Experience Stern | News & Events

The NYU Stern Center for Global Economy and Business will host the Economic Outlook Forum on February 3, 2015.

Excerpt from Clinical Leader -- "But will the ruling promote competition and consumer welfare, or will it have the exact opposite effect? Attorneys from the law firm Ballard Spahr, along with Melissa Schilling, a professor from New York University’s Stern School of Business, have filed an amicus brief on behalf of 12 leading professors of management, organization, and policy supporting an appeal of the district court ruling. The brief notes the high cost of research and development will result in the injunction having the opposite effect. According to the brief, 'To the contrary, it is inefficient and anti-competitive to force a company to continue to support a product that it has replaced and for which the government’s witness agrees there is no 'market need.'"

Excerpt from Strategy + Business -- "Sustaining a business in uncertain times requires executives to prioritize stability, resilience, and relationship management. Underpinning all three is a shift in strategic direction—from a focus on growth above all else to a focus on having enough. You make your company prosper enough by maintaining and improving the quality and caliber of what you do. You decentralize your business enough so that the parts can be strong if the whole faces risk. And you maintain and improve the relationships that your business depends on enough by integrating them with your whole company. Developing these executive practices won’t shield you from crisis, but it will help ensure that when the dust settles, your company is not just standing, but moving forward."

Excerpt from The Wall Street Journal -- "'This is a judgment that you’d think that people would be motivated to get right,' said Justin Kruger, a social psychologist and professor in the marketing department at NYU’s Stern School of Business. 'There are all sorts of disincentives and punishments for being late, and the paradox is we’re late even when those punishments and consequences exist.'"

Excerpt from The Huffington Post -- "Sundararajan argued that this business model is risky for Instacart and other firms like it because it hands over so much control to workers who don't feel particularly invested in the company's overall health. Workers have detailed similar experiences at other rapidly growing apps, Uber and HomeJoy among them. Sundararajan suggested that a company like Instacart consider, at minimum, pairing newbie shoppers with expert mentors when they are starting out. 'Eventually these companies’ brand comes from consistent high quality, and that rests almost entirely in the hands of freelance workers,' Sundararajan said. 'It’s simply smart capitalism to have a healthy workforce of people motivated to work for you.'"

Excerpt from Bloomberg -- "'I wouldn't even call this a failure. I'd call it an assisted suicide,' says Scott Galloway, a professor of marketing at New York University's Stern Business School. 'It's amazing it's taken this long for this company to go out of business.'"

Excerpt from Forbes -- "The temptation in developing Super Bowl ads is to go part way: to create the ads that seem clever in some way, but not strategically sound or effective in achieving important brand objectives. Having been on both the client and agency side, I know first-hand that it can be a tricky balancing act managing the creative process between brands and agency creative teams. The challenge and management skill is to not ... stifle creativity, but also not to loose the incredibly valuable opportunity to increase positive brand understanding. In the end, advertising, no matter how subtle and two-way the communication, is about making more people want to buy, benefit from, or identify with brands."

Excerpt from BusinessBecause -- "'Many veterans joined the military to feel a sense of purpose, and upon transitioning to civilian life they want to continue to feel this sense of purpose in their future careers,' says Isser Gallogly, assistant dean of MBA admissions at NYU Stern."

Excerpt from BBC -- "When we came out of World War II in the 1940s and created the United Nations, the assumption was that governments were all-powerful; they could handle anything. And we live in a very different world today. ... If you look at the global economy, half of the world's largest economies today are actually not states. Half of the biggest economies are private companies. So, Walmart is the 31st biggest economy in the world, roughly the size of Belgium or Nigeria or the Philippines. And I think we haven't really adjusted to those changes."
 

Excerpt from Chicago Tribune -- "Buying stuff to make ourselves feel better after a failure is not only expensive but could backfire and lead us to think more about our shortcomings, according to the study, 'Perils of Compensatory Consumption,' by Rucker, the Northwestern professor, Monika Lisjak of Erasmus University, Andrea Bonezzi of New York University and Soo Kim of Cornell University. Just as bad, retail therapy can strip consumers of mental resources and impair their self-control, the study says. And less self-control has been shown to potentially lead to excessive spending."

Excerpt from Marketplace -- "When a company messes up, three things need to happen, Galloway says. 'The first is to acknowledge the issue, to basically admit that you made a mistake,' he says. 'The second is to have the top guy or gal make that admission – so to get the CEO front and center. And the third is to overcorrect. To offer consumers a better deal than they originally had. Those are the only three things you need to remember, and they are consistently ignored.'"

Excerpt from OZY -- "What no one is saying is this: We need more jobs — and capitalism creates them. If we continue on this trend of bashing capital and open markets, our labor markets don’t stand a chance."

