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Faced with large losses in Alcan Aluminum (Europe), Patrick Rich takes the position of area general manager and slashes capital budgets, introduces new financial controls, and sets up mechanisms for increasing cooperation among the national subsidiaries. The focus is on the tactics of implementing rapid change in a cyclical industry that is capital intensive. Two videotapes are available from the Audio-Visual Department for HBS instructors' use with this case.

Describes several approaches to valuation of a going concern: assets, earnings, and cash flow.

Describes the method of control of repetitive manufacturing as used at Toyota by Just-in-Time and Kanban. The objective is to facilitate an understanding of how the method works and its rationale.

To improve the performance of American corporations, we must improve the effectiveness of corporate boards of directors. Corporate governance is just as important as corporate management. Corporations need personnel who can take the long-term view and make long-term commitments. They also need stockholders who are willing to hold onto their shares for long periods so that they become owners rather than speculators.

Small new businesses have in recent years increasingly provided the bulk of new jobs, a trend that has accelerated during the recession. In fact, these businesses have replaced older established companies as the primary driving force behind the growth of the U.S. economy. Technological advances, capital availability, and demographic shifts have encouraged these new entrepreneurs to challenge conventional wisdom and to experiment with new approaches to the market. The author explains why the entrepreneurial economy is a cultural and psychological event as well as an economic and a technological one.

Examination of the interaction among inflation, capital costs, profitability, growth, and the market value of a company's common stock can determine whether growth adds value for a company's shareholders. Analysis of the expected excess returns, figured on a net present value basis, of Tandy Corp., Xerox, and National Steel illustrates how the gap between market and book value of common stock can widen and illustrates that growth will add value if ROE is expected to exceed the cost of equity capital. But inadequate profitability coupled with the need to finance inflation-induced sales growth can be disastrous for the company's valuation.

The root of most service problems is a lack of systematic design and control. The use of a blueprint can help a service developer not only to identify problems ahead of time but also to see the potential for new market opportunities. A service company that relies on ad hoc management is not equipped to react quickly to market needs and opportunities.

Managers of smaller companies should pay close attention to the image their companies project to the business world. The impression conveyed to bankers, financial analysts, venture capitalists, and others is important because these people assign company valuations. Managers seeking to improve their companies' images should concentrate on four major factors: management, company name and trademark, annual report, and financial public relations.

Raising prices to cover rising costs and defend profit margins is a strategy that ceases to work in a recession, for that is when other companies start lowering their prices to increase their competitiveness. To avoid this competitive pricing trap, a company needs a method for seeing the unique way in which inflation is affecting it. Such a method is the value chain, a diagram that shows the value added at each step in the market process, from the raw materials stage to the final prices paid by consumers, exposing shifting cost components.

A consulting engineering firm, is involved in a road construction project in Asia which is plagued with difficulties. The firm is working with the local government highway department on the project and has the status of advisor. Actual construction is done by the government department. The problems that the firm must contend with include technical problems, a budget process, differing objectives and intercultural relations. Two years into the project, only 17 kilometres of the 245-kilometre highway were under construction. This case provides the background briefing for the in-basket exercise, An International Project Manager's Day, consisting of three cases, An International Project Manager's Day (A), An International Project Manager's Day (B) and An International Project Manager's Day (C). An alternative teaching approach, as a decision-making exercise, is presented in the teaching note 5A84C40 and supplementary case, An International Project Manager's Day (D).

Two-party negotiation between the lawyers for business partners concerning the ownership of a new computer program one of them has developed. HackerStar, Inc. is a small closely-held corporation that develops and markets software for microcomputers. The six-year-old company was founded by Hacker, a brilliant programmer who is responsible for the company's products and became its manager, and Star, a dentist and computer hobbyist who provided the capital. Hacker and Star are each 50% owners. The company has done moderately well, but now faces a crisis resulting from a dispute between the partners over the ownership and disposition of PowerScreen, a new product developed by Hacker, at least partly on his own time and definitely against Star's wishes. The company lawyer has referred Hacker and Star to separate counsel in order to avoid a conflict of interest. The exercise revolves around the meeting of these lawyers. At issue is the ownership of PowerScreen and the future of HackerStar, Inc.

