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Page 1

Case Map for
Certo: Modern Management: Concepts and Skills

(Prentice Hall)

This map was prepared by an experienced editor at HBS Publishing, not by a teaching professor. Faculty
at Harvard Business School were not involved in analyzing the textbook or selecting the cases and

Every case map provides only a partial list of relevant items from HBS Publishing. To explore
alternatives, or for more information on the cases listed below, visit:


Chapter 1: Introducing
Modern Management:
Concepts and Skills


Chapter 2: Managing: History
and Current Thinking


Chapter 3: Corporate Social
Responsibility, Ethics, and

Corruption in International
Business (A) : Robert E.
Kennedy, Rafael Di Tella
Product #: 701128
Length: 10p
B case#: 701129

Explores various aspects of corruption in international business. The
first section provides a broad discussion of the ethical, business, and
legal aspects of corruption. The second section provides a series of
"caselets" that are designed to promote discussion of how students
would act in particular situations, as well as the potential costs and
benefits of these actions.
Learning Objective: To introduce students to issues surrounding
corruption in international business

Sustainable Development and
Socially Responsible Investing:
ABB in 2000: Forest Reinhardt
Product #: 701082
Length: 37p

Several investment firms and mutual funds position themselves as
providers or facilitators of opportunities for socially responsible
investment. This case addresses the impact of these firms on publicly
traded companies. Focuses on managers at ABB, a large multinational
based in Switzerland that has tried to be a leader in integrating
principles of sustainable development into its business strategies.
ABB's managers now need to decide what sorts of relationships they
would like to have with the firms in the socially responsible investment
community, and the extent to which they ought to take the preferences
of these firms into account in tailoring their business strategies.
Learning Objective: To understand the channels through which
environmentally and socially "proactive" behavior might be rewarded in
the capital markets and assess the likelihood that these rewards will
actually materialize. Also, to understand the possible value
propositions of firms that offer services relating to socially responsible����������

Page 2


Tim Hertach at GL Consulting
(A) : Ashish Nanda, Thomas J.
Delong, Scot Landry
Product #: 800153
Length: 12p
Teaching Note: 801029

Ten years into his career after graduating from business school, Tim
Hertach discovers billing irregularities at his consulting firm. He must
decide whether (and how) to challenge senior management or to stay
quiet and protect his career.
Learning Objective: 1) To explore how to resolve an ethical
dilemma; 2) to study the flexibility and initiative of professional service
firms' billing practices.

Becton Dickinson: Ethics and
Business Practices (A): Lynn
Sharp Paine
Product #: 399055
Length: 27p

Becton Dickinson's Global One-Company Operations Group must
decide on the company's global policy on gifts, gratuities, and
business entertainment. A key issue is whether the policy should be
established centrally and made uniform worldwide or whether it
should be decided locally, depending on local circumstances and
practices. The case contains numerous examples of troubling
situations drawn from different regions of the world, as well as
background information on growing anticorruption efforts worldwide.
Learning Objective: To help students understand the ethical, legal,
organizational, and strategic issues involved in establishing a
worldwide corporate policy on gifts.

What's a Business For?:
Charles Handy
Product #: R0212C
Length: 6p

In the wake of the recent corporate scandals, it's time to reconsider
the assumptions underlying American-style stock-market capitalism.
That heady doctrine--in which the market is king, success is
measured in terms of shareholder value, and profits are an end in
themselves--enraptured America for a generation, spread to Britain
during the 1980s, and recently began to gain acceptance in
Continental Europe. But now, many wonder whether the American
model is corrupt. The American scandals are not just a matter of
dubious personal ethics or of rogue companies fudging the odd
billion. And the cure for the problems will not come solely from
tougher regulations. We must also ask more fundamental questions:
Whom and what is a business for? And are traditional ownership and
governance structures suited to the knowledge economy? According
to corporate law, a company's financiers are its owners, and
employees are treated as property and recorded as costs. But
whereas that might have been true in the early days of industry, it
does not reflect today's reality. Now a company's assets are
increasingly found in the employees who contribute their time and
talents rather than in the stockholders who temporarily contribute
their money. The language and measures of business must be
reversed. In a knowledge economy, a good business is a community
with a purpose, not a piece of property.
Learning Objective: To rediscover a higher purpose for business:
using profits to improve quality of life for ever more people.

