Congress Steps In On Trade – 05/16/17
Article by Adjunct Professor Phil Levy discusses how, in light of President Trump’s trade philosophy and management style, Congress has begun to take back the reins when it comes to trade policy. This runs contrary to the way Congress has dealt with trade in the past, as Congress has historically tried to yield some of its constitutional power to the executive.
Harvard Business Review
Overcome Resistance to Change with Two Conversations – 05/16/17
Article co-authored by Dean Sally Blount and Professor Shana Carroll identifies sources of resistance in organizations and lays out a number of ground rules for talking with the resistors. Blount and Carroll explain that effective dialogue with resistors typically requires at least two conversations; in the first, you listen and identify the cause of the resistance, and in the second, you articulate what will be different in your approach to the change and explain why.
How Unilever Risked Too Much on Dove to Appeal to Women – 05/15/17
Article by Adjunct Lecturer Paul Earle explores the backlash that Unilever received due to its new line of Dove Body Wash bottles in the U.K. that are designed to mimic different female body types. He praises the company for taking a risk, but emphasizes the need for the creation of new brands. Earle’s corporate innovation and new ventures class is mentioned as well.
Why Tesla Could Become the Next Apple – 05/13/17
Article by Professor Mohanbir Sawhney explains why Tesla has the potential to become as valuable as Apple. Sawhney notes that in order for Tesla to become the next Apple, it will need the “Steve Jobs” approach to marketing in addition to efficient manufacturing.
Harvard Business Review
Recessions Push People to Buy Cheap Things, Which Just Makes Everything Worse – 05/12/17
Article by Professor Sergio Rebelo examines how consumer behavior is contributing to deeper recessions and slower recoveries. It seems that during economic downturns, consumers reduce the quality of the goods and services they consume. This negatively impacts the economy on a grand scale because goods and services of lower quality are produced with less labor than those of higher quality; so overall, the demand for American labor is reduced.
With sales falling, Whole Foods replaces nearly half its board members – 05/11/17
Article discusses Whole Foods’ decision to appoint a new chairwoman and replace five of its board members amid falling sales and pressure from key investors to turn the company around. According to Professor Nicholas Pearce, board members generally do big-picture, strategic thinking, “so this could be repositioning the brand. It could be re-envisioning how Whole Foods thinks of itself.”
What the Downfall of Michael Flynn Teaches Business Leaders About Hiring Bad Apples – 05/10/17
Article by Professor Harry Kraemer explores the Trump-Flynn drama and the management lessons it teaches to business leaders. Some of these lessons include 1) ignoring red flags about the suitability of a candidate almost always leads to bad hiring decisions, 2) without self-reflection, leaders can easily delude themselves and undermine the effectiveness of their decisions, and 3) leaders need a balanced perspective by listening to a variety of opinions, particularly those that take the opposite position.
Research shows that sitting next to the wrong person at work could get you fired – 05/09/17
Article originally published on Kellogg Insight examines new research from Professor Dylan Minor, which found that workers in a 25-foot radius around high performers at a large technology firm boosted performance in coworkers by 15%, translating into an estimated $1 million in additional annual profits. This spillover effect also implies that “bad eggs” can negatively impact their neighbors, but this effect disappears almost immediately once that worker is either fired or physically relocated.
Have The ‘Miserable’ Airlines Finally Reached A Tipping Point? – 05/08/17
Article examines the current state of the airline industry, discussing how commercial airlines are struggling to rebuild consumer trust. “As a result of airline activities and decision making over really the past maybe even 10 years, customers have slowly but surely started to feel as if airlines don’t always have their back,” said Professor Kent Grayson.
The New York Times
Health Act Repeal Could Threaten U.S. Job Engine – 05/06/17
Article emphasizes that the health care industry has created jobs at more than three times the rate of the rest of the economy since 2007, and that the Affordable Care Act repeal may hurt local economies. “If there is a group that loses out the most, it’s near-seniors. Their health care is so expensive, but the tax credit in the House bill caps out at $4,000,” said Professor Craig Garthwaite. The article was also picked up by CNBC.
Advocate Health Care to make $200 million in cuts – 05/05/17
Article discusses how Advocate Health Care, Illinois’ largest hospital system, is making $200 million in cuts in response to financial pressures such as reimbursement rates from federal and state insurance programs that don’t cover the cost of caring for patients. “I think some of them [hospitals] are just hitting a pause for a second to figure out what the world’s going to look like in a year,” said Professor Craig Garthwaite.