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Describes the innovative approach to organizing and managing employees by People Express and describes the company's eventual demise. This material can be used to inform about leading edge human resource management practices and to raise questions about what went wrong. Why did People Express succeed in its early years and why did it ultimately fail?

Over the last decade, power in the retailing of packaged goods has shifted from manufacturers to wholesalers and sellers. One result has been an increase in consumer and trade promotion. But many trade promotion practices are costly to manufacturers, retailers, and eventually consumers. The authors single out forward buying in the grocery trade and offer evidence of the costs of this practice to the distribution system as a whole. They suggest a policy called "everyday low purchase price", designed to smooth the peaks and valleys of demand and reduce the costs of distribution.

Large managerial enterprises have been the engines of growth and innovation in modern economies for more than a century. This essay lays out the logic and the nature of the competitive battles that ensue once an industry has been transformed by a first-mover company (companies defined by their large-scale investments in production, marketing, and management). History's lessons are clear: first movers quickly dominate their industries and continue to do so for decades. Those who fail to invest cannot compete--internationally or at home.

An interview with the founder and CEO of Raychem Corp., Paul M. Cook. Raychem's strategy since its founding has been to master a set of core technologies and to create thousands of proprietary products based on those technologies. Cook offers his ideas on innovation and encouraging corporate creativity.

Shareholder value analysis (SVA) is the subject of much debate. Some managers herald it as a great contribution to corporate planning; others say it is too restrictive, too easily manipulated, or too dependent on subjective forecasts. The shortcoming is not in the technique itself but in the way companies apply it. SVA can lead managers astray in three ways: by undervaluing a strategy, by overvaluing a strategy, or by excluding strategy alternatives.

CEOs must spend a certain amount of their time in the trenches, to learn first-hand how the business is going. Time spent on the road with the sales force is especially valuable. Executives learn whether the sales team knows its prospects and sets reasonable expectations; how much the salespeople know about the product, particularly in ways that differentiate it from the competition; whether the sellers keep abreast of changes in customers' businesses; and if the salespeople feel they have a stake in the business.

This hypothetical case, set in 1995, excerpts part of Dominion-Swann (DS) Industries' employee handbook. In 1990 DS implemented a personnel program using the latest advances in surveillance technology and subliminal persuasion to increase productivity and sales. Joseph Moderow, senior vice president and general counsel, UPS; Shoshana Zuboff, associate professor, Harvard Business School; Bill Howard, vice president of information technology, Bechtel Corp.; and Karen Nussbaum, executive director of 9 to 5, National Association of Working Women, discuss DS's use of technology to support and control employees.

What do managers do? A study of five CEOs and studies of managers conclude that managerial work involves interpersonal roles, informational roles, and decisional roles. These roles require developing peer relationships, carrying out negotiations, motivating subordinates, resolving conflicts, establishing information networks, making decisions with little or ambiguous information, and allocating resources. This article includes a commentary by the author outlining his perspective 15 years after the original publication of the article. McKinsey Award Winner.

A four-year, ten-nation study of the patterns of competitive success in leading countries concludes that companies achieve competitive advantage through acts of innovation. A nation's capacity to innovate is affected by four broad attributes, the "diamond" of national advantage: 1) factor conditions; 2) demand conditions; 3) related and supporting industries; and 4) firm strategy, structure, and rivalry. Based on this analysis, government and companies should act as catalysts and challengers, but not get directly involved in competition.

Services technologies are changing the way companies compete. Vertical integration, physical facilities, even a seemingly superior product no longer assure a competitive edge. Sustainable advantage is more likely to come from developing superior capabilities in a few core service skills. Technology is increasing the leverage of service activities. These changes have far-reaching implications for the way managers structure their organizations and define strategic focus.

Affirmative action is based on a set of premises that badly need revising. White males are no longer dominant at every level of the corporation, while decades of attack have noticeably weakened racial and gender prejudices. Our traditional image of assimilating differences--the melting pot--is no longer valid. It's a seller's market for skills, and potential employees are refusing to be melted down. Companies must manage unassimilated diversity and get from it the same commitment, quality, and profit they once got from a homogeneous work force. We need to work not merely toward culture- and color-blindness but also toward an openly multicultural workplace that taps the full potential of every employee.

