Business school professors’ picks

Welcome to professors’ picks, offering a weekly curated selection of FT articles by and for business school faculty to connect classrooms to current events and to develop students’ critical thinking.

Read all submissions at www.ft.com/bschoolpicks. Save this link in myFT to receive emails alerting you to each new edition. Search the tags for relevant topics to illustrate teaching points.

Comments or contributions? Get in touch at [email protected]

Innovation, leadership

Forget mindfulness. Embrace restless thinking

Just make it up: the art of improv theatre

Tags: Creativity, innovation, leadership, decision making

Summary: In business we deduce, narrow and decide aided by logic, facts and data. Yet in business — as is often the case in theatre and jazz inspirations happen when we go off-script and put our implicit blueprints in the drawer — at least for a moment. It is when we set our minds free to induce, expand, and explore that we overcome obstacles, break through barriers and arrive at insights that can take our work in amazing new directions. 

Classroom application: These two articles invite faculty and students to explore an alternative side of great business thinking in which the unstructured, messy and ill-defined provide a platform for unexpected inspiration and insight. 

Questions:

• How might analytical thinking and evidence-based decision-making be a “script” for the success of business professionals in today’s workplace?

• In what business situations might it make sense to go “off-script”? And why?

• Great jazz artists and theatre actors have a foundation of knowledge and practice, but with improvisation depart from these foundations to achieve truly inspired performance. What mindsets and behaviours do you think allow them to do this?

• As a manager, how might you organise teams to balance on- and off-script thinking to drive innovation and creativity in approaching difficult challenges?

Lee Newman, Dean, IE Business School

Brands, entertainment and media

Amazon MGM to take over creative direction of James Bond franchise

Tags: Deal making, negotiations, brand management, intellectual property, M&A, distribution 

Summary: Amazon MGM Studios has reached a deal with the Broccoli family, longtime custodians of the James Bond franchise, to take over the creative rights of the iconic spy series. The new agreement establishes a joint venture in which Amazon MGM Studios will now lead the franchise’s creative direction, marking a significant shift in the control of 007’s future.

Since Amazon acquired MGM for $8.45bn in 2022, there has been uncertainty about the franchise’s direction, particularly following Daniel Craig’s departure after No Time to Die (2021). While speculation has surrounded casting and creative disagreements, this deal signals Amazon’s potential interest in expanding the Bond universe, possibly through spin-offs and new media formats.

Amazon’s broader strategy involves using its film and TV properties to fuel its Prime Video business, which is increasingly integrated with its growing advertising and ecommerce revenue streams.

Classroom applications: This article provides an opportunity for students to explore the dynamic between content and distribution in the entertainment business and consider the importance of strategic planning, Intellectual Property management, new forms of distribution, media consolidation, changing consumer behaviour and the reconciliation of short vs long term brand management.

Questions:

• How can Amazon balance innovation with tradition when managing an iconic franchise like James Bond?

• Would Bond spin-offs strengthen the franchise or dilute its prestige?

• What lessons can be learned from Amazon’s handling of other major IP (eg Lord of the Rings and Jack Ryan)?

• Is there a risk that over-commercialisation (eg spin-offs, streaming-first releases) could hurt Bond’s exclusivity and premium appeal in the long-run?

• How can family-run businesses transition successfully into corporate ownership without losing their unique identity?

• Will Amazon see a direct financial return on its investment in Bond content, or is this more about customer acquisition for Prime Video?

• Given the shift towards ad-supported streaming, how should Amazon structure Bond-related content to maximise revenue?

Paul Hardart, Clinical professor, NYU Stern School of Business

Global business environment, international relations

Donald Trump announces US ‘gold card’ visa scheme

Tags: Immigration, gold card, US citizenship

Summary: Donald Trump has said the US will sell “gold cards” costing $5mn each in exchange for permanent residency to attract wealthy foreigners to the US. Paying for citizenship or residency is not an uncommon practice, with arguments that it can provide economic growth through FDI. However, there are concerns linked to the potential for corruption and tax evasion.

