Showing papers on "Business model published in 1988"

A Time Series Analysis of Representative Agent Models of Consumption andLeisure Choice Under Uncertainty

Abstract: This paper investigates empirically a model of aggregate consumption and leisure decisions in which utility from goods and leisure is nontime-separable. The nonseparability of preferences accommodates intertemporal substitution or complementarity of leisure and thereby affects the comovements in aggregate compensation and hours worked. These cross-relations are examined empirically using postwar monthly U. S. data on quantities, real wages, and the real return on the one-month Treasury bill. The estimated values of the parameters governing preferences differ significantly from the values assumed in several studies of real business models. Several possible explanations of these discrepancies are discussed.

Toward a System for Classifying Business Strategies

Abstract: Porter's (1980) and Abell's (1980) attempts to classify business strategies have several fundamental limitations After discussing the objectives and attributes of “scientific” classification systems, this article presents a new classification scheme, built on the work of Porter and Abell, as a first step toward developing an “optimal” business strategy classification system.

Entry of the Next Generation: Strategic Challenge for Family Business

Abstract: ENTRY OF THE NEXT GENERATION: STRATEGIC CHALLENGE FOR FAMILY BUSINESS Planning for the integration of the younger generation into the family firm is an issue of strategic importance, although offering challenges and finding a place for younger family members, or adjusting the organization to the new generation's inputs and demands are issues not usually included as goals for sound business planning.(1) In fact, business theorists generally point out the drawbacks of constraining business decisions by any criteria other than profit. While arguments can be made both for and against nepotism,(2) Harry Levinson, who has written thoughtfully about family businesses, notes: It is obvious common sense that when managerial decisions are influenced by feelings about and responsibilities toward relatives in the business, when nepotism exerts a negative influence, and when a company is run (1)D. M. Ambrose, "Transfer of the Family-Owned Business," Journal of Small Business Management, (January 1983), pp. 49-56. (2)D. W. Erwing, "Is Nepotism So Bad?" Harvard Business Review, (January/February, 1965), pp. 22-40 and 156-160. more to honor a family tradition than for its own needs and purposes, there is likely to be trouble.(3) (3)H. Levison, "Conflicts That Plague Family Business," Harvard Business Review (March/April, 1971), pp.90-98. For owner-manager firms, successful integration of offspring into the firm is almost always an issue. As one family business owner said: I started this firm to gain freedom and security not available elsewhere. The success I have had is something I would like to pass on to my children. I hope they come into the firm, but they must have the patience to learn the business before they take over. Patience is a two-way street. To succeed in transferring the business to their offspring, family business CEOs must be ready to adjust the organization to the skills, perspectives, and values of the next generation as part of the implementation of strategy. The successful integration of new family members is a goal for many family firms as important as profit targets, business niches, and other determinants of the firm's business policy. Incorporating new family members into the firm, however, is complicated by the blurring of the boundaries between the family and the family business.(4) Strategy for the owner-managed firm requires that economic success be achieved in a context that includes presently and prospectively employed family members. Owner/managers have often changed their organization's structure to reflect the needs of children entering the business. For example, entrepreneurial firms have been structured to provide territories for siblings (3)H. Levinson, "Conflicts That Plague Family Businesses," Harvard Business Review (March/April, 1971), pp. 90-98. (4)For a more thorough discussion of familial factors in business, see the following: P. Davis and D. Stern, "Adaptation, Survival, and Growth of the Family Business: An Integrated Systems Perspective," Human Relations, vol. 34, no. 4 (1980), pp. 207-224; W. G. Dyer, Jr., Cultural Change in Family Firms: Anticipating and Managing Business and Family Transitions (San Francisco: Jossey Bass, 1986); P. G. Holland and W. R. Boulton, "Balancing the `Family' and `Business' in Family Business," Business Horizons, vol. 27, no. 2 (1984), pp. 16-21; and E. Kepner, "The Family and the Firm: A Coevolutionary Perspective," Organizational Dynamics, vol. 49, no. 2 (1983), pp. 57-70. in the firm; and separate divisions have been started in some firms to give offspring a place to thrive under the family banner. (5) It can sometimes be beneficial to split the original firm into a family of enterprises in order to achieve the twin goals of family continuity and financial success. Owner/managers of family businesses face the dual challenges of rearing children who want to join the family business and to shape a work environment where the young person can "earn legitimacy": the confidence and ability to make significant contributions and the trust of others. …

Cooperative Strategies in International Business

Abstract: The article reviews the book “Cooperative Strategies in International Business,” by Farok J. Contractor and Peter Lorange.

