...A whistle-blower’s lawsuit alerts Galvatrens to deep flaws in its system for uncovering misconduct. How should management and the board respond? HBR CASE STUDY Why Didn’t We Know? by Ralph Hasson COPYRIGHT © 2007 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. It was 9:30 in the evening of what had been a very long Friday when the phone rang in Chip Brownlee’s home study. On the line was Arch Carter, the lead director of Galvatrens, the Houston-based consumer products company that Chip had led as chairman and CEO for the past ten years. “I just got your voice mail,” Arch said. “The parts about a lawsuit and accusations that we manipulated our sales numbers certainly got my attention. What’s going on?” “At this point, I don’t know much,” Chip responded, “but I wanted to give you a heads-up. A former divisional sales manager has filed a lawsuit against the company, charging he was wrongfully terminated because he tried to report an illegal scheme to inflate sales.” Chip had received a copy of the lawsuit that afternoon. As he’d read through the complaint, he’d gotten a whole new perspective on the multiple departures that had rocked Sales dur- ing the past four weeks. The plaintiff was Mike Fields, who had left Galvatrens three weeks earlier. He claimed that he’d come across a plan devised by Greg Wilson, another divisional sales manager. According to Mike, Greg had proposed shipping goods to a few of his bigger customers, billing them, and booking the sales—...
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...There is a vital interplay between the challenge a brand faces and the culture of the corporation that owns it. When brand and culture fall out of alignment, both brand and corporate owner are likely to suffer. The brand’s distribution channels were as unconventional as its promotions. Initially Snapple had very little supermarket coverage. Instead, it flowed through the so-called cold channel: small distributors serving hundreds of thousands of lunch counters and delis, which sold single-serving refrigerated beverages consumed on the premises. Small as the individual distributors were, they aggregated into a mighty marketing force. But replicating Gatorade’s success was more than an objective—it was a matter of corporate survival. With only one brand in its beverage portfolio, Quaker was at a serious disadvantage to larger players that could use their broader lineups to capture economies of scale. To stave off acquisition by one of those larger competitors, Quaker needed to add a second brand that could capture similar economies. Acutely aware of the make-or-break nature of the acquisition, Quaker’s executives formulated a marketing plan that sought to minimize or eliminate risk. As it happened, though, Quaker’s very risk aversion turned out to be the greatest risk of all. It’s tempting to say that Triarc’s executives understood and embodied the quirky spirit of the Snapple brand in a way that Quaker’s marketing team never did, and Triarc’s executives aren’t inclined to disagree...
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...HBR CASE STUDY Offered a lucrative deal to outfit consumer goods with RFID tags,a technology executive wonders: Would he be providing a valuable custonner service? Or committing a heinous invasion of privacy? None of Our Business? by Roberta A. Fusaro E S W THEM the moment he came A out of the parking garage. Across the street, about two dozen protesters crowded close to the main entrance of the exposition center, heckling conference goers as they streamed inside. Fired up with anger and caffeine (almost all clutched steaming cups of coffee-it was still early on a Friday morning), they shouted through bullhorns and waved placards with messages like "Get Off My Frequency!" and "Mind Your Own Business!"When two women in charcoal-gray suits walked out the center's doors, a protester broke away and followed them down the sidewalk, trying to press pamphlets into their hands. A police officer ordered the crowd to stay behind the barricades, but his commands were inaudible beneath the sounds of traffic and civil insurrection. Dante Sorelia shook his head. "How the hell did we reach this point?" he thought as the walk light beckoned him forward. As CEO of a technology firm, Dante was an old hand at privacy debates. Such intense, public hostility, however, was a fairly recent development. His Manhattan-based company, Raydar Electronics, was among the top five makers and integrators of radio frequency identification (RFID) tags and readers in...
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...op yo rP os t www.hbr.org H B R CAS E ST U D Y Can Transition expand without losing its elite aura? Six commentators offer expert advice. AND COMMENTARY How Do You Grow a Premium Brand? by Regina Fazio Maruca Do No tC • Reprint 95205 H B R CAS E ST U D Y rP os t Transition is the Tiffany of health clubs. Now its owner wants to expand. op yo How Do You Grow a Premium Brand? No tC Do COPYRIGHT © 1995 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. by Regina Fazio Maruca It was a great idea. The first of its kind. A series of ultrapremium health clubs located in major cities throughout the world. Targeted at senior executives too busy to eat. Frequent business travelers. Singles. People who just plain liked the extra attention and pampering and could afford to pay for the best. And it really had taken off. Since its flagship club had opened at one of New York City’s most prestigious addresses 15 years ago, Transition’s sales had doubled each year. The first location, a 25,000-square-foot facility with 14 full-time staff members, plus numerous sales associates, was almost maxed out at 2,300 members. Within its first two years of operation, Transition had opened similarly popular facilities in other major cities: Chicago, Washington, Los Angeles, London, Paris, Milan, Singapore, Hong Kong, and Tokyo. Within five years, it was also operating through the five-star Printemps...
