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Matching list of Harvard Business School Publishing cases for Certo, Modern Management, Ninth Edition (Prentice Hall, 2003) Includes reprints from Harvard Business Review (HBR) Every matching list provides only a partial list of relevant cases and articles from HBS Publishing. To explore alternatives, or to obtain more information on the items listed below, visit our web site at www.hbsp.harvard.edu/educators and use the searching functions. This map was prepared by an experienced editor at HBS Publishing, not by a teaching professor. Faculty at Harvard Business School were not involved in analyzing the textbook or selecting the cases. Case Title Institution, HBSP Product Number, Length, Teaching Note Geographical and Industry Setting, Company Size, Time Frame Abstract Chapter 1: Introduction to Management and Organizations N/A Chapter 2: Management Yesterday and Today Is Management Still a Science? HBR Reprint #92603 8p N/A Frederick Taylor's traditional scientific approach to management promised to provide managers with the capacity to predict and control the behavior of the complex organizations they led. But the world most managers now inhabit often appears to be unpredictable and even uncontrollable. In the face of this more volatile business environment, the old-style mechanisms of "scientific management" seem positively counterproductive. Just as managers have become more preoccupied with the volatility of the business environment, scientists have also become preoccupied with the inherent volatility--the "chaos" and "complexity"--of nature. They are developing new rules for complex behavior in physical systems that have intriguing parallels to the kind of organizational behaviors today's companies are trying to encourage Chapter 3: Corporate Social Responsibility and Business Ethics Corruption in International Business (A) HBS #701-128 10p B case #701-129 N/A Explores various aspects of corruption in international business. The first section provides a broad discussion of the ethical, business, and legal aspects of corruption. The second section provides a series of "caselets" that are designed to promote discussion of how students would act in particular
Transcript
Page 1: Matching list of Harvard Business School Publishing cases ... Modern Management text… · Matching list of Harvard Business School Publishing cases for ... Modern Management, Ninth

Matching list of Harvard Business School Publishing cases forCerto, Modern Management, Ninth Edition (Prentice Hall, 2003)

Includes reprints from Harvard Business Review (HBR)

Every matching list provides only a partial list of relevant cases and articles from HBSPublishing. To explore alternatives, or to obtain more information on the items listedbelow, visit our web site at www.hbsp.harvard.edu/educators and use the searchingfunctions.

This map was prepared by an experienced editor at HBS Publishing, not by a teachingprofessor. Faculty at Harvard Business School were not involved in analyzing thetextbook or selecting the cases.

Case Title Institution,HBSPProductNumber,Length,TeachingNote

Geographical andIndustry Setting,Company Size,Time Frame

Abstract

Chapter 1: Introduction to Management andOrganizationsN/A

Chapter 2: Management Yesterday and TodayIs ManagementStill a Science?

HBR Reprint#926038p

N/A Frederick Taylor's traditional scientific approachto management promised to provide managerswith the capacity to predict and control thebehavior of the complex organizations they led.But the world most managers now inhabit oftenappears to be unpredictable and evenuncontrollable. In the face of this more volatilebusiness environment, the old-style mechanisms of"scientific management" seem positivelycounterproductive. Just as managers have becomemore preoccupied with the volatility of thebusiness environment, scientists have also becomepreoccupied with the inherent volatility--the"chaos" and "complexity"--of nature. They aredeveloping new rules for complex behavior inphysical systems that have intriguing parallels tothe kind of organizational behaviors today'scompanies are trying to encourage

Chapter 3: Corporate Social Responsibility andBusiness EthicsCorruption inInternationalBusiness (A)

HBS#701-12810pB case#701-129

N/A Explores various aspects of corruption ininternational business. The first section provides abroad discussion of the ethical, business, and legalaspects of corruption. The second section providesa series of "caselets" that are designed to promotediscussion of how students would act in particular

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situations, as well as the potential costs andbenefits of these actions.

SustainableDevelopment andSociallyResponsibleInvesting: ABBin 2000

HBS#701-08237p

Switzerland,electrical equipment,161,000 employees,1998-2000

Several investment firms and mutual fundsposition themselves as providers or facilitators ofopportunities for socially responsible investment.This case addresses the impact of these firms onpublicly traded companies. Focuses on managersat ABB, a large multinational based in Switzerlandthat has tried to be a leader in integratingprinciples of sustainable development into itsbusiness strategies. ABB's managers now need todecide what sorts of relationships they would liketo have with the firms in the socially responsibleinvestment community, and the extent to whichthey ought to take the preferences of these firmsinto account in tailoring their business strategies.

Tim Hertach atGL Consulting(A)

HBS#800-15312pTN #801-029

New Jersey,consulting, 1,000employees, 1999

Ten years into his career after graduating frombusiness school, Tim Hertach discovers billingirregularities at his consulting firm. He mustdecide whether (and how) to challenge seniormanagement or to stay quiet and protect his career.

BectonDickinson:Ethics andBusinessPractices (A)

HBS#399-05527p

U.S., Asia, LatinAmerican, MiddleEast, medical anddiagnostic services,19,000 employees,1997

Becton Dickinson's Global One-CompanyOperations Group must decide on the company'sglobal policy on gifts, gratuities, and businessentertainment. A key issue is whether the policyshould be established centrally and made uniformworldwide or whether it should be decided locally,depending on local circumstances and practices.The case contains numerous examples of troublingsituations drawn from different regions of theworld, as well as background information ongrowing anticorruption efforts worldwide.

What's aBusiness For?

HBR Reprint#r0212c6p

N/A In the wake of the recent corporate scandals, it'stime to reconsider the assumptions underlyingAmerican-style stock-market capitalism. Thatheady doctrine--in which the market is king,success is measured in terms of shareholder value,and profits are an end in themselves--enrapturedAmerica for a generation, spread to Britain duringthe 1980s, and recently began to gain acceptancein Continental Europe. But now, many wonderwhether the American model is corrupt. TheAmerican scandals are not just a matter of dubiouspersonal ethics or of rogue companies fudging theodd billion. And the cure for the problems will notcome solely from tougher regulations. We mustalso ask more fundamental questions: Whom andwhat is a business for? And are traditionalownership and governance structures suited to theknowledge economy? According to corporate law,a company's financiers are its owners, andemployees are treated as property and recorded ascosts. But whereas that might have been true in theearly days of industry, it does not reflect today'sreality. Now a company's assets are increasinglyfound in the employees who contribute their time

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and talents rather than in the stockholders whotemporarily contribute their money. The languageand measures of business must be reversed. In aknowledge economy, a good business is acommunity with a purpose, not a piece of property.

Chapter 4: Management and DiversityMillenniumMedia, Inc. andJohn Voorenberg

HBS#400-03210p

New York, media,1,200 employees

Millenium Media's CEO reviews the companydiversity report and considers the challenges ofmaintaining a diverse workforce in light of thenews that three individuals, two of whom arepeople of color, are leaving for opportunities witha competitor. Helps students understand the linkbetween supervisor behavior, diversity, andemployee retention.

Yvette Hyater-Adams and TerryLarsen atCoreStateFinancial Corp.

HBS#401-02315p

Philadelphia, PA,banking, 2,000employees, 1993-1998

Yvette Hyater-Adams, senior VP of CoreStatesBank, and CEO Terry Larsen reflect on their five-year mentor-protege relationship. They describehow building a relationship across both race andgender was challenging and ultimately highlyrewarding. Their relationship develops in thecontext of a major culture change that Hyater-Adams and Larsen were leading the organizationthrough. This case discusses how their relationshipimpacted the organization and the change process.Allows students to develop a deep appreciation forthe initiation and development of mentoringrelationships. Also explores the dynamics of cross-race and cross-gender work relationships.

LotusDevelopmentCorp.: SpousalEquivalents (A)

HBS#394-19718pTN #396-020

Cambridge, MA,computers, 2,500employees, 1989

A group of Lotus employees propose extending allhealth care and other benefits to the spousalequivalents of lesbian and gay employees. Thevice president of human resources considers theproposal during a reorganization and period offinancial uncertainty. Provides an opportunity todiscuss the limits and competitive implications ofa business's appropriate role in responding todiverse employee needs.

Avon Products(A)

HBS#301-05922p(B) case#301-060

Global (Mexico, NewYork), beautyproducts, $5 billionrevenues, 1992-98

The general manager of Avon Mexico, FernandoLezama, must decide whether to promote a womanto the position of vice president of sales. Ifappointed, the candidate would be the first femalein all of Latin America to hold an executiveposition and one of the first women in Mexico toattain this level of responsibility. Lezama's all-male executive team has doubts about thecandidate's readiness but Lezama is also cognizantof Avon's global vision which calls for theadvancement of women at all levels of theorganization. Earlier in the year, Avon Mexico hadcompleted an exercise called "appreciativeinquiry" aimed at enhancing gender relations in theworkforce. Teaching Purpose: To examine thecultural aspects of managing in the Mexicanenvironment and to illustrate "appreciativeinquiry" as part of a cultural change process.

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Laura Wollenand ARPCO, Inc.

HBS#393-0039pTN #393-031

Global, electricalappliance and homemachinery, $2.5billion revenues,1990

Laura Wollen, a group marketing director forARPCO, Inc., must decide whether to recommenda high performance product manager for a choiceposition overseas. The supervisor overseas resiststhe hire because of the candidate's race and Wollenfears that insisting will set her candidate up forfailure. On the other hand, she believes she is thebest candidate and should not be denied theposition.

Kurt Landgrafand DuPontMerckPharmaceuticalCo. (A)

HBS#394-20224p(B) case#395-035TN #396-018

Wilmington, DE;pharmaceuticals; $1billion revenues;1993-94

Kurt Landgraf, newly named CEO of Du PontMerck Pharmaceutical Co., addresses complaintsof discrimination from African-Americanscientists in R&D during a significant downsizingand dramatic changes within the pharmaceuticalindustry. Teaching Purpose: Discusses howorganizations can effectively address hiring andpromotion concerns of minority groups andwomen.

A Brush withAIDS (A)

HBS#394-0588p(B) case#394-059TN #394-180

Health care products,1989

A product manager at a health products companyis responsible for marketing sharps containers,which hospitals use to store used needles in orderto protect medical workers from being prickedwith AIDS-contaminated needles. After hospitalsreport repeated instances of needles penetrating thecontainer walls, she realizes the defective productposes a health hazard for medical workers. Theproduct manager must decide whether or not to fixthe containers when doing so would significantlydecrease her profit performance for the year. Thecompany mission statement stresses qualitycommitment to customers, but all compensationand advancement incentives are geared solelytoward profit objectives. Gives students a chanceto think about ethical dilemmas they are likely toface in the business world. Is a manager morallydelegated to take active steps to protect the safetyof his or her customer when neither the law nor thecompany is compelling him or her to do so?

Dear WhiteBoss...

