Advanced models of quality function deployment: a literature review

In this paper, a literature review conducted to study the characteristics of advanced models of quality function deployment (QFD) that have appeared in the literature arena is reported. QFD technique emerged in Japan in the 1970s. QFD has been proving to be a powerful tool that can be used for translating the voice of customers into technical languages. Yet from the beginning of this century, researchers began to point out the need to refine, modify and improve the features of QFD technique. In order to fulfil this need, few researchers brought out several advanced models of QFD. While conducting the literature review reported in this paper, six types of such advanced models of QFD were identified in the literature arena and their characteristics were studied. The result of this study revealed that the procedural and computational complexities are least in the case of an advanced model called total quality function deployment (TQFD). TQFD technique replaces the complex computations involved in applying conventional QFD technique with simple ratings. Besides the formation of teams to translate the voice of customers into work instructions ensures the quick reactions to the customers’ desires in the actual field of implementation. In this background, at end of this paper, it is suggested to adopt TQFD for implementation in traditional organizations in which the prevalence of adequate education for adopting complex procedures is found to be least.     

The organization of the future: Unity of marketing and strategy

Marketing and strategy, while once diverse activities and entities, are moving ever closer together—in this paper it is speculated that they may someday become one. This is in response to changing business environments, and to the emergence of new organizational forms. However, a more fundamental force may be the simple recognition that without relationships there is no need for strategy, and that relationships are fundamental to marketing.     

Reserves and Baskets

We discuss three well known plans that were offered in the twentieth century to provide an artificial replacement for gold and key currencies as international reserves: Keynes’ Bancor, the SDR and the Ecu(predecessor to the euro).The latter two of these reserve substitutes were institutionalized but neither replaced the dollar as the principal medium of international reserve.     

The welfare effect of income tax deductions for losses as insurance: Insured- versus insurer-sided adverse selection

Kaplow (1992) shows in a complete-information environment that allowing income tax deductions for losses as partial insurance is undesirable in the presence of private insurance markets. This paper elaborates on Kaplow's finding by studying two extreme types of asymmetric information structures in private insurance markets: Either the insured or insurers possess superior information. It is shown that our derived result is consistent with Kaplow's if the insured have superior information; however, Kaplow's negative conclusion with respect to the income tax deduction will be overturned if insurers have superior information instead. A policy implication from our finding is that whether or not to allow an income tax deduction for losses needs to be more refined and, specifically, it should be tailored to the “adverse selection” information structures of private insurance.     

Inflation Developments and Perceptions after the Euro Cash Changeover

Abstract. This paper analyses the evolution of inflation and of consumers' inflation perceptions in the aftermath of the euro cash changeover. It finds that the cross‐country variation of food product inflation was dependent on the complexity of conversion rates, with statistically significant and economically sizeable effects especially for low‐priced items sold in midpriced stores. The paper also shows that cross‐country differences in the mismatch of perceived and actual inflation were linked to differences in the complexity of conversion rates. These results are in line with theories of finite information‐processing capacities on the side of consumers.     

A narrative networks approach to understanding coordination practices in emergency response

This paper examines coordination practices in emergency response by adopting a narrative networks approach (Pentland & Feldman, 2007). We apply this approach in the analysis of qualitative data collected in an empirical longitudinal study (2003–2006) of emergency response across a geographical region of Greece. We provide an in-depth narrative analysis of two different emergency incidents and the efforts to coordinate those. The paper concludes with the implications of using a narrative networks approach for understanding the temporal and situated nature of coordination, while placing emphasis on the performativity of coordination practices.     

The appropriateness of default investment options in defined contribution plans: Australian evidence

For participants in defined contribution (DC) plans who refrain from exercising investment choice, plan contributions are invested following the default investment option of their respective plans. Since default investment options of different plans vary widely in terms of their benchmark asset allocation, the most important determinant of investment performance, participants enrolled in these options face significantly different wealth outcomes at retirement. This paper simulates the terminal wealth outcomes under different static asset allocation strategies to evaluate their relative appeal as default investment choice in DC plans. We find that strategies with low or moderate allocation to stocks are consistently outperformed in terms of upside potential of exceeding the participant's wealth accumulation target at retirement as well as downside risk of falling below that target outcome by aggressive strategies whose allocation to stocks approach 100%. The risk of extremely adverse wealth outcomes for plan participants also does not appear to be very sensitive to asset allocation. Our evidence suggests the appropriateness of strategies heavily tilted towards stocks to be nominated as default investment options in DC plans unless plan providers emphasize predictability of wealth outcomes over adequacy of retirement wealth.     

Takeover risk and the correlation between stocks and bonds

Existing research suggests that, for a given firm, stock returns and bond prices are positively related, and this implies a negative relation between stock returns and bond spreads. In this paper, we show how takeover risk influences this relation. Bondholders of high-rated firms can suffer losses in a takeover, particularly if the takeover is largely funded with debt, resulting in a more positive (or less negative) correlation between stock returns and bond spread changes. Consistent with this notion and based on a large sample of data covering the period from 1980 to 2000, we find that high-rated firms which are likely to be taken over have a more positive correlation between stock returns and bond spread changes, while target firms with a poison put or an indebtedness covenant have a more negative correlation. Overall, our findings have implications for the pricing and hedging of bonds and default risk based financial products such as credit default swaps.