http://knowledge.wharton.upenn.edu/ Knowledge@Wharton is an online resource that offers the latest business insights, information, and research from a variety of sources. Content includes analysis of current business trends, interviews with industry leaders and faculty, articles based on the most recent business research, book reviews, conference and seminar reports, and links to other websites. en-us Copyright (c) 2012 The Wharton School of the University of Pennsylvania http://www.wharton.upenn.edu/faculty/hrebiniak_lawrence.jpg http://www.wharton.upenn.edu/faculty/ 125 45 Wharton Faculty Research Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2930&source=rss When Scott Thompson was named Yahoo's new CEO effective January 9, he became the fourth person in five years to take charge of the ailing Internet giant. Experts at Wharton say that Thompson, who was previously president of eBay's PayPal unit, might be Yahoo's last hope for becoming relevant again as a player in online display advertising, a market which the media company once dominated. But his main challenge, they say, is the same as his predecessors': Define what Yahoo wants to be. Wed, 18 Jan 2012 15:33:22 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2922&source=rss Former Apple CEO Steve Jobs once warned Google co-founder Larry Page that the search giant was dangerously close to becoming another Microsoft -- that is, a company spreading itself too thin by trying to do everything. In recent years, Google has grown from being simply a search engine to having a hand in a range of sectors, an expansion that some worry will make it more difficult for innovative ideas to come to the surface. How can Google avoid some of the missteps made by Microsoft during its rapid expansion? And what can it learn from Microsoft's successes? Tue, 20 Dec 2011 16:05:55 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2859&source=rss The death of Apple co-founder Steve Jobs jolted the tech industry and prompted questions about where the visionary company goes from here. With Tim Cook now at the helm, the company is expected to shift from a focus on one figure at the top to more of a team approach. But can Apple sustain the culture of innovation that Jobs cultivated -- and continue its string of hits in an increasingly crowded market? Wed, 12 Oct 2011 14:52:54 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2852&source=rss This fall, Research in Motion (RIM) is launching an armada of new smartphone devices based on its latest BlackBerry operating system in a big bet that it can reverse an ongoing slide in market share. Once so popular among corporate customers that its products were dubbed &quot;CrackBerry&quot; by addicted users, the company has lost significant ground since the launch of Apple's iPhone and Google's Android-based devices. Can it recover? Wharton experts say it's a dangerous period for RIM, but some changes in strategy might help. Wed, 28 Sep 2011 13:16:47 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2822&source=rss By most measures, Zynga -- creator of social games such as FarmVille and Mafia Wars -- is a success. The company is profitable and attracts millions of users each day. But the solid business has one potentially fatal flaw -- its dependence on Facebook's platform and user base. Can Zynga, which recently filed for an IPO, diversify beyond the social network? And does it need to, as the Internet world becomes increasingly interconnected? Wed, 03 Aug 2011 14:33:48 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2793&source=rss Nokia and Research in Motion are the latest tech companies to be caught in an innovation gap: Both are touting &quot;next big thing&quot; smartphones that are as much as a year away, while hoping to convince customers to continue buying their current -- in some cases soon-to-be-obsolete -- devices. To minimize losses, Wharton experts say, the firms should explore new markets and pricing schemes for the old products even as they try to maintain their presence in the rapidly evolving smartphone arena. Wed, 08 Jun 2011 14:55:03 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2786&source=rss Within the next year, Facebook is expected to follow LinkedIn's lead and become a public company. Beyond speculation about what LinkedIn's recent successful IPO means for Facebook or other social media companies like Zynga, Groupon and Twitter, experts wonder whether going public will require a level of transparency from Facebook that could expose its weaknesses. Wed, 25 May 2011 16:03:17 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2744&source=rss 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. Wed, 30 Mar 2011 14:25:28 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2681&source=rss 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. Thu, 10 Feb 2011 09:00:46 EST Law and Public Policy