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The Journal has been punished by a recession that hit its core franchises, technology and financial advertising, and she must demonstrate the business acumen to make The Journal into a global force, finding new revenue to cushion it against such cyclical beatings.
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"You can definitely build great companies elsewhere, but I have not seen anyplace in the world that builds true global franchises — technology-based franchises — like this place does," said John O'Farrell, a partner at the venture capital firm Andreessen Horowitz, based in Menlo Park, Calif.
Even with the emerging competition from the iPad, Windows remains one of the greatest franchises the technology industry has known, accounting for $4.6 billion in sales during the most recently reported quarter.
Companies with big franchises in technology or "niche franchises that can be expanded to provide significant growth" are the qualities Finch looks for during periods of interest rate volatility.
When he arrived at CSFB, says Guy Moszkowski, an analyst at Merrill Lynch, the firm was listing under an ill-timed, ill-priced, ill-advised merger; its franchise in technology underwriting had crumbled beneath a market crash; and its most prominent investment banker, Frank Quattrone, was facing charges that would eventually place him behind bars.
Apple said its net income fell 18 percent in its fiscal second quarter, as one of the most successful technology franchises in recent years, the iPhone, showed signs of slowing and other, less profitable products began to make up more of its sales.
For Microsoft, the PC promises to remain a powerful business and technology franchise for years to come.
"It demonstrates that they do still have some technology franchise value, and that they can still commercialize a product," said Anthony M. Maramarco, managing director of the David L. Babson Company, an investment company that holds Xerox shares.
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