An Analysis of the Use of Accounting Information by Australian Small Business

Abstract: AN ANALYSIS OF THE USE OF ACCOUNTING INFORMATION BY AUSTRALIAN SMALL BUSINESS Small business owner/managers rarely have ready acces to all of the information and skills one might regard as ideal for conducting all aspects of their businesses. Recent studies in various Australian locations have indicated that practicing accountants are an important source of advice to small business owners (a small business is, for the purpose of this discussion, defined as a business with a maximum of twenty employees, including the owners). However, few studies have specifically addressed the relevance of accounting information for economic decision making by small business owner/managers, or the amount and/or type of advice actually sought by small business owner/managers from their accountants. These areas are investigated in this article, with particular reference to capital investment decisions and those factors which influence the acquisition or preparation of accounting information. The authors would like to thank the Australian Bureau of Statistics for advice and assistance with the survey of small businesses. (1)See K. Fargher, "Problems kof Small Manufacturing Business in Australia," unpublished Ph.D. thesis, University of New South Wales, 1971; D.Back, "The Practicing Accountantin Queensland as an Advisor to Small Firms," Department of Commerce, James Cook University, 1978; W. Glen, "Information Generation and the Small Business Finance Function," The Australian Accountant (January/ February, 1985), pp.4247. Dr. Holmes is a lecturer in the Department of Commerce, Australian National University. He has published several articles in the professional literateture relating to the information requirements of small firms and has been an instructor for the New Enterprise Incentive Schemes in the Australian Capital Territory. He is an executive member of the Small Enterprises Association of Australia and New Zealand. Mr. Nicholls is a Reader in Statistics in the Faculty of Economic and Commerce at the Australian National University. The quantitative information summarized and analyzed in this article was obtained from two separate largescale surveys conducted in mid-1986. One survey sought relevant information from small business; the second was conducted among practicing accountants. Both target groups were surveyed in Sydney, Melbourne, and Brisbane. The surveys were aimed at investigating the degree to which small business owner/managers acquire and/or prepare accounting information for use in making business decisions or for statutory purposes, with particular emphasis on the evaluation of capital investment proposals. Variables which influence the preparation of accounting information were also examined. SAMPLE AND METHOD The small business survey was designed to obtain information from small business owner/managers about: . the accounting information produced within the firm or sought externally from accounting professionals; . the information used to assist in capital investment decisions and the role of practicing accountants in providing such information; . the use of written operating and capital budgets by small business; and . the variables influencing the preparation/acquisition of accounting information. In devising the sample frame of firms with which to investigate these questions, the aim was to obtain coverage in a number of different locations and across major industry groups. Accordingly, a stratified sample of 3,780 small firms was selected, consisting of 180 firms from each of the seven industry groups in three locations (Sydney, Melbourne, and Brisbane). Some 17 percent of the original sample were found to be "dead" listings, reducing the number of small firms surveyed to 3,140. Usable questionnaires were returned by 928 firms, a response rate of about 30 percent. …

Evaluating your computer investment strategy

Abstract: Expenditure in computerized information systems continues to rise as a percentage of a company’s income The increasing encouragement given by the information systems industry to regard this expenditure as a business opportunity has made CEOs regard this expenditure less as a necessary operational cost and more as an investment However, the ‘post-crash’ environment from 1987, and the 1990-93 recession have brought to business a new atmosphere of cost justification in information technology (IT) expenditure, and managers are seeking a realistic benefit evaluation to accompany computer investment submissions to the board