It has been estimated that the U.S. apparel industry wastes over $25 billion annually due to inefficient practices, long lead times, and insufficient coordination between channel partners. In response to intense competition from off-shore producers, the industry has initiated efforts to reduce these losses and regain competitiveness. This note provides background information on the U.S. apparel industry and describes the concept of "Quick Response," a strategy that increases the competitiveness of domestic manufacturers by increasing their ability to quickly respond to shifting markets. Describes changes in technology, information systems, and channel relationships that are necessary to implement a Quick Response system.

To be used in conjunction with Ford Motor Co.: Dealer Sales and Service.

Merloni Elettrodomestici is a leading Italian manufacturer of domestic appliances. In 1986, an exposition for Merloni customers is scheduled at its Milano regional warehouse. During the two-month period preceding the event, when the warehouse must be free of inventory, the company conducts a "transit point" experiment. Each day, a truckload of products from the company's central warehouse is sent to Milano, where it is immediately transferred to small trucks for local delivery. At the conclusion of the experiment, the company is considering the replacement of its 17 regional warehouses with transit points. Students are asked to evaluate this proposal and recommend a configuration for Merloni's distribution network. Issues to be considered in the analysis of the case include the impact of different network configurations on customer service and on inventory, labor, operating, and transport costs.

Describes the international business of Fusion Systems Corp., a small high technology American firm, and a five-year patent dispute the company has in Japan with Mitsubishi Electric. Also describes key features of the intellectual property systems in Japan and related patenting strategies of firms. Finally, describes Fusion's strategy to seek help from the U.S. government. Ends with a decision of how Fusion should respond to Mitsubishi's latest negotiating moves.

Describes how the IRS's collection operations changed from a largely manual system (COF) to an automated system (ACS). A central aspect of ACS was the electronic scheduling and maintaining of work. While with ACS the IRS accomplished significant improvements in the task efficiency of its collection operations, the system also led to greater turnover and lower employee morale. This raises questions of how the system could be redesigned. The primary teaching objective of the case is to show how information technology, control systems, and organization design are intertwined and how any change effort must address all three aspects simultaneously.

Ostensibly a case about employee turnover in a small construction component company, Wood Structures, Inc. is actually a snapshot of the whole company. In particular it addresses issues of leadership, morale, and teamwork (or the lack thereof) in a company dependent on a highly seasonal and cyclical industry. Operating in "final fighting mode" owner/founder Bill Alcorn has difficulty setting a long-term course. He also feels ambivalent about delegating authority to a management group he fears may not have the same commitment to the company that he has. The case can serve as a good vehicle for diagnosis and action planning around several sets of tensions: plant to plant and shift to shift rivalries; management-labor, management-union versus rank and file; and management in a difficult industry.

Introduces a framework for identifying and analyzing the ethical and policy issues triggered by the various capabilities of information technology (IT). Ten IT capabilities are defined (access, capture, speed, permanence/storage. duplication, tracking, monitoring, data recombination, job redesign, and supplier power) and mapped against five managerial issues they can trigger (privacy, ownership, control, accuracy, and security). These five issues are then mapped against four policy areas that might address them (data policy, intellectual property rights, worker's rights, and competitiveness). Key questions are raised and various examples of IT's impact on managerial decision making are presented. Finally, four models of ethical analysis are suggested as possible tools for approaching these managerial choices: stakeholder analysis, utilitarian goal-based analysis, rights-based analysis, and duty-based analysis. Useful in an introduction to the management of IT, as well as in a business ethics course.

Describes Xerox's "rental only" policy for its machines during the period when it had a monopoly of the plain paper copier market and how that policy changed once it was faced with entry by IBM, Canon, Kodak, and others. Data on the breakdown of Xerox's revenues between sales and rentals are included.

Describes the circumstances surrounding Whistler Corp.'s decision whether or not to continue manufacturing operations in the United States. The company had been experiencing severe problems in its domestic manufacturing operations and was thus unable to compete with suppliers from the Far East. A pilot project organized by a consulting firm suggests a number of changes that could drastically improve the firm's manufacturing competitiveness. Management must decide whether these changes should be implemented or whether all products should be procured from offshore sources.