THE CHARACTERIZATION OF GOODS AND SERVICES: AN ALTERNATIVE APPROACH

The definitions of goods and services have been debated among economists for more than two centuries. This article seeks to consider the definitions currently used from a critical perspective and to offer a new general definition of services that is compatible with the existence of several demand rationales.     

The Sources and Advantages of Japanese Industrial Organization

Using agency theory, this paper investigates advantages linked to Japanese industrial organization. Three variables theoretically linked to keiretsu organization, ownership structure, inter-firm investment, and financing flexibility were able to correctly classify U.S. and Japanese firms. We detect polarization of U.S. and Japanese firms in terms of performance and strategic decisions.     

Consumer bankruptcy in Utah (USA): who files and why?

This study examined consumer debtors who filed for bankruptcy and their reasons for filing in Utah, the U.S. state that ranked first in household filing rate in 2002–2004 and consistently ranks in the top ten of the 50 states. The purpose of the study was to determine the demographic characteristics of debtors and reasons for filing. Data were collected during 2004–2005 via survey from 508 debtors. The debtors reported employment problems, medical expenses, divorce or other family problems, as well as trouble managing their finances and overuse of credit cards. More than half of the debtors owed medical providers. Debtors were more likely to report a reduction in income than job loss. Self‐employed persons were over represented. Respondent debtors are less educated, less likely to be married and less likely to own a home compared with Utahns and other Americans. Contrary to expectations, debtor households were smaller than the state average, which may be due to the young age of debtors. Results suggest that in order to reduce the bankruptcy rate in Utah, consumer educators should target renters, adults with less than a college education, divorcing persons and small business owners. Utah's mandate for a personal finance graduation requirement should be implemented early in the secondary school curriculum.     

Option pricing and replication with transaction costs and dividends

This paper derives optimal perfect hedging portfolios in the presence of transaction costs within the binomial model of stock returns, for a market maker that establishes bid and ask prices for American call options on stocks paying dividends prior to expiration. It is shown that, while the option holder's optimal exercise policy at the ex-dividend date varies according to the stock price, there are intervals of values for such a price where the optimal policy would depend on the holder's preferences. Nonetheless, the perfect hedging assumption still allows the derivation of optimal hedging portfolios for both long and short positions of a market maker on the option.     

Acquisition Strategy and Dominant Logic in an Engineering Firm

This paper presents a dynamic model of acquisition strategy and applies it to the case history of a large engineering firm. The paper uses the notion of 'dominant logic' first put forward by Prahalad and Bettis (1986) to explain how the firm's acquisition strategy and management approach evolved. It is suggested that the core activities and history of the firm led to the development of a management approach that emphasized individual autonomy and development, ad hoc structural arrangements, a short-term focus, and flexibility and opportunism. These characteristics persisted over time and tended to inhibit both commitment to intended strategies and extension of core competencies. At the same time, this logic encouraged opportunistic acquisitions which snowballed into a major new strategic thrust. It is concluded: (a) the firm's 'dominant logic' rooted in core activities and in the history of a firm can be used to explain its acquisition management behaviour; (b) the more malleable elements of a dominant logic can be somewhat extended under the thrust of key managers, but permanent change will not occur as long as these shifts conflict with more immutable elements; (c) in a process of growth by acquisition, a firm will tend to preserve its unique dominant logic until the inconsistencies it creates are revealed in a crisis or series of crises. One mode of adjustment may then be to operate under more than one dominant logic to accommodate the firm's heterogeneity.     

Consumer goals/skills that mothers want their children to learn

The study purpose was to assess consumer practices and attitudes of mothers (n = 117), and consumer goals/skills that their children were to learn. Mothers with at least one child aged 5–9 years were recruited from an ongoing study and through posters, flyers and referrals. Mail‐out surveys included a validated consumer questionnaire and requests for information related to socioeconomic status (SES), age, paid‐employment and gender/age of children. Responses were analysed using SAS, Cronbach’s alpha and qualitative analyses. Results indicated that mothers were of middle/upper SES and had 2.3 children/family, and 64% were in paid‐employment. Mother–child co‐shopping and mothers’ role modelling were major means of teaching consumer goals/skills. Children were to learn about getting the best buy and quality for the money, cost/unit comparison, being knowledgeable about products and avoidance of impulse buying. Mothers were consciously consumer training their children.     

About “strategy” and “strategies” in supply management

This article addresses the context and content of a generic supply strategy and discusses its strategy-making process. Building mostly on fundamental strategic management theories, the authors explain the role of supply strategy in its managerial context. In so doing, some light is shed on the meaning and use of the terms “strategy” and “strategies”. Also, a practical conceptual framework for supply strategy formulation is provided. The generic checklist, built by segmenting supply management decisions, is intended to guide supply professionals in addressing strategic issues to create value to customers, avoiding confusion and optimising resource allocation.