Articles

Imagine the factory of the future. Will computer-integrated manufacturing (CIM) systems be essential parts of that factory? Perhaps not, argue the authors, because the assumptions underlying computer-integrated manufacturing are seriously flawed. Flexible technology will not address the causes of manufacturing problems; it may simply institutionalize bad practice. Better to address organizational issues first, then apply flexible technologies as a last resort.

Managers who wish to improve customers' image of their companies can run communication campaigns, improve products, add personnel, and so forth. But how can managers decide which improvements in perceptions would be most beneficial and cost-effective? The authors present a method to (1) determine the company attributes that are relevant to customers; (2) rank the importance of those attributes; (3) estimate the costs of making improvements (or correcting customer perceptions); and (4) prioritize image goals so that the improvements in perceptions obtain the maximum benefit, in terms of customer value, for the resources spent.

Wading through all the advice on strategic planning for information technology (IT) can be difficult. The authors have assembled a general framework from a number of methodologies and have used it successfully in their work with companies. They argue that an organization's primary concern should be to integrate the IT strategic planning process with the general strategic management process. The process should result in a coherent program that works across the corporate, business, and functional levels.

Private labels or store brands are an important source of profits for retailers and a formidable source of competition for national brand manufacturers. Market share of private labels, however, varies dramatically across categories. The authors propose and test a framework to explain this variation in order to understand the determinants of private label success in the U.S. supermarket industry. They find that private labels perform better in large categories offering high margins. Private labels also do better when competing against fewer national manufacturers who spend less on national advertising. Surprisingly, high quality is much more important than lower cost.

The Toyota-GM joint venture, NUMMI, and Volvo's Uddevalla plant represent two different ways of organizing the labor-intensive production of standardized products, in this case, auto assembly. NUMMI is based on the Japanese "lean production" model, whereas Uddevalla has been called a "human-centered" model. Which model can best simulate continuous improvement while maintaining worker morale? The authors argue that the answer is, emphatically, NUMMI.

Managers don't need any more vague advice about paying better attention to customers. They need the practical, step-by-step methods described in this article. In 1990, a medical equipment manufacturer needed to redesign one of its products to beat an aggressive competitor. It used a method called the "House of Quality," which related market research information directly to product design, thereby helping the company focus effectively on the most important product benefits. The new design revolutionized the product and was a phenomenal success. Here's how the company did it.

To decide whether to pursue a global strategy, you need to examine industry dynamics

It's not easy to negotiate cross-culturally. Not only do we tend to misunderstand the behavior of the other party, we often don't realize how deep behavior differences go. Americans have read that Japanese typically respond to direct questions with vague answers and silence. But that's only part of the story. This paper tells the rest. The authors explain how Japanese behavior is significantly tied to context. They describe the important cultural mechanisms that affect this context and offer suggestions for Americans who want to handle these situations more effectively.

Are there opportunities for MNCs in Africa? These authors suggest that multinationals move with caution, but for the firms willing to make serious, long-term commitments, the rewards are there. They provide some practical suggestions for marketing and structuring an African operation.

Individual products are the offspring of product platforms that are enhanced over time. Product families and their successive platforms are themselves the applied result of a firm's underlying core capabilities. In well-managed firms, such core capabilities tend to be of much longer duration and broader scope than single product families or individual products. The authors recommend a longer run focus on enhancing core capabilities, which includes identifying what they are and how they are applied and synthesized in new products.