This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (February 2008)

Shareholder value is a business term, sometimes phrased as shareholder value maximization or as the shareholder value model, which implies that the ultimate measure of a company's success is the extent to which it enriches shareholders. It became popular during the 1980s, and is particularly associated with former CEO of General Electric, Jack Welch.

The term used in several ways:

• To refer to the market capitalization of a company (rarely used)
• To refer to the concept that the primary goal for a company is to increase the wealth of its shareholders (owners) by paying dividends and/or causing the stock price to increase
• To refer to the more specific concept that planned actions by management and the returns to shareholders should outperform certain bench-marks such as the cost of capital concept. In essence, the idea that shareholders' money should be used to earn a higher return than they could earn themselves by investing in other assets having the same amount of risk. The term in this sense was introduced by Alfred Rappaport in 1986.

Definition[link]

For a publicly traded company, Shareholder Value (SV) is the part of its capitalization that is equity as opposed to long-term debt. In the case of only one type of stock, this would roughly be the number of outstanding shares times current shareprice. Things like dividends augment shareholder value while issuing of shares (stock options) lower it. This shareholder value added should be compared to average/required increase in value, making reference to the cost of capital.

For a privately held company, the value of the firm after debt must be estimated using one of several valuation methods, s.a. discounted cash flow or others.

History[link]

On August 12, 1981, Jack Welch made a speech at The Pierre in New York City called ‘Growing fast in a slow-growth economy’.^[1] This is often acknowledged as the "dawn" of the obsession with shareholder value. Welch's stated aim was to be the biggest or second biggest market player, and to return maximum value to stockholders.

In March 2009, Welch criticized parts of the application of this concept, calling a focus on shareholder quarterly profit and share price gains "the dumbest idea in the world".^[2] Welch then elaborated on this, claiming that the quotes were taken out of context.^[3]

Maximizing shareholder value[link]

This management principle, also known under value based management, states that management should first and foremost consider the interests of shareholders in its business decisions. (Although the legal premise of a publicly traded company is that the executives are obligated to maximize the company's profit,^[4] this does not imply that executives are legally obligated to maximize shareholder value.)

The concept of maximizing shareholder value is usually highlighted in opposition to alleged examples of CEO's and other management actions which enrich themselves at the expense of shareholders. Examples of this include acquisitions which are dilutive to shareholders, that is, they may cause the combined company to have twice the profits for example but these might have to be split amongst three times the shareholders.

As shareholder value is difficult to influence directly by any manager, it is usually broken down in components, so called value drivers. A widely used model comprises 7 drivers of shareholder value,^[5] giving some guidance to managers:

• Revenue
• Operating Margin
• Cash Tax Rate
• Incremental Capital Expenditure
• Investment in Working Capital
• Cost of Capital
• Competitive Advantage Period

Looking at some of these elements also makes it clear that short term profit maximization does not necessarily increase shareholder value. Most notably, the competitive advantage period takes care of this: if a business sells sub-standard products to reduce cost and make a quick profit, it damages its reputation and therefore destroys competitive advantage in the future. The same holds true for businesses that neglect research or investment in motivated and well-trained employees. Shareholders, analysts and the media will usually find out about these issues and therefore reduce the price they are prepared to pay for shares of this business. This more detailed concept therefore gets rid of some of the issues (though not all of them) typically associated with criticism of the shareholder value model.

Based on these seven components, all functions of a business plan and show how they influence shareholder value. A prominent tool for any department or function to prove its value are so called shareholder value maps that link their activities to one or several of these seven components. So, one can find "HR shareholder value maps", "R&D shareholder value maps", and so on.

Criticism[link]

The sole concentration on shareholder value has been widely criticized,^[6] particularly after the late-2000s financial crisis. While a focus on shareholder value can benefit the owners of a corporation financially, it does not provide a clear measure of social issues like employment, environmental issues, or ethical business practices. A management decision can maximize shareholder value while lowering the welfare of third parties.

It can also disadvantage other stakeholders such as customers. For example, a company may, in the interests of enhancing shareholder value, cease to provide support for old, or even relatively new, products.

Additionally, short term focus on shareholder value can be detrimental to long term shareholder value; the expense of gimmicks that briefly boost a stocks value can have negative impacts on its long term value.

Alternative: stakeholder value[link]

The intrinsic or extrinsic worth of a business measured by a combination of financial success, usefulness to society, and satisfaction of employees, the priorities determined by the makeup of the individuals and entities that together own the shares and direct the company. This is sometimes referred to as stakeholder value.

However, this concept is difficult to implement in practice because of the difficulty of determining equivalent measures for usefulness to society and satisfaction of employees. For instance, how much additional "usefulness to society" should shareholders expect if they were to give up $100 million in shareholder return? In response to this criticism, defenders of the stakeholder value concept argue that employee satisfaction and usefulness to society will ultimately translate into shareholder value.

See also[link]

• Adjusted present value
• Economic value added
• Enterprise value
• Internal rate of return
• Financial modeling
• Flows to equity
• Market value added
• Net present value
• Sustainable Value
• Valuation using discounted cash flows
• Time Value of Money

References[link]

• Rappaport, Alfred (1986). Creating shareholder value: The new standard for business performance. New York: Free Press. ISBN 0-02-925720-4. 
• Prahalad, C. K. (1994). "Corporate Governance or Corporate Value Added?: Rethinking the Primacy of Shareholder Value". Journal of Applied Corporate Finance 6 (4): 40. DOI:10.1111/j.1745-6622.1994.tb00247.x. http://www.uml.edu/centers/CIC/Research/Lazonick_Research/Older_Research/Business_Institutions/maximizing%20shareholder%20value.pdf. 
• Lazonick, William; O'Sullivan, Mary (2000). "Maximizing shareholder value: a new ideology for corporate governance". Journal Economy and Society 29 (1): 13–35. DOI:10.1080/030851400360541. 

Fredmund Malik
File:Fredmund Malik.JPG
Born	(1944-09-01)1 September 1944 Lustenau, Austria
Alma mater	University of St. Gallen
Occupation	Professor, Management consultant
Influenced by	Stafford Beer, Heinz von Foerster, Hans Ulrich, Peter Drucker
Awards	2009 Cross of Honor for Science and Art of the Republic of Austria for his Wholistic Management Systems, 2010 Heinz von Foerster-Award for Organizational Cybernetics by the German Association for Cybernetics

Fredmund Malik (born September 1, 1944 in Lustenau, Vorarlberg) is an Austrian economist with focus on management and the founder and chairman of a management consultancy in St. Gallen.^[1][2]

Malik applies systems theory and cybernetics to analyse and design management systems. From 1974 to 2004 he was teaching at the University of St. Gallen, where he is titular professor for general management, leadership and governance.

Biography[link]

Malik studied economics, social sciences, logic and philosophy of science at the universities of Innsbruck and St. Gallen ^[3] He earned his doctoral degree in 1975 at the University of St. Gallen, where he habilitated in 1978 for managerial economics. From 1978 to 1986, he was associate professor for managerial economics at the University of St. Gallen. From 1979 to 1984 he was also member of the board of the School of Management at University of St. Gallen. For many years, he worked closely with Hans Ulrich, the founder of the St. Gallen Management Model. From 1981 to 1982 he was guest professor at the University of Innsbruck. In 1986 he was appointed titular professor at University of St. Gallen. From 1992 to 1997 he was guest professor at the Vienna University of Economics and Business. Since 1977 he is also chairman of the Management Zentrum St. Gallen.

Malik analyses complexity by applying management cybernetics in an interdisciplinary combination of methods and on the basis of different philosophies of science. He is influenced by Peter F. Drucker, the avant-garde thinker of management and by philosophers like Karl Popper and cyberneticians like Norbert Wiener, Heinz von Foerster and Stafford Beer.

Malik is author of numerous writings on management theory, general management, strategy and human resource development. He is regarded as a generatlist and besides his theoretical background, he gained practical experience as management consultant, managemnt educator and entrepreneur, and as member and chairman of several supervisory bodies. In particular, he aims at effective management action and applies cybernetics to management practice.

