Knowledge@Wharton -- Strategic Management

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.

Comcast and NBC Universal: The Rise of a Content King?

Wed, 14 Oct 2009 15:33:51 EST

Philadelphia-based Comcast, the largest cable company in the U.S., has made a bid to merge its operations with NBC Universal -- home to the NBC television network, Universal Studios and popular cable channels including Bravo, USA, CNBC and MSNBC. If the deal goes through, it would create a programming giant, allowing Comcast to produce and distribute content throughout its cable networks and on web sites such as Hulu, which is partially owned by NBC Universal. Steve Ennen, managing director of the Wharton Interactive Media Initiative, spoke with Wharton marketing professor Pete Fader and Ken Shropshire, professor of legal studies and business ethics, about what the deal could mean for content distribution and for consumers.

The Disney/Marvel Marriage: Will They Live Happily Ever After?

Wed, 16 Sep 2009 16:45:37 EST

Trying to picture the edgy, ultra-macho characters of Marvel Comics (like Spider-Man or the Hulk) teaming up with Walt Disney's fairy tale princesses and cheery spokesmouse is not an easy task. Nonetheless, Wharton faculty and entertainment analysts predict Disney's $4 billion acquisition of Marvel will overcome some major challenges and allow the company to instantly enter a key market where, as of now, it has made few inroads.

Managing in an Upturn: Focus on Customers and Keep Expectations Low

Wed, 16 Sep 2009 16:45:37 EST

Even as a stream of new economic data is holding out hope for a sustained economic recovery, executives know there are no guarantees against a sudden relapse. Given this situation, how can managers take advantage of positive economic signs without jeopardizing their business should tougher times return? Wharton faculty and others offer advice on how to manage in, and profit from, a slowly recovering -- but still uncertain -- economy.

'Locals,' 'Cosmopolitans' and Other Keys to Creating Successful Global Teams

Wed, 02 Sep 2009 16:37:02 EST

Global teams are like oceans: Depending on how they are navigated, they can link the world together or split it apart. When global teams work, they tap into a company's top talent, exploit local expertise, unite far-flung groups and ramp up worldwide production. When they don't, they are divisive, spark massive miscommunication and drive global projects into the ground. Knowledge@Wharton offers a best practices guide for global teams.

Globalization of Technology Ventures: Lessons from Israel

Thu, 13 Aug 2009 12:15:33 EST

Technology is universal, and technology markets are relatively culture-insensitive. Still, the fact remains that surprisingly few high-tech startups that were conceived outside the U.S. or the world's primary technology markets have evolved into global companies. Why is that so? In this opinion piece, Gideon Tolkowsky, principal of Israel-based BME Capital Management, who has been involved in venture capital in the U.S. and Israel for more than 25 years, offers some lessons from Israeli high-tech startups.

Eyes Wide Open: Embracing Uncertainty through Scenario Planning

Wed, 22 Jul 2009 15:41:58 EST

As a result of the global financial crisis, more and more companies are being forced to make decisions in complex and uncertain environments. According to experts from Wharton and elsewhere, this is a good time for executives to use so-called scenario planning techniques. These exercises anticipate various future scenarios and develop strategic responses to each of them. As a result, experts say, even if executives can't predict the future, they can at least be better prepared for it.

How a Little 'Friction' Can Change a Competitive Landscape

Wed, 22 Jul 2009 15:41:58 EST

When developing business strategies, it is wise to think about "frictions," the forces that make it difficult for buyers and sellers to connect. Those elements -- location, convenience or lack of information -- help explain how different firms, such as a small local retailer and a national store, can coexist in the marketplace, according to research by Wharton management professor Olivier Chatain and an INSEAD colleague.

'Mustaches for Kids': Charities Adopt Private Sector Models to Tap New Funds

Wed, 24 Jun 2009 16:27:19 EST

In the wake of the global financial crisis, social enterprises are hastening their transition from the traditional donor model to rely more on market mechanisms long established in the private sector. In so doing, organizations hope to not only survive the current recession, but also to create a foundation for long-term sustainability, say Wharton faculty and executives at non-profit institutions.

DuPont CEO Ellen Kullman's Four Principles for Moving Ahead during Turbulent Times

Wed, 24 Jun 2009 16:27:19 EST

CEO Ellen Kullman has had to balance the need for immediate action to maintain DuPont's financial stability during the ongoing financial crisis, while focusing on strategic objectives that would preserve the 200-year-old company's leading market position in the future. Among the highest hurdles: Communicating with -- and motivating -- employees. Kullman was a guest speaker at the recent Wharton Leadership Conference, whose theme was: "Leading in a Dynamic and Unpredictable World."

How Hyundai Sells More When Everyone Else Is Selling Less

Wed, 10 Jun 2009 17:08:51 EST

In 2008 -- a brutal year for the auto business -- Hyundai Motor's global unit sales rose 2%, lifting revenues by 5%. In the first three months of this year, the South Korean automaker's global market share rose to 4.7%, compared to 4% a year earlier. With industry-leading guarantees, an intense focus on quality and a program to reassure buyers worried about their economic future, the once-derided company has won hearts -- and business.

