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The FORTUNE Preview Guide

A biweekly guide produced for members of the FORTUNE Education Program.

"Drink Wine and Live Longer"

Cover Date: February 5, 2007
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COURSE CONNECTOR
Course Connector

ARTICLE SUMMARIES AND QUESTIONS

"Build 'Em, Cowboy," pp. 25-28: Former NFL running back Emmitt Smith is moving his feet to a whole new rhythm. Having achieved super stardom both on the football field and the dance floor (as last season's winner on Dancing With the Stars), Smith is developing his next passion: real estate. He's teamed up with Roger Staubach, another Dallas Cowboys legend, to create Smith/Cypress Partners LP. Owning 51% of the venture, Smith/Cypress is developing underutilized properties in densely populated areas, not unlike a venture started by another sports great, Earvin "Magic" Johnson, whose company has built movie theatres, Starbucks, and restaurants in urban areas. Early in his football career, Smith was keenly aware of his eventual retirement, so he shadowed business contacts in the off-season to "watch and learn" how they conducted business. Having recently helped close a deal with Mervyn's department store in Phoenix, Smith has access to $55 million in capitol and appears poised to score big again.

This article explains how passion and purpose can create success for anyone with an entrepreneurial spirit.

Discussion Questions:

  1. What are some characteristics driving Smith's success? Is it purely star power or are other factors at play?


  2. What are the essential elements of a successful entrepreneurial venture? Do you think you have what it takes? Why or why not?


  3. What could be the pros and cons of hiring a famous entertainer or sports figure to run your business? Do the risks outweigh the rewards or vice-versa?

"Want to Live Forever?" pp. 68-80: Many of us have heard the stories that drinking one glass of red wine a day may prevent heart disease as well as other problems associated with the aging process. One biotech company, Sirtris Pharmaceuticals, based in Cambridge, Mass., has taken that idea to the next level by concentrating its research efforts on the benefits of resveratrol, a chemical found in trace amounts in the skin of red grapes. Former venture capitalist Christoph Westphal and Harvard medical school researcher David Sinclair have joined forces to examine the far-reaching effects resveratrol, which could potentially target diseases that accompany the aging process, such as weight gain, heart disease, diabetes, and Alzheimer's. Tests show that resveratrol activates a chain reaction at the cellular level, eventually generating new mitochondria, essentially replacing old ones that burned out while producing energy for an aging body. Ingesting highly concentrated does of resveratrol is not unlike replacing your home's older furnace with a new one offering improved efficiency and longer life. While adamant that it's not an anti-aging pill and many more trials are to come, Westphal and Sinclair remain cautiously optimistic about the amazing potential of a little pill.

The careful management of Sitris's operations keeps this exciting biotech company on track and on goal to create what could be the key for combating the signs of aging.

Discussion Questions:

  1. Describe some of the age-related ailments that resveratrol claims to combat. Do you think it's probable that such a wide-range and potentially life-altering drug will be developed, approved and released in your lifetime?


  2. Aside from the obvious benefits, what might be the possible downsides to a pill that effectively wards off old age?


  3. If you were a venture capitalist, would you choose to invest in biotech or homeopathic remedies instead? Explain your answer.

"The New Newt Thing," pp. 82-90: Former House Speaker Newt Gingrich has big plans for the future, and they include the word "President." And, in case you haven't heard, his plans aren't that far-fetched, either. Gingrich runs a for-profit think tank, the Center for Health Transformation, which gets him in front of anyone who's fed-up with today's driving issues, including the current state of this country's health insurance. His vision for the health care crisis includes a healthy dose of competition and easier access to information, such as comparison databases on everything from drug prices to effective emergency care. Gingrich also has grand ideas for Iraq (enact a "Marshall Plan" for reconstruction), religion (keep God in the Pledge of Allegiance), and immigration (declare English as the national language). But don't expect him to make an official bid for Presidency until sometime closer to September. Gingrich has instead chosen a grass-roots approach, hoping that his astute logic and reasoning will resonate enough with the public that they won't have any other choice but to nominate Gingrich for America's next President.

This article offers insight into Gingrich's goals to change how the country not only thinks, but also acts — no small tasks for a Presidential hopeful.

Discussion Questions:

  1. Do you agree with Gingrich's plan for a health-care revolution? Why or why not?


  2. Based on information presented in the article, how does Gingrich's campaign for the Presidency mirror that of Abraham Lincoln?


  3. How do you feel about Gingrich for President? Do you think this former Republican Speaker of the House has a chance with today's Democratic majority?

"Shell Shakedown," pp. 92-100: It might be frigidly cold on Russia's Sakhalin Island, but the dispute over oil and gas rights there is heating up. Sakhalin Island, just north of Japan off Russia's coast, is rich in oil and gas reserves and is quickly becoming a hotbed of mining activity. Output from Shell's LNG plant is sold out for the next 20 years and its success could easily jumpstart 20 additional years of economic development to the area. But Shell officials are being battered by the Russian government, which feels it got the short end of the stick in the 1996 production-sharing agreement, as well as by the local Sakhalin Environment Watch, which has valid concerns about protecting nature reserves and marine life. Costs have spiraled out of control, putting a bad taste in everyone's mouth. It seems that no matter who ends up in charge of Shell's Sakhalin project, they'll have an uphill battle against a growing wave of local and national discontent.

This classic case of "large international company vs. small-time locals" features typical elements of greed, mismanagement, and outright bad manners.

Discussion Questions:

  1. What are the environmental concerns surrounding oil and gas production on Sakhalin Island? Are they "run-of-the-mill," or is there a real crisis happening?


  2. What do you think the future holds for the residents of Sakhalin Island, who have to pay $12 for a five-minute taxi ride and $70 to enter a nightclub? What would SEIC executives have to do to make amends with the local people without sacrificing profits?


  3. Defend Royal Dutch Shell's original 1996 agreement with Russia. What arguments can you offer for how it has properly managed it Sakhalin project over the past decade? Is it reasonable that SEIC employees should earn $1,000 a day versus the $300 a month earned by the locals?

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