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To meet consumer needs, global firms typically manufacture based on their aggregate production plan after receiving demand projections from all markets. One of the consequences of matching demand with manufacturing is that these plans generally ignore the impact of exchange rate fluctuations. Consolidated profits for global firms are significantly influenced by fluctuations in exchange rates, and opportunity exists to incorporate exchange rate uncertainty into global production planning. This article presents an operational hedging mechanism ('production hedging') based on manufacturing less than the total global demand. Due to uncertainty in exchange rates, the firm takes conservative action and deliberately manufactures a smaller quantity than its total global demand. The article shows how manufacturing less can create a higher profit. It provides prescriptions for marketing executives to quantify the economic value of market share. In addition, it demonstrates why operational hedging, in the form of production hedging, is more valuable than financial hedging.

Given the trend of increasing business globalization, management teams of multinational companies have taken steps to better understand consumers, local business partners, and local governments. Local queueing preferences present managers with additional challenges and opportunities in international markets. The world may be 'flat,' but it is foolish to believe that all cultures perceive lines and waiting through the same lens. As discussed herein, perceptions regarding waiting and management of queues vary greatly; therefore, managers should adopt different policies and procedures when managing waiting lines across natural and cultural borders. Considering queue management in a global context offers benefits. Thinking globally--and acting locally--can prioritize and clarify important decisions any waiting-line manager has to make.

Despite the best efforts of corporate compliance officers, boards of governance, auditors, and regulators, corporate misconduct continues to plague our markets. In this thought-provoking installation of Accounting Matters, we argue that efforts to fight fraud and other forms of corporate misconduct have failed, in part, due to the systematic approach employed toward a problem that is irregular, complex, and extends well beyond the boundary of the firm. By drawing upon research from the field of behavioral ethics to suggest a new approach that does more than just stress formal control systems, we illustrate how executives may strengthen organizational ethics through informal practices that work from the 'bottom up' and the 'outside in.' Our review includes practical recommendations regarding how to create shared responsibility for ethical leadership, how to empower employees to achieve both economic and ethical ends, how to enlist the aid of key stakeholders in identifying problems before they grow and spread, and how to redesign compliance practices to address the complex nature of corporate misconduct.

Drawing on research in management theory, risk analysis, and the social sciences, this installment of Business Law & Ethics Corner promotes diversity of thought in corporate governance as not only beneficial to business growth and creativity, but also imperative to managing risk successfully. The article begins with a review of four major worldviews and the risk preferences of each. Next, it examines psychological processes that guide human decision making and greatly influence risk perception. The article then applies these worldviews and psychological phenomena to the case of risk management. It offers a critique of current risk management practices, drawing on evidence from the 2007-2008 financial crisis. The article concludes by promoting increased diversity of worldviews in corporate governance as a way to prevent the same risk blindness that led to the Great Recession.

Manufacturing is now a national strategy for many countries to combat slow economic growth, and positively viewed with the current trend of onshoring foreign manufacturing operations. We develop a cross-country regression model that predicts manufacturing employment as a function of population growth, foreign direct investment, and purchasing power parity. Results through the year 2100 suggest that manufacturing is trending toward a global equilibrium with higher levels of manufacturing outputs but much lower levels of manufacturing employment. The reason is that countries tend to evolve from having little manufacturing to commodity manufacturing at large scale and low wages. As infrastructure and human capital develop, there is the tendency to pursue advanced manufacturing in support of higher valued goods. The manufacture of commodity products is then outsourced to those countries with lower costs justified by their less-developed infrastructure and human capital, and so the virtuous cycle continues. While this model suggests that current efforts in revitalization of domestic manufacturing would lead to an increase in wealth in the United States, the bad news is that these gains are unlikely to be sustainable in the long term. However, the good news is that manufacturing acts as a rising tide that raises all nations and our global quality of life.