From his wholistic, system-oriented standpoint, he criticizes pure shareholder value orientation and education programs in business administration that in his opinion mostly teach too limited views on economics and management.^[4] He argues that applying the laws, models and methods of management cybernetics, enables an organization to function more effective- and efficiently. With this knowledge of cybernetics applied in any societal organization including the political sphere, he asserts that a “New World of Functioning” can be achieved that will benefit all society.^[5]

Honorary positions[link]

Malik is a jury member of the "Top 100" award for the most innovative companies of the German Mittelstand. With practical and theoretical expert knowledge, he decides which company is awarded "Innovator of the Year".^[6]

Selected Works[link]

• Series: Management: Mastering Complexity:

• Volume 1: Management: The essence of the craft, 2010, in English, Campus Verlag, Frankfurt/New York ISBN 978-3-593-39129-8
• Volume 2: Corporate Policy and Corporate Governance, 2008, in German: ISBN 978-3-593-38286-9
• Volume 3: Strategy: Navigating in the New World, 2011, in German: ISBN 978-3-593-38287-6

• Uncluttered Management Thinking: 46 Concepts for Masterful Management, 2011, in English, ISBN 978-3-593-39365-0
• Managing Performing Living: Effective Management for a New Era, 2009, in English, 978-3-593-38278-4
• Effective Top Management: Beyond the Failure of Corporate Governance and Shareholder Value, 2006, in English, ISBN 978-3-527-50117-5
• The New Corporate Governance, in German
• Systemic Management, Evolution, Self-organisation, new edition 2009, in German: ISBN 978-3-258-07494-8
• Strategy of the Management of Complex Systems (Habilitation), new edition 2008, in German: 978-3-258-07396-5
• Management-Systems, in German
• Danger of Crisis in the World Economy, in German (with Daniel Stelter)
• Praxis of System-orientiented Management, in German (Editor)
• Systemmethodoligy, in German (Doctoral Dissertation, with Peter Gomez and Karl-Heinz Oeller)
• System-orientiented Management, in German (Editor, with Bénédict Hentsch)

External links[link]

• Literature by and about Fredmund Malik in the German National Library catalogue
• Website of Fredmund Malik

References[link]

1. ^ Die Schweizerische Post: Interview with Fredmund Malik of August 12, 2009, last accessed August 6, 2011.
2. ^ Malik Management: Unternehmen – Geschichtlicher Abriss last accessessed August 6, 2011.
3. ^ Fredmund Malik Biographie last accessed August 6, 2011.
4. ^ Handelsblatt: Interview with Fredmund Malik of January 17, 2010, last accessed August 6, 2011.
5. ^ Fredmund Malik: "Strategy: Navigating in the New World", 2011, in German: ISBN 978-3-593-38287-6
6. ^ compamedia GmbH: Die „Top 100“-Jury last accessed, August 6, 2011.

Lynn A. Stout is the Paul Hastings Professor of Corporate and Securities Law at the University of California, Los Angeles School of Law. She specializes in researching, writing on, and teaching about corporate law, securities and derivatives regulation, law and economics, and prosocial behavior and law.

Career[link]

Stout holds a B.A. summa cum laude from Princeton University as well as a Master's in Public Policy from Princeton's Woodrow Wilson School and a J.D. from the Yale Law School. Until 2001 she was a Professor of Law at Georgetown University Law School, after which she joined the UCLA School of Law, where she became the Paul Hastings Professor. She has also taught at George Washington Law School, New York University Law School, and Harvard Law School, has served as a Guest Scholar at the Brookings Institution, and is currently a visiting professor at Cornell University Law School.^[1] She has served as an Independent Trustee of the Eaton Vance Mutual Funds since 1998 and on the Advisory Board of the Aspen Institute's Business and Society Program since 2009. She is a frequent guest contributor to the New York Times,^[2] the Wall Street Journal,^[3] the Financial Times,^[4] National Public Radio, and the PBS Newshour.

Notable Theories[link]

The importance of human conscience to peace, prosperity, and the rule of law[link]

Stout is one of the first to apply the scientific evidence on unselfish prosocial behavior (“conscience”) to our understanding of how legal rules shape behavior. Cultivating Conscience: How Good Laws Make Good People (Princeton University Press, 2011) critiques the “homo economicus” assumption of rational selfishness and surveys behavioral science evidence demonstrating how and when people sacrifice their own material welfare to help or to avoid harming others. It applies the lessons of behavioral science to the questions of how tort, contract, and criminal law rules shape behavior, and suggests how to use law and rules more effectively by recruiting the force of conscience, not just material incentives, to encourage cooperative, ethical, and law-abiding behavior. Stout has also published articles on the importance of unselfish prosocial behavior in analyzing judicial behavior, corporate boards, and corporate and securities law.^[5]

The economic hazards of speculative derivatives trading and the common-law solution[link]

Since the 1990s, Stout has argued in several articles that “over-the-counter” (OTC) speculative trading in financial derivatives increases risks and erodes returns in financial markets.^[6] She argues for a return to the common-law approach of distinguishing between true hedging and insurance contracts (which were legally enforceable at common law) and purely speculative “wagering” contracts (which could be enforced only when entered on private exchanges that used membership, capital, and margin requirements to control risks).^[7] Stout warned against the deregulation of OTC derivatives trading in 1998.^[8] She testified before the Senate Agriculture Committee in 2009 on the need to move speculative trading onto private exchanges and clearinghouses to prevent future financial institution failures.

Uncertainty, Subjective Disagreement, and Financial Markets[link]

Stout has published numerous articles on how economic uncertainty permits subjective disagreement that leads to wasteful, risk-increasing speculative trading in stocks, commodities, and derivatives.^[9] She was one of the first legal scholars to explore how subjective disagreement can prevent stock market prices from accurately reflecting fundamental economic values.^[10]

Team Production Theory and other Challenges to “Shareholder Primacy”[link]

With her co-author economist Margaret Blair, Stout has proposed a “team production” theory of the corporation that posits that corporate boards enjoy a broad range of discretion in setting corporate policy and allocating corporate surplus because they are in the best position to preserve and protect important firm-specific investments of not only shareholders, but also creditors, employees, and the larger community.^[11] Stout’s and Blair’s team production model was cited by U.S. Supreme Court Justice Stevens in his dissenting opinion in Citizens United v. FCC. Stout has also published numerous other articles on the empirical and theoretical weakness in the “shareholder primacy” view that corporations should be run to maximize shareholder wealth as measured by share price.^[12]

Publications[link]

Selected books

• Cultivating Conscience: How Good Laws Make Good People (Princeton University Press, 2011)
• Cases and Materials on Law and Economics (with David Barnes, West 1992)

Selected Articles

• Fiduciary Duties for Activist Shareholders (with Iman Anabtawi), 60 Stan. L. Rev. 1255 (2008) (selected in Corporate Practice Commentator’s annual poll as one of the ten best corporate and securities law articles published in 2008)
• Shareholder Control and Corporate Boards' (2 March 2007) The Washington Post
• On the Nature of Corporations (2005) SSRN
• Do Antitakeover Defenses Decrease Shareholder Wealth? The Ex Post/Ex Ante Valuation Problem (2003) SSRN
• The Shareholder As Ulysses: Some Empirical Evidence on Why Investors In Public Corporations Tolerate Board Governance, 152 U. Pa. L. Rev. 667 (2003)
• The Mechanisms of Market Inefficiency: An Introduction to the New Finance, 28 J. Corp. L. 635 (2003) (selected in Corporate Practice Commentator’s annual poll as one of the ten best corporate and securities law articles published in 2003)
• Bad and Not-So-Bad Arguments for Shareholder Primacy, 75 S. Cal. L. Rev. 1189 (2002)
• Trust, Trustworthiness, and the Behavioral Foundations of Corporate Law, 149 U. Penn. L. Rev. 1735 (2001) (with Margaret Blair)
• Why The Law Hates Speculators: Regulation and Private Ordering in the Market for OTC Derivatives, 48 Duke L. J. 701 (1999)
• A Team Production Theory of Corporate Law, 85 Va. L. Rev. 247 (1999) (with Margaret Blair) (selected in Corporate Practice Commentator’s annual poll as one of the ten best corporate and securities law articles published in 1999)
• Are Stock Markets Costly Casinos? Disagreement, Market Failure, and Securities Regulation, 81 Va. L. Rev. 611 (1995) (selected in the Corporate Practice Commentator’s annual poll as one of the ten best corporate and securities law articles published in 1995)
• Betting The Bank: How Derivatives Trading Under Conditions of Uncertainty Can Increase Risks and Erode Returns in Financial Markets, 21 J. Corp. L. 53 (1995)
• Are Takeover Premiums Really Premiums? Market Price, Fair Value, and Corporate Law, 99 Yale L. J. 1235 (1990)
• The Unimportance of Being Efficient: An Economic Analysis of Stock Market Pricing and Securities Regulation, 87 Mich. L. Rev. 613 (1988)

See also[link]

• US corporate law
• Securities and Exchange Act

Notes[link]

External links[link]

• Webpage at UCLA

Hermann Simon management thinker

Prof. Dr. Dr. h.c. Hermann Simon (born 10 February 1947) is a German author and business leader. He is chairman of Simon-Kucher & Partners, Strategy & Marketing Consultants. Simon is an expert in strategy, marketing and pricing. An ongoing online survey (in German language countries) vote him the most influential management thinker after the late Peter Drucker. Simon has authored numerous books and writes articles for international newspapers and business magazines.

