Knowledge@Wharton

India's Labor Pains

Fri, 20 Nov 2009 08:48:00 EST

India is expected to help lead the world out of recession. But will a growing number of strikes -- some leading to murderous violence, impede its industrial progress?

A Bubble in China

Thu, 19 Nov 2009 08:55:00 EST

Will a growing real estate bubble in China result in the pop heard 'round the world?

Broader Broadband

Wed, 18 Nov 2009 09:54:00 EST

Would wider access to high-speed Internet and other telecommunications services boost the economy? The FCC aims to find out.

Apollo Management's Marc Rowan: 'The Best Returns Follow Chaos'

Wed, 11 Nov 2009 16:18:47 EST

Marc Rowan, founding partner of Apollo Management, one of the world's largest private equity investment firms, makes it sound simple: Stick to the fundamentals -- that is, buy a good business at a low price -- and you ultimately will see returns. Of course, identifying those businesses is the challenge. Rowan, who was in mergers and acquisitions at Drexel Burnham Lambert before starting Apollo, spoke with Knowledge@Wharton about how Apollo makes investment decisions, the challenges private equity faces in the coming months, the recent insider trading scandals and what he looks for in new hires.

From Soup to ... Corporate Social Responsibility: Campbell's Efforts to Lead the Way

Wed, 11 Nov 2009 16:18:47 EST

Since 1869, Campbell Soup Company has transformed tomatoes, celery and carrots, among other ingredients, into mainstays of the American lifestyle. More recently, it has become known for another core competency -- its success in establishing a reputation as one of the most socially responsible companies in the U.S. During a presentation at Wharton, Campbell's Dave Stangis talked about the challenges of building support for corporate social responsibility within one's own company.

Efficient Markets or Herd Mentality? The Future of Economic Forecasting

Wed, 11 Nov 2009 16:18:47 EST

Once on the academic fringes, behavioral economics has been gaining considerable ground over the past year. While not all economists, government policy makers and corporate financiers agree wholeheartedly with behavioral economists' assertion that markets are inefficient and irrational, it's difficult in the wake of the global financial meltdown to be too dismissive of it, according to some Wharton faculty members. It's likely, they say, that future regulations will be shaped in part by both behavioral economics and the efficient market theory, which has dominated government policymaking since the early 1980s.

Avoiding the Agony of a 'Bogey': Loss Aversion in Golf -- and Business

Wed, 11 Nov 2009 16:18:47 EST

Tiger Woods and other golf superstars who stand to win millions on inch-long putts apparently are subject to the same fear and aversion to risk that can afflict investors and managers. According to new research by two Wharton faculty members, even the best golfers systematically miss the opportunity to score a "birdie" -- when a player sinks a ball in one stroke less than the number of expected strokes for a given hole -- out of fear of having a "bogey" -- or taking one stroke more than what is expected. Playing it safe, however, has its own costs -- in golf and in business, the researchers say.

CEO Terry Lundgren: A Focus on Turning 'My Macy's' into Your Macy's

Wed, 11 Nov 2009 16:18:47 EST

Terry Lundgren's experiences in retailing a generation ago recently led the Macy's CEO to come up with a new vision for how to organize the company's more than 800 stores. The concept, known as 'My Macy's,' calls on buyers and executives to focus on a small number of stores in a specific metro area as a way to offer customers more localized, personalized service. During a recent presentation at Wharton sponsored by the J.H. Baker Retailing Initiative, Lundgren talked about the nature of retailing, the role of celebrity-backed products and pop-culture figures in Macy's stores, and the challenges of selling in a recessionary economy.

Fit for the Holidays: Amazon Is Shaping Up and Shipping Out

Wed, 11 Nov 2009 16:18:47 EST

Amazon.com enters the holiday shopping season with enviable strength. The financials at the world's biggest online retailer are looking better than ever while it is finding new ways to muscle in on the competitive advantages traditionally enjoyed by conventional bricks-and-mortar retailers -- including its recent launch of same-day shipping in seven major U.S. cities. But as Amazon grows, competitors are still giving it a run for its money, according to e-commerce and marketing experts at Wharton.

