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 

Political economy

US regulator backtracks on request to delay Amazon Prime trial

Tags: Political Economy, Competitive Analysis, Business and Government

Summary: A lawyer for the US Federal Trade Commission asked a federal judge to delay the trial challenging Amazon’s Prime service, saying members of the case team had taken the Trump administration’s offer of redundancy. Just a few hours later, the same lawyer cancelled the request.

This episode highlights the ongoing uncertainty regarding the Trump administration’s attitude towards antitrust endorsement. On one hand, budget and personnel cuts may signal a change of course from the Biden administration, which championed increased scrutiny of technology business practices. On the other hand, the FTC chair Andrew Ferguson and the newly appointed head of DOJ’s antitrust division Gail Slater have both signalled that they will adopt a tough enforcement stance.

Classroom application: This article is an ideal introduction to the political-economic trade-off faced by the Trump administration. Reining in the market power of large technology companies by aggressively challenging the legality of some of their practices would likely result in lower prices and more choices for consumers — outcomes that appear to align with the administration’s policy priorities. However, some of those same companies recently morphed into financial backers of Trump’s political operations and he has often depicted himself as a foe of regulation.

Questions:

• What is the likelihood that a reduction in antitrust enforcement will lead to a decline in voters’ support for the Trump administration?

• To what extent will the budget cuts enacted by the Trump administration jeopardise the FTC and DOJ’s ability to pursue the antitrust cases started during the Biden administration?

• Would the terms of the political-economic trade-off faced by the administration be different in the absence of the 2010 Supreme Court ruling known as Citizens United?

• Which corporate actors are likely to benefit from a continued tough enforcement stance?

• How will productivity growth in key technology sectors depend upon the antitrust enforcement stance of the administration?

Gian Luca Clementi, Professor, NYU Stern School of Business

Finance

Dollar slump magnifies stock market pain for foreign investors

Tags: Foreign Exchange, Foreign Trade, Foreign Investments

Summary: Wall Street’s current slump coupled with a weakening US dollar has limited the ability of foreign investors to offset gains in one asset against losses in another. This situation has undermined strategies by investors based on their bet that Wall Street would continue its positive performance from the last two years.

Classroom application: This article provides an opportunity for faculty and students to discuss the relationships among currency movement, foreign trade and foreign investments. It also opens up discussions about the importance of currency reserves by governments.

Questions:

• What does a “strong” dollar mean, in simple terms?

• What is the main reason for a strong dollar, broadly, and why is the dollar weakening?

• Why might this be good for US importers? Why might it be less good for US exporters?

• How does this situation impact investments in foreign assets and FDI broadly?

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

Economics

Citi cuts top bankers’ bonuses tied to turnaround drive

Tags: banks, bonuses, executive compensation, incentives, motivation

Summary: The American investment bank Citi cut bonuses for its 250 top employees, which tied their pay to the group’s financial performance and improvements in the risk and control system. The scheme was introduced three years ago and will not continue. Key measures of profitability continue to trail competitors and there are still several operational issues. Both the CEO and CFO received large pay increases for 2024.

Classroom application: This article provides an opportunity for faculty and students to analyse the pros, cons, and pitfalls of bonus schemes.

Questions:

• In general, what motivates employees to excel at their jobs?

• What fundamental logic is at the core of a bonus scheme and what is the working assumption behind it? Why could shareholders be in favour of establishing a bonus scheme for top employees?

• Which objectives did Citi state regarding its bonus scheme? Were these objectives achieved? To what extent did the bonus scheme help or hamper achieving these objectives?

• How can bonus schemes worsen outcomes for shareholders and stakeholders?

• What requirements must be met within a company or business environment to successfully use bonus schemes?

Stefan Legge, lecturer, University of St Gallen

Leadership

Nuclear plant boss Julia Pyke: ‘It’s a tough gig, developing big infrastructure projects in the UK’ 

Tags: Adaptive leadership, Inclusive leadership, Sustainability, Innovation, Resilience 

Summary: As co-managing director of Sizewell C, Julia Pyke exemplifies adaptive and inclusive leadership in the nuclear industry by championing transparency, collaboration and innovation. Facing scepticism and opposition, she adapts her approach through strategic communication, stakeholder engagement and community-building initiatives — such as forming a choir — to shift public perceptions. Her leadership balances flexibility with long-term vision, ensuring diverse stakeholders actively contribute to decision-making. Pyke also challenges gender biases, advocating for equal representation in high-stakes industries. This article explores how adaptive and inclusive leadership helps leaders navigate resistance, foster trust and manage bureaucratic complexities in large-scale transformative infrastructure projects.

Classroom application: This article provides students and faculty with insights into how adaptive and inclusive leadership strategies build resilience, enhance stakeholder trust, and drive innovation in industries facing political, social, and economic challenges.

Key questions:

• What aspects of Julia Pyke’s leadership at Sizewell C demonstrate adaptive and inclusive practices, and how does she engage stakeholders from diverse backgrounds?

• How does collaboration influence Pyke’s leadership, and how does she balance the interests of government, industry, and local communities?

• How do adaptive and inclusive leadership approaches help leaders navigate resistance to change, particularly in politically and environmentally sensitive industries?