Short Biography[link]

• 1947 Born in Hasborn/Eifel, Germany.
• 1966 High School leaving A-levels certificate, Cusanus High School, Wittlich
• 1967-1969 German Air Force, fighter bomber squadron 33, reserve officer
• 1969-1973 Studies of economics and business administration in Cologne and Bonn
• 1974-1979 Ph.D. and qualification as a university professor under Horst Albach in Bonn
• 1979-1989 Professor at the University of Bielefeld
• 1989-1995 Professor at the University of Mainz
• 1983-2002 Various guest professorships and visiting researcher positions: Massachusetts Institute of Technology (1978/79), Vienna Institute for Advanced Studies (1979), Keio University in Tokyo (1983), Stanford University (1984), INSEAD in Fontainebleau (1980–1985), Harvard Business School (1988/89), London Business School (1991–2002)
• 1985-1988 Director, USW The German Management Institute, Schloss Gracht/Cologne
• 1985 Founded the company Simon - Kucher & Partners Strategy & Marketing Consultants
• 1995-2009 CEO of Simon - Kucher & Partners Strategy & Marketing Consultants
• Since 2009 Chairman of Simon - Kucher & Partners Strategy & Marketing Consultants

Business Professor, Management Consultant and Author[link]

Hermann Simon’s career has followed three paths: as a management consultant, as an author and as a business professor. His books have been translated into 25 languages and are widely read among managers. An ongoing online survey votes him the most influential management thinker after the late Peter Drucker.^[1]

Business Professor[link]

Hermann Simon is also a professor of business and has worked extensively in the field of marketing. Until 1995 he was a professor of business administration and marketing at the Johannes-Gutenberg University in Mainz, Germany. Simon’s academic career began very early: After completing his studies, he started his Ph.D. under the supervision of Horst Albach. Professor Albach significantly influenced his professional development, especially regarding the bridge between theory and practice. Between 1978 and 1980 Simon received a post-doctoral scholarship from the Deutsche Forschungsgemeinschaft (German Research Foundation) and was also a visiting fellow at the Massachusetts Institute of Technology (MIT) during that time. Since then he has been a regular contributor to journals like "Management Science", "Harvard Business Review", "MIT Sloan Management Review" and Journal of Marketing Research. His academic career led him to numerous guest professorships at international universities: Simon was a visiting professor at the Vienna Institute for Advanced Studies in 1979, at the Keio University in Tokyo in 1983 and at Stanford University in 1984. He also taught at INSEAD in Fontainebleau (1980–1985), at Harvard Business School (1988–1989) and London Business School (1991–2002). Between 1984 and 1986, Professor Simon was the head of the European Marketing Academy (EMAC), and between 1985 and 1988 he was the research director of the European School of Management and Technology (formerly the Universitätsseminar der Wirtschaft, or USW) at the Schloss Gracht in Cologne.

While working as an economics professor, his research largely centered on bridging the gap between theory and practice and his approach to research was empirical and decision-oriented. Numerous theoretical concepts were practically applied in his pioneering projects (calculation of expected market reactions, non-linear pricing, product life cycles, bundling).

During his time as the director at the USW (the largest German institute for management training in the mid-1980s), Simon decided to enter the professional business world. In 1985, he founded the management consultancy UNIC, which later became Simon-Kucher & Partners Strategy & Marketing Consultants, together with his former Ph.D. students, Dr. Eckhard Kucher and Dr. Karl-Heinz Sebastian. In 1995 Professor Simon left his university career to dedicate himself full-time to the consulting business as the chairman of Simon-Kucher & Partners.

Management Consultant[link]

Hermann Simon was CEO of Simon-Kucher & Partners Strategy & Marketing Consultant|Consultants since 1995. The company employs 500 professionals and operates worldwide with offices in Amsterdam, Beijing, Bonn, Boston, Brussels, Cologne, Copenhagen, Frankfurt, London, Luxembourg, Madrid, Miami, Milan, Munich, New York, Paris, San Francisco, Singapore, Sydney, Tokyo, Vienna, Warsaw and Zurich.

His consulting firm focuses on strategy, marketing, pricing and sales. Bloomberg BusinessWeek described Simon-Kucher & Partners as a "world leader in giving advice to companies on how to price their products"^[2] and The Economist wrote: “Simon-Kucher is the world’s leading pricing consultancy”.^[3]

Professor Simon has served as the board member for numerous joint-stock companies as well as boards of trustees. His perception of the German corporate landscape draws strongly from this background. He acknowledges the expertise of German companies in technology and products, but asserts that they still show weaknesses in terms of marketing, customer orientation and service. Compared to companies in the USA, German companies perform poorly in terms of market capitalization. Consequently, Professor Simon sees a great danger of German companies being “colonized”.

Author[link]

Hermann Simon’s books are widely read among managers and have been translated into 25 languages. In March 2011, Professor Simon and co-author Martin Fassnacht were awarded the 2010 Georg-Bergler-Prize for Preismanagement. Carrying with it a €20000 prize, the Georg-Bergler-Prize is the most highly endowed award for European marketing textbooks. In 2006, Simon published Manage for Profit, Not for Market Share, which takes a critical look at the widespread focus on volume and market share and calls for a conscious shift of focus towards profit. Simon’s most well-known publications include Think (2004), Power Pricing (1997), Hidden Champions (1996), Hidden Champions of the 21st Century (2009) and Preismanagement (3rd edition 2009). Additional publications include Das große Handbuch der Strategieinstrumente (2002), Das große Handbuch der Strategiekonzepte (2000) and Simon for Managers (2000). Professor Simon has coined a number of phrases which are commonly used in management theory and practice, including “price management”, “hidden champions”, “Servicewüste” and “investor marketing”. Since 1988, Simon has regularly authored a column for the German monthly Manager Magazin. In addition, he is a member of the editorial boards of numerous business journals, including the International Journal of Research in Marketing, Management Science, Recherche et Applications en Marketing, Décisions Marketing, European Management Journal as well as several German journals.

Miscellaneous[link]

Professor Simon was greatly influenced by his long-time friend Peter Drucker, with whom he corresponded for many years and whom he often visited at his home near Los Angeles. Their last scheduled meeting, however, never took place. It was scheduled for November 12, 2005 ─ the day before Drucker died.

Very politically active as a student, Simon is now more critical of politicians. He believes they do not have the necessary competence, particularly concerning economic issues. Furthermore, he deplores the lack of communication between economists and politicians. Simon feels very connected with his place of birth, the Eifel region, and has published the book Kinder der Eifel in 2008.

Selected literature[link]

Books[link]

• Simon, Hermann (2011). Die Wirtschaftstrends der Zukunft. Frankfurt/New York: Campus Verlag. ISBN 978-3-593-39363-6. 
• Simon, Hermann (2009). Beat the crisis. 33 Quick solutions for Your Company. New York: Springer. ISBN 1-4419-0822-6. 
• Simon, Hermann (2009). Hidden Champions of the 21st century. New York: Springer. 
• Simon, Hermann (2009). Preismanagement. Analyse, Strategie, Umsetzung (3rd ed.). Gabler Wiesbaden. 
• Simon, Hermann (2006). Bilstein, Frank; Luby, Frank: Manage for Profit, not for Market Share. A Guide to Greater Profits in Highly Contested Markets. Boston: Harvard Business School Press. ISBN 1-59139-526-7. 
• Simon, Hermann (2004). Think - Strategische Unternehmensführung statt Kurzfrist-Denken. Frankfurt am Main/New York: Campus. 
• Simon, Hermann (2003). Strategie im Wettbewerb. 50 handfeste Aussagen zur wirksamen Unternehmensführung. Frankfurt am Main: FAZ-Buch. 
• Simon, Hermann (2002). von der Gathen, Andreas: Das große Handbuch der Strategieinstrumente. Frankfurt am Main/New York: Campus. 
• Simon, Hermann (2000). Das große Handbuch der Strategiekonzepte. Frankfurt am Main/New York: Campus. 
• Simon, Hermann; Dolan, Robert J. (1996). Power Pricing. How Managing Price Transforms the Bottom Line. New York: The Free Press. ISBN 0-684-83443-X.  (published in 14 languages)
• Simon, Hermann (1996). Hidden Champions. Lessons from 500 of the world's best unknown companies. Boston: Harvard Business School Press. ISBN 0-87584-652-1.  (published in 15 languages)
• Simon, Hermann (1991). Simon für Manager. Düsseldorf: Econ Verlag. ISBN 0-8342-0877-6. 

Selected Articles[link]

• Simon, Hermann (1997). "Hysteresis in Marketing - A New Phenomenon?". Sloan Management Review 38 (3): 39–49. 
• Simon, Hermann (1992). "Pricing Opportunities and How to Exploit Them". Sloan Management Review 33: 55–65. 
• Simon, Hermann (1992). "Lessons from Germany's Midsize Giants". Harvard Business Review 70: 115–123. 
• Simon, Hermann; Sebastian, Karl-Heinz (1987). "Diffusion und Advertising: The German Telephone Campaign". Management Science 33 (April 1987): 451–46. DOI:10.1287/mnsc.33.4.451. 
• Simon, Hermann (1982). "PRICESTRAT. An Applied Strategic Pricing Model for Non-Durables". TIMS-Studies in the Management Sciences 17. 
• Simon, Hermann (1982). "ADPULS. An Advertising Model with Wearout and Pulsation". Journal of Marketing Research 19 (August 1982): 352–363. DOI:10.2307/3151569. JSTOR 3151569. 
• Simon, Hermann; Bachem, A. (1981). "Product Positioning Model with Costs and Prices". European Journal of Operational Research 7: 362–370. DOI:10.1016/0377-2217(81)90094-1. 
• Simon, Hermann (1979). "Dynamics of Price Elasticity and Brand Life Cycles: An Empirical Study". Journal of Marketing Research 16 (November 1979): 439–452. DOI:10.2307/3150805. JSTOR 3150805. 
• Simon, Hermann (1978). "An Analytical Investigation of Kotler's Competitive Simulation Model". Management Science (October 1978): 1462–1473. 

