MarketBusting: strategies for exceptional business growth

If company leaders were granted a single wish, it would surely be for a reliable way to create new growth businesses. Business practitioners'overwhelming interest in this subject prompted the authors to conduct a three-year study of organizational growth--specifically, to find out which growth strategies were most successful. They discovered, somewhat to their surprise, that even companies in mature industries found rich new sources of growth when they reconfigured their unit of business (what they bill customers for) or their key metrics (how they measure success). In this article, the authors outline these and other moves companies can make to redefine their profit drivers and realize low-risk growth. They offer plenty of real-world examples. For instance: CHANGING YOUR UNIT OF BUSINESS: Once a conventional printing house, Madden Communications not only prints promotional materials for customers but also manages the distribution and installation of those materials on-site. Its revenues grew from dollars 1o million in 1990 to dollars 133 million in 2004, in an industry that many had come to regard as hopelessly mature. IMPROVING YOUR KEY METRICS-PARTICULARLY PRODUCTIVITY: Lamons Gasket, with dollars 80 million in revenues, built a Web site that radically improved its customers' ability to find, order, and pay for goods. The firm's market share rose along with its customer retention rate. The authors also suggest ways to identify your unit of business and associated key metrics and recognize the obstacles to changing them; review the key customer segments you serve; assess the need for new capabilities and the potential for internal resistance to change; and communicate to internal and external constituencies the changes you wish to make in your unit of business or key metrics.     

Comparing Consumption–Based Asset–Pricing models

We make use of a recently developed method to estimate the intertemporal marginal rate of substitution consistent with the fluctuations of asset return data from the Toronto Stock Exchange. These estimates are then used to evaluate various parametric specifications for preferences often used in empirical studies of consumption and asset returns. In contrast to existing studies, we are able to perform a formal statistical comparison of these models. We consider six extensions of the usual power utility model, and we find that none can be said to be a demonstrable improvement on the standard model.
Comparaison de modèles de prix des actifs fondés sur la consommation. Les auteurs utilisent une méthodologie développée récemment pour calibrer le taux marginal de substitution inter–temporel compatible avec les fluctuations des rendements sur les actifs enregistrées au Toronto Stock Exchange. Ces estimations sont utilisées pour évaluer diverses spécifications paramétriques souvent utilisées dans les études empiriques de la consommation et des rendements sur les actifs. Contrairement à ce qui est présenté dans les études existantes, les auteurs font une comparaison statistique formelle de ces modèles. Ils considèrent six extensions du modèle d'utilité et trouvent qu'aucune ne constitue une amélioration significative du modèle standard.     

Area-based differences in injury risks in a small Swedish municipality – Geographic and social differences

The current study investigates the geographic and social differences in injury risks across living areas in a small semi-urban Swedish municipality. The study population consisted of all people living in the municipality during the years 1992–1996 (31,820, December 1996). Area comparisons were made based on data related to the municipality’s 15 census districts and grouped according to the geographic location and three different social characteristics (proportion of unemployed, of low educated, or of people born outside Sweden). Injury data was gathered for the period 1992–1996 from two data sources: Sweden’s National Hospital Discharge Register, and the local outpatient register. Three diagnosis groups were used: all injuries aggregated, traffic injuries and other unintentional injuries. Odds-ratios were calculated for males and females separately. There were no remarkable differences in injury risks between areas, whether compared on the basis of their geographic location or some of their socio-economic characteristics. These findings could be attributed to either a lack of sensitivity of the measures employed or the existence of a well-functioning safety promotion program in the municipality that impacts on injury risk distribution between areas. This, in turn, does not imply that members of underprivileged social groups are not in need of special support regardless of the area to which they belong.     

Evidence of liquidity constraints found in theme park ticket auctions

Data from Internet auctions of unused tickets to Walt Disney World are used to establish the presence and financial impact of liquidity constraints for consumers, even when those consumers are confronted with a very short time horizon and a substantial potential monetary saving. Bidding for tickets is found to be consistent with the microeconomic consumer theory of risk and liquidity. The presence of liquidity premiums and premiums paid for variety in entertainment are separately established. The authors wish to thank an anonymous referee for very helpful comments and would like to acknowledge Michael Toma, Andy Weinbach, and conference participants of the Academy of Economics and Finance.     

