The federal Occupational Health and Safety Administration, created by Congress in 1970 to curtail what was viewed as a still-alarming level of industrial accidents, had, 20 years later, become a lightning rod for controversy. Its advocates viewed it as a bulwark of the defense of sale working conditions but opponents portrayed it as abusively intrusive, creating bureaucratic nightmares for employers. With that backdrop -- and with dwindling manpower and other resources -- OSHA officials in Maine, in 1991, try a radically different approach to their task, targeting 200 businesses which data has told them are the state's most important to bring into compliance. OSHA hopes both to avoid diluting the inspection capacity it has -- and to find ways to persuade, rather than to coerce through the law, business to make improvements. The apparent success of the Maine 200 program comes at a time when the new Clinton Administration is eager to find such government "reinvention" programs it can widely replicate. This case allows, first, for analysis of the strengths and weaknesses of the Maine 200 effort as an example of gaining compliance through a new form of enforcement, and, second, for discussion of the complications, and advisability, of taking a small program "to scale." HKS Case Number 1372.0
In 1996, Sri Lanka had a mixed public and private bus system, with about one-third of passengers carried by public companies and two-thirds by private. The private buses were not earning enough from passenger fees to replace their buses and as a result there were many complaints of overcrowding and safety problems. The public buses were making do largely because they received free buses from the government. Improving bus service was critical for the country since approximately 80 percent of motorized passenger trips are carried by buses. The government was considering a variety of reforms including fare increases and consolidation of small public and private operators. This case can be used to discuss the politics and rationale for regulation and privatization. And the case describes a 90 year history privatizing, nationalizing, and re-privatizing the bus industry. HKS Case Number 1377.0.
At a time, in the early 1980s, when Peru is wracked by leftist terrorism and hampered by weak central government, the Foundation for the Protection of the Environment (FPCN), founded by a group of Peru's leading biologists, becomes a vehicle through which international environmental organizations act to protect the diverse and unspoiled world of Peruvian Amazonia. FPCN convinces a government troubled by more immediate threats that this non-governmental organization should effectively take on the management of many of the country's more than 40 protected areas. But when a new Peruvian government, led by President Alberto Fujimori, makes clear that it wants to take back such traditional public roles, FPCN must find a new role for itself. Its task is complicated by a lack of overhead funds from its donors which has led to a substantial deficit. Its leadership examines its board structure and membership as part of the strategic planning which it undertakes. HKS Case Number 1375.0
This transport privatization case describes the political complications that can accompany a privately-funded infrastructure project. The case tells the story of a Japanese construction firm and its relationship with the government of Thailand. The firm, Kumagai Gumi, is invited to build US$1 billion, 20-kilometer expressway in Bangkok, and to operate it as a toll road, under a 30-year concession contract. But a 1995 contract dispute prompts the Thai government to force Kumagai Gum first to open the road but then to sell it to Thai investors. The case allows for discussion of both a technical and political nature, focusing on the details of the contracting arrangement but also raising the question of domestic political dimensions in public projects involving non-domestic private investors. HKS Case Number 1401.0
At a time, in the early 1980s, when Peru is wracked by leftist terrorism and hampered by weak central government, the Foundation for the Protection of the Environment (FPCN), founded by a group of Peru's leading biologists, becomes a vehicle through which international environmental organizations act to protect the diverse and unspoiled world of Peruvian Amazonia. FPCN convinces a government troubled by more immediate threats that this non-governmental organization should effectively take on the management of many of the country's more than 40 protected areas. But when a new Peruvian government, led by President Alberto Fujimori, makes clear that it wants to take back such traditional public roles, FPCN must find a new role for itself. Its task is complicated by a lack of overhead funds from its donors which has led to a substantial deficit. Its leadership examines its board structure and membership as part of the strategic planning which it undertakes. HKS Case Number 1376.0
Innovation and the management of intellectual capital are playing an increasingly important role in competition in high-technology industries. To operate in markets where innovation is cumulative, such as in electronics and semiconductors, firms frequently need to engage in extensive licensing and cross-licensing. This need is amplified by recent increases in the strength of patent protection and by the more active licensing stance of intellectual property owners. A high-quality patent portfolio not only reflects the firm's inventive capacity, but may significantly increase its cross-licensing bargaining ability and reduce royalty payments. In addition, it may directly contribute to its product and process innovation.
The conventional wisdom is that companies should never outsource core functions. This study of 34 large companies that outsourced for at least two years demonstrates that outsourcing can be successful even when information systems are viewed as core functions. However, outsourcing negotiations must reflect the role of the company performing the outsourced functions and the nature of the outsourced work. A critical key to success in outsourcing arrangements lies in having tight contracts, even when the outsourcing vendor is viewed as a strategic partner or the IS function is considered to be core. This article offers prescriptions for writing contracts and creating balanced arrangements to enhance outsourcing success.