Other[link]

• Simon, Hermann (November 10, 2010). "Small businesses deserve more attention from G20 Summit". The Korea Times. http://www.koreatimes.co.kr/www/news/biz/2010/11/123_76109.html. 
• "Consultant’s group hunts hidden champion". Financial Times. September 5, 2010. http://www.ft.com/cms/s/0/76976152-b921-11df-99be-00144feabdc0.html#axzz15Mp2GWqL. 
• "Mittelstand still limited in UK". Financial Times. September 26, 2010. http://www.ft.com/cms/s/0/1182aa3c-c994-11df-b3d6-00144feab49a.html#axzz15Mpck6KO. 
• "Mittel-management: Germany's midsized companies have a lot to teach the world". The Economist. November 25, 2010. http://www.economist.com/node/17572160. 
• "Hermann Simon". YouTube. http://www.youtube.com/results?search_query=hermann+simon&aq=f. Retrieved 7 December 2010. 
• "CNN TV Spot Invest Seoul - Prof. Hermann Simon". CNN TV Spot. 7 December 2010. http://www.youtube.com/watch?v=Hf0GX8-7ZFI. 

References[link]

External links[link]

• Simon-Kucher & Partners Official Website
• Hermann Simon's Official Website

Michael Jordan

Michael Jordan with the Chicago Bulls in 1997
No. 23, 45, 9, 12
Shooting guard / Small forward
Personal information
Born	(1963-02-17) February 17, 1963 (age 49) Brooklyn, New York
High school	Emsley A. Laney
Listed height	6 ft 6 in (1.98 m)
Listed weight	216 lb (98 kg)
Career information
College	North Carolina (1981–1984)
NBA Draft	1984 / Round: 1 / Pick: 3rd overall
Selected by the Chicago Bulls
Pro career	1984–2003
Career history
1984–1993, 1995–1998	Chicago Bulls
2001–2003	Washington Wizards
Career highlights and awards
6× NBA Champion (1991, 1992, 1993, 1996, 1997, 1998) 5× NBA Most Valuable Player (1988, 1991–1992, 1996, 1998) 14× NBA All-Star (1985–1993, 1996–1998, 2002–2003) 6× NBA Finals MVP (1991–1993, 1996–1998) 10× NBA scoring champion (1987–1993, 1996–1998) 3× NBA steals champion (1988, 1990, 1993) NBA Defensive Player of the Year (1988) 10× All-NBA First Team (1987–1993, 1996–1998) All-NBA Second Team (1985) 9× NBA All-Defensive First Team (1988–1993, 1996–1998) NBA Rookie of the Year (1985) NBA All-Rookie First Team (1985) 3× NBA All-Star Game MVP (1988, 1996, 1998) 2× NBA Slam Dunk Contest champion (1987–1988) NBA's 50th Anniversary All-Time Team #23 Retired by Chicago Bulls and Miami Heat NCAA Champion (1982) 2× Consensus NCAA All-American First Team (1983–1984) ACC Player of the Year (1984) Oscar Robertson Trophy (1984) Naismith College Player of the Year (1984) John R. Wooden Award (1984) Adolph Rupp Trophy (1984)
Career statistics
Points	32,292 (30.1 ppg)
Rebounds	6,672 (6.2 rpg)
Assists	5,633 (5.3 apg)
Stats at Basketball-Reference.com
Basketball Hall of Fame as player

Michael Jeffrey Jordan (born February 17, 1963) is a retired American professional basketball player, active entrepreneur, and majority owner of the Charlotte Bobcats. His biography on the National Basketball Association (NBA) website states, "By acclamation, Michael Jordan is the greatest basketball player of all time."^[1] Jordan was one of the most effectively marketed athletes of his generation and was considered instrumental in popularizing the NBA around the world in the 1980s and 1990s.^[2]

After a three-season career at the University of North Carolina at Chapel Hill, where he was a member of the Tar Heels' national championship team in 1982, Jordan joined the NBA's Chicago Bulls in 1984. He quickly emerged as a league star, entertaining crowds with his prolific scoring. His leaping ability, illustrated by performing slam dunks from the free throw line in slam dunk contests, earned him the nicknames "Air Jordan" and "His Airness". He also gained a reputation for being one of the best defensive players in basketball.^[3] In 1991, he won his first NBA championship with the Bulls, and followed that achievement with titles in 1992 and 1993, securing a "three-peat". Although Jordan abruptly retired from basketball at the beginning of the 1993–94 NBA season to pursue a career in baseball, he rejoined the Bulls in 1995 and led them to three additional championships (1996, 1997, and 1998) as well as an NBA-record 72 regular-season wins in the 1995–96 NBA season. Jordan retired for a second time in 1999, but returned for two more NBA seasons from 2001 to 2003 as a member of the Washington Wizards.

Jordan's individual accolades and accomplishments include five MVP awards, ten All-NBA First Team designations, nine All-Defensive First Team honors, fourteen NBA All-Star Game appearances, three All-Star Game MVP awards, ten scoring titles, three steals titles, six NBA Finals MVP awards, and the 1988 NBA Defensive Player of the Year Award. He holds the NBA records for highest career regular season scoring average (30.12 points per game) and highest career playoff scoring average (33.45 points per game). In 1999, he was named the greatest North American athlete of the 20th century by ESPN, and was second to Babe Ruth on the Associated Press's list of athletes of the century. He was inducted into the Basketball Hall of Fame in 2009.

Jordan is also noted for his product endorsements. He fueled the success of Nike's Air Jordan sneakers, which were introduced in 1985 and remain popular today.^[4] Jordan also starred in the 1996 feature film Space Jam as himself. He is the majority owner and head of basketball operations for the NBA's Charlotte Bobcats, having won a bidding war to buy controlling interest in the team from founding owner Robert L. Johnson.

Jordan is sometimes referred to simply by his initials MJ.^[5]

Early years[link]

Michael Jordan's jersey in the rafters of The Dean Smith Center

Jordan was born in Brooklyn, New York, the son of Deloris (née Peoples), who worked in banking, and James R. Jordan, Sr., an equipment supervisor. His family moved to Wilmington, North Carolina, when he was a toddler.^[6] Jordan attended Emsley A. Laney High School in Wilmington, where he anchored his athletic career by playing baseball, football, and basketball. He tried out for the varsity basketball team during his sophomore year, but at 5'11" (1.80 m), he was deemed too short to play at that level. His taller friend, Harvest Leroy Smith, was the only sophomore to make the team.^[7]

Motivated to prove his worth, Jordan became the star of Laney's junior varsity squad, and tallied several 40 point games.^[7] The following summer, he grew four inches (10 cm)^[1] and trained rigorously. Upon earning a spot on the varsity roster, Jordan averaged about 20 points per game over his final two seasons of high school play.^[8][9] As a senior, he was selected to the McDonald's All-American Team^[10] after averaging a triple-double: 29.2 points, 11.6 rebounds, and 10.1 assists.^[11]

In 1981, Jordan earned a basketball scholarship to the University of North Carolina at Chapel Hill, where he majored in cultural geography. As a freshman in coach Dean Smith's team-oriented system, he was named ACC Freshman of the Year after he averaged 13.4 points per game (ppg) on 53.4% shooting (field goal percentage).^[12] He made the game-winning jump shot in the 1982 NCAA Championship game against Georgetown, which was led by future NBA rival Patrick Ewing.^[1] Jordan later described this shot as the major turning point in his basketball career.^[13] During his three seasons at North Carolina, he averaged 17.7 ppg on 54.0% shooting, and added 5.0 rebounds per game (rpg).^[8] He was selected by consensus to the NCAA All-American First Team in both his sophomore (1983) and junior (1984) seasons. After winning the Naismith and the Wooden College Player of the Year awards in 1984, Jordan left North Carolina one year before his scheduled graduation to enter the 1984 NBA Draft. The Chicago Bulls selected Jordan with the third overall pick, after Hakeem Olajuwon (Houston Rockets) and Sam Bowie (Portland Trail Blazers). Jordan returned to North Carolina to complete his degree in 1986.^[14]

Professional career[link]

During his first season in the NBA, Jordan averaged 28.2 ppg on 51.5% shooting.^[12] He quickly became a fan favorite even in opposing arenas,^[15][16][17] and appeared on the cover of Sports Illustrated with the heading "A Star is Born" just over a month into his professional career.^[18][19] Jordan was also voted in as an All-Star starter by the fans in his rookie season.^[1] Controversy arose before the All-Star game when word surfaced that several veteran players, led by Isiah Thomas, were upset by the amount of attention Jordan was receiving.^[1] This led to a so called "freeze-out" on Jordan, where players refused to pass him the ball throughout the game.^[1] The controversy left Jordan relatively unaffected when he returned to regular season play, and he would go on to be voted Rookie of the Year.^[20] The Bulls finished the season 38–44,^[21] and lost in the first round of the playoffs in four games to the Milwaukee Bucks.^[20]

Jordan's second season was cut short by a broken foot which caused him to miss 64 games.^[1] Despite Jordan's injury and a 30–52 record,^[21] the Bulls made the playoffs. Jordan recovered in time to participate in the playoffs and performed well upon his return. Against a 1985–86 Boston Celtics team that is often considered one of the greatest in NBA history,^[22] Jordan set the still-unbroken record for points in a playoff game with 63 in Game 2.^[23] The Celtics, however, managed to sweep the series.^[20]