http://knowledge.wharton.upenn.edu/article.cfm?articleid=2653&source=rss Julian Assange, the Australian founder of WikiLeaks, the controversial website that has been posting classified government documents, is now being held without bail in the U.K., awaiting extradition to Sweden on a rape charge. But sensational news aside, his site's recent release of confidential U.S. State Department cables has opened up a fundamental debate over privacy of information versus public access on the open web. It also has implications for businesses and corporations with sensitive information to shield, according to experts at Wharton and the University of Pennsylvania. Wed, 08 Dec 2010 16:38:32 EST Marketing http://knowledge.wharton.upenn.edu/article.cfm?articleid=2628&source=rss Following a series of concussions suffered by National Football League players during games on October 17, the NFL handed out fines and said it would immediately start suspending players for helmet-to-helmet hits. For the NFL, long-standing concerns about traumatic brain injury raise a number of questions, including: Was the League's response to the rash of concussions last month an over-reaction, or too little too late? And how does the resulting publicity affect the long-term viability and popularity of the game? Wed, 10 Nov 2010 14:15:08 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2620&source=rss New Hewlett-Packard CEO Leo Apotheker and non-executive board chairman Ray Lane take over the reins at the technology giant November 1, and the to-do list is daunting. Apotheker, the former CEO of business software company SAP, will have to convince doubters he is the right leader for HP, do battle with rivals such as IBM, Oracle and Apple, and set the company's long-term strategy. In addition, Apotheker must maintain the efficiency the company enjoyed under former CEO Mark Hurd, while gaining the buy-in from employees that his embattled predecessor reportedly lacked. Wed, 27 Oct 2010 13:14:17 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2597&source=rss Stephen Elop, Nokia's new CEO, has one tricky to-do list and not much time. Although Nokia is the top mobile device maker in the world, its products are seen as a step behind that of many competitors. To revitalize its brand, Wharton experts say, Nokia must in short order develop smartphones that effectively compete with Apple's iPhone and Google's Android devices, make key decisions on the future of the company's software offerings and establish itself as a player in the United States. Wed, 29 Sep 2010 15:30:23 EST Leadership and Change http://knowledge.wharton.upenn.edu/article.cfm?articleid=2585&source=rss A board's primary fiduciary responsibility is to ensure that a CEO is generating profits for shareholders, but Mark Hurd's abrupt departure from the top job at Hewlett-Packard underscores how boards of directors do not judge a CEO's performance on company prosperity alone. Rather, boards use a broad set of intangible criteria -- ranging from how well leaders are able to earn employees' trust to how well they deal with customers to how they conduct themselves off site -- as a way of evaluating success or failure. But these standards, experts say, can be extraordinarily difficult for boards to assess. Wed, 15 Sep 2010 15:42:34 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2584&source=rss It has been a battle of the balance sheets as rivals Dell and Hewlett-Packard continue to wrangle over who will win the right to acquire 3PAR, a little known data storage company. While the 3PAR bidding war, which HP is expected to win, is part of Dell's ongoing ambition to get a bigger foothold in high-margin enterprise technology services, the $53 billion company has also been chasing consumers with lackluster products. As one expert asks: &quot;Dell sees the need for diversification, but does it see the need for transformation?&quot; Wed, 01 Sep 2010 16:07:02 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2517&source=rss Growth spurts in the technology industry used to come in the form of ground-breaking startups. But the industry is maturing, and many companies are now large established firms. When these businesses want to increase their industry share, step into new markets or jumpstart their innovation engines, they often turn to mergers and acquisitions -- particularly when they can score a bargain by scooping up a former highflier that is down on its luck. But as companies in other established industries have learned, the hard work often begins after the deal closes -- and the buyer tries to get the erstwhile highflier back up in the air. Wed, 09 Jun 2010 16:48:25 EST Law and Public Policy http://knowledge.wharton.upenn.edu/article.cfm?articleid=2515&source=rss The call for a boycott of BP in the wake of its ongoing disastrous oil spill in the Gulf of Mexico is hardly surprising. The boycott, which in