The rational approach to budget cuts: One university's experience

Abstract: What can we conclude from the experiences of UM in managing cutbacks? UM's approach to cutbacks met most of the criteria associated with rational decision making There was a limit, however, to how useful this approach could be - in 1984/5 UM returned to across-the-board cuts, because of the constraints faced by the university We could not analyze and reanalyze the situation We felt we couldn't go through the whole process again but we still had to cut (administrator) The constraints faced by most universities reduce the degree of strategic choice and limit the value of rational analysis The only way to save significant sums of money, since usually at least 80 percent of the budget is tied up in payroll, is to reduce posts Tenure protects the majority of professorial staff and Quebec legislation effectively guarantees job security for the nonacademics, so attrition has to be the main mechanism UM has not expressed any intention of breaking tenure and, in Canada, only the University of British Columbia has challenged it in a handful of cases Increasing revenues is difficult - additional research income only adds to overhead costs as many Canadian research councils do not pay them A lack of a tradition of giving to universities makes fund raising hard in Canada, particularly in the francophone culture Tuition fees, the lowest in Canada, are fixed by the government and have not increased for many years Student numbers were increased in an attempt to raise the government's operating grant but UM has been unable to profit from extra funding for management and engineering students because ??? and EP have separate budgets The business approach may improve cost efficiency but it will not, of itself, guarantee excellence and may in fact work against it Excellence in universities is the product of excellence in people It requires innovative and often risky recruitment decisions, and the provision of enough flexibility to allow individuals to be creative and innovative (Pearson, 1986) Increasing controls, quantifying output, pursuing predominantly economic goals may remove that flexibility and make attracting, keeping and motivating excellent people more difficult Successful university management involves developing an organizational saga (Clark, 1972) - a collective understanding of the institution's achievements which provides purpose and motivation, and finding the right approach for the particular institutional culture (Hardy, 1987) It requires leadership, communication, and political skills and not just economic analysis and strategy (Chaffee, 1984) We wish to argue that analysis figures prominently in both collegial and political processes, as well as garbage can ones, stimulated by the existence of ambiguous goals and multiple actors analysis serves more as a means of exerting influence in interactions rather than of resolving issues on its own It may be used to aid personal understanding for individuals or groups, but it also serves as a means of communication and attention focussing, as a means of legitimizing decisions, as a means of consensus-building, and perhaps most importantly as a means of persuasion In this way, analysis helps to ensure that what does get decided in fact has some justification in principle (Hardy et al, 1983; 421–423) Administrators at UM failed to create consensus because of inadequate political skills; ironically it was because they failed to do so that their actions were labelled as political The term “political” has negative connotations but it is important to realize that the same behaviour can be used for both the common good and self interest - political skills can be used to build consensus and enhance collegiality (Hardy et al, 1983) I think the imagery of politics is very helpful in understanding the operation of this place Of course this doesn't necessarily imply “dirty” politics I simply mean that you've got to understand the political forces - both inside and outside - that are trying to control this place There are pressures impinging on the officials of the university from all directions, and in a real sense the management of this university is a balancing process It's a task of balancing the demands of various groups against each other and against the university's resources the men in critical positions are not bureaucrats, they are politicians struggling to make dreams come true and fighting to balance interests off against each other (dean, quoted in Baldridge, 1971: 20–21) Defining and funding priorities and identifying and phasing out weak areas, without alienating the professoriate and endangering morale, relies on more than just rational analysis, it requires leadership, intuition and political will The problem with the current emphasis on the rational approach is that it ignores political reality and devalues political skills The analytic skills, concepts and frames of reference associated with the business perspective are of little use for managing the social and political processes occurring within the system (Lyles & Lenz, 1982) Universities may benefit from thinking more carefully about their environment, developing ideas as to their future direction, and acquiring more information about their activities but all the planning and analysis in the world will not necessarily make anything happen Universities are complex organizations in which the top-down approach associated with business is often untenable Decisions cannot be imposed, they have to be nurtured from the bottom-up (Mintzberg & Jorgenson, 1986), which involves not just machiavellian machinations but the ability to communicate, motivate, build consensus, and create loyalty and commitment The issues raised by the experiences of UM should be considered suggestive - a single case study obviously has its limitations It does, however, signal a need for further empirical study of the supposed benefits of the business model for universities There has sometimes been a willingness to both impose and accept the industrial rationale in the university community which is not necessarily justified Research is needed to answer the questions raised in this paper How feasible is the rational approach in universities in the light of the constraints they face? Why do universities use this approach - to be more businesslike, or for political reasons? What are the results of this approach and are they beneficial? How important are factors such as leadership, intuition, judgement, and political will, and are they being neglected as a result of business models? Is “good management” in a university the same as in business? Until we can answer these questions more authoritatively, our trust in business solutions may be misplaced

Business strategies that create wealth

Abstract: Over the past 20 years it has become increasingly clear that sound business strategy is the key to good financial performance. Senior managers in diversified companies have long known from experience that top‐notch business resources — modern equipment, state‐of‐the‐art technology, a motivated workforce — can be wasted in the service of competitively unrealistic business goals. But it is only in recent years that the principles of effective competitive strategy have begun to be soundly studied and codified.