HBR Reprint#r0211e5p

N/A It's easy for white managers to assume that theircolleagues of color face the same basic challengesthey do. On one level, that's true--the work itself isthe same. But on another level, African-Americanmanagers often contend with an atmosphere oftension, instability, and distrust that can be sofrustrating they lose the desire to contribute fully.Their white bosses and coworkers are simplyunaware of the "miasma" and are often puzzledwhen African-Americans quit apparently for noreason or seemingly overreact to a minor incident.This portrayal of what it's like to be different in theworkplace takes the form of a fictional letter froma black manager to a white boss. The letter, basedon interviews and surveys the authors conductedwith hundreds of mid- to senior-level African-American managers, is not about the lack of rolemodels or mentors of color or any of the other

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barriers that limit opportunities for blacks incorporate America. Instead, the letter sheds lighton the realities that lurk below the surface forblack managers--the feeling that they leave somepart of their identities at home and the sometimessubtle and often systemic racial biases that inhibitand alienate African-Americans. It should berequired reading for all white executives who don'twant talent to slip through their fingers.

Chapter 5: Managing in the Global ArenaPhilips vs.Matsushita: ANew Century, aNew Round

HBS#302-04920p

Global, Europe,Japan, consumerelectronics, 270,000employees, 1970-2001

Describes the development of the internationalstrategies and organizations of two majorcompetitors in the global consumer electronicsindustry. The history of both companies is tracedand their changing strategic postures andorganizational capabilities are documented.Particular attention is given to the majorrestructuring each company is forced to undertakeas its competitive position is eroded. Illustrateshow global competitiveness depends onorganizational capability, the difficulty ofovercoming deeply embedded administrativeheritage, and the limitations of both classic"multinational" and "global" models.

The DaimlerChryslerCommercialVehicles Division

Stanford#IB2724p

Global, automobiles,416,000 employees,1998

The day before Daimler-Benz would officiallymerge with Chrysler, Dr. Kurt Lauk, head ofDaimler-Benz' commercial vehicles division(CVD) reflected on the organizational changes hehad directed over the course of the previous twoyears to make CVD more competitive in an era ofindustry-wide globalization. To unite anextremely decentralized organizational structureat Daimler, Lauk initiated a worldwidereorganization and the integration of thecompany's manufacturing operations. Heencouraged individual units within CVD to lookfor collaborative opportunities that would enablethe division to realize global scale economies.Lauk was proud of his achievements but concernsovershadowed his satisfaction. Although theCVD was profitable overall, its Power Train Unitcontinued to lose money. In addition, Lauk wasconcerned about Daimler's progress in buildingadequate distribution channels in the Asianregion. Finally, Lauk considered the impact of themerger with Chrysler on CVD and the generaluncertainty concerning how a more centralizedorganization would affect the CVD.

Eli Lilly – 1998(B): EmergingGlobalOrganization

HBS#399-17415p

Global,pharmaceuticals,10,000 employees,1998

Examines major issues faced by Eli Lilly as itevaluates the appropriateness of a focused matrixorganization with extensive use of cross-functionalteams. Helps students appreciate the complexitiesof a global organization whereproduct/functional/geographic knowledge must beoptimized.

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Acer America:Development ofthe Aspire

HBS#399-01120pTN # 300-035

Global (UnitedStates, Taiwan),computers, $1.1billion revenues,1995-98

Follows the development, national launch, andglobal rollout of the Aspire, Acer's first newproduct developed outside Taiwan. Implementinga very promising new PC concept proveschallenging to Mike Culver and his U.S. team,who are plagued by coordination problem withexperts and resource managers in Taiwan.Leading the global rollout proves equallydifficult, with local managers wanting to makelocal adaptations. After 2.5 years of missedforecasts and unexpected losses, CEO Stan Shihmust decide whether to abandon the Aspire. Moreprofoundly, what changes does this failuresuggest for his radical "fast food" businessconcept and his "client server" organizationmodel? Teaching Purpose: To discuss thedevelopment and implementation of globalstrategy, to explore new models of globalorganization, and to examine the management ofheadquarter-subsidiary relations.

Avon Products(A)

HBS#301-05922p(B) case #301-060

Global (Mexico/New York, NY;beauty products; $5billion revenues;1992-98

The general manager of Avon Mexico, FernandoLezama, must decide whether to promote awoman to the position of vice president of sales.If appointed, the candidate would be the firstfemale in all of Latin America to hold anexecutive position and one of the first women inMexico to attain this level of responsibility.Lezama's all-male executive team has doubtsabout the candidate's readiness, but Lezama isalso cognizant of Avon's global vision, whichcalls for the advancement of women at all levels.Earlier in the year, the Avon Mexico organizationhad completed an exercise called "appreciativeinquiry" aimed at enhancing gender relations inthe workforce. Teaching Purpose: To examine thecultural aspects of managing in Mexico and toillustrate the use of "appreciative inquiry" as partof a cultural change process.

BRL Hardy:Globalizing anAustralian WineCompany

HBS#300-01820p TN #300-128

Australia/U.K., wine,1992-1998

Focuses on two new product launch decisionsfacing Christopher Carson, managing director ofBRL Hardy, Europe. Responsible for the Europeanoperations of a major Australian wine company,Carson has begun to globalize his strategy beyondselling the parent company's wines. After adifficult joint venture with a Chilean wine source,he is proposing to launch an Italian line of wines.His local team has also developed a newAustralian brand that would compete directly witha parent company's global brand rollout. Focuseson global strategy choices being made throughheadquarter-subsidiary negotiations that define theroles of country managers and global productmanagers.

Euro Disney: TheFirst 100 Days

HBS#693-01323p

Paris, entertainment,16,000 employees,1992

The Walt Disney Co. theme parks historically havethrived on the basis of a formula stressingexcellent customer service and a magnificent

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TN #693-082 physical environment. The formula has provensuccessful in Japan as well as the United States.With the controversial opening of Euro Disney inFrance, however, there has become reason todoubt the international appeal of the formula. Thecase documents issues involved with Euro Disney.Examines the transferability of a successful serviceconcept across international boundaries.

Go Global--orNo?

HBR Reprint#r0106a9p

N/A Only a few weeks ago, Greg McNally, the CEO ofsoftware start-up DataClear, had called an off-sitein Montana to celebrate his company's success inracking up $5 million in sales from its firstproduct, ClearCloud--a powerful data analysispackage. But that was before his talented andsuccessful head of sales, Susan Moskowski, gavehim the news about VisiDat, a British start-up thatwas testing a data analysis package of its own thatwas only weeks away from launch. "We need toagree on a strategy for dealing with this kind ofcompetition," Susan had told Greg. "If they startout as a global player, and we stay hunkered downin the U.S., they'll kill us." Because of that news,Greg had changed the agenda of the off-site,instead having Susan present the options for takingDataClear global. The meeting had taken placetwo weeks ago, at which point the consensus hadbeen to establish a European presence andprobably one in Japan. The only question seemedto be whether to do it from scratch or to formpartnerships with local players. Did DataClearreally need to go global? Should it instead expandinto different domestic markets? Should it do bothat once? Could the company afford to? Fourcommentators offer their advice in this fictionalcase study.

Chapter 6: Principles of PlanningStrategicPlanning at SunLife

HBS#301-08421p

Toronto, Canada,financial services,1,300 employees,2000

Describes the firm's strategic planning activitiesand focuses on the challenge of developingprocesses that enable the firm to improve the corebusiness as well as processes that foster thecreation of promising new business opportunities.Teaches students about how to design differenttypes of strategy formulation to accomplishdifferent objectives.

Blinds To Go:Invading theSunshine State

Ivey School,U. of WesternOntario#901D0421p

Canada, windowcoverings, small,2000

Blinds To Go (BTG), a Montreal headquarteredproducer of made-to-order window coverings, hadmade the decision to enter the Florida market byopening eight retail stores. As a result of thisdecision, the senior vice president of operations forBTG was faced with the dilemma of deciding ifand when an assembly plant should be built tosupport these and future Florida retail stores. Themost recent plant, built in Lakewood, NJ, hadexperienced operational problems during its start-up, resulting in the eventual replacement of most

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of the supervisory staff and a significant portion ofthe plant employees. This led to additional start-upcosts and customer service problems. Faced withthis expansion into Florida, the senior vicepresident set about devising an operating plan thatwould achieve the goals of the Florida expansionwithout the growing pains of past efforts. As thestores were to be opened in six months, a planwould have to be finalized soon.

Maureen Frye atQuaker Steel andAlloy Corp.

HBS#496-02412p

Pennsylvania,metals, large, 1995

Maureen Frye, assistant product manager atQuaker Steel and Alloy Corp., is asked toimplement an action plan for changing the callpattern of the salesforce. Currently the salesforceis spending too much time on small accounts.Earlier Frye attempted to change their call patternswithout success. Now with the express callmandate of top management she has to present aplan that will work.

Tailored, NotBenchmarked: AFresh Look atCorporatePlanning

HBR Reprint992027p

N/A In today's competitive markets, every company hasan action plan. Yet for most managers, theprocesses used to create these plans don't work.The root of the problem, suggests Campbell, maybe that too many companies benchmark theirprocesses and by doing so, prevent managers fromfocusing on what is unique to their situation. Goodplanning processes, the author argues, are notgeneric processes but ones in which both analytictechniques and organizational processes arecarefully tailored to the needs of individualbusinesses and to the skills of corporate managers.The author cites examples of three companies thathave successfully individualized their processes:Granada, Dow Chemical Company, and EmersonElectric. A mature electrical-products businesssuch as Emerson, he says, has different planningneeds than a fast-growing entertainment businesslike Granada or a highly cyclical chemicalsbusiness like Dow. Different chief executives mayhave different insights about how to go aboutadding value. Take the CEOs of Granada andDow. Both set tough targets to stretch theirbusinesses, but the way each CEO gets hismanagers to commit to his targets differsconsiderably. Bad planning can actively destroyvalue, the author says. It wastes people's time andmoney. It sends the wrong signals to managers. Itcan even lead managers to follow bad advice.That's why managers should go to the effort ofreexamining and possibly changing theircompany's planning process

Chapter 7: Making DecisionsAlaska Airlinesand Flight 261(A)

HBS#801-11316p

Seattle, WA, airline,14,000 employees,2000

Weeks after the crash of Alaska Airlines Flight261, 64 mechanics claim that they have been"pressured, threatened, and intimidated" intotaking shortcuts. After briefly describing Alaska

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Airlines' history and CEO John Kelly, the casedetails how the airline responded to the crash andthe resulting investigations. Also describes laborrelations between management and its largestunions. At the end of the case CEO Kelly preparesfor a news conference to respond to themechanics’ allegations. The case addresses crisismanagement, corporate diplomacy, labor relations,public relations, and transportation safety.

VictorySupermarkets:ExpansionStrategy?