BP's case was proposed by consumer group Public Citizen, is a tactic that has been used for centuries by consumers as a way to express outrage. While research shows many boycotts come up short in forcing their targets to give in to the demands of protest organizers, they can have real impact in terms of lost sales and a damaged reputation. In the case of BP, however, experts say a boycott is likely to be only a nuisance when compared to the outsized legal liability the company is facing from the Gulf spill. Wed, 09 Jun 2010 16:48:25 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2479&source=rss After losing $60 billion in the last decade -- and billions more recently when a cloud of volcanic ash grounded flights across Europe -- airlines are looking to consolidate as a way to return to profitability amid continued struggles with high fuel prices, competition from low-cost carriers, and a limited customer pool that shriveled even more during the recession. But experts are skeptical about the &quot;bigger is better&quot; strategy. Many observers say the carriers have proved downright flighty at following through on making changes that improve operations and put the customer first. Wed, 28 Apr 2010 14:56:07 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=2478&source=rss In March, Apple sued rival smartphone maker HTC over patent infringements. Earlier this year, Motorola sued Research in Motion, maker of the BlackBerry, for similar reasons. And last year, Nokia sued Apple -- only to be counter-sued. According to experts at Wharton, the flurry of patent battles playing out in the smartphone arena is the mark of a young industry with billions of dollars at stake. And while companies like Apple have much to gain from aggressive patent protection, there are some potential downsides to that strategy as well. &nbsp; Wed, 28 Apr 2010 14:56:07 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2473&source=rss Asia has become the world's hottest arena for mergers and acquisitions. European and American companies are seeking a larger presence in the world's fastest-growing economies even as Asian companies with strong local currencies and ample credit are pushing to enter new markets or consolidate existing ones at home. Indeed, during the first quarter, Asian M&amp;A activity more than doubled from a year earlier while activity in the United States and Europe declined. Yet the growth of Asian M&amp;A is likely to have its rough patches, too, including legal barriers and foreign ownership restrictions, according to Wharton faculty and others. Wed, 28 Apr 2010 14:56:07 EST Health Economics http://knowledge.wharton.upenn.edu/article.cfm?articleid=2457&source=rss America's health care reform may be out of the emergency room, but its prognosis remains sketchy. Passage of the historic 2,400-page legislation by no means ended the health care debate, say Wharton experts: It just splintered one massive question mark into a lot of new big ones. As one Wharton professor noted: &quot;The current legislation is going to be in play for a good long time.&quot; But he also pointed out that the bill offers new business opportunities in such areas as medical information technology, education and methods of delivery. Wed, 31 Mar 2010 14:51:19 EST Health Economics http://knowledge.wharton.upenn.edu/article.cfm?articleid=2424&source=rss As the pharmaceutical industry comes to grips with the expiration of some $130 billion in patented products over the next four years, executives can no longer bank on a single drug like Lipitor to drive earnings. Instead, they are aiming to diversify their drug portfolios, hoping to develop products for far less than the $800 million-plus figure often cited as the price of bringing a new drug to market. According to industry experts, new paths involve innovative business models and unfamiliar risks, including allowing outsiders to see company secrets at earlier stages and mimicking biotech venture capital models. Wed, 03 Feb 2010 16:52:49 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2423&source=rss More than any other auto manufacturer, Japan's Toyota has built its name on quality. Now, the identity of the world's largest car maker is in question as it recalls millions of vehicles because they may suddenly accelerate, putting the lives of drivers and their passengers at risk. The firm will need to grapple with numerous operational, marketing, ethical, legal, political and strategic issues -- all at a time when the entire industry is struggling, experts say. As one Wharton faculty member notes: &quot;Toyota is having to stop the line at the corporate level in a big way.&quot; Wed, 03 Feb 2010 16:52:49 EST Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=2395&source=rss If the past month is any indicator, acquisitions are not only thawing but heating up. In October, Comcast made a bid to merge its operations with NBC Universal to create a cable programming giant. In early November, Kraft Foods announced a $16.5 billion bid for U.K.