COURSE CONNECTOR

 ARTICLE SUMMARIES AND QUESTIONS

"C-Suite Strategies: The Colvin Interview: Linda Fisher," pp. 45-50: When people think of DuPont, they generally think of chemicals. But DuPont is much less of a chemical company than it used to be, having evolved over the past decade into a broad-based science company with an emphasis on biotech. At the center of this transformation is Linda Fisher, the company's Chief Sustainability Officer, who not only deals with environmental compliance issues, but even more importantly, helps define DuPont's place in the future economy. A 13-year veteran of the Environmental Protection Agency, where she was in charge of developing the EPA's first position on climate change, Fisher scrutinizes megatrends in DuPont's major markets in search of opportunities that will increase profits while making the planet greener. What she has discovered is that while customers aren't necessarily willing to pay more for sustainable products, they are definitely interested in buying them. Further, the recession has not had a negative impact on the demand for green, energy-efficient products, indicating that the interest is legitimate, and not a fad driven solely by marketing. So DuPont's customers are on board, but what about its investors? They're being cautious, Fisher reports. The enthusiasm for sustainability is there, but DuPont has yet to see its stock respond in kind.

This article profiles DuPont's Chief Sustainability Officer, Linda Fisher, who reports from the battlefield in the war on climate change.

Discussion Questions:

1. What is sustainability? As Chief Sustainability Officer, what are Linda Fisher's two primary responsibilities at DuPont? How has sustainability evolved over the past 40 years? How does Fisher envision the future of sustainability?

2. What is Fisher's opinion of the cap-and-trade system for greenhouses gases that was part of a climate bill passed by the House in June? Why does she feel it is the best way to reduce emissions?

3. What does Fisher expect to happen at the U.N. climate conference in Copenhagen in December? What is "unfortunate" about it, according to Fisher? When does Fisher predict climate legislation will pass in the U.S.? Why?

"A Scandal Rocks the Polo Set," pp. 55-71: To his friends and neighbors in the Unionville area of wealthy Chester County, Pa., Tony Young was a financial genius. The founder and head of the seemingly successful money management firm Acorn Capital, Young and his wife were accepted members of the tight old-money community that played polo, hunted fox, and danced their nights away at charity balls. Many of them also invested in Acorn. But it turns out that Young isn't who his friends thought he was, and they've taken a financial hit as a result. On April 20, the Securities and Exchange Commission filed civil fraud charges against Young, Acorn Capital Management LLC, and Acorn II LP, accusing Young of stealing and misappropriating investors' money. The complaint alleges that Young pilfered at least $23 million from investors to use for his own purposes, in addition to exploiting "some investor monies to pay other investors in the nature of a Ponzi scheme." Even Young's reported background as a trust-fund heir from a wealthy Georgia Coca-Cola bottling family with an MBA from Emory University was a complete fabrication. While Young's fraud is small by Bernie Madoff standards, the fact that he was able to pull the wool convincingly over so many well-heeled eyes sets this scandal apart.

Students take a closer look at the Securities and Exchange Commission's investigation of Acorn Capital and its enigmatic founder, Tony Young.

Discussion Questions:

1. How was Tony Young able to infiltrate the cloistered world of the Unionville polo set? What is a relief defendant? Why has W.B. "Dixon" Stroud Jr. been named a relief defendant in the SEC's case against Young?

2. How did Young's financial sleight of hand work? For what purposes did he use the money he allegedly stole from the fund? Why did the fraud go undetected for so long?

3. Describe the events that led to Young's eventual undoing. What excuses does he offer for his actions? What do you think his fate will be? Explain.

"Detroit Needs Business. Can This Man Bring It Back?" pp. 73-76: Perhaps no one region of the U.S. has suffered more as a result of the past year's recession than Detroit. Despite billions in public and private investment over the past 15 years, the once bustling home of the American auto industry already had been in decline. Now, with two of the U.S.'s Big Three automakers having declared bankruptcy, the city's unemployment rate is close to 30%, its downtown looks more like a ghost town, and even its school system is in receivership. Part of Detroit business tradition, however, is the periodic emergence of an entrepreneur who believes he can kindle a turnaround by sheer force of will. The latest is Dan Gilbert, founder and CEO of the online mortgage company Quicken Loans, who announced in July his decision to move his company headquarters — and 1,700 employees — from suburban Livonia to the tower at One Campus Martius, which it will share with business-software maker Compuware. Gilbert's vision is to reweave the social fabric of business in Detroit by attracting a hub of tech companies and along with them a cluster of smart, creative young people. While it will be an uphill battle, Gilbert's passion may yet prove to be Detroit's saving grace.

In this article, students read about online-mortgage mogul Dan Gilbert and his plans to spark a revival in Detroit's nearly deserted downtown.

Discussion Questions:

1. Why does Dan Gilbert believe other companies will follow his lead and relocate to Detroit? What evidence does he offer to support his opinion? Do you think he is right? Why or why not?

2. Aside from owning a sports team, what step does the article assert that self-made Detroit moguls must take to become a "local legend?" Why does Detroit-based real estate developer Peter Cummings believe it is so difficult to take this step in Detroit?

3. On what does Gilbert blame the long stall in Detroit's revival? What are his plans for linking up the sprawling, disconnected city? What personal traits will serve Gilbert well in this mission?

"Steve Jobs: The Decade of Steve," pp. 92-100: There have been a lot of good business stories over the past decade, but none as compelling as that of Apple founder and CEO Steve Jobs. In the past 10 years alone he has radically and lucratively reordered three markets — music, movies, and mobile telephones — and his impact on his original industry, computing, has only grown. Remaking any one business is a career-defining achievement; four is unheard of. That Jobs also survived two brushes with death and a securities-law scandal during that same stretch of time makes his story all the more remarkable. In 2000, Apple was worth about $5 billion, its market share in personal computers was plummeting, and its cash drain was so severe that bankruptcy was a real possibility. Then as global markets fell in 2001, Jobs unleashed Apple's groundbreaking "digital lifestyle" strategy, which featured the release of the wildly successful iPod, the launch of iTunes music software, the opening of Apple retail stores, and the introduction of the Mac OS X operating system. The rest, as they say, is history. Today Apple is worth $170 billion, making it the most valuable company in Silicon Valley. What's the next chapter in Jobs' story? Jobs will let us know when he's good and ready.

Students examine how Apple's imperious, brilliant CEO, Steve Jobs, has transformed both American business and American lifestyles in one frenzied decade.

Discussion Questions:

1. What is the hallmark of Steve Jobs' management style? Upon his return to Apple, what did he realize is the differentiator for Apple in the computer industry? How does this distinction benefit from Jobs' personal strengths?

2. How was Jobs able to broker the iTunes deal with record labels in 2002? Why was the record industry so willing to work with Apple? How has the agreement they reached transformed the music industry since then?

3. How do you think Jobs will respond to the competition he has awakened, particularly in smartphones, as the personal computer fades in relative importance? Has Jobs fashioned an organization that can succeed him? Explain.