This is an MIT Sloan Management Review article. Conventional approaches to decision making focus on generating and evaluating alternatives. According to the author, however, alternatives are relevant only as means to achieve values. Values, not alternatives, should be the primary focus of decision making. Describes "value-focused thinking," which involves clearly defining and structuring your fundamental values in terms of objectives and using these objectives to guide and integrate decision making. Presents techniques for creating better alternatives for your decision problems and for identifying more appealing decision opportunities than those that confront you. Relevant both to organizational and personal decisions, these ideas are illustrated by their application at Conflict Management, Inc.
This is an MIT Sloan Management Review article. By strategically outsourcing and emphasizing a company's core competencies, managers can leverage their firms' skills and resources for increased competitiveness. The authors suggest ways to determine what those core competencies are and which activities are better performed externally. They assess the relative costs and risks of "making" or "buying" and present methods for containing risks while enjoying the benefits of their dual approach.
Martha Radosevich, president of Health Payment Review, a small software start-up, confronts a serious cash-flow problem: Health Payment Review has built a PC-based prototype but has run out of funds to build a commercially acceptable mainframe product. As a stop-gap measure to generate cash, Marcia tries to sell the PC prototype but encounters resistance from conservative buyers. Teaching Purpose: To highlight the challenges of selling and negotiation faced by entrepreneurs, and to help students develop their skills in this area.
Chandler, a large U.S. consumer products firm, is rationalizing its European operations. Tony Pesci, protagonist, is deciding which plants to close for maximum efficiency. The manufacturing/marketing relationship is strained as efficiency is being weighed against cross-cultural marketing.
Xerox Corp. is on the verge of launching a new line of photocopiers made largely from refurbished or recycled parts. In spite of this reclaimed content, the company intends to position the machines as "new." The move is a response to growing environmental pressures in Western Europe and throughout the world. The challenge is how to bring the new line to market, especially with respect to pricing and promotion.
Swissair established two alliance networks in 1989 in order to improve its competitiveness. In order to evaluate the benefits of the alliances, Swissair's history, products, and cost structure are described, as is the international airline industry and the major players. The challenge for Swissair is how to gain further economies of scale in an increasingly competitive global marketplace. A rewritten version of an earlier case.
Updates the company's progress in increasing cooperation with its partners in the European Quality Alliance and Global Excellence Alliance. A rewritten version of an earlier supplement.
Cunard, the world's oldest luxury line company, is confronted with several key issues involving its marketing and marketing communications strategy. One concerns the balance between image/positioning advertising and short-term-oriented promotional advertising/communications on behalf of each individual Cunard ship (i.e., "pull" vs. "push" communications). Related to this is the overall mix of marketing communications tools used by Cunard--media advertising, direct marketing, etc. Another issue is the emphasis in marketing communications between focus on the Cunard corporate identity and focus on the identity of the individual ships. The organizational setting is one of integrating marketing communications for the company and its products. Impacting consideration of the issues is a period of economic conditions adversely affecting sales, along with the effects of the U.S.-Iraq conflict on consumer leisure travel.
Because of the regulatory environment in the railroad industry, J&L Railroad's profitability is dependent upon the price of diesel fuel. In this case, the student must decide how much of next year's expected fuel demand should be hedged and how it should be hedged. Hedging alternatives include exchange-traded futures and options as well as commodity swaps, collars, and corridors offered by Continental Bank's Risk Management Group.
A group of Lotus employees propose extending all health care and other benefits to the spousal equivalents of lesbian and gay employees. The vice president of human resources considers the proposal during a reorganization and period of financial uncertainty.
Over seven years, the owner of a highly successful drive-through, take-out hamburger chain has built his business and knew that there was a tremendous potential for the idea. He was unsure whether to expand by opening additional company-operated stores (using retained earnings), or by establishing a franchise system. Two Excel spreadsheets are available; one for the student, product 7A94B008 and one for the instructor, product 5A94B08.
An entrepreneurial university student found himself contemplating several decisions that could drastically alter the operations of his summer business distributing household paper products and cleaning supplies in Montreal. These decisions included three ways to expand (enlarge the salesforce, target a new market and pursue a franchise program), and three ways to change the nature of the venture (launch an environmental line, distribute non-perishable foods and reduce delivery quantities). Underlying all of these was the possibility of selling the business and pursuing an opportunity with a multi-national corporation. Students have to evaluate the current strategy and operations and assess the viability of the proposed alternatives.