Knowledge@Australian School of Business

Tesco's Extreme Makeover: A Phenomenal Tale of Turnaround Success

Tue, 15 May 2012 00:50:07 EST

The turnaround of UK supermarket chain Tesco is an exhilarating success story. In five years, the grocery group reversed its ailing sales and depressed share price to usurp the crown of market leader, Sainsbury's, in one of the world's most cut-throat industries. Tesco transformed itself into a diverse international business and one of the world's largest supermarket groups. Its new competitive edge was substantially created by the data gathered from a customer loyalty card that offered just 1% discount. An analysis of Tesco's transformation highlights the importance of stakeholder management and inventive marketing and uncovers rules for reversing the fortunes of ailing enterprises.

Special Report: Europe Struggles to Hold Itself Together

Tue, 15 May 2012 00:50:01 EST

Dramatic economic and financial developments in Europe never seem to quit. In the latest news, several eurozone countries have slipped back into recession, bringing a backlash against austerity policies into full swing. Now, the election of Socialist President Francois Hollande in France may offer a path to more growth-oriented policies, but big questions remain about which ones are economically -- and politically -- viable. To help clarify the implications for business and investors, Knowledge@Wharton has prepared a special report on the challenges facing Europe.

Declining Employee Loyalty: A Casualty of the New Workplace

Tue, 15 May 2012 00:49:52 EST

If loyalty is defined as being faithful to a cause, ideal, custom, institution or product, then there seems to be a certain amount of infidelity in the workplace these days. The 10^th annual survey of employee benefits, trends and attitudes released in March by MetLife puts employee loyalty at a seven-year low and says one in three employees plans to leave his or her job by the end of the year. Wharton faculty and others look at the evolving relationship between employees and employers.

Green Office Design: You Want the Good News About Overheads?

Tue, 15 May 2012 00:46:13 EST

Business sustainability may be the greatest motivation for the growing trend for planting gardens – or less elaborate green spaces – on top of office buildings. Once considered a luxury, green roofs now make perfect sense. Beyond environmental benefits, there are social and economic arguments for their cultivation. That's why governments and planners worldwide are giving green roofs the thumbs up. While more costly to install, the returns come from the allure of improved working environments and increased productivity – let's not forget reduced power bills! With new building energy efficiency disclosure laws now in effect in Australia, what's not to like?

Turning Geeks into Leaders: How to Stop IT Staff from Quitting

Tue, 15 May 2012 00:46:06 EST

Surveys show IT staff are more likely to make a career move than others, which can be expensive for employers. Certainly, the nature of the fast-changing technology industry encourages job switching, but new research from the Australian School of Business shows many tech experts leave jobs due to fundamental people management issues. This means the high-cost of churn is under managers' control. Smart employers understand how to turn IT personnel into leaders and keep their creative smarts flowing.

Budget Déjà Vu: A Tiny Surplus on the Thin End of Wedge Politics

Tue, 15 May 2012 00:31:51 EST

To deliver a negligible budget surplus, the federal government increased taxes and saved on expenditure – then for good measure curried favour with middle Australia by giving much of it back. Treasurer Wayne Swan opted to sweat the small stuff rather than bust out any big reforming moves. He showed tough love to lower-income earners and welfare beneficiaries and no love to big earners. Neil Warren and Dale Boccabella, professors at the Australian School of Business, see some potential risks in the 2012 budget's game of halves, not least the fact that the superannuation rules are again a'changing.

Saving Southern Europe's 'Lost Generation' of Jobless Youth

Tue, 15 May 2012 00:29:06 EST

In Spain and Greece, more than 50% of young people between 18 and 24 are out of work. In Italy and Portugal, the number is close to 30%. This represents a social and economic disaster that could have devastating consequences for Southern Europe, rippling outward toward the rest of the continent and the world. Experts at Wharton and elsewhere say outdated labor regulations combined with a slow economy have contributed to the problem. But even if labor laws are restructured, a solution will be hard to work out, all the more so now that many countries in Europe have slipped back into recession.

Mario Monti's Long March to Get the Italian Economy on Its Feet

Tue, 15 May 2012 00:29:00 EST

Mario Monti, the economist whose government replaced the Berlusconi administration in Italy last December, brings a technocrat's view to the task of reviving the country's economy. According to experts from Wharton and elsewhere, this task will be made easier by the fact that the Italian economy is in better shape than that of countries like Greece. Still, Monti faces enormous challenges, and major structural reform will be needed.

What Hollande's Election Means for the Eurozone

Tue, 15 May 2012 00:28:50 EST

In the aftermath of the election of Socialist Francois Hollande as the new president of France, eurozone austerity policies in Europe, which many now blame for pushing much of the Continent back into recession, appear likely to be loosened. At the same time, at least some complementary growth-oriented policies may be introduced. Big questions remain, however: What will these changes look like, and how much difference will they make?

Etsy Seeks Scale without Losing Its 'Street Fair' Aesthetic

Mon, 14 May 2012 21:25:49 EST

Etsy was launched as a ragtag website for artists and craftspeople to sell their wares. Today, it has become one of the Internet's most prominent tastemakers. As the company grows, experts caution that it must be careful not to alienate its faithful shop owners and customers by going too commercial and straying from its independent, artsy roots, or by becoming bogged down in privacy and seller credibility concerns.

