WO 32 BUSINESS CHALLENGES FOR GM'S FIRST FEMALE CEO fhen Mary Barra took the helm as CEO achieved leadership success in eliminat- to testify to Congress about GM's knowledge of General Motors, it made her GM's ing complexity and encouraging innovation about product defects. Barra had to bring all first-ever female CEO and the first female to For example, as HR chief, she reduced the her experience to bear to maintain GM's cur- lead any major global automobile company. company's 10-page dress code down to two rent strengths and enable it to go forward As CEO, Barra is responsible for setting the words: "Dress appropriately." She is also toward continued success. vision and direction of the huge international known for her ability to organize and stream- firm and guiding GM from its troubled past line, bringing "order to chaos" in the huge Discussion Questions into a profitable future. To do so, she is apply. and complicated global product development 1. How will Mary Barra's experiences as a ing the management and leadership lessons department leader of various departments help her she learned on her journey to the top. These talents served her well as she tack- now as CEO? Are there different skills she Barra spent her entire career at GM, start led GM's business issues. Although GM has ing in 1980 as an engineering intern. She later might have learned that will now be useful? returned to profitability since its bankruptcy. became an assistant to then-CEO Jack Smith, its market share in the United States is at a 2. What types of management traits and skills and subsequently moved into leadership- has Barra exhibited in her leadership style? historic low, profit margins are weaker than First as the manager of an assembly plant, competitors, and some of its brands such as 3. Are there any potential downsides to hiring and eventually into various top-management Opel in Europe are losing money. The scandal a CEO who has spent her entire career at les. Throughout these roles, Barra has with the faulty ignition switches forced Barra the company? enstraints, technological constraints, economic or simply a lack of information and expertise. a small computer manufacturer may recognize a price cut to boost sales, management must think about th consequences of the action on the organization's cash flow as consumers' reaction to the price change. WARBY PARKER DOES GLASSES ITS OWN WAY few years ago, four Wharton business 1 million pairs of eyeglasses, and the company is the possibility of acquisition, an option has been valued at over $300 million often sought by entrepreneurial investors of stylish prescription glasses (up to $700 or Some analysts attribute Warby Parker's who want a quick return on their money. Will more each). When they discovered it was a success to its unique culture and branding Warby Parker end up being bought out by the single company's near-monopoly over the approach; it goes beyond simply selling eye same high-priced company it set out to chal- optical industry that led to steep prices, the glasses to incorporate quirky and subtle coun lenge initially? These questions will define the idea for Warby Parker was born. The startup's terculture elements into everything it does. company's future as it transitions into a more premise is simple: By designing and manufac Others find the company to be an example mature stage of growth." turing glasses in-house, and doing without of "good old-fashioned amazing execution." the traditionally high profit margins of the From customer approach to employee treat Discussion Questions industry. Warby Parker can sell designer. ment, the company is doing good business. 1. Why has Warby Parker been successful? style prescription eyeglasses for $95 each. It However, others are voicing concerns. offers online customers a try before you buy The company is still in the entrepreneurial 2. Does Warby Parker exhibit any of the clas- option-five pairs for five days at no cost. growth stage, meaning it survives on invest- sic strengths, or weaknesses, of an entre Additionally, for every pair bought, another ment capital and has not yet reached self- preneurial startup? is distributed to developing nations. By 2014, sufficient profitability. Is Warby Parker's 3. What are some challenges that Warby Parker Warby Parker announced it had donated over idealistic vision truly viable? Another concern will likely face as it matures as a company? is founding, the company was selling chocolates in Concif the advantanne of email hiieinace