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DITTO for Gen Z: A framework for leveraging the uniqueness of the new generation
Generation Z, or Gen Z, represents 24% of the U.S. population and is very different from earlier generations. A higher proportion of Gen Zers are earning college degrees, and they are now moving to the next phase in which they will constitute the predominant majority of the incoming workforce. Gen Z faced an unusual set of technology-driven circumstances while growing up and thus bring a distinct set of characteristics into the workplace. We offer a new research-based framework, DITTO, which encapsulates specific recommendations for organizations on diversity, individualism and teamwork, technology, and organizational supports. DITTO serves as a useful mnemonic to help managers recall specific ways to support Gen Zers and leverage the strengths of Gen Zers to benefit the organization and the workforce. Research shows that Gen Zers are more open to diversity and more individualistic and technology-driven than other generations. To the extent that companies use the DITTO framework, the more attractive they should be to Gen Z workers; but the principles of this framework also extend beyond Gen Zers to existing workforce with similar efficacy. -
Why do boycotts sometimes increase sales? Consumer activism in the age of political polarization
In this article, we argue that the occurrence, trajectory, and impact of consumer activism are in large part driven by the political environment in which firms operate, particularly by their country's level of polarization and the political makeup of their core customer base. In environments characterized by low levels of political polarization, companies are embroiled in a relatively small number of political controversies, and as a result are rarely the target of consumer activism. Conversely, in highly polarized environments, people's political sensibilities are easily offended, which leads to a relatively large number of political controversies. These controversies tend to arise along party lines, meaning they elicit a consumer boycott exclusively from one side of the political spectrum. Such partisan boycotts lead people on the other side of the political spectrum to rally around the company at the center of the controversy and to purchase more of its products. Whether a company's sales end up decreasing or increasing depends on the nature of the issue at the heart of the controversy as well as on the political beliefs of its core customer base. We conclude by describing how companies can successfully navigate this complex interplay between political polarization, consumer activism, and customers' political preferences. -
Strategies for the successful implementation of augmented reality
The potential benefits of augmented reality (AR) to consumers include high levels of interactivity, exposure to an extensive virtual inventory tailored to their needs, high-quality customer support, and better integration between web and store-based shopping experiences. The anticipated benefits of a successful AR strategy to a brand or retailer include higher inventory turnover, increased average sales, reduced sales costs, lower customer returns, higher levels of related-item selling, and better customer support outcomes. Despite these revenue- and loyalty-enhancing benefits, few companies use AR, develop a highly integrated AR plan, or incorporate AR into their marketing programs. This article focuses on the successful planning and implementation of AR through a six-step process: (1) Determine how AR can help achieve marketing objectives; (2) choose appropriate products, channels, and target markets for AR; (3) select among AR application types; (4) design AR apps; (5) evaluate alternative AR organizational formats; and (6) measure the success of AR programs. -
Riding the subscription box wave: Understanding the landscape, challenges, and critical success factors of the subscription box industry
The subscription box e-commerce industry has experienced tremendous growth over the last 5 years. Given the growing size of the industry, this business model warrants the close attention of firms currently offering subscription services as well as companies considering entering this industry. This article presents a detailed overview of the subscription box industry and proposes a framework - the four Cs - for understanding subscription offerings. It identifies challenges and opportunities facing this industry, and it provides managers with guidance in the form of five tenets on how to navigate the subscription box economy. -
Business-to-business selling in the post-COVID-19 era: Developing an adaptive sales force
The COVID-19 pandemic has changed how salespeople interact with customers and with business-to-business (B2B) organizations. Organizations must confront the shifts in how their salespeople operate. Recent research recommends firms develop an adaptive sales force to address disruptions like a pandemic and be prepared to meet such challenges in the future. Based on interviews with marketing and sales executives, we explore how firms have responded to these interconnected changes during the COVID-19 pandemic and offer insight into best practices deployed across industries. -
Cybersecurity: Risk management framework and investment cost analysis
As organizations accelerate digital transformation with mobile devices, cloud services, social media, and Internet of Things services, cybersecurity has become a key priority in enterprise risk management. While improving cybersecurity leads to higher levels of customer trust and increased revenue opportunities, rapidly evolving data protection and privacy regulations have complicated cybersecurity management. Against the backdrop of rapidly rising cyberbreaches and the emergence of novel cybersecurity technologies such as machine learning and artificial intelligence, this article introduces a cyber risk management framework, discusses a cyber risk assessment process, and illustrates a continuous improvement of cybersecurity performance and cyberinvestment cost analysis with a real-world cybersecurity example. -
How blockchain will transform the healthcare ecosystem