Chapter 4: Management and

Millennium Media, Inc. and
John Voorenberg: David A.
Product #: 400032

Millenium Media's CEO reviews the company diversity report and
considers the challenges of maintaining a diverse workforce in light of
the news that three individuals, two of whom are people of color, are
leaving for opportunities with a competitor.�������������

Page 13

entrepreneur engineers a leveraged buyout; 4) the revitalization of
"rust-belt" facilities; and 5) the role of worker empowerment in

Cambridge Consulting Group:
Bob Anderson: Jay W. Lorsch,
John J. Gabarro
Product #: 496023
Length: 5p

Describes the situation facing the head of a rapidly growing industry-
focused group within a consulting company. Highlights the dilemmas
of being a "producing manager" (i.e., a professional who has both
individual production as well as management responsibilities). Issues
raised include: delegation, developing subordinates, developing an
agenda, and building an organization.
Learning Objective: Demonstrates dilemmas of the producing
manager's role.

Balancing Corporate Power: A
New Federalist Paper: Charles
Product #: 92604
Length: 9p

Given that organizations are seen more and more as minisocieties, the
prospect of applying political principles to management makes a great
deal of sense. Federalism is particularly appropriate because it offers
a well-recognized system for dealing with paradoxes of power and
control: the need to make things big by keeping them small; to
encourage autonomy but within bounds; and to combine variety and
shared purpose. Federalism responds to these paradoxes by
balancing power among those in the center of the organization, those
in the centers of expertise, and those in the center of the action--the
operating businesses. Federalism avoids the risks of autocracy and
the overcontrol of a central bureaucracy. It ensures a measure of
democracy and creates a "dispersed center" that is more a network
than a place. McKinsey Award Winner.
Subjects Covered: Business policy; Corporate governance;
Decentralization; Leadership; Organizational structure; Subsidiaries

Chapter 13: Managing Human

Southwest Airlines: Using
Human Resources for
Competitive Advantage (A):
Charles A. O'Reilly, Jeffrey
Product #: HR1A
Length: 24p
B case#: HR1B
Teaching Note: HR1T

In 1994 both United Airlines and Continental Airlines launched low-
cost airlines-within-an-airline to compete with Southwest Airlines. From
1991 until 1993 Southwest had increased its market share of the
critical West Coast market from 26% to 45%. This case considers how
Southwest had developed a sustainable competitive advantage and
emphasizes the role of human resources as a lever for the successful
implementation of strategy. Asks whether competitors can successfully
imitate the Southwest approach.
Subjects Covered: Competitive advantage; Corporate strategy;
Human resource management; Implementing strategy; Organizational

Human Resources at Hewlett-
Packard (A): Michael Beer,
Gregory C. Rogers
Product #: 495051
Length: 27p
B case#: 495052
Teaching Note: 497022

Provides an overview of the human resource policies and practices
applied by Hewlett-Packard (HP). Discusses HP's reactions as an
organization to changes in its business environment. As such, it is an
opportunity to analyze HP's practices, and how they have been
affected through the years in all four policy areas: stakeholder
influence, flows, rewards, and work systems.
Subjects Covered: Computers; Human resource management;
Organizational behavior; Organizational change; Organizational
culture; Organizational development; Organizational management;
Strategic planning

The SAS Institute: A Different The SAS Institute is a large, growing software company�������������������

Page 14

Approach to Incentives and
People Management Practices
in the Software Industry: Jeffrey
Product #: HR6
Length: 17p

headquartered in the Research Triangle in North Carolina. Founded
more than 25 years ago, it has evolved a unique approach, given its
industry, to developing and retaining talent including using no stock
options or phantom stock and not paying its salespeople on
commission. The CEO and Vice President of Human Resources must
decide how well their current management practices will continue to
serve them as the company gains greater visibility and faces an
increasingly competitive labor market.
Subjects Covered: Applications; Compensation; Human resource
management; Incentives; Management philosophy; Organizational
behavior; Organizational culture

