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Ad Spending: Growing Market Share
Describes the relative share of voice effect in advertising. In most markets, consumer goods markets are in a state of equilibrium--advertising expenditures are relatively stable and changes in market share are small. To gain ground in market share, a competitor has to launch a huge ad campaign for a sustained period that outspends the biggest rival by at least 100%. -
Robust Quality
Product "robustness" is a function of good design. Still, most traditional quality programs concentrate on the factory. Zero Defects says that when parts come in within tolerances, the product will be fine. But parts just within tolerances have no advantage over those that just miss; it is better to miss a target consistently than to hit it haphazardly. Robust products maximize "signal-to-noise" ratios of component parts. Product designers can maximize these ratios by running experiments according to orthogonal arrays, which reckon the average effect of each variation on all other variations. -
Value-Adding CFO: An Interview with Disney's Gary Wilson
In this interview, Gary Wilson, executive vice president and CFO of the Walt Disney Co., discusses combining financial sophistication with an imaginative, strategic approach to business. Interviewer: Geraldine E. Willigan. -
Ellen Moore (A): Living and Working in Bahrain
Ellen Moore is working for a large multinational financial institution in Bahrain and is offered a promotion to one of two jobs, between which she can choose. When she informs her boss of her choice several days later, he tells her she cannot have the one she chose because it would mean periodic travel in Saudi Arabia, which he believes would not be possible for a woman. -
Ellen Moore (B)
Presents an edited transcript of questions that students asked Ellen Moore when she visited classes. Describes the decision Ellen Moore made and describes more of her experiences and opinions about women in management.. -
Differential Cash Flow Model
The note describes a short-run operating decision-making model that may be used to evaluate alternate courses of action. The note covers qualitative versus quantitative analysis, relevant costs for the model, and differential investments. As well, cost behaviour, financial charges on new investments and divestments are also covered. -
Beyond the Charismatic Leader: Leadership and Organizational Change
In ever more turbulent environments, executive leadership matters as never before. Organization speed, flexibility, and the need to execute discontinuous change require sharpened leadership skills. Charismatic leaders are important. These relatively rare leaders provide vision, direction, and energy for their firms. However, charisma is never enough to build competitive, agile organizations. Charismatic leadership must be bolstered by institutional leadership through attention to details on roles, structures, and rewards. Further, as most organizations are too large and complex for any one executive or senior team to manage directly, responsibility for managing in turbulent environments must be institutionalized throughout the management system. -
Braun AG: The KF 40 Coffee Machine
Examines the entire product development process at a premier German company, focusing on the role of design as a key player in interdisciplinary teams. Braun is embarking on a strategic shift from exclusively high-end products to products suitable for the upper end of the mass market. At an early stage in this process, the company must decide what kind of plastic material is appropriate for a new coffeemaker by analyzing the myriad of implications surrounding this decision. At stake is its reputation and corporate image as represented by its kitchen appliances. -
Kentucky Fried Chicken in China (A)
The new vice-president for Kentucky Fried Chicken in southeast Asia, must weigh the growth benefits of investing in China with alternative opportunities in the region. He is at the exploratory stage of market research and is focusing his attention on four possible locations in China. He must also balance his own personal ambitions with the possibilities for failure, not only in China, but the rest of southeast Asia. -
Kentucky Fried Chicken in China (B)
The VP's efforts to determine whether and how to proceed with an emerging three-way partnership in China are described. Kentucky Fried Chicken has selected local partners and has been issued a license to operate a restaurant in Beijing. If he is to proceed, the VP must decide how fast he should advance the negotiations and which of three location sites in the city is most desirable. -
Kentucky Fried Chicken in China (C)
This case presents the start-up of operations in Beijing and discusses the difficulties Kentucky Fried Chicken (KFC) is having with its local partners. By March 1988, KFC has established its largest restaurant in the world in Beijing with sales that are booming and showing no sign of slowing down. Nevertheless, the extent of operational problems and the shortage of hard currency profits is raising concerns over whether further expansion is warranted. -
SKF Bearings Series: Market Orientation Through Services (A): Restructuring the Before and After Market
In the spring of 1987, Mauritz Sahlin, CEO of SKF, the world's largest bearing company, decided to transform the company to improve profitability and return on assets. Production had already been rationalized and was fully automated, leaving little room for savings. Neither could R&D expenditures be cut, given the company's reputation for technological prowess and quality standards. The only viable long-term solution was to change the strategic orientation of SKF from the production line to the market, which would now be segmented into the before market and aftermarket. The plan required a complex reorganization of the company with far-reaching consequences throughout the organization, but there was no other option. Intended to be the springboard to a new SKF market culture, SKF Bearing Services was created, and Goran Malm was asked to be its CEO. A 1995 and 1997 ECCH award winner. -
