Estimating profit performance from similar profit centers

A decision model involving discriminant analysis provides a method by which both upper and middle managers can avoid some pitfalls that are likely to result in the substantially subjective process of pertbrmance evaluation of profit centers. It is designed to provide more objective, more timely, and possibly more accurate information. The model is not designed to estimate the return on investment for a profit center. The resulting discriminate score provides a direct evaluation of a profit center’s management.     

The role of marketing in the introduction of technologically new products: the case of the electric car

The energy and environmental crises are important problems facing the United States today. With less than 6% of the world's population, the U.S. accounts for 47% of the world's automobiles and nearly 35% of the total energy demand. Automobiles consume nearly 14.5% of the total energy demand and are the major source of air pollution. Whiel there are many potential solutions for the energy and environmental crises, this paper specifically focuses on how the electric car can be a partial answer to the complex problem of personal transportation. The paper specifically discusses the role of marketing in bridging the gap between technology and the consumer. On the basis of an extensive exploratory study, the authors contend that there is sufficient interest among consumers for an economical, pollution-free, electric car. Understanding the consumer's need and developing a product that is feasible, considering existing technology, is the role that marketing must play.     

Consumer legislation: A proactive or reactive response to consumerism?

The number and rate of development of new consumer legislation necessitates the evaluation of existing legislation. This paper summarizes and categorizes, in detail, the impact of select pieces of consumer legislation on consumer decision making. It is an implied objective of the paper to provide a perspective for future public policy formulation. The pieces of legislation evaluated in the paper are: (1) unit pricing; (2) product labeling; and (3) disclosure of interest rate provisions for consumer credit. The impact of these pieces of legislation have been minimal, indicating the need for an educational program for consumers.     

Strategy in research design and hypothesis testing

The efficiency of a research design may be measured in terms of the degree to which knowledge is enhanced within given resource constraints. Thus, two different types of research design, even though they contain the same number of expected observations, may differ considerably in the amount of information provided. An example is the number N of 32 observations obtained with an analysis of variance witheither 2 factors, 2 levels per factor and a replication of 8or 4 factors, 4 levels per factor and a replication of 2. We analyze and compare the relative efficiencies of regression and variance analysis models and their implications to research strategy development. Three major considerations are evaluated: (1) short versus long time horizon (interval until effects of a decision are realized), (2) small versus large cost of erroneous rejection of the Null Hypothesis and (3) gross versus refined stage of development of the research study. A set of general guidelines towards improved designs is developed.     

The case of the team-spirit tailspin

Richard Johnson, newly appointed president of Century Airlines, knew the company's survival depended on customer service, which in turn depended on motivated employees. So he created the Century Spirit program to build team spirit by encouraging employee participation, individual initiative, and open communication. Among the program's early successes was a newspaper started by a group of flight attendants. The Plane Truth published information about benefits and work conditions as well as feature stories and humorous articles. It quickly became popular not only with flight attendants but also with pilots, machinists, and baggage handlers. As time went on, though, the Plane Truth began to run articles critical of the company. When management cut back workers' hours, the newspaper questioned what sacrifices the executives were making. When technical services released figures showing long turnaround times, the paper questioned the machinists' work ethic. Worried that customers might see the newspaper, Richard Johnson wanted to cancel it. The president of the flight attendants union also wanted to see it go because it was stirring up trouble with the machinists. Joan Raffin, Century's human resources director, was asked to stop the publication. But she hesitated. She knew that employee morale was on the brink, but she didn't know whether the newspaper was venting workers' frustrations and reinforcing team spirit or stirring up old animosities and bringing the whole company down. Was it creating more tension than unity or vice versa? Experts on organizational change, motivation, and management analyze the situation and make recommendations for what Joan Raffin should do.