Classroom application: This article provides an opportunity for faculty and students to discuss value and risks of immigration and pivotal roles that immigrants can play, in addition to exploration of immigration inequities.

Questions:

• Many countries have Citizenship by Investment Programmes. Why do they make these offers?

• What are the pros and cons of such offers to the host country economy? What about to its incumbent citizens?

• What has been the outcome of such offers in other countries?

• For the US, in particular, is such a scheme moral and equitable? Does it further income and social disparities?

• What are the implications for business: competition, labour, consumption etc?

Joseph LiPuma, Clinical associate professor, Boston University Questrom School of Business

Luxury brand management

Kering sales plunge as Gucci turnaround stalls (11/02/25)

Tags: Fashion, strategy, luxury brand management, leadership

Summary: Kering recently parted ways with Gucci’s creative director Sabato De Sarno after only two years due to declining sales and profit warnings. As an industry exposed to economic downturns, the Kering portfolio of brands has underperformed peers such as Hermes, Richemont and LVMH for the last few years. Large investments in brands such as Valentino and Creed have imposed a debt-heavy structure causing further strain on its finances. With no prominent creative director at the helm, the brand’s recovery could exacerbate an already tricky situation for this more than a century old house.

Classroom application: This article provides an opportunity for faculty and students to analyse the global luxury industry and competitive strategies in keeping a star brand desirable during tough market conditions. Learnings are applicable to both portfolio and monobrand businesses.

Questions:

• What are the main supply and demand-side factors that have contributed to Gucci’s decline in sales and profit, and is this applicable to its competitors?

• How does the departure of Sabato De Sarno affect Gucci’s brand identity and market positioning in the luxury industry?

• How does Kering’s approach to brand management compare with its competitors like LVMH and Hermès, and what lessons can be learned?

• What are the strategic trade-offs between maintaining brand desirability and implementing financial cost-cutting measures during a period of uncertainty in the economic environment?

• Should Kering hire another star designer or not, and why?

Ranjit Thind, Lecturer, London College of Fashion

Mergers and acquisitions, Strategy

Elliott builds £3.8bn stake in BP and seeks big asset sales

Tags: Governance, activists investors, alternative energy sources, sustainability, stakeholders

Summary: Elliott Investment Management has taken a near 5 per cent stake in BP. Activists apply pressure to public company boards by attempting to gain the support of other shareholders for their demands. Methods include analysis which is shared with other shareholders and the media, and criticism of the board. The intention is to put pressure on the board to make change which they believe will benefit shareholders. In the case of BP it is likely they will want a change in Chairman and CEO, activist board representation, introduce cost cutting, reduced investment in sustainable energy sources and the sale of certain parts of the business. Elliott’s emergence is a consequence of prolonged underperformance by BP in comparison with its oil peers.

Classroom application: This article allows classes to discuss the effectiveness of governance in public companies, broader stakeholder objectives and why activist investors seem to be so successful.

Key Questions:

• To what extent does the arrival of activists suggest a failure of governance?

• Activists usually need the support of other shareholders to create change. In this case BlackRock (9 per cent) and Vanguard (5 per cent) are large enough to have voiced their own views to the board. Why does it need an activist to stimulate action?

• Alternative energy investment in BP looks likely to be a victim of activist demands. Has sentiment more generally changed towards sustainable energy sources in recent months?

• To what extent do you consider that activists’ objectives are short-term only?

• In this case some investors and the CEO to some extent seem to be on board with the activists wishes. Why does it need activists to create strategic change?

• To what extent is the existence of broader stakeholder objectives dependent on first satisfying investors demands for returns. If investor returns are viewed as insufficient then do you think other broader stakeholder objectives are likely to be sacrificed?