-based chocolate maker Cadbury -- also being sought by confectioners Hershey and Ferrero. The activity spans several sectors, including technology, with Hewlett Packard's agreement to purchase 3Com for $2.7 billion, and Google's $750 million acquisition of AdMob. What's behind this shopping spree, and is the trend likely to continue? Knowledge@Wharton spoke with Wharton management professor Larry Hrebiniak and finance professor Pavel Savor about M&amp;A strategy in a post-recession environment. Tue, 24 Nov 2009 16:13:30 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2366&source=rss 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. Wed, 28 Oct 2009 17:19:29 EST Marketing http://knowledge.wharton.upenn.edu/article.cfm?articleid=2311&source=rss Early reports show that Microsoft's new search engine, Bing, has managed to draw more users than its predecessor, Live Search. According to Wharton faculty, however,&nbsp;while Microsoft's campaign to promote Bing has been successful so far, it is unclear whether its well-funded effort will make significant inroads in a market dominated by Google. On the other hand, they believe the campaign helped pressure Yahoo into an important partnership agreement after months of fitful negotiations. Wed, 05 Aug 2009 16:41:52 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2256&source=rss 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. Wed, 10 Jun 2009 17:08:51 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2155&source=rss Toyota officially eclipsed General Motors as the world's largest automaker by sales last year, but its strength is only relative: The Japanese automaker, like its competitors, is struggling against a sharp drop-off in sales and global overcapacity. According to Wharton faculty, after years of conservative growth, Toyota accelerated its expansion in the past decade, making it harder to apply the brakes in the current downturn. The new market dynamics, which coincide with a changeover in company leadership, mean the road ahead may be especially difficult to navigate, they say. Wed, 04 Feb 2009 17:07:39 EST Leadership and Change http://knowledge.wharton.upenn.edu/article.cfm?articleid=2142&source=rss New Yahoo CEO Carol Bartz has a long to-do list -- chart the company's strategy, weigh a potential search partnership with Microsoft, boost morale and round out her management team -- and not much time to deliver amid a weak economy that is hurting online advertising, say experts at Wharton. Wed, 21 Jan 2009 16:32:55 EST Leadership and Change http://knowledge.wharton.upenn.edu/article.cfm?articleid=2134&source=rss Companies with strong corporate cultures can usually count on continued success if they can seamlessly transfer power to an executive from a strong bench of managers. But selecting the successor to Apple CEO Steve Jobs will be tricky, given the degree to which he is tied to Apple's identity, say Wharton faculty. Wed, 07 Jan 2009 16:53:55 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=2130&source=rss It was a tough year for newspapers. The owner of <em>The</em> <em>Los Angeles Times </em>and <em>Chicago Tribune</em> declared bankruptcy; <em>The New York Times</em> borrowed against its headquarters and even accepted ads on its front page. Detroit's two dailies announced the end of home delivery on all but three days of the week. According to Wharton faculty, if newspapers can't find a new business model quickly, they may soon be printing final editions. Wed, 07 Jan 2009 16:53:55 EST Law and Public Policy http://knowledge.wharton.upenn.edu/article.cfm?articleid=2129&source=rss President-elect Barack Obama's infrastructure plan has drawn considerable debate, but mostly over the details -- the size of the stimulus program, how to structure the plan to create the most jobs in the shortest time, and how to administer such a large program to limit corruption and pork-barrel projects. The bigger questions remain unanswered, including to what extent new jobs will actually be created, and how all this spending will affect the government's long-term debt. Wed, 07 Jan 2009 16:53:55 EST Law and Public Policy http://knowledge.wharton.upenn.edu/article.cfm?articleid=2115&source=rss A government plan to rescue the U.S. automobile industry with $14 billion&nbsp;in emergency loans to General Motors and&nbsp;Chrysler was approved by the&nbsp;House of Representatives late on December 10, but the proposal continued to&nbsp;face&nbsp;stiff opposition from Senate Republicans. While the lifeline loans would give the Detroit automakers some breathing room, legislators and auto executives remain under enormous pressure to come up with a plan to resolve the industry's deep structural and management problems. Wharton faculty and other experts discuss the merits of the bailout proposal and what the potential alternative -- bankruptcy -- could mean. Wed, 10 Dec 2008 17:40:48 EST Law and Public Policy http://knowledge.wharton.upenn.edu/article.cfm?articleid=2023&source=rss America has been failed by its government, and the nation now faces economic and security catastrophes unless its leaders change their ways, Wharton management professor Lawrence G. Hrebiniak concludes in his new book, <em>The Mismanagement of America, Inc.