View from the Top: How BridgeClimb's Paul Cave Scaled New Entrepreneurial Heights

Tue, 01 May 2012 18:41:14 EST

A unique concept and dogged persistence have made Paul Cave one of Australia's most celebrated entrepreneurs. Thanks to his tenacity, millions now have climbed the iconic Sydney Harbour Bridge to enjoy the awe-inspiring view from the top of one of the world's most famous landmarks. Establishing BridgeClimb took the experienced businessman and his partners nine years, dealing with numerous government bodies, community groups and experts on safety, logistics, media and heritage. In an exclusive interview for Knowledge@Australian School of Business, Cave tells how he remained sure-footed along the way. Undeterred, he's planning similar ventures offshore.

The Productivity Riddle: What Policymakers Don't Know and Managers Need to Find Out

Tue, 01 May 2012 01:36:23 EST

Productivity, and its recent decline in Australia, are becoming the 21st century's biggest conundrums. Reforms are needed to heighten incentives for employers and increase organisations' flexibility, claim experts. Meanwhile, a forum that was promised prior to the last federal election to address key productivity issues is still awaited. There are more questions than answers concerning what drives productivity, which policy changes are needed and just what will make a difference within sectors and companies. But a US study that scoped out key areas for managers' consideration offers some leads.

The Big Quota Question: Why You Should Count on Women

Tue, 01 May 2012 01:36:14 EST

While some Australian organisations have taken the lead in introducing targets to redress gender balance, businesses will soon be required by law to report on the outcomes of their gender equality policies. But which strategies work for shifting the unconscious bias that continues to stop women ascending the corporate ladder? Employers must demonstrate that they are serious about women's careers. And assumptions about women's skills and abilities also must be challenged, insist experts. Momentum grows once there's a critical mass of women in an organisation, which is a strong argument for promoting quotas. But not everyone agrees.

Upstart Alert: Why Google and Facebook Need to Watch Out!

Tue, 01 May 2012 01:36:03 EST

Replicating a less-established competitor's innovative offerings or features can be relatively easy for an incumbent technology company. The practice has become increasingly common -- to the point that many wonder if it's still possible for an upstart to enter an existing market and effectively compete. But that doesn't mean dominant firms like Google and Facebook should stop watching their backs, Wharton experts say. Despite reluctance on the part of users to abandon an established service, there is always the chance that a nimble newcomer will enter a market and eat away at an incumbent firm's user base.

Google's Chade-Meng Tan Wants You to Search Inside Yourself for Inner (and World) Peace

Tue, 01 May 2012 01:35:54 EST

Chade-Meng Tan (Meng) was among the earliest engineers to be hired at Google. Since 2007, he has been running a seven-week personal growth program called Search Inside Yourself, whose mission is to promote peace and harmony through the cultivation of emotional intelligence among Google employees. Meng has now written a book titled, Search Inside Yourself: The Unexpected Path to Achieving Success, Happiness (and World Peace) to share these tools and techniques with companies everywhere. He spoke with Knowledge@Wharton about his conspiracy for world peace. (Podcast with transcript)

E-book Price-Fixing: Finding the Best Model for Publishers -- and Readers

Tue, 01 May 2012 01:18:24 EST

In a case that has attracted worldwide attention, Apple and five book publishers were sued this spring by the U.S. Department of Justice on the grounds that they colluded to fix prices for e-books sold on Apple's iBookstore website. The legal controversy over Apple's efforts to use the so-called "agency model" when selling books directly to consumers offers a good opportunity to examine the benefits and costs of adopting that approach, both for online retailers and their customers, notes Wharton marketing professor Z. John Zhang, who has co-authored a recent paper on the topic.

Changes Needed at Avon Are More Than Cosmetic

Tue, 01 May 2012 01:17:33 EST

Sherilyn McCoy, Avon Products' new CEO, faces a daunting list of challenges: a three-year internal investigation into charges of government bribery in China; an SEC investigation into alleged leaks to analysts; possible takeover offers from two different suitors, and a stock that lost nearly half its value in 2011. Wharton faculty offer a roadmap for getting Avon back on its feet.

Why Eurozone Woes are Creating Headwinds for Global Firms

Thu, 26 Apr 2012 02:44:23 EST

Europe is in crisis -- and that has major implications for multinational firms with significant operations in the region. In fact, while much is written about the race by corporations to penetrate emerging markets like China and Brazil, the reality is that the investment by multinationals in Europe dwarfs the assets they have in those fast-growing economies. And the sovereign debt crisis in Europe, along with weak economic growth, is sparking changes in how these firms operate -- altering everything from manufacturing strategies to marketing to financial maneuvers.

Financial Planning Ethics: Upping the Ante for Counting on Trust

Wed, 25 Apr 2012 22:31:48 EST

The financial planning industry's future hinges on trust between planners and their clients. A new ethical standard drafted by the Accounting Professional and Ethical Standards Board may be just what's needed to drive the federal government's diluted Future of Financial Advice (FOFA) reforms further, eliminating conflict of interest problems due to carve-outs for asset fees and commissions on life insurance. But many are skeptical about the high ethical standards proposed for those dispensing financial planning advice, while advocates argue the same sort of conflicted remuneration rules that promote trust in doctors, lawyers and accountants should apply to financial planners. Will their voices be heard above the uproar?

Listen Up: Is that the Sound of Your Corporate Hierarchy Crumbling?

Sun, 22 Apr 2012 22:16:03 EST

The average employee today is fully empowered and enabled with technology in their hip pockets. Digitally savvy customers can serve themselves and dispatch their smart ideas and stinging criticisms from anywhere at anytime. And, with innovation thrust upon them, organisations are changing shape as a result. As management theorist Henry Mintzberg's "machine bureaucracy" vanishes beneath a mesh of interactions, large enterprises need to wake up to being less about hierarchy and learn how to leverage the new transparency, observes Andy Lark, chief marketing officer of the Commonwealth Bank of Australia. So in this new era, should you listen to the customer or the boss?