Revenue-sharing contracts have been heavily researched and promoted in the academic literature. However, despite some well-documented examples (e.g., the way Blockbuster and film studios were able to increase availability of the latest video releases in rental shops through a revenue-sharing contract), they seem to be much less prevalent in practice. A possible reason for this gap between theory and practice is that most academic research has focused on two-party contracts involving only one buyer and one supplier, while in reality, most supply chains consist of multiple stages. When there are several stages in the chain--as is the case for many extended, global supply chains--the traditional revenue-sharing contract is no longer optimal for the two contracting parties, as every other participant in the chain is able to leverage the revenue-sharing contract to its own advantage. Put another way, a revenue sharing contract between only two parties is not incentive-compatible across all participants. Accordingly, we suggest that a revenue-sharing contract should involve all the supply chain partners, and propose a spanning revenue-sharing contract that accomplishes coordination and incentive-compatibility across the same.

The case describes several issues for the continuum of senior care alternatives for residents and developers. What motivates seniors to leave their homesteads for much smaller spaces? How can they afford to do so? What are the physical as well as operational challenges for operators when serving the different levels of acuity? The case also describes what zoning issues may be faced by developers who seek to build in attractive but challenging neighborhoods. Furthermore, how can a successful operator branch out into new businesses? When should the operator form joint ventures to help them achieve their strategic ends?

In late January 2011, the assistant deputy minister of Environment Canada is contemplating the final report of the joint review panel conducting the environmental assessment of Total E&P Canada's $10 billion oil sands project, the Joslyn Mine near Fort McMurray, Alberta. Although the report advised that the project would be in the public interest only if - and it was a big if - adverse effects on species at risk were fully mitigated, she was aware that both the company and provincial officials did not agree with the need for further wildlife protection measures. Further, behind the scenes, the industry lobby group, the Canadian Association of Petroleum Producers, opposed any offsite protection of habitat that might be seen as a precedent for future projects. The federal government's priority was jobs, and the assistant deputy minister would soon be under pressure to advise the minister on whether to authorize the project to proceed. Without a mechanism to ensure that threatened wildlife would be protected, she could not recommend approval. She needed to find a solution that would work both for the environment and the project.

Since its inception as an organization dedicated to promoting women's entrepreneurship through coordinated activities, the Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) has gone through different phases, acquiring distinct competencies and resources to offer an integrated approach to helping women entrepreneurs. In the two decades of its operations, ALEAP had established two industrial estates. There was scope to establish more industrial estates for women but ALEAP was contending with severe financial and manpower constraints that would make it difficult to pursue the manufacturing route to develop women entrepreneurs. ALEAP's president believed that it was time to scale up operations and explore new opportunities. However, several questions had to be addressed: What growth strategy should ALEAP adopt? Was it time to look for a new model? Should ALEAP look beyond manufacturing for its growth? Should ALEAP look for innovative approaches to set up incubation centres? Whose support should it seek?

A novice entrepreneur and a strong believer in ethical business practice has tried to build a family-oriented culture in his business process outsourcing company. However, although he created a friendly atmosphere, he still faced performance and attrition issues. The company grew in size and financial worth but the entrepreneur persisted in looking for better opportunities for a new business venture. He developed the idea of a new e-commerce venture that would sell Chinese products online. Juggling human capital risks and entrepreneurial exit, he had to consider the merits of his decision and determine whether to leverage the same team or hire a dedicated team for his new venture.

The founding partners of this small company must decide whether to use a distributor to sell their products or continue to be their own sales representatives. The company sold a variety of environmentally friendly pens made from recycled paper, often used for fundraising efforts or company promotions. The partners had little access to capital, so they needed to consider the profitability and cash requirement of the alternatives and financing options.

