#working knowledge

[the-ephemeral-ethereal]

A sophisticated human can become primitive. What this really means is that the human's way of life changes. Old values change, become linked to the landscape with its plants and animals. This new existence requires a working knowledge of those multiplex and cross-linked events usually referred to as nature. It requires a measure of respect for the inertial power within such natural systems. When a human gains this working knowledge and respect, that is called 'being primitive.' The converse, of course, is equally true: the primitive can become sophisticated, but not without accepting dreadful psychological damage.

from Children of Dune by Frank Herbert

[harvardbusinessschool]

The Life of Luxury and How to Sell It

Luxury is its own market, but who shops there? Who sells there? What's the best strategy? Researchers at Harvard Business School examine consumerism at the top of the curve.

Research released recently by iseecars.com seems to indicate a fleeting happiness with luxury cars. New buyers of BMW, Jaguar, Land Rover, Mercedes-Benz, and Porsche sell them more frequently in the first year than owners of other models. Car owners who drive their vehicles into the ground scoff knowingly: Money can’t buy you a happy ride.

But looking at the statistics more closely reveals a more nuanced reality. The vehicles traded in are often baseline models of those prestige brands, favored more by aspirational buyers than the filthy rich. “Despite the popularity of these vehicles, they generally have below-average reliability ratings from Consumer Reports, which could contribute to why owners get rid of them so quickly,” said iSeeCars CEO Phong Ly, in a statement accompanying the report. Owners of ultra-high-end vehicles, in general, hold on to them.

Welcome to the potentially lucrative but often confusing dynamics of the luxury market. Harvard Business School researchers have studied the trends to answer a number of questions. Does a prestige brand like Longchamp dilute its aura by selling an affordable handbag? Does a CEO need to understand aesthetics? Is a high-end car maker better off emphasizing performance over luxury? Are luxury and sustainability mutually exclusive? And just what is the “new aspirational lifestyle?” Here is what they found.

[harvardbusinessschool]

Branding Sells Cereal, Handbags, and Vacations. Can It Sell a Country?

The 70th anniversary of Israel’s founding last year stirred reflection about the country’s image, values, and position in the world among everyone from former diplomats to Hollywood actors.

Despite efforts to portray Israel as modern and safe, the Israeli-Palestinian conflict and the country’s complicated history still dominate public consciousness. Memories of failed peace talks tend to loom larger than Israel’s image as a startup nation. Thousands of Instagram posts from Tel Aviv’s gay pride festivities or the buzz from winning the recent Eurovision song contest may not be enough to overcome decades of TV footage of soldiers and tanks that linger in the mind.

To Harvard Business School marketing professor Elie Ofek, it’s more proof that influencing long-held perceptions about a region requires more strategic thinking. After all, it took more than billboards and press junkets to turn Santa Clara County into Silicon Valley.

“Countries are beginning to realize—Israel being one of them—that they need to engage in public diplomacy, not just a foreign diplomacy, and in place branding, not just political advocacy, ” says Ofek, the T.J. Dermot Dunphy Professor of Business Administration. “Part of that is affecting what people in other countries perceive your country to be.”

What does it take to create Denmark’s reputation for modern design or Bali’s Eat Pray Love-style picture of tropical centeredness? Ofek examined the underlying factors behind winning and losing place branding efforts in two recent cases, “The Brand Management of Places” and “Israel at 70: Is it Possible to (re)Brand a Country?”

Read more. 

[harvardbusinessschool]

How Entrepreneurs Can Turn Lead Into Gold

Innovative about creating new products, entrepreneurs often lose imagination when it comes to funding their dreams. Andy Wu reveals alternatives beyond friends and family.

Entrepreneurs aren’t short on ideas for exciting new products or companies, but they are often short-sighted when it comes to finding ways to fund and build those projects.

“There is a huge amount of discussion about how you come up with a new entrepreneurial possibility, Yelp for dogs or Uber for cats, or whatever,” says Andy Wu, assistant professor of business administration in the Strategy unit of Harvard Business School. “What’s overlooked is a comprehensive framework for how you mobilize the resources—such as financing, employees, and partners—to bring the idea to life.”

Along with colleagues David R. Clough, Tommy Pan Fang, and Balagopal Vissa, Wu recently conducted a review to examine how the entrepreneurial community thinks about acquiring resources, publishing their work in the paper, Turning Lead Into Gold: How Do Entrepreneurs Mobilize Resources to Exploit Opportunities? in the Academy of Management Annals.

Their conclusion: Far too much focus is placed on raising money and signing formal contracts, but far too little attention on informal and non-financial resources that can make or break a new business.

Read more. 

[harvardbusinessschool]

Ignore This Advice at Your Own Peril

Refusing to act on advice from a respected colleague or mentor can backfire and damage your working relationship, a new study says. Hayley Blunden explains the career implications of seeking counsel from others.

Read more. 

[harvardbusinessschool]

How Big Companies Can Outrun Disruption

Large companies can be easy targets for disruption, but Gary Pisano says there are steps that can keep them ahead of the innovation curve. Rule 1: Don't emulate startup cultures.

[harvardbusinessschool]

Forget Cash. Here Are Better Ways to Motivate Employees

In today's tight job market, employers must focus on how to attract and keep top talent. Giving away stacks of money may not always be the best incentive, warns Ashley Whillans.