Working Harder, Amazon Wages, and More – Boston News
Let’s explore some of the most interesting stories that have emerged from Boston business schools this week.
Knowing What Your Boss Earns Can Make You Work Harder – Harvard Business Week
In new research co-authored by HBS’s Zoë B. Cullen and UCLA’s Ricardo Perez-Truglia, it was discovered that “knowledge of managerial compensation seemed to coax more effort out of workers, [but] the exact opposite [is true] when employees learned what peers were making.”
“How Much Does Your Boss Make? The Effects of Salary Comparisons” finds that “these externalities can have important implications for the provision of incentives within the firm and for pay transparency.”
According to the Harvard Business Week article, the paper could have significant ramifications in terms of how companies “rethink the equity of their own compensation plans and the level of salary transparency they wish to maintain.”
You can read the full HBW article here.
What’s Behind Amazon’s Wage Hike? – MIT Sloan Newsroom
At a moment where Amazon has received intense criticism of its “labor practices and low wages” exemplified by Senator Bernie Sanders’ Stop BEZOS Act, the e-commerce behemoth recently announced that its minimum wage for all U.S. employees will be $15 per hour, effective November 1.
MIT Sloan Associate Professor of Operations Management and Good Jobs Institute founder Zeynep Ton explains the political strategy behind Amazon’s decision.
In addition to Amazon’s desire to position itself as a “worker-friendly company,” Ton explains, “a lot of retailers are finding it difficult to attract people, especially going into the holiday season. [Outlets like] Macy’s and Target are looking to hire tens of thousands, and it’s going to be harder for them now. They’ll have to up their game, not just for the holidays but in general.”
Amazon Founder, Chairman, and Chief Executive Officer Jeff Bezos, the world’s richest man, has become part of the focus on Amazon’s questionable business practices in recent years.
Ton adds, “The investors are very different, and their tolerance for low profitability is much lower for general retailers than for Amazon. It’ll be challenging for other companies, and I hope they start to look for ways to make their people central to their success.”
You can read more about the move from Amazon here.
Why Aren’t Companies Getting Better At Breakthrough Innovation? – Babson Thought & Action
For their new book, Beyond the Champion: Institutionalizing Innovation Through People, Babson College F.W. Olin Graduate School of Business professors Gina Colarelli O’Connor, Andrew Corbett, and Lois Peters posit that “looking to grow and succeed, getting better at innovation is a constant, nagging, and critically important challenge.” Beyond the Champion offers a blueprint for organizational change.
In an excerpt from the book, the authors write:
“Strategic innovation is a “team sport”: it’s so big that no one person has the skill set to do it all. Individuals want defined roles that allow them to take advantage of their innovative strengths—roles that give them some autonomy while still providing guidance for where they should invest their energies. The passion model is great, but it’s not enough in a large, established company.”
You can read the full Babson Thought & Action article here.
Clark Atlanta Announces New Dean, and More – Atlanta News
It’s time for a newsflash! Let’s take a look some of the biggest business school and MBA news coming out of Atlanta metro this week.
Silvanus J. Udoka Named Dean of Clark Atlanta University’s School of Business — Clark Atlanta News
According to a press release issued by the school, Clark Atlanta University President Ronald A. Johnson announced the selection of Silvanus J. Udoka, Ph.D., as dean of the university’s School of Business Administration. The current professor and chair of the Department of Management will enter his new role on June 1, 2018.
“I am honored to have been selected to serve as dean of Clark Atlanta University’s School of Business Administration,” Udoka said. “The history of the institution and the storied reputation of the School of Business Administration is palpable and the opportunities to create a transformative, innovative learning environment — attributes that first compelled me to pursue this assignment — align with my own mission to produce business and industry leaders who will not only compete successfully within the contemporary business environment, but apply critical thought, analysis and creativity to develop new market paradigms across vast sectors of the global economy. We are going to do great and exciting new things at Clark Atlanta.”
You can read more about Udoka’s promotion here.