</em> He directs his severest criticism at the government's supervision of the Social Security Trust Fund and an intelligence infrastructure in which various agencies are no better at communicating with each other than they were before the September 11, 2001 terrorist attacks. Wed, 06 Aug 2008 17:31:38 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=1958&source=rss After Microsoft announced on May 3 that it will drop its $44.6 billion bid to acquire Yahoo, many -- including experts at Wharton -- declared the decision to be a smart move. Microsoft, they say, has more pressing issues, including the need to make its flagship operating system Vista more popular among customers as it competes for attention against its predecessor, Windows XP, and rivals such as Apple's OS X. Wed, 14 May 2008 17:05:58 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=1895&source=rss <span style="FONT-SIZE: 10pt; FONT-FAMILY: verdana">On Friday, February 1, Microsoft announced it was making an unsolicited bid to acquire Yahoo for $44.6 billion in cash and stock, a 62% premium over Yahoo's stock price at the time. Yahoo is officially &quot;evaluating&quot; the offer and, according to reports, is talking to other companies as possible suitors. Meanwhile, Google seems determined to derail the deal, stating that it finds the proposed acquisition &quot;troubling&quot; and offering to help Yahoo come up with other options. Does the deal make sense, and if it goes through, how difficult will it be to meld these two giant technology companies into one? Knowledge@Wharton spoke with Wharton management professors Larry Hrebiniak and David Hsu to get their views on Microsoft's offer.</span> Wed, 06 Feb 2008 15:51:59 EST Leadership and Change http://knowledge.wharton.upenn.edu/article.cfm?articleid=1845&source=rss <SPAN style="font-size: 10pt; font-family: verdana">The recent departures of two chief executives -- Stanley O'Neal of Merrill Lynch and Charles Prince of Citigroup -- in the wake of major financial losses at their firms, have focused renewed attention on the issue of succession planning. Published reports speculated that both positions would be filled by outside candidates, and on November 14, Merrill Lynch announced that it had chosen John Thain, CEO of NYSE Euronext, to succeed O'Neal. While such a move is not surprising for a board wanting to signal a fresh start to investors, Wharton faculty say that, increasingly, companies are looking to fill top spots with external candidates, while spending less time on grooming future leaders and managing talent in general.</SPAN> Wed, 28 Nov 2007 15:54:07 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=1839&source=rss <SPAN style="font-size: 10pt; font-family: verdana">In a span of four days earlier this month, Google launched an initiative to enable social networking tools to work across dozens of web sites and rounded up 33 partners to develop software to power a new generation of cell phones. While these efforts illustrate Google's determination to keep expanding its territory, they also increase the challenges faced by the $200 billion company. And they pose a question that seems to crop up more and more these days: Where is Google headed?</SPAN> Wed, 14 Nov 2007 15:20:43 EST Managing Technology http://knowledge.wharton.upenn.edu/article.cfm?articleid=1795&source=rss <SPAN>It's open season on Microsoft Office. Google is distributing Sun Microsystems' StarOffice and also has its own web-based productivity suite. Apple has a new spreadsheet called Numbers to compete with Microsoft's Excel. Open source suite OpenOffice, along with several web-based products, are attacking as well. All these challengers emerge at a time when Microsoft's dominance in productivity software -- Microsoft Word, PowerPoint and Excel -- remains strong. So why try to overthrow the leader? And how vulnerable is Microsoft to this assault?</SPAN> Wed, 22 Aug 2007 13:17:32 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=1703&source=rss <SPAN style="font-size: 10pt; font-family: verdana">When Circuit City announced last week that it was laying off 3,400 workers so it could rehire new ones at lower salaries, it raised the question of just what strategic benefits the company -- or any company -- expects to achieve through employee downsizing. Clearly these benefits depend on the underlying strength of the organization and the specific reasons behind the cost-cutting, but most experts agree that unless layoffs are part of a well-planned strategy, the move could cause as many problems as it was intended to cure.