HBS#59905420p

Massachusetts,grocery, $250 millionrevenues, 1750employees, 1998

Jay DiGeronimo, president of a 16-storesupermarket chain, is trying to decide the timingand method for expanding his chain. The family-owned company could continue in a maintenancemode, with each family member running one store.It could expand slowly using a new Market Squareconcept. Or it could try to double its size in thenext ten years. What are the costs and benefits ofeach approach? Should the company continueopening Market Squares, even though that formathas higher opening and operating expenses thanmore conventional operations? Teaching Purpose:The financial data allow students to understandhow supermarkets make money. The investmentquestions, from a financial as well as amerchandising point of view, create interestingtensions: Can a small operator compete against thenational and international supermarket chains byoffering higher-end differentiation?

Frasier (A) HBS13p#801-447B case# 801-448TN # 902-054

Burbank, CA;entertatinment; 2000-2001

In 2001, NBC entered into contract negotiationswith Paramount Television Group to keep the hitshow "Frasier" on the network. Paramount, thestudio that produced the show, threatened to move"Frasier" to CBS, Paramount's sister network, ifNBC did not agree to a substantially higher licensefee than the one it was currently paying. This casefollows Marc Graboff's (EVP of NBC West Coast)analysis of the situation. Teaching Purpose:Highlights core concepts such as BATNA, ZOPA,and reservation price in a real-world case.

Decision Makingat the Top: TheAll-Star SportsCatalog Division

HBS21p#398-061TN # 398-103

United States,retail/mail order,$800 millionrevenues, 1,000employees, 1997

Describes a senior management team's strategicdecision-making process. The division presidentfaces three options for redesigning the process toaddress several key concerns. The president hasextensive quantitative and qualitative data aboutthe process to guide him as he and the senior teamattempt to make improvements. Teaching Purpose:To teach students about how general managers candesign and shape decision-making processes, andhow these processes affect the quality of thechoice and the implementation

What You Don'tKnow AboutMakingDecisions

HBR Reprint#r0108g9p

N/A Most executives think of decision making as asingular event that occurs at a particular point intime. In reality, though, decision making is aprocess fraught with power plays, politics,personal nuances, and institutional history.Leaders who recognize this make far better

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decisions than those who persevere in the fantasythat decisions are events they alone control. Thatsaid, some decision-making processes are far moreeffective than others. Most often, participants usean advocacy process, possibly the least productiveway to get things done. They view decisionmaking as a contest, arguing passionately for theirpreferred solutions, presenting informationselectively, withholding relevant conflicting dataso they can make a convincing case, and standingfirm against opposition. Much more powerful is aninquiry process, in which people consider a varietyof options and work together to discover the bestsolution. Moving from advocacy to inquiryrequires careful attention to three critical factors:fostering constructive, rather than personal,conflict; making sure everyone knows that theirviewpoints are given serious consideration even ifthey are not ultimately accepted; and knowingwhen to bring deliberations to a close. The authorsdiscuss in detail strategies for moving from anadvocacy to an inquiry process, as well as forfostering productive conflict, true consideration,and timely closure. And they offer a frameworkfor assessing the effectiveness of your processwhile you're still in the middle of it. Decisionmaking is a job that lies at the very heart ofleadership and one that requires a genius forbalance: the ability to embrace the divergence thatmay characterize early discussions and to forge theunity needed for effective implementation.

Chapter 8: Strategic PlanningStrategicPlanning at SunLife

HBS# 301-08421p

Toronto, Canada;financial services;$1.3 billion revenues;1300 employees;2000

Describes the firm's strategic planning activitiesand focuses on the challenge of developingprocesses that enable the firm to improve the corebusiness as well as processes that foster thecreation of promising new business opportunities.Teaching Purpose: To teach students about how todesign different types of strategy formulation toaccomplish different objectives.

NewellCompany:CorporateStrategy

HBS#799-13922pTN #702-401

Illinois, consumerproducts, $3.3 billionrevenues, 32,000employees, 1998

In 1998, Newell Co., a manufacturer of low-tech,high-volume consumer goods, acquired CalphalonCorp., a high-end cookware company, andRubbermaid, a $2 billion manufacturer ofconsumer and commercial plastic products. Thecase focuses on Newell's strategy and itselaboration throughout the organization, as well asthe importance of selecting appropriateacquisitions to grow the company. Do Calphalonand Rubbermaid fit with the company's long-termstrategy of growth through acquisition andsuperior service to volume customers?

Edmunds.com(A)

HBS#701-02523p

Santa Monica, CA,Internet, 1997-2000

Edmund's began in 1966 as a publisher of new andused vehicle guides and grew into one of theleading third-party automotive Web sites of today.

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This case explores how Edmunds.com gained acompetitive edge using strategic partnerships andalliances, as well as careful product positioningand strategy implementation.

The Walt DisneyCo.: TheEntertainmentKing

HBS# 701-03527p

United States,entertainment, $25.4billion revenues,110,000 employees,1923-2000

The first ten pages of this case are comprised ofthe company's history, from 1923 to 2001. TheWalt years are described, as is the company'sdecline after his death and its resurgence underEisner. The last five pages are devoted to Eisner'sstrategic challenges in 2001: managing synergy,managing the brand, and managing creativity.Students are asked to think about the keys toDisney's mid-1980s turnaround, about the properboundaries of the firm, and about what Disney'sstrategy should be beyond 2001.

Matching Dell HBS#799-15831pTN #700-084

Global, personalcomputers, 1998

After years of success with its vaunted "DirectModel" for computer manufacturing, marketing,and distribution, Dell Computer Corp. faces effortsby competitors to match its strategy. This casedescribes the evolution of the personal computerindustry, Dell's strategy, and efforts by Compaq,IBM, Hewlett-Packard, and Gateway 2000 tocapture the benefits of Dell's approach. Studentsare called on to formulate strategic plans of actionfor Dell and its various rivals. Permits anespecially detailed examination of imitation;illustrates how fit among activities andincompatibilities between competitive positionscan pose particularly high barriers to imitation.Can also be employed to illustrate competitoranalysis, the evolution of industry structure, andrelative cost analysis.

The Pitfalls ofParenting MatureCompanies

HBR Reprint#9650810p

N/A Jack Marlowe, Sargon Corp.'s president, iswrestling with one of the most intractableproblems he has dealt with since joining thecompany: what to do about Arcell, Sargon'smature household appliances unit, and CharlieCrescent, its president. CEO Hal Hestnes andMarlowe are forging a new identity for Sargon--formerly a small defense contractor--as adiversified manufacturer. Sargon is counting onArcell's unit to provide the lion's share of themoney for the company's investment in its future.Marlowe has made it clear to Crescent that heexpects Arcell to run lean and mean. And Crescenthas said that he understands. But his actions don'tshow it. He keeps wanting to plow his profits backinto Arcell. Marlowe faces several questions:Should he replace Crescent? If so, where should heput this valued employee? Wouldn't whoeverreplaced Crescent be equally frustrated at havingto lead a unit that the company considers a cashcow? Four experts analyze Marlow's problem inthis fictitious case study.

Chapter 9: Plans and Planning Tools

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Merchandising atNine West RetailStores

HBS#698-09817pTN #601-148

United States,footwear retailing,$1.8 billion revenues,1998

Describes the merchandising decision process(organization, structure, and incentives) at NineWest retail stores, a large footwear retailer in theUnited States. Also describes changes currentlyoccurring at Nine West and thus provides a contextin which students can recommend changes to themerchandising process and the structure of themerchandising organization. Teaching Purpose: Toexplain how merchandising decisions are made ata fashion retailer and to explore how changes inthe environment will impact the merchandisingorganization.

CompUSA HBS#197-10124p

United States,computer retailing,$3.8 billion revenues,1980-1996

CompUSA was performing poorly until newmanagement reorganized and redirected thebusiness. CompUSA became the #1 retailer in itsindustry. Management lays out its future plans.Teaching Purpose: Is CompUSA's new businessstrategy manageable? Is the old one sustainable?Evaluates financial performance.

Clarkson LumberCo.

HBS#297-0286pTN #297-076

United States, retaillumber, $3millionrevenues, 11employees, 1991

The owner of a rapidly growing retail lumbercompany is considering the financial implicationsof continued rapid growth. The magnitude of thecompany's future financing requirements must beassessed in the context of the company's access tobank finance and/or equity finance. TeachingPurpose: Development of skills in financialanalysis, financial forecasting, and financialplanning. A rewritten version of an earlier case.

Case of theColored Post-ItNotes

HBS#897-0693p

Cambridge, MA;education

Shows an example of how policies aboutbudgeting and resource decisions are commonlymisallocated. Teaching Purpose: To discuss thecommon types of policies and control systems thatare not set up efficiently.

PrestigeTelephone Co.

HBS#197-0974pTN #197-098

United States,telecommunications,1997

An independent regulated telephone company hasestablished a computer services subsidiary thatseems to remain unprofitable. Managers mustdetermine whether it is profitable or not andconsider changes in pricing or promotion thatmight improve profitability. Teaching Purpose: Tointroduce concepts of relevant costs, contribution,and breakeven analysis. A rewritten version of anearlier case

Pioneer Hi-BredInternational,Inc.: SupplyManagement

HBS#898-23815p(B) case#898-239TN #899-208

Des Moines, IA;agribusiness; $1.7billion revenues;1997

Depicts the supply-management practices--including planning, production, and distribution--at Pioneer Hi-Bred International, the world's leaderin the genetically engineered hybrid crop seedindustry. Set in the context of a supply-management planning meeting, it revealsconflicting considerations in setting policies forproduction (what, how much, and where to plant)and distribution. These considerations includecosts, customer service, the vicissitudes of farmproduction, market uncertainties, and corporateculture. Since the issues are viewed from threeindependent perspectives--planning, production,and distribution--the case lends itself to role

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playing. Teaching Purpose: 1) To consider thechallenges in managing the production, inventory,and distribution functions in a large, complexagribusiness firm. 2) To demonstrate the role ofinventory management in supply management, andits relationship with production, marketing, andcustomer service.

Post-ProjectAppraisals Pay

HBR Reprint#872045p

N/A Since 1977, British Petroleum (BP) has operated apost-project appraisal unit - a team of insideanalysts and investigators who scrutinize projectsseveral years after they have been completed tolearn why they succeeded or misfired. Theappraisal process has helped managers be moreaccurate in developing project proposals and moreefficient in implementing them. At BP, everyproject generates a return on investment at least ashigh as that in the project's forecast.

Chapter 10: Fundamentals of OrganizingNovartis Pharma:The BusinessUnit Model

HBS#101-03020p

Switzerland,pharmaceuticals, $21billion revenues,70,000 employees,2000

In June 2000, Novartis reorganized itspharmaceutical business to form global businessunits in oncology, transplantation,ophthalmology, and mature products. Theremaining products (primary care products) weremanaged as before within global functions (R&D,marketing, etc.) The new organization created amatrix structure and new roles for heads ofbusiness functions, CEOs of new business units,and country managers. Teaching Purpose: Toexplore the reasons for Novartis's reorganizinginto the new matrix structure, the tensions andchallenges the new structure creates, and theculture and accountability needed to make thenew structure work.

