Knowledge@Wharton -- Strategic Management

What's Wrong with This Picture: Kodak's 30-year Slide into Bankruptcy

Wed, 01 Feb 2012 15:41:52 EST

When new technologies change the world, some companies are caught off-guard. Others see change coming and are able to adapt in time. And then there are companies like Kodak -- which saw the future and simply couldn't figure out what to do. Kodak's Chapter 11 bankruptcy filing on January 19 culminates a long series of missteps, including a fear of introducing new technologies that would disrupt its highly profitable film business.

Research Roundup: Team Performance, Demystifying Market Composition and the Reality vs. Hype of Sponsored Search

Wed, 18 Jan 2012 15:33:22 EST

How do interpersonal relationships affect the performance of individual team members? Why is a shopping mall composed the way it is, and how do different stores affect each other's business? Do higher-ranked sponsored search listings pay off in terms of a company's bottom line? Wharton professors Jennifer Mueller, Maria Ana Vitorino and Kartik Hosanagar, respectively, examine these issues -- and what they mean for business -- in recent research articles

Transformative Times: New Opportunities for Business in an Era of Upheaval

Tue, 03 Jan 2012 12:57:01 EST

In the 20 articles that make up this special report, students from the Joseph H. Lauder Institute of Management & International Studies explore the many ways that the business community has responded to changes in our global economy. They look at individual companies and industry trends, and analyze how startups as well as established firms are taking advantage of transformative events around the world.

Building Blocks: The Bright Future of Colombia's Cement Industry

Tue, 03 Jan 2012 12:52:55 EST

Colombia is poised to be the next Latin American growth story, ripe with opportunity for foreign investment. Heavy industries, particularly infrastructure, will be the big winners, as Juan Manuel Santos' government looks to enact new reforms that will modernize the economy. Much like a house, the foundation for the new Colombia will be built upon the cement industry. The bulk of infrastructure spending will be directed toward transportation (primarily roads) and housing, whose key input product is cement. Within Colombia, the cement industry is dominated by three key players: Argos, Cemex and Holcim.

Spain No Longer Battling the Windmills

Tue, 03 Jan 2012 12:51:30 EST

Comparing Spain's current market grasp on wind energy with Don Quixote battling the windmill in La Mancha offers a certain irony. If Don Quixote is the representation of Spanish culture, today he would no longer be battling windmills, but rather trying to figure out how to manufacture them all over the world. In exploring the expansion of Spanish multinationals that specialize in wind energy, he would find one company's logo etched on some of the most sophisticated turbines on every continent -- Gamesa Corporación Tecnológica.

'Thanks, But No Thanks' to Made in China?

Tue, 03 Jan 2012 12:50:19 EST

China, and the blossoming businesses that constitute this economic giant, have captivated the attention of the world. However, few Chinese companies have become world leaders in their field. While interest in Chinese products is growing exponentially, global consumers remain wary of products made in, or affiliated with, the Middle Kingdom.

The Groupon Effect in China

Tue, 03 Jan 2012 12:45:58 EST

In January 2011, Groupon, the world's fastest-growing company, launched its online coupon business in China, the world's fastest-growing economy. At that time, more than 2,000 Chinese group-buying clone sites were already competing aggressively in a highly saturated market. While Groupon might have pioneered the group-discount model in the Western world, the concept of group-bargaining already existed in the Chinese culture. What forces helped shape such rapid growth in this industry in China? How are group-buying companies responding to the competitive landscape? And what are the implications for Chinese consumers today?

When Engaging with Your Stakeholders Is Worth Its Weight in Gold

Wed, 20 Jul 2011 15:33:36 EST

Given two gold mines with the same amount of gold in the ground, the same cost of extraction and the same worldwide demand, why is one mine valued 10 times more than the other? Because one has local support and the other doesn't, argues Wharton professor Witold Henisz. In a new research paper, Henisz and his colleagues show how cooperating with, rather than antagonizing, external stakeholders generates sustainable shareholder value for companies around the world.

Can J.C. Penney's New CEO Reinvent the Department Store?

Wed, 20 Jul 2011 15:33:36 EST

As engineer of Apple's winning retail strategy, Ron Johnson created a juggernaut that reaped both profits and positive buzz. But can he do the same with the department store, a retail format that many feel is becoming antiquated? As the newly named CEO of J.C. Penney, Johnson will be tasked with crafting a new niche for an American institution. Experts say doing that successfully requires more than leveraging gee-whiz technology.

As New Owner of NBC Universal, Can Comcast Merge the Corporate with the Creative?

Wed, 25 May 2011 16:03:17 EST

NBC Universal is just the latest in a string of acquisitions that has transformed family-run Comcast from a single cable television operation into the largest U.S. cable television and home Internet provider. Comcast's most recent expansion will test the ability of the company's hard-nosed business culture to deliver results in the creative entertainment sphere, and comes against the backdrop of rapidly evolving technology pumping media content out across many platforms.