Jordan had recovered completely by the 1986–87 season, and had one of the most prolific scoring seasons in NBA history. He became the only player other than Wilt Chamberlain to score 3,000 points in a season, averaging a league high 37.1 points on 48.2% shooting.^[12] In addition, Jordan demonstrated his defensive prowess, as he became the first player in NBA history to record 200 steals and 100 blocks in a season. Despite Jordan's success, Magic Johnson won the league's Most Valuable Player Award. The Bulls reached 40 wins,^[21] and advanced to the playoffs for the third consecutive year. However, they were again swept by the Celtics.^[20]

Mid-career: Pistons roadblock[link]

Jordan led the league in scoring again in the 1987–88 season, averaging 35.0 ppg on 53.5% shooting^[12] and won his first league MVP award. He was also named the Defensive Player of the Year, as he had averaged 1.6 blocks and a league high 3.16 steals per game.^[24] The Bulls finished 50–32,^[21] and made it out of the first round of the playoffs for the first time in Jordan's career, as they defeated the Cleveland Cavaliers in five games.^[25] However, the Bulls then lost in five games to the more experienced Detroit Pistons,^[20] who were led by Isiah Thomas and a group of physical players known as the "Bad Boys".

In the 1988–89 season, Jordan again led the league in scoring, averaging 32.5 ppg on 53.8% shooting from the field, along with 8 rpg and 8 assists per game (apg).^[12] The Bulls finished with a 47–35 record,^[21] and advanced to the Eastern Conference Finals, defeating the Cavaliers and New York Knicks along the way. The Cavaliers series included a career highlight for Jordan when he hit The Shot over Craig Ehlo at the buzzer in the fifth and final game of the series.^[26] However, the Pistons again defeated the Bulls, this time in six games,^[20] by utilizing their "Jordan Rules" method of guarding Jordan, which consisted of double and triple teaming him every time he touched the ball.^[1]

The Bulls entered the 1989–90 season as a team on the rise, with their core group of Jordan and young improving players like Scottie Pippen and Horace Grant, and under the guidance of new coach Phil Jackson. Jordan averaged a league leading 33.6 ppg on 52.6% shooting, to go with 6.9 rpg and 6.3 apg^[12] in leading the Bulls to a 55–27 record.^[21] They again advanced to the Eastern Conference Finals beating the Bucks and Philadelphia 76ers en route. However, despite pushing the series to seven games, the Bulls lost to the Pistons for the third consecutive season.^[20]

First three-peat[link]

In the 1990–91 season, Jordan won his second MVP award after averaging 31.5 ppg on 53.9% shooting, 6.0 rpg, and 5.5 apg for the regular season.^[12] The Bulls finished in first place in their division for the first time in 16 years and set a franchise record with 61 wins in the regular season.^[21] With Scottie Pippen developing into an All-Star, the Bulls had elevated their play. The Bulls defeated the New York Knicks and the Philadelphia 76ers in the opening two rounds of the playoffs. They advanced to the Eastern Conference Finals where their rival, the Detroit Pistons, awaited them. However, this time the Bulls beat the Pistons in a surprising sweep.^[27][28] In an unusual ending to the fourth and final game, Isiah Thomas led his team off the court before the final seconds had concluded. Most of the Pistons went directly to their locker room instead of shaking hands with the Bulls.^[29][30]

The Bulls compiled an outstanding 15–2 record during the playoffs,^[27] and advanced to the NBA Finals for the first time in franchise history, where they beat the Los Angeles Lakers four games to one. Perhaps the best known moment of the series came in Game 2 when, attempting a dunk, Jordan avoided a potential Sam Perkins block by switching the ball from his right hand to his left in mid-air to lay the shot in.^[31] In his first Finals appearance, Jordan posted per game averages of 31.2 points on 56% shooting from the field, 11.4 assists, 6.6 rebounds, 2.8 steals and 1.4 blocks.^[32] Jordan won his first NBA Finals MVP award,^[33] and he cried while holding the NBA Finals trophy.^[34]

Jordan and the Bulls continued their dominance in the 1991–92 season, establishing a 67–15 record, topping their franchise record from 1990 to 91.^[21] Jordan won his second consecutive MVP award with averages of 30.1 points, 6.4 rebounds and 6.1 assists per game on 52% shooting.^[24] After winning a physical 7-game series over the New York Knicks in the second round of the playoffs and finishing off the Cleveland Cavaliers in the Conference Finals in 6 games, the Bulls met Clyde Drexler and the Portland Trail Blazers in the Finals. The media, hoping to recreate a Magic-Bird rivalry, highlighted the similarities between "Air" Jordan and Clyde "The Glide" during the pre-Finals hype.^[35] In the first game, Jordan scored a Finals-record 35 points in the first half, including a record-setting six three-point field goals.^[36] After the sixth three-pointer, he jogged down the court shrugging as he looked courtside. Marv Albert, who broadcast the game, later stated that it was as if Jordan was saying, "I can't believe I'm doing this."^[37] The Bulls went on to win Game 1, and defeat the Blazers in six games. Jordan was named Finals MVP for the second year in a row^[33] and finished the series averaging 35.8 ppg, 4.8 rpg, and 6.5 apg, while shooting 53% from the floor.^[33]

In 1992–93, despite a 32.6 ppg, 6.7 rpg and 5.5 apg campaign,^[24] Jordan's streak of consecutive MVP seasons ended as he lost the award to his friend Charles Barkley. Coincidentally, Jordan and the Bulls met Barkley and his Phoenix Suns in the 1993 NBA Finals. The Bulls captured their third consecutive NBA championship on a game-winning shot by John Paxson and a last-second block by Horace Grant, but Jordan was once again Chicago's catalyst. He averaged a Finals-record 41.0 ppg during the six-game series,^[38] and became the first player in NBA history to win three straight Finals MVP awards.^[33] He scored more than 30 points in every game of the series, including 40 or more points in 4 consecutive games. With his third Finals triumph, Jordan capped off a seven-year run where he attained seven scoring titles and three championships, but there were signs that Jordan was tiring of his massive celebrity and all of the non-basketball hassles in his life.^[39]

Gambling controversy[link]

During the Bulls' playoff run in 1993, controversy arose when Jordan was seen gambling in Atlantic City, New Jersey the night before a game against the New York Knicks.^[40] In that same year, he admitted to having to cover $57,000 in gambling losses,^[41] and author Richard Esquinas wrote a book claiming he had won $1.25 million from Jordan on the golf course.^[41] In 2005, Jordan talked to Ed Bradley of the CBS evening show 60 Minutes about his gambling and admitted that he made some reckless decisions. Jordan stated, "Yeah, I've gotten myself into situations where I would not walk away and I've pushed the envelope. Is that compulsive? Yeah, it depends on how you look at it. If you're willing to jeopardize your livelihood and your family, then yeah."^[42] When Bradley asked him if his gambling ever got to the level where it jeopardized his livelihood or family, Jordan replied, "No."^[42]

First retirement and baseball career[link]

Michael Jordan while playing with the Scottsdale Scorpions

On October 6, 1993, Jordan announced his retirement, citing a loss of desire to play the game. Jordan later stated that the murder of his father earlier in the year shaped his decision.^[43] James R. Jordan, Sr. was murdered on July 23, 1993, at a highway rest area in Lumberton, North Carolina, by two teenagers, Daniel Green and Larry Martin Demery. The assailants were traced from calls they made on James Jordan's cellular phone,^[44] caught, convicted, and sentenced to life in prison. Jordan was close to his father; as a child he had imitated his father's proclivity to stick out his tongue while absorbed in work. He later adopted it as his own signature, displaying it each time he drove to the basket.^[1] In 1996 he founded a Chicago area Boys & Girls Club and dedicated it to his father.^[45][46]

In his 1998 autobiography For the Love of the Game, Jordan wrote that he had been preparing for retirement as early as the summer of 1992.^[47] The added exhaustion due to the Dream Team run in the 1992 Olympics solidified Jordan's feelings about the game and his ever-growing celebrity status. Jordan's announcement sent shock waves throughout the NBA and appeared on the front pages of newspapers around the world.^[48]

Jordan then further surprised the sports world by signing a minor league baseball contract with the Chicago White Sox. He reported to spring training and was assigned to the team's minor league system on March 31, 1994.^[49] Jordan has stated this decision was made to pursue the dream of his late father, who had always envisioned his son as a Major League Baseball player.^[50] The White Sox were another team owned by Bulls owner Jerry Reinsdorf, who continued to honor Jordan's basketball contract during the years he played baseball.^[51] In 1994, Jordan played for the Birmingham Barons, a Double-A minor league affiliate of the Chicago White Sox, batting .202 with three home runs, 51 runs batted in, 30 stolen bases, and 11 errors.^[9] He also appeared for the Scottsdale Scorpions in the 1994 Arizona Fall League, batting .252 against the top prospects in baseball.^[52] On November 1, 1994, his number 23 was retired by the Bulls in a ceremony that included the erection of a permanent sculpture known as The Spirit outside the new United Center.^[53][54][55]

"I'm back": Return to the NBA[link]

In the 1993–94 season, the Bulls, without Jordan, achieved a 55–27 record,^[21] and lost to the New York Knicks in the second round of the playoffs. But the 1994–95 version of the Bulls was a shell of the championship squad of just two years earlier. Struggling at mid-season to ensure a spot in the playoffs, Chicago was 31–31 at one point in mid-March.^[56] The team received a lift, however, when Jordan decided to return to the NBA for the Bulls.

