Xyberspace Consulting, Inc., is reconsidering the allocation of the costs associated with its Training and Educational Services Group (TESG), a shared-services or support department to its user departments. Currently, the company uses a single departmental rate to allocate actual training costs to the user groups, using the user groups' actual usage of TESG resources. The company is exploring whether it should allocate TESG fixed and variable costs separately, whether it should use budgeted or actual allocation rates, and whether it should allocate costs based on budgeted or actual usage. This case is intended to give students exposure to allocating shared-services or support-department costs, understanding the implications of different allocation strategies, and evaluating whether and how allocation systems can facilitate strategy implementation.
Even in a mature and complex market, which is resistant to across-the-board price increases, there are still many ways to deftly raise effective prices and increase market share. Pricing policy, if wielded wisely, can still be a powerful tool. The path to these pricing opportunities lies in three actions management can take: changing the structure of the price (bundle benefits, unbundle benefits, offer alternative service levels and price points, link future purchases to current transactions, change the price effectiveness period, substitute components of the price, shift some of the price to suppliers); building more subtlety into the pricing process (set prices selectively rather than across the board, move prices in smaller increments, raise invisible prices, match price moves to the market, use discounts strategically to build relationships with desirable clients); and exploiting patterns common in other difficult markets (price against the leader, follow the leader, seek out segments that will tolerate higher prices). With the hidden power of pricing, a company facing a highly price-competitive market can use knowledge and subtlety to improve its returns and share.
Mastering the art of recovering and rebuilding products from the world's waste stream is a big step toward achieving sustainable development. Drivers of remanufacturing include not only legislation but also the prolonged economic life of equipment and strategic opportunities. Key issues in the reverse logistics of remanufacturing include transportation and storage, handling and packaging, sorting, and disassembly. Understanding disassembly involves capabilities for inspection and sorting, knowing what to disassemble, feedback to designers, inventory control, and scheduling. Finally, there is the matter of reassembly. When remanufactured products are completed, they must be introduced back into consumer channels and forward logistics. Also of importance are the development of market awareness and appreciation; here, issues of target markets, pricing, and warranties must be addressed. Successful remanufacturing requires the development of skills that currently are not a major part of the manufacturing portfolio. Development of skills in reverse logistics will move us closer to the ideal of sustainable development.
Challenges conventionally held views of negotiations, arguing that they are simplistic, static, and sterile. Develops seven propositions about real-world negotiations emphasizing the impact of complexity and the need for learning and adaption.
Challenges the notion that pre-negotiation preparation is the most important determination of success. Examines two fundamental problems with current thinking about preparation: the boundaries problem and the limits problem. Proposes an alternative model of negotiation as a cyclical process of learning, planning, and acting.
Requires participation in a team research project. Each team should have three to four members. The goal of the project is to acquire first-hand knowledge of how a particular business process is managed at a small company.
As the ninth largest bank holding company in the United States in 2000, FleetBoston Financial Corp. provided a myriad of financial services, including retail banking, loan origination, and brokerage accounts. This case explores how FleetBoston responded to the Internet and the rise of new competition from both within and outside the banking industry. The majority of the case acquaints students with how customers interact with financial services, how these firms make money, and what are their challenges and opportunities. The majority of retail banking customers are unprofitable, making for a unique operating environment in which innovations are consistently aimed at reducing costs. Because customer behavior contributes directly to costs, innovations center on providing lower cost channels for customer transactions. Unfortunately, each new channel increases overall costs, and banks are still faced with reducing costs. In addition, the Internet has given rise to new competitors, many with lower cost structures and revenue potential outside banking.
Sam Marcus recently purchased a small cabinet-making company, and is looking for dramatic growth. The company competes in commercial and residential construction markets; shortly after the acquisition, the company gains a large new residential customer. The case traces the changes made at the company and how the relationship with this customer begins to deteriorate. At the end of the case, Marcus must decide whether to fix or end the relationship.
In January 1994, Igor and Ludmilla Ivanovic opened the doors of their bakery, Iggy's Bread of the World. This case describes their unusual mission statement and the way in which they try to bring a social consciousness mentality to a for-profit business. Six years later, they have grown beyond their physical and administrative capacity. The Ivanovics must decide how to reconfigure the leadership structure of the company without losing their control over the fundamentals.
A regional director of donor services for the American Red Cross was wondering how to improve services to blood donors. Faced with an increasing number of complaints that donors were being held up in long lines at Red Cross' mobile blood collection operations - commonly termed bloodmobiles - she was considering several design alternatives for the blood collection process. Using the accompanying Extend run-time model (product #7B00D024), data file and structured assignment, students can explore changes in staffing assignments, donor registration and donor-bed configurations. For each alternative, a comparison is possible along a number of performance dimensions.
The vice-president of National Hockey League Enterprises Canada is faced with an opportunity to pursue the development of a retail outlet dedicated to Brand NHL merchandise. He must decide among three implementation options: retain control of the facility, relinquish control to a management firm or retain operational control. This case is suitable for an introductory business course and may be taught over two one-hour classes.
Enables a thorough analysis of Ventro (formerly known as Chemdex), which builds and operates multiple B2B marketplace companies. Examines Ventro's business model and strategy as well as the company's operating, technical, and management expertise. Part of the Building-E-Business Online series.
Weeks after the crash of Alaska Airlines Flight 261, 64 mechanics claim that they have been "pressured, threatened, and intimidated" into taking shortcuts. After briefly describing Alaska Airlines' history and CEO John Kelly, the case details how the airline responded to the crash and the resulting investigations. Also describes labor relations between management and its largest unions. At the end of the case CEO Kelly prepares for a news conference to respond to the mechanics allegations. Teaching purpose: To address crisis management, corporate diplomacy, labor relations, public relations, and transportation safety.
Describes the evolution of Wit Capital from its origins as a small brewery to an online investment bank advising both small technology-based companies seeking to raise capital and large companies seeking to acquire Internet companies, as well as offering retail brokerage services to individual investors seeking access to initial public offerings. Discusses Wit's continuing evolution in 2000, when it sold its retail brokerage unit and refocused on traditional corporate clients. Provides details of Wit's value propositions to its target clientele and some data regarding the value provided and service quality delivered. Written for a second-year MBA course in Service Management. Can also be used in courses focusing on the Internet, General Management, Entrepreneurship, Service Management, and Service Operations.
Provides a brief overview of employee stock ownership plans (ESOPs) and phantom stock plans for owners of closely held companies. ESOPs can be used as a tool of corporate financing, and can provide employees with ownership interests. Phantom stock plans can reward executives for value creation without giving up ownership. Covers typical company motives for establishing such plans, regulation, tax advantages, administrative costs, issues of corporate governance, and payment of plan benefit. Includes a two-page bibliography with references to further sources of legal and tax information.