25 Alumni Recognized During Emory Entrepreneur Awards — Emory Business News
Last month, the Emory Entrepreneur Network and Emory Alumni Association recognized 25 entrepreneurs Emory University alumni at the second annual Emory Entrepreneur Awards. According to the school, the awards celebrate alumni entrepreneurs who have innovated in their start and industry.
Several of the recent Emory entrepreneur honorees pose during last month’s event / Photo via emorybusiness.com.
“As you’ll see tonight, we’ve got a really good diversity of different folks from different industries and different business that they’ve created,” Steve Greenfield, co-president of the Emory Entrepreneur Network said. “Thankfully, with the support of folks like the Emory Alumni Association and Goizueta, we’ve finally gotten some momentum behind this.”
You can see the list of honorees here.
New Mentoring Program Pairs MBA, Master’s Students With Professionals — Georgia State University Newshub
The J. Mack Robinson College of Business recently launched a graduate mentoring program that helps MBAs build relationships with seasoned industry veterans. The new six-month program matches mentors using an algorithm that examines factors such as industry, years of experience, career goals, and expected outcomes.
“We are employing the latest technologies to ensure our new graduate mentoring program is another way in which we deliver on our vision that ‘no one gets closer to business than Robinson,’” dean Richard Phillips said.
Learn more about the mentoring program here.
These are the Top 5 Contenders for Amazon’s HQ2, According to Bank of America – Business Insider
In non-school news, a handful of Bank of America industry insiders believe that Atlanta can very well be the final destination for HQ2, Amazon‘s much publicized soon-to-be second headquarters.
“Bank of America considered two factors in choosing the cities: how closely each city mirrors Seattle (the site of Amazon’s current headquarters), and how attractive the city’s financial, employment, education, business, housing, transportation, and innovation sectors are.”
Amazon’s Seattle headquarters / Photo via Elaine Thompson/Associated Press.
The company has not yet released details of its pending final selection. You can read more about the industry expert’s predictions here.
Amazon, Philly Win Super Bowl According to Northwestern Kellogg
Philadelphia football fans took to the streets, toppling cars, scaling street lamps, and setting at least one fire to celebrate their beloved Eagles’ first-ever Super Bowl win, 41 to 33 against the New England Patriots. But according to MBA students at Northwestern’s Kellogg School of Management, e-commerce giant Amazon was the victor in terms of best ads of the night.
On Sunday, as the game got underway in minus-2-degree Fahrenheit Minneapolis, approximately 50 Kellogg students teamed up with marketing professors Tim Calkins and Derek Rucker to determine the night’s winners and losers in the battle of the brands. Advertisers spend more than $2 billion each year and roll out highly anticipated Super Bowl commercial spots in an effort to imprint their brands in the minds of millions of spectators—some wowing and others bombing in the process.
Kellogg students watch commercials during the Super Bowl at the Allen Center Atrium in Evanston, Illinois, February 4, 2018. Photo by Jim Young for Kellogg
Armchair spectators around the world pick their own winners and losers among the ads, but for the 14th year running, Kellogg students applied a unique framework for evaluating an ad’s brand-building potential as part of last night’s 2018 Kellogg School Super Bowl Ad Review. Using the ADPLAN framework to evaluate each ad according to six critical criteria—Attention, Distinction, Positioning, Linkage, Amplifications and Net Equity—the Kellogg students determined the winner of the night to be Amazon with its “Alexa Loses Her Voice” commercial spot. Also scoring highly were Mountain Dew, Doritos, Tide, Avocados from Mexico, and Wendy’s.
Joining the Pats in defeat, according to the Kellogg review, were Squarespace and T-Mobile, which each received “F” grades for least effective advertising during the game.
“Amazon used a cast of celebrities that focused us on the brand, reinforced the equity in Alexa, and ultimately was fun to discuss and share with those around you,” Professor Rucker said in a statement. The Amazon ad included appearances by Cardi B, Rebel Wilson, and Amazon CEO Jeff Bezos. “However, Squarespace and T-Mobile both missed the mark with questionable positioning and unclear calls to action,” continued Rucker.
