Mueller Chemical Company's biggest customer, Ameriton, demanded that MCC install a total quality management system five years ago. Now, in this fictional case study, Ameriton has gone bankrupt. As a result, MCC has had to cut its work force, and senior managers are meeting to decide whether TQM should be part of the downsized MCC. The division is more cost-efficient, product defects are nearly nonexistent, and its safety record is spotless. Ameriton's failure is no reason to abandon all that MCC has built. Furthermore, shareholders and customers would think that MCC was panicking. But, does MCC have the time or resources to tailor TQM to a smaller organization? Seven experts in TQM and organizational change consider whether TQM has a place in MCC's restructuring.
The more business ethics secures its status in campuses across the country, the more bewildering it appears to actual managers. It's not that managers dislike the idea of doing the right thing. As the author argues, far too many business ethicists just haven't offered them the practical advice they need. After some initial stumbles, however, ethicists have begun to get their hands dirty and seriously consider the costs of doing the right thing. Finally, a new business ethics is emerging that acknowledges and accepts the messy world of mixed motives. As a result, novel concepts are springing up: moderation, pragmatism, and minimalism, among others. In each case, the practical analyses offered are not as important as the commitment to converse with real managers in a language relevant to the world they inhabit and the problems they face.
MathSoft's VP of sales has doubled the size of the company's direct field sales force to support the launch of a new, high-end workstation software product priced at almost $9,000. However, sales of the new product are far below plan. At the same time, the VP of marketing is calling for increased magazine advertising to support sales of the company's $349 personal computer software product, which has been marketed through a combination of distributors, retailers, telephone sales, and direct mail. The president of this entrepreneurial company must determine the appropriate channel structure and communications programs for MathSoft's current product line and future growth. Illustrates the close linkages and trade-offs between industrial marketing channels and communications methods and traces the evolution of one company's hybrid marketing channels. Also introduces students to the use of advertising and direct marketing in selling complex, industrial products. For students who have had a quantitative modeling course, the case includes the output of a market response model developed from MathSoft's advertising and sales data.
Describes the president's decision regarding MathSoft's marketing channels and communications methods, and the company's sales results during the next five quarters. The (A) case market response model is also updated.
Colgate-Palmolive Co. is considering how to position its new technological toothbrush, Precision. The case explores issues concerned with new product launches and requires students to do profitability analyses of different positioning alternatives.
Describes the life and career of the first Japanese female investment banker at Nomura Securities, Sumiko Ito, who later became a partner at Alex Brown, a U.S. investment bank. Organized around the major life events and career transitions Ms. Ito experienced. Set in three distinct cultural milieus: Japan, England, and the United States. Eventually, Ms. Ito resigns from Alex Brown and starts her own investment company.
In early 1992, Lehman Brothers had received a mandate from its affiliate, American Express Travel Related Services (TRS) Co., to securitize a portion of its consumer charge-card receivables portfolio. It is now July 22, and Lehman and TRS have just returned from a "road show" that was undertaken to convince prospective investors of the merits of these new securities. Lehman must now price the securities. Because this is the first-ever securitization of charge-card receivables, there are no directly comparable benchmarks that can help in pricing. However, the securities share common features with credit-card receivables backed securities, which by now are well accepted. Another comparable is non-callable finance company debt. This deal is being watched closely by competing underwriters, investors, and senior management at TRS and Lehman. "Success" could catapult Lehman into becoming a major player in the asset-backed market whereas "failure" would be a major setback.
American Express (TRS) Co. is considering a proposal to securitize a portion of their consumer charge-card receivables portfolio. In the past, they have relied exclusively on a captive finance subsidiary, Credco, to perform this function. The proposed securitization structure has been put forth by Lehman Brothers and relies heavily on the existing structure of credit-card receivables' securitizations. The growing asset-backed securities market presents TRS an opportunity to diversify its sources of funds--however, there are reasons to be cautious. Due to recent downgrades of American Express and Credco debt, the perceived financial weakness of credit-card receivable backed securities issuers, and the proposal's sophisticated securitization structure, TRS is concerned that 1) The market may perceive securitization as a sign of weakness; 2) The securitization may not be cost effective. Therefore, TRS has to decide whether or not to proceed with securitization at this time.
Designed to generate discussion on the issues of outsourcing from the perspective of a firm thinking about turning over its IS activities to a third-party vendor.
Richard Munro, Time Inc.'s chairman and CEO, must respond to a hostile tender offer from Paramount Communications. Paramount conditioned its bid on cancellation of Time's plans to merge with Warner Communications. Several months before the hostile Paramount bid, Time had announced its plans to merge with Warner after careful consideration of a comprehensive list of possible partners, including Paramount. The Board endorsed Munro's decision to merge with Warner because the two firms held a wide range of complementary assets. If Time continued with its plans to merge with Warner, Time's shareholders would forgo at least $175 per share in cash, and possibly more. On the other hand, a merger with Paramount was not part of Time's long-term strategy. Munro must recommend a specific course of action to the Board at its emergency session. The case is written from the viewpoint of Time's managers. Should Time's managers resist the Paramount bid?
This technical note introduces (1) approaches to forecasting in general, (2) simple moving averages and exponential smoothing, (3) accounting for seasonality in forecasting, (4) accounting for trend in forecasting, and (5) implementing a forecasting model. Holt and Winter models for exponential smoothing are included.