Collaboration between competitors is in fashion. But the rise of competitive collaboration has triggered unease about its long-term effects. Companies that benefit most from competitive collaboration never forget that their partners may be out to disarm them. They know that harmony is not the most important measure of success; indeed, occasional conflict may be the best evidence of mutually beneficial collaboration. Successful companies also guard against competitive compromise by informing employees at all levels what skills and technologies are off-limits to the partner. Finally, they learn from their partners, viewing each alliance as a window on their partners' broad capabilities.
Forward-looking companies, installing marketing and sales productivity (MSP) systems, are seeing increases of up to 30% in sales and sales force productivity. MSP systems automate routine tasks and gather and interpret data that was either scattered or uncollected before. They not only upgrade sales and marketing efficiency but also improve the timeliness and quality of executives' decision making. Viewed as a corporate strategic investment, companies can exploit the synergies possible from linkages with other parts of the organization.
Too many managers do not understand what it is that makes experts so valuable to their organizations. Experts combine analytical reasoning with intuitive judgment, sharpened by long experience. The result is problem-solving ability that cannot be taught or easily learned. Few organizations are structured to recognize the worth of experts financially or through advancement. Companies should make room in the reward system for honoring expertise.
Women managers cost more to employ than men. Turnover is higher, and they are more apt to plateau or to interrupt their careers. Career primary women are effective managers and serve as beacons for younger women. Career-and-family women are willing to trade ambition for the flexibility to raise their families; their willingness to forgo advancement but still give their best can greatly upgrade middle management. Opportunity, flexibility, and family support are the keys to retaining the best women and eliminating the extra cost of employing them. McKinsey Award Winner.
Startup companies face a difficult tension: they need the best managers, but they lack the resources or financial stability to match the compensation and benefits these managers can get elsewhere. Evaluate compensation and benefits choices from four perspectives. How do they affect cash flow? What are the tax implications? What is the accounting impact? What is the competition doing?
In 1988 Playto Industries' Teach-Her doll, the company's first new product since Jim Clayton became president, was a winner in the East. Clayton planned to take Teach-Her national and to introduce another toy, Playto's Labs. But he needed $30 million--almost as much as the company's existing capitalization--to grow. Monument National Bank would lend no more than $20 million. The best option seemed to be subordinated bonds. Rates were high, but if Playto made the bonds convertible, rates fell from 12.5% to a more manageable 8.75%. Now Clayton has a knot in his stomach: interest coverage might drop to half of that in 1988, a competitor might imitate Teach-Her, Playto's Labs might flop--the company could end up in serious trouble. Five finance experts discuss the case.
The microwave oven was invented in the United States 40 years ago, but it is a Korean company that now produces the most ovens. Samsung's story is told in this article adapted from The Silent War: the Global Battles Shaping America's Future, and it's a lesson on how companies in developing countries are becoming world-class competitors. Dedicated people, company policy that encourages investment in minds as well as technology, and timely opportunity all helped Samsung's rise.
Valley Farms International (VFI) describes some of the problems and issues involved in selling and exporting dairy cattle to a middle-east country. The decision that John Roberts of VFI must make is whether or not to employ the services of a middleman in that country, a practice which is against the law of that country. This case is the first in a series of cases, Valley Farms International (A) through Valley Farms International (F).
The partner describes some of the problems and issues involved in selling and exporting dairy cattle to a middle-east country. He must decide whether or not to employ the services of a middleman in that country, a practice which is against the law of that country. The case describes John Roberts' decision on the issue in the Valley Farms International (A) case. This is the second in a series of cases, Valley Farms International (A) through Valley Farms International (F).
The partner continues to export cattle to a middle-eastern country but must decide whether to give in to the demands of an airline crew. They are demanding a cash payment as danger pay in order to take off with the load of cattle, however, this payment is outside the terms of the contract. This case is the third in a series of cases, Valley Farms International (A) through Valley Farms International (F).
