Does a nip or two of the hard stuff help you get ideas flowing? That's a claim that many people, including artists and writers, have made. Now a new study has produced evidence to back it up.
This article focuses on the field of international crisis communication, whereby multinationals and their expatriate staff respond to crisis events in international and/or multicultural contexts. The field of international crisis communication is at or near a state of crisis due to lack of research and, more importantly, methods used by practitioners. 'Glocalization'-which is used successfully in fields as diverse as marketing, education, theology, and others as an effective and expedient way of leveraging global capabilities to meet local demands-is proposed as one method for addressing this need pragmatically. Using glocalization for the internationalizing of crisis communication benefits practitioners and researchers alike in a way that avoids imposing Western frameworks and interpretations onto non-Western crisis situations. We demonstrate the approach with a case study involving multinational McDonald's Corporation and its foreign subsidiary, McDonald's Japan.
Brand anthropomorphism has been found to enhance the ability of consumers to recognize the inherent value of brands. However, there is limited knowledge among practitioners on how to build a brand with humanlike characteristics. After a literature review of brand anthropomorphism in general and the theory of warmth and competence in particular, we present the Human Brand Model of how to build a brand that is perceived to be human. There are four steps in this process; the first three indicate the brand inputs and the last indicates the results of those inputs. This model guides brand managers on how to make their brand more human. The use of this model should result in the organization having an excellent brand reputation; stronger, more meaningful relationships with their customers; and improved brand loyalty.
This article discusses several practical solutions for dealing with online customer complaints. Online complaints are inevitable; how a firm responds can make the difference. There are techniques that managers can use not only to minimize the detrimental impact of online complaints, but also to produce beneficial outcomes. Herein, we introduce our 3T framework, designed to help managers and support teams respond to online complaints in a thoughtful and measured way. We build on word-of-mouth research and several theories from marketing, service marketing, journalism, and business ethics. With so many reviews posted online every second, firms must employ best practices grounded in empirical research and solid conceptualization to deal with this important component of online customer service.
Naming a product's scent is a key decision. The same scent can be interpreted differently when different names are assigned to it. Thus, choosing the right scent name can increase competitiveness by successfully appealing to desired consumer segments. We propose that such decisions should be data driven (i.e., on the basis of competitors' offerings and consumers' preferences) and provide guidelines on how to assign scent names to products in home care and personal care product categories, focusing on capturing market segments. Based on a large web-based dataset of scented products across multiple brands and categories, this article is the first to construct a typology of scent names empirically: unscented, concrete, abstract, and proprietary. After examining firms' assortments of scented products with different names across 12 categories and comparing them with consumers' preferences concerning such assortments, we identify major gaps. Overall, consumers demand far more unscented products and products with abstract names than currently offered; however, preferences for products with proprietary names are mostly aligned. Strategic recommendations center on naming scented products to better align supply and demand in the scented product market and capture new market opportunities.
Workforce analytics is a major emerging trend in human resource management. Yet, despite the enthusiasm, there exists a misunderstanding of how organizations can successfully use workforce analytics to achieve important organizational outcomes. This article proposes ways to overcome this execution dilemma and achieve organizational success with workforce analytics through the integration of agile development with scientific research. We use a number of company examples to outline five key parts of an agile workforce analytics process: (1) prioritizing issues, (2) integrating deductive and inductive approaches, (3) preparing and validating data, (4) applying multiple methods in concert to support decisions, and (5) transforming insight into action to improve business outcomes.
The effective utilization of knowledge has become an important part of how firms gain competitive advantage in the marketplace. However, the recruitment, search, and selection processes used to obtain workers who would develop and deploy that knowledge have not materially changed for many years, with human resources (HR) frequently automating legacy procedures. We believe that the hiring processes for exceptional knowledge workers, whom we call knowledge stars, must adapt to the current business environment. Using the framework of architectural innovation, we propose that HR's recruitment of knowledge stars should begin before specific jobs are announced, should be done in partnership with line managers, and should be done in coordination with implementation of other workplace innovations such as the development of communities of practice and participative management. We conclude by discussing how changes in the search processes for knowledge stars fit in context with some other ongoing challenges for HR personnel.
