Before coming to Canada, Donnie once said to focus on four industries in Canada.
Finance, energy, agriculture, and manufacturing!
Among them, Rongi will focus on finance and energy, while agriculture and manufacturing will be independent actions by Venus Bank.
Currently, for the developnt of Rongi Bank in Canada, the first step is to acquire so of Canada’s small and dium-sized banks!
In fact, this type of acquisition is very risky in business developnt.
Because blind expansion can likely lead the company to beco bloated and also disperse the company’s equity.
The most obvious example is General Motors’ Billie Brown.
In the early days, Billie Brown used the funds provided by Morgan to acquire and rge more than twenty Arican automobile companies, including Cadillac Company, Murphy Motor Company, Northway Automobile Company, and Buick Company.
Then Billie Brown lost control of General Motors and eventually lost General Motors.
However, for Donnie and others now, the situation is much simpler.
Firstly, they do not have financial difficulties.
Just this point can ensure the purity of Rongi Bank’s equity.
As for the bloat of the company, a strong individual is needed!
Donnie took out a docunt and placed it on the table.
"This is Joseph Schumpeter, I plan to appoint him as the first president of Rongi Bank, take a look at his profile!"
Walker Astor laughed: "No need to look at his profile, everyone is quite familiar with him!"
Speaking of which, Walker Astor sighed: "I didn’t expect you could invite him out!"
Walker Astor said this because Joseph Schumpeter is currently a very well-known figure in economics.
Joseph Schumpeter is actually not Arican but was born in a textile factory owner’s family in the Moravian province of the Austro-Hungarian Empire.
Between 1901 and 1906, Joseph Schumpeter attended the University of Vienna, studying law and economics, and obtained a doctorate in law, being a direct disciple of the Austrian School’s leading figure Böhm-Bawerk.
In 1918, Joseph Schumpeter briefly served as an advisor to the "Socialization Committee" of the German Social Democratic Party led by Kautsky and Sefating.
By 1919, he briefly served as the Treasurer in a coalition cabinet of Austria ford by the Austrian Social Democratic Party led by Otto Bauer.
In 1921, he left office and entered business, becoming president of the private Biedermann Bank, but in 1924 the bank went bankrupt.
In 1925, he returned to academia, initially invited to Japan as a visiting professor at a university, but soon went to Germany to beco a professor at the University of Bonn.
In 1932, he relocated to the United States and now serves as a professor of economics at Harvard University.
"People always want to prove sothing, and the collapse of Biedermann Bank has always been a painful matter for Joseph Schumpeter.
Now, with the support of Venus Bank, making him the president of Rongi Bank is his best stage!"
Donnie said with a smile.
The collapse of Biedermann Bank has always been a thorn in Joseph Schumpeter’s heart, and Donnie specifically had this issue investigated.
At the ti, the collapse of Biedermann Bank was not Joseph Schumpeter’s responsibility, but rather the then board of Biedermann Bank recklessly intervened in bank-specific business.
Joseph Schumpeter is also known as the "father of innovation theory," which posits that innovation involves establishing a new production function by introducing new combinations of factors and conditions of production never seen before.
These new combinations include adopting a new product or a new feature of a product, using a new thod of production, opening a new market, acquiring or controlling a new source of supply for raw materials or half-finished goods, and achieving any new organizational structure in industry.
Joseph Schumpeter also emphasized that entrepreneurs are the main agents of innovation, and only when entrepreneurs achieve innovation can the "circular flow" equilibrium of the economy be disrupted and economic developnt be propelled forward.
Innovation leads to imitation, imitation breaks monopoly, stimulates large-scale investnt, induces economic prosperity, and when innovation becos widespread, profit opportunities begin to vanish, signaling economic decline until new innovation activities erge, advancing the economic system through successive cycles of prosperity, recession, depression, and recovery.
In addition to ’innovation theory,’ Joseph Schumpeter proposed two other theories.
The theory of creative destruction in capitalism and the theory of elite democracy.
In ’creative destruction in capitalism,’ Joseph Schumpeter ntions that at the bottom of the economic cycle, so entrepreneurs have no choice but to consider exiting the market, while others must pursue "innovation" to survive.
Successful "innovation" will lift economic activity and improve production efficiency, but once an industry becos profitable again, it will attract new competitors, re-entering a process of diminishing returns.
Thus, each depression contains the potential for technological advancent, and the outco of technological advancent is the next foreseeable depression.
In his view, the creativity and destructiveness of capitalism are of the sa origin, and the capitalist economy will ultimately collapse under the weight of its rapidly expanding scale due to its inability to bear its accumulation of energy.
Joseph Schumpeter’s elite democracy theory is quite interesting.
In the book "Capitalism, Socialism and Democracy," Schumpeter proposes the "elite democracy theory."
He believes that democracy is the process of political elites competing for power and the people choosing political leaders. The essence of democracy lies in a competitive electoral process where political elites hold power and govern, but their legitimacy cos from the people’s choice.
This theory marks a significant shift in democratic theory from the classical democracy of direct people’s rule to modern electoral democracy.
These three theories have cented Joseph Schumpeter’s status in academia.
Of course, what Donnie values is not only Joseph Schumpeter’s theories but also his execution.
Speaking of the most famous rgers and acquisitions expert in the United States in the thirties.
Joseph Schumpeter is an unavoidable figure.
During his tenure as a Harvard University professor, Joseph Schumpeter was involved in several rgers and acquisitions cases, even playing the most critical role in them.
This makes Joseph Schumpeter’s status in the Arican business community very high as well.
"Bruce, do you have any opinions on this matter?"
Seeing that Walker had no objections, Donnie focused his attention on Bruce Currie.
After all, according to everyone’s previous forecast, if Venus Bank were to establish Rongi Bank in Canada, then naturally, Bruce Currie in Canada would be the unchallenged choice for president!
But now Donnie chose Joseph Schumpeter to be the president of Rongi Bank.
"Tell the truth!"
Donnie looked at Bruce Currie intensely!
Bruce Currie smiled lightly and said, "I have no objections. I’m aware of my own abilities. If Rongi Bank were to expand steadily, I’d hope to beco its president.
But now, we must rapidly develop Rongi Bank in Canada in the shortest ti and ensure it has the strength to compete with other banks imdiately.
I can’t achieve this, but if Joseph Schumpeter does it, the likelihood of success is higher!"
Donnie nodded. For Donnie, the most challenging part of this matter was not appointing Joseph Schumpeter as the president of Rongi Bank.
But having Bruce Currie accept this arrangent.
"In ti, you’ll serve as vice president of Rongi Bank, and Joseph Schumpeter can only be considered our hired gun; after he completes his mission, Rongi Bank will still need you to take it forward.
So learn well by Schumpeter’s side, just like Robert thought his abilities were insufficient, and he went to university for further education, and now he’s the United States Treasurer.
I believe you’ll also beco a successful banker in the future!"
Donnie encouraged Bruce Currie!
"Mm!"
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