Understanding managers' preferences for internal markets versus business planning: A comparative study of German and U.S. managers

Internal markets and centralized business planning are alternative organizational designs for coordinating the economic activities within a firm. While some preliminary theory about when to use each exists in the literature, little is known about how managers understand and decide when to use one or the other. The study develops and tests in samples of German and U.S. managers a preliminary theory about factors that influence the preferences of managers for internal markets or planning as alternative modes of coordination. Managers' preferences are influenced by key constructs of internal markets and planning theory (the perceived limits of planning, speed and efficiency of markets, motivation potential of markets), but also by differences in their institutional contexts (national government and business context, company culture, and recent company experience with planning and internal markets). The study is the first to explore the substitutability of internal markets and planning within the strategic decision process of managers, closer to where it becomes reality.     

Long range planning of U.K. and Japanese corporations—A comparative study

The author conducted mail surveys on long-range planning systems in Japanese and British corporations. He also made a number of visits to corporations in both countries to analyse the similarities and differences in the planning systems.In the U.K., the clarification of goals and the resource allocation are emphasized but in Japan clarification of goals and basic problem finding are stressed.The strategic projects are not necessarily formulated in the long-range planning process. The relationship between the project and the long-range planning was analysed and in both countries, the trend of long-range planning is towards more strategy orientation than quantitative computation.The planning process in Japan is more centralized. The management committee plays an important role in reviewing and making the final decision. In the U.K., the plan initiation is more decentralized, and in the final decision the board of directors plays a more important role. The trends are, however, from bottom up approach to top down approach.Goals expressed in the long-range plan of the U.K. corporations put more emphasis on financial goals, but that of the Japanese corporations emphasizes growth and employee welfare.Regarding the style of strategic decision-making the subjective responses show that it is partly analytical and partly intuitive. There are some differences between two countries, but this problem needs to be analysed further.To cope with uncertainty, multiple scenarios and contingency plans are more frequently used in the U.K., whereas in Japan the sequential decision is more commonly used. British corporations are better prepared for uncertainty than Japanese corporations.The key success factors of long-range planning are similar in both countries. The involvement of top management and cooperation of line management are two important items. Differences are that in the U.K. the planning system is emphasized in addition to the other factors, but in Japan clear goals are more emphasized.     

Competition within the U.S. National Security Regime: A study of the U.S. Aerospace Defense Sector

This article examines the aerospace defense sector and the national export control regime within which U.S. corporations operate. While the U.S. federal government plays many roles in this industry, the focus here is on its role as regulator of defense exports from the United States. From this vantage point, ten case studies illustrate the difficulties faced by companies in this challenging environment, and highlight factors that lead to noncompliance with U.S. government regulations. Firm performance effects are investigated, including impacts on profits, share price, and reputation. The paper concludes with implications for international management practice and international business research that reflect realities in the aerospace defense sector.     

Acquiring companies in the U.S.A.

This article lists the five important characteristics for the ideal acquisition candidate for investment in the United States. A good and long-lasting relationship takes much thought, planning and patience and the authors set out practical guidelines for companies seeking to acquire U.S. companies.     

Managing Risk: A Joint U.S.-German Perspective

Ideas from a USA-FRG conference on risk management are presented. In general, the difficulties confronted by risk management authorities in the two countries are similar, from discovering important risks at an early stage to setting acceptable goals. Government regulation is overburdened and somewhat inefficient in both countries, leading to greater search for alternatives. The many differences in approach between the two countries can inform both. German risk management is done largely through negotiations among the affected parties; when this does not resolve a dispute, a specialized administrative court takes charge. In both countries nonregulatory methods of managing risk should be enhanced and given a larger role. A matrix of risk management method versus criteria proved stimulating in comparing and ranking approaches. The conceptual differences between managing discrete events (auto crashes, boiler explosions, etc.) and chronic exposures have not been appreciated. Although uncertainty and probability are involved in both, there are qualitative differences in both analysis and management. Public perceptions of risk and the role these should play have been characterized by "objectivist" and "subjectivist" positions. In the former view, risks are subject to analysis, are calculable, and the public must be educated to accept the conclusions of experts. In the latter view what people perceive is what is most important, both psychologically and politically, and the risk experts must understand public fears and desires. These are important opportunities for cross cultural studies.     

Organizational Philosophies of Japanese companies in the U.S.A.

The paper presents data about the Organizational Philosophies of fifty-nine Japanese owned companies in the United States. Harmony emerged as the single most popular element in these Organizational Philosophies. Data about specific concepts of Organizational Philosophy (kaizen, correct attitudes) were also obtained. Mechanisms to encourage the adoption and use of Organizational Philosophy were investigated. The evidence suggests that Organizational Philosophy continues to be an important aspect of Japanese companies in the U.S.A., and that American managers of these companies are accepting these Philosophies.An earlier version of this paper was presented at the 1991 International Academy of Management and Marketing Annual Conference held in Detroit, MI.     

Long-term planning in the U.S.S.R.

This article illustrates the U.S.S.R. approach to long-term planning and the relationship of cooperative planning within the Comecon countries. The conception of planning which the author puts forward is comprehensive and is illustrative of what is being attempted at the macro level in the centrally planned economies.     

