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 profpicks@ft.com 

Marketing

Meta accelerates voice-powered AI push

Tags: AI, Voice Recognition, Large Language Models (LLMs), Social Media, Digital Platforms

Summary: Meta is advancing its AI capabilities by developing Llama 4, a large language model designed to facilitate more natural, conversational interactions. This positions Meta alongside competitors like OpenAI and Google in the race to enhance AI-driven user experiences. It has implications for how digital platforms will evolve in the near future and how consumers will adopt different features. 

Classroom applications:

• Technical Analysis: Study the architecture and functionalities of advanced language models.

• Evaluating Business Trends: Understand implications of using voice powered AI to improve user engagement.

• Market Analysis: Evaluate the competitive landscape of AI developments among large digital platforms

Questions:

• How does Meta’s Llama 4 differ from other large language models in terms of capabilities?

• What are the potential applications of voice powered AI on digital platforms?

• How might advances in voice AI affect data privacy?

Anindya Ghose, Professor of business, NYU Stern School of Business

Innovation

Manchester looks to build on life sciences cluster effect

Tags: Life sciences, pharmaceuticals, innovation, second tier cities, spinouts

Summary: Manchester’s scientific innovation, driven by top institutions and spinouts, rivals that of other major European cities. Despite AstraZeneca relocating away from the region in 2013, the life sciences sector has since flourished, with business numbers growing at twice the national rate. Alderley Park, AstraZeneca’s former Manchester-area corporate campus, is now home to over 200 companies and highlights the sector’s resilience. Manchester’s affordability and graduate retention have provided a tailwind to growth, while the city’s partnership with Cambridge position it as a complementary life sciences hub in the UK. Although limited venture capital remains a challenge, the future looks bright for north-west England’s life sciences prowess.

Classroom application: This article provides a platform for faculty and students to analyse the preconditions for successful innovation and spinouts, the resilience of a major urban centre and the forces supporting life sciences investment.

Questions:

• What attributes make a region fertile for spinouts generally — and for life sciences spinouts specifically?

• Why might larger companies choose to acquire new technologies and capabilities rather than developing them in house?

• What other countries/regions have experienced an increase in innovation activity correlated with the departure of a major employer?

• What similarities (and differences) does Manchester’s rise in life sciences share with other post-industrial cities like Pittsburgh and Glasgow?

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

Technology

Sony and Nintendo play the long game over Trump tariffs

Tags: Risk management, dealing with uncertainty, technology, gaming

Summary: Console gaming has weathered economic downturns with remarkable consistency, but the latest escalation in US tariffs presents a rare challenge, raising concerns over cost pressures and supply chain disruptions. Shares in Nintendo and Sony Group are down significantly after hitting all-time highs recently. While these companies are exposed to supply chain risks by manufacturing their consoles in China, they are focusing on longer term trends, such as player engagement, developing new revenue streams and expanding into emerging markets.

Classroom application: This article provides a platform for faculty and students to discuss strategies for managing uncertainty and risk and looking at how companies can assess long-term opportunities in a challenging environment.

Questions:

• Given the current environment, what are the short-term risks to gaming companies such as Nintendo and Sony Group?

• What are the longer-term trends within the industry, and how are these companies responding to these opportunities?

• Generalising beyond gaming, what can companies do to manage risk while not being overly reactive to short-term challenges?

• How might leaders keep their managers and employees focused on strategic opportunities in a chaotic and uncertain environment?

•  How might business schools prepare students to deal more effectively with the emotional strain of balancing short-term and long-term considerations?

Moshe Cohen, Senior lecturer, Questrom School of Business, Boston University

Marketing

Italian social media star faces sticky questions over charity cake fraud

Tags: digital marketing communications, social media, influencer, fraud investigation, charity campaign, fundraising, antitrust authority

Summary: A collaboration between Chiara Ferragni, one of Italy’s biggest social media influencers, and Balocco, a confectionery company, is subject to court investigations for “aggravated fraud”. Specifically, proceeds from selling an upscale Christmas cake might have been misleadingly linked to fundraising for a children’s hospital. Both parties have been heftily fined by the Italian competition watchdog. While Ms Ferragni claimed a communication error and promised to donate €1mn to the respective hospital, she concurrently intended to appeal against the watchdog’s ruling. Following this incident, some of her business partners started to distance themselves from her. She further lost hundreds of thousands of followers and has been inundated with insults and accusations from the public.

Classroom application: This article invites faculty and students to discuss the role of influencers in promotional campaigns and especially the resulting opportunities and threats. It allows exploration of the intricacies of crisis communications and mechanisms helping to minimise the occurrence of crises in the future. It may also encourage more broadly discussion of selected facets of “cancel culture” and pathways to make up for supposed “influencer misbehaviour”.

