Welcome to Professor Pick. Business school teachers will provide weekly curated selection of FT articles to link classrooms to current events and develop student critical thinking.
Read all submissions at www.ft.com/bschoolpicks. Save this link in Maft and receive an email alerting you with each new edition. Search for tags for related topics to describe educational points.
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marketing
Meta accelerates voice-driven AI push
Tags: AI, voice recognition, large-scale language models (LLMS), social media, digital platforms
Summary: Meta is advancing AI capabilities by developing the Llama 4, a large-scale language model designed to promote more natural and conversational interactions. It positions the meta alongside competitors such as Openai and Google to enhance the AI-driven user experience. It will affect how digital platforms will evolve in the near future and how consumers will adopt a variety of features.
Classroom Application:
Technical Analysis: Research the architecture and functionality of advanced language models.
Business Trend Rating: Understand the meaning of using voice-driven AI to improve user engagement.
Market Analysis: Assessing the competitive landscape of AI development across large digital platforms
question:
How does Meta’s Llama 4 differ from other large language models in terms of functionality?
What are the potential applications of voice-driven AI on digital platforms?
How will advances in Voice AI affect data privacy?
Anindya Ghose, Professor of Business, NYU Stern School of Business
innovation
Manchester is trying to build on life science cluster effects
Tags: Life Sciences, Pharmaceuticals, Innovation, Tier 2 cities, Spinout
Summary: Manchester’s scientific innovation is driven by top institutions and spin-outs, comparable to other major European cities. AstraZeneca moved away from the region in 2013, but since then the life sciences sector has flourished, with business numbers doubled at national rates. Alderly Park, AstraZeneca’s former Manchester-regional corporate campus, is currently home to more than 200 companies, highlighting the resilience of the sector. Manchester’s affordability and alumni retention rates have been driven by growth, but the city’s partnership with Cambridge positions it as a complementary life science hub for the UK. Limited venture capital remains a challenge, but the future looks bright for the life science prowess of Northwest England.
Classroom Application: This article provides a platform for teachers and students to analyze the prerequisites for successful innovation and spin-outs, the resilience of major urban centers, and the forces that support life science investments.
question:
What attributes make the region fertile, generally due to spinouts and life science spinouts?
Why can large companies choose to acquire new technology rather than developing it at home?
What other countries/regions have experienced an increase in innovation activity correlated with key employer withdrawals?
What similarities (and differences) do Manchester’s rise in life science share with other post-industrial cities, such as Pittsburgh and Glasgow?
Tom Davis, Clinical Assistant Professor, Joseph M. Katz Graduate School of Business, University of Pittsburgh
technology
Sony and Nintendo play a long game over Trump tariffs
Tags: Risk Management, Uncertainty, Technology, and Dealing with Games
Summary: While console games have overcome the recession with remarkable consistency, the latest escalation of US tariffs presents rare challenges and raises concerns about cost pressures and supply chain disruptions. Stocks in Nintendo and Sony Group have fallen sharply after reaching their recent record highs. These companies are exposed to supply chain risks by manufacturing consoles in China, but they focus on long-term trends, including 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 for companies to consider ways to assess long-term opportunities in challenging environments.
question:
Given the current environment, what are the short-term risks for gaming companies such as Nintendo and Sony Group?
What are the long-term trends within the industry and how do these companies respond to these opportunities?
Generalizing beyond the game, what can companies do to manage risk while not overreacting short-term challenges?
How can leaders focus their managers and employees on strategic opportunities in chaotic and uncertain environments?
How can business schools prepare students to more effectively deal with the emotional burden of balancing short- and long-term considerations?
Moshe Cohen, Senior Lecturer at Boston University Business School
marketing
Italian social media star faces sticky questions about charity cake scam
Tags: digital marketing communications, social media, influencers, fraud investigations, charity campaigns, fundraising, anti-trust authority
Summary: The collaboration between Chiara Ferragni, one of Italy’s biggest social media influencers, and confectionery company Barocco, is subject to a court investigation into “advancing fraud.” Specifically, revenue from selling premium Christmas cakes can be misleadingly linked to children’s hospital fundraisers. Both parties have been severely fined by Italian competitive watchdogs. Ms. Ferrani alleged communication errors and pledged to donate 1 million euros to each hospital, but she intended to appeal to the Watchdog ruling. After this incident, some of her business partners began to distance themselves from her. She has lost hundreds of thousands of more followers and accepts insults and accusations from the public.
