Lawrence Hrebiniak - Faculty Research in Knowledge@Wharton

Bing Gives Microsoft a Boost, but Can It Compete with Google?

Wed, 05 Aug 2009 16:41:52 EST

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, 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.

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.

Biggest by Default: Toyota May Be Number One, But It Still Faces Challenges

Wed, 04 Feb 2009 17:07:39 EST

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.

Carol Bartz's Challenge at Yahoo: Choose a Path, Build a Team and Do It Fast

Wed, 21 Jan 2009 16:32:55 EST

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.

Job-less: Steve Jobs's Succession Plan Should Be a Top Priority for Apple

Wed, 07 Jan 2009 16:53:55 EST

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.

Urgent Deadline for Newspapers: Find a New Business Plan before You Vanish

Wed, 07 Jan 2009 16:53:55 EST

It was a tough year for newspapers. The owner of The Los Angeles Times and Chicago Tribune declared bankruptcy; The New York Times 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.

On the Job Training: Can Obama's Huge Infrastructure Program Really Work?

Wed, 07 Jan 2009 16:53:55 EST

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.

Bailout or Bankruptcy: What Will It Take to Get the U.S. Auto Industry Back on Track?

Wed, 10 Dec 2008 17:40:48 EST

A government plan to rescue the U.S. automobile industry with $14 billion in emergency loans to General Motors and Chrysler was approved by the House of Representatives late on December 10, but the proposal continued to face 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.

How the U.S. Government Has Mismanaged the Country

Wed, 06 Aug 2008 17:31:38 EST

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, The Mismanagement of America, Inc. 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.

Microsoft's Vista: New Horizon or the End of the Road for PC Operating Systems?

Wed, 14 May 2008 17:05:58 EST

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.

CEO Succession: Has Grooming Talent on the Inside Gone by the Wayside?

Wed, 28 Nov 2007 15:54:07 EST

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.

Google: In Search of Itself

Wed, 14 Nov 2007 15:20:43 EST

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?

Rivals Set Their Sights on Microsoft Office: Can They Topple the Giant?

Wed, 22 Aug 2007 13:17:32 EST

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?

Short-Circuited: Cutting Jobs as Corporate Strategy

Wed, 04 Apr 2007 15:37:12 EST

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.

It's Not Easy Going Green: Environmentalism May Help Your Corporate Image, but Will It Keep You in the Black?

Wed, 07 Feb 2007 15:59:14 EST

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.

Home Unimprovement: Was Nardelli's Tenure at Home Depot a Blueprint for Failure?

Wed, 10 Jan 2007 15:46:57 EST

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.

To Diversify, or Not to Diversify: What's at Stake for Online Giants in Growth Mode

Wed, 13 Dec 2006 15:19:43 EST

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?

Something Old, Something New: How Will Microsoft's Changing of the Guard Play Out?

Wed, 28 Jun 2006 15:11:00 EST

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.

All the News That's Fit to ... Aggregate, Download, Blog: Are Newspapers Yesterday's News?

Wed, 22 Mar 2006 15:54:43 EST

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.

'One for All' or 'One for One'? The Trade-off between Talent and Disruptive Behavior

Wed, 30 Nov 2005 15:55:06 EST

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.

A Month after Katrina: Lessons from Leadership Failures

Wed, 05 Oct 2005 16:04:41 EST

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.

Three Reasons Why Good Strategies Fail: Execution, Execution...

Wed, 10 Aug 2005 15:55:55 EST

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.

Got a Good Strategy? Now Try to Implement It

Wed, 06 Apr 2005 17:18:11 EST

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, Making Strategy Work: Leading Effective Execution and Change (Wharton School Publishing), 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.

Vioxx and Other Painkillers: More Confusion, Less Relief?

Wed, 30 Mar 2005 10:17:19 EST

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.

A Stumbling Lucent Tries to Get Back on Track

Thu, 22 Feb 2001 15:56:37 EST

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?

Texaco Hitches Its Star to Chevron

Wed, 08 Nov 2000 14:40:41 EST

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.