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The Crisis and the CFO
At a recent Wharton Finance Conference, Morgan Stanley's newly named CFO cited progress and challenges since the terrifying early days of the financial crisis.
TARP Sees Sharp Turnaround
Estimated TARP fund losses tumble by $200 billion. Is it a real savings?
Stepping on the Gas
With top-level shakeup, GM shows --it is is serious about change.
'Keep the Heritage of the Brand Intact': Tommy Hilfiger on Weathering the Ups and Downs of Retail Fashion
Tommy Hilfiger's first business, started when he was still a teen, ended in bankruptcy. But the designer's namesake clothing label stayed alive through many ups and downs by delivering American styles that were both premium and affordable. It's a strategy that has served the company well during the global recession, Hilfiger said during a keynote address at the recent Wharton Retail Conference.
Wireless Technology: The Birds and the Bees ... and 4G
Just when consumers thought they had their 3G wireless gadgets all figured out, it's now time to start getting a grip on the fourth generation of wireless technology -- which will be much faster and far more disruptive than anything we have experienced before, according to Scott Snyder in his recent Wharton School Publishing book titled, The New World of Wireless: How to Compete in the 4G Revolution. In an interview with Knowledge@Wharton, Snyder, who is president and COO of consulting firm Decision Strategies International, predicts 4G will revolutionize the way we work and play by creating "one giant wireless ecosystem" that buzzes with innovation.
It's a Long Way to 4G Nirvana
Spurred by the data consumption of devices like Apple's iPhone, Motorola's Droid and the latest smartphones, wireless carriers are planning to upgrade their networks. Companies such as Verizon, AT&T and others have announced ambitious plans to make fourth generation (4G) services available to their customers over the next two years, enabling a wide range of new applications involving rich media such as video. Still, experts at Wharton and elsewhere note that 4G will take time to become a mass market phenomenon, in part because wireless spectrum is in short supply.
Geography Lesson: Why Internet Retailers Should Pay Attention to Where Potential Customers Live
While the Internet holds immense promise for reaching retail customers far beyond traditional trading areas, new Wharton research indicates that old world dynamics, such as neighbors sharing word-of-mouth recommendations, can still have powerful effects on Internet sales.
Getting Stuck in the Grass (and Elsewhere): Women Entrepreneurs Say Flexibility Is Key to Success
Inflexibility toward change can trap a business in a web of inertia. During a panel discussion at the recent Wharton Women Business Conference, four female entrepreneurs -- heads of companies that include a designer dress rental service and a fundraising project to promote AIDs treatment and research -- said compromise and a willingness to listen to critics are critical for long-term, positive growth.
'Tarzan Economics': If Music Is Free, How Do Artists Get Paid?
Over the past decade, the music industry launched hundreds of lawsuits against consumers in an attempt to halt illegal downloads of digital content. Although many in the industry have backed off from that approach, the challenge remains to find a business model that generates sufficient revenue for musicians and record label companies. Jim Griffin, working as an advisor to Warner Music Group, is partnering with a number of universities to experiment with business models that could provide an answer. At the recent Supernova conference in San Francisco, Knowledge@Wharton spoke with Griffin about his plans for changing the way music is distributed and monetized.
Kenneth Feinberg and Executive Compensation: 'My Number-one Priority: Repay the Taxpayer'
This month, all of Wall Street is paying close attention to Kenneth Feinberg, President Obama's "pay czar." Having determined the 2009 pay for executives at companies that took federal bailout money, Feinberg is expected to unveil his 2010 determinations in the next few weeks. His mission, he said during a recent talk at Wharton, is clear: "I can't be vindictive; I can't be vengeful; I can't punish. I have to make sure that the companies have the individuals necessary so that [they] will thrive and repay the taxpayer."
The Pain in Spain ... And What It Means for Europe and Beyond
Spain's rapid decline from one of Western Europe's fastest-growing economies to one of its most troubled could mean distress ahead for the euro, the EU and, ultimately, the global economic rebound. With all eyes now on Spain's recovery plan, questions are being raised about potential repercussions if the country gets bail-out help from its fellow European Union members. Wharton professors discuss what needs to happen inside and outside of Spain to ward off further disaster.
Brazil's Gold: How Rio Won Its Olympic Bid
Last fall, after losing previous bids, Rio de Janeiro -- Brazil's second-largest city -- won the approval of the International Olympic Committee to host the 2016 Summer Olympic Games. According to Carlos Roberto Osorio, secretary general of the Brazilian Olympic Committee, this time around, Rio had learned from its earlier failed bids and had the success of hosting the 2007 Pan American Games under its belt. That, combined with Brazil's "special circumstances" of economic stability amid the global downturn, helped it to beat out rival cities. In an interview with Wharton professors Felipe Monteiro and Ken Shropshire, Osorio discussed the winning bid and the challenges that lie ahead.
Linking Passion and Career: The Perils of Nonprofit Recruiting
The conventional wisdom on the campuses of elite universities used to be that the nonprofit sector could never compete for top job seekers against big-name firms that promised a meteoric career path. But that was before the rise of Teach for America (TFA), a nonprofit that recruits some of the nation's best minds to spend two years right out of college in the most challenging urban and rural school districts. At a recent gathering at the University of Pennsylvania's Fels Institute of Government, executives from some of the nation's more established, traditional nonprofits discussed how they might re-create some of TFA's recruiting magic for their own organizations.