Classroom Application: This article invites faculty and students to discuss the role of influencers in promotional campaigns, particularly the resulting opportunities and threats. This allows for the exploration of the complexity of crisis communication and mechanisms that can help minimize future crises. It may also encourage a broader discussion of the chosen aspect of “cancelling culture” to compensate for “influencer misconduct.”
question:
What was the rationale for Barocco and Ferrani to team up for the “Pandro Pink Christmas” collaboration, respectively?
Why did consumers buy Ferrani branded cakes for more than twice the price of the classic non-branded cakes offered by Barocco? How did they feel after the potential irregularities were exposed?
How appropriate was it following Ferragni’s different stakeholder fraud accusations?
In your opinion, how effective is Ferrani’s crisis communication strategy? Can it be done in a better way? If so, what do you think?
Could Ferrani prevent a similar crisis from recurring more widely in her business context?
Anna Dubiel, Senior Lecturer at King’s Business School
Corporate Strategy
Roche agrees to the biggest obese drug deal ever
Tags: Mergers and acquisitions, strategic alliances
Summary: This article discusses a $5.3 billion licensing agreement with Zealand Pharma to develop and commercialize Petrilintide, a next-generation obesity drug based on the hormone amylin. The partnership aims to strengthen Roche’s position in the Waitros market, competing with Elirily and Novonordisk, by providing treatments that improve the patient’s experience compared to current options. Roche either acquired Zealand or chose to become a strategic alliance, leveraging Zealand’s expertise in amylin-based treatments.
Classroom Application: Roche obtained Carmot Therapeutics for $3.1 billion in late 2023, securing additional obesity drug candidates. This raises an interesting question: why did Roche choose a licensing agreement with Zealand rather than pursuing a similar acquisition?
Roche’s strategic decision to work with Zealand Pharma provides a practical example of applying the Build-row-Or-Buy framework to corporate strategy. This decision-making framework systematically guides executive leaders in choosing strategic partnerships (such as licensing or joint ventures), internal development choices in strategic expansion. As part of this decision tree, “better” and “ownership” tests can be applied to assess the value and need of ownership.
Discussion questions:
Does Roche have strong internal expertise in amylin-based weight loss drugs or is it particularly strong in drug research and development? How does this expertise compare to Zealand’s professional competence in this particular drug type? Are internal resources in Roche sufficiently relevant to the need to select internal development (“Build”)?
Does Zealand license and trade its capabilities to make strategic alliances viable (“borrow”: Contract Alliance)?
Does Roche need to acquire ownership of Zealand to benefit from its drugmaking capabilities? Is the need for tight integration increasing (“borrow”: alliance with equity)?
What challenges will Roche face if Zealand Pharma acquires (“purchase”)? Does full ownership of Zealand Pharma offer a greater competitive advantage to Roche compared to licensing and joint development arrangements?
Niklas Lindlbauer, assistant professor at King’s College, London, University College, Global Business School, London, London
accounting
Manchester United reveals plans for a new 100,000-seater stadium
Tags: Accounting, Finance, Capital Budget, Stadium Investment, Forecast Analysis
Summary: Manchester United have revealed plans for a 100,000-seat £2 billion stadium. The goal is to replace Old Trafford as a new home for the club and become a hub for larger projects to revitalize the city. The ambitious approach to design and construction illustrate both new ideas for architecture and environmental care. But the issues of money and sports are looming. The efforts to reduce costs of Ir Jimratcliffe and the club’s recent performance raises concerns about balancing short-term budgets and long-term investments.
Classroom Application: This news can be used to show how decisions regarding large-scale capital expenditures in sports interact with factors in accounting, financial and business analytics. Students can assess several sources of funding and accounting for large stadium projects, investigate whether success should be quantified only by net current value and intangible factors such as brand strengthening, and weigh short-term savings in cost reductions on fan goodwill and long-term impacts on employee morale. It also encourages discussions about how predictive analytics predicts the impact of significant investments, including star signatures, upgraded facilities, on-field performance, and ultimately future revenue.
question:
Funding strategies that Manchester United can use to fund a £2 billion stadium (such as bond issuance, private equity, naming rights, etc.)
How do you model and explain this long-term capital expenditure on the club’s balance sheet?
How do you measure the “success” of a stadium project? Is it purely about pure current value (NPV) and payback period, or should we also consider the intangible benefits (brand strengthening, fan experience)?
Compare potential losses from intangible assets such as fan goodwill and employee morale with potential savings from cost savings. How do you quantify that trade-off?
Which forecasting models can assess the effect of star signing or improved facilities on the outcome of the match and therefore future revenue?
Martin Muryadi, professor of accounting at Shenandoah University
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