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The comptroller at Four Star Fitness Club must set aside a financial reserve to cover possible refunds of initiation fees to new members. The comptroller has some historical data on refund payments to assist in estimating the size of the appropriate reserve.

Harry Lev was reviewing the recent sales reports for Bamberger's Department Store in an effort to assess whether or not the newly implemented Wednesday evening late openings had had a positive overall effect on sales. He was under some pressure to demonstrate that the sales during the extended hours were more than covering the added cost to the store of the late opening, since he had been instrumental in initiating this change despite strong employee resistance. If he could not clearly show a financial benefit, he could expect pressure to discontinue the experiment. (A Microsoft Excel data file is available for use with this case, product 7A99E006.)

The issue before the directors meeting of LanCo Catalogue Sales was the high level of product returns that the company was experiencing. These product returns were eroding profitability at a remarkable rate, however the directors were split into two camps over what to do about the problem. One camp believed that speeding up shipments would reduce the returned merchandise, while the other camp believed that this would merely increase shipping costs and reduce profits even further. LanCo management was determined that the returns problem must first be understood, then actions must be taken to reduce returns, in order to improve the profitability of the company. (A Microsoft Excel data file is available for use with this case, product 7A99E007.)

The proprietor of the Brooke Road 7-11 store was dismayed to learn of the shop's dismal financial performance the previous year. She knew that an employee had been caught stealing from the shop and had admitted taking $500 from the till over a period of about 4 months. The poor financial performance of the store could be explained if the actual amount stolen had been much larger than $500. The proprietor assembled weekly sales records in the hope of estimating the full impact and magnitude of the thefts. (A Microsoft Excel data file is available for use with this case, product 7A99E009.)

Ford Motor Company was concerned that five tug operators, each costing $100,000 annually over three shifts, was too many. Colin Cruji was hired to look into the tug operators and see if Ford could eliminate one or more of the five positions per shift. A supplement to this case is available, titled Ford Motor Company and Cruji Management Consulting (B), case 9A99E014. (A Microsoft Excel data file is available for use with this case, product 7A99E013.)

The Acer Group is one of the world's largest PC and computer component manufacturers. The vice-president of Global Operations is pondering whether the timing and environment is conducive for Acer, based in Taiwan, to commence full-scale manufacturing operations in the Chinese mainland. Students are asked to examine the criteria on which Acer should base their decision to manufacture overseas, and in so doing, create the framework for a corporation's global manufacturing strategy. The teaching objectives also include having students consider the political, economic and social environments of a global manufacturing strategy. A related case entitled Acer Group's R & D Strategy - The China Decision (9A99M007) is also available.

Domglas Inc. must estimate the potential demand for ready-to-eat soup packaged in glass jars for the convenience of microwave-oven owners. (A Microsoft Excel data file is available for use with this case, product 7A80E002.)

The plant manager for Noram Foods was considering the impact of changing Noram's policy on package weight. Noram Foods in Canada had an enviable record of sound financial performance, although there had been a period of declining profits when the Canadian economy suffered under conditions of high unemployment, high interest rates, and high inflation. Leo Marsden believed the weight control issue represented a major opportunity for re-evaluation and increased performance.

The general manager of a division of an international cosmetic company must decide hoe to deal with a lack of response to a memo. The general manager wrote to the vice-president of operations to elicit some response from Operations that would lead to better communication between marketing and operations. It is now only three days until the next meeting between operations and marketing and the vice-president has made no response to the general manager's memo.

The entrepreneur and owner of Designer Classics Carpet, is deciding upon future growth opportunities for his company. Opportunities for forward and background integration have been identified. As well, the acquisition of a firm manufacturing a related product line is being considered. He must decide upon priorities, direction and timing of all these moves.

An auditor is planning the audit of a new client, Acme Hardware. For preparing the audit plan, he becomes aware of the possibility that certain managers might be using accounting flexibility to aid them in qualifying for incentive bonuses based on profitability. The areas are inventory and advertising. The auditor must decide what action, if any, to take.

The president and the general manager have to make some quick decisions about how to deal with the media after an advertisement has offended the black community and caused angry complaints of racism. The company also wants to develop plans to avoid similar problems in the future.

The new vice-president for Kentucky Fried Chicken in southeast Asia, must weigh the growth benefits of investing in China with alternative opportunities in the region. He is at the exploratory stage of market research and is focusing his attention on four possible locations in China. He must also balance his own personal ambitions with the possibilities for failure, not only in China, but the rest of southeast Asia. (A 31-minute video is available with this case, Kentucky Fried Chicken in China - Video.) A follow-up case Kentucky Fried Chicken in China (B) is also available.

The vice-president, corporate and public affairs, at an insurance company has to prepare the next year's internal communications program at a time when the company is undergoing a revolution - an effort to improve service and profits through a radical organizational and cultural change. The small communications department has played a key role and tried new methods in the company's move toward empowerment and increased accountability. At this point, creating a communications strategy on a limited budget means choosing among priorities, but a recent survey of employee attitudes has provided some input into needs.

An expansion in the bottling plant of a brewery leads to a reassessment of the manual palletizing operation. It is possible to purchase expensive automatic equipment and a choice of makes is involved.

The newly-appointed general manager of Butler Metal Products was considering changes to his firm's shop floor organization. About two years earlier, his predecessor had switched from a traditional functional hierarchy to focused factories. Although the changes were accompanied by 35% reductions in inventories, throughput times and defect rates, there was concern that they would not be enough to assure Butler's survival in the economically-stressed automotive industry. The focused factories were struggling with conflicting demands for shared equipment and human resources. Did the factories need to be refocused, left alone, or reverted back to the old organization?

This case is an up-close look at the management of a large mining and smelting alliance in Australia. One partner is American, the other Australian. Although it is an equally owned venture, the Australians are the lead partners, but they are not doing a very good job. The Americans are frustrated by this, but uncertain as to how to influence their partner. The Americans also have been frustrated in their attempts to introduce a new technology to the mine and expand it. The case is an excellent vehicle for exploring the issue of management control and influence in joint ventures. Does having a lead partner make sense? What should be the role of each company vis-a-vis operating issues? Strategic issues?

This business game allows participants to make 12 scheduling decisions under conditions of demand uncertainty. It is played with groups of 3-5 participants and does not require a computer.

About 15 operators work in a simple hybrid batch-flow environment to produce the Earth Buddy novelty product. The case introduces the topic of process analysis. Sufficient information is presented to introduce and discuss the following concepts in an 80-minute class: capacity, throughput time, cycle time, bottleneck identification and resolution, and work-in-process inventory accumulation and draw-down. Issues that can be explored during the discussion include: shift scheduling, the impact of cross-training, batch versus flow production, rush orders, and the impact of defects on capacity. (An Extend simulation file is available for this case, Earth Buddy - Extend Simulation file.)

The business development manager for General Electric (GE) Canada, met with executives from GE Supply, a US-based distribution arm of GE. The purpose of the meeting was to discuss new business opportunities in energy management and efficiency. The business development manager had identified some opportunities for business development in Canada, while leveraging GE's strategic capabilities did not fit well with GE's corporate structure. He was keen to work with GE Supply but wanted to retain a high level of operating autonomy. The challenge was to put together an appropriate organizational structure and find a home for the new development idea. (A sequel to this case is available, titled GE Energy Management Initiative (B), case 9A94G006. A 12-minute video may also be purchased with this case, video 7A94G005.)