Polycom, Inc.:VisualizingCulture

HBS#601-07316p

United States,telecommunications,$500 million revenues,2000

Polycom is a rapidly growing maker of videoconferencing and teleconferencing equipment.Management is attempting to use "natural workgroups" as an organizing mechanism, and to buildinto the culture implicit rules that will causedesired behaviors to be self-policing. TeachingPurpose: To explore organizational forms thatmight robustly handle continued growth.

Crunch HBS#899-23323pTN #800-146

New York, NY;fitness; $20 millionrevenues; 1997-99

Entrepreneur Doug Levine runs a fitnesscompany with an incredibly powerful brand. Hiscompany leverages the brand to expand, both interms of facilities and lines of business. But hemay need to make significant organizationalchanges in order to continue the growth.Teaching Purpose: To illustrate the stepsnecessary to transition from an entrepreneurial,small company to a professionally managed,medium-sized one.

SMA: Micro-ElectronicProducts Division

HBS#400-03419p

Switzerland,electronicmanufacturing, 1200employees, 1990

Describes a division of SMA with financial andorganizational problems. Conflict and lack ofcoordination exist between functional groups.Employees lack a sense of direction and morale is

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low. The cause of these problems is found in achange in business environment followed bychange in organization and management.Teaching Purpose: Can be used for analysis oforganization-environment relationships andaction planning for change and environment. Arewritten version of an earlier case.

USA TODAY:Pursuing theNetwork Strategy(A)

HBS#402-01018p(B) case#402-011

Virginia, newspaper,$700 millionrevenues, 3000employees, 2000

Describes the evolution of USA TODAY Online,the electronic version of the newspaper, withinthe organizational structure of the newspaper.Describes the tensions and issues that developand the pressure from the Online division to bespun off. At the same time, CEO Tom Curleysees a greater strategic need for integration. Posesthe question of what degree/type of strategicintegration is required, what degree oforganizational integration this implies, and how itcan be achieved. Teaching Purpose: Exposesstudents to difficult issues surroundingintegration when two organizational units are sodifferent and explores the ambidextrousorganization.

Do You Have aWell-DesignedOrganization?

HBR Reprint#r0203k7p

N/A For most companies, organization design isneither a science nor an art; it's an oxymoron.Organizational structures evolve in fits and starts,shaped more by politics than by policies.Although most executives can sense when theirorganization designs are not working well, fewtake meaningful action, partly because they lack apractical framework to guide them. The authorsof this article provide just such a framework; theypresent nine tests that can be used either toevaluate an existing organization design or createa new one. Four "fit" tests offer an initial screen:The market advantage test asks whether a designdirects sufficient management attention to thecompany's sources of competitive advantage; theparenting advantage test determines whether thedesign gives enough attention to the corporate-level activities that provide real value to thecompany; the people test shows whether thedesign reflects the employees' strengths; and thefeasibility test looks at constraints that mayimpede implementation. Five "good design" testscan help a company refine its prospective design.The specialist cultures test ensures that there'ssufficient insulation for units that need to bedifferent from the prevailing culture; the difficult-links test determines whether a design offerssolutions for potentially problematic unit-to-unitlinks; the redundant-hierarchy test asks whetherthe design has too many parent levels; theaccountability test looks at whether every unit hassuitable controls; and the flexibility test ensuresthat the design lets the company adapt to change.Once a design is altered, the tests should be

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repeated. Organizational decisions are inevitablycomplex, and tweaking one part of the designmay produce unanticipated consequenceselsewhere.

Chapter 11: Responsibility, Authority, and DelegationThe Ritz-CarltonHotel Company

HBS#601-16331pTN #602-113

Washington, DC;hospitality; $1.5billion revenues;18,000 employees,2000

In just seven days, The Ritz-Carlton transformsnewly hired employees into "Ladies andGentlemen Serving Ladies and Gentlemen." Thecase details a new hotel launch, focusing on theunique blend of leadership, quality processes, andvalues of self-respect and dignity, to createaward-winning service. Teaching Purpose:Allows students to examine innovation andimprovement in a service industry. Raisesquestions of when and how to innovate in asuccessful service operating system and thechallenges of innovation for a brand built oncustomer experience. Teaching points include therole of leadership and values in creating a cultureof service and the need to manage the tensionbetween standardized quality procedures and thecultivation of empowered employees who cancustomize each interaction to meet the needs oftheir customers.

Jack Stack (A) BusinessEnterpriseTrust#993-009

Springfield, MO;diesel engineremanufacturing; $70million revenues

Describes Jack Stack's efforts to revive a dieselengine remanufacturing plant owned byInternational Harvester. Stack engineers aleveraged buyout of the factory by its managers.He then implements a radical system formanaging the company, through which everyemployee is trained to read complete financialreports of the company and given weeklyoperating data. In this way, they can see in detailhow the company is progressing. TeachingPurpose: May be used in Human Resources,Organizational Behavior, Strategic Management,and Entrepreneurship courses to help studentsexplore: 1) worker empowerment and relatedhuman resources issues; 2) the impact of thedisclosure of company data on corporate strategy;3) how an entrepreneur engineers a leveragedbuyout; 4) the revitalization of "rust-belt"facilities; and 5) the role of worker empowermentin entrepreneurship.

CambridgeConsultingGroup: BobAnderson

HBS5p#496-023

Boston, MA;consulting; $85million revenues

Describes the situation facing the head of a rapidlygrowing industry-focused group within aconsulting company. Highlights the dilemmas ofbeing a "producing manager" (i.e., a professionalwho has both individual production as well asmanagement responsibilities). Issues raisedinclude: delegation, developing subordinates,developing an agenda, and building anorganization. Teaching Purpose: Demonstratesdilemmas of the producing manager's role.

J.C. Penney HBS Dallas, TX; retailing; J.C. Penney utilized sophisticated technology to

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31p#596-102

$21 billion revenues;1990-1995

preserve the company's tradition ofdecentralization, which gave the stores a strongvoice in selecting inventory. The benefits gainedfrom local market knowledge, however, had tooutweigh the foregone savings from decreasedvendor leverage and speed. J.C. Penney executivesrealized that technology alone was not adequate toensure effective merchandising. Looking ahead,they wondered what further changes couldcontribute to the goal of becoming an even moresuccessful national department store chain. Wouldthe balance between central and storeresponsibility have to be additionally adjusted tocompete effectively with increasingly morecentrally run retailers?

BalancingCorporate Power:A New FederalistPaper

HBR Reprint#926049p

N/A Given that organizations are seen more and moreas minisocieties, the prospect of applying politicalprinciples to management makes a great deal ofsense. Federalism is particularly appropriatebecause it offers a well-recognized system fordealing with paradoxes of power and control: theneed to make things big by keeping them small; toencourage autonomy but within bounds; and tocombine variety and shared purpose. Federalismresponds to these paradoxes by balancing poweramong those in the center of the organization,those in the centers of expertise, and those in thecenter of the action--the operating businesses.Federalism avoids the risks of autocracy and theovercontrol of a central bureaucracy. It ensures ameasure of democracy and creates a "dispersedcenter" that is more a network than a place.McKinsey Award Winner.

Chapter 12: Managing Human ResourcesSouthwestAirlines: UsingHumanResources forCompetitiveAdvantage (A)

Stanford#HR1A24p(B) case#HR1BTN #HR1T

United States,airlines, 12,000employees, 1994

In 1994 both United Airlines and ContinentalAirlines launched low-cost airlines-within-an-airline to compete with Southwest Airlines. From1991 until 1993 Southwest had increased itsmarket share of the critical West Coast marketfrom 26% to 45%. This case considers howSouthwest had developed a sustainablecompetitive advantage and emphasizes the role ofhuman resources as a lever for the successfulimplementation of strategy. Asks whethercompetitors can successfully imitate the Southwestapproach.

HumanResources atHewlett-Packard(A)

HBS#495-05127p(B) case#495-052TN#497-022

California, high tech,$25 billion revenues,90,000 employees,1979-92

Provides an overview of the human resourcepolicies and practices applied by Hewlett-Packard(HP). Discusses HP's reactions as an organizationto changes in its business environment. As such,it is an opportunity to analyze HP's practices, andhow they have been affected through the years inall four policy areas: stakeholder influence, flows,rewards, and work systems.

The SAS Stanford North Carolina, The SAS Institute is a large, growing software

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Institute: ADifferentApproach toIncentives andPeopleManagementPractices in theSoftware Industy

#HR617p

software, $750 millionrevenues, 1997

company headquartered in the Research Trianglein North Carolina. Founded more than 25 yearsago, it has evolved a unique approach, given itsindustry, to developing and retaining talentincluding using no stock options or phantomstock and not paying its salespeople oncommission. The CEO and Vice President ofHuman Resources must decide how well theircurrent management practices will continue toserve them as the company gains greater visibilityand faces an increasingly competitive labormarket.

Wolfgang Kellerat Konigsbrau-Hellas A.E. (A)

HBS#498-04518pTN #400-069

Europe, brewery Raises issues concerning performance evaluation,performance appraisal, managing ineffectiveperformance, and conflicts in management style.

The Firmwide360-degreePerformanceEvaluationProcess atMorgan Stanley

HBS#498-05316pTN #400-078

New York, NY,investment banking,2,000 employees,1993-1995

Describes Morgan Stanley's firmwide, 360-degreeperformance evaluation process. Evaluation formsare included as exhibits.

How to LoseYour StarPerformerWithout LosingCustomers, Too

HBR Reprint#r0110g9p

N/A It's bad enough to lose a trusted employee whoworks well within your organization, but when youlose a star performer who has built up strongcustomer relationships, something else is at stake:The star's customers may also walk out the door.In a two-year study of more than 200 people from57 companies, Neeli Bendapudi and Robert Leonefound that most strategies to keep customers whenstars leave are largely ineffective because theygrow out of a company's perspective, not acustomer's. The authors asked customers how theyfelt and discovered three main concerns. First,customers can become attached to a particular keycontact employee, and if that person leaves, theywonder whether service will suffer. You can forgea broader relationship by ensuring that customersinteract with many employees, using techniqueslike deploying teams, rotating staff, and offeringone-stop shopping. Second, customers fear that areplacement won't be as good as the employee wholeft. You can combat this by stressing the qualityof all your employees--not just superstars.Publicize your hiring practices, training, andemployees' achievements. Third, customers wantinformation about the changeover and how youwill manage the transition. Communicate theidentity of a replacement in advance of adeparture, and have the outgoing employeeintroduce the new person. Addressing all areas ofcustomer concern in concert tells customers thatyou value their business and that you deserve tokeep it. In the article, the authors also include ascorecard to rate your company on how well youare protecting customer relationships when

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employee turnover occurs.

