Research News
Manufacturing
Firms Survive by Recognizing Fundamental Industry Changes
Enduring companies survive because employees throughout the firm, not just those in the executive suite, learn to keep an eye on how related industries are evolving, say Robert Burgelman and Andrew Grove. Strong firms don't just match the competition, they also recognize fundamental changes in their industries and stay strategically ahead.
Teamwork Can Boost Manufacturing Productivity
Those who work in the most complex manufacturing environments have the most to gain from the use of problem-solving teams, according to research coauthored by Business School Professor Kathryn Shaw. Teams had the most effect when they worked on very high-quality products with complex manufacturing steps.
Not Coordinating Price and Quantity Can Mean Lost Competitive Advantage
In most manufacturing operations, price is determined by the marketing
department while operations decides how much to manufacture. When these two
don’t coordinate well the result can mean the company loses competitive
advantage say researchers who have created a new mathematical model for finding
the optimal price and quantity to fit with real world consumer behavior. (June
2007)
The Best Way to Construct Unenforceable Contracts
Strong relationships rather than iron clad legal agreements can be the most practical way for firms to outsource key operational activities, says
associate professor Erica Plambeck. The threat of loss of future business is a
stronger incentive in many cases than a legal document. (April 2007)
Startups Need a Special Learning Curve for Sales
Before a young company can sell its product successfully, the entire
organization needs to learn how customers will acquire and use the product. This
requires a special learning curve for sales and marketing before the product is
ready for a major push, say researchers Charles Holloway and Mark Leslie.
(September 2006)
Music Industry Could Use Internet Piracy to Strategic Advantage
Digital piracy costs music, movie, and software industries billions, but
suing file-sharing internet networks and the consumers who use them to trade
copyrighted material can backfire, argues Tunay Tunca. His research conclusion?
Legal producers of digital goods can benefit from strategically using the
presence of file sharers to reduce damage from big commercial pirates. (April
2006)
Smart Usage of Auctions Can Save Industrial Buyers Millions
Buyers for major corporations may shave time and substantial costs from
purchasing goods and services by using procurement auctions wisely and in some
cases by mixing auctions with negotiations. (September 2005)
Factory Simulation Program Wins Wide Recognition
A sophisticated online program simulating factory operations, developed
at the Stanford Graduate School of Business, is teaching students at
over 40 colleges and universities some important lessons about production
processes. (February 2005)
Queuing Theory Meets Your Morning Latte
Researcher Sunil Kumar explores the theoretical possibility of channeling
customers through a service network in a way that allows them to pick the
"shortest route," while also subtly controlling them so that they don't end up
inadvertently clogging up the works in their zeal to get out as fast as
possible. It could lead to shorter lines at the DMV and other answers to
consumer dreams. (August 2003)
When is it Smart to Sell the Factory and Outsource?
Should your company keep control of its supply chain and manufacturing
facilities when it needs to expand — and risk getting stuck with
expensive capacity it can't use? Or should it outsource — and if so,
to whom and for how much? Researchers take on the build vs. buy dilemma.
(June 2003)
Not Tracking Double Orders Can Hurt Manufacturing Firms
When management fails to correctly estimate demand for a product or customers'
sensitivity to delay, the lapse can cost a company dearly say researchers.
Not taking into account double orders and not knowing clearly why a customer
has canceled an order can cause companies to build too much capacity or
not enough. (September 2002)
Book
Examines Intel Strategies
Intel CEO Craig Barrett's frustration with some of the spoils of
success is told by Robert Burgelman, the Edmund W. Littlefield Professor
of Management at the Stanford Graduate School of Business, in a new book
about how Intel has built business strategies, sometimes from the bottom
up, sometimes from the top down, or from all parts of the hierarchy
simultaneously. (July 2002)
The Bullwhip Can Really Beat Up a Supply Chain
What researchers call “the bullwhip effect” can cause a variety of expensive manufacturing problems. It is caused by information about demand for a product being distorted as it moves upstream in the manufacturing process. (June 2004)