From Cocoa to CSR: Finding sustainability in a cup of hot chocolate

Sustainability definitely has become a hot topic in recent years. Clearly, it is a subject that is not going away and whose importance in the corporate world is gaining currency. The notion of “doing well by doing good” is moving incrementally into mainstream business practice. In what might be considered a sea change, some very important customers now want to talk to supplier company CEOs and managers about their sustainability efforts, as do a growing number of consumers. And while it's hard to tell whether consumers are leading or following when it comes to the importance of sustainability, it's definitely on their radar. Business success increasingly is going to depend upon conducting operations today with a clear view to their impact on future generations. For this, and other valid reasons, we, as business leaders, need to arrive at a practical, workable model of sustainability. © 2008 Wiley Periodicals, Inc.     

Effects of managers' entrepreneurial behavior on subordinates

The recent surge of interest in promoting corporate entrepreneurship seems linked to a growing body of empirical evidence of a positive relationship between a firm's entrepreneurial orientation and its improved financial performance. Logical induction suggests that organizations that promote corporate entrepreneurship must employ managers who are entrepreneurial in their behaviors. By extension, it would seem that managers who are entrepreneurial must have a positive impact on their subordinates if the organization's entrepreneurial initiatives are to be successful. Unfortunately, despite the implicit appeal of this logic, what would “seem” to be true has not yet been substantiated empirically.To address this shortcoming and to provide managers with information from which to judge their efforts to promote corporate entrepreneurship, research was undertaken to address two specific research questions:

• 1.1. What behaviors distinguish managers who exhibit an entrepreneurial orientation?
• 2.2. How do subordinates judge the actions of managers who work for an organizational metamorphosis to an entrepreneurial model of management?

Providing a rigorous assessment of these issues necessitated the selection of a setting not typically seen as receptive to entrepreneurial initiatives. Thus, the data were collected from the two largest units of an electric utility system, one with 8,000 employees and $2.847 billion in 1992 revenues and the other with 10,000 employees and $4.297 billion in 1992 revenues. Together, these units employed 60% of the corporate staff and generated 89% of total corporate revenues.Because of the perception of the company's top management that the prospect of deregulation, if not its inevitability, threatened the viability of the company's traditional management style, executives considered specific programs to become more competitive. They formulated a plan for the long-term development of an entrepreneurial organization based on the belief of the company's executives that its future success required fundamental change in corporate culture and competitive posture.To track the evolution of its managers toward an entrepreneurial orientation, the company used two survey instruments developed with and administered by executives of the company to monitor each manager's progress and to evaluate its impact.To assess the types and frequency of entrepreneurial behaviors among managers, a theoretically driven, management “behaviors” questionnaire was developed. Eleven of its items were designed to assess entrepreneurial behavior as a distinguishable subset of generally advocated management practice. This survey was administered by the company to all 833 immediate subordinates of each of 102 individual managers.A second survey instrument, completed approximately 6 months after the behaviors questionnaire, was used to assess the “effects” of the managers' behaviors. Of particular interest were 12 questions from this instrument that measured the satisfaction levels of the 102 managers' 1,522 immediate and second level subordinates with the supervision that they received, i.e., the 12 items provided an indication of the effects of managers' entrepreneurial behaviors on their subordinates' satisfaction with the managers.The results of the data analyses support the idea that managers who are entrepreneurial in their behavior have a positive impact on their subordinates' satisfaction with their supervisors. The results indicate that as entrepreneurial behaviors increased, subordinates' satisfaction with supervision increased. Whereas 62% of the subordinates of entrepreneurial managers reported high levels of satisfaction with their supervisors, 69% of subordinates of bureaucratic managers reported low levels of satisfaction with their supervisors. Further analysis indicated that eight of 11 of the “behaviors” survey items were able to discriminate high and low subordinate satisfaction. This demonstrated that the scale developed through this research is robust in the measurement of entrepreneurial behaviors of managers.The major contributions of this study were in the development and validation of a scale that can be used to gauge entrepreneurial behaviors, and the finding that corporate entrepreneurship, as gauged by these behaviors, was well received by subordinates even when entrepreneurial management was counter to its organization's preexisting culture.     

