Business & Entrepreneurship

SwinkelsWashington University in St. Louis business professor Jeroen Swinkels, August A. Busch, Jr. Distinguished Professor of Managerial Economics and Strategy at the Olin School of Business, was elected a fellow of the Econometric Society in December 2004. With a worldwide membership, the Econometric Society is the most prestigious society in the field of economics. Over the past decade, only about 15 candidates per year have been elected as new fellows.

VeechTylenol, Bridgestone Firestone, Columbine High School, Exxon, McDonald’s, United Airlines, American Airlines — all of these organizations have been hit by a major crisis. Companies never know when they might be struck by a terrorist attack, a major product recall as a result of deaths or injury, workplace violence, a fire or explosion, a nasty scandal or sudden death of the company’s leader. In today’s media climate, any small or large organization can land on the front page of the daily newspaper or the six o’clock TV news before the dust has hit the ground. Business managers need to be prepared for such an eventuality with a detailed crises communication plan, says Annette Veech, senior lecturer of business communications at the Olin School of Business at Washington University.

Executive pay is sometimes appropriate, often not.In a perfect business world, corporate governance and decision-making would follow sound and rational processes. And, indeed, Professor Todd Milbourn has discovered that, at times, executives are compensated appropriately and appropriate decisions are taken. This finding is from what he calls the “bright side” of his research. But, the real world can also serve up Disneys, Enrons, and WorldComs. Not all mismanagement, however, makes the front pages or drives companies into bankruptcy. More commonly it goes on unnoticed or as accepted practice, says Milbourn, associate professor of finance at the Olin School of Business at Washington University in St. Louis. His collaborative research also reveals a “dark side,” where companies reward chief executive officers simply for being lucky and where “yes men” often rule.

The right pricing strategy can keep the cash register full.Determining the right pricing strategy can make or break the overall profitability of a firm, especially during the all-important December holiday season. One such strategy, dynamic pricing, long practiced in the airline and hotel industries, is showing promise and profitability in the world of retail. When applied to products sold over a short sales season — new toys, skiwear, and the like — dynamic pricing can boost profits for a firm, say two professors of the Olin School of Business at Washington University in St. Louis.

The John M. Olin School of Business at Washington University in St. Louis on Dec. 2 awarded a total of $70,000 in seed investment capital to two startup businesses in its annual Olin Cup entrepreneurship competition. The Olin Cup, along with $50,000 in seed money, went to Luminomics, a biotechnology company that develops regenerative drug therapies for degenerative diseases. An award of $20,000 went to The Blessing Basket, a not-for-profit company that imports baskets made by weavers in undeveloped countries. Honorable mention was given to Core Devices, maker of a portable anesthesia machine.

James J. Beirne has joined the Olin School of Business as the associate dean and director of the Weston Career Resources Center effective Nov. 29.

The winners of the 2004 Olin Cup Entrepreneur Competition will be announced Dec. 2 from a pool of five finalists chosen Oct. 29. The finalists are competing in a yearlong competition for $70,000 in investment capital provided by Washington University’s Skandalaris Center for Entrepreneurial Studies.

“Bob and Julie Skandalarises’ generosity has transformed the study, teaching and practice of entrepreneurship at Washington University and this most recent gift will spread the entrepreneurial culture to virtually every venue at our University,” explained Stuart Greenbaum, dean of the Olin School of Business.

Legal scholars, planners and political scientists from the Midwest will come together at WUSTL School of Law Dec. 3-4 to discuss the opportunities for reform in planning and land use regulation. Rep. Marcy Kaptur and Paul Farmer, president of the American Planning Association, will service as conference keynote speakers. The conference features two days of panel discussions on political leadership in planning statute reform, contemporary planning efforts, sprawl and urban growth, housing and regulatory streamlining, and the impact of state and local planning programs.

Originating in Washington University research laboratories, St. Louis-based biotechnology company Apath has generated enough profit in just seven years to contribute $1 million in royalty payments back to the School of Medicine.