Business & Entrepreneurship

Companies maintain a delicate balance when it comes to selling product lines that contain varying degrees of quality. Premium products need to be positioned beyond the claim of “higher quality” alone. A high-end product needs to compare favorably with its direct competitors, but it can’t appear too similar to other items in the firm’s product line. Part of the solution, according to a marketing professor at the Olin School of Business at Washington University in St. Louis is for firms to use an advertising strategy that contains image-oriented appeals to differentiate its premium products from the rest. More…

Corporate governance has been in the forefront of public debate lately, thanks to such high-profile events as options backdating, the awarding of inflated CEO compensation packages and efforts to augment shareholder empowerment. These larger scandals have implications that reach beyond the boardroom into every aspect of an enterprise. Ultimately, the transgressions take their toll on all of society, according to Stuart Greenbaum, former dean of the business school at Washington University in St. Louis.

Linda Babcock, co-author of “Women Don’t Ask: Negotiations and the Gender Divide,” will discuss her book and research in a community forum on “societal factors that hold women back from asking for what they want” that runs from 7 – 8:30 p.m. March 5 in the Bryan Cave Moot Courtroom, Anheuser Busch Hall, Danforth Campus of Washington University.

Steve Jobs, chief executive of Apple Computers, has issued a challenge to the music industry, saying Apple would support an open online music marketplace if the four-largest music companies would drop the use of digital-rights management software — the technology that prevents the copying of music sold online. Jobs’ challenge, which some consider shocking, is just the latest brick to fall in the inevitable collapse of a legal wall that since 1999 has been obstructing technological progress and preventing people from enjoying more and better music at a lower price, suggests Michele Boldrin, Ph.D., an economist at Washington University in St. Louis who studies the hidden costs of intellectual property rights protections.

Eric ChouShow me the money.It’s been said by everyone from Cyndi Lauper to Alex Rodriguez that “money changes everything.” Now psychologists at Washington University in St. Louis have published a paper to support that claim. Studying delayed gratification and risk, the psychologists found that people are more likely to wait on collecting full payment for a non-consumable monetary reward than they are for any of three consumable rewards — beer, candy and soda.

Venezuelan President Hugo Chavez and Cuban leader Fidel Castro in 2004Venezuelan President Hugo Chavez’s recently announced plan to nationalize the telecommunications and electricity industries in his country sent shockwaves through the boardrooms of multinational corporations with large holdings in Latin America. While some see Chavez as the leading edge of a “socialist revolution,” research from Washington University in St. Louis suggests this latest nationalization push is nothing more than politics as usual, part of a predictable pattern of political tensions that often arise when corporations make large foreign investments.

A.G. Edwards Inc., the St. Louis-based national investment firm, will establish the A.G. Edwards Visiting Professorship in Entrepreneurship.

Three early stage companies received commitments for funding and mentoring support at the annual Olin Cup Awards Ceremony Feb. 1. The top prize of $50,000 went to medical device company Neurolife. Two other companies received $20,000 in funding: Senetric, a company that developed software to reduce the cost of Radio-frequency identification (RFID) sensor networks; and Smart DNA Solutions, a company that offers affordable genetic testing. The $5,000 student award went to Peter Braxton of Neurolife.

Entrepreneurs are just as sensitive to uncertainty as anyone. In fact, several studies suggest that entrepreneurs are more risk-averse than other people. So why do they risk losing their shirts by starting a business? They have an overdeveloped sense of confidence that that they can beat the odds, according to research from a business professor at Washington University in St. Louis.

Over the past 18 months, many trees have given their lives so that articles titled something like, “Is India the next China?” could appear. But, an equally interesting question a professor from Washington University in St. Louis posed is, “Is China the next India?” These two questions offer a lens through which we might glimpse, however darkly, the economic futures of India and China. And by posing these questions side by side, Professor Jim Little said we can see an interesting pattern emerge: as China moves up the technology ladder, the drivers of its growth are becoming more like India’s. At the same time, India increasingly resembles China’s current economy as it develops as a manufacturing base.