Valley Farms International continues to export cattle to a middle-eastern country. This case describes some of the issues and problems associated with negotiating the contract, transportation and financing arrangements. The decision facing John Roberts in this case is whether to give in to the demands of an airline crew who are demanding a cash payment as danger pay in order to take off with the load of cattle. This payment is outside the terms of the contract. This case describes John Roberts' decision on the issue in Valley Farms International (C). This is the fourth in a series of cases, Valley Farms International (A) through Valley Farms International (F).
The partner continues to face and solve problems regarding the transportation of exported cattle. The cattle inspectors from the middle-eastern country have been called home and the cattle are on a ship at sea. The inspectors left, however, without signing all the necessary documents, however, the partner has their signatures on some blank forms. Should he use these in order to collect on the letter of credit? This is the fifth case in a series of cases, Valley Farms International (A) through Valley Farms International (F).
The partner continues to export cattle and to face and solve problems regarding transportation. The cattle inspectors from the middle-eastern country have been called home and the cattle are on a ship at sea. The inspectors left without signing all the necessary documents, however, he has their signatures on some blank forms. Should he use these in order to collect on the letter of credit? The case describes John Roberts' decision on the issue in Valley Farms International (E). This is the sixth in a series of cases, Valley Farms International (A) through Valley Farms International (F).
Lisa's Waterbed Emporium Inc. is a mini case requiring completion of an income statement, statement of retained earnings and a balance sheet. The case tests the students' knowledge of these three statements as well as the individual accounts.
The manager of human resources wonders what disciplinary actions he should recommend to the vice-president of human resources in a case of assault. He learns that a maintenance technician assaulted a fellow technician and the situation is complicated by the fact that the assailant is a mentally challenged employee. The conflict arose as the result of a misunderstanding. Subsequently, the assailant's actions stunned his co-workers as well as the human resources manager.
Focuses on the decision Intel's top management faces at the end of 1984 of whether to exit the DRAM (dynamic random access memory) business. Discusses the evolution of Intel's distinctive technological competencies and of the critical linkages between its corporate, technology, marketing, and manufacturing strategies. Examines the effect of apparent industry structural changes on the relative importance of different technological competencies and the linkages between corporate, technology, marketing, and manufacturing strategies. Intel was the first successful mover with DRAM products, yet it finds itself with an inconsequential market share at the end of 1984. While the organization still believes that DRAMs are critical both from market and technology viewpoints, DRAMs have actually played a minor role in Intel's product mix in the past five years. Logic products based on microprocessor technology have replaced memory products as Intel's core business. Leads to discussions about the implications of organizational beliefs on technology and manufacturing strategy and top management's role in evaluating those beliefs during changing times.
Major government-funded public works projects are often touted both for the needs they will fulfill and the jobs they will provide. This case examines the assumptions underlying San Antonio Mayor Henry Cisneros' push for publicly financed construction of a domed sports stadium. HKS Case Number 896.0
Economic Analysis Version of case HKS257 (896.0). Major government-funded public works projects are often touted both for the needs they will fulfill and the jobs they will provide. This case examines the assumptions underlying San Antonio Mayor Henry Cisneros' push for publicly financed construction of a domed sports stadium. HKS Case Number 896.3
In April 1983, the City and County of San Francisco and two irrigation districts in Merced and Stanislaus counties commissioned a feasibility study of their long-standing proposal to dam the Tuolumne River for power and water. At the same time, a coalition of environmentalists, rafters, fishing enthusiasts and California residents known as the Tuolumne River Preservation Trust was lobbying Congress to protect the river from further development under the federal Wild and Scenic Rivers Act. The dam proponents had already produced several favorable cost-benefit studies of their proposal; in June 1983, the Trust asked economists at the Environmental Defense Fund to respond to those studies with an economic assessment of the proposed dam's environmental costs.This case is intended to provoke a discussion of how to place an economic value on environmental benefits that are seemingly intangible. The case calls particular attention to the measurement of user benefits, and the special problem of calculating the value placed by non-users on the sheer existence of an environmental asset ("existence value") and the option to use it someday ("option value"). Also relevant is the problem of discounting over the life of a long-term project. HKS Case Number 701.0.