Publications

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March 2018 (Revised September 2023)
Case

X: The Foghorn Decision

By: Robert S. Huckman, Karim R. Lakhani and Kyle R. Myers

In February 2016, Kathy Hannun—a project leader at X, Alphabet Inc.'s so-called "moonshot factory"—had to prepare a recommendation for the senior leadership of X regarding the future of Foghorn, a project she was leading to develop a carbon-neutral process for... View Details

Keywords: Innovation; R＆D Project Management; Radical Innovation; Clean Technology; Innovation and Management; Technological Innovation; Energy; Research and Development; Projects; Management; Decision Choices and Conditions; Technology Industry; Energy Industry; Green Technology Industry; California

April 2000
Background Note

Market Failures

By: Bharat N. Anand, Tarun Khanna and Jan W. Rivkin

Examines the role of transaction costs in impeding the functioning of markets and shows how the concept of transaction costs sheds light on a broad range of issues in strategy. View Details

Keywords: Competitive Strategy; Competition; Corporate Strategy; Cost; Market Transactions; Industry Clusters; Failure; Internet

October 2022 (Revised February 2024)
Case

Masdar City: Aiming for Sustainable and Profitable Real Estate

By: Boris Vallee and Fares Khrais

Masdar City broke ground in 2008 and was conceived by the Abu Dhabi government to be an international beacon of innovation in sustainable energy and real estate. It was also to be a profitable investment for the government. At first glance, the two goals pulled in... View Details

22 Dec 2008
Research & Ideas

10 Reasons to Design a Better Corporate Culture

subjects such as the "fairness of my boss." The underlying theme in such conversations, though, is the strength and appropriateness of the organization's culture. Organizations with clearly codified cultures enjoy labor cost... View Details

Keywords: by James L. Heskett, W. Earl Sasser & Joe Wheeler

July 2003 (Revised October 2018)
Case

Starbucks: Delivering Customer Service

By: Youngme Moon and John Quelch

Starbucks, the dominant specialty-coffee brand in North America, must respond to recent market research indicating that the company is not meeting customer expectations in terms of service. To increase customer satisfaction, the company is debating a plan that would... View Details

Keywords: Customer Focus and Relationships; Customer Satisfaction; Profit; Recruitment; Marketing Strategy; Service Operations; Performance Improvement; Planning; Food and Beverage Industry

November 1985 (Revised November 1987)
Case

R&R

By: Howard H. Stevenson

Outlines alternative mechanisms for getting into business. Shows the means by which an experienced entrepreneur can gain control over the necessary resources in order to lower the fixed costs of business entry. Provides a mechanism for discussing the role of... View Details

Keywords: Cost Management; Entrepreneurship

21 May 2012
Research & Ideas

OSHA Inspections: Protecting Employees or Killing Jobs?

gain access to workers' compensation data. Because the data were collected at the company level, the researchers limited their analysis to firms with only one plant, where the effects of an inspection on injury rates and costs could be... View Details

Keywords: by Michael Blanding

August 1997
Background Note

Accounting for Manufacturing Companies

By: Srikant M. Datar

The accounting for a manufacturing company is examined, including the flow of costs from raw materials to work in process to finished goods and the distribution between an inventoriable or product cost and a noninventoriable or period cost. View Details

Keywords: Cost Accounting; Product; Cost; Distribution; Accrual Accounting; Accounting; Manufacturing Industry

November 1995
Technical Note

Analyzing Standard Costs: Technical Note

By: V.G. Narayanan

Explains variance analysis. Concepts of price variance and quantity variance are introduced to analyze prime cost variances. Spending variance and capacity variance are used to analyze overhead variance. Consistent with conducting variance analysis in an activity-based... View Details

Keywords: Cost Accounting; Cost; Analysis

March 2008 (Revised April 2008)
Case

Sony PlayStation 3: Game Over?

By: Elie Ofek

Outlines the challenges faced by Sony with the launch of its PlayStation 3. Information on the 2006 and 2007 holiday seasons and the success of rival consoles is outlined. In addition, the case allows examining the costs and revenues associated with a business model... View Details

Keywords: Business Model; Games, Gaming, and Gambling; Cost; Revenue; Product Launch; Sales; Competition; Hardware; Entertainment and Recreation Industry

August 2012
Case

Polar Sports, Inc.

