Knowledge@Wharton -- Strategic Management

On Wall Street, Netflix Is a Comeback Kid -- But Can It Stay on Top?

Wed, 05 Jun 2013 14:57:58 EST

Almost two years ago, Netflix seemed to have bottomed out. The streaming and DVD rental company raised its prices, resulting in a mass exodus of subscribers, while also launching an ill-fated attempt to separate its two businesses. Yet the firm seems to have bounced back, emerging as the best-performing stock in the S&P 500 index during the first quarter of this year. Wharton experts and others say Netflix achieved this by focusing on its core customer base and committing to a long-term strategy. But in a highly competitive business, they add, innovation remains key.

Today's Forecast for the Weather Business: Increased Revenues and a Focus on Innovation

Wed, 10 Apr 2013 15:19:46 EST

Everybody talks about the weather, but these days a lot of people are also figuring out how to make money off it. In many different ways -- on cell phones, at the B2B level, as a hedge tool -- weather is assuming a prime spot in the most innovative parts of the economy.

How Manu Chandaria Mastered the African Market

Wed, 30 Jan 2013 14:51:29 EST

Africa is the next frontier for global business, presenting a rare growth opportunity in a stagnant world. But navigating this complex continent with more than 1 billion people can be exceedingly difficult, and many businesses have failed to make a lasting impression in the region. Kenyan business tycoon Manu Chandaria, chairman and CEO of the multi-billion dollar privately held Comcraft Group, explains in an interview with Knowledge@Wharton how he mastered the African market and how others can follow his lead. (Video with transcript)

Barnes & Noble, the Last Big Bookseller Standing: But for How Long?

Wed, 16 Jan 2013 15:25:48 EST

After a disappointing holiday season, Barnes & Noble leadership must decide how to retool its strategy to compete with online behemoth Amazon.com. The bookseller has tried to forge a strong digital arm through its Nook e-readers, but Wharton experts say the chain is caught between the need to bolster its in-store experience, and the drive to keep up in an ever-growing tablet market as readers increasingly turn away from printed books.

The Lauder Global Business Insight Report 2013: Building Blocks for the Global Economy

Wed, 02 Jan 2013 13:16:28 EST

In this special report, students from the Joseph H. Lauder Institute of Management & International Studies present new perspectives on some of the latest developments in the global economy.

Is the End of the German Beer Industry Near?

Wed, 02 Jan 2013 12:41:10 EST

Germany's beer industry is shrinking -- for a multitude of reasons. The country is undergoing significant demographic changes characterized by a rapidly aging population and low fertility rate. Moreover, the frequency of beer consumption is falling even as beer is viewed by some consumers as a low-end and high-calorie drink. Indeed, many Germans these days prefer wine to beer. But the German beer industry is not disappearing, and some experts suggest a number of steps that can be taken to shore it up.

Multinationals from Emerging Markets: Making a Virtue out of Necessity

Mon, 17 Dec 2012 11:56:57 EST

In recent times, emerging markets have attracted a great deal of attention from the rest of the world because they have become the motors of global economic growth. This has been accompanied by two trends: a boom in investment from corporations in developed nations, and the rise of homegrown multinationals. A recent book, co-authored by Wharton professor Mauro Guillen -- Emerging Markets Rule: Growth Strategies of the New Global Giants -- analyzes the winning strategies of emerging multinationals as well as the lessons that can be learned from today's more globalized distribution of power.

'Kill the Company': Identify Your Weaknesses Before Your Competitors Do

Mon, 17 Dec 2012 11:42:03 EST

For many, implementing an innovation strategy, which requires changes within an organization, means adding layers of new processes. Lisa Bodell, author of Kill the Company: End the Status Quo, Start an Innovation Revolution, argues that there are straightforward ways to make change without bogging down the organization. Knowledge@Wharton spoke with Bodell recently about her approach to getting companies to face their vulnerabilities, why taking risks is essential and why small changes make all the difference. (Video with transcript)

Slippery Negotiations: The Give and Take of Oil Contracts in Foreign Countries

Tue, 20 Nov 2012 13:50:18 EST

When oil prices spiraled much higher in global markets between 2003 and 2008, the governments of several oil-producing nations responded by seizing the local assets of independent oil companies that had contracted to operate in their territories. What kinds of contracts between the governments of oil-rich nations and international oil companies have been the most effective in minimizing that risk? And how can contracts be structured to benefit both local governments and foreign investors? Recent Wharton research provides some answers.

