Designed for use as an in-basket exercise in a general management course. Focuses on the first few hours work of the new president of Yellowtail Marine, Robyn Gilchrist, and the decisions she has to make. The decisions mix strategic and operations issues and make the case suitable for policy classes or small business courses.
Successful meetings begin by identifying their objectives as information-digestive, constructive-originative, or legislative. A chairperson should draw up agenda items in advance. The purpose and definition of the items should be clear, and placed in order of urgency or in suitable association with other items. The greatest single barrier to successful meetings is the chairperson's self-indulgence. A chairperson is most effective when committed only to the goals of the group, and acting as a servant rather than master of the group. The best meetings are those that have two leaders, one a social leader, the other a project or task leader.
Describes the FCC hearings which were designed to determine Comsat's cost of equity. Comsat's risks are examined, and expert testimony is given. Objective of the case is to estimate Comsat's cost of equity.
Raises the dilemmas of making strategic decisions within an organizational construct. The divestment of a division of the company raises not only strategic issues but organizational and interpersonal ones as well. The decision is framed through the strategic planning process, and the case presents data in the form the general manager had available.
Reliance on growth of sales to solve financial dilemmas indicates weakness. Standard accounting techniques such as marginal income and break-even accounting encourage growth, but do not consider how fixed and variable overhead expenses affect profits. Cost analysis is an inadequate system; simplifying and shrinking production is the best way to ensure return on investment. Simple actions like improving the efficiency of accounts receivable procedures and reducing useless inventory frees cash quickly. Liquidating fixed assets for capital also serves to shrink overhead and improve efficiency.
The use of organizational control systems may backfire easily on management. A system cannot control performance; it can only provide information to the manager and often the information is misleading. Two major approaches are usual for control strategies. The external control strategy stresses supervision and makes employee manipulation of results difficult. The internal motivation strategy develops participative goal setting and rewards overall job performance. When choosing either strategy, a manager should consider four issues: consistency between strategy and managerial style; organizational climate, structure, and reward system; reality of job performance measures; and individual differences among subordinates.
Although the product life cycle (PLC) concept has been the mainstay of marketing strategy for many years, its accuracy and empirical basis are both questionable. In many cases, products do not develop along the traditional stages. The possible variations are so unpredictable that the most effective system employs unique information systems for each product. Product class, product form, and brand are the three stages of PLC, however, the model has little validity for brand life cycles. An effective model predicts sales drops and rises, and it serves as an indicator of the short-term success of strategy. Market-communication models greatly improve product life code models because they quantitatively measure the influences on sales, evaluate different opinions, and provide advance warning signals.
In 1969, Megalith centralized its financial and control functions. John Boyd, senior vice president for finance, hired four brilliant young managers to "bring the group out of the stone age." By 1975, this management team had created a near-perfect finance office of 630 employees. But two of the "young stars" have just quit, and Boyd is sure the constraints of salary ceilings are responsible. He talks with a compensation consultant (Hay Associates).
The manufacturing manager of Webster's largest division is told to cut his managerial payroll by 15%. Provides company background data and a description of the manufacturing manager's reactions to the proposed reduction. Provides the students with an opportunity to design a strategy for making the reduction decisions and also to discuss some of the difficulties inherent in a large reduction of force. Also contains a detailed description of Webster's performance appraisal system and may be used to stimulate discussion of measurement systems.
Deals with the organizational designer trying to create a structure, rewards, and a system of measurement that are compatible with the external environment, strategy, tasks, the members of the organization, management style, and the existing culture.
Describes production task of meeting peak seasonal demands in a light manufacturing plant. Information is provided for evaluating the options of overtime, second shift, second production line, and inventory buildup.
Introductory note on communications policy for use in first year marketing. Focuses on: Target selection; message delineation; communications intensity; alternative communications; means and media; economics of communications decisions; and need for consistency in communications programs. Assumes that students have previously read Consumer Analysis, Market Analysis, and Note on Marketing Arithmetic and Related Marketing Terms.
Despite the benefit of high profits, as well as the enjoyment of a position of leadership, a company that has a high market share is a tempting target for actual and potential competitors, consumer organizations and government agencies. Market-share management involves the determination of optimal market share in a given product/market. To achieve or maintain this optimum share, recommended marketing strategies include: sharebuilding, share maintenance, share reduction, and risk reduction.
Introduces the concepts of assumptions, perceptions and feelings, and applies these concepts to the problem of understanding the behavior that takes place between people in relationships. The note discusses a particular interaction that takes place between two men in a work setting in terms of how each person's point of view influences his behavior. Also discusses the topic of facilitating understanding and several assumptions that impede communications.
Describes a new venture: production of figurines in limited quantities as works of art and investments. Company guarantees to repurchase at original price.