Misconceptions about Market Orientation

Given the benefits of a market orientation, why do so many organizations fail to become market-driven? One reason is confusion over what it means to be market-driven. Some organizations have become “customer compelled ” and try to respond to whatever their customers say they want, without exercising any discipline. Others argue that it is sometimes best to “ignore the customer.” This latter view finds listening to customers deficient as a guide to action. This is a misconception based on three false dichotomies: (1) that you can either lead or follow customers, (2) that you can't stay close to both current and potential customers, and (3) that a technology push can't be balanced with a market pull.     

Measuring the unmeasurable: Setting standards for management performance

Goals need to be met as well as set. The problem comes in measuring such intangibles as service or management performance. But useful indicators do exist.Along the way the author proposes Odiorne's Law, “Things that do not change will remain the same,” and its corollary, “If you want things to be better, you probably will have to change something.”     

General managers control new and existing products differently

This article presents some initial findings from an ongoing research project on the way that divisional general managers of targe organizational units control new product innovations. (Control, in this instance, refers to the set of procedures, systems, and actions that general managers use to monitor, evaluate, influence, or define what subordinates are doing.) The research presented here focuses on three broad questions:

• 1.1. Do divisional general managers of large organizational units control their new product activities differently from their more established operations?
• 2.2. Is a new product's innovation strategy related to the nature and degree of divisional general manager control—and, if so, in what way?
• 3.3. Is a divisional general manager's choice of control methods related to his/her unit's new product output?

The results were based on in-depth interviews with the general managers of 26 large Canadian-based divisions in 12 firms. All the firms were significant competitors in the North American market and all were actively engaged in new product activities. Firm size ranged from $210 million to $5 billion in sales. The following is a summary of the study's principal findings and conclusions:

• 1.1. Control varies among dimensions. The study measured the degree of control exercised by divisional general managers over new and established products on 14 control variables. It was found that none of the new products (relative to established brands) was controlled in the same fashion by the managers. Instead, new products were always managed through a variety of “loose” and “tight” controls. In so doing, it appeared that the divisional general managers were trying to balance the control and freedom required by subordinates with new products.
• 2.2. Control varies with strategy. Both theory and empirical research generally support the notion of linkage between a unit's strategy and its organizational (eg, design, reward, placement, information, etc.) practices. The results of this study strengthen this line of thinking. The data show that both the nature and degree of divisional general manager control vary with three dimensions of product strategy (i.e., familiarity, uniqueness, and advancement).
• 3.3. Control varies with output. The analysis highlighted the pivotal relationship between divisional general manager control and new product output. Both the nature and degree of control were found to be associated with new product output in each strategic category. Although there does not appear to be one best way to control all types of new products, some divisional general management approaches to control were more preferred than others.
• 4.4. Loose formal/tight informal. The general managers' control patterns showed that formal control dimensions were usually managed more loosely than informal ones; that tighter informal controls were used to off-set (or “balance” ) the more relaxed formal dimensions; and that the observed reduction in formal control should not be interpreted to mean either the absence of bureaucracy or the absence of formal control. Indeed, some formal bureaucratic control was always found in the “high output” strategic categories. Thus, rather than being considered or labeled as typically “bad”, bureaucracy may in fact be “beautiful”—provided, of course, that it is appropriately used.

The article concludes by arguing that a divisional general manager's approach to controlling new products seems to make a difference in terms of performance. As such, the control approach chosen should not be made haphazardly or with abandon.     

Achieving Competitive Advantage Through the Application of Open Systems Theory and the Development of Strategic Alliances: A Guide for Managers of Nonprofit Organizations

ABSTRACT

To effectively compete in today's competitive business environment, nonprofit organizations need to operate as open systems developing strategic alliances with key actors. To help managers of nonprofit organizations develop such relationships, open systems theory is explained, the phrase “strategic alliances” is defined, and a system of alliances is presented as a tool for identifying and analyzing potential relationships.     

Exploring How Managers Conceive and Practice Market Orientation in Near “Perfect” Food Markets

Abstract

This paper explores what it means to be market-oriented in food commodity markets, i.e., markets that are near “perfect” as characterized in economics. This is an almost neglected topic in past research on market orientation. By eliciting how top managers in food commodity firms conceptualize market orientation, we reveal that their understanding and practice of market orientation partly deviates from the prototypical views reflected in the market orientation literature. Findings are discussed and implications highlighted.     

