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Introductory note on the concept of market segmentation and its processes.

Focuses on Club Med's strategy in the U.S. market. The experience of Club Med is largely among Europeans, but the Club has attracted young, single U.S. tourists to its Caribbean resorts. Should Club Med attempt to attract other market segments? What should its growth strategy be?

Introduces the student to the concept of the product life cycle. The meaning and fundamental underpinnings of the product life cycle are presented. Further, the nature of market and competitive forces at different stages in the life cycle, and the implications for managerial action, are discussed.

Focuses on the problem of the means by which a manufacturer controls its channel of distribution. U.S. Pioneer's retail outlets have turned "dissident" and management has to decide what tactics to employ to stop further erosion (short-run) and what long-run distribution channel to pursue. Software for this case is available (9-588-546).

Outlines the problems involved in defining "markets" for purposes of 1) developing competitive strategies, 2) measuring market share, and 3) evaluating the extent of competition. The primary focus is on strategic planning--specifically, the questions of delimiting the served market for a business unit and identifying potential segments within it.

Discusses the nature and dynamics of interpersonal conflict and suggests how to diagnose and manage a conflict situation. The perspective employed is that of an interested third party who wishes to intervene in the conflict to resolve or control it. Focuses on how to choose between resolution and control strategies, and suggests specific tactics for implementing each approach.

Provides a brief overview of the strengths and weaknesses of group problem solving and suggests criteria for when to use a group. Also, describes the three primary modes of conflict resolution (smoothing and avoidance; bargaining and forcing, problem solving) and discusses difficulties experienced by the members of interdepartmental groups. Can be used with cases on group and intergroup conflict.

In practice, management makes debt-capacity decisions by drawing on advice from external sources. This method of decision making fails to assess how much risk is actually involved for an individual company. Management must formulate an approach to the measurement of risk applicable to individual corporations. Expressing the limits of long-term borrowing in terms of an income statement of data, rather than the conventional balance sheet relationship between long-term debt and the total of all long-term sources, provides a more meaningful ratio for internal formulation of policy. This article, first published in 1962, is reprinted to include a retrospective commentary by the author.

A student takes a position on a case which is in conflict with the other students' conclusions. The professor believes the student's answer is correct but does not indicate so in class. As a result, the student withdraws from further class participation.

Supplements the (A) case.

Supplements the (A) case.

After taking over Canada Dry's mixers account in 1966, Grey Advertising assembled a successful ad campaign that increased ginger ale sales significantly. But Canada Dry's market share for ginger ale and its other mixer products had remained the same or declined during this period. A consumer research study, using psychographics and various demographic and attitudinal techniques, is commissioned by Canada Dry as a prelude to a $2 million ad campaign designed to arrest the market share trend. Various consumer behavior, research, and managerial issues are raised by the study. Grey Advertising must now develop a strategy based on the results of this study.

Bonuses and incentive compensation encourage management's preoccupation with short-term financial results. This emphasis is an important contribution to the United States's lag behind other countries in research and development investment and capital spending. Federal tax policies have failed to provide incentive for investment to further economic growth. Restructured management incentives would reintroduce entrepreneurial spirit without sacrificing the systematic cost-benefit approach to decision making.

A company should acquire another business only when the skills and resources of the two businesses can produce an income, or reduction in the variability of income, greater than what can be realized from a portfolio investment in the two businesses. Seven common misconceptions illustrate fallacies about diversification through acquisition. Acquisition-minded companies may use a set of seven suggested methods to obtain returns greater than those obtainable from simple portfolio diversification.

In order to maintain commitment to ethical standards, companies must foster professional pride and honest business practices in their employees. Examination of the paper industry price-fixing conspiracy in 1976 indicates that a crowded and mature market, declining demand, and absence of product differentiation can create a ripe climate for price collusion. To avoid this, top managers must recognize these dangerous conditions, clearly communicate their intentions, and by their conduct set a good example for their subordinates.

A survey of 380 companies in 34 industries throughout the United States and Canada examined the three basic kinds of compensation plans and found: 1) Salary plans pay fixed rates of compensation and are appropriate when measurements of performance are difficult to ascertain. 2) Commission plans pay salespeople in direct proportion to their sales and are appropriate for maximizing incentives or for predicting sales costs in direct relationship to sales volume. 3) A combination plan includes all variations of salary plans plus other monetary incentive plans. This plan is more complex to administer; however, it allows for greater incentive and flexibility.

Understanding the basic differences between service businesses and manufacturing businesses is essential to the strategic management of a service business. Most managers of service businesses continue to think of strategy in product-oriented terms, despite the fact that much of this approach is actually irrelevant to their companies. Six suggested questions focus on topics these managers should consider about strategic management.

Discusses several changes in the motorcycle industry: the emergence of Japanese competitors; the growth in demand for light motorcycles; and the emergence of recreational uses; and how these changes have affected older United States and British manufacturers.

Designed as a class hand-out after discussion of the (A) case.

Designed as a class hand-out after discussion of the (A) and (B) cases.