Questions:

• What might have been the rationales for Balocco and Ferragni respectively to team up for the “Pandoro Pink Christmas” collaboration?

• Why did consumers buy the Ferragni-branded cake for over twice the price of the classic unbranded cake concurrently offered by Balocco? How did they likely feel after potential irregularities became public?

• How adequate have been the reactions of Ferragni’s different stakeholders following the fraud accusations?

• How effective has been Ferragni’s crisis communications strategy in your opinion? Could it be done in a better way? If so, how?

• How could Ferragni more broadly prevent recurrence of a similar crisis in the context of her businesses?

Anna Dubiel, Senior lecturer, King’s Business School

Corporate Strategy

Roche agrees biggest-ever obesity drug deal

Tags: Mergers & Acquisitions, Strategic Alliances

Summary: This article discusses Roche’s $5.3bn licensing agreement with Zealand Pharma to develop and commercialise petrelintide, a next-generation obesity drug based on the hormone amylin. The partnership aims to enhance Roche’s position in the weight-loss market competing with Eli Lilly and Novo Nordisk, by offering treatments with improved patient experiences compared to current options.​ Rather than acquiring Zealand or relying solely on internal development, Roche opted for a strategic alliance, leveraging Zealand’s expertise in amylin-based treatments.

Classroom Application: Roche acquired Carmot Therapeutics for $3.1bn in late 2023, securing additional obesity drug candidates. This raises an interesting question: why did Roche opt for a licensing agreement with Zealand rather than pursuing a similar acquisition?

Roche’s strategic decision to collaborate with Zealand Pharma provides a practical example to apply the Build-Borrow-or-Buy Framework in corporate strategy. This decision-making framework systematically guides managerial leaders in choosing between strategic alliances (eg licensing or joint ventures), acquisitions or internal development in strategic expansions. As part of this decision-making tree, “better off” and “ownership” tests can be applied to assess the value and necessity of ownership.​

Discussion Questions:

• Does Roche have strong internal expertise in amylin-based weight-loss drugs or are they particularly strong in pharmaceutical R&D? How does this expertise compare with Zealand’s specialised capability in this specific drug type? Are Roche’s internal resources relevant enough that it should opt for internal development (“Build”)?

• Is Zealand willing to license and trade its capabilities, making a strategic alliance viable (“Borrow”: Contractual alliance)?

• Does Roche need to take an ownership stake in Zealand to benefit from its drugmaking capabilities? Is there a higher need for close integration (“Borrow”: Alliance with Equity)?

• What challenges would Roche face in integrating Zealand Pharma if it were acquired (“Buy”)? Would full ownership of Zealand Pharma provide Roche with greater competitive benefits compared with licensing and co-development arrangements?​ Would this move enhance its competitive advantage in the obesity drug market beyond what it could achieve independently?​

Niklas Lindlbauer, Assistant professor, King’s College, London and Luka Gebel, Assistant professor, Global Business School for Health, University College, London

Accounting

Manchester United reveals plans for new 100,000-seater stadium

Tags: Accounting, Finance, Capital Budgeting, Stadium Investment, Predictive Analytics

Summary: Manchester United has revealed plans for a £2bn stadium with 100,000 seats. The goal is to replace Old Trafford as the club’s new home and be the hub of a larger project to revitalise the city. The ambitious approach to design and building shows both new ideas in architecture and care for the environment. But problems with money and sports are looming. Sir Jim Ratcliffe’s efforts to cut costs and the club’s recent performance raise concerns about balancing short-term budgeting with long-term investments.

Classroom application: This news can be used to show how decisions on large-scale capital expenditures in sports interact with accounting, finance and business analytics factors. Students can assess several funding sources and the accounting treatment for a large-scale stadium project, investigate whether success should be quantified only by net present value or also intangible elements like brand enhancement, and weigh the short-term savings of cost-cutting against the long-term effects on fan goodwill and employee morale. It also prompts discussion on how predictive analytics might forecast the effects of significant investments, such as star signings or upgraded facilities, on-field performance and, ultimately, future revenues.

Questions:

• What financing strategies (eg bond issuance, private equity, naming rights) could Manchester United use to fund a £2bn stadium? 

• How would you model and account for such a long-term capital expenditure on the club’s balance sheet? 

• How do you measure “success” for a stadium project? Is it purely about net present value (NPV) and payback period, or should intangible benefits (brand enhancement, fan experience) also be factored in? 

• Compare the potential savings from cost-cutting with the potential loss of intangible assets, such as fan goodwill or employee morale. How do we quantify that trade-off? 

• What predictive models could evaluate the effect of star signings or improved facilities on match outcomes and, thus, future revenues?

Martin Mulyadi, Professor of accounting, Shenandoah University

Got feedback on professors’ picks or willing to contribute? Get in touch at bschool@ft.com or add your selected articles and questions in the comments below.