Competitive by design

This paper is concerned with the role of design in the competitiveness of manufacturing companies and reports on design management in commercially successful firms. The findings are based on a survey of design policies and practices in over one hundred British and foreign companies from several industries, ranging from furniture to electronics. The paper shows that while in theory design plays a key role in competition, influencing both “price” and “non‐price” factors, in practice many managers do not give design high priority in company strategy and product development. The commercially most successful firms were those that not only invested resources in design and managed it effectively, but had other strengths, for example in marketing and manufacturing.     

Consumer recycling goals and their effect on decisions to recycle: A means-end chain analysis

Means-end chain theory and the laddering methodology were used to derive the goals relevant to consumers for recycling, as well as the interrelations among goals. The importance of the goals and their hierarchical structure were also tested, and their effects on attitudes, subjective norms, and past behavior determined. Data were collected on 133 consumers in a moderate-size metropolitan community by use of a random digit dialing procedure. The overall framework emerging from the analyses is one where concrete goals lead to more abstract goals, and attitudes and past behavior intervene between goals and intentions in decision making. Nineteen total goals were uncovered, with 15 ultimately found to be salient. The topmost goals in the hierarchy were “promote health/avoid sickness,” “achieve life-sustaining ends,” and “provide for future generations.” The key lower-order goals—“avoid filling up landfills,” “reduce waste,” “reuse materials,” and “save the environment”—work through such intermediary goals as “reduce messy trash,” “curtail pollution,” “save resources,” and “save the planet.” Two important terminal goals that were also at intermediate levels in the hierarchy were “save/earn money” and “it's the right thing to do.” © 1994 John Wiley & Sons, Inc.     

Dineserv: A tool for measuring service quality in restaurants

If it's true that restaurant customers vote with their feet (and pocketbooks) when a restaurant doesn't measure up to their standards, how does a restaurant operator determine what guests think of the operation? To gauge consumers' opinions before they desert in droves, a restaurant operator can use the reliable questionnaire, called “Dineserv,” described here.     

Managing for Excellence in the Food and Beverages Industry

Abstract

In order to understand how to manage for excellence in the food and beverages industry, one must recognize some key principles that are utilized by top companies in this industry. The following article will provide detail examples of three top organizations to let the readers realize the strategies used by each company and what makes them superior than other competitors. The first example is about Nestlé's excellent achievement on market research and successful story about “Wellness strategy”. The second example shows how Coca-Cola produces the world's best known product and implements “Total Quality Management” and “Just-In-Time” system. The third example reveals the success secrets of McDonald's franchise kingdom and “three-legged-stool” relationship with its franchisees and suppliers. To be the top leader in the food and beverage industry, we suggest learning these skills.     

The calling of the virtuous manager: Politics shepherded by practical wisdom

This paper extends an ongoing discussion about establishing a sharper way to conduct ethical investigations into managerial virtue. It does so by relying on Alasdair MacIntyre's moral philosophy in place of those more dominant approaches taken by scholars who make up the field of positive social science. A connection is drawn herein between a MacIntyrean “narrative approach” to investigating managerial virtue and the idea of “work as a calling.” Specifically, it will be argued that the MacIntyrean-influenced idea of “work as a calling” provides a substantive moral vision that supports an understanding of how virtuous managers ought to narrate their primary workplace motivations. Ultimately, virtuous managers fulfill a “political calling” to support and sustain (a) good work, (b) the good of individual lives, and (c) the common good of communities that their organization reaches. To do this, they must rely on the “shepherd virtue” of practical wisdom (phronesis). Practical wisdom aids virtuous managers’ thinking about achieving the ends of their “calling” as well as any necessary course-corrections that ought to be made toward the better achievement of those good and worthy ends.     

Competing through relationships: Grounding relationship marketing in resource‐advantage theory

A common element of all views of relationship marketing is the “co‐operate‐to‐compete” thesis. That is, to be an effective competitor often requires one to be an effective co‐operator. One implication of this thesis is that not all instances of firms co‐operating with each other constitute anti‐competitive collusion. This article argues that, although neoclassical, perfect competition theory cannot provide a theoretical foundation for relationship marketing's “co‐operate‐to‐compete” thesis, the recently developed “resource‐advantage” theory of competition can do so. Furthermore, this article uses resource‐advantage theory to address the relationship portfolio conundrum. Specifically, the paper argues that firms should develop a relationship portfolio that is comprised of relationships that constitute relational resources.     