</SPAN> Wed, 04 Apr 2007 15:37:12 EST Law and Public Policy http://knowledge.wharton.upenn.edu/article.cfm?articleid=1653&source=rss <SPAN style="font-size: 10pt; font-family: verdana">On February 2, a long-awaited report from the Intergovernmental Panel on Climate Change (IPCC) was released citing "unequivocal" proof of global warming. Meanwhile, some of the biggest corporations in the world, including Wal-Mart, Ford, General Electric and BP, have adopted highly visible "green" strategies. But what does "going green" mean for the bottom line? Whether motivated by desire to do what is right, or to polish their public image and fend off government regulation, companies can profit from environmental initiatives, according to Wharton faculty and analysts.</SPAN> Wed, 07 Feb 2007 15:59:14 EST Leadership and Change http://knowledge.wharton.upenn.edu/article.cfm?articleid=1636&source=rss <span style="FONT-SIZE: 10pt; FONT-FAMILY: verdana">After years of a declining stock price, Home Depot announced the resignation of CEO Robert Nardelli on January 3. Wharton faculty members and other experts say Nardelli, a talented former executive at General Electric who came within a hair's breadth of replacing Jack Welch as head of the giant conglomerate, brought the wrong toolbox to the job after he was recruited for Home Depot's top spot in December 2000. With strategic missteps, an outsized compensation contract and a knack for alienating employees and shareholders, Nardelli turned out to be a star-crossed leader.</span> Wed, 10 Jan 2007 15:46:57 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=1624&source=rss <SPAN style="font-size: 10pt; font-family: verdana">Amazon plans to sell computing power like a utility company sells electricity. Google is building a suite of productivity software programs connected to the web to take on Microsoft. And Yahoo has launched or acquired so many properties that they run the risk of competing with each other. Such efforts could represent new growth areas and smart diversification moves. Or they could prove to be costly distractions. The big question: Should a company stay focused on its core competencies, or should it diversify to keep up with, or attempt to surpass, its peers?</SPAN> Wed, 13 Dec 2006 15:19:43 EST Leadership and Change http://knowledge.wharton.upenn.edu/article.cfm?articleid=1512&source=rss <SPAN style="font-size: 10pt; font-family: verdana">Ray Ozzie is in. Bill Gates is heading out (but not entirely). And Steve Ballmer is staying right where he is (at least for now). What does this game of musical chairs among the members of Microsoft's high command portend for the world's biggest software company? Far from being a source of confusion and uncertainty, Gates' recently announced decision that he will relinquish his full-time, day-to-day involvement in the company in July 2008 may be just the breath of fresh air needed for a firm facing major challenges to its core business, according to Wharton experts. At the same time, it's not yet clear just how successful Gates will be in removing himself from a company that has been his life for three decades.</SPAN> Wed, 28 Jun 2006 15:11:00 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=1425&source=rss <SPAN style="font-size: 10pt; font-family: verdana">The recent sale of Knight Ridder, the country's second-largest newspaper chain, to McClatchy follows one of the most difficult years the industry has had -- declining circulation, job losses and falling stock prices. Newspapers, it would seem, have two big strikes against them: They are in a mature industry and they are a textbook example (stockbrokers are another) of an intermediary between sources of information and customers -- a role that is being increasingly challenged by the Internet. To remain competitive in the coming years, say Wharton faculty and others, daily newspapers will have to strengthen their efforts to attract younger readers, make more imaginative use of the Internet, and develop stories, mostly local in nature, that better meet the needs of time-pressed subscribers.</SPAN> Wed, 22 Mar 2006 15:54:43 EST Human Resources http://knowledge.wharton.upenn.edu/article.cfm?articleid=1322&source=rss <SPAN style="font-size: 10pt; font-family: verdana">The talk of the National Football League in recent weeks has been Terrell Owens, the talented wide receiver who was let go by the Philadelphia Eagles because of repeated disruptive behavior that alienated teammates, coaches and fans alike. Although the saga of T.O. -- as he is familiarly known -- dominated the sports pages for days on end, coverage of his relationship with the Eagles' organization could just as easily have found a home between the covers of an academic management journal. Faculty members at Wharton and other experts say Owens is a classic case of a star employee who, because of his immense talent, was given wide latitude even though he engaged in eccentric (at best) and abusive (at worst) behavior. How employers view the trade-off between talent and disruptive behavior sends a powerful message about teamwork in an organization's culture, they say.