A COMPARATIVE ANALYSIS OF STRATEGIC DECISIONS

This study examines the process of upward influence in a variety of strategic decisions. The study provides a list of categories and supporting data for the agents, methods, perceived outcomes, and perceived causes of success and failure of upward influence interactions that impact upon the strategic decision-making process in organizations. The results suggest that: (a) middle-level managers (MLMs) deal directly with their superiors and use rational or persuasive arguments in their upward influence interactions in strategic decisions; (2) MLMs are very successful in their influence interactions and attribute their successes to internal causes; (3) MLMs and their superiors view the influence episode similarly; and (4) upward influence activity in strategic decisions is quite similar to upward influence activity in non-strategic decisions. The study also examines individual and organizational factors that are associated with success and failure in influence activity in strategic decision-making.     

Creativity Business Discipline = Higher Profits Faster from New Product Development

A study was conducted of 69 analysts evaluating 267 early-stage new product development (NPD) projects in a major global chemical company over a 10-year time span. Positive correlations were found between profits resulting from NPD project analyses and the degree of creativity of the analysts evaluating those projects. Creativity can be reliably measured with standard psychological instruments, such as the MBTI® Creativity Index. Analysts with MBTI Creativity Indices above the median for the group studied identified opportunities providing 12 to 13 times more profit than those with MBTI Creativity Indices below the median, when both groups were rigorously trained and coached in stage-gate business analysis methods.
NPD requires breakthrough creativity because the first ideas for commercialization are almost never commercial until they have been substantially revised through a thought process involving branching. It is therefore most productive to preselect innovative, creative people for the early stages of NPD, and then teach this group the business discipline required in stage-gate NPD processes.
The results show that by utilizing these principles, both the overall speed and productivity of typical NPD processes can be increased approximately nine-fold, or nearly an order of magnitude when compared to today's typical linear stage-gate processes.     

Consumer acceptance of provitamin A-biofortified maize in Maputo,Mozambique

Biofortified staple foods hold the potential to alleviate micronutrient malnutrition in many impoverished regions of the world. However, biofortification often alters the flavor, appearance, and other features of foods in ways that may limit consumer acceptance of the new varieties and diminish their impact. This research examined the acceptance of provitamin A-biofortified maize through taste tests and a trading experiment conducted in Maputo, Mozambique. On average, participants ranked the taste, texture, and appearance of their local white maize over an orange, biofortified variety and over a white variety with similar texture and flavor as the biofortified maize. Nonetheless, a large share of participants in a framed experiment accepted offers to trade local white maize meal for meal from the biofortified maize. Household size, the presence of small children, dietary diversity, and perceived taste were statistically significant determinants of acceptance. Results suggest that existing preferences for white maize do not preclude acceptance of orange, biofortified varieties and that provitamin A-biofortified maize may be a self-targeting nutritional intervention.     

A Solution Methodology for Probabilistic Capital Budgeting Problems Using Complex Utility Functions

Historically, the study of economic equipment replacement is primarily limited to that of a single machine or a single machining system. The replacement situation whereby machines under consideration are part of a large integrated system has received little attention. This paper proposes a framework, for the analysis of multiple-machine replacement within an integrated system context. The major difficulty of analyzing such a problem lies in the interactive nature of an integrated system; that is, how should the effects to the entire system be assessed as a result of alterations to one or more of its components. The emphasis of this work is on the issues regarding multiple machine replacement. A single-period model is utilized in order to simplify the presentation. A comprehensive example is also provided for illustration.     

Corporate returns and cash conversion cycles

This study examines the relationship between profitability measures and management of ongoing liquidity needs for a large cross-section of firms over a twenty-year period. Long-run equilibrium relationships between the cash conversion cycle, a measure of ongoing liquidity management, and alternative measures of profitability are tested using both nonparametric and multiple regression analysis. Industry and size differences are controlled. While there are exceptions to the general finding for specific firms and for specific industries, the paper offers strong evidence that aggressive working-capital policies enhance profitability.     

A Monte Carlo simulation estimating US hospital cost reductions associated with hypotension control in septic ICU patients

Objective: This economic analysis extends upon a recent epidemiological study to estimate the association between hypotension control and hospital costs for septic patients in US intensive care units (ICUs).

Methods: A Monte Carlo simulation decision analytic model was developed that accounted for the probability of complications—acute kidney injury and mortality—in septic ICU patients and the cost of each health outcome from the hospital perspective. Probabilities of complications were calculated based on observational data from 110?US hospitals for septic ICU patients (n?=?8,782) with various levels of hypotension exposure as measured by mean arterial pressure (MAP, units: mmHg). Costs for acute kidney injury (AKI) and mortality were derived from published literature. Each simulation calculated mean hospital cost reduction and 95% confidence intervals based on 10,000 trials.

Results: In the base-case analysis hospital costs for a hypothetical “control” cohort (MAP of 65?mmHg) were $699 less per hospitalization (95% CI: $342–$1,116) relative to a “case” cohort (MAP of 60?mmHg). In the most extreme case considered (45?mmHg vs 65?mmHg), the associated cost reduction was $4,450 (95% CI: $2,020–$7,581). More than 99% of the simulated trials resulted in cost reductions. A conservative institution-level analysis for a hypothetical hospital (which assumes no benefit for increasing MAP above 65?mmHg) estimated a cost decline of $417 for a 5?mmHg increase in MAP per ICU septic patient. These results are applicable to the US only.

Conclusions: Hypotension control (via MAP increases) for patients with sepsis in the ICU is associated with lower hospitalization cost.