Unless Euan Sutherland’s resignation letter is published in full, the context of his claim that the Co-operative Group, where he is chief executive, is “ungovernable” will remain unclear. But it is a strange declaration for any professional manager to make: cats are ungovernable; humans, however cussed and contrary, generally do respond to direction. How they are directed is another matter.
The Co-op is a strange beast, as the saga over Co-op Bank chairman Paul Flowers’ appointment and eventual disgrace revealed. But I think Mr Sutherland has been doing a decent job of taming it. He took some flak last month for appearing to ask Co-op members – and the general public – how the group should be run, rather than setting his own strategy. I read this, however, as a clever combination of an advertising campaign, an opinion poll, and a response to those insiders who disliked his management style. Read more
Pets.com's once-ubiquitous mascot (Bloomberg)
It is probably unfair to draw a parallel between Pets at Home, with its real stores, real turnover and real earnings, and Pets.com, the US pet products etailer that was one of the dotcom bust’s most notorious flameouts. But the ghost of Pets.com’s sock-puppet mascot haunts the latest plans for initial public offerings, of which Pets at Home’s flotation is the freshest. Here are the lessons: Read more
The eulogies last week for Justin King, outgoing chief executive of J Sainsbury, make clear he won his crown as Britain’s most successful grocer by reconnecting with his loyal subjects – the shoppers – after years of neglect. But his abdication as chief executive of the country’s second-largest supermarket chain, after a decade in charge, is a good moment to ask whether customer loyalty really matters any more.
You come back from holiday to find your chief executive has given up power to a central constitution. Your team has been disbanded and your title scrapped. You are now all partners, each with an agreed role and a duty to support others whose work overlaps yours. Instead of allowing tension to fester internally, you will raise problems openly at regular meetings that promote positive action.
In the middle of the western world’s annual holiday shopping spree – which runs from the day after Thanksgiving to the end of the January sales – even hardened shoppers may occasionally feel exploited.
Many economists – including the FT’s Chris Giles – feel the anti-consumption mood is “profoundly wrong”. Business academic Linda Scott, whom I interviewed for the FT’s “Thinking Big” series of videos on radical ideas, goes a step further: she believes the consumer free market has the potential to unleash vast benefits, particularly for women in developing countries – as consumers, investors, donors and workers. Read more
Inside Britain's 'everything store'. Photo: Bloomberg
A no-frills retailer offering a keenly priced range from AA batteries to Z-frame suitcases launches its own tablet device and prepares to expand its same-day click-and-collect service. Amazon? No, Argos, which was Britain’s “everything store” before Jeff Bezos reached high school. Read more
No one will ever find themselves in precisely the position Jeff Bezos found himself in when he launched Amazon.com in 1994, with the ambition to create an online “everything store”. Instead, most competitors will – at least for now – have to learn from Bezos’s success.
On Monday, The Everything Store, which traces Amazon’s rise, was named FT/Goldman Sachs Business Book of the Year for 2013, partly, in the words of one judge, because of its management lessons.
I talked to Brad Stone, the book’s author, about what those lessons might be, and he outlined four. Read more
Remember the scene in Pretty Woman when snooty assistants in a designer clothes shop refuse to serve Julia Roberts because of her – ahem – unorthodox attire, thereby depriving themselves of an enormous commission, funded by Richard Gere’s credit card? New academic research suggests that the luxury goods industry has learnt its lesson. Read more