Over the next 20 years, many organizations will experience significant shortages of skilled workers. At the same time, because of longer lifespans and a gradual rise in what society has considered the traditional retirement age of 65, older workers will represent a growing proportion of the American workforce. For a variety of reasons, many of these older workers desire to continue working and, if retained and engaged, they constitute a significant labor source for mitigating the emerging shortages of skilled workers. However, many organizations are not prepared to take advantage of this demographic shift; some even generate barriers that impede the retention and engagement of older workers. In this article, we identify a variety of ways in which organizations can retain and engage older workers to meet their staffing needs and enhance organizational performance. We also discuss the relationship of these proposals to prominent theories of motivation in management.
Research and applied evidence suggest that online opinion leaders are important promoters of products and services. However, managers and firms need to choose which opinion leaders to work with and better understand how to collaborate with those leaders to promote different types of products and services. Online opinion leaders should be used to promote the experiential (hedonic) and functional (utilitarian) value of products and services over different online forums. In this article, we describe how online opinion leaders can serve appeal leadership functions, serve knowledge leadership functions, and take multiple roles (e.g., experts, celebrities, micro-celebrities, micro-influencers, early adopters, market mavens, enthusiasts). We then present a five-stage planning process designed to guide partnerships with online opinion leaders. Specific steps in the process include: planning (setting the objectives of the campaign and the role of online opinion leaders), recognition (identifying influential and relevant online opinion leaders), alignment (matching online opinion leaders and online forums with the products or services promoted), motivation (rewarding online opinion leaders in a way that aligns with their social role), and coordination (negotiating, monitoring, and supporting the influence of the online opinion leaders).
Many researchers have analyzed the effect of disruptive events, such as natural disasters and economic and market forces, on global supply chains. However, there is a lack of consensus on delineating a universal collection of supply chain risk management practices that will help companies operate in a global market with large-scale disruptions. In this article, we present an analysis, in conjunction with a worldwide online survey, based on successful global brands and their supply chains. We propose a framework that deploys the dynamics of building supply chain resilience, first linking the design of the supply chain portfolio (local versus global scope, as well as strategic responsiveness versus cost reduction) with supply chain vulnerabilities (external versus internal). We describe the transition between different supply chain structures as a way of coping with disruptions and thus proactively developing resilience. In this article, we introduce both a supply chain risk management approach and the reactive-by-deployment mode, as illustrated by successful global company examples.
While innovation has become a pervasive term, many of today's organizations still find innovation elusive. One reason may be that much of what is being said about innovation contributes to misunderstanding. To truly manifest innovation and reap its benefits, one must recognize that innovation is three different things: innovation is an outcome, innovation is a process, and innovation is a mindset. Innovation as an outcome emphasizes what output is sought, including product innovation, process innovation, marketing innovation, business model innovation, supply chain innovation, and organizational innovation. Innovation as a process attends to the way in which innovation should be organized so that outcomes can come to fruition; this includes an overall innovation process and a new product development process. Innovation as a mindset addresses the internalization of innovation by individual members of the organization where innovation is instilled and ingrained along with the creation of a supportive organizational culture that allows innovation to flourish. Such an understanding defines necessary elements, considerations, and vernacular surrounding the term so that better decisions can be made, thereby enabling innovation and having a greater propensity to succeed.
Snapchat's initial public offering, which provided shares with no voting rights, is a culmination of the growing trend of dual-class shares. It contradicts the precept of one-share, one-vote that is essential for corporate democracy. Snapchat's action caused an uproar among influential investors. In January 2017, a coalition of the world's biggest money managers, which together control more than $17 trillion in assets, demanded a total ban on dual-class shares. We reason that the increasing prominence of dual-class stock is explained by the confluence of three economic trends: the growing importance of intangible investments, the rise of activist investors, and the decline of staggered boards and poison pills. A dual-class structure offers immunity against proxy contests initiated by short-term investors. It enables managers to ignore capital market pressures and to avoid myopic actions such as cutting research and development, which hurt companies in the long term. Thus, a dual-class structure is optimal in certain scenarios. We put forth alternatives to dual-class structure that enable managers to maintain control while retaining focus on sustainable value creation.
