The world's largest manufacturer of woolen outerwear garments seeks to extend its retailing network to the United States from its base in Europe. A number of issues concerning marketing, manufacturing, and logistics strategy are raised by the proposed move along with specific questions about how the move should be managed. The case describes a well-thought-out, functionally integrated strategy for Europe in a way that allows assessment of its applicability for a proposed U.S. effort.
Professional service firms are paying an increasing amount of attention to formal marketing practices to attract clients. The professionals are being prompted by legal sanctions, an overabundance of professionals, and a declining public image. Professional service firms are inhibited from freely using traditional marketing approaches by special challenges: strict ethical and legal constraints, buyer uncertainty, and the need to be perceived as having experience.
A study of first-line supervisors' responses to employee involvement programs shows that although 72% of the supervisors saw the programs as good for the company and 60% saw them as good for employees, only 31% saw them as good for themselves. Managers should pay attention to these findings because the programs need the support of supervisors if they are to succeed. Each of five types of supervisors has its own reasons for opposing employee participation: proponents of Theory X think workers will take advantage of the programs; status seekers do not want to relinquish their authority; skeptics question the ability of the organization to change; equality seekers think they too--not just the workers--should be included in the programs; and deal makers prefer one-on-one interactions with employees through which they can strike deals.
Argues that to be effective leaders, general managers must focus on substance, not process, and aggressively combat the forces that can lead to the politicization of the organization. Examines the leader's direct role in setting and communicating goals, managing the formal systems and structures, and encouraging (rather than avoiding) constructive conflict.
Toro introduced a promotion in which purchasers of their snowthrower would receive a refund if the next winter brought only modest snowfall. The principal focus of the class is to understand what the risk implications are for the customer and for the company. May be used to discuss insurance and inventory issues.
Promotes discussion on advertising budgeting and media mix decisions in the shampoo market for low-priced, high-volume Suave. Provides various types of market research into consumer behavior and the competition context. The importance of retailers and shelf space is emphasized, and the entire marketing budget is examined.
Cray Research faces several management problems as a result of rapid growth and the need for continued growth. Issues to be discussed include 1) whether Cray should be a marketing or a technology company; 2) new and powerful competition; 3) products to offer as Cray moves out of its initial market segment; 4) growing pains (i.e., corporate culture, communications, etc.) and 5) is there "life after Seymour Cray" for Cray Research?
Intended to advance understanding of corporate responsibility in the context of a bankruptcy decision. The case documents the implementation of a turnaround plan for financially ailing Braniff International. This includes a new marketing and operations strategy, concessions from labor, changes in management, and a financial restructuring. The narrative describes the worsening financial condition of the company and the choices made by the CEO and CFO to raise cash and avoid filing. These choices and events led to progressively limited options. It was decided that attempting to reorganize under Chapter XI of the Bankruptcy Reform Act was preferable to being placed into involuntary bankruptcy under Chapter VII. This required keeping preparations secret and eventually filing by surprise.
British Airways (BA) has recently introduced a global advertising campaign. The development of the campaign and its implementation are discussed. BA and advertising agency executives must renew the campaign and resolve issues pertaining to its future direction.
Operating cash flow (OCF) is an increasingly popular measure of a company's performance, but a study of nearly 300 businesses raises doubt about its reliability as a financial indicator. The study matches 60 companies that had filed for bankruptcy between 1971 and 1982 with 230 nonbankrupt companies chosen randomly from the Compustat Industrial Tape. The study found that OCF figures (OCF, OCF/current liabilities, and OCF/total liabilities) over five years before filing for bankruptcy were poor predictors of failure.
Budgets have two primary functions: planning and control. Companies must decide which function is most important and then resolve a number of formulation issues. Most companies use budgets to evaluate, to some extent, division managers' performances and tie bonuses to the attainment of targeted goals. But while large companies concerned about operational efficiency may want to focus on the coordination and control aspects of budgeting, small and innovative companies may be more concerned with planning aspects. How well a budget succeeds depends on the management systems in place and on the way senior executives view the budgeting process.
Group technology (GT), the concept of exploiting similarities in recurring tasks and grouping like problems, is drawing increasing interest from manufacturers because of its ability to boost productivity in three ways: 1) by performing similar activities together, thereby cutting setup time; 2) by standardizing closely related activities, thereby eliminating unnecessary proliferation of similar parts; and 3) by storing and making accessible information related to recurring problems, thereby cutting time spent searching for information or solving problems.
Outdated cost accounting and management control systems are an obstacle to the lasting success of new manufacturing technologies and procedures. They distort the realities of manufacturing performance and fail to give managers the information they need to optimize the benefits of computer-aided manufacturing processes. Measurement systems for today's manufacturing operations must include such nonfinancial indicators as quality, inventory, productivity, innovation, and the morale and skills of the work force. McKinsey Award Winner.