Describes a decision to be made on the future of manufacturing for tape drives at Hewlett-Packard. HP has used several different manufacturing partners in the earlier versions of its products. Now HP is facing a decision to outsource manufacturing and create a virtual supply chain for the next product generation. Provides opportunities to discuss the strategic and operational challenges of outsourcing and the use of electronics manufacturing services companies in supply chain operation.
The United States and Europe exhibit very different approaches to information privacy--a condition of limited access to identifiable information about individuals--from both regulatory and managerial perspectives. Grounded in different cultural values and assumptions about the meaning of privacy (a "human rights" issue in Europe versus a contractual issue in the United States), these differences have led to regulatory and managerial conflicts. In this article, the differences between the two approaches are explored. U.S. corporations would be well served to embrace some of the premises of the European perspective. However, the United States would be poorly served by the creation of a federal regulatory structure such as some commonly found in Europe.
This article presents a perceived shopping utility framework for analyzing the impact of retail price format on store choice. Retail price format, in turn, determines three key performance metrics: number of shoppers, number of trips, and average spending per trip. When choosing a store, consumers evaluate both the fixed and variable utilities of shopping. The fixed utility does not vary from trip to trip whereas the variable utility depends on the size and composition of the shopping list. Summarizes prior findings on store choice, analyzes how retailers can improve their performance, and interprets the practices of leading retailers. Presents a framework that can accommodate situations where retailers face multiple segments of buyers with different sensitivities to fixed and variable utilities.
This article interprets the early experience of Internet Service Providers (ISPs) in terms of the market for technological mediation. A firm involved in technology mediation takes advantage of gaps between general technological opportunities and particular user needs in specific places at particular times. If the economic opportunities are renewed frequently, then the business can grow and adapt to take advantage of them. This concept provides a framework for explaining many facets of business behavior accompanying the diffusion of Internet access technology.
Data remains one of our most abundant yet underutilized resources. This article provides a holistic framework that will help companies maximize this resource. Outlines the elements necessary to transform data into knowledge and then into business results. Managers must understand that human elements--strategy, skills, culture--need to be attended to along with technology. Examines the experiences of over 20 companies that were successful in their data-to-knowledge efforts. Identifies the critical success factors that must be present in any data-to-knowledge initiative and offers advice for companies seeking to build a robust analytic capability.
Within the context of the large established organization, breakthrough ideas are frequently lost. This article describes how breakthrough innovations are captured through opportunity recognition. Based on evidence from a six-year-long study of twelve radical innovation projects in ten large U.S. firms. Highlights inefficiencies in current managerial processes and provides examples of organizational structures, mechanisms, and roles directed at reducing these inefficiencies. Presents a set of approaches for improving opportunity recognition capabilities and identifies several mechanisms for senior management to encourage "radical innovation" people and processes.
Management tools, such as strategic planning, benchmarking, pay-for-performance, outsourcing, customer segmentation, reengineering, balanced scorecard, and total quality management, garner considerable attention in the popular management literature. Companies throughout the world spend millions of dollars each year implementing a dozen or so of these tools. This survey examines the usage of these tools over a seven-year period, assesses user satisfaction with the tools, and attempts to correlate tool usage with company performance. Identifies tools that have been consistently used over time as well as those that seen to have been passing fads.
Chronicles International Paper from 1957 to 2001 in its transition from a company with a unique focus on forest products to one that embraced land management practices and fostered recreational and wildlife uses of forestlands. In 2001, International Paper (IP) was a billion-dollar global paper and forest products company with stewardship over 12 million acres of private forestlands in the United States. IP's foray into land management was spearheaded in 1983 by forester and biologist Tom Bourland. Describes Bourland's first business plan for leasing recreational opportunities (hunting and camping) on IP land, IP's forestry management practices, revenues from recreation and, in 2001, new challenges facing the company: providing support for environmental management programs in the face of declining demand for hunting areas and increased demand for forest products that meet various environmental criteria.
Focuses on the development and market launch of a new FMCG product (a chocolate bar). The product was innovative and positioned in the niche market of indulgent countlines. Pricing and market strategy for the product are highlighted. Focus groups were held with consumers after market launch, as the market acceptance of the product was lower than initially planned. Focuses on a strategy to increase market acceptance.
This case chronicles the 30-year evolution of Bank One's business strategy of growth through acquisition and the resulting branding issues encountered by the need to rebrand the acquired existing entities. Begins in 1968--at the start of the newly formed First Banc Group of Ohio, Inc.--a holding company created by the McCoy family to acquire other small banks in the state of Ohio. The banks were to be renamed "Bank One." It continues through the next 30 years of growth, marketing innovations, and expansion to many states beyond its Ohio base. This period of growth and change produced numerous challenges to the company's identity. The principal focus of the case is on the major branding obstacles associated with Bank One's merger with First Chicago NBD, a very large commercial bank. First Chicago NBD represented the first major commercial bank to become a member of the Bank One family of dominantly retail banks. Issues encompass whether the First Chicago NBD name should be changed to Bank One, as had been done for all previous retail bank acquisitions over the years or retain its name using only the endorsement, "A Bank One Company." Further complicating the situation is a major Bank One brand development initiative intended to implement the Bank One brand identity in new ways for all Bank One entities.
MJINI--Urban Youth Experts was founded by two recent college graduates as a research consulting firm, focusing on the buying patterns and lifestyle preferences of the urban youth who were setting many fashion trends but whom marketers found difficult to reach. Not only could the founders leverage their backgrounds, they could help their communities by communicating, building respect, and giving back to youth groups. Although they met with some success, they faced a number of questions typical to start-up companies: How fast to grow, how and whom to hire, how to train new recruits, how to finance growth, determining the right marketing and consulting product, determining its real market worth and billing rates, and identifying the greatest opportunities.
Few recent events have shaken public confidence in product safety as much as the recall of 6.5 million Firestone tires in August 2000. The defective tires made by Bridgestone/Firestone Inc. were supplied primarily as original equipment on Ford Motor Co. sport utility vehicles (SUVs) and sold as replacement items for SUVs and light trucks. For some consumers, the combination of Firestone tires and Ford vehicles proved lethal. Accidents involving tread separation and rollovers were blamed for 148 deaths and over 500 injuries. Chronicles the actions and reactions of Ford and Firestone, various legislative and regulatory bodies, and the public as the truth emerged.
As the new millennium dawned, many old economy companies faced the challenge of transitioning into the Internet era, making "Go Web or go dead" the common mandate. For John Kilcullen, CEO and publisher of IDG Books, the Internet offered an opportunity to fashion a new business model based on recurring revenues rather than one-time transactions. Instead of just selling books, Kilcullen envisioned the IDG Web site as the locus of continuing education and information. Chronicles the evolution of the "Dummies" series of books within the structure of the huge IDG organization, offering insights and discussion on what it takes to foster a successful corporate entrepreneurial climate.
Most people think of Napster when they think of peer-to-peer systems. Nirav Tolia, CEO of Epinions, explains why the power of peer-to-peer goes far beyond the entertainment industry. He predicts it will shake up the entire retail industry.
Some CEOs inspire their people to outstanding performance; others prompt yawns from their employees. A new study suggests that part of the difference lies in the words they choose to convey their messages.
Proposed changes by the SEC will reduce the accounting profession's conflicts of interest arising from consulting. But auditors can never be truly independent when they are hired and fired by the companies they audit.
Companies are always looking for innovative ideas. But employees often keep good ideas to themselves, afraid to test them in the workplace. Here's how managers can help erase the fear factor and promote experimentation