A series on implementing strategy as the head of the U.S. subsidiary of a successful Swiss medical products firm. Traces the actions of the CEO over a four year period and highlights his negotiations with the Swiss parent and the way functional components of the strategy were developed and integrated. Describes Hans Wyss' first eight months as CEO of Orthoteks USA.
Describes the international oil tanker shipping industry both historically and in 1983. Designed to provide a vehicle for practicing industry analysis in a volatile commodity business, and for formulating strategy in such an environment. Also can be used to examine industry capacity overexpansion and vertical integration policies of oil companies who own some but not all of the ships they use to transport their oil.
A consulting project involving a mathematical model of the sales force indicates that Syntex Labs should nearly double the size of their sales force and drastically alter their allocation of sales effort to the product line and physician specialties. The questions are whether the results are reliable and what action should be taken.
The recommendations of the consultants require a number of assumptions and modifications to be implemented by Syntex Labs. Presents the initial implementation plan of the company.
A multi-year study of production operations of virtually all the producers of room air conditioners in the United States and in Japan reveals a failure rate of products from the lowest quality manufacturers some 500 to 1000 times greater than that of products from the highest quality manufacturers. Quality is measured by the incidence of internal and external failures. Internal failures include all defects observed, either during fabrication or along the assembly line, before the product leaves the factory. External failures include all problems incurred in the field after the unit has been installed. Measured by either criterion, Japanese companies were far superior to the U.S. counterparts.
Management has the power and the responsibility to achieve a high-quality product by improving the manufacturing process. Managers can distinguish between normal and abnormal variation statistically by constructing a control chart that shows the process average and the upper and lower control limits. Top management should stop expecting inspection to solve the quality problem; stop awarding business to the lowest bidder; eliminate targets, numerical goals, slogans, and posters that urge people who lack the power to make changes to increase productivity; eliminate work quotas; and institute training programs in statistics for managers and supervisors.
The theory that success is commensurate with effort is an enduring belief in our society. So is the idea that hard work builds character. What becomes of men and women in large corporations in which success is not necessarily connected with hard work? Interviews with managers and executives in several big companies reveal that bureaucracy, the prevailing organizational form of our society and economy, breaks apart the old connection between work and salvation and erodes all standards of morality except its own. McKinsey Award Winner.
Threats of resource depletion and raw materials scarcity, political turbulence and government intervention in supply markets, intensified competition, and accelerating technological change can upset supply and demand patterns suddenly. Companies must shift their perspective from purchasing (an operating function) to supply management (a strategic one) to ensure continued supply of materials. Companies must integrate purchasing with other elements of the business system.
Buyers no longer purchase products and services but sets of expectations. Thus, the relationship between buyer and seller often intensifies when the sale is made. How selling companies manage buyer-seller relationships increasingly affects their reputations and repeat sales. The seller can maintain a healthy relationship with the buyer after the purchase by regularly considering whether the relationship has been improving or deteriorating. To effectively manage relationships, managers must understand both the problems and the opportunities.
Under some circumstances, the informal, unwritten plans of an owner-CEO are appropriate for a business. Under others, the formal, written plans of a CEO and board are what a company needs to operate well. But sometimes neither the minimal nor the full-blown approach to planning works. They may even be harmful. A company can decide whether one of these approaches is appropriate for itself by looking at nine variables: the administrative style and ability of its CEO, the ability of its officers, the complexity of the business, the strength of its competition, the gain that its managers expect planning to bring, the leadership of its CEO, the degree of uncertainty the company faces, how well its managers understand formal planning, and how well it is currently planning its actions.
In May 1983 Ms. Katherine O'Brien, vice president of marketing, was deciding whether Jamestown should discontinue the use of independent representatives in favor of a direct company salesforce. Jamestown sold informal stoneware dinnerware through department and gift stores. A rewritten version of an earlier case.
Describes the history of Honda Motor Company from its beginning through its entry into and subsequent dominance of the U.S. market. The history is explained primarily in terms of strategic factors and quoted from two sources: an earlier case and Boston Consulting Group report on the motorcycle industry. Should be used with Honda (B).
Describes the history of Honda Motor Company from its beginning through its entry into and subsequent dominance of the U.S. market as seen through the eyes of Honda executives. The history of Honda's successful entry into the U.S. market is viewed as highly adaptive and fraught with error and serendipity. Honda (A) and (B) are designed to be used together to contrast two differing views of major events in a company's history, both of which are important for a general manager to understand.