associated with conservative financial management and persistently adapting to new circumstances. With regard to the factor “ownership”, successful family businesses are equipped with a capable, aligned management as well as loyal owners that consider their function as a job and not as a birthright. Eventually, the factor “family” forms the ultimate foundation of successful enterprises, as a united, contributing family builds the bridge between employees and owners. Davis concludes that today, a lot is known about the formula of efficient family owned companies and highlights the importance of families to consistently consider important changes and to adapt to external conditions such as new products, markets or even industries. The faculty chairman of Harvard’s Families in Business Program points out that companies may change and even need to do so. However, a successful business is always built around a great family. This is why one of the key issues for enduring success of family business is the passing on of the undertaking to the next generation, who needs to gain credibility and acceptance through effective behavior. Bernhard Baumgartner, CEO of familyfirm, hosted the very lively and stimulating discussion following Davis presentation.Invitation_John_Davis4.pdf{phocagallery view=category|categoryid=984}

How to turn a local business into a global operation.Franz Senfter, President, Senfter Holding AG, Innichen/South TyrolIn the framework of the MCI Alumni & Friends lecture series, the Entrepreneurial School® recently welcomed the South Tyrolean entrepreneur Franz Senfter, who transformed a small family butcher’s in the village of Innichen into one of the biggest companies in the Italian food industry. He spoke about its exciting history, the continuous process of expansion, his recipes for success and also the setbacks. Having first increased the volume of production and range of products based on traditional South Tyrolean bacon, Senfter set about standardizing his products and built up a stable national distribution network. With his natural curiosity, Franz Senfter was quick to take a look at markets in other countries and to that end attended various trade shows and conferences. He saw that there was considerable interest abroad in an Italian product range, and his decision to move onto the German market proved a turning point for the business. With his sixth sense for promising developments and new markets, he also entered into a joint venture in China in the 1990s. The little butcher’s shop, which was the point of departure for what is now a company with annual sales totaling 700 million euros, still exists on the village square in Innichen, and Franz Senfter stresses how important he finds his involvement in South Tyrol. That is reflected in the various South Tyrolean companies which he controls as Chairman of Senfter Holding AG. Apart from the food sector, they cover the business areas Tourism & Transport, Real Estate & Agriculture and Media as well as his commitment to local material flows. One of his next goals is to enter the American market. For Franz Senfter, such goals and visions, which always involve a three-year incubation period, are one of the keys to his success. And should something not go according to plan, he said, the solution is to treat every problem as an opportunity. The event, which concluded with a lively discussion, was chaired by Professor Bernd Kirschner.Einladung_Franz_Senfter2.pdf{phocagallery view=category|categoryid=977}

Full and varied program This year, too, the MCI Alumni & Friends Club marked the close of an intensive and interesting year of events with its traditional MCI Alumni Weekend, offering an exciting program as the rousing culmination of the academic year. The event began on the Friday afternoon with a get-together of MCI graduates including the jubilee years, who learnt about and discussed the MCI’s highly promising plans for the new campus, Ph.D study programs, and the new online study program in Business Administration, etc. {phocagallery view=category|categoryid=978}

Socializing & Networking was the order of the night: At the MCI Summer Clubbing in the Hofgarten, graduates, students and the MCI team, as well as friends and partners of the MCI gave themselves over to the clubbing sound and a delicious buffet until the early hours. {phocagallery view=categories|categoryid=983|imagecategoriessize=0}

Rudolf Hundstorfer, Austrian Minister of Labor, Social Affairs and Consumer Protection Minister Hundstorfer began his talk at MCI Alumni & Friends with a historical overview. He said the welfare state was still relatively young and the outcome of a long journey and could be seen as a net in support of the economy. For the future, he sees some major challenges, including longer life expectancy with resulting problems with financing pensions. He also considers it necessary to encourage people to seek to leave minimum benefit status behind them. According to the Minister, we are confronted with increasing social and economic change, as illustrated by digitalization, the smartphone culture and online shopping. He said that was creating challenges with regard to data protection and a changing working world. For Rudolf Hundstorfer, the basic principles of the welfare state include protection against risks, solidarity and equal opportunities, and it is his job to provide the necessary finance. But that, he said, was again dependent on the factor labor, which is the foundation of the welfare state, with everything based on the principle of insurance. The Minister then spoke about today’s process of structure change with regard to hours worked. Of some 3.5 million wage or salary earners, more than one million work part-time, he said. Fifty percent of them have no alternative to such employment, on the one hand because trade and industry are not offering enough full-time jobs and on the other hand because kindergarten opening hours are inadequate or family duties, such as care of the elderly, also have to be accommodated. One result of this development is a downturn in the wage share of national income, which is set to continue. Today’s changes in the working world are leading to more flexible working hours and non-standard forms of employment. Austria is the Vice European Champion in overtime working. Last year’s total was 270 million hours of overtime, which translates into an average working week of 42.5 hours. That shows the enormous potential in the country for additional jobs. The Minister accordingly called for some of the overtime to be converted into regular jobs. Just 10% of the total would be the equivalent of 8,400 full-time jobs. These developments are germane to the question of how to finance the welfare state. Hundstorfer pointed out that the welfare state was based on a regime of full-time employment and that full-time jobs were fundamental to the system of national health insurance. The continual increase in the share of part-time workers, he said, was stretching the principle of solidarity-based financing to its limits, and alternative forms of funding therefore had to be discussed. Demographic change resulting from the sinking birth rate means that there are now fewer young people in employment. As a result, the national bill for pensions can only be financed if people work longer. For the Minister, this means that the labor market offensive must be intensified, especially for the over-fifties, and also that the subject of life-long learning is becoming increasingly important. The speaker went on to point out that 50 percent of the unemployed have no qualifications. The biggest change in Austria, starting in autumn 2016, will accordingly be compulsory education or training up to the age of eighteen. All young people will be required to undergo further education or training after reaching the current age for the end of compulsory education. At present, about 5,000 young people leave school at the end of the period of compulsory education without enrolling for some form of further education or an apprenticeship, and that will no longer be possible when the new regulation comes into force. Finally, Minister Hundstorfer said that the welfare state was in good shape in Austria, but if that was to continue to be the case, the country needed a high rate of employment, a higher retirement age and the continued political will to finance the welfare state. He conceded that there would also have to be changes with regard to funding but said that privatization had never been good for the social fabric of society. He concluded with the declaration that he was happy to be living in a country where he had to consider “how the increases in life expectancy can be financed from year to year”. Oliver Stock, Editor in Chief of Handelsblatt Online, chaired the event, which closed with a lively discussion. Einladung_HBM_Hundstorfer2.pdf{phocagallery view=category|categoryid=976}