The Beveridge Curve and regional disparities in Canada

The Beveridge curve establishes an inverse relationship between the unemployment rate and the vacancy rate. It has been documented and discussed at length by Blanchard and Diamond (1989) for the United States. The unemployment–vacancy relationships of the Canadian economy and its regions are considered. This analysis reveals some important distinctions in the behaviour of the regional Baveridge curves and some interesting similarities. At the aggregate level, the observations are not strikingly different from those of Blanchard and Diamond for the US economy.     

Using Means-End Analysis to Test Integrated Marketing Communications Effects

This article describes a study testing key aspects of the Integrated Marketing Communications (IMC) concept, employing means-end analytical techniques. Although the hypothesized effects were not observed, the study is timely and ground-breaking because it contributes a new empirical approach to the IMC body of literature. It may also serve as a catalyst for additional research in the field.     

Crop management,labour organization,and marketing: three key issues for improving sustainability in organic vegetable farming

Most market-garden farms that have converted to organic farming (OF) in the last few decades in France are small and diversified. Larger farms usually specialize in a few vegetable species and frequently face technical and economic problems when they convert to organics. Diversifying production may be a means of increasing sustainability due to larger crop rotations and varied marketing outlets, but it has various implications on farm management, especially labour organization and marketing. In the present study, we examined how an acceptable degree of species diversification can act as a lever to develop organic vegetable production by combining sociologist and agronomist points of view. Multidisciplinary surveys of 30 market-garden farms varying in usable surface area and degrees of crop diversification were carried out. Consequences on crop management, labour organization and skills, and marketing implications were described, and farm sustainability was assessed. Specialized farms of the sample had a rather industrial organization of labour and marketing and benefited from economy of scale to produce vegetables. But in the long term, they may suffer from low agronomical sustainability because of narrow crop rotations and intensive crop management. Diversified farms were more sustainable according the criteria studied, but they suffered from the extremely complex management of cropping systems. These results are discussed on both the farm and territorial levels. Collective marketing initiatives and social networks might help reach an acceptable degree of species diversification at the farm level. Potential innovative organizations are identified, which could facilitate the transition to OF.     

Examining temporary disposition and acquisition in peer-to-peer renting

Abstract

This study examines the nature of temporary disposition and acquisition in the context of online peer-to-peer (P2P) renting. Although renting is becoming increasingly popular, little is known about the phenomenon as practised between peers. P2P renting is a form of non-ownership access that enables renters to temporarily access goods, but also provides those that rent the ability to temporarily dispose of their possessions. Theoretically driven thematic analysis identifies that P2P renting is characterised as a self-service exchange with extensive co-creation and a balanced market-mediated exchange involving short-term intermittent transactions driven by a desire for community, inspired by political consumerism. However, fear of negative reciprocity, the high-involvement nature of the transaction, limited access to products and the inflexible nature of P2P rental sites impede the practice. Having a better understanding of current attitudes towards P2P renting may help with the design of future online P2P systems.     

Urban Industrial Land Redevelopment and Contamination Risk

This study examines the role of contamination risk on urban industrial redevelopment in the City of Chicago. The theoretical framework is the myopic optimal redevelopment rule which states that the redevelopment of an urban parcel will occur when the parcel's value through conversion to a new use, net of construction costs, exceeds the value of the same parcel continuing in its current use. Contamination liability is modeled as a land demolition cost that is capitalized into bid value. Assuming that the magnitude of this land demolition cost is a function of the a priori probability of contamination, the effects of contamination risk on land value and on the probability of redevelopment are estimated.     

Failing by design

It's hardly news that business leaders work in increasingly uncertain environments, where failures are bound to be more common than successes. Yet if you ask executives how well, on a scale of one to 10, their organizations learn from failure, you'll often get a sheepish "Two-or maybe three" in response. Such organizations are missing a big opportunity: Failure may be inevitable but, if managed well, can be very useful. A certain amount of failure can help you keep your options open, find out what doesn't work, create the conditions to attract resources and attention, make room for new leaders, and develop intuition and skill. The key to reaping these benefits is to foster "intelligent failure" throughout your organization. McGrath describes several principles that can help you put intelligent failure to work. You should decide what success and failure would look like before you start a project. Document your initial assumptions, test and revise them as you go, and convert them into knowledge. Fail fast-the longer something takes, the less you'll learn-and fail cheaply, to contain your downside risk. Limit the number of uncertainties in new projects, and build a culture that tolerates, and sometimes even celebrates, failure. Finally, codify and share what you learn. These principles won't give you a means of avoiding all failures down the road-that's simply not realistic. They will help you use small losses to attain bigger wins over time.