Business at Michigan

Interested in Business? Apply to B@M! We’re thrilled to announce that our application for Fall 2024 is now open! If you missed us at Festifall, don’t worry—join us at our Mass Meeting on the 10th to learn more about what our student organization has to offer. To stay in the loop with all updates and communications, make sure to fill out our interest form: https://lnkd.in/gsiZpVE9 Fall 2024 Application: https://lnkd.in/gA9yq9kZ We can’t wait to see you there!

In a bold step to modernize how professional golf operates, the PGA Tour has introduced PGA Tour Enterprises. This new venture brings nearly 200 PGA players who are on tour as stakeholders in the worldwide corporation. Developed in collaboration with Strategic Sports Group (SSG), this move is groundbreaking in recent efforts to include players in the business’s success. PGA Tour Enterprises promises to grant players a share of over $1.5 billion in equity, with different allocations reflecting their career milestones, recent successes, and ongoing participation. This shift towards the players is not only an opportunity for financial success but a strategic movement in how athletes engage with the leagues they are part of. The idea is to cultivate a deeper commitment to the advancement of the sport. Led by SSG's substantial investment of $1.5 billion, the end goal is to create endless avenues for success within the industry. In addition, the potential for further funding from the Public Investment Fund (PIF), Saudi Arabia’s largest sovereign wealth fund, showcases the worldwide excitement and confidence in golf’s future. PGA Tour Commissioner Jay Monahan, as well as prominent figures in the golf industry like Tiger Woods and Rory McIlroy, have strongly endorsed this venture and believe it will revolutionize golf’s commercial landscape. PGA Tour Enterprises not only strengthens the financial status of players but also is innovative in its goals for long-term success and global expansion. Eli Brand Executive Vice President Business at Michigan

This past fall, Domino's introduced a rebranding of their "Piece of the Pie" rewards program—their first major change to the program since 2017. Now labeled "Domino's Rewards," the program is highlighted by halving the minimum spend required to accumulate points, from $10 to $5, as well as introducing new reward point thresholds. It was also complemented by their "emergency pizza" initiative, which allowed loyalty customers to claim a free pie at a later date with qualifying purchases from October 9, 2023, through February 24, 2024. Most fast-food chains are actively scaling forward their rewards programs but are increasing the cost in points for reward items. Domino's is doing the opposite—pursuing a strong customer retention strategy while absorbing the risk of reduced margins at their stores. The hope is that increased loyalty and customer engagement will offset those reductions. With their focus in 2024 on loyalty purchases, Domino's is accelerating its retention efforts, undertaking a proactive retention campaign. They have seen early success with 3 million new members joining their rewards program, with two-thirds of that increase coming after the changes made in September. Daniel Roberts VP of Marketing Business at Michigan

This past fall, Domino's introduced a rebranding of their "Piece of the Pie" rewards program—their first major change to the program since 2017. Now labeled "Domino's Rewards," the program is highlighted by halving the minimum spend required to accumulate points, from $10 to $5, as well as introducing new reward point thresholds. It was also complemented by their "emergency pizza" initiative, which allowed loyalty customers to claim a free pie at a later date with qualifying purchases from October 9, 2023, through February 24, 2024. Most fast-food chains are actively scaling forward their rewards programs but are increasing the cost in points for reward items. Domino's is doing the opposite—pursuing a strong customer retention strategy while absorbing the risk of reduced margins at their stores. The hope is that increased loyalty and customer engagement will offset those reductions. With their focus in 2024 on loyalty purchases, Domino's is accelerating its retention efforts, undertaking a proactive retention campaign. They have seen early success with 3 million new members joining their rewards program, with two-thirds of that increase coming after the changes made in September. Daniel Roberts VP of Marketing Business at Michigan

Capital One (NYSE: COF) has announced that they are buying Discover Financial (NYSE: DFS) in an all-stock transaction valued at $35.3 billion. Capital One is purchasing the Discover Financial shares at a value of almost $140, a steep premium of (26.5%) based on the price on Friday, 2/16's close ($110.50). While this transaction will combine two of the nation’s credit card companies that aren’t banks, the larger opportunity appears to be giving Discover’s payment network a major credit card partner in an attempt to shake up the payments industry, which is currently dominated by Visa and Mastercard. High-interest rates and high borrower defaults will require both companies to increase their reserves (which will negatively affect profits), however, the payment processing fees could make this a worthwhile transaction. This deal may lead to an antitrust review and possible challenge. It will be interesting to see if DOJ views this transaction negatively (a combination of two top 10 credit card issuers) or positively (a rival to the Visa and Mastercard control of the payment processor industry)! Spencer Lazarus Vice President of Operations Business at Michigan