SKF Bearings Series: Market Orientation Through Services (B): The Mission and Customer Strategy
Shortly after accepting the offer to become CEO of the newly created SKF Bearings Services in 1987, Goran Malm, long a proponent of market-driven change at SKF, defined his mission: trouble-free operations. Rather than simply make and sell bearings, which SKF, the world's largest bearing company, had excelled at, SKF Bearing Services was to offer customers solutions. Quickly selecting his key team members, Malm set about instituting a market-driven approach throughout his division, which was responsible for handling the vehicle and industrial aftermarket. Push through distributors and pull through advertising and the creation of maintenance support centers, which he called service factories, were key to implementing the change process. -
SKF Bearings Series: Market Orientation Through Services (C): Results and the Upswing
Supplements the (A) case. -
SKF Bearings: Market Orientation Through Services
SKF, the world's largest bearing manufacturer, decided in 1987 to change its focus significantly. Although the Swedish company was still No. 1 in the field, its profitability and return on assets had been going flat since 1985. To remain the industry leader, the company had to give customers what they wanted, not simply what the firm manufactured. Goran Malm was appointed to implement the change process within SKF. -
Colgate-Palmolive: Cleopatra
Demonstrates the dangers in assuming that a product successful in one market will do well in another, poor global marketing implementation, poor marketing strategy and implementation in general where research was used to back decisions on how to proceed, the need for an integrated marketing strategy to launch a new brand, and overreliance on an advertising push to diffuse a new brand. A 1992 ECCH award winner. -
Cocaine Mothers
Early in 1989, prosecutors in Florida charged a woman with child abuse after she gave birth to her second baby born with signs of cocaine dependency. This case briefly summarizes the problem of cocaine use, the effects of prenatal exposure, and the legal issues surrounding the Florida prosecution. The case can be used to raise a variety of issues, such as the frequency with which disputes about policy are often thinly disguised, disputes about objectives and basic values, and the circumstances under which the state is justified in coercing the behavior of individuals. HKS Case Number 944.0 -
Against All Odds: The Campaign in Congress for Japanese American Redress
The dramatic story of how the Japanese American community successfully lobbied Congress and the White House for legislation mandating financial compensation for those of their number sent to detention camps in the wake of the attack on Pearl Harbor. The case not only tells the inside story of a decade-long lobbying campaign-including a carefully-researched personal approach which changed Ronald Reagan's mind on the subject-but serves as a model of how bills really become laws. Aspects of this process explored in the narrative include internal legislative strategy, the role of the press, the role of grassroots organization, and the structure and nature of coalitions. HKS Case Number 1006.0 -
Language and the Melting Pot: Florida's 1988 "Official English" Referendum
This is a case which might inspire discussion both about political strategy and the relation of marginalized cultural groups to the mainstream. It tells the story of a 1988 attempt via referendum to declare English to be the official language of the state of Florida-an attempt, in part, inspired by tension and jealousy surrounding the arrival and relative affluence of the large Spanish-speaking population of South Florida. The alternative strategies which they conceive reflect both their views about the likely nature of the campaign and their views about how a minority relates to the majority. HKS Case Number 990.0 -
Contracting for Management and Technical Services (A): Who's Been Running the Naval Sea Systems Command?
In April 1988, The Naval Sea Systems Command (NavSea) came under fire from the naval inspector general for its excessive reliance on contractors to carry out day-to-day functions in support of its mission: the acquisition, maintenance, modernization, and deactivation of the Navy's ships and onboard systems. In the course of a routine review, the inspector general found that many NavSea contracts had no clearly stated performance requirements and that contractors were involved in sensitive activities, such as acquisition planning and source selection, that should be reserved to government employees with responsibility for protecting the public interest. The inspector general's report recommended that NavSea reduce its use of contractor support services by 50 percent over the next three years. NavSea officials quietly set about reviewing individual contracts and preparing a response to the report, but the matter was not destined to remain quiet for long. On June 14, reporters broke the story of Operation Ill Wind, a two-year investigation into illegal dealings among Navy and other Pentagon officials, defense contractors, and independent consultants. This case details the various phases of policy that took place within the US Government as pertains to NavSea. It should be paired with HKS827 (Part B). HKS Case Number 997.0.