Strategy

A framework for coping - both cognitively and emotionally.

Accounting for almost 30% of world GDP, the United States is the world’s largest and most demanding market for almost everything from oil to microprocessors to premium coffee. Companies around the world aspire to do business in the US, or at least with US companies in their home markets. By doing so, they learn much […]

Why they're plausible and how they can lead you astray.

As U.S. nonprofits take on an increasing share of society's work, they face mounting pressure from stakeholders - donors, boards, employees - to show...

Bonuses and other forms of incentive compensation are an effective motivator of executives to achieve ever higher earnings per share. The drive to produce short-term results, however, often influences management to forgo investment in capital equipment and R&D that would benefit the corporation several years hence even more than improved earnings next year would. The […]

Achieve better overall security by funding joint projects between physical and IT security departments.

Nokia's recent burning platform travails serve as an object lesson to companies trying to navigate a rapidly-changing global economy. As multinational...

Editor’s note: For an opposing viewpoint on this topic, see Robert E. Litan’s and Hal J. Singer’s entry “Why Business Should Oppose Net Neutrality.” In business school, where I teach, students are often predisposed to see legal concepts as impenetrable and foreign. I watch the lightbulbs go on as they see that Microsoft’s antitrust woes, […]

During the past 25 years an increasing proportion of U.S. companies have seen wisdom in pursuing a strategy of diversification. Between 1950 and 1970, for example, single-business companies comprising the Fortune “500” declined from 30% to 8% of the total. Acquisition has become a standard approach to diversification. In recent years the productivity of capital […]

Stock market simulations can help you determine optimal marketing strategies for products prior to launch.

A closer look at the risks.

When companies cause emotional pain through nasty bosses, layoffs, and change, a certain breed of “healing” manager steps in to keep the gears moving. They are toxic handlers—unsung corporate heroes who save the day, but often pay a high price.

It was an experiment. I was returning an item to the store from which I had bought it. The item was well within the return period, but there would be a 20% restocking fee. Could I evade that fee? What would I have to do or say to persuade them not to charge it to […]

Executives who spot signs of big market shifts face a quandary: They need good data to convince stakeholders that their companies have to change. But...

On the basis of a sample from the top 200 of the Fortune “500” and data from the PIMS (Profit Impact of Market Strategies) project, this author gives some guidelines for established companies on what to expect from new ventures. He points out that it takes an average of 10 to 12 years before the […]

Surprised by a gender stereotype? React calmly, directly, and move on.

“Alright, you caught us. We’re actually not making any money. In fact, we are really losing a lot of money.” This is the essence of Groupon’s declaration last week that it will remove the controversial accounting metric called Adjusted Consolidated Segment Operating Income (ACSOI) from its financial statements. ACSOI essentially measures Groupon’s profits before subtracting […]

At least, the successful ones are.

A process for getting the right people aligned.

We developed a tool to help.