This article addresses the relationship between technology and counterfeiting in the fashion industry. Starting with an economic analysis of counterfeiting, I examine how new technologies encourage counterfeiters while at the same time provide important tools to combat it. The development of sophisticated technologies to obtain, process, and reproduce images and the extensive use of new digital channels for online sales have simplified both production and distribution of counterfeit products. Based on tagging and DNA analysis, as well as web-based monitoring systems, trace and track technologies allow rights holders to combat counterfeiting through effective control of the entire production and distribution chain. This article considers an innovative method of product monitoring based on latest-generation IT platforms, integrated with portable devices, that can easily and immediately verify product authenticity. The spread of these new technological systems is closely related to the role of a party that is glaringly absent in the battle against counterfeiting: the consumer. Indeed, new technologies are the driving element in a virtuous circle where the consumer becomes an essential instrument in the battle against counterfeiting, along with the other players involved: companies, public institutions, and civil society.
The significance of mindsets is apparent in everyday business life. As today's managers and companies face uncertainty and disruptive change in the business environment and markets, there is a growing need to understand and strategically address such change. This becomes challenging when disruptive market forces confront the institutional logic or rules of the game based on collectively acquired experience of doing business in the given field. In overcoming such challenges, managers' hidden reasoning remains an untapped potential while their existing mindset influences what they attend to and what they decide to do. This article elaborates a diagnostic framework, accompanied by a tool to help managers to make sense of disruptive markets and to reflect individually and collectively on possible courses of action. The framework has two principal dimensions-strategic scope and focus-that are further divided into three business elements of strategic market-oriented management: offering, customer, and market. The tool offers a practical means of profiling individuals' mindsets. In increasingly dynamic business environments, reflection capabilities represent a new source of competitive advantage.
Private labels have become ever-more important and are slowly turning into brands of their own. Retailers increasingly offer three-level 'good, better, best' private-label programs that include economy, standard, and premium private-label tier goods. For each of these tiers, retailers must decide under what name to brand their private label. They can either assign their store banner name to a private-label tier or go for a unique brand name that is separate from the retailer banner. The purpose of this article is to outline the advantages and limitations of these two branding strategies: store-banner branding versus stand-alone branding. Herein, we also provide a series of recommendations regarding when to use each brand strategy, based on characteristics of the retailer and the environment in which it operates.
Since the industrial revolution, we have been living in a linear economy. Our consumer and "single use" lifestyles have made the planet a "take, make, dispose" world. This refers to a unidirectional model of production: natural resources provide our factory inputs, which are then used to create mass-produced goods to be purchased and, typically, disposed after a single use. This linear economy model of mass production and mass consumption is testing the physical limits of the globe. It is, therefore, unsustainable and a shift toward a circular economy is becoming inevitable.
Disruptive technologies can increase the intelligence of goods and revitalize business models in the circular economy. Applying an industrial ecology perspective, this article discusses how intelligent goods can boost the sustainability of industrial ecosystems. North American and European cases highlight how business model innovators can utilize goods-related information to develop more competitive closedloop systems. The authors identify three archetypes of closed-loop systems--inner circles, decentralized systems, and open systems--and delineate how they leverage information resources for collaboration. This study advances the understanding of closed-loop systems in the circular economy, which is more dependent than ever on digital platforms.
Extended Producer Responsibility (EPR) regulations require that producers organize and pay for treatment and recycling of waste arising from their products at end of life. EPR has been effective in implementing some aspects of circular economy. In Europe, 35% of e-waste and 65% of packaging waste have already been recycled (or reused in some cases). This article analyzes the challenges of implementing EPR and provides useful insights for what has worked well and what challenges remain. Identifying and addressing these challenges will be crucial for framing legislation that will move industry and society toward a more circular economy.
This article presents an in-depth case study detailing the history, experiences, and wider practitioner and policy lessons from a circular economy business model over a 30-year period, highlighting the successes, difficulties, and conflicts of adopting a circular economy model. The case is based on interviews, key documents, and customer insight. The findings demonstrate how sustained circular economy business practices can deliver significant new revenues, resource productivity, and business continuity benefits, but also require managers and practitioners to develop competencies and capabilities, such as balancing linear and circular systems, to address complex and highly dynamic factors, including rapid technological shifts and market volatility.