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Systems analysis may increase the productivity of a sales department by revealing the right combination of products, the right promotional methods, and the right locations. Sales managers implement the system by setting improvement objectives and then applying output and input variables to determine which control variables need changing. Five methods of measuring efficiency are: contribution to profit; return on assets; sales cost ratio; market share; and achievement of company marketing goals.

Describes the experience curve concept, details of its application, uses in competitive analysis, and a number of caveats and limitations.

Describes a method of competitive analysis used by the Boston Consulting Group to coordinate a portfolio of products at the corporate level. Construction and interpretation of product portfolio charts is an important aspect of the technique.

New political appointee with years of volunteer experience takes over highly responsible job in state government and is met with bureaucratic resistance.

Describes what a new political appointee with years of volunteer experience did in office.

Discusses a problem that confronted the appointee later--how to get a large, complex job accomplished without evident resources.

Describes how and what she did to accomplish the job.

Evidence from an ongoing study of 57 companies to determine the profit impact of market strategies (PIMS) shows that one of the main indicators of business profitability is market share. By presenting evidence on the nature, importance, and implications of the connection between market share and profit performance, a group of business experts attempt to answer such questions as why market share is profitable; what the observed differences between low- and high-share businesses are; and what implications the profitability/market share links have for strategic planning.

A complex formal planning process adopted by a multibillion-dollar, diversified corporation headquartered in Europe involved a three-cycle system. The first cycle involved corporate executives and division managers and served two purposes: 1) to develop a tentative set of agreements between corporate and division managers about overall strategy and goals, and 2) to provide for more detailed planning in the next cycle. The second cycle, involving functional managers, served a dual purpose: it allowed tentative agreements to be reached on action programs to be implemented over the next few years, and it expanded the strategic focus of the business. The third cycle dealt with resource allocation decisions and budgeting at the functional level.

A new product, contact lenses for chickens, is to be introduced by a small firm formed to market the product. An entry strategy must be planned including price, sales force, size, and location. Allows data for computation of economic benefit to farmers. Includes state-by-state chicken population data for planning a rollout sales program. Software for this case is available (9-588-539).

Supplements the (A) case.

Supplements the (B) case.

Raises questions about basing a reward system on profit and changing MBO indicators through time.

Spreadsheet supplement for case 575-072.

Southwest Airlines, a small intrastate carrier serving Dallas, Houston and San Antonio, begins service in 1971 in the face of competition by two larger, entrenched airlines. Improved quality service, lower prices, and innovative advertising and promotional strategy bring Southwest to the brink of profitability in early 1973, when its major competitor halves fares on Southwest's major route. Management wonders what response to make. Exhibits include cost and revenue data. Southwest Airlines (C), which may be used as an alternative to the (A) case, focuses on advertising and promotional strategy through June 1971.

Describes Southwest's response to a competitive fare cut and the results, bringing the action up to late March 1973, when management must make additional decisions on marketing strategy with both short- and long-range implications. Southwest Airlines (C) should not be used with this case.

The president of a medium-sized electronics company is evaluating the financial forecasts and proposed financing program submitted by the chief financial officer. The forecasts are prepared in constant dollars, on which basis the proposed financing plan seems reasonable. However, when inflation is incorporated into the forecasts, the financing need far exceeds available sources of funds, and adjustment on the operating side is necessary. The danger of relying on a single set of forecasts based on the most likely outcome is also demonstrated.

Describes the efforts of the director of Job Corps to stave off the destruction of his agency by the Nixon administration. In this process, the director built extensive power bases which he mobilized in support of Job Corps. The end result was that Job Corps was not totally destroyed.

Covers events between November 1973 and February 1974.

Midwest Ice Cream (a disguised name) serves as an example to examine a planning and control system. Useful management information, which otherwise would not be apparent, is derived by preparing a basic profit variance analysis. This illustrates how the company is doing many things "wrong," which are covered up by a growth in the overall ice cream market.