Kellogg students analyzing Super Bowl ads in real time. Photo by Jim Young for Kellogg
Professor Calkins called attention to two trends that emerged across the big game’s ads—a competitive angle and philanthropy. “As competitive as the game was, the category wars were equally competitive,” Calkins said in a statement. “For example, there was hard hitting competition in the wireless wars with some brands calling one another out,” he noted. In addition to poorly performing T-Mobile, wireless advertisers included Sprint and Verizon, which the Kellogg student review team each awarded “B” grades.
“Many brands tried to appeal to viewers through philanthropic causes, including Toyota, Ram, and Hyundai,” Calkins added. Ram, for its part, sought to sell its trucks using images of people helping others with a sermon given by Dr. Martin Luther King, Jr. as the voice over. The ad concluded with the phrase “Built to Serve” flashed on the screen alongside a Ram logo. Unfortunately for Ram, the social media backlash was fast and furious.
“A Martin Luther King Jr speech to sell @Dodge Ram trucks? Totally offensive #mlk,” wrote one user on Twitter.
Several other tweets expressed similar sentiments:
There was audible painful groaning at the Super Bowl party I’m at as everyone realized Dodge Ram was trying to profit off of an MLK speech
— Hunter Walker (@hunterw) February 5, 2018
Not sure MLK’s dream was to drive a Dodge Ram.
— ItsTheReal (@itsthereal) February 5, 2018
“I have been to the mountaintop. And I got there in a Ram truck.” – MLK
— SportsPickle (@sportspickle) February 5, 2018
The Kellogg student team gave the Ram commercial a “C” grade overall, but Calkins had more to say in an interview with the New York Times. “It’s the wrong mistake to make given everything that’s going on in the U.S. right now,” he told the Times. “There’s so much emotion right now around race in this country that this was a high-risk move, and clearly it’s not going over very well,” he continued.
“I think it was well intentioned, but they’re going to have a lot of explaining to do,” Calkins continued. “They did not release this ahead of time, so they went for the surprise. They got that, but at the same time they now have a big problem with feedback and people being upset.”
Though many on Twitter directed their ire toward Dodge—the Detroit-based car manufacturer founded by two brothers of that name in the early 1900s—the Ram Truck brand was officially separated from the Dodge car brand in 2009 as part of an acquisition by Italian automaker Fiat S.p.A. Its successor, Fiat Chrysler Automobiles, is the current owner of the Ram Tuck brand.
Perhaps some of the confusion around brand will be a boon to Ram’s owner as it attempts to recover from its Super Bowl fumble. As for whether ad champion Amazon will look favorably on football champion Philadelphia as a spot for its future HQ2—another topic of speculation on social media last night—only time will tell. What we do know is that the students at Kellogg will carry lessons learned from advertising’s biggest night along with them into their future careers in marketing.
For the full 2018 Kellogg School Super Bowl Ad Review results, click here.
To learn more about the Kellogg School Super Bowl Advertising Review, click here.
This article was republished with permissions from our sister site, Clear Admit.
20 Cities Survive Amazon HQ2 Shortlist
Four months after Amazon announced plans to construct a second headquarters, North American cities have been making grandstanding pleas in order to court the ecommerce behemoth. New York City’s mayoral office lit up the Empire State building with Amazon’s glowing orange hue in a symbolic gesture, while certain cities like Chicago went the more extreme route, proposing laws that could funnel income taxes directly back to the company. After much speculation, here is the official Amazon HQ2 shortlist:
- Atlanta
- Austin
- Boston
- Chicago
- Columbus, Ohio
- Dallas
- Denver
- Indianapolis
- Los Angeles
- Miami
- Montgomery County, Md.
- Nashville
- Newark
- New York
- Northern Virginia
- Philadelphia
- Pittsburgh
- Raleigh, N.C.
- Toronto
- Washington, D.C.
Unsurprisingly, most of the cities that made the cut were among the largest in North America, with only one Canadian city—Toronto—left standing. Over 230 cities from the U.S., Canada, and Mexico made official bids for the company’s second headquarters, with Amazon prioritizing tech-centric metros of populations larger than 500,000. In fact, only four of the 20 metro areas—Miami, Nashville, Newark, and Pittsburgh—have a population of less than half a million, with Newark being the smallest of the entrants. Notably, Newark offered perhaps the largest financial incentive to the company, proposing upwards of $7 billion in tax incentives.