• What challenges does Pyke encounter as a leader in the nuclear industry, and how does inclusive leadership help address gender biases?

• What key leadership lessons can be learned from Pyke’s approach to managing large-scale projects, fostering resilience, and driving innovation?

Aikaterini Grimani, Assistant professor, Warwick Business School

Accounting 

Audi reviews plans to stop new petrol model launches in 2026

Tags: Managerial Accounting, Cost Analysis, Strategic Decision Making, Pricing Strategy, Capital Budgeting

Summary: Audi is reassessing its plan to cease launching new petrol models from next year amid a delayed transition to electric vehicles. This has forced the company to consider significant cost cuts — including a reduction of 7,500 jobs in Germany — and to re-evaluate its product portfolio and pricing strategy. Operating profits are down 38 per cent, and car deliveries are down 12 per cent. Audi now has to deal with short-term financial problems while spending on its future electric model line-up and staying competitive in an increasingly challenging auto market.

Classroom application: This article provides a platform to analyse how managerial and cost accounting techniques, such as CVP (cost-volume-profit) analysis, budgetary control, and capital budgeting, can guide strategic decisions during a major product transition, assess the implications of workforce reductions and cost pass-through strategies, and evaluate the trade-offs involved in shifting from combustion engine models to electric vehicles.

Questions:

• How can Audi use CVP analysis to determine when its products (traditional vs electric cars) will break even?

• How much might the plan to stop making new gasoline models starting next year cost the company, and how might this decision affect Audi’s operating margins, given that the company is said to have lost 38% in operating profits?

• Assuming Audi’s current fixed costs are €10bn, its variable costs are €20,000 per vehicle, and the average selling price is €40,000 per vehicle. With the sales volume dropping by 12 per cent, calculate the break-even units before and after a suggested cost-cutting measure that lowers fixed costs by 10 per cent. How does this analysis help Audi make strategic decisions?

Yunita Anwar, Assistant professor, Shenandoah University

Financial Ethics and Regulation

FCA to ease rules restricting mortgage lending

Tags: Financial Ethics, Regulation

Summary: In response to UK government calls for pro-growth measures, the FCA announced plans to consult on relaxing mortgage affordability stress tests. It chief Rathi says this supports home ownership but acknowledges it benefits mortgage lenders. While easing restrictions aims to boost economic growth, it raises concerns about increased risks of borrower defaults and repossessions, weakening post-2008 crisis protections.

Classroom application: The article illustrates the tensions between a government seeking economic growth through deregulation, consumers needing regulatory protections and an industry seeking profit while avoiding harm to consumers. As such, this is a good basis for discussions around theories of responsive regulation; the consequences of deregulation; the ethics of financial regulation; and, perhaps most importantly, conduct risk.

Questions:

• Use Ayres & Braithwaite’s Responsive Regulation pyramid to explain the possible tensions arising from this announcement.

• Explain the concept of deregulation and discuss examples where it has led to unethical conduct by the banking and finance industry

• Thinking of Boatright’s concept of Welfare, how could harm to consumers be justified?

• As a mortgage provider, how would you manage the relaxation of mortgage selling rules with the recent implementation of Consumer Duty regulations? (Consider this from both the compliance and sales sides of the organisation)

• Considering reports that the FCA has levied £444mn in fines in the last three years, what are some potential arguments for and against the assertion that “conduct and firm culture is far stronger now”?

Ian Roberts, Lecturer, Bangor Business School

Strategy

Snow White’ remake drags Walt Disney back into the culture wars

Tags: External consistency, Strategic choices

Summary: This article examines the controversies surrounding Disney’s live-action remake of Snow White (2025), focusing on casting decisions and narrative updates aimed at modernising the classic tale. The film has sparked heated debates long before its release, over cultural representation and the balance between honouring traditional stories and embracing contemporary values.​

Classroom application: Strategic inconsistency — the misalignment between a company’s strategic choices (whether that is a chosen business model, resources, pricing, etc) and the external environment — is one of the main explanatory variables for performance failure.​

Disney’s approach to reimagining Snow White offers an interesting case study on external consistency of strategy. This case is particularly relevant as Disney operates in a polarised media environment in which cultural signalling and brand legacy are seemingly requested by consumers, yet under constant public scrutiny. At the same time, rising consumer fatigue with perceived politicisation and an ‘anti-woke’ movement in entertainment presents an external threat to strategies aimed at progressive brand reinvention.

Instructors can use this case to illustrate the criticality of external consistency in strategic planning. Students could analyse Disney’s decision-making process, assessing how well the company’s choices align with external cultural shifts and audience expectations.

Questions:

• What is Disney’s current business model? That is, who is the target customer, what is the core value proposition, and what choices does the company need to make to create, deliver and capture value?

• What changes can be perceived in the external environment, such as shifts in consumer expectations, cultural norms, and political discourse, that are relevant to Disney’s current business model?

• How does Disney’s strategy in updating Snow White align with current societal trends and audience expectations?​

• What potential risks does Disney face if its strategic choices in the remake are perceived as inconsistent with audience values or market trends?​

• How can Disney modernise classic content to reflect contemporary values without compromising its core brand identity?​

Luka Gebel, Assistant professor, Global Business School for Health, University College, London

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.