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      Escalation Of CommitmentRemove Escalation Of Commitment →

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      • February 1997 (Revised June 1999)
      • Background Note

      Committed and Flexible Resources

      By: Robert S. Kaplan
      Stresses the difference between costs committed in advance of knowing actual demand (committed costs) and cost incurred proportional to demand. Committed costs appear fixed since their supply is independent of the amount actually used. Flexible resources are supplied... View Details
      Keywords: Cost
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      Kaplan, Robert S. "Committed and Flexible Resources." Harvard Business School Background Note 197-078, February 1997. (Revised June 1999.)
      • January 1997 (Revised October 2000)
      • Case

      Lynton V. Harris & Madison "Scare" Garden (A)

      By: Michael A. Wheeler and Guhan Subramanian
      A young entrepreneur, Lynton V. Harris, who successfully staged family-oriented shows in his native Australia and who had several entertainment ventures in the United States, is on the verge of signing an agreement with Madison Square Garden to jointly produce a new... View Details
      Keywords: Negotiation; Entertainment and Recreation Industry; New York (city, NY)
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      Wheeler, Michael A., and Guhan Subramanian. Lynton V. Harris & Madison "Scare" Garden (A). Harvard Business School Case 897-143, January 1997. (Revised October 2000.)
      • January 1997
      • Case

      World Bank (A1): Rural Development (Revisited)

      By: George C. Lodge
      Begins with a brief description of the World Bank and its commitment to rural development. Discusses the bank's Northeast rural development program in Brazil, outlining its failure, success, and structural design. The questions raised by the project are left for the... View Details
      Keywords: International Finance; Development Economics; Rural Scope; Policy; Problems and Challenges; Government Legislation
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      Lodge, George C. "World Bank (A1): Rural Development (Revisited)." Harvard Business School Case 797-090, January 1997.
      • May 1996 (Revised August 2001)
      • Case

      Timberland and Community Involvement

      By: James E. Austin and Jaan Elias
      The Timberland Co., a manufacturer and retailer of footwear, outdoor apparel, and accessories, committed itself to instituting and communicating a core set of values to its employees, stockholders, and consumers. The system of beliefs emphasized community service.... View Details
      Keywords: Ethics; Values and Beliefs; Business and Community Relations; Social Enterprise; Corporate Strategy; Apparel and Accessories Industry
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      Austin, James E., and Jaan Elias. "Timberland and Community Involvement." Harvard Business School Case 796-156, May 1996. (Revised August 2001.)
      • February 1996 (Revised November 1996)
      • Case

      Wainwright Industries (A): Beyond the Baldrige

      By: Rosabeth M. Kanter and Norman Klein
      Traces the growth of Wainwright, a small automotive supply company, focusing on its commitment to quality in 1981 and the evolution of its quality culture. Breakthrough programs that stress "trust and belief" in the workforce and commitment to customers result in... View Details
      Keywords: Quality; Customer Satisfaction; Customer Relationship Management; Ethics; Business or Company Management; Standards; Machinery and Machining; Organizational Change and Adaptation; Organizational Culture; Auto Industry; Missouri
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      Kanter, Rosabeth M., and Norman Klein. "Wainwright Industries (A): Beyond the Baldrige." Harvard Business School Case 396-219, February 1996. (Revised November 1996.)
      • April 1995 (Revised October 1995)
      • Case

      Unemployment in France: "Priority Number One"

      By: David A. Moss
      Explores the problem of French unemployment on the eve of the presidential elections of 1995. Traces the development of social and economic policies under President Mitterrand and surveys leading explanations for the nation's mounting unemployment crisis. One major... View Details
      Keywords: Job Cuts and Outsourcing; Employment; Economics; Government and Politics; Political Elections; Social Issues; Wages; France
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      Moss, David A. Unemployment in France: "Priority Number One". Harvard Business School Case 795-064, April 1995. (Revised October 1995.)
      • February 1995 (Revised November 1996)
      • Case

