Craig Garthwaite

Professor of Strategy Herman Smith Research Professor in Hospital and Health Services Management Director of Healthcare at Kellogg at Kellogg School of Management

Biography

Kellogg School of Management

Professor Garthwaite is the Herman R. Smith Research Professor in Hospital and Health Services, a Professor of Strategy, and the Director of the Program on Healthcare at Kellogg (HCAK). He is an applied economist whose research examines the business of healthcare with a focus on the interaction between private firms and public policies.

His recent work in the payer and provider sectors has focused on the private sector effects of the Affordable Care Act, the impact and operation of Medicaid Managed Care plans, the responses of non-profit hospitals to financial shocks, and the economic effects of expanded social insurance programs such as Medicaid and Medicare for All.

Professor Garthwaite also studies questions of pricing and innovation in the biopharmaceutical sector. In this area he has examined the effect of changes in market size of investments in new product development, the evolving world of precision medicine, expanded patent protection on pricing in the Indian pharmaceutical market, the innovation response of United States pharmaceutical firms to increases in demand, and the relationship between health insurance expansions and high drug prices.

His research has appeared in journals such as the Quarterly Journal of Economics, the American Economic Review, the Annals of Internal Medicine, and the New England Journal of Medicine. In addition, he is a frequent media commentator appearing in media outlets such as the Wall Street Journal, the Washington Post, and The New York Times. He has also appeared as a guest on various television and radio shows such as Nightly Business Report and NPR Marketplace. In 2015, Professor Garthwaite was named one of Poet and Quants 40 Best under 40 Business School Professors.

Garthwaite received a B.A. and a Masters in Public Policy from the University of Michigan and his PhD in Economics from the University of Maryland. Prior to receiving his PhD, he served in a variety of public policy positions including the Director of Research for the Employment Policies Institute. He has testified before the United States Senate, United States House of Representatives and state legislatures on matters related to the healthcare markets, prescription drugs, the minimum wage, and health care reforms.

Education

  • PhD, 2009, Economics, University of Maryland, College Park
  • MA, 2008, Economics, University of Maryland, College Park
  • MPP, 2001, Public Policy, Gerald R. Ford School of Public Policy, University of Michigan
  • BA, 2000, Political Science, University of Michigan, cum laude

Academic Positions

  • Assistant Professor of Management and Strategy, Kellogg School of Management, Northwestern University, 2010-present, 2010-present
  • Senior Lecturer of Management & Strategy, Donald P. Jacobs Scholar, Management & Strategy, Kellogg School of Management, Northwestern University, 2009-present

Awards

  • Faculty Impact Teaching Award (2 Sections), Kellogg, One Term
  • Chairs' Core Course Teaching Award, Kellogg, One Year
  • Young Economist Award, International Institute of Public Finance, 2011
  • Impact Award, Kellogg School of Management, 2010

Videos

Courses Taught

Read about executive education

Cases

Garthwaite, Craig, Meghan Busse and Greg Merkley. 2011. Starbucks: A Story of Growth. Case 5-211-259 (KEL665).

Founded in 1971 and acquired by CEO Howard Schultz in 1987, Starbucks was an American success story. In forty years it grew from a single-location coffee roaster in Seattle, Washington to a multibillion-dollar global enterprise that operated more than 17,000 retail coffee shops in fifty countries and sold coffee beans, instant coffee, tea, and ready-to-drink beverages in tens of thousands of grocery and mass merchandise stores. However, as Starbucks moved into new market contexts as part of its aggressive growth strategy, the assets and activities central to its competitive advantage in its retail coffee shops were altered or weakened, which made it more vulnerable to competitive threats from both higher and lower quality entrants. The company also had to make decisions on vertical integration related to its expansion into consumer packaged goods.

Brown, Jennifer, Craig Garthwaite, Susan Crowe, Charlotte Snyder and Greg Merkley. 2016. Global Aircraft Manufacturing, 2002–2011. Case 5-312-505 (KEL938).

At the dawn of the twenty-first century, Boeing and Airbus, the leading manufacturers of large aircraft, were locked in a battle for market share that drove down prices for their new planes. At about the same time, the two industry heavyweights began developing new aircraft families to address the future market needs they each projected.

Aircraft take many years to develop, so by the time the new planes made their inaugural flights, significant changes had occurred in the global environment. First, emerging economies in the Asia-Pacific region and elsewhere were growing rapidly, spawning immediate and long-term demand for more aircraft. At the same time, changes to the market for air travel had created opportunities for new products. These opportunities had not gone unnoticed by potential new entrants, which were positioning themselves to compete against the market leaders.

In October 2007, the Airbus superjumbo A380 made its first flight. The A380 carried more passengers than any other plane in history and had been touted as a solution to increased congestion at global mega-hub airports. Four years later the Boeing 787, a smaller long-range aircraft, was launched to service secondary cities in a point-to-point network.

The case provides students with an opportunity to analyze the profit potential of the global aircraft manufacturing industry in 2002 and in 2011. Students can also identify the actions of participants that weakened or intensified the pressure on profits within the industry.

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