Identifying and using critical success factors

This article focuses on defining and discussing the concept of critical success factors as input into the environment analysis, resource analysis, and strategy evaluation steps in the strategic planning/strategy development process. The reader is provided with eight possible sources of critical success factors including environmental analysis, analysis of industry structure, industry/business experts, analysis of competition, analysis of dominant firm in the industry, company assessment, temporal/intuitive factors and PIMS results. Examples of CSF's from various sources are provided and a scheme by which the reader can assess the relative importance of identified CSF's is presented.     

Consumer processing of hazard warning information

Using data obtained from a field experiment involving 957 consumers, this study investigates the linkage between hazard warnings and precautionary behavior, as well as the structure of the information about product usage and risks that consumers store in their memories. Through the use of a methodology based on an open-ended memory recall task, we measure how consumer recall of information on product labels is affected by the type and format of the information and infer the structure by which this information is stored in their memory. The methodology also allows us to explore the importance of limitations on consumers' cognitive abilities. In particular, we find that consumers substitute greater recall of risk information for recall of usage information, indicating a tradeoff among the different types of information conveyed on a product label. We also found that in the case of cluttered labels, as typified by many existing product labels, information overload results, which may make labeling ineffective in achieving its intended informational objective.     

Multi‐Echelon Inventory Management under Short‐Term Take‐or‐Pay Contracts

We extend the Clark–Scarf serial multi‐echelon inventory model to include procuring production inputs under short‐term take‐or‐pay contracts at one or more stages. In each period, each such stage has the option to order/process at two different cost rates; the cheaper rate applies to units up to the contract quantity selected in the previous period. We prove that in each period and at each such stage, there are three base‐stock levels that characterize an optimal policy, two for the inventory policy and one for the contract quantity selection policy. The optimal cost function is additively separable in its state variables, leading to conquering the curse of dimensionality and the opportunity to manage the supply chain using independently acting managers. We develop conditions under which myopic policies are optimal and illustrate the results using numerical examples. We establish and use a generic one‐period result, which generalizes an important such result in the literature. Extensions to cover variants of take‐or‐pay contracts are included. Limitations are discussed.     

Transformational Leadership Education and Agency Perspectives in Business School Pedagogy: A Marriage of Inconvenience?

We critique transformational leadership education in university business schools based on a literature review, a study of the websites of 21 leading business schools, and an analysis of two presentations to business school students at Massachusetts Institute of Technology and Stanford University by the former CEO of General Electric, Jack Welch. Our critique draws attention to the unresolved tension between two motivating ideas that underpin much teaching in business schools: collective interest ideas that permeate transformational leadership education; and self-interest ideas derived from agency theory. Transformational leadership tends to be depicted as a process by which leaders exert a 'top-down' influence over the activities of others, while simultaneously asserting that their organizations have a common purpose and pursue a collective interest. We highlight the risk that business schools are producing graduates who will attempt to appeal to common needs (guided by precepts of transformational leadership) but who will simultaneously enact contradictory performance management systems (guided by agency theory). We encourage business school educators in leadership to adopt approaches which are more critical, relational and reflexive. We suggest some general directions for an alternative leadership prospectus, based on followership, the promotion of critical upward communication within organizations, and the recognition of leadership as a contested, discursive and co-constructed phenomenon.