</SPAN> Wed, 30 Nov 2005 15:55:06 EST Leadership and Change http://knowledge.wharton.upenn.edu/article.cfm?articleid=1289&source=rss <SPAN style="font-size: 10pt; font-family: verdana">Hurricane Katrina not only devastated the city of New Orleans and much of the Gulf Coast of the U.S., it initiated a bitter debate about the leadership -- or lack thereof -- exhibited by government officials before, during and after the storm. Called into question have been the actions of an array of leaders: President Bush, Louisiana Gov. Kathleen Babineaux Blanco, New Orleans Mayor Ray Nagin, Homeland Security Secretary Michael Chertoff and former Federal Emergency Management Agency director Michael Brown. To identify some of the leadership challenges raised by the New Orleans disaster, Knowledge@Wharton interviewed two Wharton faculty members and a former Wharton vice dean who is now dean of the business school at Arizona State University.</SPAN> Wed, 05 Oct 2005 16:04:41 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=1252&source=rss <SPAN style="font-size: 10pt; font-family: verdana">From Vivendi to Webvan, the shortcomings of a bad strategy are usually painfully obvious -- at least in retrospect. But good strategies fail too, and when that happens, it's often harder to pinpoint the causes. Yet despite the obvious importance of good planning and execution, relatively few management thinkers have focused on what kind of processes and leadership are best for turning a strategy into results. Experts who study strategy offer some tips for improving execution.</SPAN> Wed, 10 Aug 2005 15:55:55 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=1173&source=rss <SPAN style="font-size: 10pt; font-family: verdana">For nearly 30 years, Wharton management professor Lawrence G. Hrebiniak has taken the art of business strategy and put it under a microscope. Over time, he has brought one critical element into irrefutable focus: Creating strategy is easy, but implementing it is very difficult. In his new book, <I>Making Strategy Work: Leading Effective Execution and Change </I>(Wharton School Publishing<I>), </I>Hrebiniak presents a comprehensive model to help business leaders bridge the gap between strategy making and successful strategy execution. He challenges executives to recognize that making strategy work is more difficult than setting a strategic course - but also more important -- and he documents the obstacles that get in the way of successful performance.</SPAN> Wed, 06 Apr 2005 17:18:11 EST Law and Public Policy http://knowledge.wharton.upenn.edu/article.cfm?articleid=1151&source=rss <SPAN style="font-size: 10pt; font-family: verdana">The latest development in the controversy over the class of drugs known as Cox-2 inhibitors -- including Vioxx, sold by Merck, and Celebrex and Bextra, sold by Pfizer -- came last week when an advisory panel of the federal Food and Drug Administration ruled that these drugs' potential benefits outweigh their risks for some patients and should be allowed back on the market, with certain restrictions. Far from being resolved, the issue continues to raise questions about the nation's drug-testing and regulatory system and is another blow to the once-unassailable pharmaceutical industry, according to Wharton faculty.</SPAN> Wed, 30 Mar 2005 10:17:19 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=310&source=rss A year ago, Lucent Technologies could boast of a soaring stock price, a stellar reputation and enviable growth in its worldwide operations. Today the company has a new (interim) CEO, its stock has tanked, thousands of employees are being laid off and a reorganization is underway. What happened? And what’s the prognosis? Thu, 22 Feb 2001 15:56:37 EST Strategic Management http://knowledge.wharton.upenn.edu/article.cfm?articleid=263&source=rss When Texaco agreed to be acquired by Chevron earlier this month, the deal reflected what has become a new reality in the oil business: That big oil companies need to be even bigger today to compete globally, and the way to get there is through economies of scale. Look for consolidated corporate functions, some layoffs, new synergies and sustained long-term growth. And the impact of the new ChevronTexaco on gas and home heating oil bills? It’s too soon to tell, say Wharton faculty members and a Wall Street analyst, but it’s one area government antitrust economists are sure to scrutinize before approving the deal. Wed, 08 Nov 2000 14:40:41 EST