On March 18, 1995, Jordan announced his return to the NBA through a 2-word press release: "I'm back."^[1] The next day, Jordan donned jersey number 45 (his number with the Barons), as his familiar 23 had been retired in his honor following his first retirement. He took to the court with the Bulls to face the Indiana Pacers in Indianapolis, scoring 19 points.^[57] The game had the highest Nielsen rating of a regular season NBA game since 1975.^[58]

Although he hadn't played an NBA game in a year and a half, Jordan played well upon his return, making a game-winning jump shot against Atlanta in his fourth game back. He then scored 55 points in the next game against the Knicks at Madison Square Garden on March 28, 1995 (his first appearance at Madison Square Garden since retiring).^[20] Boosted by Jordan's comeback, the Bulls went 13-4 to make the playoffs and advanced to the Eastern Conference Semifinals against the Orlando Magic. Though at the end of Game 1, Orlando's Nick Anderson stripped Jordan from behind, leading to the game-winning basket for the Magic; he would later comment that Jordan "didn't look like the old Michael Jordan",^[59] after which Jordan returned to wearing his old number. Jordan averaged 31 points per game in the series, but Orlando prevailed in 6 games.^[8]

Second three-peat[link]

Jordan going in for a slam dunk with his signature exposed tongue.

Freshly motivated by the playoff defeat, Jordan trained aggressively for the 1995–96 season.^[60] Strengthened by the addition of rebound specialist Dennis Rodman, the Bulls dominated the league, starting the season 41–3,^[61] and eventually finishing with the best regular season record in NBA history: 72–10.^[22] Jordan led the league in scoring with 30.4 ppg,^[62] and won the league's regular season and All-Star Game MVP awards.^[1] In the playoffs, the Bulls lost only three games in four series, defeating the Seattle SuperSonics in the NBA Finals to win the championship. Jordan was named Finals MVP for a record fourth time,^[33] surpassing Magic Johnson's three Finals MVP awards. He also achieved only the second sweep of the MVP Awards in the All-Star Game, regular season and NBA Finals, Willis Reed having achieved the first, during the 1969–70 season.^[20] Because this was Jordan's first championship since his father's murder, and it was won on Father's Day, Jordan reacted very emotionally upon winning the title, including a memorable scene of him sobbing on the locker room floor with the game ball.^[1][34]

In the 1996–97 season, the Bulls started out 69–11, but narrowly missed out on a second consecutive 70-win season by losing their final two games to finish 69–13.^[63] However, this year Jordan was beaten for the NBA MVP Award by Karl Malone. The Bulls again advanced to the Finals, where they faced Malone and the Utah Jazz. The series against the Jazz featured two of the more memorable clutch moments of Jordan's career. He won Game 1 for the Bulls with a buzzer-beating jump shot. In Game 5, with the series tied at 2, Jordan played despite being feverish and dehydrated from a stomach virus. In what is known as the "Flu Game", Jordan scored 38 points, including the game-deciding 3-pointer with 25 seconds remaining.^[64] The Bulls won 90–88 and went on to win the series in six games.^[63] For the fifth time in as many Finals appearances, Jordan received the Finals MVP award.^[33] During the 1997 NBA All-Star Game, Jordan posted the first triple double in All-Star Game history in a victorious effort; however, he did not receive the MVP award.

Jordan with coach Phil Jackson in 1997

Jordan and the Bulls compiled a 62–20 record in the 1997–98 season.^[21] Jordan led the league with 28.7 points per game,^[24] securing his fifth regular-season MVP award, plus honors for All-NBA First Team, First Defensive Team and the All-Star Game MVP.^[1] The Bulls captured the Eastern Conference Championship for a third straight season, including surviving a grueling seven-game series with Reggie Miller's Indiana Pacers in the Eastern Conference Finals; it was the first time Jordan had played in a Game 7 since the 1992 series with the Knicks. After prevailing, they moved on for a rematch with the Jazz in the Finals.

The Bulls returned to Utah for Game 6 on June 14, 1998 leading the series 3–2. Jordan executed a series of plays, considered to be one of the greatest clutch performances in NBA Finals history.^[65] With the Bulls trailing 86–83 with 41.9 seconds remaining, Phil Jackson called a timeout. When play resumed, Jordan received the inbound pass, drove to the basket, and hit a layup over several Jazz defenders.^[65] The Jazz brought the ball upcourt and passed the ball to forward Karl Malone, who was set up in the low post and was being guarded by Rodman. Malone jostled with Rodman and caught the pass, but Jordan cut behind him and swatted the ball out of his hands for a steal.^[65] Jordan then slowly dribbled upcourt and paused at the top of the key, eyeing his defender, Jazz guard Bryon Russell. With fewer than 10 seconds remaining, Jordan started to dribble right, then crossed over to his left, possibly pushing off Russell,^[66][67][68] although the officials did not call a foul. Jordan then made what would become the climactic shot of his career. After John Stockton missed a desperation 3-pointer, Jordan and the Bulls claimed their sixth NBA championship, and secured a second three-peat. Once again, Jordan was voted the Finals MVP,^[33] having led all scorers by averaging 33.5 points per game, including 45 in the deciding Game 6.^[69] Jordan's six Finals MVPs is a record; Shaquille O'Neal, Magic Johnson, and Tim Duncan are tied for second place with three apiece.^[33] The 1998 Finals holds the highest television rating of any Finals series in history, and Game 6 holds the highest television rating of any game in NBA history.^[70][71]

Second retirement[link]

Plaque at the United Center chronicling Jordan's career achievements.

With Phil Jackson's contract expiring, the pending departures of Scottie Pippen (who stated his desire to be traded during the season) and Dennis Rodman (who would sign with the Los Angeles Lakers as a free agent) looming, and being in the latter stages of an owner-induced lockout of NBA players, Jordan retired for the second time on January 13, 1999.

On January 19, 2000, Jordan returned to the NBA not as a player, but as part owner and President of Basketball Operations for the Washington Wizards.^[72] Jordan's responsibilities with the Wizards were comprehensive. He controlled all aspects of the Wizards' basketball operations, and had the final say in all personnel matters. Opinions of Jordan as a basketball executive were mixed.^[73][74] He managed to purge the team of several highly paid, unpopular players (such as forward Juwan Howard and point guard Rod Strickland),^[75][76] but used the first pick in the 2001 NBA Draft to select high schooler Kwame Brown, who did not live up to expectations and was traded away after four seasons.^[73][77]

Despite his January 1999 claim that he was "99.9% certain" that he would never play another NBA game,^[34] in the summer of 2001 Jordan expressed interest in making another comeback,^[78][79] this time with his new team. Inspired by the NHL comeback of his friend Mario Lemieux the previous winter,^[80] Jordan spent much of the spring and summer of 2001 in training, holding several invitation-only camps for NBA players in Chicago.^[81] In addition, Jordan hired his old Chicago Bulls head coach, Doug Collins, as Washington's coach for the upcoming season, a decision that many saw as foreshadowing another Jordan return.^[78][79]

Washington Wizards comeback[link]

Jordan as a member of the Washington Wizards on April 14, 2003

On September 25, 2001 Jordan announced his return to professional play with the Wizards, indicating his intention to donate his salary as a player to a relief effort for the victims of the September 11, 2001 attacks.^[82][83] In an injury-plagued 2001–02 season, he led the team in scoring (22.9 ppg), assists (5.2 apg), and steals (1.42 spg).^[1] However, torn cartilage in his right knee ended Jordan's season after only 60 games, the fewest he had played in a regular season since playing 17 games after returning from his first retirement during the 1994–95 season.^[12]

Playing in his 14th and final NBA All-Star Game in 2003, Jordan passed Kareem Abdul-Jabbar as the all-time leading scorer in All-Star game history (a record since broken by Kobe Bryant).^[84] That year, Jordan was the only Washington player to play in all 82 games, starting in 67 of them. He averaged 20.0 points, 6.1 rebounds, 3.8 assists, and 1.5 steals per game.^[1] He also shot 45% from the field, and 82% from the free throw line.^[1] Even though he turned 40 during the season, he scored 20 or more points 42 times, 30 or more points nine times, and 40 or more points three times.^[20] On February 21, 2003, Jordan became the first 40-year-old to tally 43 points in an NBA game.^[85] During his stint with the Wizards, all of Jordan's home games at the MCI Center were sold out, and the Wizards were the second most-watched team in the NBA, averaging 20,172 fans a game at home and 19,311 on the road.^[86] However, neither of Jordan's final two seasons resulted in a playoff appearance for the Wizards, and Jordan was often unsatisfied with the play of those around him.^[87][88] At several points he openly criticized his teammates to the media, citing their lack of focus and intensity, notably that of the number one draft pick in the 2001 NBA Draft, Kwame Brown.^[87][88]

