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- August 1988 (Revised August 1989)
- Case
Poletown Dilemma, The
By: Thomas R. Piper
Senior management of General Motors must select a site for a new assembly plant to replace two plants located in Detroit. The economics strongly favor a site in an adjacent state. However, a relocation would have substantial, negative impact on the existing work force,... View Details
Keywords: Factories, Labs, and Plants; Business and Government Relations; Corporate Social Responsibility and Impact; Business Offices; Management Teams; Restructuring; Economics; Auto Industry; Michigan
Piper, Thomas R. "Poletown Dilemma, The." Harvard Business School Case 389-017, August 1988. (Revised August 1989.)
- 1988
- Chapter
Defined Benefit versus Defined Contribution Pension Plans: What are the Real Tradeoffs
By: Zvi Bodie, Alan J. Marcus and Robert C. Merton
Bodie, Zvi, Alan J. Marcus, and Robert C. Merton. "Defined Benefit versus Defined Contribution Pension Plans: What are the Real Tradeoffs." In Pensions in the U.S. Economy, edited by John B. Shoven and David A. Wise. Chicago: University of Chicago Press, 1988.
- July 1988 (Revised October 1992)
- Exercise
Sellars' Market
By: David E. Bell
A shop owner has limited shelf space for display of impulse purchase products near the cash register. He must select only nine to display. Exercise shows the relevance of opportunity cost or resource pricing. By setting an appropriate charge for the shelf space the... View Details
Keywords: Marketing
Bell, David E. "Sellars' Market." Harvard Business School Exercise 189-001, July 1988. (Revised October 1992.)
- Article
Beyond the Reach of the Invisible Hand: Impediments to Economic Activity, Market Failures, and Profitability
By: Dennis Yao
In this paper it is argued that failures of the competitive market are necessary conditions for supranormal profitability. Three fundamental causes of these market failures-production economies and sunk costs, transactions costs, and imperfect information-are developed... View Details
Keywords: Economics; Markets; Failure; Profit; Cost; Information; Market Transactions; Competition; Strategy; Production
Yao, Dennis. "Beyond the Reach of the Invisible Hand: Impediments to Economic Activity, Market Failures, and Profitability." Strategic Management Journal 9 (Summer 1988): 59–70. (Harvard users click here for full text.)
- July 1988
- Article
Relevant Costs, Congestion and Stochasticity in Production Environments
By: R. Banker, S. Datar and S. Kekre
Banker, R., S. Datar, and S. Kekre. "Relevant Costs, Congestion and Stochasticity in Production Environments." Journal of Accounting & Economics 10, no. 3 (July 1988): 171–197.
- May 1988 (Revised June 2023)
- Case
National Cranberry Cooperative, 1996
By: Roy D. Shapiro
Describes the continuous flow process used to process cranberries into juice and/or sauce. Requires student to analyze process flows to determine where the bottlenecks are and to decide how, and whether, to expand capacity. Original version written by J.G. Miller and... View Details
Keywords: Logistics; Performance Capacity; Performance Improvement; Supply Chain; Mathematical Methods; Cost vs Benefits; Production
Shapiro, Roy D. "National Cranberry Cooperative, 1996." Harvard Business School Case 688-122, May 1988. (Revised June 2023.)
- April 1988 (Revised September 1992)
- Case
Frito-Lay, Inc.: The Backhaul Decision
Prior to the Motor Carrier Act of 1980, companies with private trucking fleets were generally prohibited from selling transportation services to other companies. The deregulation of the trucking industry in 1980 allowed private carriers to offer for-hire transportation... View Details
Keywords: Cost Management; Revenue; Governing Rules, Regulations, and Reforms; Marketing Strategy; Distribution; Service Operations; Sales; Salesforce Management; Transportation; Food and Beverage Industry
Hammond, Janice H. "Frito-Lay, Inc.: The Backhaul Decision." Harvard Business School Case 688-104, April 1988. (Revised September 1992.)
- January 1988 (Revised May 1988)
- Case
General Motors' Asian Alliances
Describes all of General Motors' major alliances with Asian firms. These include Toyota, Fanuc, Isuzu, Daewoo, Suzuki, Nissan, and Hitachi. Students can discuss the rationale of each alliance, their risks, their management problems, and their likely evolution. Also... View Details
Keywords: Joint Ventures; Cost Management; Globalized Firms and Management; Problems and Challenges; Alliances; Risk and Uncertainty; Adoption; Corporate Strategy
Badaracco, Joseph L., Jr. "General Motors' Asian Alliances." Harvard Business School Case 388-094, January 1988. (Revised May 1988.)