      MasterCard and World Championship Soccer

      By: John A. Quelch and Carin-Isabel Knoop
      The MasterCard vice president for global promotions and other MasterCard executives are appraising the results of MasterCard's worldwide sponsorship of the 1994 World Cup soccer championship. They must decide whether to commit to sponsor the 1998 championship to be... View Details
      Keywords: Credit Cards; Marketing Strategy; Multinational Firms and Management; Advertising Campaigns; Globalization; Sports; Financial Services Industry; Sports Industry; France; United States
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      Quelch, John A., and Carin-Isabel Knoop. "MasterCard and World Championship Soccer." Harvard Business School Case 595-040, February 1995. (Revised November 1996.)
      • October 1994 (Revised November 1994)
      • Case

      British Airways: Using Information Systems to Better Serve the Customer

      By: W. Earl Sasser and Norman Klein
      Explores the uses of scanning technology, interactive software, and powerful data bases to assist customer relations representatives in resolving customer complaints. Competitive alliances in international markets are noted, but the focus is on the evolving commitment... View Details
      Keywords: Debates; Customer Focus and Relationships; Globalized Markets and Industries; Service Delivery; Alliances; Information Technology; Aerospace Industry
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      Sasser, W. Earl, and Norman Klein. "British Airways: Using Information Systems to Better Serve the Customer." Harvard Business School Case 395-065, October 1994. (Revised November 1994.)
      • October 1994 (Revised March 1999)
      • Case

      Ritz-Carlton: Using Information Systems to Better Serve the Customer

      By: W. Earl Sasser, Thomas O. Jones and Norman Klein
      Explores the interface of an information system that keeps track of guests and their preferences, and the people systems that deliver multiple services at Ritz-Carlton hotels. The luxury hotel chain's unique service credo and commitment to quality principles are... View Details
      Keywords: Competency and Skills; Customer Satisfaction; Training; Recruitment; Service Delivery; Supply Chain Management; Luxury; Balance and Stability; Information Technology
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      Sasser, W. Earl, Thomas O. Jones, and Norman Klein. "Ritz-Carlton: Using Information Systems to Better Serve the Customer." Harvard Business School Case 395-064, October 1994. (Revised March 1999.)
      • spring 1994
      • Article

      Unilateral Commitments and the Importance of Process in Alliances

      By: R. Gulati, T. Khanna and N. Nohria
      Keywords: Alliances
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      Gulati, R., T. Khanna, and N. Nohria. "Unilateral Commitments and the Importance of Process in Alliances." MIT Sloan Management Review 35, no. 3 (spring 1994): 61–69.
      • March 1994 (Revised September 1995)
      • Case

      Enron Gas Services

      By: Peter Tufano
      The CEO of Enron Gas Services (EGS), a subsidiary of the largest U.S. integrated natural gas firm, considers the risks and opportunities of selling a variety of natural gas derivatives, both embedded in gas delivery contracts and as free-standing financial contracts.... View Details
      Keywords: Risk Management; Energy Sources; Financial Services Industry; Energy Industry
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      Tufano, Peter, and Sanjay Bhatnagar. "Enron Gas Services." Harvard Business School Case 294-076, March 1994. (Revised September 1995.)
      • spring 1994
      • Article

      Unilateral Commitments and the Importance of Process in Alliances

      By: Ranjay Gulati, Tarun Khanna and Nitin Nohria
      How the partners in an alliance view their joint venture can have much to do with its success or failure. Each partner fears that the other will get the larger payoff by acting opportunistically while it cooperates in good faith. The result is that both partners choose... View Details
      Keywords: Management Style; Partners and Partnerships; Joint Ventures; Management Practices and Processes; Alliances; Trust; Game Theory
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      Gulati, Ranjay, Tarun Khanna, and Nitin Nohria. "Unilateral Commitments and the Importance of Process in Alliances." MIT Sloan Management Review 35, no. 3 (spring 1994): 61–69.
      • October 1993 (Revised July 1994)
      • Case

      A Brush with AIDS (A)

      By: Joseph L. Badaracco Jr. and Jerry Useem
      A product manager at a health products company is responsible for marketing sharps containers, which hospitals use to store used needles in order to protect medical workers from being pricked with AIDS-contaminated needles. After hospitals report repeated instances of... View Details
      Keywords: Health; Cost vs Benefits; Motivation and Incentives; Safety; Values and Beliefs; Profit; Goals and Objectives; Compensation and Benefits; Medical Devices and Supplies Industry
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      Badaracco, Joseph L., Jr., and Jerry Useem. "A Brush with AIDS (A)." Harvard Business School Case 394-058, October 1993. (Revised July 1994.)
      • April 1993 (Revised October 1995)
      • Case