In February 2011, the senior associate deputy minister of Industry Canada was appointed as the Canadian prime minister's personal representative to the bi-national team charged with developing the "Beyond the Border Action Plan" to both improve security and streamline cross-border commerce and travel between Canada and the United States. He was immediately faced with a range of decisions on how to proceed - whom to consult, which Canadian team members to hire, which of many possible priorities to pursue in discussions with his U.S. counterparts and which steps to take to manage a complex process involving a multiplicity of large and powerful Canadian government departments and agencies as well as private sector interests. While he didn't yet have strategies to address these issues, he knew that he would have to formulate them rapidly. Both the prime minister and the U.S. president had made clear their desire to move quickly - ideally, an action plan was to be in place within six months.

In 2005, the police service in London, Ontario is faced with growing complaints about street-level prostitution in a neighbourhood trying to make an economic recovery. At the time, all Canadians are following the shocking case of Robert Pickton, a serial killer charged with the murder of over 20 prostitutes in Vancouver. The deputy chief asks the superintendent of Operations to devise a plan to deal with the local issue, including current news reports about the failure to solve a 10-year-old murder of a street worker. The latter recommends assigning an officer to begin a proactive approach to prostitution by monitoring and helping women to get free of the drug addictions that have led them into the business instead of arresting them. Is the superintendent overreacting to public pressure and sensational reports of events in Vancouver? Is this really a job for police? Can they sell this plan to their chief?

In 2012, a highly controversial bill was passed that called for major reform and restructuring of Britain's government healthcare system, the National Health Service. Public opinion of the reform was both highly polarized and volatile. The Secretary of State for Health faces two tasks: addressing key issues to ensure successful implementation of the reforms and developing a plan to ensure both long-term and short-term success.

A leading cement producer in southern India, Madras Cement is having trouble controlling costs due to its disorganized reporting processes. This case documents the company's two attempts to resolve these issues with the implementation of an Enterprise Resource Planning (ERP) system. The company's first attempt fails. After a company leader takes the bold step of admitting he made mistakes during this effort, Madras is ready to dig in and make the necessary changes to make the second attempt a success. The case initially seems to be about software implementation, but it is really a story about change management, transformation through transparency, business centric approaches, and the creation of a new social architecture. The company uses innovation to develop new processes that can ultimately be applied to other organizations, allowing the merger and acquisition process to begin.

Darden Restaurants is an $8.6-billion company with eight brands, more than 2,100 restaurants, and over 200,000 workers, serving more than 400 million meals a year. The company has a solid diversity and sustainability track record. Still, in this case, the protagonist is seeking ways to improve upon Darden's practices in these areas to cement the company's place in the public's collective mind as a diversity and sustainability leader while bolstering its bottom line. Students are asked to place themselves in Darden President and COO Andrew Madsen's shoes and develop strategies for executing and improving on existing practices that will allow the company to save money, ensure a steady flow of resources, improve financial performance, and create shareholder value.

At the time when Dr. Ganesh Natrajan took over as the CEO of Zensar Technologies Ltd in India in 2001, the company was in a state of turmoil. Staff morale was low and the company was essentially a staffing agency sending IT professionals to work at client sites abroad. As Natrajan started to implement across-the-board changes at Zensar, the company had grown from 850 employees in 2001 to 4,000 employees in 2007 with the number of clients increased from 57 in 2001 to 273 in 2007. Revenue increased from US$42.8 million in 2001 to US$179.57 million in 2007. This case covers the detailed strategies implemented by Natrajan that resulted in Zensar's explosive growth.

Thompson Asset Management (TAM) is a small investment advisory and asset management firm in Jacksonville, Florida, with about $100 million in assets under management in two different funds. Since starting the firm in 2009, the CEO and founder Allison Thompson has had a proven track record of beating benchmarks and managing the portfolio's downside risk. The firm's typical clients were high-net-worth individuals, and in 2014, Thompson is looking to expand her business by taking on institutional clients as well. She recently met with the investment officer of her alma mater and is considering taking on the university's endowment fund as a client. For her bid to manage the entire endowment of $20 million, Thompson must create a presentation that outlines her investment strategy. The case is ideal for an MBA-level or undergraduate finance course that covers asset management and/or portfolio theory.

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