- January–February 1988
- Article
One Cost System Isn't Enough
By: Robert S. Kaplan
Kaplan, Robert S. "One Cost System Isn't Enough." Harvard Business Review 66, no. 1 (January–February 1988): 61–66.
- 1987
- Chapter
How Cost Accounting Systematically Distorts Product Costs
By: Robert S. Kaplan and Robin Cooper
Kaplan, Robert S., and Robin Cooper. "How Cost Accounting Systematically Distorts Product Costs." Chap. 8 in Accounting and Management: Field Study Perspectives, edited by W. J. Bruns Jr. and R. S. Kaplan, 204–228. Boston: Harvard Business School Press, 1987.
- June 1987 (Revised May 1990)
- Case
John Deere Component Works (B)
By: Robert S. Kaplan
Having installed an activity-based system, the division is now exploring the insight provided by that system. In particular, it is studying the economics of lot-size process planning and product mix management. View Details
Keywords: Activity Based Costing and Management; Production; Business or Company Management; Planning; Cost Accounting; Cost Management; Product Marketing; Management Practices and Processes; Consumer Products Industry; Agriculture and Agribusiness Industry
Kaplan, Robert S. "John Deere Component Works (B)." Harvard Business School Case 187-108, June 1987. (Revised May 1990.)
- June 1987 (Revised August 1988)
- Case
American Bank
By: Robert S. Kaplan
American Bank is developing a new system to compute product costs. The deregulated, more competitive environment for commercial banks has created both problems and opportunities for banking operations. In order to price existing products and assess the desirability of... View Details
Keywords: System; Consolidation; Commercial Banking; SWOT Analysis; Fair Value Accounting; Cost Management; Price; Banking Industry; North and Central America; United States
Kaplan, Robert S. "American Bank." Harvard Business School Case 187-194, June 1987. (Revised August 1988.)
- May 1987 (Revised November 1998)
- Case
John Deere Component Works (A)
By: Robert S. Kaplan
The division has recognized the inadequacies of its existing, traditional cost system for estimating product costs. Describes the innovative activity-based system that was developed to more accurately trace overhead costs to individual products. Provides students with... View Details
Keywords: Activity Based Costing and Management; Cost Accounting; Cost Management; Cost vs Benefits; Production; Budgets and Budgeting; Innovation and Invention; Innovation and Management; Consumer Products Industry
Kaplan, Robert S. "John Deere Component Works (A)." Harvard Business School Case 187-107, May 1987. (Revised November 1998.)
- May 1987 (Revised October 1996)
- Case
Murray Ohio Manufacturing Co.
After a record year in 1983, Murray Ohio's earnings declined in 1984. The company was faced with competition from cheap imports and was experiencing declining margins. Students are asked to analyze the company's 1984 financial statements and predict whether there is... View Details
Keywords: Financial Statements; Financial Reporting; Business Divisions; Cost Management; Spending; Decision Making; Change Management; Problems and Challenges; Management Systems; Manufacturing Industry
Palepu, Krishna G. "Murray Ohio Manufacturing Co." Harvard Business School Case 187-178, May 1987. (Revised October 1996.)
- April 1987 (Revised October 1989)
- Case
Winchell Lighting, Inc. (A)
By: Robin Cooper and Robert S. Kaplan
Designed to teach students how to trace marketing costs to products. View Details
Cooper, Robin, and Robert S. Kaplan. "Winchell Lighting, Inc. (A)." Harvard Business School Case 187-074, April 1987. (Revised October 1989.)
- April 1987 (Revised April 1987)
- Case
Tiberg Co.
By: Michael Beer and Daniel J. Isenberg
Describes the efforts of a vice president of purchasing to coordinate and centralize purchasing procedures in a multinational company. He encounters a lack of active cooperation. A rewritten version of an earlier case by G. Lombard. View Details
Keywords: Cost Management; Multinational Firms and Management; Governance Controls; Managerial Roles; Organizational Change and Adaptation; Organizational Design; Power and Influence
Beer, Michael, and Daniel J. Isenberg. "Tiberg Co." Harvard Business School Case 487-079, April 1987. (Revised April 1987.)
- 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
Anton, James J., and Dennis A. Yao. "Second-Sourcing and the Experience Curve: Price Competition in Defense Procurement." RAND Journal of Economics 18, no. 1 (spring 1987): 57–76. (Harvard users click here for full text.)