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...Luxury and cosmetic marketing Doctor M. Saucet PhD in management Teacher researcher Copenhagen, Tunis) (Nice, Marseille, Paris, London, • Consultant for Lca ltd (armani, guerlain, lancaster, Merck phamacy, IHET Tunis, Athos consulting …) • Experience 4 years : new line manager in cosmetic business 5 years teaching and research 2 years in consulting (innovation, experiential marketing …) Marcel.saucet@euromed-management.com Luxury and cosmetic marketing Mode • Theory • Practice course • One Professional case by course COURSE OBJECTIVES • Show business examples and luxury marketing strategy • The students realize in “real” conditions a lot of luxury launched products simulations. EVALUATION Grading will be based on : - a participation note - Level and quality of participation to discussions - Quality of presentations (content and communication skills) - a final exam (during the last lesson). Luxury Marketing research Bibliography (French and English) • • • • • Castarede J., “Le luxe”, que sais je, PUF, 3ème éd., 2003 Gillian C., Wilson R., “Strategic marketing planning », elsevier, 2003 Lipovetsky G., Roux E., « Le luxe eternel », collection le débat, gallimard, 2003 Marchand S., « les guerres du luxe », fayard, 2002 Sicard M.C Cyberlibris • Let Them Eat Cake : Marketing Luxury to the Masses - As Well As the Classes Auteur: Danziger, Pamela, - Editeur: Dearborn Trade, A Kaplan Professional Company - 322 pages – 2005 Global Marketing Management...
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...The Discipline of Innovation by Peter F Drucker . Reprint r0208f August 2002 HBR Case Study The Sputtering R&D Machine Martha Craumer r0208a Voices Inspiring Innovation Creativity Under the Gun Teresa M. Amabile, Constance N. Hadley, and Steven J. Kramer r0208b r0208c The Failure -Tolerant Leader Richard Farson and Ralph Keyes r0208d r0208e Breaking Out of the Innovation Box John D. Wolpert Best of HBR The Discipline of Innovation Peter F Drucker . r0208f r0208g r0208h r0208j Research That Reinvents the Corporation John Seely Brown Tough-Minded Ways to Get Innovative Andrall E. Pearson Organizing for Innovation: When Is Virtual Virtuous? Henry W. Chesbrough and David J. Teece Creativity Is Not Enough Theodore Levitt r0208k In Closing Stumbling into Brilliance Danny Hillis r0208l BEST OF HBR 1985 The Discipline of Innovation by Peter F Drucker . How much of innovation is inspiration, and how much is hard work? If it’s mainly the former, then management’s role is limited: Hire the right people, and get out of their way. If it’s largely the latter, management must play a more vigorous role: Establish the right roles and processes, set clear goals and relevant measures, and review progress at every step. Peter Drucker, with the masterly subtlety that is his trademark, comes down somewhere in the middle. Yes, he writes in this article, innovation is real work, and it can and should be managed like any other corporate function. But that doesn’t mean it’s the...
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...Collaborate with Your Competitors—and Win 20/11/14 1:07 pm Welcome to the new HBR.org. Here’s what’s new. Here’s an FAQ. COMPETITION Collaborate with Your Competitors—and Win by Gary Hamel, Yves Doz, and C.K. Prahalad FROM THE JANUARY 1989 ISSUE C ollaboration between competitors is in fashion. General Motors and Toyota assemble automobiles, Siemens and Philips develop semiconductors, Canon supplies photocopiers to Kodak, France’s Thomson and Japan’s JVC manufacture videocassette recorders. But the spread of what we call “competitive collaboration”—joint ventures, outsourcing agreements, product licensings, cooperative research—has triggered unease about the long-term consequences. A strategic alliance can strengthen both companies against outsiders even as it weakens one partner vis-à-vis the other. In particular, alliances between Asian companies and Western rivals seem to work against the Western partner. Cooperation becomes a low-cost route for new competitors to gain technology and market access.1 Yet the case for collaboration is stronger than ever. It takes so much money to develop new products and to penetrate new markets that few companies can go it alone in every situation. ICL, the British computer company, could not have developed its current generation of mainframes without Fujitsu. Motorola needs Toshiba’s distribution capacity to break into the Japanese semiconductor market. Time is another critical factor. Alliances can provide...
