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Recent developments in the software business point to some of the reasons why companies offer their products or services in bundles. One is the opportunity to leverage market power, as Microsoft arguably has done by bundling applications software with its operating systems. Another reason for bundling is the economics of scope, as indicated by the emergence of software suites and the shift toward broad-line players (Microsoft, Lotus, and Borland-WordPerfect). But there appears to be still more to bundling: individual software programs continue to be offered in addition to suites, and suites are priced at a steep discount to the total price for the separate programs.

Berkshire Partners is a limited partnership engaged in the acquisition of companies valued between $25 million and $250 million. The purpose of the case is to examine the resources of the firm and discuss the firm's competitive advantage vis-a-vis other types of organizations.

Examines the three factors critical to this company's remarkable success in the high tech field. The first factor is the founder, Dr. Inamori's powerful leadership. The second is the strong corporate culture or philosophy of the firm. The third element in Kyocera's success is the company's management systems, i.e. the "amoeba" system of profit centers. This system is bound together by an interactive level of meetings and the strong philosophy of the company which emphasizes both creativity and working toward a higher goal for the good of the company. This philosophy of a higher common goal prevents infighting amongst profit centers and preserves a unity of purpose, while encouraging a great deal of individual autonomy and creativity through the management system. This system in conjunction with the philosophy also promotes multiple levels of leadership and individual initiative throughout the firm. Dr. Inamori's leadership communicates this philosophy to the employees.

Instead of embarking on an odyssey for the perfect mentor, individuals should pursue a strategy of building a network of developmental relationships. In this note, we explore the process by which such a network can be established and cultivated: 1) What functions can developmental relationships serve? 2) How are these relationships formed and maintained? 3) With whom in an organization can an individual establish such relationships? and 4) What are some of the special challenges those in the minority face in building these relationships? In summary, we offer guidelines for building a constellation of developmental relationships.

Interco has been advised by Wasserstein Perella to reject a $70 per share offer for the company. The case deals with the various types of analysis employed by Wasserstein Perella and allows a discussion of the actions of Interco's board as well as Wasserstein Perella.

This case presents a series of financial events for students to record and to use in preparing financial statements.

Describes the reasons why the courts found in favor of Ann Hopkins in the sexual discrimination suit. Also explains why the courts concluded she was the victim of sexual stereotyping.

Designed to help nonprofit entrepreneurs design fund-raising strategies that are appropriate for their specific organizations. Discusses the major fund-raising alternatives, including foundations, corporations, government sources, wealthy individuals, and the public, and provides references for further research.

Less than three years ago, Steve Mariotti created NFTE, a nonprofit organization for teaching entrepreneurship to disadvantaged youths. The organization has gained national recognition, and offers a variety of programs on a budget of nearly half a million dollars. It is still run out of Mariotti's apartment. Mariotti is beginning to feel the stress of rapid growth and is concerned that further expansion will require significant organizational change. Students are presented with the challenge of advising Mariotti on this change process. The case is about the challenge of taking an organization beyond the founder-dependent, informal start-up stage of development.

The uncertainty and complexity of most business environments make successful management a difficult art. Frequently, bright, experienced, well-educated people manage their companies into strategic distress. Many of these bad results are not simply a matter of bad luck. This note discusses problems caused by cognitive biases and heuristics (ways of thinking about problems) that managers commonly use when analyzing strategy under uncertainty. Shows where these problems are likely to arise in strategy analysis and discusses five practices that help to mitigate the biases.

IBP, the largest U.S. beef and pork processor, is facing deteriorating earnings and undertakes a fundamental strategic review in 1990. Having grown from its founding in 1961 to its current position as a low cost, innovative producer of boxed beef, and more recently pork, IBP's competitors have pursued very different corporate strategies that appear to be more successful. IBP must reevaluate its own corporate strategy and decide whether its distinctive competence is still relevant, and where it should be active in the three dimensions of product, geography, and vertical integration.

This technical note describes, compares, and contrasts the strategic-planning techniques developed by the Boston Consulting Group, McKinsey, and Arthur D. Little consulting firms in the mid-1970s. The approaches were developed to classify the businesses within a diversified firm in order to decide which businesses to fund for growth. The assumptions and philosophies underlying each approach are contrasted, as are the consultants' relationships with client firms.

This case follows the A case (UVA-BP-0253) by three years, chronicling the indigestion Dollar General (DG) suffers after the acquisition of the Eagle Store chain. The DG organization, originally held together by a strong sense of "rural American" values, deteriorates because of (1) dramatically different cultures (Dollar General vs. Eagle); (2) massive internal theft, which spreads from Eagle throughout the Dollar General organization; and (3) an irreparable rift between Cal Turner Jr., the president, and his brother Steve, the COO. The stock price has plummeted from 29 to 12. How can Cal Jr. regain control of his company and turn it around?

To assess whether a company should enter the household-products market, Procter and Gamble's weighted-average cost of capital is computed. Clorox's cost of capital is also computed as a check on the P&G estimate. The case emphasizes the conceptual as well as mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure.

Percy Barnevik, president and CEO of ABB Asea Brown Boveri, is moving more aggressively than any CEO in Europe, perhaps in the world, to build the new model of competitive enterprise: an organization that combines global scale and world-class technology with deep roots in local markets. He offers a detailed guide to the theory and practice of building a "multidomestic" enterprise. He describes ABB's matrix system and a new breed of global managers.

The 20 largest U.S. pension funds hold 10% of the equity capital of the largest U.S. companies, and, in total, pension funds have assets worth $2.5 trillion. They have grown to the extent that they must now address two issues: for what should corporate management be held accountable, and how should accountability be structured? Some answers can be found by looking at Germany and Japan, where ownership is even more concentrated than in the United States. These countries define performance results by maximizing the wealth-producing capacity of the enterprise.

During the next decade, computers and televisions will give way to "telecomputers" that will not only receive but also store, manipulate, create, and transmit digital video programming. These technologies will transform business. But this vision is being held back by the telecommunications infrastructure, which is not keeping up with the power of computers. The solution is a system of fiber-optic cables reaching every home and business in the country. Business must push for a new regulatory climate that will allow these new technologies to proliferate.

A growing imbalance between the world's labor supply and demand is driving the globalization of labor. While the developed world accounts for most of the world's gross domestic product, its share of the world work force is shrinking. Meanwhile, in the developing countries, the size and educational level of the work force is quickly rising. Developing nations that combine their young, educated workers with investor-friendly policies, and industrial countries that keep barriers to immigration low, will benefit from the new global work force.

Global negotiations are increasingly between the people of the United States and global managers, rather than between American companies and foreign nations. These global managers are supranational corporate players who have no particular allegiance to any one nation. The United States is disadvantaged in negotiations because states and cities bid against each other, permitting global managers to play us off against ourselves. To remedy the situation, Reich suggests the creation of a U.S. Investment Representative and a GATT for Direct Investment.

This article, first published in 1974, answers one of management's most important questions: Why do so few organizations reach their productivity potential? The author answers that most executives fail to establish expectations of performance improvement in ways that get results. To set high goals that employees respond to and are accountable for, managers must invest their own time and energy. The first step is to set a modest, measurable goal concerning an important organizational problem. If this goal is met, management uses the success as a springboard for more ambitious demands.