A survey of 19 companies indicates that performance appraisal is still in use even though it is difficult to carry out. It is useful in identifying employee weaknesses, assessing management potential, justifying salaries, and forcing bosses to relate employee behavior to results. Systematic and behavioral barriers hinder successful performance appraisal. Four simple procedures can help performance appraisal work: keep it simple; keep it separate; keep it contained; and keep it participative.

Southwest Airlines, a small intrastate carrier, has just completed its first year of operations in June 1972 and management is debating what advertising and promotional strategy to adopt for the future. Southwest has successfully broken into a market dominated by two larger airlines and gained a significant market share through improved quality service, lower prices and other innovations, supported by heavy advertising and other promotions. However, it is still not making money. Illustrates development and introduction of a new consumer service and advertising and promotional strategy. Exhibits emphasize advertising copy, including a centerfold. Another version of this case, Southwest Airlines (A), takes the action up through February 1973, includes more details on pricing, and is designed for teaching marketing programs.

Spreadsheet Supplement for case 275124

An engineering manager has just received the resignation from the company's best engineering designer. The designer was asked to prepare a report on a current project to ensure that any problems during the process could be corrected before completion. In the report he was critical of the design features and some crucial parts of the project. The report was presented to upper management, concerns were discussed and it was decided to ignore the report and allow the project to continue without any changes. After finding out about the decision, the engineering designer submits his resignation. The engineering manager is uneasy about the events unfolding and must decide what to do next. Supplements Maintrel (B), (C) and (D), products 9A75J010, 9A75J011 and 9A75J012 highlight the engineering manager's decision and the outcome.

A large integrated oil company is debating whether to switch from a single hurdle rate to multiple hurdle rates for project analysis purposes. Raises questions on: 1) determination of the cost of equity; 2) the usefulness of multiple hurdle rates to adjust for project risk; 3) differences between a project's risk and its impact on overall corporate risk; and 4) the limitations of project analysis and capital budget systems.

Faced with large external financing needs and a low stock price, Con Ed management must decide whether to pay a cash dividend in April 1974. Based on Consolidated Edison by G.C. Lodge.

Concerns the settlement of an automobile insurance claim. A woman, blinded in an accident, alleges that approximate cause of the accident was failure by Sorensen Chevrolet to connect the left headlight of her car. The student is asked for a strategy for settling the case, to decide who is to negotiate, and to assess the handling of the case to date.

Pricing of meals for exclusive French restaurant.

Covers events between February 1974 and September 1974.

Covers events between September and December 1974.

Focuses on a relevant cost decision. Which costs are relevant for the decision? How should they be taken into account?

Describes designing an advertising or promotion program to sustain the momentum on L'eggs successful market entry.

Systems analysis may increase the productivity of a sales department by revealing the right combination of products, the right promotional methods, and the right locations. Sales managers implement the system by setting improvement objectives and then applying output and input variables to determine which control variables need changing. Five methods of measuring efficiency are: contribution to profit; return on assets; sales cost ratio; market share; and achievement of company marketing goals.

Describes the experience curve concept, details of its application, uses in competitive analysis, and a number of caveats and limitations.

Describes a method of competitive analysis used by the Boston Consulting Group to coordinate a portfolio of products at the corporate level. Construction and interpretation of product portfolio charts is an important aspect of the technique.

New political appointee with years of volunteer experience takes over highly responsible job in state government and is met with bureaucratic resistance.

Describes what a new political appointee with years of volunteer experience did in office.

Discusses a problem that confronted the appointee later--how to get a large, complex job accomplished without evident resources.

Describes how and what she did to accomplish the job.

Evidence from an ongoing study of 57 companies to determine the profit impact of market strategies (PIMS) shows that one of the main indicators of business profitability is market share. By presenting evidence on the nature, importance, and implications of the connection between market share and profit performance, a group of business experts attempt to answer such questions as why market share is profitable; what the observed differences between low- and high-share businesses are; and what implications the profitability/market share links have for strategic planning.