December 2010

By Han-Li Chang, Juan Carlos Hussong, Karan Singh, Milena Flament, Rohan Ghotage and Torry Schoenfeld

During its early years, Ford earned a good reputation thanks to the T-model, the first affordable, mass-produced car in automotive history. Over time, Ford’s reputation became notorious for its emphasis on affordability at the expense of quality and innovation. The 1970 Ford Pinto is a good example of bad design and low quality. Through a series of low-quality cars, Ford’s reputation deteriorated.

As an editor of Carnews.com, a major car magazine in Taiwan, Han-Li Chang tested all of the new cars sold in the automotive market in order to present fair comments about them to aid in consumer purchasing. At that time, it was difficult to write anything good about Ford. Han-Li discovered rusty car frames and flawed transmissions on brand new Fords. While Japanese competitors were flourishing with their innovative high quality cars, Ford was still not prioritizing quality and technology.

The automobile industry is, and has been, highly competitive. The big three American automakers, General Motors, Ford and Chrysler, have for many years adopted similar strategies. They focused on delivering the American dream car: Roomy, comfortable, big engines, and lots of horsepower.  In recent years the big three shifted many of their resources from small and mid-size cars to satisfy the SUV craze of the domestic market. Very few resources were allocated to innovation or R&D. Fuel efficiency and hybrid technology were largely ignored.

By Shamus Angkrom, Raghu Gopal, Joseph Hake, Jacquelyn Hunter and Matt Williamson

All people with any interest in flight, from the casual passenger to the industry analyst, will no doubt have been exposed to the recent buzz regarding the Airbus A380 and the Boeing 787 Dreamliner. In the United States all eyes have been set firmly on the production of the 787, as both regional and long-haul service providers plan to utilize the 787 in a manner that will create a great deal of competition for the A380. You would be hard-pressed to reference commercial air travel or U.S.-based defense without the inclusion of Boeing or its various subsidiaries.

Several years ago, one could scarcely mention Boeing without alluding to its former claim-to-fame, the 747 “jumbo jet.” Those of us fortunate enough to have traveled overseas for business or pleasure have undoubtedly experienced the enjoyment of being a passenger on one of these airborne behemoths. Nowadays, when discussing the premiere platform for wide-body, long-haul commercial air travel, most would reference the Airbus A380 instead of the “dated” 747.

By Manish Chhokar, Andres Camacho, Maria Teresa Morazan, Archit Kansal, Aaron Sanchez and Michael A. Sherry

After a long week at his hectic new consulting job in New York, Robert Baron was anticipating a relaxing evening at the new restaurant in town. He was seated quickly upon his arrival and given an amazing table near the front of the establishment. As he settled in to his booth, and opened the massive menu that lay on his table, he quickly realized that something was off, hampering his ability to truly enjoy the experience that he was about to have.

At first, he was unsure of what was bothering him, but something about being a patron of this particular restaurant was causing him to feel overwhelmed and anxious. As he scanned the 60+ different entree and combination choices staring him in the face, he quickly realized that he was suffering from overwhelm, due to more choices than his brain could effectively process.

This phenomenon has been further examined by psychological studies that have directly correlated the number of choices offered and the inability of human beings to be decisive and confident in their decisions. There are only so many options that the human brain can effectively process and decide upon. Too many options can cause the human brain to enter what experts refer to as “paralysis of analysis,” a syndrome that is linked to having an overabundance of choices.

By Susannah Ware, Kshitij Shetty, Laura Haslee, Brian Bizjack and Juliana Figueiredo

As Coach Inc. launches its men’s-only shop in New York City, it is taking a big risk by deviating from its established image in affordable women’s luxury goods. However, its efforts seem to be paying off at least in the eyes of one reviewer responding to the new store, “I really like this shop because ... it's perfect for gift-giving purchases. … Who’s gonna argue with a nifty Coach card holder or bucket hat?”[1]

With the launch of a new men’s line, Coach is acknowledging changing market trends within the fashion industry. In the last five years, men’s designer clothing has sold at twice the rate of women’s clothing.[2] Also, sales of men’s designer products are expected to increase by about 35% in developing countries like India and China, which shows the potential for future international growth.[3] There is also research strengthening Coach’s decision to venture into the men’s segment that suggests men plan to spend 3% more on consumer goods than they did in the previous year.[4] In contrast, women intend to spend 1% less than they did previous year.  This year’s Black Friday spending research confirmed an average increase in male spending of $100 compared to female spending.[5]