The Challenger disaster cannot be accounted for by reductionist explanations that direct attention only toward individual actors, nor by theories that focus solely on communication failure or the social psychological dynamics of the infamous eve-of-launch teleconference. The cause of the tragedy was rooted in historic organizational and environmental contingencies that preceded the launch decision. By tracing the connection between top policy decisions and decisions by engineers and managers assigned to do risky work, this analysis contradicts conventional understandings about what happened at NASA. As a consequence, this case contains new lessons for both managers and students of organizations.
An integrated strategy captures the synergies between competitive strategies that seek superior performance in the marketplace and nonmarket strategies that shape the competitive environment. This article extends the conceptual and analytical foundations of integrated strategy to a competitive environment structured by international trade policy. The framework is illustrated by the international trade dispute between the Eastman Kodak Co. and Fuji Photo Film Co. regarding access to the Japanese market for consumer film and photographic paper. The analysis focuses on the synergies between market and nonmarket strategies in which governments act as agents of their companies. The framework incorporates competition between the two companies in their market environment, competition in the nonmarket environment to influence their government's bargaining position, and bargaining between the governments.
This case deals with the possible acquisition of MCA, the entertainment company, by the Seagram Company Ltd. (Seagram). MCA was owned by Matsushita Electric Industrial Company Ltd. (Matsushita). In early March 1995, Edgar Bronfman Jr., the 39-year-old president and chief executive of Seagram Company Ltd. (Seagram), has just concluded a round of meetings with the senior management team of Matsushita. Matsushita, the largest consumer electric products manufacturer in the world, acquired MCA in 1990 for $6.59 billion. Matsushita was clearly interested in selling a portion or possibly all of MCA.
Describes Intel's Hood River project, a new business venture within Intel which sought to establish a market presence for the PC in the living room. Describes the actions of people at different levels in the organization, including the project leader, his direct managers, and Intel's senior management. It describes how the venture was initiated, how funding was won, and how the organization was structured to pursue the opportunity. Also describes the many challenges faced by the Hood River team, which included: defining a new market, establishing and cultivating partners, competing for limited funding resources, competing for limited organization (people) resources, and aligning the objectives of the project with the strategy of the corporation.
Global Financial, a subsidiary of a major heavy equipment manufacturer, makes loans to customers for purchases of the parent company equipment. Global Financial's loan application process is the major subject of this case. Customers are unhappy with the slowness of the process, and a major competitor promises to process loans much faster. The details of the processing system, including historical data, are included. This allows examination of bottlenecks in the system, and suggestions for possible system design changes.
Focuses on entrepreneurship--both in setting up a new business and in keeping the entrepreneurial spirit alive in large, established organizations--and on internationalization. Describes how toy manufacturer Hasbro receives a proposal from an American entrepreneur specializing in plastic injection molding for a new toy. Describes the proposal, the toy industry, and Hasbro itself. Should Hasbro accept the proposal for the new toy? Also, how can large companies stay open to ideas coming from the outside?
First Direct has become the model of tele-banking worldwide, despite similar initiatives undertaken by large international banks. The case describes the history of First Direct and the various components of its operations, especially around the central issue of relationship marketing at a distance.
In the late 1970s, Motorola CEO Bob Galvin knew that the electronics industry was growing increasingly competitive. Though Motorola was faring well in the battle, technology was sprinting ahead. In fact, most technical knowledge was obsolete within a five-year time frame. In an attempt to embrace the change, Galvin proposed to his board of directors an extraordinary commitment to the training of Motorola's entire workforce--from executives to shop floor employees. He was met with strong resistance, however, due to the time and financial resources such training would require. Galvin was faced with a dilemma: If he accepted the board's counsel, the company might fall behind as the velocity of technological change increased; if he pushed for the investment in training, he might jeopardize short-term performance and competitive position.
In the early 1990s, Donna Klein, Director of Work/Life programs for Marriott International, surveyed hotel and resort managers and found they increasingly were relied upon to help employees cope with the stresses of their personal lives. Immigration, child custody, spousal abuse--numerous personal issues were requiring up to 50% of managers' time and fueling extremely high turnover among the company's over 100,000 lower-wage workers. Although Marriott offered a traditional dependent care resource and referral service, Klein realized that this service was not particularly useful or appropriate for hourly workers. She understood that hourly employees needed help finding cost-effective ways to solve their personal problems and more one-on-one consultation to help them tap into their local resources. Shocked by the survey results, senior management asked Klein and her associates to devise a solution to address the problem.
McKay Nursery Co., founded in 1897 in Waterloo, Wisconsin, had a longstanding history of commitment to employees. The close-knit organization was a pioneer in the agricultural industry of several employee-friendly policies. But in the early 1980s, as McKay's owners grew older and senior management neared retirement, the next generation of managers feared for the future of the profitable, debt-free company. Middle manager Griff Mason and his colleagues were concerned McKay might become the target of a hostile takeover, which would move the company out of the community that had supported it for nearly a century. They wondered what they might do to keep the company in Waterloo and continue to retain its employees, nearly half of whom were migrant workers.