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Concerns the settlement of an automobile insurance claim. A woman, blinded in an accident, alleges that approximate cause of the accident was failure by Sorensen Chevrolet to connect the left headlight of her car. The student is asked for a strategy for settling the case, to decide who is to negotiate, and to assess the handling of the case to date.

Pricing of meals for exclusive French restaurant.

A large integrated oil company is debating whether to switch from a single hurdle rate to multiple hurdle rates for project analysis purposes. Raises questions on: 1) determination of the cost of equity; 2) the usefulness of multiple hurdle rates to adjust for project risk; 3) differences between a project's risk and its impact on overall corporate risk; and 4) the limitations of project analysis and capital budget systems.

Faced with large external financing needs and a low stock price, Con Ed management must decide whether to pay a cash dividend in April 1974. Based on Consolidated Edison by G.C. Lodge.

Focuses on a relevant cost decision. Which costs are relevant for the decision? How should they be taken into account?

Describes designing an advertising or promotion program to sustain the momentum on L'eggs successful market entry.

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

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).

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

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.

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.

At the conclusion of a small-scale pilot survey, management must decide whether to invest in a larger survey or terminate the project. The objective of the study is to use psychographic measurement techniques to study the alternative positions of cranberry sauce. Illustrates the methods and abilities of multivariate statistical procedures in survey data analysis and product positioning studies. A major question is whether the findings of the pilot work justify further expense and analysis. No special competence in statistics is required for discussion of the case.

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.

Although internationally recognized for quality design, the collaborative's billings have been on a plateau for four years and they are losing jobs to architects with sophisticated marketing practices. The main issue is how marketing can be integrated into a design partnership believing that formalized strategy and promotion interfere with creativity. Other issues include the problems of marketing a professional service, whether efficiency and quality can coexist, how architects are selected, and defining an architect's product.

Requires an analysis of both the process flows and the production control system used in a cranberry receiving plant. A rewritten version of an earlier case.

Deals with the use of critical path method for the construction of remote control building, which is part of a water purification system. Discusses the necessity of determining the shortest possible time in which a job could be done without spending more money. Case uses "activity on node" diagram. Based on Space Constructors Inc.

Provides strategic analysis and recommendations.

Presents the problem facing a newly appointed high school principal. Raises issues about interpersonal and group behavior including lack of open conflict resolution and the need to intervene in an interpersonal conflict. Also raises the issue of intergroup conflict between headmasters and department chairmen, as well as value questions concerning the need for discipline and innovation. Discusses several structural questions concerning the existing "house system" organization.

Growth in the banking field has produced new demands on the "back office." Traditional management practices in check processing and paper handling operations have resulted in ten years of cost increases and quality loss. New manager of the operating group faces an action question--can he turn the back office into a production-oriented factory?