An Investigation of Ghana's Tourism Positioning

ABSTRACT

The purpose of this paper is to gain a deeper understanding of Ghana's tourism positioning and whether a literature-derived positioning framework can further elaborate the latter. Using the face-to-face long interviews among key policy makers, marketing managers and experts, and observation techniques, data were collected and analyzed via the inductive reasoning approach. The results show that Ghana's tourism positioning aim is built around perceptions of a “com petitive middle class tourist destination,” i.e., “profit and status” through the pursuit of “functional” positioning objective. Positioning strategies including “service”, “value for money”, “culture”, “selectivity”, “attractiveness”, “reliability”, “manpower development”, “quality controls” and “ecology” are pursued in order to achieve the aim and objectives. The latter are managed/positioned in the “primal” positioning life cycle stage. Conclusions, managerial implications, future research directions and limitations are noted.     

Enduring Attitudes and Contextual Interest: When and Why Attitude Surveys Still Matter in the Online Consumer Decision Journey

Consumers leave traces of key interest to managers on their journey to purchase. Next to traditional survey-based attitudes, readily available online metrics now show aggregate consumer actions. But how do survey response metrics and online action metrics relate to each other? To what extent do they explain and predict brand sales across consumer categories? This article shows that surveys and online behavior provide complementary information for brand managers. Times series data for 32 brands in 14 categories reveal low correlations but substantial dual causality between survey metrics and online actions. Combining both types of metrics greatly increases the model's power to explain and predict brand sales in low-involvement categories. By contrast, high-involvement categories do not gain much from adding survey-based attitudes to a model including online behavior metrics. The authors synthesize these generalizations in a new framework relating enduring attitudes to the contextual interest expressed by online actions. This new framework helps managers assess both types of metrics to drive brand performance depending on whether their goal is short-term sales or long-term brand health.     

Marketing by CPAs

Abstract

Until the late 1970s, the AICPA discouraged commercial advertising and some other marketing tactics by practicing accountants. This study contacted 600 CPAs in the U.S. in an attempt to discover what kinds of marketing they employ, how useful they think it is, and how appropriate do they feel the AICPA's rules and regulations are in regard to marketing an individual CPA's services. Most thought the AICPA was fair. Accountants doing the most marketing tend to be younger males. “Conflict of Interest” was the area of most current concern in light of the ongoing problems of public accounting firms doing both auditing and consulting for the same client. “Newspaper” was the preferred advertising medium. Most of those surveyed were pleased the AICPA relaxed its restrictions on marketing and advertising, even though many CPAs still do not market their services to any great extent. This may change as younger accountants fill leadership positions in U.S. accounting firms.     

Consumer Interest Litigation: A Case Study of Nader v. Allegheny Airlines

The Nader case highlights the related problems of airline “overbooking” and passenger “no shows,” and raises the question of what public policy should be in this area. The paper analyzes the efficiency and equity aspects of Nader's attempt to eliminate overbooking. It also focuses attention on the interplay of litigation and regulation as instruments of economic policy change.     

Customers,marketing and the network organization

Customers are becoming more demanding. Network organizations are emerging which embrace customers, and are more flexible and responsive to their needs. CEO's increasingly regard customers as part of the organization. Customers are too important to be “left” to one or two directors and their divisions. CEO's are requiring everyone to focus upon the requirements of customers. To help achieve this, organizations are seeking ways of linking remuneration and performance assessment to customer satisfaction. Increasingly customers assume reliability and performance. Quality of itself may no longer differentiate alternative suppliers. In markets in which all suppliers have their quality programmes, managers need to consider what lies beyond quality. Reason is no longer enough. Less tangible factors such as feelings, emotions and values need to be understood. CEO's question whether marketing departments can respond to these and other challenges and help facilitate the changes they are seeking.     

A four-step approach to 1992

Here's a four-step process to help you analyze both the opportunities and potential hazards of 1992. Even if you've already made your plans, it's a way to make sure you've considered all the implications of a Single Europe.     

Factors Contributing to Internal Customer Satisfaction and Commitment in Quick Service Restaurants

Abstract

The fast-paced, highly competitive nature of quick service restaurants (QSRs) has motivated members of the industry to develop creative ways to optimize customer satisfaction. This search for competitive advantage has fueled an increased interest in employees as “internal customers” who are primarily responsible for external customer satisfaction. The hospitality industry is unique in that employees are part of the product; they directly provide the service component. This project surveyed over 900 hourly and salaried employees at 61 QSRs. The results indicate strategies and tactics to maintain satisfied and “actively” as well as “passively” committed employees. In turn these employees may be an employer's greatest marketing tool.