经济全球化背景下的美国政府经济政策研究

研究了在经济全球化背景下的美国政府经济政策,分析了为提高国际竞争力美国政府在高科技领域、产业升级等方面所制定的贸易政策、财政和福利政策,最后提出对我国的几点借鉴.了解美国政府的经济政策决策及经济环境优势,对我国市场经济的改革取向、维护国家利益有一定的战略意义.     

Management knowledge and skills required by U.K. and U.S. medical directors

A survey was undertaken of the medical directors of National Health Service trusts in the South Thames Regional Health Authority of the United Kingdom. The purpose of the survey was to ascertain medical directors' views regarding the importance of various areas of administrative practice, their preparedness in these areas of administrative knowledge prior to taking up their roles as medical directors, and their views as to the body of knowledge required for future medical directors. The study was compared with a similar study undertaken in the United States. While there were many areas of agreement between the English and the American medical administrators, there were also areas of significant differences of opinion. The need to develop a recognized training program in medical administration is acknowledged.     

Competitive strategies in U.S. banking

This paper discusses the planning gaps and needs of U.S. Commercial and Savings Banks which must be addressed as part of a strategic response to the new competitors in the field and the new circumstances.     

Environmental scanning in U.S. corporations.

Environmental scanning is a new activity among corporations, because of its importance, corporations need to progress by stages to achieve a structured and formal system of scanning, and this takes time. This paper is based on a study examining the evolution and state of environmental scanning among corporations, and finds that the essential difference between scanning at the corporate and at the product/market level is not observed by all companies. Ideally, there should be a close liaison between the two levels so that each may reinforce the scanning effort of the other.     

International investment motivations of U.S. wineries

This study used personal and telephone interviews of wine industry executives and observers to examine the foreign direct investment motivations of U.S. wineries. Underlying most winery motivations was the recognition that U.S. wineries sense increasing pressure to offer a competitive range of wines that meet the price/quality needs of consumers and retailers in important markets and market segments. Wineries’ marketing plans are often constrained by their ability to obtain adequate grape and juice supplies that meet important price and quality criteria, especially when domestic grape production drops. The importance of product portfolios and the industry’s resource dependence have placed tremendous pressures on U.S. wineries to coordinate winegrape and juice acquisitions, especially as retailers consolidate their supply chains. Some U.S. wineries have invested abroad in response to these pressures while others have not. Interview results suggest that foreign investments by U.S. wineries were primarily motivated by the need for greater access to stable or adequate winegrape/juice supplies, the need for more control over the winegrape costs within given quality levels, and the desire to expand wine portfolios.     

Explaining Investment Dynamics in U.S. Manufacturing: A Generalized (S,s) Approach

In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms facing stochastic fixed adjustment costs. Instead of the standard sharp (S,s) bands, firms' adjustment policies take the form of a probability of adjustment (adjustment hazard) that responds smoothly to changes in firms' capacity gap. The model has appealing aggregation properties, and yields nonlinear aggregate time series processes. The passivity of normal times is, occasionally, more than offset by the brisk response to large accumulated shocks. Using within and out-of-sample criteria, we find that the model performs substantially better than the standard linear models of investment for postwar sectoral U.S. manufacturing equipment and structures investment data.     

BUSINESS COMBINATION DECISIONS: A U.S./CANADA STUDY*

The purpose of this paper is to clarify the motives behind business combination decisions. Twenty-one favorable characteristics associated with the motivations for business combinations were selected to serve as the basis for an empirical survey. Our analysis revealed that there are seven motivational variables of varying import and that the motivations underlying business combination decisions are similar for U.S. and Canadian executives.     

Flexible manufacturing systems performance in U.S. automotive manufacturing plants: a case study

Flexible manufacturing systems (FMS) philosophy is a key weapon in achieving global manufacturing competitiveness. It encompasses a wide range of dimensions to improve all aspects of operational performance metrics. The aim of the study is to examine the current state of flexibility adoption in U.S. automotive manufacturing facilities and its impact on operational performance metrics. It utilizes survey questionnaire developed based on previous work in U.S. manufacturing industry. The survey was originally distributed to 420 facility managers in the U.S. domestic automotive industry. It was revealed that 70% of the respondents had implemented all 15 flexibility dimensions listed in the questionnaire. The data analysis conducted shows that implementation of certain flexibility dimensions will lead to significant improvement in specific operational performance metrics. This considerable finding can be used as a guide for manufacturing managers to achieve certain objectives in operational performance improvement in a rapidly changing environment.     

U.S. government recognizes new institutional form

A new institutional form has been growing in the United States since World War II for helping to accomplish technology-intensive public programs and improve public policy. The form — a so-called “Federally-Funded Research and Development Center” (FFRDC) — has now been officially recognized at a very high level of the Government.This article describes FFRDCs and their history, lists the important roles they can play on public problems, and concludes that the advantages they offer will not be fully utilized if they continue to be treated by some as an anomaly in the institutional makeup of the U.S. economy.     

Performance-Based Budgeting: The U.S. Experience

In the United States, it is premature to claim that performance-based budgeting (PBB) will replace line-item budgeting in near future, particularly at the federal and state level. This article attempts to (1) provide a brief historical context of PBB in the U.S.; (2) identify some challenges associated with the theoretical underpinnings and operational principles of PBB; (3) document current practice and research pertaining to designing and implementation; and (4) discuss the prospect of PBB. The locus of PBB in the 21St century will be local, the focus will be comparative, and the impetus will come mainly from the media.