An analysis of many highly successful and "visionary" companies reveals the existence of corporate cultures that emphasize adherence to company goals and cohesiveness within the group. While such cultures can improve effort, morale, and productivity, they also tend to thwart innovation--limiting not only the expression of "original" ideas, but even their production. Research in social psychology suggests that flexibility to changing circumstances and innovation is better served by a "culture" that not only tolerates, but welcomes dissent and minority views. Such dissent--even when wrong--stimulates better decision making and innovation. Thus, the proper harnessing of dissent may provide a mechanism for creating unity without uniformity and for igniting the "spark" of innovation.
Creativity in all fields, including business, flourishes under intrinsic motivation--the drive to do something because it is interesting, involving, exciting, satisfying, or personally challenging. This article presents the Componential Theory of Organizational Creativity and Innovation, which defines the factors--including intrinsic motivation--that determine a person's creativity. This article also shows how the work environment can influence individual creativity.
In 1996, Silicon Valley companies and their leaders organized a successful campaign to defeat a ballot initiative that would have circumvented federal law and made securities fraud lawsuits, which the companies believed were largely frivolous, easier to win. Approximately 1,300 federal class action securities fraud lawsuits were filed from 1988 to 1996, resulting in settlements averaging $7.3 million. The lawsuits, which alleged securities fraud resulting from inflated earnings projections by the firms, were typically filed after a sharp fall in a company's share price. High technology firms, which frequently have volatile share prices, were the principal target of the lawsuits. Several law firms, led by Bill Lerach, specialized in these lawsuits, and some were believed to have stables of shareholders who would file a lawsuit as soon as a company's share price fell significantly. Even though the defendant companies were confident that no fraud had been committed and that the lawsuits were frivolous, the defendants felt compelled to settle to avoid a prolonged and costly court battle. In 1995, high technology, accounting, and other firms succeeded in having Congress enact federal legislation limiting the circumstances under which such lawsuits would be successful. Restricted at the federal level, the plaintiff's bar sought to use state laws as the basis for their lawsuits. To strengthen their position under state law, the plaintiff's bar qualified a referendum, proposition 211, for the November 1996 California ballot. If passed by the voters, not only would securities fraud lawsuits be easier to win but virtually all publicly traded companies in the United States could be subject to lawsuits.
In 1996, Silicon Valley companies and their leaders organized a successful campaign to defeat a ballot initiative that would have circumvented federal law and made securities fraud lawsuits, which the companies believed were largely frivolous, easier to win. Approximately 1,300 federal class action securities fraud lawsuits were filed from 1988 to 1996, resulting in settlements averaging $7.3 million. The lawsuits, which alleged securities fraud resulting from inflated earnings projections by the firms, were typically filed after a sharp fall in a company's share price. High technology firms, which frequently have volatile share prices, were the principal target of the lawsuits. Several law firms, led by Bill Lerach, specialized in these lawsuits, and some were believed to have stables of shareholders who would file a lawsuit as soon as a company's share price fell significantly. Even though the defendant companies were confident that no fraud had been committed and that the lawsuits were frivolous, the defendants felt compelled to settle to avoid a prolonged and costly court battle. In 1995, high technology, accounting, and other firms succeeded in having Congress enact federal legislation limiting the circumstances under which such lawsuits would be successful. Restricted at the federal level, the plaintiff's bar sought to use state laws as the basis for their lawsuits. To strengthen their position under state law, the plaintiff's bar qualified a referendum, proposition 211, for the November 1996 California ballot. If passed by the voters, not only would securities fraud lawsuits be easier to win but virtually all publicly traded companies in the United States could be subject to lawsuits.
Focuses on Share Our Strength (SOS), a national nonprofit anti-hunger organization. Examines various decisions faced by SOS related to the establishment of marketing partnerships with American Express (AMEX) and Restaurants Unlimited, Inc. (RUI). The specific alliances involve two corporate sponsorship decisions, Taste of the Nation (TOTN) and Dine Across America (DAA), and one cause-related marketing partnership, Charge Against Hunger (CAH). This case provides background and history of SOS from its inception in 1984. Also details the organization's first key fund-raising event, TOTN. SOS's search for a corporate sponsor for TOTN revolves around consideration of American Express. It is up to the student to assess this opportunity.
Focuses on Share Our Strength (SOS), a national nonprofit anti-hunger organization. Examines various decisions faced by SOS related to the establishment of marketing partnerships with American Express (AMEX) and Restaurants Unlimited, Inc. (RUI). The specific alliances involve two corporate sponsorship decisions, Taste of the Nation (TOTN) and Dine Across America (DAA), and one cause-related marketing partnership, Charge Against Hunger (CAH). This case discusses how the development of cause-related marketing partnerships with AMEX fueled SOS's growth. As a result SOS looks to further expand restaurant participation and develops a new partnership with RUI. They then look to Amex again as a sponsor to expand the DAA program nationally. The student must assess this partnership as well.
David Bechhofer, a partner responsible for Bain & Co.'s marketing strategy, faces a dilemma: Traditional marketing is foreign to Bain's corporate culture (which is rather based on customer relationships), yet the firm cannot ignore traditional marketing tools if it wants to face global competition in the rapidly growing consulting industry. Indeed, all of Bain's traditional competitors as well as a lot of new players use aggressive marketing to acquire new segments from the growing customer base. David has to respond to this challenge while staying consistent with the firm's original value proposition, which is highly appreciated by its existing customers. The case provides an opportunity to discuss how to communicate a consistent global corporate image for a services firm whose "raison d`etre" is based on customer relationships.
Surveys the French pension system, its particular institutional characteristics, and some of the critical challenges and opportunities facing French reformers. Like almost every other industrialized country, France has a large pay-as-you-go public pension system that is beginning to run into serious financial trouble. Ever-increasing longevity, the impending retirement of the baby boomers, and intense public pressure for a lower retirement age are all placing great strain on the existing system. The case emphasizes that in contemplating proposals for reform, the French are being required to weigh two different social objectives that appear to be in conflict--economic growth and economic security. Their choices will end up exerting an enormous impact not only on their welfare state but also on the structure of French labor and capital markets.
Bayer's senior executives detail the communications challenge program that resulted from the company's reacquisition of its brand name and trademark cross, which gave Bayer one name worldwide for the first time since World War I.
This case examines Boston Chicken's franchise strategy for growing its innovative restaurant business, and the associated accounting reporting issues that arise.
After a substantial devaluation of Mexican currency, a major automaker attempts to reduce the price it is paying to a Mexican-based supplier. The supplier (Ventramex) is put in a difficult position because a large portion of its costs are based in U.S. dollars. The company must decide how to respond to the automaker while considering options that would increase the proportion of its costs that are based in Mexican pesos.
Acting on his vision to make the World Bank a knowledge institution, bank President Wolfensohn announces the creation of an Information and Knowledge Management Council and an Information Solutions Group, headed by a newly nominated CEO, Mohamed Muhsin. This case describes Muhsin's intentions as well as those of the head of the bank's knowledge-management initiative.
A world leader in the design and volume production of complex, rigid, multilayer printed circuit boards must decide how to compete in a rapidly consolidating industry. Many of Praegitzer's key competitors are growing rapidly and developing new skills that threaten Praegitzer's position in the market.
This note presents an overview of some fundamental characteristics of managing change. Such classic change models as those of Lewin, Beer, and Kotter are introduced. A general model of change is presented, together with predictable stages in the change process and predictable responses to change. Managing change is highlighted as an important part of the skill set of an effective leader so that students are encouraged to become familiar with a model of change and with skills at managing it in order to become better leaders.