Rising Giants: Industrial Clusters Are Changing the Face of Chinese Manufacturing

Wed, 03 Jun 2009 16:43:44 EST

Regional specializations have always existed in China. Tailors from the city of Cixi, for instance, controlled clothing manufacturing in Beijing for some 250 years. Now China has taken the idea to a new level by creating huge manufacturing clusters that specialize in a single industry or product. Thousands of manufacturers in Datang in Sichuan province, for instance, crank out more than six billion pairs of socks annually. But with a shifting world economy, expect manufacturing clusters in some sectors -- such as simpler textiles and toys -- to fade in importance, even as others, such as biotechnology, grow.

Discovery-driven Growth: The Only Plan Is to Learn as You Go

Wed, 29 Apr 2009 14:19:24 EST

For companies planning to launch new initiatives during uncertain times, it's important "to know from the start that the plan is wrong," according to Ian MacMillan, Wharton professor of innovation and entrepreneurship. Assumptions are what get most companies into trouble, MacMillan and co-author Rita Gunther McGrath, a professor at Columbia Business School, argue in their new book, Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity. In an interview with Knowledge@Wharton, McGrath and MacMillan describe how firms can make the most of new opportunities, even during the current downturn.

French Luxury Foods Firms Bet on Innovation While Preserving Tradition

Mon, 20 Apr 2009 21:40:09 EST

Each year, Fauchon, one of France's most celebrated luxury grocers, dresses up its best-selling éclairs for display in its haute couture collection. The autumn 2008 show featured 34 individualized éclairs photographed in the style of the best high fashion catalogues. Meanwhile, Parisians, expats and tourists line up at the celebrity Paris bakery, Poilâne, to buy the famous miche, a loaf of bread that has been made by hand since the bakery opened in 1932. What are the benefits, and risks, of these two different approaches to surviving in the toughest luxury market in decades?

Hostile Takeovers: Russian Style

Mon, 20 Apr 2009 21:40:03 EST

On August 1, 2006, one headline dominated business news around the world: A Russian court had declared Yukos, one of the largest private oil producers in the world, bankrupt. Soon, its CEO and founder, Mikhail Khodorkovsky, saw his company's assets sold off for a fraction of their value to the state-owned Rosneft Oil Company and found himself behind bars, charged with tax evasion. According to some estimates, approximately 70,000 Russian companies a year become targets of raider attacks. The expertise and tactics of these corporate raiders highlight one of the end goals of the raiding process: to provide an alternative to legitimate M&A.

Huawei Technologies: A Chinese Trail Blazer in Africa

Mon, 20 Apr 2009 21:39:49 EST

Walk into a bookstore in Beijing and you will find shelves filled with books about Huawei Technologies. As one of China's fledging multinational companies and a major force in the international telecommunications equipment industry, Huawei is rewriting the rules of competition in a global industry. According to some observers, it is the first non-state-owned Chinese company to successfully expand its operations internationally.

La Michoacana: The Story of an Orphaned Brand

Mon, 20 Apr 2009 21:39:40 EST

Anyone who has had a popsicle in Mexico is probably familiar with the La Michoacana brand. It is as ubiquitous as Burger King is to hamburgers or Dunkin' Donuts is to donuts. La Michoacana stores can be found anywhere -- from the smallest villages to the largest metropolitan cities and among Mexican immigrant communities in the United States. Although at first glance, all La Michoacana stores appear to be alike, important differences indicate that they do not belong to a single franchise. Indeed, the brand is not controlled by any one company -- which has led to long-standing disputes over brand protection, trademark enforcement and other costs of doing business in a wide-open market.

Out of Africa: The Egyptian Telecoms Challenger

Mon, 20 Apr 2009 21:39:33 EST

By all measures, the mobile telecommunications industry is rapidly approaching critical mass. More than 50 countries have a greater number of cell phone subscriptions than people. Global mega-firms such as Vodafone, Telefónica and T-Mobile now compete for dominance in an ever-shrinking list of countries that have yet to go wireless. In this rapidly evolving industry, one Egyptian company -- Orascom Telecom Holding (OTH) -- is proving that it is never too late to go global.

The Brazilian Bioplastics Revolution

Mon, 20 Apr 2009 21:39:10 EST

The production of plastics from renewable sources constitutes the next frontier in the search for ways to ease our dependency on oil and reduce our environmental footprint. The country at the forefront of these developments, however, is not commonly perceived as being a technology powerhouse. Yet Brazil is leading the way in this industry after decades of research and commitment to a technology based on sugarcane ethanol. The technology has proven to be environmentally sustainable -- and may even change the way we manufacture everything from personal care products to cars.

The Mexican Oil Dilemma: Refining Pemex

Mon, 20 Apr 2009 21:39:04 EST

Mexico is running out of gas. The world's sixth largest producer of oil and America's third largest source of crude imports faces declining production at its primary oil fields, and the well may be dry in less than a decade. Meanwhile, the structure and management of Pemex (Petróleos Mexicanos), Mexico's state-owned oil monopoly, coupled with the government's historic dependence on its revenues, have limited the country's ability to bolster its reserves. What lies ahead for Pemex and for Mexico's goal of energy independence?