How the Amazon HQ2 shortlist was formed is not totally known, according to the New York Times:
“According to people briefed on the process who would speak only anonymously because the deliberations were private, the process was conducted by a team of about a dozen people within Amazon, including economists, human resources managers and executives who oversee real estate. Jeff Bezos, Amazon’s chief executive who was the mastermind behind turning the search into a public process and coined the term “HQ2,” was also involved, the people said.”
At the time of the initial announcement, Amazon released a stream of positive economic statistics about its impact in Seattle, home to the original headquarters. The company stated (although these statistics are still not yet verified by any source outside of Amazon) that it added $38 billion USD to the value of the city from 2010-16 alone, due to its investments and rapidly expanding workforce. Detractors argue that the financial value added to the city did not positively impact the quality of life, however, with more than 51 percent of Seattle residents making less than $50,000 per year and more than quarter of city residents earn less than $25,000 per year. The influx of high-level employment also contributed to rapidly rising housing costs and poorer traffic.
Experts from CNBC believe that Raleigh might be the front-runner of the remaining entrants, which matches the initial bid criteria the most. Although some speculate that Austin most aligns up with Amazon’s future. The company declined to announce when the final decision will be made.
What Amazon Means For MBA Students
Not so secretly, Amazon has become one of the world’s largest MBA recruiters, hiring students from top schools all over the world. We’ve previously outlined the details of why it has become such an attractive destination for business school students.
The company creates a direct pipeline from its MBA internship program to full-time employment, which should rapidly increase with the creation of HQ2. In a previous interview with the Financial Times, Miriam Park, the Amazon Director of University Programs, highlighted the company’s recruitment strategy:
“The Amazon recruitment process is designed to ensure we hire top candidates with high-growth potential whatever their background may be. As part of this we recruit current MBA students and MBA alumni for permanent and internship opportunities worldwide and see MBAs as an important part of our leadership development. We value people who can balance long-term strategic thinking with tactical execution, and who have the ability to make data-driven decisions.”
Stay tuned for more information about the second headquarters and more potential MBA employment opportunities with MetroMBA.
San Diego Enters Amazon HQ2 Bidding War
Amazon is in the market for a second home, and the city of San Diego wants in.
The tech giant, which has built its base through digital sales, is looking to expand beyond its Seattle headquarters. Other cities like Chicago, Philadelphia, and New York have also expressed interest in having the company build its new headquarters in their cities. Amazon is looking at cities with populations higher than one million, an already-set tech workforce, and a business-friendly work environment, the San Diego Tribune reports.
“We expect HQ2 to be a full equal to our Seattle headquarters,” Amazon Founder and CEO Jeff Bezos told the Tribune. “Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. We’re excited to find a second home.”
This new headquarters will potentially employ 50,000 people and provide a major economic boost to any city it joins. San Diego city officials confirmed earlier this month that they’d submit a proposal by the Oct. 19 deadline for Amazon’s $5 billion headquarters. San Diego might just be a perfect place for the company to create a nest. It’s already home to a number of qualified employees, especially its MBA graduates.
READ MORE: The New Amazon Headquarters Bidding Race Begins
“San Diego has the geographic proximity to international markets, unparalleled quality of life, and workforce talent that companies like Amazon are looking for, so Mayor (Kevin) Faulconer’s office has directed the San Diego Regional Economic Development Corp. to coordinate a regional response,” said Matt Awbrey, Faulconer’s Deputy Chief of Staff, in a statement, to the Tribune.
The city has property available downtown and is hopeful that Amazon will decide to make this city is next stop. However, it remains to be seen if the company wants to extend beyond its already-existent West Coast presence. Guess we’ll just have to wait and see.
Harvard Business School Breaks Down the Amazon-Whole Foods Merger
The hefty $13 billion price Amazon paid for high-end grocery store chain Whole Foods means a lot for the future of both companies. But what exactly does purchase mean for the future of the American eCommerce giant? Harvard Business School recently looked deeper into the move.
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