Excerpt from Project Syndicate -- "Simply put, we live in a world in which there is too much supply and too little demand. The result is persistent disinflationary, if not deflationary, pressure, despite aggressive monetary easing. The inability of unconventional monetary policies to prevent outright deflation partly reflects the fact that such policies seek to weaken the currency, thereby improving net exports and increasing inflation. This, however, is a zero-sum game that merely exports deflation and recession to other economies."

Excerpt from Financial Times -- "But there is also a real sense that China’s generous welcome to these institutions is part of its own need to modernise its higher education system, says NYU’s Prof Zemel. 'I think China is now struggling with the next phase of economic development. They have done a good job but they know that low-cost is running its course,' he says. The next phase is to invest in innovation and this means changing the way students are educated more widely. 'The objective of NYU in Shanghai is not to educate the 2000 [enrolled] students,' says Prof Zemel, 'but to have a long-term impact on other institutions.'"

Excerpt from New York Post -- "'The stagnation in wages is such a broader challenge for society than anything a minimum change in the minimum wage can ever address,' [Foudy] said. 'The only gift New Yorkers have gotten in the last couple of months is lower gas prices.'"

Excerpt from Bloomberg View -- "At most companies it is the chief executive officer on the line fielding questions, accompanied by the chief financial officer and sometimes other top managers. This is one of the only managerial tasks, New York University accounting professor Baruch Lev observed a few years ago, that almost never gets delegated."

Excerpt from TopMBA -- "Gallogly says the program will likely be of interest to applicants, 'who really are very driven, very motivated, and very structured and who have the time right now.' He notes that students in the accelerated program who have a life change – a new job or the birth of a child, for example – can opt to slow down and complete the program in up to six years."

Excerpt from BBC News -- "'When you look at fast casual as a category, it tends to offer the promise of fresher food that's prepared more on-site, that is sourced more sustainably,' says Hans Taparia, a professor at New York University's Stern School of Business. This model is particularly appealing to millennials, he adds, who tend to care less about price - the average 'fast-casual' meal is $7.50, compared to $5 for a meal at a chain like Wendy's - than about ethics. 'Every marketer is trying to get access to this millennial consumer - it's an 80-million person strong consumer base, the largest demographic alive today,' says Prof Taparia."

Excerpt from Paste Magazine -- "Led by Vishal Singh of New York University’s Stern School of Business, the project examined consumer tastes across 416 counties in the United States, measuring 26 product categories ranging from frozen pizza preference to toothpaste. Over six years, Singh and his associates analyzed data and came find that a consumer’s political subconscious affects brands and items."

Excerpt from TIME -- "'One hundred years ago there wasn’t a clear line between someone who ran a hotel and someone who let people stay in their homes. It was much more fluid,' says Arun Sundararajan, a professor at New York University Stern School of Business who studies the sharing economy. 'Then we drew clear lines between people who did something for a living and people who did it casually not for money. Airbnb and Lyft are blurring these lines.'"

Excerpt from The New York Times -- "'A big part of this is just cleaning the bank balance sheets after the sovereign debt crisis,' said Viral V. Acharya, professor of finance at Stern School of Business at New York University. But Mr. Acharya said central bank bond buying was an inefficient way to fix eurozone banks. At the rate that the European Central Bank plans to buy bonds, he said, it will take months for banks to unload their holdings."

Excerpt from CNBC -- "Bottom line: Cuba may well become a rising star in the region and an attractive economic partner for the U.S. if things are managed well. In financial terms, Cuba will be a 'buy' when the time comes."

Excerpt from Marketplace -- "Companies that generate most of their sales from one product can be risky, says J.P. Eggers, a professor at NYU’s Stern School of Business. But he thinks Apple’s narrow focus is a source of strength, because the company can work on innovating and improving a narrow range of products."

Excerpt from The Economist -- "Drs Chan and Ghose looked at HIV rates in 33 states between 1999 and 2008, mostly in America's central regions (Craigslist's spread to populous cities along coastal regions was much faster, muddying the data there). The arrival of Craigslist, they found, was correlated with an average increase of 15.9% a year in the number of HIV infections compared with what would have been expected had it not been launched; the pair estimate that the listing website was associated with between 6,130 and 6,455 extra infections a year throughout the country."

Excerpt from Fortune -- "If its creditor nations agreed to extend the maturities to 75 years, Greece could easily handle its current debt load. It might be enough for Syriza to withdraw its pledge to roll back previous reforms and to honor its debts in exchange for those longer maturities. 'I think they will make a u-turn,' says Economides. 'The money they need is so gigantic. They will not have a choice.'"