John Colley, Professor of practice, Warwick Business School

Strategy

BP to abandon pledge to cut oil and gas output as chief fights for group’s survival

Tags: Strategy, corporate governance, sustainability, mergers and acquisitions, agency conflict

Summary: BP plans to abandon its pledge to cut oil and gas output and announce a major divestment at its investor day, as CEO Murray Auchincloss seeks to win over activist investor Elliott Management. Facing pressure, Auchincloss has promised a “fundamental reset” to improve performance. Elliott has criticised BP’s green energy targets and wants to divest assets, which may take the form of increasing oil and gas production and spinning off low-carbon businesses. The move could boost BP’s stock but risk alienating climate-conscious investors. If changes disappoint, Elliott may push for board-level shake-ups, including replacing BP’s chair and/or CEO.

Classroom Application: This article provides a platform for faculty and students to analyse multiple facets of corporate governance including board and shareholder relations, agency conflict and activist investors — and how they affect a company’s strategy.

Questions:

• What is meant by an “activist investor” and why/how does one typically engage with a company?

• What is agency conflict in a publicly traded company, and in what ways is it on display in this case?

• What are several root causes of BP’s underperformance relative to its peer group?

• What has been the role of Russia’s invasion in Ukraine relative to BP’s strategy over the past five years?

• What entities might be interested in acquiring part or all of BP, and why?

Tom Davis, Clinical assistant professor, Joseph M Katz Graduate School of Business, University of Pittsburgh

Introductory finance, Accounting

Buffett seeks to reassure shareholders over record cash pile

Tags: Warren Buffett, Berkshire Hathaway, cash pile, stock sales, portfolio, treasury bills, US companies, operating earnings, acquisitions

Summary: In his annual letter, Warren Buffett informed Berkshire Hathaway shareholders that despite the company’s cash reserve reaching a record $334.2bn, his focus is still on owning high-quality businesses rather than hoarding cash. Key considerations include sales of cash and stocks, investment philosophy, operating performance, strategic moves, market outlook and caution.

Classroom application: This article provides an opportunity for faculty and students to discuss the importance of completing effective due diligence before making a large-scale equity investment.

Questions:

• Investment Philosophy: How does Buffett’s statement that he would “never prefer ownership of cash-equivalent assets over the ownership of good businesses” reflect his overall investment philosophy?

• Cash Management vs Deployment: What are the potential risks and benefits of Berkshire Hathaway holding a record cash pile while forgoing large acquisitions?

• Market Valuation: How might record market valuations and rising interest rates have influenced Buffett’s decision to sell stocks and increase cash holdings?

• Treasury Bills Confidence: How does the investment in Treasury bills serve Berkshire Hathaway in the current economic climate, and how does it compare to earning dividends from equities?

• International Investments: What strategic reasons might explain Buffett’s plan to increase stakes in the five Japanese trading companies, and how does this fit into Berkshire’s long-term international outlook?

Case discussion positioning: Challenge students to compare and contrast the merits of keeping so much money in cash. In favour of keeping large cash balances: read this letter to the editor in December 2024 indicating cash is still king. Against keeping a large cash stockpile: in January 2025, a multimillionaire from the UK failed to meet the return on cash. Read Jonathan Ruffer fails to beat cash after bet on US market crash.

The second part of the discussion can focus on when it is a good time to cash out. Just because a fund invests doesn’t mean it needs to stay in it in perpetuity. For example, investors offloaded private equity stakes in late 2024 (Investors offloaded record volume of private equity stakes in 2024) and fewer deals mean smaller payouts (Private equity payouts fell 50% short in 2024). Are we on the doorstep of the next financial crisis? FT journalist John Plender questions this in Where the next financial crisis could emerge.

However, fundraising for new funds and keeping cash deployed are always challenging: What next for the private equity minnow?

Gregory Stoller, Master Lecturer, Boston University Questrom School of Business

Got feedback on professors’ picks or willing to contribute? Get in touch at [email protected] or add your selected articles and questions in the comments below.