Free business school case study in every box (Dreamstime)
Altering prices is a delicate art. When Pixar was a hardware maker in the 1980s, for instance, it realised it was charging too much for its computers. Yet a price cut failed to dispel its reputation for hawking excessively pricey kit. “The first impression stuck,” recalls Pixar co-founder Ed Catmull in his informative new book, Creativity, Inc.
But this does not mean that it is impossible to raise or lower prices successfully. The decision by Amazon to increase the price of its Prime delivery service in the US last month could be a case in point.
Pricing strategy consultant Rafi Mohammed has praised the way Amazon went about increasing the annual Prime charge from $79 to $99. Read more
Mary Barra, General Motors’ chief executive, is struggling to contain the fallout from the revelation that the carmaker failed for more than a decade to reveal concerns about the safety of ignition switches on some of its compact cars.
GM this week announced a slew of new recalls and more than doubled its expected charge this quarter to $750m. On Tuesday, Ms Barra and David Friedman, acting administrator of the National Highway Traffic Safety Administration, appear before the US House of Representatives’ energy and commerce committee to explain what went wrong and why.
Robert Wright and Shannon Bond report from New York
Leonardo Del Vecchio and Rupert Murdoch have plenty in common. The chairman of Luxottica, the eyewear group, and the chairman of News Corp and 21st Century Fox were born in the 1930s. Both are billionaire patriarchs of family businesses they largely built themselves but now share with outside investors. Both have six children from different relationships, and both have wrestled with the question of succession.
General Motors CEO Mary Barra
General Motors’ widening of the recalls of US cars and trucks for safety and other defects is a challenge for Mary Barra, its new chief executive, as she prepares to testify to Congress this week. Read more
Satya Nadella’s unveiling of Office for the iPad is a significant moment for Microsoft, and his leadership of the company. I wonder if it will also be an incentive to improve the product itself?
I write this because Word in particular still strikes me as a product that is too big to fail. The network effect of so many companies using it makes individuals follow suit but it is bloated and irritatingly full of bugs. Read more
General Motors and Malaysia Airlines are both in trouble but one is giving a lesson in how to handle a fatal crisis while the other is offering a masterclass in how not to. There is a glaring contrast in the behaviour, and ability to cope with public criticism, of Mary Barra, GM’s chief executive, and Ahmad Jauhari Yahya, the chief executive of Malaysia Airlines – although Ms Barra has a simpler task.
My first reaction to the latest news of changes at the top of the Murdoch empire was: did the shrink get involved?
Succession planning at family businesses is often full of unlikely twists and shrieking. After the phone-hacking scandal broke over Rupert Murdoch’s UK newspapers in 2011, Vanity Fair claimed that the Murdoch siblings had discussed succession with a “family counsellor”, partly in an attempt to smooth the process. Read more
Leo Strine – comforter of the corporate executive? (AP Photo/Richard Drew)
Has shareholder democracy in the US gone too far? The very idea seems risible to Europe-based corporate governance advocates, myself included, who have watched American investor rights advance in a good direction, but at a snail’s pace. But those making the case now for limiting investor powers have a strong, prominent, and eloquent ally in Leo Strine, Delaware’s chief justice. His latest Columbia Law Review article, ostensibly arguing for a pragmatic version of investor democracy, is a must-read. Read more