Production restructuring in the textiles and clothing industries

This article analyses the processes of restructuring in the textiles and clothing industries in a locality. Particular attention here is focused on new technology, labour flexibility, sub-contracting patterns and skill factors. The extent to which the process of restructuring involves a conscious and deliberate move to new patterns of work organization is considered.     

EFFECTS OF SMALL BUSINESS ACCOUNTING BASES AND ACCOUNTANT SERVICE LEVELS ON LOAN OFFICER DECISIONS

This study examines effects of four combinations of accounting bases and service levels — GAAP and income tax bases, and audit and review service levels — on loan officers' decisions, both separately and in interaction. It examines effects on loan decisions and perceptions of interest rates, default risk, confidence, and usefulness. The interaction of accounting basis and service level significantly affects perceived confidence but does not affect other decisions. Accounting basis and service level separately affect interest rates, default risk, and report usefulness, but do not affect the loan decision.     

Does brand name imprinting in memory increase brand information retention?

This article introduces and explores the concept of brand name imprinting. Brand name imprinting is the process of creating and strengthening the brand name node in the brand memory network through brand name exposure. Brand name imprinting at a time prior to the presentation of specific brand information is posited to improve the retention of that information by strengthening the association between the brand name and brand information. The effect is proposed to be automatic and independent of other known means to strengthen memory associations (e.g., level of attention, cognitive elaboration, stimuli vividness, and stimuli distinctiveness). This research also proposes that brand names with neutral meaning better facilitate the imprinting effect, because they do not carry perceptual baggage that can interfere with the creation of new brand name–information associations. An experiment involving brand name imprinting and the learning of brand information supports these assertions. Implications for communication strategy and brand name selection are discussed. © 2003 Wiley Periodicals, Inc.     

In search of a residual dividend policy

We survey 309 sample firms exhibiting behavior consistent with a residual dividend policy and their matched counterparts to learn how they set their dividend policies. The findings reveal that the sample firms are more likely than their counterparts to maintain a long-term dividend payout ratio, use long-run earnings forecasts in setting the dividend, and be unconcerned about the cost of raising external funds. Yet, firms behaving as though they follow a residual dividend policy generally do not profess to follow the policy. At best, the sample firms follow a “modified” residual policy in which they carefully manage their payout ratio and dividend trend. Although it may not be an explicit goal of such a dividend policy, consistently low free cash flow typically results.     

Managing complex programs: a review of major research findings

Managing large-scale research and development projects is without question a difficult task. Success is often dependent on the ability of the project manager to successfully cope with a myriad of unpredictable situations. To assist project managers, the authors review several of the most significant recent research studies to identify potentially useful insights for those charged with the administration of complex research and development projects. Specifically, five areas of research are examined, namely, (1) project manager leadership styles; (2) conflict management; (3) decision-making styles; (4) organizational design considerations and project authority; and (5) the relationships of the project team with the parent, client, and other external organizations.     

LESSONS FROM A MIDDLE MARKET LBO: THE CASE OF O.M. SCOTT

In 1986 The O.M. Scott & Sons Company, the largest producer of lawn care products in the U.S., was sold by the ITT Corporation in a divisional leveraged buyout. The company was founded in Marysville, Ohio in 1870 by Orlando McLean Scott to sell farm crop seed. In 1900, the company began to sell weedfree lawn seed through the mail. In the 1920s, the company introduced the first home lawn fertilizer, the first lawn spreader, and the first patented bluegrass seed. Today, Scott is the acknowledged leader in the “do-it-yourself” lawn care market, with sales of over $300 million and over 1500 employees. Scott remained closely held until 1971, when it was purchased by ITT. The company then became a part of the consumer products division of the huge conglomerate, and operated as a wholly-owned subsidiary for 14 years. In 1984, prompted by a decline in financial performance and rumors of takeover and liquidation, ITT began a series of divestitures. Over the next two years, total divestitures exceeded $2 billion and, after years of substandard performance, ITT's stock price significantly outperformed the market. On November 26, 1986, in the midst of this divestiture activity, ITT announced that the managers of Scott, along with Clayton & Dubilier (C & D), a private firm specializing in leveraged buyouts, had agreed to purchase the stock of Scott and another ITT subsidiary, the W. Atlee Burpee Company. The deal closed on December 30. Clayton & Dubilier raised roughly $211 million to finance the purchase of the two companies. Of that $211 million, almost $191 milion, or 91% of the total, was debt: bank loans, subordinated notes, and subordinated debentures. The $20 million of new equity was distributed as follows: roughly 62% of the shares were held by a C & D partnership, 21% by Scott's new subordinated debtholders, and 17.5% by Scott management and employees. After this radical change in financial structure and concentration of equity ownership, Scott's operating performance improved dramatically. Between the end of December 1986 and the end of September 1988, sales were up 25% and earnings before interest and taxes (EBIT) increased by 56%. As shown in Table 1, this increase in operating earnings was not achieved by cutting back on marketing and distribution or R & D. In fact, spending on marketing and distribution increased by 21% and R & D spending went up by 7%. Capital spending also increased by 23%.     

Speculations about geopolitics in the late 21st century

Speculations are made about the global power balance in the next century. The time frame is 50–100 years and the driving forces are economic, technological, and natural resource availability. It is believed that three dominant coalitions will emerge: a Western hemisphere maritime grouping led by the US and including the UK; a European grouping dominated by France and Germany; and an East and South Asia grouping led by Japan and including India. The underlying motivation for these alignments is the postulated failure of the World Trade Organization to achieve long-term global free trade. A short-term policy recommendation to upgrade the buying power of Western hemisphere consumer populations is developed from the analysis.     

Managed care, consolidation among health care providers, and health care: evidence from mammography

We discuss the effects of managed care on the structure of the health care delivery system, focusing on managed-care-induced consolidation among health care providers. We empirically investigate the relationship between HMO market share and mammography providers. We find evidence of consolidation: increases in HMO activity are associated with reductions in the number of mammography providers and with increases in the number of services produced by remaining providers. We also find that increases in HMO market share are associated with reductions in costs for mammography and with increases in waiting times for appointments, but not with worse health outcomes.     

The timing of final charitable bequest decisions

• Understanding the timing of final charitable bequest decisions permits nonprofits to co‐ordinate their marketing efforts to correspond with donor decision‐making. Using probate data from Australia and longitudinal survey data from the USA, this paper seeks to identify the timing of decisions that resulted in realized charitable bequests. We find evidence that charitable transfers result mostly from decisions that occur during the last 5 years of life and at the oldest ages. Charitable plans made earlier in life are often discarded.

Copyright © 2015 John Wiley & Sons, Ltd.     

Kings and Vikings: on the dynamics of competitive agglomeration

This paper proposes a theory of competitive agglomeration—a new enquiry into the origins of hierarchical structures and governments. As a motivating example we analyze the Viking age—the roughly 300 year period beginning in 800 AD—from the perspective of the economics of conflict. The Viking age is interesting because throughout the time period, the scale of conflict increased—small scale raiding behaviour eventually evolved into large scale clashes between armies. With this observation in mind, we present a theoretical model describing the incentives both the defending population and the invading population had to agglomerate into larger groups to better defend against attacks, and engage in attacks, respectively. We tentatively postulate that competitive agglomeration during the Viking era was a key impetus to state formation in Europe.