Chapter 13: Organizational Change and StressCorning--1983-96:Transition at theTop

HBS#401-03430pFollow-oncase#401-035

Corning, NY; $5billion revenues;20,000 employees;1983-96

Focuses on Jamie Houghton's efforts to revitalizeCorning from 1983-96, including thedevelopment of a very strong set of values andculture. The issue centers around RogerAckerman's rise to president then chairman/CEO,and his drive to both change the businessstrategically/financially and develop a newculture to support this change. Teaching Purpose:Demonstrates importance of fit among seniorteam, culture, strategy, and organization, and howchange in one requires change in others. Getsstudents to think through details of implementingculture change.

Andy Chew atSiemens Nixdorf:Change from theMiddle

HBS#396-20412p

Germany, computers,1995

Andy Chew, a British manager reassigned toGermany by a large German computer company,is in the middle of carrying out a project as adesignated "change agent" in a program toreshape the culture toward one that is moreentrepreneurial for success as a nimble globalcompetitor. He is still uncertain of his support.

What's the BIGIdea?

HBS#602-10522p

Manchester, NH;kids/toys; $200,000revenues; 10employees; 2001

CEO Michael Collins must decide if and how aprocess he developed to further innovation in thekids' industry could port over to other industries.The process was based on Collins' experiences asan inventor and as a venture capitalist, and itallowed his company to be an intermediarybetween inventors and innovation-seekingcompanies. The process seemed to be workingquite well in the kids' industry and Collins had todecide what would "travel" to a different vertical.Teaching Purpose: Demonstrates how innovationthat might not happen internal to a company canhappen once it is removed from a company'sprocesses. Also raises questions as to whether youcan develop a process to identify good inventionideas or whether it is an "art."

Napster andMP3: Redefiningthe MusicIndustry

Ivey/UWO#901M02TN #801M02

Global,internet/music, 2000

The music industry has changed dramatically as aresult of technological and business innovationsthat have transformed how music is acquired, andhow value is created and distributed. Napster, Inc.operated one of several Web sites that allowedInternet users free access to MP3 music files--which eventually led to lawsuits around issues ofthe protection of intellectual capital. These issueslead to the examination of the forces at play in thetransformation of the music industry, the strategicalternatives for players in the industry and thelegal context underpinning the strategicalternatives, with a particular focus on theprotection of intellectual capital.

Change WithoutPain

HBR Reprint#r004015p

N/A Change or perish is a corporate truism, but so is itsunhappy corollary: many companies change andperish. The process of change can tear an

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organization apart. Drawing on his research overten years, the author suggests that companiesalternate major change initiatives with carefullypaced periods of smaller, organic change, usingprocesses he calls tinkering and kludging(kludging is tinkering on a large scale). The resultis dynamic stability, which allows change withoutfatal pain. Citing examples from General Electricto Barnesandnoble.com, the author describesdynamic stability as a process of continual butrelatively small reconfigurations of existingpractices and business models rather than thecreation of new ones. As they tinker and kludge,successful companies would be wise to followthese four guidelines: reward shamelessborrowing; appoint a chief memory officer whocan help the company avoid making the same oldmistakes; tinker and kludge internally beforesearching for solutions externally; and hiregeneralists, because generalists tend to be moreadept at tinkering and kludging. As a paradigm ofsuccessful pacing, the author cites the efforts ofLou Gerstner at IBM, American Express TravelRelated Services, and RJR Nabisco.

Chapter 14: Fundamentals of Influencing andCommunicationDawn Riley atAmerica True(A)

HBS17p401-006Supplement#401-007

San Francisco,sports, startup, 100employees, 1999-2000

Dawn Riley is the CEO/Captain of America True,the first coed syndicate to race for the America'sCup. Over three years, based on her vision forAmerica True, she built the syndicate fromscratch, bringing on investors and sponsors,designing and building a boat, and hiring a sailingcrew to race it. In June 1999, Riley must decidehow to handle the San Francisco office now thatAmerica True's base of operations is moving toAuckland, New Zealand, where racing will beginin four months. She is facing pressure to phase outthe office to cut down on costs, but Riley believesthat the people in San Francisco and the work theyare doing are key to her vision for America True.She must weigh the tension between immediatepressures to win and the longer-term sustainabilityof her vision. Teaching Purpose: To demonstratethe challenges of leading a start-up: the importanceof communicating a vision, aligning people aroundthat vision, and executing on it. To explore issuesof gender and power.

Jack Welch:GeneralElectric’sRevolutionary

HBS#394-06522pTN #395-232

United States,conglomerate

Describes the work of Jack Welch as CEO ofGeneral Electric from 1981 to 1992, focusingparticularly on his transformation of the company'sportfolio through extensive dispositions andacquisitions and the company's culture through amandated process called "work out."

Jack Thomas HBS#494-062

New York,publishing, 1990

This redisguised version of an earlier case, TomLevick, provides an updated setting but does not

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13p change the teaching objectives. Chronicles the firstsix weeks of experience on the job for a recentbusiness school graduate. Emphasis is onmanaging upwards--particularly with respect toerrors discovered by the protaganist for which hisboss was responsible.

Jensen Shoes:LyndonTwitchell"s Story

HBS#395-1218pTN #396-017

United States, shoes,$65 million revenues,4500 employees,1994

Details the experiences of Jane Kravitz(Caucasian female), strategic product manager,and Lyndon Twitchell (African American male),a member of her staff at Jensen Shoes, asuccessful producer and marketer of casual,athletic, and children's footwear. They areassigned to new positions and to each other at thestart of the story. Presents their very differentpoints of view on their first couple of monthsworking together. Teaching Purpose: Raises howstereotypes and self-fulfilling prophesiesinfluence performance feedback. Can be taught ina variety of ways: with all students receiving bothcases; half receiving one and half receiving theother; or a third of the class receiving both, onethird receiving one, and one third receiving theother (as is appropriate). Should be used withJensen Shoes: Jane Kravitz's Story.

Jensen Shoes:Jane Kravitz'sStory

HBS#395-1207pTN #396-017

United States, shoes,$65 million revenues,4500 employees,1994

Details the experiences of Jane Kravitz(Caucasian female), strategic product manager,and Lyndon Twitchell (African American male),a member of her staff at Jensen Shoes, asuccessful producer and marketer of casual,athletic, and children's footwear. They areassigned to new positions and to each other at thestart of the story. Presents their very differentpoints of view on their first couple of monthsworking together. Teaching Purpose: Raises howstereotypes and self-fulfilling prophesiesinfluence performance feedback. Can be taught ina variety of ways: with all students receiving bothcases; half receiving one and half receiving theother; or a third of the class receiving both, onethird receiving one, and one third receiving theother (as is appropriate). Should be used withJenson Shoes: Lyndon Twitchell's Story.

Selling the BrandInside

HBR Reprint#r0201j7p

N/A When you think of marketing, chances are yourmind goes right to your customers--how can youpersuade more people to buy whatever it is yousell? But there's another "market" that's equallyimportant: your employees. Author ColinMitchell argues that executives by and largeignore this critical internal audience whendeveloping and executing branding campaigns.As a result, employees end up undermining theexpectations set by the company's advertising--either because they don't understand what the adshave promised or because they don't believe inthe brand and feel disengaged or, worse, hostiletoward the company. Mitchell offers three

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principles for executing internal brandingcampaigns. First, companies need to market toemployees at times when the company isexperiencing a fundamental challenge or change.Second, companies must link their internal andexternal marketing campaigns. And, third,internal branding campaigns should bring thebrand alive for employees, creating an emotionalconnection to the company that transcends anyone experience. It is a fact of business, writesMitchell, that if employees do not care about orunderstand their company's brands, they willultimately weaken their organizations.

Chapter 15: LeadershipMeg Whitman ateBay, Inc. (A)

HBS#401-02432p

San Jose, CA,Internet, 1999

Meg Whitman takes over as CEO of eBay fromthe founder. She must figure out how to lead thecompany through a stage of phenomenal growthwithout compromising eBay's unique externalcustomer culture and internal culture--its keysuccess factors.

Jack Welch:GeneralElectric’sRevolutionary

HBS#394-06522pTN #395-232

United States,conglomerate

Describes the work of Jack Welch as CEO ofGeneral Electric from 1981 to 1992, focusingparticularly on his transformation of the company'sportfolio through extensive dispositions andacquisitions and the company's culture through amandated process called "work out."

Chrysler:Iacocca's Legacy

HBS#493-01719pTN #496-059

United States,automobiles, 140,000employees, 1978-92

Describes the changes fashioned by Iacoccaduring his tenure as CEO of the Chrysler Corp.Pays particular attention to the rhetoric heemployed in mobilizing change and the actionshe took to implement change.

Bill Gates andthe Managementof Microsoft

HBS#392-01919p

United States,computer software,$1.8 billion revenues,1991

In July 1991, Microsoft has achieved recordgrowth and profitability in the PC softwareindustry. The case focuses on Microsoft's founderand CEO, Bill Gates, and his top managementteam, as they seek to retain the innovation andspirit of a small company in a rapidly growingand changing environment. Specific issuesinclude the management of organizationalcomplexity, cultural change, CEO and COOinteraction, compensation, and leadership.

Mary KayCosmetics, Inc.:Sales ForceIncentives (A)

HBS#190-10316p(B) case#190-122TN #191-198

Dallas, TX; cosmetics;$400 million revenues;1989

Describes the incentive system by which MaryKay Cosmetics motivates the sales force of200,000 independent agents who comprise thefirm's only distribution channel. Illustrates thepowerful effect on sales-force behavior thatresults when creative types of employeerecognition are combined with financialincentives. Focuses on the challenges thatmanagers face when they try to reduce programcosts by modifying the VIP automobile programthat awards the use of pink Cadillacs and othercars to successful sales agents. A detaileddescription of the parameters and formulas thatdrive the recognition and reward programs is

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provided.Albert Dunlapand CorporateTransformation(A)

Babson#BAB03217p(B) case#BAB033TN #BAB532

United States; paperproducts, homeappliances; 1994-2000

After restructuring Scott Paper with a 34%reduction in head count and successfully sellingthe company to Kimberly Clark, Al Dunlap ishired as CEO by Sunbeam. This case describesthe management principles of this corporateturnaround expert and his actions at Sunbeam.

