<Things that most CEOs overlook>

<Things that most CEOs overlook>

1. To succeed as CEO, you have to be good at two things: 1) To operate efficiently, 2) To place cash in the right place as a result of efficient operation.

2. The majority of CEOs focus on operations (of course, operations are very important, but not many CEOs care about relatively cash-strapped issues)

3. There are basically five uses in which CEOs mainly use capital: 1) investing in existing businesses, 2) acquiring other businesses, 3) paying dividends, 4) repaying debt, and 5) buying back shares.

4. There are also three ways to raise funds: 1) using internal cash, 2) issuing bonds, and 3) issuing stocks.

5. Long-term shareholder profits depend on 'what the CEO chooses from these various tools'. If even two companies with the same business performance choose different methods when allocating capital, the long-term performance of shareholders can be significantly different.

6. (And) essentially, capital allocation is like investment. So, every CEO is both a capital allocation and an investor. And this role is the most important responsibility of any CEO. (In other words, CEOs should be interested not only in running their companies, but also in reasonably allocating and investing the cash generated by their businesses.)

7. Unfortunately, however, leading business schools do not have courses to teach capital allocation. Warren Buffett said, "Most business managers do not do their job properly. It's not surprising that they are not very good at allocating."

8. "Most CEOs become CEOs as a result of good marketing, manufacturing, engineering, managing, or in-house politics. When they become CEOs, they have to decide how to allocate their capital."

9. "But capital allocation is a job they've never wrestled with, and they don't get used to it very soon. (So it's inevitable that they're immature)."

10. "It's like a talented musician getting nominated for the Federal Reserve chair, not playing in Carnegie Hall at the end of his career."

11. And this inexperience has a direct and significant impact on investors' returns. In fact, over the past 50 years, the most outstanding and truly outstanding CEOs have used the secret of resource allocation.

- WALLIAM Sondijk, O1 of The Outsider.
GMV will appear in the Group 1 put option war between private equity funds (30%) invested in SSG.COM and Shinsegae Group (E-Mart, Shinsegae) as major shareholders of SSG.

Private equity funds can exercise put options on Shinsegae Group for its 1 trillion investment stake if Thuk Dotcom fails to achieve an annual GMV of 5.16 trillion.  

Shinsegae said, "As we have achieved 5.7 trillion GMV, private equity funds' right to put options has disappeared," and private equity funds seem to believe that put options are alive, saying, "There is a problem with GMV aggregation."

2.
I recently asked some juniors.
If you bought 50,000 won worth of apples on the 50,000 won gift certificate, is the GMV captured on the 50,000 won or 100,000 won?

"I think it's 100,000 won..."

So, what if I paid with cash (credit card) instead of gift certificates?
"That's 50,000 won..."

I almost threw a fist at the answer. A gift certificate is a cash-for-money securities. You pay cash (usually at a lower price than face value) to buy a gift certificate on the platform. What's the difference between a cash payment and a gift certificate payment.

3.
There was an article about GMV being set at 100,000 won in this case in e-commerce, so I recently asked the question on Facebook, and Shin Hyun-ho said, "The article must have been wrong." In my opinion, this is the normal response.  

It's common sense to think that it's 100,000 won.

However, many of the comments say that the industry seems to be doing so.    

4.
Are they really inflating GMV with that kind of redundant count. I still can't believe it. If they are, it's just a prank. A prank..