Lessons from Brazil: Why Is It Bouncing Back While Other Markets Stumble?

Wed, 11 Nov 2009 16:18:47 EST

The sense of optimism in Brazil is palpable and it's not just because the country is getting ready to host soccer's World Cup in 2014 and the Summer Olympics in 2016. Brazil's economy was the first in Latin America to stage a recovery following the global economic crisis -- in the second quarter of this year. What has helped Brazil to remain so resilient while other markets are still struggling? And what can it do to maintain economic growth and become, as the World Bank predicts, the world's fifth-largest economy by 2016?

Why Insider Trading Is Hard to Define, Prove and Prevent

Wed, 11 Nov 2009 16:18:47 EST

On October 16, federal prosecutors charged Raj Rajaratnam and his hedge fund, Galleon Group, with insider trading. On November 5, 14 additional people were charged with the same crime, and prosecutors predict even more arrests in coming weeks. The Galleon case raises questions about what exactly constitutes insider trading at a time when so many market participants, such as hedge funds and other opaque investment pools, live or die on their ability to gather information competitors don't have. Wharton faculty offer their opinions.

The Lean Evolution: From Factory Floor to Service Centers -- and Beyond

Wed, 11 Nov 2009 13:33:29 EST

Toyota's legendary lean production system emerged after World War II and transformed the auto industry. Since then, lean principles have moved into every area of an organization and every industry. One Wharton professor remembers trying to talk with hospitals about lean initiatives several years ago. "They thought I was evil. They said, 'We're doctors. We help people. We are not Toyota!' Now these same institutions have chief medical officers saying, 'We want to run this place like Toyota!'"

Lean Financial Services - Cutting Costs While Reducing Risks

Wed, 11 Nov 2009 13:33:18 EST

The financial services sector has been slow to adopt lean tools and practices, but that's changing. As more banks discover the benefits of lean operations -- such as lower costs, fewer errors, faster cycle times and far greater efficiency -- wide-scale adoption by the industry is just a matter of time.

Lean Health Care: Lower Costs, Better Outcomes

Wed, 11 Nov 2009 13:33:12 EST

Could lean processes transform the U.S. health care system, with its spiraling costs and inconsistent quality? The industry's growing problems are creating a sense of urgency and a strong mandate for change. Lean's focus on cutting costs, increasing efficiency, streamlining processes, and improving patient outcomes may be just the prescription for this ailing sector.

Can Lean Co-exist with Innovation?

Wed, 11 Nov 2009 13:33:02 EST

Does lean's structure and discipline snuff out the creative spark that underlies the birth and development of great ideas? In fact, lean brings structure and predictability to innovation, and sharpens the distinction between idea generation and the development process. If a company as innovation-driven as Pixar can apply lean principles to innovation, then others can, too.

How Entrepreneurs Identify New Business Opportunities

Mon, 09 Nov 2009 10:20:48 EST

A key question that all would-be entrepreneurs face is finding the business opportunity that is right for them. Should the new startup focus on introducing a new product or service based on an unmet need? Should the venture select an existing product or service from one market and offer it in another where it may not be available? Or should the firm bank on a tried and tested formula that has worked elsewhere, such as a franchise operation? In the first of a series of podcasts for the Wharton-CERT Business Plan Competition, Raffi Amit, a professor of management at Wharton, discusses these questions and more with Knowledge@Wharton. In the process, he offers insights into how entrepreneurs can identify new business opportunities and evaluate their potential and their risks.