A Letter to theChief Executive

HBR Reprint#r0210g6p

N/A Beyond the recent accounting scandals,something is wrong with the way most companiesare managed today. That's the message of thisfictional letter from a board member to a CEO,written by Joseph Fuller, CEO of the strategyconsulting firm Monitor Group. The letterhighlights the challenges and complexities ofrunning a business in today's uncertainenvironment. The letter addresses a single CEOand company, yet it is intended to speak toexecutives and boards everywhere: "It wasn't therecession that caused us to make 3 acquisitions in2 years at very, very high prices; the need to fuel[unreasonable] growth did. Nor was it therecession that caused us to expand our capacity inanticipation of gaining market share; rather, itwas our own overly optimistic sales forecasts thatled us to that decision. Where did those forecastsoriginate? From line managers trying to fulfillprofit goals that we created after meeting with theanalysts. The root cause of many of the problemsthat became apparent in the last 24 months liesnot with the economy, not with September 11,and not with the dot-com bubble. Rather, it lieswith that willingness to be led by outside forces--indeed, our own lack of conviction about setting acourse." Restoring sound, strategic decisionmaking--thinking that looks beyond tomorrow'sanalyst reports--will go a long way towardkeeping those outside forces at bay, according toFuller.

Chapter 16: MotivationMicrosoft’s VegaProject:DevelopingPeople andProducts

HBS#300-00419p

Redmond, WA,computer software,31,000 employees,1975-1998

Describes Microsoft's human resourcephilosophies and policies and illustrates how theywork in practice to provide the company with amajor source of competitive advantage. Describesemployee development, motivation, and retentionefforts in one of Microsoft's product groups.Focuses on Matt MacLellan, a 26-year-old, 5-yearMicrosoft veteran, particularly on his carefuldevelopment as a project manager under JimKaplan, his boss and mentor. Dissatisfied with hisproject management role, MacLellan decides tobecome a developer despite the fact that he hadnever written code professionally. Kaplan is facedwith a difficult decision of whether to support hisprotege's radical career shift, and how to do it notonly to MacLellan's satisfaction but also in the

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organization's best interest. Illustrates the role ofsenior management as developer and coach ofscarce human assets and the role of humanresource policy in supporting an organization'sdevelopment of competitive advantage.

Mary KayCosmetics, Inc.:Sales ForceIncentives (A)

HBS#190-10316p(B) case#190-122TN #191-198

Dallas, TX; cosmetics;$400 million revenues;1989

Describes the incentive system by which MaryKay Cosmetics motivates the sales force of200,000 independent agents who comprise thefirm's only distribution channel. Illustrates thepowerful effect on sales-force behavior thatresults when creative types of employeerecognition are combined with financialincentives. Focuses on the challenges thatmanagers face when they try to reduce programcosts by modifying the VIP automobile programthat awards the use of pink Cadillacs and othercars to successful sales agents. A detaileddescription of the parameters and formulas thatdrive the recognition and reward programs isprovided.

Nordstrom:Dissension in theRanks? (A)

HBS#191-00224p(B) case#192-027TN #692-085

United States;retailing; 1989

In 1989, the performance measurement systemsand compensation policies of NordstromDepartment Stores unexpectedly came underattack by employees, unions, and governmentregulators. The case describes the "sales-per-hour" monitoring and compensation systemwhich many believed to be instrumental inNordstrom's phenomenal success. Illustrates howrapid company growth, decentralizedmanagement, and unrelenting pressure to performcan distort performance measurement systemsand lead to undesirable consequences.

Visionary DesignSystems: AreIncentivesEnough?

HBS#495-01120pTN #495-050

Silicon Valley, CA,1994

A compensation case about a small, high-tech firmbased in Silicon Valley. Visionary Design Systems(VDS) began as a sales company and grew rapidlyinto a full-service systems integrator. Allemployees, including engineers, administrators,and receptionists, received a significant portion oftheir income from commissions and bonuses, andall were shareholders. The company espoused aphilosophy of empowerment, under which allemployees were given substantial decision-makingauthority, and were expected to act in the interestsof the firm. Examines one group that, although ithad both the authority and the incentives to exploita new market opportunity, continued to wait fortop management's instructions and approval beforemaking decisions or taking action. Explores thecosts and benefits of decentralized decision rightsand the creative use of incentives. Also illustratesthe potential problems with compensation systemsthat assume that well-informed employees facedwith the right incentives will make the rightdecisions.

One More Time:How Do You

HBR Reprint#r0301f

N/A It's a manager's perennial question: "How do I getan employee to do what I want?" The psychology

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MotivateEmployees?("HBR Classic")

9p of motivation is very complex, but the surest wayof getting someone to do something is to deliver akick in the pants--put bluntly, the KITA.Companies usually resort to positive KITAs,ranging from fringe benefits to employeecounseling. But although a KITA might producesome change in behavior, it doesn't motivate.Frederick Herzberg, whose work influenced ageneration of scholars and managers, likensmotivation to an internal generator. An employeewith an internal generator, he argues, needs noKITA. Achievement, recognition for achievement,the work itself, responsibility, and growth oradvancement motivate people. The author citesresearch showing that those intrinsic factors aredistinct from extrinsic, or KITA, elements thatlead to job dissatisfaction. Jobs can be changedand enriched. Managers should focus on positionswhere people's attitudes are poor. The investmentneeded in industrial engineering is cost effective,and motivation will make a difference inperformance.

Chapter 17: Groups, Teams, and Corporate CultureThe OverheadReduction TaskForce

HBS#400-0267pTN #400-027Video #400-502

United States,householdappliances, mid-size,1977-99

A middle manager is about to meet with his bossto discuss her request that he head up a task forceto determine how overhead can be reduced by20%. He must decide what to address in thatmeeting and how the task force should belaunched and led. The focus is on team leadershipat four stages in a team's life cycle: 1)preparation, 2) initial meeting, 3) mid-courseconsultation, and 4) post-performance debriefing.Teaching Purpose: To learn about the effectiveleadership of work groups and teams. A rewrittenversion of an earlier case.

The ChattanoogaIce CreamDivision

HBS#498-00111p

United States, foodproducts, 750employees, 1996

Senior functional officers (marketing,manufacturing, research & development, control,and human resources) clash over alternative ideasfor turning around a business in decline. Thegeneral manager is faced not only with choosingbetween competing ideas, but also managingconflict and determining whether his consensus-oriented style is appropriate to the needs of thesituation.

Buck & Pulleyn'sTeamManagement

HBS#497-0079p

Rochester, NY;advertising; $26million revenues; 70employees; 1996

In 1993, the firm began to move from atraditional hierarchical structure to client-focusedteams. The case describes the process and someconsequences of this restructuring. Performanceseems to be improving, but some employeespreferred the structure certainty and client varietyof the old days. How does management deal withthese issues? Teaching Purpose: Teammanagement has become very popular, buttransitions from traditional structures to teams arenot easy. The discussion will center on how to

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deal with these issues.Business Teamsat Rubbermaid,Inc.

HBS#897-16526p

Wooster, OH,consumerproducts/plastics,14,500 employees,1996

Rubbermaid, a consumer products companywidely praised for its innovation, has instituted acompany-wide experiment to stimulate innovationeven further. The experiment consists of creatingsmall cross-functional business teams within eachdivision, with each team being responsible for thecreation, management, and profitability of aparticular product line. The staffing, reportingstructure, and management of the business teamsvary across divisions, and clear differences emergein the performance of four highlighted teams. Thecase explores the possibility of using cross-functional teams within established firms tosimulate entrepreneurial ventures and accelerateinnovation.

Rudi Gassner andthe ExecutiveCommittee ofBMGInternational (A)

HBS#494-05521pTN #494-122

Global,entertainment,1993

Explores the roles of CEO Rudi Gassner and the 9-person executive committee in leading BMGInternational. BMG International is the musicsubsidiary of Bertelsmann, the second-largestmedia conglomerate in the world. Describes a1993 decision that Gassner and the executivecommittee must make about whether to changemanagers' business plans and bonus targets as aresult of a newly negotiated reducedmanufacturing cost. Allows for discussion of anumber of timely and important issues: (1) thecomplexities of managing and growing a largeglobal business; (2) the tensions betweencentralized corporate control and decentralizedlocal management in a global organization; (3) theimpact of leadership style on corporate culture andperformance; (4) the challenges of leading a seniormangement team; and (5) the final decision byCEO Rudi Gassner and the subsequent actionstaken by the members of the executive committee.

JetBlue Airways:Starting fromScratch

HBS#801-35420pTN #801-386

New York, NY,airlines, 950employees, 2000

JetBlue Airways shows how an entrepreneurialventure can use human resource management,specifically a values-centered approach tomanaging people, as a source of competitiveadvantage. The major challenge faced by AnnRhoades is to grow this people-centeredorganization at a rapid rate, while retaining highstandards for employee selection and a smallcompany culture. Considers the role of humanresource management, leadership, and values in astart-up venture, and addresses the tensionbetween a strong organizational culture and rapidgrowth.

The SASInstitute: ADifferentApproach toIncentives andPeople-Management

Stanford#HR617p

North Carolina;software; 5,000employees; 1997

The SAS Institute is a large, growing softwarecompany headquartered in the Research Trianglein North Carolina. Founded more than 25 yearsago, it has evolved a unique approach, given itsindustry, to developing and retaining talentincluding using no stock options or phantomstock and not paying its salespeople on

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Practices in theSoftwareIndustry

commission. The CEO and Vice President ofHuman Resources must decide how well theircurrent management practices will continue toserve them as the company gains greater visibilityand faces an increasingly competitive labormarket.

Speeding UpTeam Learning

HBR Reprint#r0109j7p

N/A Cardiac surgery is one of medicine's modernmiracles. In an operating room no larger thanmany household kitchens, a patient is renderedfunctionally dead while a surgical team repairs orreplaces damaged arteries or valves. Eachoperation requires incredible teamwork--a singleerror can have disastrous consequences. In otherwords, surgical teams are not all that differentfrom the cross-functional teams that have becomecrucial to business success. The challenge of teammanagement these days is not simply to executeexisting processes efficiently. It's to implementnew processes as quickly as possible. Butadopting new technologies or new businessprocesses is highly disruptive, regardless of theindustry. The authors studied how surgical teamsat 16 major medical centers implemented adifficult new procedure for performing cardiacsurgery. The setting was ideal for rigorouslyfocusing on how teams learn and why some learnfaster than others. The authors found that themost successful teams had leaders who activelymanaged the groups' learning efforts. Teams thatmost successfully implemented the newtechnology shared three essential characteristics.They were designed for learning; their leadersframed the challenge so that team members werehighly motivated to learn; and an environment ofpsychological safety fostered communication andinnovation. The finding that teams learn morequickly if they are explicitly managed forlearning poses a challenge in many areas ofbusiness. Team leaders in business tend to bechosen more for their technical expertise than fortheir management skills. Team leaders need tobecome adept at creating learning environments,and senior managers need to look beyondtechnical competence and identify leaders whocan motivate and manage teams of disparatespecialists.