GM's Daniel Ammann: Driving 'One of the Great Corporate Transformations of All Time'

Wed, 24 Oct 2012 15:23:19 EST

The theme of the recent 2012 Wharton Management Conference -- "Changing the Game: Leadership in Crisis" -- is an apt one for the auto industry. Daniel Ammann, CFO of General Motors, addressed leadership issues in a keynote presentation at the conference and in a podcast with Wharton's John Paul MacDuffie, during which he discussed upcoming product launches, the struggling auto industry in Europe and a strong partnership in China. (Podcast with transcript)

Will Buying a Hospice Keep the Washington Post Co. Off Life Support?

Wed, 24 Oct 2012 15:23:18 EST

The Graham family is looking for ways to support the storied Washington Post newspaper, including pushing into a new business -- health care. Such diversification may be necessary, experts say, with the continued decline of the revenue model for print media and the shrinking of the Washington Post Co.'s Kaplan education business amid questions about its business practices.

Should Manufacturing Jobs Be 'Re-shored' to the U.S.?

Wed, 26 Sep 2012 14:34:05 EST

At a time when the word "outsourcing" has become synonymous with "unpatriotic" for many American voters, General Electric, Dow Chemical and other companies are opting to bring back a portion of their product manufacturing -- along with a sizeable number of jobs -- to the U.S. Why are these firms placing a huge bet on what some analysts are now calling "re-shoring"? How many manufacturers are likely to follow in their footsteps? And what factors should global managers take into consideration when they decide whether or not to make such a move?

Can Free Online Courses Transform the Higher Education Industry?

Wed, 20 Jun 2012 13:53:13 EST

Amid a sputtering recovery that has highlighted the dearth of qualified workers in particular segments of the economy, many in the business community view free massive online open courses (MOOCs) as a key part of the solution. But others worry that students who rely only on these courses will miss out on the benefits that a campus environment can provide.

First-class Mess: Saving the U.S. Postal Service

Wed, 20 Jun 2012 13:53:13 EST

Like many large, once successful organizations, the United States Postal Service (USPS) failed to adapt to sweeping technological changes that have altered how Americans do everything from paying bills to communicating with friends and family. With the USPS facing a possible cash crunch this fall, the service is scrambling to cut costs, and legislators in Washington, D.C., are debating a new law that would transform the organization. The question now is whether the overhaul of the postal service will position it to survive in the decades ahead, or whether it will continue on its current path to irrelevance.

Changes Needed at Avon Are More Than Cosmetic

Wed, 25 Apr 2012 15:51:05 EST

Sherilyn McCoy, Avon Products' new CEO, faces a daunting list of challenges: a three-year internal investigation into charges of government bribery in China; an SEC investigation into alleged leaks to analysts; possible takeover offers from two different suitors, and a stock that lost nearly half its value in 2011. Wharton faculty offer a roadmap for getting Avon back on its feet.

Pop Quiz: Can Indra Nooyi Revive PepsiCo?

Wed, 28 Mar 2012 16:01:53 EST

When Indra Nooyi became CEO of PepsiCo in 2006, she unveiled a bold plan to introduce wholesome offerings into the company's line of sugary beverages and snacks. But observers say the strategy has amounted to a case of too much, too soon, and now the company must come back from years of flat earnings and waning consumer interest in its products. Recently, PepsiCo's board made a series of leadership changes that indicate Nooyi might be on her way out. How can Pepsi regain the confidence of investors and customers?

The M&A Market: All the Right Conditions, but No Buyers

Wed, 28 Mar 2012 16:01:53 EST

Despite sizable amounts of cash on hand, record-low interest rates and countless undervalued companies seeking buyers, the merger and acquisition landscape remains bleak. Nor is M&A activity expected to pick up any time soon, given ongoing uncertainty related to the U.S. economy, the upcoming presidential election and the debt crisis in Europe, according to Wharton observers and other experts.

The Role of Identity in Successful Post-merger Integration

Wed, 29 Feb 2012 15:42:30 EST

In the world of mergers and acquisitions, the goal is to take two (or more) companies and seamlessly integrate processes, products and people. When trying to pull off a successful deal, however, many senior executives focus their attention on the financial aspects of mergers and fail to consider their psychological implications, Wharton management professor John Kimberly says. In a new paper, Kimberly and his co-author discuss the common pitfalls that firms make in their efforts at identity integration and offer four approaches for making deals work on an emotional level.

Patients versus Profits at Johnson & Johnson: Has the Company Lost its Way?

Wed, 15 Feb 2012 15:29:43 EST

For a corporate icon long held up as the gold standard in business ethics, Johnson & Johnson has suffered some stunning setbacks in recent years. Among the headaches: a seemingly endless string of product recalls, safety issues with the company's artificial hips, and lawsuits brought by numerous states over the marketing of its anti-psychotic medication. Critics wonder whether CEO William Weldon will be able to convince consumers and investors that J&J can regain its once stellar reputation.

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.