Two-party negotiation between the lawyers for business partners concerning the ownership of a new computer program one of them has developed. HackerStar, Inc. is a small closely-held corporation that develops and markets software for microcomputers. The six-year-old company was founded by Hacker, a brilliant programmer who is responsible for the company's products and became its manager, and Star, a dentist and computer hobbyist who provided the capital. Hacker and Star are each 50% owners. The company has done moderately well, but now faces a crisis resulting from a dispute between the partners over the ownership and disposition of PowerScreen, a new product developed by Hacker, at least partly on his own time and definitely against Star's wishes. The company lawyer has referred Hacker and Star to separate counsel in order to avoid a conflict of interest. The exercise revolves around the meeting of these lawyers. At issue is the ownership of PowerScreen and the future of HackerStar, Inc.

Two-party negotiation between the lawyers for business partners concerning the ownership of a new computer program one of them has developed. HackerStar, Inc. is a small closely-held corporation that develops and markets software for microcomputers. The six-year-old company was founded by Hacker, a brilliant programmer who is responsible for the company's products and became its manager, and Star, a dentist and computer hobbyist who provided the capital. Hacker and Star are each 50% owners. The company has done moderately well, but now faces a crisis resulting from a dispute between the partners over the ownership and disposition of PowerScreen, a new product developed by Hacker, at least partly on his own time and definitely against Star's wishes. The company lawyer has referred Hacker and Star to separate counsel in order to avoid a conflict of interest. The exercise revolves around the meeting of these lawyers. At issue is the ownership of PowerScreen and the future of HackerStar, Inc.

Two-party negotiation between the lawyers for business partners concerning the ownership of a new computer program one of them has developed. HackerStar, Inc. is a small closely-held corporation that develops and markets software for microcomputers. The six-year-old company was founded by Hacker, a brilliant programmer who is responsible for the company's products and became its manager, and Star, a dentist and computer hobbyist who provided the capital. Hacker and Star are each 50% owners. The company has done moderately well, but now faces a crisis resulting from a dispute between the partners over the ownership and disposition of PowerScreen, a new product developed by Hacker, at least partly on his own time and definitely against Star's wishes. The company lawyer has referred Hacker and Star to separate counsel in order to avoid a conflict of interest. The exercise revolves around the meeting of these lawyers. At issue is the ownership of PowerScreen and the future of HackerStar, Inc.

The assistant credit manager for a jewellery wholesaler, must assess and compare the credit standing of two of their retail clients. The assessment, which would be used to determine if changes in credit policy were necessary, had to be submitted to both the credit manager and the sales manager in one week. This case provides students the opportunity to calculate financial ratios and use them in decision making. The focus should be on the development of the ratios and trying to appraise one business versus the other. If time is available, the instructor may wish to spend some time on credit appraisal. A follow-up to this case is available, Gardiner Wholesalers Incorporated (B), case 9A84J003.

Describes the various stages in the start-up process and describes in detail the questions that can be asked and the analysis that can be performed to help deal with the issues that arise at each stage.

GE is considering introducing a "just-in-time" production system to reduce inventory in its thermocouple manufacturing area. The case presents students with a description of the present inventory management system, the production process, and the perspectives of different individuals in the plant. The issue is how GE should proceed with introducing this system.

The behavior of the Federal Reserve System during the early years of the Great Depression has been a topic of considerable controversy. The Fed, it has been argued, pursued a contracting policy, thereby helping to turn what might have been only a brief recession into an economic catastrophe. This case explores the reasons behind the Fed's behavior, showing students how existing institutional values may be inappropriate to novel situations.

Describes the controls used in the casino over the blackjack game and cash stocks, and movements of cash. Also describes the results measures available in the casino and their limitations for control purposes.

Spreadsheet Supplement for case 184048.