Building a Brand on the Smell of Mom's Kitchen: How Panera Found Success in a Down Economy

Wed, 30 Mar 2011 14:25:28 EST

Replete with comfortable chairs, free wi-fi and the smell of freshly-baked bread, Panera is not your average fast food joint. The company is one of the fastest-growing chains in the U.S., with 1,420 stores and a roughly $3 billion market capitalization. During the depths of the downturn, when most companies contracted, Panera grew in size and profits. The reason for Panera's success is simple, experts say: The chain has pursued a niche strategy, differentiating itself as a fast food restaurant that serves healthy, tasty, affordable food in a community-minded atmosphere.

M&A's Overlooked Pitfall: The False Negative

Wed, 02 Mar 2011 15:47:44 EST

Plenty of merger deals should never happen: Buyers are too often attracted to "false positives" in targets that are overvalued. Less noticed are the deals that get away, but shouldn't, because of "false negatives" -- an undervaluation based on outdated methodologies that leads to a losing bid. In this opinion piece, Wharton management professor Ian C. MacMillan and M&A experts Alexander B. van Putten and Mehrdad Baghai argue that the true value of a target company can be determined only if the buyer looks beyond current core operations to include future potential.

Risky Business Becomes Riskier: A New Playbook for How Artists Are Compensated

Wed, 16 Feb 2011 15:29:54 EST

Making a living as an artist has never been easy -- whether in film, music or publishing -- especially now that the digital revolution has transformed the business of content creation. One of the biggest shifts is in how filmmakers, musicians and writers are compensated. The trend is toward greater risk sharing with artists' marketers and publishers, and toward pay being based to a greater degree on how the product sells in the marketplace.

Strategies for a Two-speed World

Thu, 10 Feb 2011 09:00:46 EST

Competing successfully in this new decade requires companies to meet the needs of both low-growth and high-growth markets while differentiating themselves from foreign and local competitors. Building a low-cost global production network that taps into the strengths of each geographical region is critical. Also crucial to success: innovating products, processes and business models to increase margins wherever possible -- and to gain market share. Key decisions will involve looking at profit vs. growth, best price vs. best value, and new rewards systems.

From the Periphery to Prosperity: The Brazil 2014 FIFA World Cup and the City of Salvador

Wed, 26 Jan 2011 14:59:27 EST

Expected economic impact: R$183.2 billion (US$107 billion). Estimated new jobs: 710,000. Projected impact on tourism: R$9.4 billion (US$5.5 billion). As Brazil prepares to host the 2014 World Cup, the front pages of newspapers across the country offer stunning predictions that this World Cup will provide an incredible boost to the Brazilian economy. But will it? As seen with previous mega events, the huge investments required to host the event successfully do not always bring the expected economic returns or immediate increases in tourism.

Reborn and Restructured, Can the Global Auto Industry Put Customers in Drive?

Wed, 19 Jan 2011 16:05:35 EST

The talk coming out of the 2011 North American International Auto Show in Detroit (which opened on January 10 and closes on Sunday) was full of optimism about a turnaround for an industry that suffered a significant beating during the recent recession. The worldwide auto business emerging from the upheaval of recent years is much altered, with several brands changing hands and manufacturers like General Motors and Chrysler restructuring after government bailouts and bankruptcy filings. In an interview with Knowledge@Wharton, management professor John Paul MacDuffie discusses the outlook for 2011 and beyond.

Fashion or Strategy? Why Firms Are Jumping on the Sustainability Bandwagon

Wed, 19 Jan 2011 16:05:35 EST

If building a sustainable enterprise was a fashionable trend five years ago, today it is a business imperative. Forward-looking corporations have figured out that a focus on environmental, social and governmental (ESG) factors is not just a bid to burnish their image, but rather it is a necessity in today's marketplace. And if done well, it is a true competitive advantage. A panel of senior executives from consulting, banking and the chemical industries discussed this critical shift during the recent Wharton Social Impact conference.

Smooth as Silk: Product Diversification Gives Afghan Women a Competitive Edge

Wed, 12 Jan 2011 13:19:04 EST

While entrepreneurs around the world are producing unique, high-quality products, customers still often clamor for variety. Instructors at the Goldman Sachs 10,000 Women program in Kabul, Afghanistan, urge scholars to listen to their customers' needs and conduct feasibility analyses so they know how to best diversify their merchandise. These and other strategies help entrepreneurs survive in a competitive market.

Forging Deals with U.S. Partners: A Case of Mutual Benefit

Wed, 12 Jan 2011 13:18:54 EST

Hundreds of U.S. and Israeli companies have formed partnerships in recent years, and many more alliances are in the works. The deals are beneficial to both sides on several fronts. The Israelis get funding, marketing expertise, job growth and better access to the North American market. The Americans also benefit on the job front and through increased market access. In addition, they reap savings in development and production and get a chance to tap into Israel's talent for innovation. But marriages are not always smooth, experts warn, and the cultural differences in doing business sometimes get in the way.

Snails, Samples and Mr. Biggs: Negotiating and Maintaining Professional Contracts

Wed, 12 Jan 2011 13:18:17 EST

10,000 Women scholar Olusola Adegbesan networked during the certificate program at Pan African University's Enterprise Development Services and scored a contact with Mr. Biggs, a major food chain in Nigeria. She inked the deal to supply her company's rice and flour products through service, samples and repeated follow up visits, valuable strategies for small business suppliers who need to attract and maintain big-name contracts.