Measures used to evaluate industrial marketing activities

Given the importance of controlling marketing efforts, a study was conducted of industrial manufacturers to determine the extent of their use of various measures to evaluate different marketing activities. The predominate measures used for evaluation were sales volume with much less utilization of profitability, productivity, and expense measures.     

Emotion As Well As Reason: Getting Students Beyond "Interpersonal Accountability"

The paper notes the recent spread of business ethics courses in American higher education, observing that teachers trained in economics have not readily incorporated ethical notions or theory into regular courses, such as finance, management, accounting, and marketing. The presumed ethically neutral, value-free approach of economists, who dominate business courses, is increasingly inadequate to meet the needs of business managers – or of business students. Technological and political changes, creating an interdependent environment within which managers operate, have eroded older ethics based on tradition and common backgrounds. They have also raised ethical issues of new orders of complexity. With corporate business managers finding ethical concerns more pressing matters than do many teachers, the paper offers some tentative answers to three questions about how to interest business students in ethical issues: What Approach to Business Ethics Gets student's Attention? What Is the Value of Simulations and Games? What Can Be Said About the Business System And Its Values? The answer to the first question is simulations and games. Case method analysis is serviceable, engaging students' intellect, but all too often without emotional involvement or self-revelation. Experiential learning through class-room games accomplish both engagement and involvement in ways that are exceedingly helpful to business students, who have had "less occasion for critical reflection on self and world than have others of their age." The answer to the second question is: They engage the whole student, stimulating the player to examine the source of her ethical strengths and the reasons for ethical lapses. Generating emotional involvement the games leverage and enhance reasoning, allowing students to learn more about their own values and question their own behavior. The answer to the third question is: A socially justifiable (community-legitimated) competitive market system requires of its managerial participants an emotionally informed response – as well as a rational analysis and use of business techniques. Business operates with enhanced effectiveness efficiency at appropriate levels of such virtues as loyalty, trustworthiness and cooperativeness; they ensure externality benefits as well as promote justice for its own ultimate social justification.     

The dawn of the e-lance economy

Will the large industrial corporation dominate the twenty-first century as it did the twentieth? Maybe not. Drawing on their research at MIT's Initiative on Inventing the Organizations of the 21st Century, Thomas Malone and Robert Laubacher postulate a world in which business is not controlled through a stable chain of management in a large, permanent company. Rather, it is carried out autonomously by independent contractors connected through personal computers and electronic networks. These electronically connected free-lancers-e-lancers-would join together into fluid and temporary networks to produce and sell goods and services. When the job is done--after a day, a month, a year--the network would dissolve and its members would again become independent agents. Far from being a wild hypothesis, the e-lance economy is, in many ways, already upon us. We see it in the rise of outsourcing and telecommuting, in the increasing importance within corporations of ad-hoc project teams, and in the evolution of the Internet. Most of the necessary building blocks of this type of business organization--efficient networks, data interchange standards, groupware, electronic currency, venture capital micromarkets--are either in place or under development. What is lagging behind is our imagination. But, the authors contend, it is important to consider sooner rather than later the profound implications of how such an e-lance economy might work. They examine the opportunities, and the problems, that may arise and anticipate how the role of managers may change fundamentally--or possibly even disappear altogether.     

Predicting Bank Failures: A Comparison of On- and Off-Site Monitoring Systems

On-site examinations are regulators' primary tool for monitoring the financial condition of federally insured depository institutions. In this paper, we assess the speed with which the information content of the supervisory rating assigned during bank exams—the CAMEL rating—decays. This is an important issue because cost and regulatory burden considerations often cause CAMEL ratings to be assigned relatively infrequently. As a benchmark for information content, we use econometric forecasts of bank failures generated by applying a probit model to publicly available accounting data. When compared with all CAMEL ratings available at a given point in time, the econometric forecasts provide a more accurate indication of failure. Further analysis reveals that this overall finding reflects the tendency for a CAMEL rating's information content to deteriorate noticeably beginning in the second or third quarter after the rating initially was assigned.     

Mortgage Brokers,Origination Fees,Price Transparency and Competition

This article examines the dynamics between mortgage broker competition, origination fees and price transparency. A reverse first‐price sealed‐bid auction model is used to motivate broker pricing behavior. Confirming the model predictions, our empirical analysis shows that increased mortgage brokerage competition at the Metropolitan Statistical Area level leads to lower fees. The findings are robust to different measures of fees as well as different measures of competition. We also provide evidence that broker competition reduces mortgage origination fees on retail (nonbrokered) loans as well. In addition, our results indicate that pricing complexity is an important determinant of fees, and increased broker competition is associated with a higher probability of a loan being priced with transparency. Our results suggest that mortgage brokers increase competition and lower fees in the mortgage market.