How Bottom of the Pyramid Strategies Are Paying Off in the Battle to End Poverty

Mon, 09 Nov 2009 10:19:10 EST

Poverty alleviation is a crucial theme at the 2009 Festival of Thinkers. Poverty is defined as the "condition of lacking basic human needs such as nutrition, clean water, healthcare, clothing and shelter because of the inability to afford them." The strategy of encouraging companies to generate profits by producing goods and services for consumers at the Bottom of the Pyramid has emerged as an important weapon in the battle to end poverty. Five years after C.K. Prahalad wrote his book, The Fortune at the Bottom of the Pyramid, he explains the impact his ideas have had on companies implementing Bottom of the Pyramid strategies in an interview with Knowledge@Wharton.

Our Endangered Planet: How to Protect and Promote Sustainable Development

Mon, 09 Nov 2009 10:18:56 EST

The title of an upcoming Festival of Thinkers panel, "Future Resources: Envisioning Sustainable Development," only begins to hint at the broad range of interconnected subjects that go into any discussion of sustainability -- ranging from ecological concerns and population control to economic disparity and social disruption. Panelists will discuss the prospects for sustainability as societies move forward in an increasingly crowded world characterized by dwindling resources, continued poverty, civil wars and climate change, among other challenges.

The Post-recessionary Global Economy: In Search of the New Normal

Mon, 09 Nov 2009 10:18:45 EST

The days of loose rules, easy credit and lax oversight, which led to excesses on many fronts, are ending. As the global economy climbs slowly towards recovery, two pressing questions remain: First, how do we prevent things from getting out of control again? And second, what is the so-called new normal? Speakers at the Festival of Thinkers in Abu Dhabi and experts at Wharton weigh in on both issues

Why Improving Global Health Care Is Everyone's Responsibility

Mon, 09 Nov 2009 10:10:20 EST

Throughout the developing world, infectious disease and chronic illnesses confront more than one billion people living in poverty. To make significant strides in global health, governments and for-profit and non-profit businesses must find a way to foster innovative, breakthrough solutions not only to treat illnesses, but also to improve the delivery of health care itself. Nobel Prize winners and global health care experts will be exploring these issues during a Festival of Thinkers panel titled, Future Well-Being: Towards a Healthier World.

Saturn: A Wealth of Lessons from Failure

Wed, 28 Oct 2009 17:19:29 EST

General Motors' decision earlier this month to scrap its Saturn brand triggered frequent retellings of the many ways in which GM missed an opportunity to recast itself and the auto industry. But other manufacturers did adopt some of Saturn's innovations, according to Wharton faculty. Indeed, they say, the Saturn story provides a roadmap for what to do --- and what not to do -- as the auto industry adjusts to the post-financial crisis world.

Lippo Group CEO James Riady: 'Money and Power Are a Blessing and a Curse'

Wed, 28 Oct 2009 17:19:29 EST

James Riady is the CEO of Lippo Group, one of Indonesia's largest conglomerates with annual revenues of some $3 billion. The Group, among the most active property developers in Southeast Asia, has expanded into China and Hong Kong and plans to invest $10 billion over the next five years in the Asia Pacific region. It also has interests in media, telecommunications, retail and health care. Fifteen years ago, Riady was responsible for the establishment of Universitas Pelita Harapan in Indonesia, and he has a strong interest in the social impact of business. During an interview with Knowledge@Wharton, Riady explained the lessons he has learned over the years from successes and failures in business and politics.

Company Stores vs. Independent Retailers: Clash or Peaceful Coexistence?

Wed, 28 Oct 2009 17:19:29 EST

Microsoft dipped its toe into retail waters this month by opening its first company store as a way to showcase the latest and greatest in PCs, Zunes and Xbox consoles. But computer companies aren't the only manufacturers moving into the retail space, says Wharton marketing professor David Bell. Whether it's handbags from Coach, shoes from Nike or suits from Ralph Lauren, consumers increasingly have the choice to buy products either at stores operated by manufacturers or from independent retailers. Bell recently co-authored a research paper looking into competition between company stores and independent retailers in the same market.