Cents and Sensibility: Why Marketing to Multicultural Consumers Requires a Subtle Touch
In an era of globalization and fluid national borders, advertising that appeals to cultural and ethnic identity has become a vital part of the corporate marketing arsenal. But new research shows how ethnic-oriented marketing can backfire and even turn multicultural consumers against a product or service if ad campaigns are perceived as aggressive or patronizing. The key? Tread carefully, says Americus Reed II, a Wharton marketing professor who teamed up for the research with Stefano Puntoni and Peeter Verlegh from Erasmus University's Rotterdam School of Management in the Netherlands.
Saying Goodbye: New Exit Strategies for Today's Venture Capitalists
Venture capitalism is not what it used to be. The bountiful returns of the dotcom years are long gone and venture capital (VC) firms are now struggling to exit their investments via initial public offerings or mergers and acquisitions. Also, a new regulatory landscape is threatening to hinder rather than help the industry's recovery, and the companies that VCs invest in require watertight strategies for major growth. VC experts highlighted these issues and others during a recent panel discussion titled, "Business Exits in the Current Economic Environment," which took place at Wharton's campus in San Francisco. The industry has had "pretty big body blows," one panelist noted. But, the speakers agreed, it's time to move on.
'Badge' Value: Finding and Promoting Products That Inspire Customer Loyalty
Alex Panos and his colleagues at TSG Consumer Partners, a San Francisco-based investment fund, believe that consumers will always be interested in products that enhance their lives, even if it means paying more than they have in the past. That philosophy has brought impressive results for TSG primarily in the beauty, food and beverage areas. Panos, who joined the 23-year-old firm in 1998, spoke with Knowledge@Wharton about the company's strategy, why it favors family-owned businesses, where to find opportunities in a recessionary economy and how to build up a brand, among other topics.
E-textbooks: The New Best-sellers
While some students may be using notebooks or netbooks to read textbooks these days, some experts predict that within the next 10 years, most U.S. college students -- and many high-school and elementary-school students as well -- will probably be reading course materials on an electronic device instead of in a paper book. And that will have a broad impact on students and teachers, not to mention the $9.9 billion textbook-publishing business.
Empty Pockets: What Does the Greek Debt Dilemma Mean for the Global Economy?
Fear is growing that Greece may default on a massive pile of debt, creating a ripple effect of problems throughout Europe and beyond. Following pressure from the European Union and the European Central Bank, the Greek government on March 3 announced a new round of austerity measures that include spending cuts and tax increases which critics fear will harm Greece's economy. Meanwhile, Wall Street banks are facing scrutiny for the complex financial instruments they used to allegedly disguise the country's real debt. What caused Greece's debt problem to spin out of control? And what steps should it take to remedy the situation? Wharton finance professors Richard Herring and Itay Goldstein weigh in.
How Entrepreneurs Can Create Effective Business Plans
When an entrepreneur has identified a potential business opportunity, the next step is developing a business plan for the new venture. What exactly should the new plan contain? How can the entrepreneur ensure it has the substance to find interest among would-be investors? In this installment of a series of podcasts for the Wharton-CERT Business Plan Competition, Wharton management professor Ian MacMillan explains that business plans must contain several crucial elements: They must articulate a market need; identify products or services to fill that need; assess the resources required to produce those products or services; address the risks involved in the venture; and estimate the potential revenues and profits.
Basics of Entrepreneurship: Why Start-ups Fail at Marketing -- and Possible Solutions
Why do more than half of all start-ups fail? Because they bungle their marketing, according to Leonard Lodish, a professor of marketing at Wharton and co-author of two books, Entrepreneurial Marketing and Marketing That Works. "The dogs won't eat the dog food is the way venture capitalists describe it," Lodish says. The key lies in how a marketing plan is crafted. In this installment of the podcast series for the Wharton-CERT Business Plan Competition, Lodish explains that marketing plans must take into account three critical strategic and tactical factors: positioning, targeting and pricing.
Basics of Entrepreneurship: Dealing with Venture Capitalists
A critical step in the creation of a new venture is raising the capital to bring the new business to life. What sources of capital can an entrepreneur tap and what factors must she or he keep in mind while going through the process? According to Stephen Sammut, a senior fellow and lecturer at Wharton, so-called angel investors represent one possible option. Another source is venture capitalists (VCs), who may fund start-ups or invest at a later stage in a company's growth. In this podcast for the Wharton-CERT Business Plan Competition, Sammut explains the promises and pitfalls of dealing with venture capitalists.
Basics of Entrepreneurship: 'The Act of Being an Entrepreneur Is Indeed an Act of Leadership'
Who are you? What do you stand for? What do you want? Entrepreneurs usually know the answers to those questions when they start up companies. But do their leadership teams? To make sure they do, top entrepreneurs develop a "blueprint" that will guide their companies as they grow from six to 60 to 600 employees, says Michael Useem, Wharton professor of management and director of its Center for Leadership and Change Management. In this installment of the podcast series for the Wharton-CERT Business Plan Competition, Useem discusses blueprints and other things that entrepreneurs need to develop successful leadership teams, including a knack for telling a good story.
Taking the 'R' out of BRIC: How the Economic Downturn Exposed Russia's Weaknesses
The severity of Russia's recent economic decline has left many observers wondering why it has done so poorly compared with Brazil, India and China -- its BRIC counterparts -- as well as other oil-rich economies. There's a lot more to the answer than just the bursting of the oil bubble and the global economic crisis. Since the fall of communism two decades ago, Russia's business landscape has gone through a turbulent transition that is still nowhere near complete. Corruption and bureaucratic morass have taken their toll. But without strong prospects for economic and political liberalization, where does Russia go from here?
