個案總覽

Appointed general manager in 1980 of Westinghouse's newly created Synthetic Fuels Division (SFD), William Peace devoted most of his time to strategy at the expense of employee morale. Many employees did not support the division's new mission. Not until some of them vandalized cars belonging to two managers did Peace realize how abysmal morale really was. Several lessons emerged from the experience: managers must be alert for employee perceptions that don't match their own; frequent and open communication is essential to organizational effectiveness; and, finally, managers can build trust in organizations by disclosing their true feelings and taking risks on behalf of their employees. McKinsey Award Winner.

The matching principle says, "Don't finance long-term needs with short-term capital." Small businesses, however, rarely use strict matching. By not adhering to the matching principle, small businesses incur three risks. First, when loan-renewal time comes, interest rates can be higher. Second, a lender may decide to terminate the agreement. Last, a lender might begin to make operating "suggestions" that limit the company's autonomy if payments are not met in time. To deal with these risks, small businesses that use some amount of short-term capital to finance long-term requirements need to be flexible enough to eliminate the debt in a reasonable period of time without disturbing operations.

The publicity surrounding just-in-time production, or JIT, emphasizes the lower inventory costs and greater ROI attributable to the technique. More important, however, are the improvements in manufacturing that result from operating with low inventories. Since converting to JIT involves a big change in a company's culture and operations, many companies have resisted it. Successful conversion to JIT rests on management commitment and the involvement of the entire work force. Appointing a champion to set up a training program, make a conversion schedule, and form a conversion team will expedite the transition.

Describes a major conflict within Apple Computer in 1985 over control of product distribution. The founder and chairman, Steve Jobs, proposed a new distribution process which would transfer many responsibilities away from distribution manager, Donna Dubinsky. Dubinsky believed, however, that this process would be practically and financially unworkable. Presents her defensive and unsuccessful conflict management, culminating in her threatened resignation. May be used with Debi Coleman and Apple Computer, Inc.

May be used with Donna Dubinsky and Apple Computer, Inc. (A), (C), (D), & (E) and Debi Coleman and Apple Computer, Inc.

Dubinsky and her boss' boss reflect on what was learned through this difficult chapter in Apple's history. May be used with Donna Dubinsky and Apple Computer, Inc. (A), (B), (D) and (E).

Presents a description of two management style assessment questionnaires that were completed by Donna Dubinsky: the Influence Style Questionnaire and the Leadership Practices Inventory. Dubinsky's results are summarized and presented in two exhibit graphs. This data may serve as a supplement to Donna Dubinsky and Apple Computer, Inc. (A), (B), (C), and (D) in a class discussion of Dubinsky's individual influence style and techniques.

Summarizes how to construct and use statistical process control charts. Gives several examples. Discusses tolerances using control charts for debugging.

Spreadsheet supplement for case 686118.

Describes a series of collateralized mortgage obligations offered by Travelers Insurance. Provides a general description of the life insurance business and the role of life insurance in the capital markets. Also describes a variety of mortgage related instruments, including pass-through securities, pay-through bonds, mortgage-backed bonds, and CMOs; and outlines trends in the securitization of mortgage assets. Background on the pricing of mortgage securities and models of prepayment on mortgage instruments is included. The protagonist, an insurance company portfolio manager, wonders why Travelers is issuing this security (and retaining one class of the bonds) and considers purchasing one or more of the bond classes offered. The student should understand the yield curve arbitrage driving the issuance of CMOs, the reason Travelers undertook the transaction, and the interaction of the primary and secondary residential mortgage markets.

This small but rapidly growing Danish biochemical company must choose among several financing opportunities that include a convertible Eurobond, a rights offering in Denmark and an issue of new common shares in the United States. The case involves a broad range of issues concerning the ability of a multinational company to lower its cost of capital by tapping different capital markets worldwide.

General Foods must decide whether to acquire Entenmann's Bakery. Price and financing must also be decided. The teaching objectives include analysis of strategic fit, selection of purchase price, and financing method. Another issue is the debt to equity ratio that is suitable for General Foods.

Describes the evolution of a company's manufacturing strategy over an eight-year period. Copeland had pursued a strategy of building freestanding focused plants devoted to single processes or product lines, and then moving products from the home plant at Sidney, Ohio to the new facility. Sidney is now left with a jumble of unrelated products and processes, and management must decide whether it should be reorganized by product line or manufacturing processes. HBR reprint number 85117 "Competing Through Manufacturing," January-February 1985, by S.C. Wheelwright and R.H. Hayes may be taught with these cases.

In the (A) case, Copeland had to choose between focusing its Sidney plant by product line or by manufacturing process. Now that it has made that decision, a plant layout must be selected from two alternatives.

In the preceding case, Copeland had to choose between two alternative plant layouts for organizing its Sidney plant. Now it must get work force approval for a change in "bumping" rules before proceeding with the change. Management must decide how to proceed--to continue with the reorganization, delay the moving of equipment and personnel, or drop the project completely.

Describes uses of foreign currency swaps and development of both interest rate and foreign currency swaps market. Emphasis on calculation of all-in costs using foreign currency swaps and conversion of basis points in one currency to basis points in a different currency.

Spreadsheet Supplement for case 286073.

Spreadsheet Supplement for case 286067

Describes the operation of foreign exchange markets, including bid-offer spreads, cross rates, reciprocal rates, and forward rates. Provides several examples to demonstrate calculation of outright forward rates using discount and premium points quoted in the London Financial Times. Other examples demonstrate interest rate parity, and hedging foreign debt using long-dated forwards.

Intended for distribution during class, this case contains one set of answers to the (A1) case. It introduces the concept of a Gantt chart and discusses issues raised by the case such as the value of labor flexibility. The open-ended questions in the (A1) case are only partially answered to encourage further student creativity.