In late 1977, Fisher-Price was considering terminating its distribution in Belgium and Holland and establishing its own sales company. Illustrates a common problem in multinational marketing and raises issues of relative costs, motivation, and dealer relationships. In addition, there was a risk of possible liability for damages under a Belgian law governing manufacturer-distributor relationships.
An associate advertising manager at Procter & Gamble is considering several options to strengthen the company's position in the light duty liquid detergent market. One option is to introduce a fourth Procter & Gamble brand in the category. Provides substantial information on the Procter & Gamble brand management organization.
The brand assistant on H-80, a new light duty liquid detergent, has to develop a year-one national promotion plan for the new product. Illustrates one of the important tasks of a Procter & Gamble brand assistant and provides substantial information on different types of consumer promotions.
Interviews with nearly 150 executives in 13 companies show that transfer pricing schemes are a means of generating information and control for implementing corporate, business unit, and product strategy. A company's transfer pricing policy, which includes whether to source inside or out, and the way it is administered depend on the situation and the direction of the organization. Companies can be categorized into four "pure" types: competitive, cooperative, collaborative, and collective. Each type has its own set of problems and characteristics. Problems common to all types include performance problems, interpersonal disputes, power imbalances, demand fluctuations, and product pricing. Regardless of the approach used to set the transfer price, unit managers will agree to it if they feel that top management is treating them fairly.
Changes in the application of computers have altered the manufacturing process. New capabilities include flexibility in product design and mix; rapid response to changes in market demand, output rates, and equipment scheduling; greater control, accuracy, and repeatability of processes; reduced waste, lower training and maintenance costs; greater predictability in all manufacturing operations; faster throughput; and distributed processing capability. Economies of scope exist where the same equipment can produce multiple products more cheaply in combination than separately. As the economic order quantity (EOQ) approaches 1 and as making the proper trade-off between changeover costs and inventory costs becomes a trivial problem, producers will find it as economical to manufacture one unit as to manufacture many. Computer-based technology reverses the trend toward specialized hardware by placing emphasis on specialized software instead.
The retail point of purchase (POP) is the time and place at which all the elements of a sale--the consumer, the money, and the product--converge. Marketers must make the most of the communications possibilities at this point to increase their sales. By making effective displays, designing appropriate, easily identifiable packaging, making shopping exciting, and focusing in-store advertising media on the POP, marketers can address the various interests of the manufacturer, the retailer, and the consumer.
A sales task is clear if sales result from a salesperson's efforts to sell, if performance feedback is timely, and if that feedback is accurate. Management has four areas in which it must try to be clear--deployment, account management, information systems, and field sales management. The more specific the account coverage, the better. Hence, limiting the number of accounts for each salesperson is recommended. Field sales managers can use management by objectives, performance appraisal, and monthly reviews to encourage their salespeople to do their work effectively.
Business is an institution to which our society assigns a certain sphere of activity--to secure the social good of economic efficiency. The values that govern the conduct of business must be conditioned by the purpose of the business institution. Business leaders therefore have the responsibility of running their companies in such a way as to realize their most economic performance. That means taking the needs and the concepts of purpose of each of the system's members into account. It does not mean making profit the primary goal.
Designed to highlight alternative concepts of good management and the need for entrepreneurship as a response to societal changes. It argues that entrepreneurship can be fostered or destroyed as a function of the administrative setting.
Describes a conflict between the metropolitan (branch banking) and treasury groups at the bank. The issue is which group should receive the profits generated by a product involving both: Due bills. It is a form of transfer pricing problem, but in a unique (i.e., service) setting.
Mr. Joseph Lawler, newly-appointed president of Boston Whaler, Inc. (BWI), believes that better dealer management is the key to his company's continued growth. BWI manufactured a high-price, high performance line of power and other boats for the recreational, commercial, and other markets. Its 250 dealers were served by a small force of regional managers. Most dealers were not exclusively Whaler distributors, and Whaler sales ordinarily did not account for the majority of dealer revenues. Mr. Lawler wants the dealers' "commitment" to BWI increased, whether through new dealer agreements, training, minimum stocking requirements or whatever other device will help increase the importance of the BWI relationship to the dealers. Presents a relatively complete account of distribution management problems, and additionally, allows a thorough key account analysis of BWI's top 50 dealers.
A law firm must decide how to split partnership profits among the partners. Issues of seniority versus performance, performance evaluation, and lack of consensus of values dominate the discussions.
Focuses on the efforts of Heather Evans, a second-year MBA student, and her attempts to start her own dress business. Examines the business plan and the process of acquiring control over the financial and human resources necessary to implement the plan.
Dunkin' Donuts franchises and operates retail donut shops for take-home and in-shop consumption. Looks at three growth alternatives: 1) More shops (owned or franchised); 2) A broader product line; and 3) More advertising. Raises important issues related to franchise relations. A merger of Dunkin' Donuts (A) and (B).
Describes Allen Lane's search for a business to buy. The case explores several failed attempts and the ethical, business, and tax issues that surround the acquisition business. Ends with a description of a new acquisition candidate, an independent valuation report of this business, and with Allen Lane preparing his bid.
Deals with the problems of implementing strategy in a declining industry and the negotiation of strategy with external constituencies, particularly labor unions. Traces Jim Bartlett's first nine months as president and asks for a plan of action.