Chapter 18: Understanding PeopleMerck LatinAmerica (A)

HBS# 401-02912p

Latin America,pharmaceuticals, $33billion revenues,1999

Introduces Grey Warner, the vice president ofMerck's Latin America region, and his efforts toimprove the organizational effectiveness of theregion and to introduce a more global businessculture and values. Discusses Merck's ethics andvalues, its Latin American organization, thechange methodologies used, and the political andeconomic conditions in the region. The change

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methodologies included Myers Briggs personalitytype assessment, 360 degree feedbackmanagement evaluations, a new strategic planningprocess, and especially, organizational fitnessprofiling to discover and overcome barriers toachieving the strategic vision. Teaching Purpose:Allows students to examine the management offoreign operations--especially the management ofchange and the cultural implications thereof.

Mark TwainBancshares, Inc.

HBS#385-17818p

St. Louis, MO;banking; $750million assets; 1984

Describes the history, management, andorganization of an extremely successful bankholding company. The company has had a verycharismatic chairman, has made MBAs bankpresidents at very early ages, and has a long recordof innovation. Now deregulation and a comingchange of leadership may threaten the "system"that has made the bank so successful. The teachingobjectives are to display the advantages anddrawbacks of management based on a strongpersonality and strong values in the face of majormarket changes

The SASInstitute: ADifferentApproach toIncentives andPeople-ManagementPractices in theSoftwareIndustry

Stanford#HR617p

North Carolina;software; 5,000employees; 1997

The SAS Institute is a large, growing softwarecompany headquartered in the Research Trianglein North Carolina. Founded more than 25 yearsago, it has evolved a unique approach, given itsindustry, to developing and retaining talentincluding using no stock options or phantomstock and not paying its salespeople oncommission. The CEO and Vice President ofHuman Resources must decide how well theircurrent management practices will continue toserve them as the company gains greater visibilityand faces an increasingly competitive labormarket.

The Failure-Tolerant Leader

HBR Reprint#r0208d6p

N/A "The fastest way to succeed," IBM's ThomasWatson, Sr., once said, "is to double your failurerate." In recent years, more and more executiveshave embraced Watson's point of view, coming tounderstand what innovators have always known:Failure is a prerequisite to invention. Althoughcompanies may grasp the value of makingmistakes at the level of corporate practices, theyhave a harder time accepting the idea at thepersonal level. In this article, psychologist andformer Harvard Business School professorRichard Farson and co-author Ralph Keyesdiscuss how companies can reduce the fear ofmiscues. What's crucial is the presence of failure-tolerant leaders--executives who, through theirwords and actions, help employees overcometheir anxieties about making mistakes and, in theprocess, create a culture of intelligent risk-takingthat leads to sustained innovation. Drawing fromtheir research in business, politics, sports, andscience, the authors identify common practicesamong failure-tolerant leaders. These leaders

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break down the social and bureaucratic barriersthat separate them from their followers. Theyengage at a personal level with the people theylead. They take a nonjudgmental, analyticalposture as they interact with staff. They openlyadmit their own mistakes. And they try to root outthe destructive competitiveness built into mostorganizations. Above all else, failure-tolerantleaders push people to see beyond traditionaldefinitions of success and failure. They know thatas long as a person views failure as the oppositeof success, rather than its complement, he or shewill never be able to take the risks necessary forinnovation.

Chapter 19: Principles of ControllingVerizonCommunications,Inc.:Implementing aHumanResourcesBalancedScorecard

HBS#101-10223p

United ,telecommunications,$60 billion revenues,1996-2000

In early 2000, Verizon Communicationsimplemented a Human Resources BalancedScorecard to evaluate the effectiveness of andpayoffs from human resource management. Thiscase describes the benefits of the scorecard and thechallenges of measurement and implementation.Teaching Purpose: To help students understand: 1)how to implement a Balanced Scorecard, 2) howto measure and improve the effectiveness ofsupport functions, and 3) how to link nonfinancialmeasures to financial measures of supportfunctions when financial benefits are difficult toquantify.

Bausch & Lomb,Inc.: Pressure toPerform

HBS#198-00920p

United States, optics,1995

Bausch & Lomb is the subject of press attacks andexperiences a sharp fall in stock price whenmanagement practices are exposed. Aggressivegoal setting, supported by financial marketexpectations, is discussed as a precursor to a seriesof events that results in misstated financial resultsand angry customers. A defiant CEO stands hisground as shareholders demand his resignation.Industry and competitive data allow students tocalibrate performance pressures.

The Classic PenCo.: Developingan ABC Model

HBS#198-1174pTN # 199-029

Unspecified A simple numerical exercise, based on theCooper/Kaplan pen factory example, to illustratethe rationale for activity-based costing (ABC).Classic Pen has diversified from its core blue andblack pen business by introducing new specializedcolors. But costs have risen and margins on blueand black pens are decreasing. The controller turnsto ABC for an explanation. Teaching Purpose:Illustrates application of ABC.

Putting theBalancedScorecard toWork

HBR Reprint#9350514p

N/A In an earlier, groundbreaking article, BalancedScorecard - Measures That Drive Performance,Reprint #92105, the authors proposed a newmeasurement system that provided managers witha comprehensive framework to translate acompany's strategic objectives into a coherent setof performance measures. Now the authors showhow several companies are putting the balanced

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scorecard to work. Effective measurement, theauthors point out, must be an integral part of themanagement process. Much more than ameasurement exercise, the balanced scorecard is amanagement system that can motivatebreakthrough improvements in such critical areasas product, process, customer, and marketdevelopment. Several examples--Rockwater,Apple Computer, and Advanced Micro Devices--illustrate how the scorecard combinesmeasurement and management in differentcompanies. From the experiences of thesecompanies and others, the authors have found thatthe balanced scorecard is most successful when itis used to drive the process of change.

Chapter 20: Production Management and ControlEli Lilly and Co.:The FlexibleFacilityDecision--1993

HBS#694-07419pTN #696-041

Indianapolis, IN;pharmaceuticals; $6.2billion revenues, ;1993

In 1993, Eli Lilly is preparing to buildmanufacturing capacity for three newpharmaceutical products that it expects to launchin 1996. Management wrestles with a decision ofwhether to add specialized manufacturing capacityor flexible capacity. This question touches off abroad debate within the company about whichstrategy to follow for future facilities decisions.This case presents two alternatives (flexible andspecialized plants) and describes the benefits andcosts associated with each. Teaching Purpose:Requires students to analyze the tradeoffs betweenthe alternatives and consider if and how eachwould help Lilly accomplish its strategic goals.Students should consider the net present value ofthe alternative investments, as well as explore thevalue of flexibility in manufacturing and capitalinvestment decisions.

Mattson Foods,Inc.: TheBardoliniDivision(Revised)

HBS#695-05814p

United States, foodprocessing, $30million revenues,1988

The Bardolini Division of Mattson Foods, withplants in the northeast and midwest, wants to openup the western market for its pizza. Managementmust decide whether to build a new plant on theWest Coast, and what type of technology to put inthe plant if they decide to build it. The caseaddresses the issue of building a plant formarketing purposes and raises a number oflogistical issues, including transportation andwarehouse economics. A rewritten version of anearlier case.

GE: We BringGood Things toLife (A)

HBS#988-16223p(B) case#899-163TN #899-222

Global, diversified,$80 billion revenues,222,000 employees,1995

Jack Welch and the Corporate Executive Councilof GE are faced with a decision about whether andhow to implement a six sigma qualityimprovement effort in the context of many otherinitiatives already undertaken at GE in recentyears. Teaching Purpose: To illustrate thecomplexity of managing change and themomentum that related and integrated initiativescan provide.

Daewoo HBS Korea, shipbuilding, Daewoo Shipbuilding and Heavy Machinery

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Shipbuilding andHeavyMachinery

#695-00118pTN #696-053

1994 rescued its plant from the labor riots of 1987 tomake it, by 1994, to be the fastest improvingshipyard in the world. With its competition inKorea making huge investments in additionalcapacity in anticipation of the end of the recession,Daewoo instead has to decide if its strategy ofcontinuous investment can provide the neededcapacity. Teaching Purpose: Addressesmanufacturing improvement strategies and plantmanagement. In addition, it looks at the interactionbetween "step-change" improvement andcontinuous improvement.

EG&G RotronDivision

HBS#695-03717pTN #697-100

New York, motorsand electronics, $20million revenues, 200employees, 1995

Rotron has recently entered the commercial motormarket, after many years of servicing governmentmilitary contracts. Faced with fierce commercialcompetition, Rotron has attacked its costs, andreduced its delivery times and its plants. A newcrisis, however, is causing it to rethink its just-in-time production system and the plant managermust decide whether to re-introduce inventory forkey production. Teaching Purpose: Addressesissues related to just-in-time production andstrategic flexibility.

JohnsonControls,AutomotiveSystems Group:The Georgetown,Kentucky Plant

HBS# 693-08623pTN #693-102

Georgetown, KY;automotive; $5billion revenues;40,000 employees;1993

Prior to the 1980s, auto makers purchasedindividual seat components and built the seatsalongside their auto assembly lines. This casedescribes how Johnson Controls, AutomotiveSystems Group blossomed when auto makersturned to outsourcing the complete seat set.Closely examines one plant, in Georgetown,Kentucky, that switched from just-in-time (JIT)delivery of seat sets to JIT assembly to serve anearby Toyota Camry assembly operation.Exposes the challenge of dealing with growingseat variation and an opportunity of doubling theplant floor space at a separate site. The specificcase question is how the plant should use this newspace. Teaching Purpose: Students who have beenonly exposed to the concept of JIT production willgrasp not only how JIT is actually practiced butwhat it really entails.

The Fallacy ofthe OverheadQuick Fix

HBR Reprint#914038P

N/A Many large manufacturing companies are findingthemselves at a cost disadvantage in markets theyhave dominated for years. This is because ofexcessive overhead structures and the emergenceof the "robust" competitor, comparable in size andproduct scope but able to produce at a lower unitoverhead cost. High-overhead companies shouldnot cut overhead by outsourcing or downsizing. Ifthey expect to retain their size and also becomemore cost competitive, they must rethink theirmanufacturing systems.

Chapter 21: Information Technology and the InternetMeasurementand Management

HBS#100-056

Cambridge, MA;software; $1

CitySoft is a very small software developer that isgrappling with issues of cost measurement and

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at CitySoft 21pTN #101-073

million revenues;25 employees;1999-2000

management. Students must decide what reportsshould be generated and how to use these reports.Teaching Purpose: Introductory case for a coursein cost and performance measurement.

Frito-Lay, Inc.: AStrategicTransition--1990-1992

HBS#194-10918pTN #195-016

United States,consumer products,$6.1 billionrevenues, 1990-92

Describes the changes in structure, managementsystems, people, and processes instituted by thecompany. Provides students with an opportunity toexplore the nature of "IT-enabled" organizationalchange and the process through which it isimplemented. Also enables a more generaldiscussion of the challenges that companies face inorganizing and managing in the 1990s and theactions that they are taking to meet thosechallenges. Affords an opportunity to confront therhetoric of the emergence of a "new organizationparadigm" with the reality.