      American Barrick Resources Corporation: Managing Gold Price Risk

      By: Peter Tufano
      Managing the risk of changing prices of gold is central to the business strategy of American Barrick Resources Corp., one of North America's largest and most successful gold-mining firms. The case contrasts this firm's hedging policies with those of its rivals that do... View Details
      Keywords: Risk Management; Business Strategy; Mining; Mining Industry; United States
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      Tufano, Peter. "American Barrick Resources Corporation: Managing Gold Price Risk." Harvard Business School Case 293-128, April 1993. (Revised October 1995.)
      • January 1993 (Revised June 1993)
      • Background Note

      Challenge of Commitment,The

      By: Michael Beer and Michael J. Gibbs
      Defines commitment, describes the psychological and organizational factors that underly it, and provides a comprehensive discussion of the policies and practices managers can employ to enhance commitment. Identifies control and commitment as two critical strategies... View Details
      Keywords: Ethics; Governance Controls; Policy; Management Practices and Processes; Managerial Roles; Strategy
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      Beer, Michael, and Michael J. Gibbs. "Challenge of Commitment,The." Harvard Business School Background Note 493-046, January 1993. (Revised June 1993.)
      • October 1992 (Revised September 1993)
      • Case

      L.L. Bean, Inc.: Item Forecasting and Inventory Management

      By: Arthur Schleifer Jr.
      L.L. Bean must make stocking decisions on thousands of items sold through its catalogs. In many cases, orders must be placed with vendors twelve or more weeks before a catalog lands on a customer's doorstep, and commitments cannot be changed thereafter. As a result,... View Details
      Keywords: Forecasting and Prediction; Risk Management; Cost Management; Risk and Uncertainty; Demand and Consumers; Order Taking and Fulfillment; Retail Industry; United States
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      Schleifer, Arthur, Jr. "L.L. Bean, Inc.: Item Forecasting and Inventory Management." Harvard Business School Case 893-003, October 1992. (Revised September 1993.)
      • Article

      Commitments with Third Parties

      By: Jerry R. Green
      Observable irrevocable contracts between a principal and an agent have been suggested as a way in which the principal can enhance his payoff when playing a game against, or bargaining with, an opponent. It is shown that such beneficial agency relationships depend on... View Details
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      Green, Jerry R. "Commitments with Third Parties." Annales d'économie et de statistique, nos. 25-26 (January–June 1992): 81–95.
      • June 1992
      • Article

      Nonrational Escalation of Commitment in Negotiation

      By: M. H. Bazerman and M. A. Neale
      Keywords: Negotiation
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      Bazerman, M. H., and M. A. Neale. "Nonrational Escalation of Commitment in Negotiation." European Management Journal 10, no. 2 (June 1992): 163–68.
      • May 1992 (Revised January 2000)
      • Supplement

      ABB: Accountability Times Two (B)

      By: Robert L. Simons
      Describes internal allocation conflicts in a complex global company structured as a matrix organization. ABB Switzerland has secured and will build an important power station project; however, internal market allocation policies dictate that this work be handled by ABB... View Details
      Keywords: Multinational Firms and Management; Conflict Management; Complexity; Sweden; Switzerland
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      Simons, Robert L. "ABB: Accountability Times Two (B)." Harvard Business School Supplement 192-142, May 1992. (Revised January 2000.)
      • May 1992 (Revised May 1993)
      • Supplement

      Jan Carlzon: CEO at SAS (B)

      By: Christopher A. Bartlett
      Summarizes Carlzon's new focus externally on building alliances and acquiring travel service companies. Describes the financial problems resulting from the recession and the Gulf War crisis. Designed as an in-class handout to highlight the long-term management... View Details
      Keywords: Acquisition; Financial Crisis; Problems and Challenges; Planning; Leadership; Alliances; Strategy; Air Transportation Industry
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      Bartlett, Christopher A. "Jan Carlzon: CEO at SAS (B)." Harvard Business School Supplement 392-150, May 1992. (Revised May 1993.)
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