Market Performance Implications of the Transfer Price Rule

The “transfer price rule” (TPR) defines a vertical price squeeze as an input price, output price combination set by a vertically‐integrated firm monopoly producer of an essential input that would not allow the firm's downstream unit to earn at least a normal rate of return on investment in the “as‐if” case that it had to purchase the input at the price charged independent firms. In its 2009 linkLine decision, the U.S. Supreme Court rejected the TPR for the purpose of enforcing the anti‐monopolization prohibition of Section 2 of the Sherman Act. In contrast, a vertical price squeeze, defined by a TPR‐like standard, is an abuse of a dominant position under Article 102 of the Treaty on the Functioning of the European Union. In this article, we model the impact of the TPR on market performance. We find that the TPR increases consumer surplus and net social welfare if all firms remain active in the downstream market. It sometimes induces the upstream firm to refuse to supply the downstream firm, and in such cases, consumer surplus and net social welfare are reduced. The impact of the TPR on market performance thus depends on whether or not an upstream firm can refuse to supply downstream firms on terms that would offer it at least a normal rate of return on investment.     

How much for cash? Tackling the cash-in-hand ethos in the household services sector

To tackle cash-in-hand work, public policy has so far concentrated on detecting and punishing the suppliers of such work. Drawing upon evidence from 861 face-to-face interviews in English localities on off-the-books work in the household services sector, however, a widespread cash-in-hand ethos amongst customers is identified suggesting that there is a need for the current raft of supply-side measures to be complemented with demand-side initiatives to encourage consumers to use formal labour. How this might be achieved is then outlined.     

Stratography: The art of conceptualizing and communicating strategy

Representations of strategy tend to either be so generalized as to have little real meaning for employees, or go into such detail that people struggle to understand what is really required. The problem is this: a strategy not understood by those charged with implementing it is as bad as, or even worse than, not having a strategy at all. In 1983, a classic Business Horizons article by Karl Weick highlighted the importance of using graphical approaches to overcome strategy relation challenges; however, since then, little has been written regarding how managers might accomplish this successfully. Our article argues that individualized drawings of strategy, or what we term ‘stratography,’ could enable more effective conceptualization and communication of the strategic complexity that organizations face and the paths they are seeking to follow. Herein, we employ the latest thinking in cartography, educational philosophy, optics, graphic design, and military protocol to outline seven good practices of effective stratography.     

An Empirical Approach to Service Classification for Productivity Management Studies

This paper presents key results of a research project on the application of service dimensions and classifications, to study differences between productivity management challenges across 12 important service sectors in the UK. The research methodology was mainly empirical in nature: unlike other research in this area, appropriate service dimensions and consequent classification models were introduced only after analysing the relationship between a number of candidate dimensions and aspects of productivity management. Among the dimensions studied, Front/Back Value Added, Personnel Judgement and Product/Process Focus turned out to be suitable indicators for a range of aspects relating to productivity management in services.     

Barriers and stimuli to the use of information technology in retailing

The retail marketing environment is continuously changing. Changes in retail format, retailing processes and the competitive environment continue to create problems for retail management. This article examines the barriers and stimuli to the adoption of innovation in infonnation technology. Our objective is to demonstrate how managers might anticipate the problems associated with managing significant change and develop appropriate strategies to deal with such problems. Previous research has indicated that it is important to explore the views of a range of managers in the organization. Much of the previous research has relied on a single respondent from many organizations to provide an accurate picture. This research does not follow that tradition. It uses the views of more than one hundred managers within one organization. The research explores the relative attractiveness of the innovation to individual managers, the organization's receptivity to change and the presence or absence of a 'product' champion. It ends with recommendations on ways of improving the rate of acceptance of such technologies.     

Top‐Down Versus Bottom‐Up Demand Forecasts: The Value of Shared Point‐of‐Sale Data in the Retail Supply Chain

Accurate demand forecasts are critical to maintaining customer service levels and minimizing total costs, yet increasingly difficult to achieve. Using weekly point‐of‐sale (POS) and order data for 10 ready‐to‐eat cereal stock‐keeping units from 18 regional U.S. grocery distribution centers, this research empirically investigates two demand forecasting issues: (1) the accuracy of top‐down versus bottom‐up demand forecasts; and (2) whether shared POS data improve demand forecast accuracy. The results reveal a previously unexplored relationship between demand forecast methodology and the use of shared POS data. We find that the superiority of the top‐down or bottom‐up forecasting as the more accurate demand forecast method depends on whether shared POS data are used.     

Progressive Yet Traditional

Historically, women have had low participation in technological fields, and this has been reflected through negative portrayals of women in technology advertisements. As producers of e-commerce, women have made significant advances, in many cases approaching and even exceeding men. Thus, the purpose of this study is to examine whether e-commerce advertisements continue to reflect negative stereotypical sex differences in relation to technology. Understanding these patterns is critical, as negative portrayals may propagate harmful stereotypes to men and women; in addition, women exposed to these ads may view them disapprovingly and develop negative attitudes toward the brands. To examine this, a content analysis of e-commerce ads in magazines was conducted. Results illustrate that, compared to past studies, ads for e-commerce products and services portray women more equitably.     

The financialisation of business ethics

Business schools have become implicated in the widespread demonisation of the financial classes. By educating those held most responsible for the crisis – financial traders and speculators – they are said to have produced ruthlessly talented graduates who have ambition in abundance but little sense for social responsibility or ethics. This ethical lack thrives upon the trading floor within a compelling critique of the complicity of the pedagogy of the business school with the financial crisis of the global economy. An ethical turn within the curriculum is now widely encouraged as a counteractive force. Within this paper, however, we argue that taking this ethical turn is not enough. For business ethicists to learn from the financial crisis, the crisis' legacy needs to be taken account of, and financialisation needs to be taken seriously. Pedagogical reform cannot bracket itself off from the crisis as if it were coincidental with or separate from it. Post-crisis pedagogy must rather take the fact that it is requested now, in light of the crisis, as its very point of departure. The financial crisis must not be understood as something to be resisted in the name of Business Ethics. Instead, the financial crisis must be understood as the very foundation for contemporary Business Ethics in particular and for contemporary business and management education more generally.     

Revisions of labeling for personal watercraft: Part 1 – label development

This two-part paper presents a comprehensive case study related to the development and evaluation of warning labels. In particular, this two-part paper describes the development and evaluation of revised warning labels applicable to a class of products known as personal watercraft (PWCs), and serves as an example application of a general warnings design process described by Frantz et al. Part 1, presented in this paper, includes the process of project planning, identifying and analyzing hazards, and developing two preliminary warning labels to address PWC operational hazards. Included are discussions regarding the methods used to address problems frequently encountered in the development of warning labels. Topics of these discussions include the prioritization and selection of hazards to be addressed, message development strategies, avoiding information overload, and organizing the presentation of information using human factors models and concepts. The work conducted in Part 1 resulted in two preliminary labels: one label dealing with issues related to Collision Avoidance and a second label dealing with General Operational Hazards. Part 2, the companion article, describes the process of evaluating and revising the preliminary labeling to produce the final labels. Discussions regarding the methods used to address challenges related to the evaluation and revision of warning labels are provided. As a result of the entire process, revised labels for PWCs with increased uniformity will be used by PWC manufacturers, although flexibility for specific model features or future changes in design will be retained.