PricewaterhouseCoopers:Building aGlobal Network

HBS(University ofHong Kong)#HKU09517pTN #HKU096

Global, accounting,2000

Price Waterhouse and Coopers & Lybrand mergedin July 1998, creating one of the world's largestfull-service professional organizations. This caseprovides a study of how two major organizationsare putting together a global knowledge base thatwould facilitate communication and coordinationwithin the PricewaterhouseCoopers (PwC)practice. Eventually, this knowledge base wouldbe made available to PwC clients. Discusses thechanges, issues, and challenges at PwC in buildingits Intranet, called KnowledgeCurve, a knowledgemanagement system that incorporates all the assets(knowledge, people, skills) of the company to beutilized by the firm. In order for the organizationto be successful, it is crucial for PwC to encouragethe users to fully utilize the available resources andto contribute information to the KnowledgeCurve.

Cisco Systems:Web-enablement

HBS#301-05624pTN #301-144

Silicon Valley, CA;informationtechnology; $8billion revenues;10,000 employees;1998

Describes how Cisco web-enabled their ERPsystems and developed the "front office" systemsto electronically link to their customers andsuppliers. A rewritten version of an earlier case.

Ford MotorCompany:Maximizing theBusiness Valueof WebTechnologies

HBS#198-00615pTN #699-030

Michigan,automobiles, $150billion revenues,370,000employees, 1994-97

Describes how one of the largest companies in theworld is aggressively deploying Web technology,and how they are managing and supporting thenew technology. Includes a discussion ofinfrastructure renewal, application development,extranets, and content management. TeachingPurpose: To demonstrate an effective rollout of anew technology with a particular focus on thechallenges of managing information content tomake it more useful to the business.

Strategy and theInternet

HBR Reprint#r0103d17p

N/A Many of the pioneers of Internet business, bothdot-coms and established companies, havecompeted in ways that violate nearly every preceptof good strategy. Rather than focus on profits, theyhave chased customers indiscriminately throughdiscounting, channel incentives, and advertising.Rather than concentrate on delivering value that

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earns an attractive price from customers, they havepursued indirect revenues such as advertising andclick-through fees. Rather than make trade-offs,they have rushed to offer every conceivableproduct or service. It did not have to be this way--and it does not have to be in the future. When itcomes to reinforcing a distinctive strategy,Michael Porter argues, the Internet provides abetter technological platform than previousgenerations of IT. Gaining competitive advantagedoes not require a radically new approach tobusiness; it requires building on the provenprinciples of effective strategy. Porter argues that,contrary to recent thought, the Internet is notdisruptive to most existing industries andestablished companies. It rarely nullifies importantsources of competitive advantage in an industry; itoften makes them even more valuable. And as allcompanies embrace Internet technology, theInternet itself will be neutralized as a source ofadvantage. Robust competitive advantages willarise instead from traditional strengths such asunique products, proprietary content, anddistinctive physical activities. Internet technologymay be able to fortify those advantages, but it isunlikely to supplant them.

Chapter 22: Competitiveness: Quality and InnovationGE: We BringGood Things toLife (A)

HBS23p 9-899-162Supplement#899163TN #899222

Global, diversified$80 billion revenues222,000 employees,1995

Jack Welch and the Corporate Executive Councilof GE are faced with a decision about whether andhow to implement a six sigma qualityimprovement effort in the context of many otherinitiatives already undertaken at GE in recentyears. Illustrates the complexity of managingchange and the momentum that related andintegrated initiatives can provide.

WainwrightIndustries (A):Beyond theBaldrige

HBS15p# 9-396-219Supplement#396220

Missouri, automotivesupplies, $28 millionrevenues 300 1979-1996

Traces the growth of a small automotive supplycompany, focusing on its commitment to quality in1981, and the evolution of its quality culture.Breakthrough programs that stress "trust andbelief" in the workforce and commitment tocustomers result in Wainwright winning theMalcolm Baldrige Award in 1994. TeachingPurpose: Invites discussion of the meaning ofquality and the assumptions that drive qualitycultures. Also probes the leadership and changeinitiatives and encourages examination of thetensions that exist between the Baldrige criteriaand ISO 9000 guidelines.

DisruptiveTechnology aHeartbeat Away:Ecton, Inc.

HBS#699-01819pTN #600-129

United States,health care, 6employees, 1998

Describes an innovating start-up company with adisruptive technology to the large, expensiveechocardiography machines that leadingcardiologists use to create images of heartfunctions for diagnostic purposes. Ecton's machineis small, cheap, portable, and can't create imagesas clear as those that large, expensive instruments

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can make. The entrepreneur is searching for amarket for his product, and wonders whether heshould sell out or try to build a successfulcommercial organization.

3M: Profile of anInnovatingCompany

HBS#395-01620p

United States,high-tech products

Traces the birth and development of 3M Corp.,focusing in particular on the origins of itsentrepreneurially-based ability to innovate. Inparticular, it highlights the role of CEO William L.McKnight in creating a unique set of values,policies, and structures to nurture and developcontinuous renewal. With the changingenvironment of the 1980s, however, a newgeneration of CEOs begin to adopt the policies andchange the cultural norms that helped 3M grow.The trigger issue focuses on what other changesare required. Shows how culturally embeddedorganizational behavior can become a sustainablesource of competitive advantage; also shows howsuch strong cultures can and should be adjusted tonew internal and external realities.

Hewlett-Packard:The Flight of theKittyhawk

HBS#697-06018pTN #697-122

United States,electronics, 2,000employees, 1993

Hewlett-Packard decided that, in order to growmore rapidly, it needed to design a revolutionarydisk drive product that would create an entirelynew market or application for magnetic recordingtechnology. The company followed most of the"rules" good managers follow in such situations:heavyweight project team, lots of seniormanagement support, etc. But it still failed. Thiscase helps students learn why good managementisn't enough and how they should manage similarsituations.

Chaparral Steel:Rapid Productand ProcessDevelopment

HBS#692-01817pTN #692-047

Texas, steel, 900employees, 1983-1991

One of the nation's foremost mini-mills' corecompetence is the rapid realization of technologyinto products. This case describes the developmentof a highly innovative casting technique andfeatures the role of the company's culture inachieving its goals. The company exemplifies alearning organization.

Open-MarketInnovation

HBR Reprint#r0210f8p

N/A Companies in many industries are feeling immensepressure to improve their ability to innovate. Butexecutives know that the best ideas aren't alwayscoming out of their own R&D labs. That's why agrowing number of companies are exploring theidea of open-market innovation--an approach thatuses tools such as licensing, joint ventures, andstrategic alliances to bring the benefits of freetrade to the flow of new ideas. For instance, whenfaced with the unanticipated anthrax scare last fall,Pitney Bowes had nothing in its R&D pipeline tohelp its customers combat the deadly spores. So itsought help from outside innovators to come upwith scanning and imaging technologies that couldalert its customers to tainted letters and packages.In this article, Bain consultants Darrell Rigby andChris Zook describe the advantages and

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disadvantages of open-market innovation and theways some companies are using it to gaincompetitive advantage. Creative types within acompany will stick around longer if they knowtheir ideas will eventually find a home--as internalR&D projects or as concepts licensed to outsidebuyers. However, the authors warn againstentering into open-market innovation withoutproperly structuring deals: Xerox and TRWvirtually gave away their innovations and had tostand by while other companies capitalized onthem. The company with the most powerful assetswill have the greatest growth potential.

Chapter 23: Management's Digital DimensionAutobytel.com HBS

21p# 9-500-015TN #500076

Irvine, CA; Internetautomotive; $36million revenues; 200employees; 1999

Autobytel enjoys first-mover advantage in theInternet new car buying space. According to anumber of metrics, it is the online leader in thiscategory. However, a number of competitors havesprung up, raising questions about the long-termviability of Autobytel's purchase referral model. Inaddition, Autobytel is struggling to acceleraterevenue growth. The company has launchedseveral new services and is now seeking toreposition itself in the market. Teaching Purpose:Can be used in either a first-year generalmarketing course or a second-year marketingcourse that focuses on channel strategy or Internetmarketing.

Charles Schwab,Inc.: Creating anInternationalMarketspace

U. of HongKong16p#HKU067TN #HKU068

United States,brokerage, large,1998

In 1996, Charles Schwab, Inc. (Schwab) pioneeredonline trading and experienced phenomenalgrowth by creating a whole new market for itsproducts and services. In doing so it significantlyaltered its business model. The ease with whichinformation could be obtained over the web meantthat investors could bypass the traditional brokers(dis-intermediation) and trade on their own at amuch cheaper price. This lured not only many newtraders to the market but also many newcompetitors. Price wars followed, which shrunkmargins. In order to retain its dominant positionand continue growing, Schwab had to find otherways of expanding the market base. TeachingPurpose: Outlines the important role informationtechnology has played in Schwab's development. Itspecifically focuses on how Schwab successfullycreated a new market of customers by pioneeringthe establishment of web-based trading and howthis, in turn, has led to new challenges andopportunities. Students will learn how the Internethas transformed the brokerage industry and led toboth dis-intermediation and re-intermediationeffects. Students are asked to evaluate Schwab'sstrategy in the face of rising competition.

CVS: The WebStrategy

HBS16p#500008

New England, drugretailing, $15 billionrevenues

How should America's second-largest pharmacychain respond to the challenge from onlinedrugstores? Considers prescription drugs and the

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TN #501064 other items that make up 50% of a drugstore'ssales. This case describes the purchase ofSoma.com by CVS, and its integration into thecorporation. A number of tactical questions remainto be answered, and then there is the largerstrategic question--why do this at all? Teachingpurpose: Issues in the integration of traditionalretailing with online channels.

Dell Online HBS27p#598116TN #598146

Texas, personalcomputers, $7.7billion revenues,1996-1997

Dell started online commerce for its PCs in 1996,and by 1997 had achieved a sales rate of $3million a day. The case describes the internalprocess that led to these dramatic results and posesthe question of how the firm should leverage thisactivity to meet Michael Dell's goal of achieving50% of the company's anticipated $20 billion insales by the year 2000 via Internet channels.Teaching Purpose: To understand the buyingbehavior and transaction economics underlyingInternet commerce and study its implications forchannel evolution

Exploiting theVirtual ValueChain

HBR Reprint#9561011p

N/A Every business today competes in two worlds; aphysical world of resources that managers can seeand touch and a virtual world made of information.Executives must pay attention to how theircompanies create value in both arenas--themarketplace and the marketspace. But theprocesses for accomplishing this are not the samein the two worlds. Managers who understand howto master both can create and extract value in themost efficient and effective manner. Creatingvalue in any stage of a virtual value chain involvesa sequence of five activities: gathering, organizing,selecting, synthesizing, and distributinginformation. Just as someone takes raw materialand refines it into someting useful, so a managertoday collects raw information and adds valuethrough these five steps.


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