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...------------------------------------------------- Just in Time for the Holidays (HBR Case Study and Commentary) ------------------------------------------------- TECHNOLOGY & OPERATIONSHBR CASE AND COMMENTARY * ------------------------------------------------- Eric McNulty, M. Eric Johnson, Horst Brandstatter, Warren H. Hausman, Anne Omrod ------------------------------------------------- 8.95 ADD TO CART * ------------------------------------------------- SAVE ------------------------------------------------- * ------------------------------------------------- SHARE * ------------------------------------------------- ------------------------------------------------- Just in Time for the Holidays (HBR Case Study) ------------------------------------------------- STRATEGY & EXECUTION HBR CASE * ------------------------------------------------- Eric McNulty ------------------------------------------------- 8.95 ADD TO CART * ------------------------------------------------- SAVE ------------------------------------------------- * ------------------------------------------------- SHARE * ------------------------------------------------- ------------------------------------------------- Power of Virtual Integration: An Interview with Dell Computer's Michael Dell (HBR OnPoint Enhanced Edition) ------------------------------------------------- STRATEGY & EXECUTION HBR ONPOINT ARTICLE *...
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...www.hbr.org BEST OF HBR Followers want comfort, stability, and solutions from their leaders. But that’s babysitting. Real leaders ask hard questions and knock people out of their comfort zones. Then they manage the resulting distress. The Work of Leadership by Ronald A. Heifetz and Donald L. Laurie Included with this full-text Harvard Business Review article: 2 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 3 The Work of Leadership 14 Further Reading A list of related materials, with annotations to guide further exploration of the article’s ideas and applications Reprint R0111K BEST OF HBR The Work of Leadership The Idea in Brief The Idea in Practice What presents your company with its toughest challenges? Shifting markets? Stiffening competition? Emerging technologies? When such challenges intensify, you may need to reclarify corporate values, redesign strategies, merge or dissolve businesses, or manage cross-functional strife. 1. Get on the balcony. Don’t get swept up in the field of play. Instead, move back and forth between the “action” and the “balcony.” You’ll spot emerging patterns, such as power struggles or work avoidance. This high-level perspective helps you mobilize people to do adaptive work. These adaptive challenges are murky, systemic problems with no easy answers. Perhaps even more vexing, the solutions to adaptive challenges don’t reside in the executive...
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...catchall phrase, but at its heart, it offers three challenges for organizations. First, business leaders must deploy new technologies and then prepare for a potential revolution in the collection and measurement of information. More important, the entire organization must adapt a new philosophy about how decisions are made, if the real value of big data is to be realized. The amount of data pouring into organizations through ever-expanding channels is staggering. According to one source, more data have been produced in the past two years than in all of prior history. Not only has the volume of data changed, but so has the variety: information is now collected from multiple channels, ranging from Web clicks to the unstructured data from social media. And the velocity at which organizations can now collect, analyze, and respond to data has added a new dimension. Amazon, for instance, uses a dynamic pricing system that crawls over the Web, checks competitors’ prices and product availabilities, and changes the prices on Amazon, in some cases every fifteen seconds. Amazon can collect data from every visitor, every click, and every interaction, which collectively are known as structured data, and it can also collect reviews or evaluations from consumers or their social media posts. A second important aspect of big data is the potential in new forms of measurement. For instance, technology is already widely available that can automatically report vital health statistics to your...
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...New Rules of Globalization Ian Bremmer : -( : -( ; -) : A greAt plAce to work What ideo, BlackRock, and Netflix know about building high-performance cultures Page 53 ©2013 Cartier calibre de cartier CHRONOGRAPH 1904-CH MC THE 1904-CH MC, THE NEW AUTOMATIC WINDING CHRONOGRAPH MOVEMENT, WAS CONCEIVED, DEVELOPED AND ASSEMBLED BY THE CARTIER MANUFACTURE IN THE GREATEST WATCHMAKING TRADITION. THIS MOVEMENT IS EQUIPPED WITH INGENIOUS SYSTEMS FOR UTMOST PRECISION: A COLUMN WHEEL TO COORDINATE ALL THE CHRONOGRAPH FUNCTIONS, A VERTICAL CLUTCH DESIGNED TO IMPROVE THE ACCURACY OF STARTING AND STOPPING THE TIMING FUNCTION, A LINEAR RESET FUNCTION, AND A DOUBLE BARREL TO ENSURE UNRIVALED TIMEKEEPING. 18K PINK GOLD 42 MM CASE, MECHANICAL MANUFACTURE CHRONOGRAPH MOVEMENT, SELF-WINDING, CALIBRE 1904-CH MC (35 JEWELS, 28,800 VIBRATIONS PER HOUR, APPROXIMATELY 48 HOUR POWER RESERVE), CALENDAR APERTURE AT 6 O’CLOCK, 18K PINK GOLD OCTAGONAL CROWN, SILVER OPALINE SNAILED DIAL, GOLD FINISHED CHAMFERS. ALLIGATOR STRAP. EXPLORE AND SHOP WWW.CARTIER.US - 1-800-CARTIER hbr.org January–February 2014 Contents 53 SpoTlIghT on TalENT aND PErformaNCE 54 IDEo’s Culture of helping Research at one office of the design firm revealed four keys to encouraging helpfulness among colleagues. Teresa Amabile, Colin M. Fisher, and Julianna Pillemer 62 building a game-Changing Talent Strategy BlackRock has succeeded in managing the tensions between strategic and...