Wolfgang Keller at Konigsbrau-
Hellas A.E. (A): John J. Gabarro
Product #: 498045
Length: 18p
Teaching Note: 400069

Raises issues concerning performance evaluation, performance
appraisal, managing ineffective performance, and conflicts in
management style.
Subjects Covered: Human resource management; Leadership;
Management styles; Performance appraisals; Superior & subordinate

The Firmwide 360-degree
Performance Evaluation
Process at Morgan Stanley : M.
Diane Burton
Product #: 498053
Length: 16p
Teaching Note: 400078

Describes Morgan Stanley's firmwide, 360-degree performance
evaluation process. Evaluation forms are included as exhibits.
Learning Objective: To introduce students to a 360-degree
performance evaluation process.

How to Lose Your Star
Performer Without Losing
Customers, Too: Neeli
Bendapudi, Robert P. Leone
Product #: R0110G
Length: 9p

It's bad enough to lose a trusted employee who works well within your
organization, but when you lose a star performer who has built up
strong customer relationships, something else is at stake: The star's
customers may also walk out the door. In a two-year study of more
than 200 people from 57 companies, Neeli Bendapudi and Robert
Leone found that most strategies to keep customers when stars leave
are largely ineffective because they grow out of a company's
perspective, not a customer's. The authors asked customers how they
felt and discovered three main concerns. First, customers can become
attached to a particular key contact employee, and if that person
leaves, they wonder whether service will suffer. You can forge a
broader relationship by ensuring that customers interact with many
employees, using techniques like deploying teams, rotating staff, and
offering one-stop shopping. Second, customers fear that a
replacement won't be as good as the employee who left. You can
combat this by stressing the quality of all your employees--not just
superstars. Publicize your hiring practices, training, and employees'
achievements. Third, customers want information about the
changeover and how you will manage the transition. Communicate the
identity of a replacement in advance of a departure, and have the
outgoing employee introduce the new person. Addressing all areas of
customer concern in concert tells customers that you value their
business and that you deserve to keep it. In the article, the authors
also include a scorecard to rate your company on how well you are
protecting customer relationships when employee turnover occurs.
Learning Objective: To understand three concerns customers have
when their preferred contact at a company leaves and to learn how to
address those concerns so customers stay loyal.����������������

Page 25

product or service. It did not have to be this way--and it does not have
to be in the future. When it comes to reinforcing a distinctive strategy,
Michael Porter argues, the Internet provides a better technological
platform than previous generations of IT. Gaining competitive
advantage does not require a radically new approach to business; it
requires building on the proven principles of effective strategy. Porter
argues that, contrary to recent thought, the Internet is not disruptive to
most existing industries and established companies. It rarely nullifies
important sources of competitive advantage in an industry; it often
makes them even more valuable. And as all companies embrace
Internet technology, the Internet itself will be neutralized as a source of
advantage. Robust competitive advantages will arise instead from
traditional strengths such as unique products, proprietary content, and
distinctive physical activities. Internet technology may be able to fortify
those advantages, but it is unlikely to supplant them.
Learning Objective: To discover how integrating Internet initiatives
into a company's existing strategy and operations creates unique
value that is difficult for rivals to copy.

Chapter 22: Production
Management and Control

Eli Lilly and Co.: The Flexible
Facility Decision--1993: Gary P.
Pisano, Sharon Rossi
Product #: 694074
Length: 19p
Teaching Note: 696041

In 1993, Eli Lilly is preparing to build manufacturing capacity for three
new pharmaceutical products that it expects to launch in 1996.
Management wrestles with a decision of whether to add specialized
manufacturing capacity or flexible capacity. This question touches off a
broad debate within the company about which strategy to follow for
future facilities decisions. This case presents two alternatives (flexible
and specialized plants) and describes the benefits and costs
associated with each.
Learning Objective: Requires students to analyze the tradeoffs
between the alternatives and consider if and how each would help Lilly
accomplish its strategic goals. Students should consider the net
present value of the alternative investments, as well as explore the
value of flexibility in manufacturing and capital investment decisions.

