Management offers business, finance tips for 2015

Faculty from the School of Management shared their research and expertise throughout the past year and made headlines worldwide. Now, you can protect your finances and help your business thrive in 2015 using the six tips below:

• Ensure your financial security as you age. In his book, “What to Do When I Get Stupid: A Radically Safe Approach to a Difficult Financial Era,” Lewis Mandell, professor emeritus of finance and managerial economics, says financial reasoning peaks around age 53 and then declines sharply, especially after age 70. One tip: A fully paid, age-in-place home can keep you and your loved ones out of expensive nursing homes, which can quickly deplete your assets.
• Protect your passwords. David Murray, associate professor of management science and systems, conducted a cybersecurity workshop for middle schoolers in October. His tips were good reminders for all. “Digital technology is part of our daily lives,” he says. “It’s vital that we’re aware of the threats and how to keep our online accounts safe.”
• Increase sales while standing up for workers and American traditions. Instead of retailers opening on Thanksgiving, marketing professor Arun Jain says, “A far better strategy for increasing sales and maintaining high levels of customer service is for businesses to make their Black Friday offerings more attractive.”
• Get an investment banker on your board of directors to make better mergers and acquisitions. Research by Feng (Jack) Jiang, assistant professor of finance and managerial economics, found that corporations with board directors who have investment banking experience are more likely to acquire other businesses — and make better acquisitions when they do.
• Use sub-brands to maximize revenue when bringing new products to market. Marketing professors Debabrata Talukdar and Ram Bezawada found that companies should use existing brand names and add new, sub-brands to maximize revenue when introducing new products to market. “Sub-branding can help consumers distinguish from the parent brand, such as Gillette Mach3, and generate greater revenues,” says Bezawada.
• Seek quality — not quantity — in startup business partnerships. Ramin Vandaie, assistant professor of operations management and strategy, says when partnering with larger companies, startups with a few carefully chosen alliances will reap the most benefits. “Established companies can tap into a startup’s innovative potential, while young firms acquire knowledge and status from experienced partners,” he says.