August 24th, 2004

mystery

Wharton | Days 18-19

My final Wharton weekend of the first semester. 2 management classes (always fun), plus an econ final.

Management – Restructuring
We talked about an interesting case – People Express, a first airline to come out in 1980, right after the deregulation of the industry. They had a unique and entirely novel approach to people management, encouraging high-performance, leveraging employee’s commitment, giving out company stock to each employee, etc. Collapse )
mystery

Wharton | Days 16-17

Economics
Talked about all sorts of pricing strategies – very cool stuff. The optimal one (from the firm’s perspective) seems to be 2 part tariff, which is having a “membership” fee and then a minimal usage fee. Examples: student advantage cards, golf club memberships with tee fees; printers with subsequent cartridge purchases; basic telephone service with per minute charges, etc. In simplified terms, once you’ve purchased the “membership” part, you will spend more on the usage charges than you otherwise would have, since the more expensive part is already spent and you feel the need to “amortize” the cost. There is a much more technical and correct explanation for this. The bottom line – this is something I can use directly on my job right now!

Collapse )
He then thanked the teaching assistant and bowed out with John Lennon’s words: “I’d like to thank you on behalf of the band and myself and I hope we passed the audition”. The contrast between this closing and the one four hours earlier was evident in the sincerity and duration of the applause.