With the recognition that 2002–03 would be Jordan's final season, tributes were paid to him throughout the NBA. In his final game at his old home court, the United Center in Chicago, Jordan received a four-minute standing ovation.^[89] The Miami Heat retired the number 23 jersey on April 11, 2003, even though Jordan had never played for the team.^[90] At the 2003 All-Star Game, Jordan was offered a starting spot from Tracy McGrady and Allen Iverson,^[91] but refused both; in the end, however, he accepted the spot of Vince Carter, who decided to give it up under great public pressure.^[92]

Jordan's final NBA game was on April 16, 2003 in Philadelphia. After scoring only 13 points in the game, Jordan went to the bench with 4 minutes and 13 seconds remaining in the third quarter and with his team trailing the Philadelphia 76ers, 75–56. Just after the start of the fourth quarter, the First Union Center crowd began chanting "We want Mike!". After much encouragement from coach Doug Collins, Jordan finally rose from the bench and re-entered the game for Larry Hughes with 2:35 remaining. At 1:45, Jordan was intentionally fouled by the 76ers' Eric Snow, and stepped to the line to make both free throws. After the second foul shot, the 76ers in-bounded the ball to rookie John Salmons, who in turn was intentionally fouled by Bobby Simmons one second later, stopping time so that Jordan could return to the bench. Jordan received a three-minute standing ovation from his teammates, his opponents, the officials and a crowd of 21,257 fans.^[93]

Olympic career[link]

Medal record
Member of  United States
men's national basketball team
Pan American Games
Gold	1983 Caracas	men's basketball
Olympic Games
Gold	1984 Los Angeles	men's basketball
Gold	1992 Barcelona	men's basketball
FIBA Americas Championship
Gold	1992 Portland	men's basketball

Jordan played on two Olympic gold medal-winning American basketball teams. As a college player he participated, and won the gold, in the 1984 Summer Olympics. The team was coached by Bob Knight and featured players such as Patrick Ewing, Sam Perkins, Chris Mullin, Steve Alford, and Wayman Tisdale. Jordan led the team in scoring, averaging 17.1 ppg for the tournament.^[94]

In the 1992 Summer Olympics he was a member of the star-studded squad that included Magic Johnson, Larry Bird, and David Robinson and was dubbed the "Dream Team". Jordan was the only player to start all 8 games in the Olympics. Playing limited minutes due to the frequent blowouts, Jordan averaged 14.9 ppg,^[95] finishing second on the team in scoring.^[96] Jordan, Patrick Ewing, and fellow Dream Team member Chris Mullin are the only American men's basketball players to win Olympic gold as amateurs (all in 1984) and professionals.^[94][95]

After retiring as a player[link]

Jordan on a golf course in 2007

After his third retirement, Jordan assumed that he would be able to return to his front office position of Director of Basketball Operations with the Wizards.^[97] However, his previous tenure in the Wizards' front office had produced the aforementioned mixed results and may have also influenced the trade of Richard "Rip" Hamilton for Jerry Stackhouse (although Jordan was not technically Director of Basketball Operations in 2002).^[73] On May 7, 2003, Wizards owner Abe Pollin fired Jordan as Washington's President of Basketball Operations.^[73] Jordan later stated that he felt betrayed, and that if he knew he would be fired upon retiring he never would have come back to play for the Wizards.^[42]

Jordan kept busy over the next few years by staying in shape, playing golf in celebrity charity tournaments, spending time with his family in Chicago, promoting his Jordan Brand clothing line, and riding motorcycles.^[98] Since 2004, Jordan has owned Michael Jordan Motorsports, a professional closed-course motorcycle road racing team that competes with two Suzukis in the premier Superbike class sanctioned by the American Motorcyclist Association (AMA).^[99][100] Jordan and his then-wife Juanita pledged $5 million to Chicago's Hales Franciscan High School in 2006,^[101] and the Jordan Brand has made donations to Habitat for Humanity and a Louisiana branch of the Boys & Girls Clubs of America.^[102] On June 15, 2006, Jordan bought a minority stake in the Charlotte Bobcats, becoming the team's second-largest shareholder behind majority owner Robert L. Johnson. As part of the deal, Jordan was named "Managing Member of Basketball Operations," with full control over the basketball side of the operation.^[103] Despite Jordan's previous success as an endorser, he has made an effort not to be included in Charlotte's marketing campaigns.^[104]

In February 2010, it was reported that Jordan was seeking majority ownership of the Bobcats.^[105] As February wore on, it emerged that the leading contenders for the team were Jordan and former Houston Rockets president George Postolos. On February 27, the Bobcats announced that Johnson had reached an agreement with Jordan and his group, MJ Basketball Holdings, to buy the team pending NBA approval.^[106] On March 17, the NBA Board of Governors unanimously approved Jordan's purchase, making him the first former NBA player ever to become the majority owner of a league franchise.^[107]

During the 2011 NBA lockout, The New York Times wrote that Jordan led a group of 10 to 14 hardline owners wanting to cap the players' share of basketball-related income at 50 percent and as low as 47. Journalists observed that, during the labor dispute in 1998, Jordan had told Washington Wizards then-owner Abe Pollin, "If you can’t make a profit, you should sell your team."^[108] Jason Whitlock of FoxSports.com called Jordan a "sellout" wanting "current players to pay for his incompetence."^[109] He cited Jordan's executive decisions to draft disappointing players Kwame Brown and Adam Morrison.^[109]

Player profile[link]

Jordan was a shooting guard who was also capable of playing small forward (the position he would primarily play during his second return to professional basketball with the Washington Wizards). Jordan was known throughout his career for being a strong clutch performer. He decided numerous games with last-second plays (e.g., The Shot) and performed at a high level even under adverse circumstances (e.g., Flu Game). His competitiveness was visible in his prolific trash-talk^[110] and well-known work ethic.^[111][112]

Jordan had a versatile offensive game. He was capable of aggressively driving to the basket, as well as drawing fouls from his opponents at a high rate; his 8,772 free throw attempts are the ninth highest total of all time.^[113] As his career progressed, Jordan also developed the ability to post up his opponents and score with his trademark fadeaway jump shot, using his leaping ability to "fade away" from block attempts. According to Hubie Brown, this move alone made him nearly unstoppable.^[114] Despite media criticism as a "selfish" player early in his career, Jordan's 5.3 assists per game^[12] also indicate his willingness to defer to his teammates. In later years, the NBA shortened its three-point line to 22 feet (from 23 feet, 9 inches), which coupled with Jordan's extended shooting range to make him a long-range threat as well—his 3-point stroke developed from a low 9/52 rate (.173) in his rookie year into a stellar 111/260 (.427) shooter in the 1995–96 season.^[12] For a guard, Jordan was also a good rebounder (6.2 per game).^[12]

In 1988, Jordan was honored with the NBA's Defensive Player of the Year Award and became the first NBA player to win both the Defensive Player of the Year and MVP awards in a career (since equaled by Hakeem Olajuwon, David Robinson, and Kevin Garnett; Olajuwon is the only player other than Jordan to win both during the same season). In addition he set both seasonal and career records for blocked shots by a guard,^[115] and combined this with his ball-thieving ability to become a standout defensive player. His 2,514 steals are second highest all-time behind John Stockton, while his steals per game average is third all-time.^[116] Jerry West often stated that he was more impressed with Jordan's defensive contributions than his offensive ones.^[117]

Legacy[link]

Jordan's basketball talent was clear from his rookie season.^[15][17] In his first game in Madison Square Garden against the New York Knicks, Jordan received a prolonged standing ovation,^[17] a rarity for an opposing player. After Jordan scored a playoff record 63 points against the Boston Celtics in 1986, Celtics star Larry Bird described him as "God disguised as Michael Jordan."^[23]

Jordan led the NBA in scoring in 10 seasons (NBA record) and tied Wilt Chamberlain's record of seven consecutive scoring titles. He was also a fixture on the NBA All-Defensive First Team, making the roster nine times (NBA record shared with Gary Payton). Jordan also holds the top career regular season and playoff scoring averages of 30.1 and 33.4 points per game,^[1] respectively. By 1998, the season of his Finals-winning shot against the Jazz, he was well known throughout the league as a clutch performer. In the regular season, Jordan was the Bulls' primary threat in the final seconds of a close game and in the playoffs, Jordan would always demand the ball at crunch time.^[118] Jordan's total of 5,987 points in the playoffs is the highest in NBA history.^[119] He retired with 32,292 points in regular season play,^[120] placing him third on the NBA's all-time scoring list behind Kareem Abdul-Jabbar and Karl Malone.^[120]

With five regular-season MVPs (tied for second place with Bill Russell; only Kareem Abdul-Jabbar has won more, six), six Finals MVPs (NBA record), and three All-Star MVPs, Jordan is the most decorated player ever to play in the NBA. Jordan finished among the top three in regular-season MVP voting a record 10 times, and was named one of the 50 Greatest Players in NBA History in 1996.

