Why BCG's Hal Sirkin Is Bullish on the Future of American Manufacturing
Posted on Wednesday February 15, 2012For years, conventional wisdom has maintained that manufacturing in the U.S. is in terminal decline. But the tide is now turning, according to Hal Sirkin, a senior partner and managing director at the Boston Consulting Group. Rising wages and currency rates, among other factors, have dramatically narrowed the gap between manufacturing costs in China and the U.S., with the result that several U.S. companies are now "in-sourcing" manufacturing jobs back to America. Sirkin, who recently spoke at the White House about this research, discusses the implications for U.S. jobs and competitiveness in an interview with Knowledge@Wharton.
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Patients versus Profits at Johnson & Johnson: Has the Company Lost its Way?
Posted on Wednesday February 15, 2012For a corporate icon long held up as the gold standard in business ethics, Johnson & Johnson has suffered some stunning setbacks in recent years. Among the headaches: a seemingly endless string of product recalls, safety issues with the company's artificial hips, and lawsuits brought by numerous states over the marketing of its anti-psychotic medication. Critics wonder whether CEO William Weldon will be able to convince consumers and investors that J&J can regain its once stellar reputation.
Textbook Case: Apple and Others Strive to Be the Next Wave in Educational Publishing
Posted on Wednesday February 15, 2012While the $4.5 billion textbook industry seems ready for disruption, the latest digital offerings from firms like Apple may not be enough to overthrow it -- yet. Apple's approach, which revolves around the company's ecosystem and devices, poses certain limitations for institutions and for students, experts say, and the proposed cost savings from not having to purchase more expensive physical books may not add up. Also, it's unclear whether more elaborate, enhanced textbooks with 3-D graphics and animation will catch on and eventually replace the printed word.
Flipping the Switch: Who Is Responsible for Getting Employees to Take a Break?
Posted on Wednesday February 15, 2012In the new world of work, 5:30 p.m. is far from the end of the day. Smartphones and laptop computers -- devices that ostensibly enable us to work faster, more efficiently and more flexibly -- have become 24/7 intravenous hookups to our jobs. Fearing employee burnout from being "always on," a number of firms have recently instituted initiatives requiring workers to take breaks and switch off their gadgets. But do such blanket policies really make a difference? Who is responsible for ensuring that employees maintain a healthy work/life balance?
Google's New Privacy Policy: When Consumers' Worlds Collide, the Company Stands to Profit
Posted on Wednesday February 15, 2012On March 1, Google plans to toss out more than 60 different privacy policies and consolidate its services under a single set of guidelines. The harmonization will remove separation between Google products, meaning that the company will be able to use data it collects from users in one area across all of its platforms. While this move has sparked concerns about privacy, Wharton experts note that it also makes business sense for Google, which is trying to compete in a tech sector where success often hinges on firms' ability to leverage and monetize the data trails consumers leave online.
Seven Steps for Board Success in the Facebook Age
Posted on Thursday February 09, 2012With the February 1 announcement of its mammoth public offering, Facebook is basking in the limelight and has become yet another reminder of the dramatic impact that the social, mobile and cloud revolutions are having on customer communications and shareholder interest. Is it time for boards, and their directors, to reinvent themselves to keep pace? Yes, according to this opinion piece by Barry Libert, CEO of OpenMatters, a company that invests in social technologies and advises boards of directors and executives on the impact of new technologies on corporate governance and enterprise risk management.
Private Equity: Fact, Fiction and What Lies in Between
Posted on Wednesday February 08, 2012What good is private equity, anyway? Critics say these investment pools make money the wrong way -- buying "target companies," slashing jobs, piling on debt and selling the remnants, which by then are doomed to fail. Defenders say PE is a strong creator of jobs and value, and a vital source of outsized returns for pension funds, university endowments and other investment pools that serve ordinary people. Who's right?
Research Roundup: The 'Flip Side' of Open Innovation, Productivity Losses from Bad Weather and Assessing the Risks of Outsourcing
Posted on Wednesday February 01, 2012Open innovation is gaining in popularity, but when should companies be concerned with protecting their own knowledge? Most people expect bad weather to negatively impact business conducted outdoors, but what are its implications in industries where work is primarily done inside? How can companies use risk management techniques to better assess the potential downsides of hiring contract or temporary workers? Wharton professors Felipe Monteiro, Gerard Cachon and Peter Cappelli, respectively, examine these issues -- and what they mean for business -- in recent research articles.
Customer Analytics: A New Lifeline for the Red Cross and Other Nonprofits?
Posted on Wednesday February 01, 2012When a major disaster occurs, the result is an outpouring of aid, often in the form of donations to nonprofits like the American Red Cross. But once the dramatic images and news headlines begin to fade, donors often disappear as well. The question for groups like the Red Cross is how to identify and reach out to those one-time givers who are most likely to become regular donors. The answer may lie in the world of customer analytics -- the collection and mining of data on individual consumer behavior that is already revolutionizing how for-profit businesses operate.
Davos 2012: 'Joblessness and Its Discontents'
Posted on Wednesday February 01, 2012Optimism was in short supply at the 2012 annual meeting of the World Economic Forum in Davos, Switzerland, which ended on Sunday. As Wharton management professor Michael Useem reports below, keynote speakers and panelists alike focused on a number of problems that are getting in the way of global prosperity. Chief among them is unemployment, followed by a shortage of highly-trained workers needed to spur innovation and solve social challenges. On the bright side, Useem notes, is the rapid growth of emerging economies.