Small business : planning, finance and control

Abstract: The genesis of a business setting up a business strategy and planning the business plan bank finance and services taxation and allowances accounting and the companies acts costs and profit controlling costs financial planning and budgets control and planning through budgeting accounting records understanding financial information capital investment appraisal management of working capital - inventory and cash credit control.

A different look at texts

Abstract: The course in business ethics is required by an increasing number of business programs. Accordingly, it seems appropriate to evaluate the text materials used from the perspective of the business student. Relative to early criticisms, recent texts represent consid- erable improvements in their use of case materials and in the manner by which they involve the student in decision- making situations. However, there are two distortions present in all of the texts examined. First, they concentrate too heavily on cases of a policy, or general management, nature. The result is an inadequate coverage of the func- tional areas of the firm in which graduates begin their employment. Second, they concentrate too heavily on manufacturing firms, and thus do not introduce students to the ethical problems found where they are most likely to work, in service firms. It is to be hoped that these imbalances can be easily corrected, thus providing students with a more realistic picture of where in the firm, and in which types of firms, ethical issues are likely to arise.

Ethics in business: education and internal auditors can help

Abstract: Do high ethical standards have an effect on a business enterprises success, by either strengthening or weakening its competitive position? Should ethics be taught as part of a business course? Although business schools cannot replace an ethical upbringing, it can make people aware of the ethical business issues. As a discipline, business ethics is still in its infancy. The development of business ethics both as a part of corporate strategy, and as a part of a business education is discussed, particularly in relation to the internal auditor.

A scientific approach to the measurement of it business value - part i: a manager's guide to 'business value linkage' impact analysis

Abstract: Information Systems Working Papers Series

Measuring business value for investments in point-of-sale technology

Abstract: Information Systems Working Papers Series

An Empirical Test of the Performance Implications of Environment-Strategy Coalignment.

Abstract: The positive performance impact of a coalignment between a business's environment and its strategy is an Important theoretical proposition in strategic management. The proposition was tested specif...

Business in the Contemporary World

Abstract: In Business and the Contemporary World, prominent authors from the academic, governmental, and religious communities focus on the corporation in the context of several specific issues: business and education; management-labor relations; business and the American constitutional system; business, democratic values and their projection abroad; the global competitiveness of American business; the relationship between U.S. commercial and national security interests; business and global communications; business and the phenomenal development of technology; and business and leadership. Contributions include: "A New Framework for Government-Business Relations: How Do We Respond Best to the Challenge of a World Economy?" by John B. Anderson; "Conventional Deterrence and the American Industrial Base: Security Challenge for the 1990s," by Robert S. Wood; "The Department of Defense, Defense Industry and Procurement: Fatal Misconceptions," by Lawrence J. Korb; "Liberal Arts Colleges and Corporate Creativity: Some Preliminary Reflections," by David Riesman; "The New Alliances: How Strategic Partnerships Are Reshaping American Business," by Rosabeth Moss Kanter; "Sources and Implications of Strategic Decline: The Case of the Japanese-American Competition in Microelectronics," by Charles H. Ferguson; "Technology, Business and America's Third Century," by Edward Wenk, Jr.; "Linking the Whole Human Race: The World as a Communications System," by Alex Inkeles; "The Sullivan Principles and Change in South Africa," by Leon H. Sullivan; "U.S. National Interests and National Strategy: Are There Parallels with U.S. International Corporate Interests?" by Donald E. Nuechterlein; and a conclusion by Herbert L. Sawyer. Co-published with Business in the Contemporary World.

Business Communication: Principles and Applications

Abstract: Completely revised, this new edition covers every major aspect of business communication. It includes new chapters on business communication technology, communicating in international business and new material on writing proposals, letters and memos as well as extended case studies.