Many of Jordan's contemporaries label Jordan as the greatest basketball player of all time.^[117] An ESPN survey of journalists, athletes and other sports figures ranked Jordan the greatest North American athlete of the 20th century, above icons such as Babe Ruth and Muhammad Ali.^[121] Jordan placed second to Babe Ruth in the Associated Press's list of 20th century athletes.^[122] In addition, the Associated Press voted him as the basketball player of the 20th century.^[123] Jordan has also appeared on the front cover of Sports Illustrated a record 49 times.^[124] In the September 1996 issue of Sport, which was the publication's 50th anniversary issue, Jordan was named the greatest athlete of the past 50 years.^[125]

Jordan's athletic leaping ability, highlighted in his back-to-back slam dunk contest championships in 1987 and 1988, is credited by many with having influenced a generation of young players.^[126][127] Several current NBA All-Stars have stated that they considered Jordan their role model while growing up, including LeBron James^[128] and Dwyane Wade.^[129] In addition, commentators have dubbed a number of next-generation players "the next Michael Jordan" upon their entry to the NBA, including Anfernee "Penny" Hardaway, Grant Hill, Allen Iverson, Kobe Bryant, LeBron James, Vince Carter, and Dwyane Wade.^{[130][131][132]} Although Jordan was a well-rounded player, his "Air Jordan" image is also often credited with inadvertently decreasing the jump shooting skills, defense, and fundamentals of young players,^[126] a fact Jordan himself has lamented.

Although Jordan has done much to increase the status of the game, some of his impact on the game's popularity in America appears to be fleeting.^[133][134] Television ratings in particular increased only during his time in the league and have subsequently lowered each time he left the game.^[133][134]

In August 2009, the Basketball Hall of Fame in Springfield, Massachusetts, opened a Michael Jordan exhibit containing items from his college and NBA careers, as well as from the 1992 "Dream Team". The exhibit also has a batting glove to signify Jordan's short career in baseball.^[135] After Jordan received word of his being accepted into the Hall of Fame, he selected Class of 1996 member David Thompson to present him.^[136] As Jordan would later explain during his induction speech in September 2009, growing up in North Carolina, he was not a fan of the Tar Heels, and greatly admired Thompson, who played at rival North Carolina State. He was inducted into the Hall in September, with several former Bulls teammates in attendance, including Scottie Pippen, Dennis Rodman, Charles Oakley, Ron Harper, Steve Kerr, and Toni Kukoc.^[137] Former coaches of Jordan's, Dean Smith and Doug Collins, were also among those present.

Personal life[link]

Michael Jordan, 2006

Jordan is the fourth of five children. He has two older brothers, Larry Jordan and James R. Jordan, Jr., one older sister, Deloris, and a younger sister, Roslyn. Jordan's brother James retired in 2006 as the Command Sergeant Major of the 35th Signal Brigade of the XVIII Airborne Corps in the U.S. Army.^[138]

He married Juanita Vanoy in September 1989, and they have two sons, Jeffrey Michael and Marcus James, and a daughter, Jasmine. Jordan and Vanoy filed for divorce on January 4, 2002, citing irreconcilable differences, but reconciled shortly thereafter. They again filed for divorce and were granted a final decree of dissolution of marriage on December 29, 2006, commenting that the decision was made "mutually and amicably".^[139][140] It is reported that Juanita received a $168 million settlement, making it the largest celebrity divorce settlement in history at the time on public record.^[141]

In 1991, Jordan purchased a lot in Highland Park, Illinois, to build a 56,000 square foot mansion, which was completed four years later.^[142] Both of his sons attended Loyola Academy, a private Roman Catholic high school located in Wilmette, Illinois.^[143] Jeffrey graduated as a member of the 2007 graduating class and played his first collegiate basketball game on November 11, 2007, for the University of Illinois. After two seasons, Jeffrey left the Illinois basketball team in 2009. He later rejoined the team for a third season,^[144][145] then received a release to transfer to the University of Central Florida, where Marcus was attending.^[146][147] Marcus transferred to Whitney Young High School after his sophomore year at Loyola Academy and graduated in 2009. He began attending UCF in the fall of 2009.^[148]

On July 21, 2006, a Cook County, Illinois judge determined that Jordan did not owe his alleged former lover Karla Knafel $5 million.^[149] Jordan had allegedly paid Knafel $250,000 to keep their relationship a secret.^{[150][151][152]} Knafel claimed Jordan promised her $5 million for remaining silent and agreeing not to file a paternity suit after Knafel learned she was pregnant in 1991. A DNA test showed Jordan was not the father of the child.^[149]

Jordan's private jet features a stripe in North Carolina blue, the "Air Jordan" logo on the tail, and references to his career in the identification number.^[153] He proposed to his long time girlfriend, Cuban-American model Yvette Prieto, on Christmas Eve, 2011, and is engaged to be married.^[154] He listed his Highland Park mansion for sale in 2012.^[142]

Media figure and business interests[link]

Michael Jordan in 2008

Jordan is one of the most marketed sports figures in history. He has been a major spokesman for such brands as Nike, Coca-Cola, Chevrolet, Gatorade, McDonald's, Ball Park Franks, Rayovac, Wheaties, Hanes, and MCI.^[155] Jordan has had a long relationship with Gatorade, appearing in over 20 commercials for the company since 1991, including the "Like Mike" commercials in which a song was sung by children wishing to be like Jordan.^[155][156]

Nike created a signature shoe for him, called the Air Jordan. One of Jordan's more popular commercials for the shoe involved Spike Lee playing the part of Mars Blackmon. In the commercials Lee, as Blackmon, attempted to find the source of Jordan's abilities and became convinced that "it's gotta be the shoes".^[155] The hype and demand for the shoes even brought on a spate of "shoe-jackings" where people were robbed of their sneakers at gunpoint. Subsequently Nike spun off the Jordan line into its own division named the "Jordan Brand". The company features an impressive list of athletes and celebrities as endorsers.^[157][158] The brand has also sponsored college sports programs such as those of North Carolina, Cincinnati, Cal, St. John's, Georgetown, and North Carolina A&T.

Jordan also has been associated with the Looney Tunes cartoon characters. A Nike commercial shown during the 1993 Super Bowl XXVII featured Jordan and Bugs Bunny playing basketball against a group of Martian characters.^[159] The Super Bowl commercial inspired the 1996 live action/animated movie Space Jam, which starred Jordan and Bugs in a fictional story set during his first retirement.^[160] They have subsequently appeared together in several commercials for MCI.^[160]

Jordan's yearly income from the endorsements is estimated to be over forty million dollars.^[161][162] In addition, when Jordan's power at the ticket gates was at its highest point the Bulls regularly sold out every game they played in, whether home or away.^[163] Due to this, Jordan set records in player salary by signing annual contracts worth in excess of US $30 million per season.^[164] An academic study found that Jordan’s first NBA comeback resulted in an increase in the market capitalization of his client firms of more than $1 billion.^[165]

Most of Jordan's endorsement deals, including the first deal with Nike, were engineered by his agent, David Falk.^[166] Jordan has said of Falk that "he's the best at what he does", and that "marketing-wise, he's great. He's the one who came up with the concept of 'Air Jordan.'"^[167]

In June 2010, Jordan was ranked by Forbes Magazine as the 20th most powerful celebrity in the world with $55 million earned between June 2009 and June 2010. According to the Forbes article, Jordan Brand generates $1 billion in sales for Nike.^[168]

Honors and awards[link]

Michael Jordan and Dean Smith at the University of North Carolina at Chapel Hill game honoring the 1957 and 1982 men's basketball teams.

Jordan won numerous awards and set many records during his career. The following are some of his achievements:^{[1][169][170]}

• Naismith Memorial Basketball Hall of Fame Class of 2009
• 2 Olympic Gold Medals – 1984, 1992
• 6× NBA Champion
• 6× NBA Finals MVP
• 5× NBA MVP
• 10 NBA Scoring Titles
• 3× steals leader
• 3× minutes leader
• 14 NBA All-Star Selections
• 3× NBA All-Star Game MVP
• 11 All-NBA Selections
• 9 All-Defensive First Team Selections
• 2× NBA Slam Dunk Contest Champion – 1987, 1988
• NBA Rookie of the Year – 1984–85
• NBA Defensive Player of the Year – 1987–88
• NCAA National Championship – University of North Carolina at Chapel Hill: 1981–82
• ACC Freshman of the Year – 1981–82
• 2× Consensus NCAA All-American First Team – 1982–83, 1983–84
• ACC Men's Basketball Player of the Year – 1983–84
• USBWA College Player of the Year – 1983–84
• Naismith College Player of the Year – 1983–84
• John R. Wooden Award – 1983–84
• Adolph Rupp Trophy – 1983–84
• Sports Illustrated Sportsman of the Year – 1991
• Named one of the 50 Greatest Players in NBA History in 1996
• Ranked No.1 by SLAM Magazine's Top 50 Players of All-Time
• Ranked No.1 by ESPN Sportscentury's Top 100 Athletes of the 20th century
• Elected to North Carolina Sports Hall of Fame

See also[link]

	African American portal
	Basketball portal
	Biography portal
	Chicago portal

• Michael Jordan statue
• Michael Jordan Steakhouse
• Michael Jordan's Restaurant
• Michael Jordan: Chaos in the Windy City
• Michael Jordan in Flight
• NBA 2K11
• NBA 2K12

References[link]