By: W. Carl Kester and Wei Wang

Polar Sports, Inc. is a fashion skiwear manufacturing company in Littleton, Colorado. The company has a unique design for skiwear using a special synthetic material that improves insulation and durability. The ski apparel industry is highly competitive and the best way... View Details

Keywords: Production; Decision Choices and Conditions; Competitive Strategy; Corporate Finance; Manufacturing Industry; Apparel and Accessories Industry; Sports Industry; Colorado

November 1984 (Revised March 1999)
Case

Mayers Tap, Inc. (C)

Mayers Tap, Inc. has decided to redesign its cost system. In this case it uses three different cost center designs to determine how the new system should be designed. Students are asked to drop unprofitable products under the three scenarios and explain the effects on... View Details

Keywords: Cost Accounting; Management Systems

November 2004 (Revised September 2019)
Background Note

The U.S. Health Club Industry in 2004

By: John R. Wells, Gabriel Ellsworth and Benjamin Weinstock

In 2004, the $16.8 billion U.S. health club industry continued its strong record of growth. There were almost 27,000 health clubs in the United States, up from 6,700 two decades earlier, and these clubs claimed 41 million members, over 14% of the U.S. population.... View Details

Keywords: Health Clubs; Fitness; Gyms; Chain; Weight Loss; Obesity; Exercise; Personal Training; Bally Total Fitness; 24 Hour Fitness; YMCA; Gold's Gym; Curves; Franchise; Franchising; Subscription; Promotional Sales; Promotions; Fixed Costs; Body; Accrual Accounting; Revenue Recognition; Buildings and Facilities; Business Growth and Maturation; Business Model; For-Profit Firms; Trends; Customers; Demographics; Age; Income; Private Equity; Financing and Loans; Profit; Revenue; Geographic Scope; Multinational Firms and Management; Health; Nutrition; Business History; Employees; Retention; Human Capital; Working Conditions; Contracts; Business or Company Management; Goals and Objectives; Growth and Development Strategy; Markets; Demand and Consumers; Supply and Industry; Industry Growth; Industry Structures; Operations; Service Operations; Franchise Ownership; Private Ownership; Public Ownership; Problems and Challenges; Sales; Salesforce Management; Situation or Environment; Opportunities; Nonprofit Organizations; Welfare; Sports; Strategy; Business Strategy; Competition; Competitive Strategy; Consolidation; Corporate Strategy; Customization and Personalization; Expansion; Segmentation; Hardware; Health Industry; United States

September 1996 (Revised September 2004)
Case

Monterrey Manufacturing Company

By: William J. Bruns Jr.

A small manufacturing company plans and budgets sales and expenses to ensure that its strategy is feasible. It must trace costs of manufacturing through work-in-process to finished goods and cost of goods sold, and project cash flows and income. View Details

Keywords: Cost Accounting; Business Earnings; Cash Flow; Sales; Budgets and Budgeting; Manufacturing Industry

spring 1987
Article

Second-Sourcing and the Experience Curve: Price Competition in Defense Procurement

By: James J. Anton and Dennis A. Yao

We examine a dynamic model of price competition in defense procurement that incorporates the experience curve, asymmetric cost information, and the availability of a higher cost alternative system. We model acquisition as a two-stage process in which initial production... View Details

Keywords: Acquisition; Government and Politics; Price; Competition; Mathematical Methods

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October 1994
Case

Olympus Optical Company, Ltd. (B): Functional Group Management

Documents the emergence of the functional group management system at Olympus's camera manufacturing facility. This system increases the pressure on the work force to decrease costs and improve output by treating the facility's 10 autonomous groups as profit centers,... View Details

Keywords: Cost Management; Performance Improvement; Manufacturing Industry; Japan

February 23, 2022
Article

Can WEB3 Bring Back Competition to Digital Platforms?

By: Christian Catalini and Scott Duke Kominers

Like the early Internet, blockchain and Web3 applications promise a new wave of decentralization and competition—yet at the same time, it is unclear which of the dynamics that drove concentration in online platforms and services will remain in force under the Web3... View Details

Keywords: Web3; Blockchain; Interoperability; Internet and the Web; Technological Innovation; Competition; Digital Platforms

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October 1988
Case

Digital Communications, Inc.: Encoder Device Division

Explores the issues surrounding the determination of the product cost of a subassembly in a firm that has never had to determine subassembly costs. Asks students to change the cost system by adding allocation bases and developing a step-down allocation process. View Details

Keywords: Cost Accounting; Resource Allocation; Manufacturing Industry; Telecommunications Industry; Electronics Industry

April 1996 (Revised April 1996)
Case

Activity-Based Management at Stream International

By: Robert S. Kaplan and Norman Klein

Stream International's Crawfordsville, Indiana facilities undertake the design and implementation of an activity-based costing project. After analyzing the costs assigned to 161 work activities, Crawfordsville managers present five proposals for change based on ABM... View Details

Keywords: Organizational Change and Adaptation; Change Management; Activity Based Costing and Management; Indiana