A few years ago, Northern Telecom, Inc. (NTI) set up a council of division heads and headquarters managers to devise a manufacturing plan for the 1990s. It began by listing things NTI had to do--surprisingly, all items had to do with meeting customer needs faster. New pay incentives, profit-and-loss statements, and training sessions supported the new direction. NTI's experience shows that time-based strategy is achievable and rewarding; the receiving cycle is shorter, inventories and defects are down, and customer satisfaction is fast approaching the 1990 goal.
Growing a global organization is like growing a garden: there must be a proper fit between organization and environment. Achieving that fit means starting by decomposing the corporate center. Global companies need several regional headquarters. They must also make sure their far-flung managers have a shared identity, which comes from instilling a shared set of values. Global competitors invest in markets for the long haul. The shortsightedness of governments or the short-term setbacks of a downturn shouldn't prevent a company from considering the whole world a garden, ready for cultivation.
Successful general managers stress fundamentals. Whatever their leadership style, they invariably focus their efforts on the six tasks that lay the foundation for effective performance: shaping the work environment, setting strategy, allocating resources, developing managers, building the organization, and overseeing operations. Together these tasks are the key to setting priorities and making the right things happen.
The notion of "corporate culture" has received widespread attention in the past several years. But what is meant by the term and why should managers be concerned with it? Culture can be thought of as a mechanism for social control. As such, culture is important for both the implementation of strategy and as a mechanism for generating commitment among organizational members. Based on a comparison of strong culture organizations, ranging from cults and religious organizations to strong culture firms, this article argues that culture and commitment result from: systems of participation that rely on processes of incremental commitment; management as symbolic action that helps employees interpret their reasons for working; strong and consistent cues from fellow workers that focus attention and shape attitudes and behavior; and comprehensive reward systems that use recognition and approval. These techniques characterize "strong culture" organizations.
Rossin Greenberg Seronick & Hill (RGSH), a New England advertising agency, was keen to secure the account of Microsoft Corp. The case describes the bid for the account, which included the submission of a "flier" referring to knowledge of a competitor's plans, as a result of hiring two new creative people who had worked on the account of Lotus Development Corp. at another agency. Teaching objectives: 1) to examine how agencies bid for advertising accounts, 2) to consider how companies review agencies, and 3) to show how aggressive marketing may lead to allegations of misconduct.
Teaching objectives: 1) to show how aggressive marketing can lead to allegations of misconduct, 2) to consider responses under crisis management, and 3) to explore the importance of credibility within marketing communications.
Teaching objectives: 1) to consider legal and other obligations advertising agencies owe to their clients, 2) to show how aggressive marketing can lead to allegations of misconduct, 3) to explore conflicts of interest which may arise for professional service companies in marketing their expertise to more than one company within another industry, and 4) to consider the responsibilities of a corporation taking legal action against another.
Illustrates the difficulty of effective production planning and production control in a multistage production process affected by seasonal demand. A rewritten version of an earlier case by S.C. Wheelwright.
The Fairfield Inn, an economy hotel venture by the Marriott Corp., has developed a novel method for selecting and measuring the performance of its hotel personnel that fits the company's strategy. Because it faces the need to grow rapidly, questions have arisen as to whether to offer franchises and in what form, considering the need to protect its unique concept.
A start-up video rental business is described to provide a basis for a bookkeeping and financial reporting exercise for an accounting course. Both start-up and operating transactions are included along with situations requiring judgments about depreciation policies and end-of-period adjustments.
Describes the means by which management has empowered the sales clerks and part time employees of this chain of 131 department stores. They are responsible for all sales and inventory management. This empowerment has led to fewer stockouts, higher sales, lower inventory levels, less inventory loss, higher profits, higher quality, and higher commitment levels on the part of employees. Also describes how their innovative management has overcome inefficiencies in the Japanese distribution system.
The leading manufacturer of motors in Canada is threatened by a loss of market share in oilfield pumping motors because a major customer, having tested several competing motor brands, finds a competitor's motor to be superior. A central issue is whether to make a special purpose motor for this market, reduce the price on the current design, or contest the test results. A rewritten version of an earlier case, no longer available, by the same author.
James Clabough, marketing vice president at Ingersoll-Rand, has to decide on the distribution policy for a new product. The decision has marketing as well as organizational ramifications.
Peter Baldwin takes over Clabough's job and is charged with the responsibility to improve sales force morale, control expenses, and improve market share.
Outlines the differences between convergent change, which is a process of incremental innovation and continuous improvement, and divergent change, which involves revolutionary changes. Discusses how to manage each type of change and the consequences associated with each. Organizational evolution typically involves longer periods of convergent change that are punctuated by short periods of divergent change in which managers realign the firm and react to external opportunities and challenges.
Jacobs Suchard, the Swiss-based coffee and chocolate producer, is preparing for the common market and EEC 1992. At the time of the case, the company is still organized toward independent, local country markets, and believes it must move toward a more global organization structure. The case covers actions taken to date and plans for the future.
The student must determine the financing requirements posed by growth, change of inventory policy, and introduction of new product and then select the best method of financing them. Has been used as a four-hour exam. A revised and updated version of an earlier case by L.E. Thompson and V.L. Andrews.