Mattson Foods, Inc.: The
Bardolini Division (Revised):
Steven C. Wheelwright
Product #: 695058
Length: 14p

The Bardolini Division of Mattson Foods, with plants in the northeast
and midwest, wants to open up the western market for its pizza.
Management must decide whether to build a new plant on the West
Coast, and what type of technology to put in the plant if they decide to
build it. The case addresses the issue of building a plant for marketing
purposes and raises a number of logistical issues, including
transportation and warehouse economics. A rewritten version of an
earlier case.
Subjects Covered: Capital budgeting; Expansion; Facilities planning;
Location of industry; Planning

GE: We Bring Good Things to
Life (A): James L. Heskett
Product #: 899162
Length: 23p
(B) case#: 899163
Teaching Note: 899222

Jack Welch and the Corporate Executive Council of GE are faced with
a decision about whether and how to implement a six sigma quality
improvement effort in the context of many other initiatives already
undertaken at GE in recent years.
Learning Objective: To illustrate the complexity of managing change
and the momentum that related and integrated initiatives can provide.

Daewoo Shipbuilding and Daewoo Shipbuilding and Heavy Machinery rescued its plant from the������������

Page 26

Heavy Machinery: David M.
Upton, Bowon Kim
Product #: 695001
Length: 18p
Teaching Note: 696053

labor riots of 1987 to make it, by 1994, to be the fastest improving
shipyard in the world. With its competition in Korea making huge
investments in additional capacity in anticipation of the end of the
recession, Daewoo instead has to decide if its strategy of continuous
investment can provide the needed capacity.
Learning Objective: Addresses manufacturing improvement
strategies and plant management. In addition, it looks at the
interaction between "step-change" improvement and continuous

EG&G Rotron Division: David
M. Upton, Andrew Matheson
Product #: 695037
Length: 17p
Teaching Note: 697100

Rotron has recently entered the commercial motor market, after many
years of servicing government military contracts. Faced with fierce
commercial competition, Rotron has attacked its costs, and reduced its
delivery times and its plants. A new crisis, however, is causing it to
rethink its just-in-time production system and the plant manager must
decide whether to re-introduce inventory for key production.
Learning Objective: Addresses issues related to just-in-time
production and strategic flexibility.

Johnson Controls, Automotive
Systems Group: The
Georgetown, Kentucky Plant:
Kazuhiro Mishina
Product #: 693086
Length: 23p
Teaching Note: 693102

Prior to the 1980s, auto makers purchased individual seat components
and built the seats alongside their auto assembly lines. This case
describes how Johnson Controls, Automotive Systems Group
blossomed when auto makers turned to outsourcing the complete seat
set. Closely examines one plant, in Georgetown, Kentucky, that
switched from just-in-time (JIT) delivery of seat sets to JIT assembly to
serve a nearby Toyota Camry assembly operation. Exposes the
challenge of dealing with growing seat variation and an opportunity of
doubling the plant floor space at a separate site. The specific case
question is how the plant should use this new space.
Learning Objective: Students who have been only exposed to the
concept of JIT production will grasp not only how JIT is actually
practiced but what it really entails.

The Fallacy of the Overhead
Quick Fix: Mark F. Blaxill,
Thomas M. Hout
Product #: 91403
Length: 8p

Many large manufacturing companies are finding themselves at a cost
disadvantage in markets they have dominated for years. This is
because of excessive overhead structures and the emergence of the
"robust" competitor, comparable in size and product scope but able to
produce at a lower unit overhead cost. High-overhead companies
should not cut overhead by outsourcing or downsizing. If they expect
to retain their size and also become more cost competitive, they must
rethink their manufacturing systems.
Subjects Covered: Competition; Cost control; Manufacturing strategy;
Production controls; Production processes���������������

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