Advertising is an investment which generates sales revenue over time. The duration and amount of the revenue depends on the loyalty of customers, the frequency of purchase and competitive products. Companies often regard advertising costs as expenses incurred in a short-term context, although advertising has a cumulative effect. The distributed lag model can measure this cumulative effect. This method, based on an analysis of a company's past performance, can forecast advertising induced sales.
The structure and management of manufacturing should reinforce corporate priorities. The company's "manufacturing mission" is to help the company do what it wants to without wasting resources in lesser efforts. Any shift in corporate strategy usually requires changes in both the infrastructure and facilities of manufacturing. Approaches to the design of an appropriate manufacturing system range from a "product-focused" to a "process-focused" organization. While simplicity of organizational design is important, both can be allowed to operate in the same company if the operations are separated to avoid cross purposes. The proper choice between these organizational types smoothes a company's growth by lending stability to its operations.
Presents a discussion of earnings quality --characteristics, relationship to earnings multiple, application and measurement, volatility and risk, as they affect earnings quality.
To employ logistics as an effective competitive lever, management should adapt logistics programs to support ongoing corporate strategies in the short-term and factor logistics into the design of business operating strategies on a continuing long-term basis. Steps necessary for factoring logistics into strategy include the performance of a logistics strategy audit, possible logistics systems redesign, and the maintenance of procedures to ensure continued attention to logistics as an integral part of corporate strategy.
U.S. companies confuse marketing effectiveness with sales effectiveness. Executives determine whether an organization understands and practices marketing by conducting a marketing effectiveness audit. The audit rates marketing effectiveness in each of five major functions: customer philosophy, integrated marketing organization, adequate marketing information, strategic orientation, and operational efficiency. The resulting score tells where the organization falls on a scale ranging from no marketing effectiveness to superior effectiveness.
An analysis of the activities of key managers in 31 case studies suggests that managers who consistently accomplish a lot are notably inconsistent in their manner of attacking problems. These high achievers persist, however, in careful situational analysis and self-discipline, which permits them to be inconsistent in personal and managerial style. They consider operating skills and strategies flexible and adjust these to changing circumstances. They recognize classical patterns of problems and solutions and are able to choose discriminatingly among the wide variety of action-techniques available.
The first case in a four-part case series which outlines the events leading up to a performance appraisal interview. Describes the background of the company.
Illustrates several types of marketing problems that may be approached using break-even analysis. Should be used as supplemental information, helpful in handling case problems.
Describes the events leading up to an actual performance appraisal interview--the views, opinions, and attitudes of the subordinates who are to be interviewed.
Outlines events leading up to a meeting of a six-person task force which has been assigned to reduce overhead costs at a major manufacturing company. History of the company, and backgrounds of all the task force members are presented. Raises the following questions and issues for students to deal with: 1) What strategy should the task force leader take to organize the task force and accomplish its goals within the two week period? 2) What division of the labor, if any, is appropriate? 3) What should his purpose and agenda be for the first meeting? 4) Given the information in the case, what problems should be anticipated in terms of interdepartmental conflict and members' hidden agendas? 5) What should he do to deal with these problems?
Organizational learning is a process of detecting and correcting errors. Single loop learning is a process in which organizations are able to correct matters in order to achieve stated objectives. In double loop learning, problems are examined and corrected even though correction requires challenge to underlying policies and objectives. When policy or objectives are not questioned, organizational behavior may camouflage errors. Organizational games and norms prevent people from speaking out.