In 1961, Richard Salomon, the sole owner of Charles of the Ritz, decided to issue public shares in his company. The perceived advantages were the possibility of diversification, establishment of value for estate and inheritance taxes, availability of equity, personal satisfaction, liquidity, and the ability to retain control of the business. When the shares were offered, disadvantages became apparent. Closely knit executives began jockeying for positions and personal relations became strained. Short-term results became a priority over long-range planning. Stockholders were primarily interested in share value, expressing opposition to ventures that jeopardized short-term profit for the sake of long-term growth.
Every manufacturing company experiences conflict, often internecine, between its marketing and manufacturing functions. There is a strong likelihood of conflict in managing the marketing/manufacturing interface in eight areas: capacity planning and long-range sales forecasting; production scheduling and short-range sales forecasting; delivery and physical distribution; quality assurance; breadth of product line; cost control; new product introduction; and adjunct services.
Describes the technical, economic, and competitive trends in the metal container industry. The strategy of Crown Cork and Seal is then described in relation to these trends. Focuses on two immediate threats to Crown's strategy: the future of aerosol cans, given the ozone problem; and the impact of the banning of nonreturnable containers.
Minimal background to permit interpretation of positive or negative balances in the key summary accounts of a balance of payments statement; also to permit relating these balances and relevant supporting detail to a possible national development strategy. Designed for use with Foreign Investment in Canada (A).
An "in-basket" decision-making exercise in case form, to be used with Nuclear Tube Assembly Room (A) (Condensed). The purpose is to pose students with several related problems which require immediate analysis arriving at some decisions and planning how to implement those decisions. Includes two exhibits: 1) a process engineering proposal recommending several changes to an assembly operation; and 2) a personal note describing a conflict which has erupted between the general foreman and a process engineer regarding the proposal. Students are expected to appraise the likely consequences of the proposed changes on the department's social system, productivity, and satisfaction; and determine which of the changes are essential, which will have negative effects, and how to implement those changes which are desirable. The student is also posed with the problem of diagnosing and successfully intervening in the conflict between the two key actors. Material is relevant to the topics of group behavior, interdepartmental conflict, interpersonal conflict, and action planning and implementation.
Describes several principles for improving the effectiveness of internal task forces. Suggests a number of guidelines for starting up a task force, conducting the first meeting, managing the group's activities, and completing the project.
Operational budgets usually consist of a projected income statement and a series of supporting statements, such as budgeted sales, production costs and levels, and selling expenses. Budgets play five roles. Three are major roles: planning, motivation, and evaluation. Two are minor: coordination and education. The different roles budgets play in companies prompt three conflicts: planning versus motivation, motivation versus evaluation, and planning versus evaluation. Managerial techniques defuse conflicts inherent in an operational budget's major roles. Six techniques used to reduce the three areas of conflict are: general managers' judgment, a tight-ship policy, contingency planning, differentiation among the levels of the organization as to where managers will be evaluated on the basis of revised or ex post facto budgets, rolling budgets, and regular submission of revised forecasts.
The talent for making good use of professional advisors ranks as one of the most necessary skills for an executive. Certain types of client attitude and behavior lead to success while other behaviors lead to failure. Twenty-five rules for the successful use of professional consultants and advisors examine the problems of hiring and fees, and the common grievances of consultants and clients. Advisors and clients both commit a set of "seven deadly sins" which need to be eliminated as soon as they occur.
In today's large and complex organizations, the effective performance of most managerial jobs requires one to be skilled at the acquisition and use of power. It is primarily because of the dependence on others inherent in managerial jobs that the dynamics of power necessarily form an important part of a manager's processes. To help cope with dependency relationships, effective managers create, increase, or maintain different types of power over others.
Consists of three selections by the most innovative of the early American railroad managers which describe the organizational structures and control systems they created. Questions to be asked are: why and how such managerial techniques were created, how well they worked, and how they differ from present-day techniques.
Focuses on two issues: 1) technical systems that can be employed in nonprofit organizations for control and motivational purposes. Systems discussed range from payroll monitoring systems to zero-base budgeting and 2) the managerial environment needed for serious control efforts to take place.
Presents the issues facing a high volume, high margin (but lightweight) medical products business. The company is trying to improve its inventory control to reduce inventory investment and improve service. The present multi-site inventory system is described and major alternatives for improving or replacing it are presented.
The case involving Universal Data Corp. illustrates transfer pricing methods employed by many companies to maximize profits. The European subsidiary of Universal Data Corp. engages in "creative transfer pricing" when it ships computer hardware from the United States and Europe to Brussels at different prices for the same machine. This procedure can cause problems with local custom authorities and create hostility toward the MNC in the host country. Four executives discuss the major issues involved in transfer pricing: 1) profit maximization versus profit satisfaction; 2) centralization versus decentralization of the subsidiary; 3) one set of books for the company versus multiple sets; and 4) the letter of the law versus its intent.
Successful strategic planning requires a thorough knowledge of operational resources. Managers can take five steps to forge effective links between a new strategy and operating plans: determine a functional overload does not exist before embarking on a new strategy; insulate portions of the business from strategic shock waves; pay personal attention to major "coupling" issues between strategy and operational planning; ensure that the strategic planning team has charted comprehensive follow-through actions; and focus on downward, not just upward, communication within the corporation.
The measure of efficiency in good business management is profit, the measure of effectiveness is market leadership. These measurements are not applicable to public organizations where an emphasis is placed on "purpose." Thus, the process of measuring good public management becomes complex, indicating not only a difference in degree between public management and corporate management, but also a difference in quality. A review of the programs of several successful public managers reveals that simple, politically acceptable goals must be set to orient the organization.
Similarities exist between the management of a film project and the management of other temporary work systems, such as technical or scientific projects, consulting teams, task forces, and other short-term task groups. Most temporary projects go through an analogous series of phases, including planning and recruiting, implementing and leading, and follow up and clean up. By examining one film director's successful approach to managing creativity, insights applicable to the business world are gained regarding the stimulation of creativity, working relationships, and leadership styles.
Marketers of industrial and consumer goods can improve the management of their complex distribution channels by using various promotional techniques known as the "promotional mix". Marketers can use sales promotion to move merchandise through the distribution pipeline by carefully organizing the channels of distribution, selling through and not to distributors and dealers, and determining product objectives. This concept has a focused scope that is highly cost-effective and applicable to a wide range of products and situations.
Describes the pricing of Deere's crawler tractors used in a variety of construction and industrial applications. Includes a strategic, multimillion-dollar move into the large bulldozer market as well as the pricing of tractors, accessories, and parts.