Blockchain has the potential to fundamentally transform the healthcare ecosystem, impacting all healthcare participants. In this article, we study the potential impact of blockchains on patient-centered care delivery by looking at the ecosystem of blockchain-based solutions being developed for key stakeholders: patients, pharmaceutical firms, hospital systems, and insurance providers. Building from our interviews with senior managers, our actual experience in the healthcare industry, and our academic research, we outline how blockchain will transform healthcare, and we provide guidance as to how those in healthcare need to start thinking about engaging with blockchain technology. -
Business continuity in the COVID-19 emergency: A framework of actions undertaken by world-leading companies
The COVID-19 emergency has urged companies to operate in new ways to face supply chain interruptions, shifts in customer demand, and risks to workforce health. The organizational ability to respond to critical contingencies is crucial for business leaders in the perspective of continuing business. In our research, we investigate the actions undertaken by 50 world-leading corporations to respond to the pandemic. Applying content analysis to web pages and social network posts, we extract 77 actions related to 13 sub-areas and integrate these into a five-level framework that encompasses operations, customer, workforce, leadership, and community-related responses. We also describe six illustrative company examples of how the emergency can generate opportunities for creating new value. The study advances the scholarly discussion on the impact of emergencies on business continuity and can help leaders define response strategies and actions in the current challenge. -
Mindfulness as a strategy for sustainable competitive advantage
This conceptual article explores how mindfulness can be successfully integrated in the strategy tool kit of organizations. The likely global reconstruction in the aftermath of COVID-19 can be effective if organizations reexamine their existing philosophies and business practices. Against this backdrop, mindfulness is a time-tested practice that has the potential to transcend all functions in a company's value chain and to create a sustainable competitive advantage. This article uses a strategy lens to examine mindfulness in organizations, which has implications for researchers and practitioners. First, I discuss the theoretical frameworks of mindfulness, the performance improvements that individuals can expect from consistent practice, and how these improvements translate to organization-level performance. Next, I summarize the methods and tools for workplace application and the steps for implementing mindfulness strategies in organizations. Finally, I describe implementation challenges and offer assessment tools for mindfulness. -
Decision augmentation and automation with artificial intelligence: Threat or opportunity for managers?
Artificial intelligence (AI) has emerged as a promising and increasingly available technology for managerial decision-making. With the adoption of AI-enabled software, organizations can leverage various benefits of the technology, but they also have to consider the intended and unintended consequences of using the technology for managerial roles. It is still unclear whether managers will benefit from enhancing their abilities with AI-enabled software or become powerless puppets that do more than announce AI-enabled software results. Our research has revealed distinct ways in which organizations can use AI-enabled decision-making solutions: as tools or novelties, for decision augmentation or automation, and as either a voluntary or a mandatory option. In this article, we discuss the implications of each of these combinations on the relevant managers. We consider outcomes related to managerial job design and derive practical advice for organizational designers and managers who work with AI. Our outcomes provide guidance on how to deal with the conflict-riddled relationship between managers and technology with regard to capabilities, responsibilities, and acceptance of AI-enabled software. -
Entrepreneurial Underpinnings of Direct Selling
Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or by representing a company's product. Entrepreneurs who use a direct selling approach utilize independent salespeople to market and sell their products or services directly to the consumer. These direct selling distributors are offered a low-risk, low-cost path to micro-entrepreneurship. Framed within the context of entrepreneurship and an overview of the long-term sustainability of the direct selling business model, this book dives into three main issues associated with direct selling: compensation, ethics and compliance, and global reach. Written for practitioners, academics, members of the press, policy makers, and students, this text offers research and knowledge about the economic and social benefits of direct selling and provides detail and clarity on key issues related to direct selling as a sustainable business model. Chapter 1 starts off by describing various types of ventures entrepreneurs can create, including survival, lifestyle, managed growth, and aggressive growth ventures. To build these ventures, entrepreneurs can utilize direct selling. Companies that use direct selling as their distribution channel then create individual sales opportunities for those interested in engaging in the gig economy. These workers could then use direct selling to build their own businesses while being back by established brands that have quality products, marketing tools, business training, and technological resources. Examples of companies that use direct selling are provided throughout the chapter, including Mary Kay Inc. and Traci Lynn Jewelry. -
Direct Selling-From Camels to Cyberspace
Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or by representing a company's product. Entrepreneurs who use a direct selling approach utilize independent salespeople to market and sell their products or services directly to the consumer. These direct selling distributors are offered a low-risk, low-cost path to micro-entrepreneurship. Framed within the context of entrepreneurship and an overview of the long-term sustainability of the direct selling business model, this book dives into three main issues associated with direct selling: compensation, ethics and compliance, and global reach. Written for practitioners, academics, members of the press, policy makers, and students, this text offers research and knowledge about the economic and social benefits of direct selling and provides detail and clarity on key issues related to direct selling as a sustainable business model. Chapter 2 offers an historical perspective on direct selling. There was a form of direct selling as early as 6,000 years ago when peddlers would travel the Silk Road to sell goods. Five main events brought about how direct selling looks today: the first company who had people go door-to-door to sell products, welcoming women as distributors, the formation of the Direct Selling Association (DSA), a new approach to compensation, and the evolution of the sales method. All five events are discussed. The effects of the COVID-19 pandemic on direct selling are also explored. Direct selling has long been both a go-to-market strategy and a form a gig work; many businesses and individuals have achieved success in both forms. Direct selling companies have evolved over time and will continue to do so to take advantage of future opportunities. -
Direct Selling Distributor Compensation Plans
Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or by representing a company's product. Entrepreneurs who use a direct selling approach utilize independent salespeople to market and sell their products or services directly to the consumer. These direct selling distributors are offered a low-risk, low-cost path to micro-entrepreneurship. Framed within the context of entrepreneurship and an overview of the long-term sustainability of the direct selling business model, this book dives into three main issues associated with direct selling: compensation, ethics and compliance, and global reach. Written for practitioners, academics, members of the press, policy makers, and students, this text offers research and knowledge about the economic and social benefits of direct selling and provides detail and clarity on key issues related to direct selling as a sustainable business model. Chapter 3 discusses the issue of compensation in regards to direct selling. Compensation is a key motivator for a company's distribution channel partners to perform the work delegated to them in the direct selling (DS) distribution channel. For nonemployee independent contractors to work effectively, they need to be rewarded for brand loyalty, sales generation, and sales management development and expertise. DS distributor compensation should provide various incentives while offering the characteristic freedom of DS distributor participation. Compensation can include many elements, including personal consumption wholesale discounts and bonuses for successful recruiting. Ways distributors can earn real financial benefits are also outlined; some of these methods are measured by the company, while others aren't. Examples are provided throughout. A counterargument to the idea that direct selling companies are pyramid schemes is also offered. -
Ethics and Compliance in Direct Selling
Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or by representing a company's product. Entrepreneurs who use a direct selling approach utilize independent salespeople to market and sell their products or services directly to the consumer. These direct selling distributors are offered a low-risk, low-cost path to micro-entrepreneurship. Framed within the context of entrepreneurship and an overview of the long-term sustainability of the direct selling business model, this book dives into three main issues associated with direct selling: compensation, ethics and compliance, and global reach. Written for practitioners, academics, members of the press, policy makers, and students, this text offers research and knowledge about the economic and social benefits of direct selling and provides detail and clarity on key issues related to direct selling as a sustainable business model. Chapter 4 focuses on ethics and compliance of direct selling. Product claims and earnings claims are two of the most prominent issues facing direct selling companies; both of these types of claims are described. The direct selling industry has very strong regulatory systems compared to direct-to-consumer marketplaces. The integrity of direct selling channels is maintained by the ethics and compliance programs' regulatory practices. The importance of having ethics and compliance officers, trainings, and ways to monitor and reinforce compliance is discussed. Several organizations promote self-regulatory, ethical practices through consumer, government, and academic relationships and monitor direct selling firms. With these organizations, direct selling companies can focus on offering high-quality products to consumers and business opportunities to aspiring entrepreneurs. -
Direct Selling in the Global Marketplace
Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or by representing a company's product. Entrepreneurs who use a direct selling approach utilize independent salespeople to market and sell their products or services directly to the consumer. These direct selling distributors are offered a low-risk, low-cost path to micro-entrepreneurship. Framed within the context of entrepreneurship and an overview of the long-term sustainability of the direct selling business model, this book dives into three main issues associated with direct selling: compensation, ethics and compliance, and global reach. Written for practitioners, academics, members of the press, policy makers, and students, this text offers research and knowledge about the economic and social benefits of direct selling and provides detail and clarity on key issues related to direct selling as a sustainable business model. Chapter 5 explores the global reach of direct selling. Entering new geographic markets offers faster revenue growth for direct selling companies as new people experience the products or services. International expansion comes with various benefits, such as competitive advantage and foreign investment opportunities for the company as well as business opportunities for individuals. But it also comes with its challenges: understanding the customer journey, recruiting and training distributors, and maintaining effective and efficient supply chains are more complex when doing business in multiple countries rather than one. Local regulatory restrictions and political unease can also be obstacles. The process of deciding where and how to expand is outlined, including working with cultural differences and the geographic distance. Demography and technology are two trends that have an impact on business transactions within an emerging economy. -