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...62 HARVARD BUSINESS REVIEW Many have argued that the Internet renders strategy obsolete. In reality, the opposite is true. Because the Internet tends to weaken industry profitability without providing proprietary operational advantages, it is more important than everfor companies to distinguish themselves through strategy. The winners will be those that view the Internet as a complement to, not a cannibal of, traditional ways of competing. Strategy and the by Mich36l E. Porter Internet I "^ INTERNET is an extremely important new J technology, and it is no surprise that it has received so much attention from entrepreneurs, executives, investors, and business observers. Caught up in the general fervor, many have assumed that the Internet changes everything, rendering all the old rules about companies and competition obsolete. That may be a natural reaction, but it is a dangerous one. It has led many companies, dot-coms and incumbents alike, to make bad decisions - decisions that have eroded the attractiveness of their industries and undermined their own competitive advantages. Some companies, for example, have used Internet technology to shift the basis of competition away from quality, features, and service and toward price, making it harder for anyone in their industries to turn a profit. Others have forfeited important proprietary advantages by rushing into misguided partnerships MARCH 2001 63 strategy and t h e Internet and outsourcing relationships...
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...The Work of Leadership by Ronald A. Heifetz and Donald L. Laurie Reprint r0111k December 2001 Required Reading Barbara Kellerman r0111a r0111b HBR Survey Personal Histories: Leaders Remember the Moments and People That Shaped Them Primal Leadership: The Hidden Driver of Great Performance Daniel Goleman, Richard Boyatzis, and Annie McKee r0111c HBR Roundtable All in a Day’s Work A roundtable with Raymond Gilmartin, Frances Hesselbein, Frederick Smith, Lionel Tiger, Cynthia Tragge-Lakra, and Abraham Zaleznik r0111d What Titans Can Teach Us Richard S. Tedlow r0111e Best of HBR What Leaders Really Do John P Kotter . r0111f r0111g r0111h r0111j r0111k r0111l The Hard Work of Being a Soft Manager William H. Peace Leadership in a Combat Zone William G. Pagonis Leadership: Sad Facts and Silver Linings Thomas J. Peters The Work of Leadership Ronald A. Heifetz and Donald L. Laurie In Closing Followership: It’s Personal, Too Robert Goffee and Gareth Jones Best of HBR 1997 The Work of Leadership Followers want comfort, stability, and solutions from their leaders. But that’s babysitting. Real leaders ask Sometimes an article comes along and turns the conventional thinking on a subject not upside down but inside out. So it is with this landmark piece by Ronald Heifetz and Donald Laurie, published in January 1997. Not only do the authors introduce the breakthrough concept of adaptive change – the sort of change that occurs...
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...they 1) complement, rather than cannibalize, your established competitive approaches and 2) create systemic advantages that your competitors can’t copy. Integrating Internet initiatives enhances your company’s ability to develop unique products, proprietary content, distinctive processes, and strong personal service—all the things that create true value, and that have always defined competitive advantage. The Idea in Practice THE INTERNET’S INFLUENCE The Internet powerfully influences industry structure and sustainable competitive advantage. Industry structure derives from the basic forces of competition: competitor rivalry; entry barriers for new competitors; the threat of substitute offerings; and the bargaining power of suppliers, channels, and buyers. How does the Internet affect these forces? • It’s an open system whose technological advances level most...
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...originally prepared for C. Chapman, A. Hopwood, and M. Shields (eds.), Handbook of Management Accounting Research: Volume 3 (Elsevier, 2009). 1 Conceptual Foundations of the Balanced Scorecard Abstract David Norton and I introduced the Balanced Scorecard in a 1992 Harvard Business Review article (Kaplan & Norton, 1992). The article was based on a multi-company research project to study performance measurement in companies whose intangible assets played a central role in value creation (Nolan Norton Institute, 1991). Norton and I believed that if companies were to improve the management of their intangible assets, they had to integrate the measurement of intangible assets into their management systems. After publication of the 1992 HBR article, several companies quickly adopted the Balanced Scorecard giving us deeper and broader insights into its power and potential. During the next 15 years, as it was adopted by thousands of private, public, and nonprofit enterprises around the world, we extended and broadened the concept into a management tool for describing, communicating and implementing strategy. This paper describes the roots and motivation for the original Balanced Scorecard article as well as the subsequent innovations that connected it to a larger management literature. 2 “Conceptual Foundations of the Balanced Scorecard” Robert S. Kaplan David...
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