On the Benefits of Direct Selling
Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or by representing a company's product. Entrepreneurs who use a direct selling approach utilize independent salespeople to market and sell their products or services directly to the consumer. These direct selling distributors are offered a low-risk, low-cost path to micro-entrepreneurship. Framed within the context of entrepreneurship and an overview of the long-term sustainability of the direct selling business model, this book dives into three main issues associated with direct selling: compensation, ethics and compliance, and global reach. Written for practitioners, academics, members of the press, policy makers, and students, this text offers research and knowledge about the economic and social benefits of direct selling and provides detail and clarity on key issues related to direct selling as a sustainable business model. Chapter 6 explores the financial and nonfinancial benefits of direct selling. Three female direct sellers share their stories regarding their experience. Two empirical surveys-their design and results-are discussed at length. The first survey looks at why people start working in the gig economy and emphasizes the expected and actual financial rewards of gig workers who are direct sellers. The second survey explores why people become direct sellers specifically and the nonfinancial benefits they gain from their direct selling experience. Typical reasons respondents gave for becoming direct sellers included earning extra money, improving personal lifestyles, and being able to purchase products or services from the company at a discount. Direct sellers' expectations regarding how much money they would make were mostly realistic; the majority of respondents also believed their self-efficacy was improved through their direct selling experience. -
Opportunities and Challenges in Direct Selling
Direct selling isn't just an industry or a business model-it's people. Direct selling is successful today because of the people who have been able to build successful businesses from the ground up or by representing a company's product. Entrepreneurs who use a direct selling approach utilize independent salespeople to market and sell their products or services directly to the consumer. These direct selling distributors are offered a low-risk, low-cost path to micro-entrepreneurship. Framed within the context of entrepreneurship and an overview of the long-term sustainability of the direct selling business model, this book dives into three main issues associated with direct selling: compensation, ethics and compliance, and global reach. Written for practitioners, academics, members of the press, policy makers, and students, this text offers research and knowledge about the economic and social benefits of direct selling and provides detail and clarity on key issues related to direct selling as a sustainable business model. Chapter 7 discusses opportunities and challenges in the direct selling marketplace. The direct selling channel has considerable flexibility to sustain income for entrepreneurs. To look at maintaining this flexibility, the PESTEL analysis of macroenvironmental influences and a stakeholder impact analysis are utilized. The PESTEL analysis explores six external forces-political, economic, social, technological, ecological, and legal-that create opportunities and challenges for a direct selling organization. A stakeholder impact analysis identifies stakeholders, the opportunities and threats they represent, the responsibilities the company has to them, and how the company should address their concerns. A discussion among four executives in the direct selling marketplace on issues they view as opportunities and challenges is also provided; they focus on social, technological, and legal issues. -
Rappi: the Latin American Super App?
Rappi Inc. (Rappi) was an on-demand delivery mobile application (app) that allowed users in Latin America to shop online for groceries, meals, and other products and have these delivered to them. It also provided various other services, such as cash withdrawals and dog walking. Rappi was founded in 2015, and in less than five years, it had evolved from operating in improvised headquarters in a parking lot in Bogotá to becoming a member of an exclusive club of technological start-ups valued at more than US$3.5 billion. In 2021, although the situation was highly favourable for Rappi, it still faced major challenges to consolidate as a technology firm that would make life easier for its users. The question for Rappi now was how to continue its growth path in order to become the leading super app for Latin America. -
Lenovo: Sustaining the Global Market Leadership
This case provides students an opportunity to learn how to assess the competitiveness and profitability of the global computer industry through the SWOT analysis framework. By analyzing the effectiveness of Lenovo's business growth strategy, enabled by a dual supply chain approach for achieving both responsive and efficient objectives, students will also understand how Chinese companies can successfully transform themselves from operating merely as an OEM to OBM with a recognized global brand. -
Wild Earth: Plant-Based Food in a Meat Obsessed Industry
This case details the story of two of Wild Earth's cofounders on their three year journey since starting the plant-based dog food company in Berkeley, CA. It highlights several ups and downs relating to product creation, fundraising, and pricing and distribution issues. The case focuses on several critical decision points the founders faced, and ends with an open ended question regarding the need for a subsequent financing and what path forward the company should pursue.