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Wherever there is a substantial volume of facts or figures to be processed, there you will find a computer. It may be, for instance, despatches to be valued, invoices to be produced, medical statistics to be analysed, stress calculations to be performed, or weather maps to be constructed. Whatever process a computer is used for, or whatever the variety of tasks done by any given machine, essentially four different types of human job need to be carried out:

Incivility is widespread in the workplace and has been shown to have significant affective and behavioral consequences. However, the authors still have a limited understanding as to whether, how and when discrete incivility events impact team performance. Adopting a resource depletion perspective and focusing on the cognitive implications of such events, the authors introduce a multi-level model linking the adverse effects of such events on team members’ working memory – the “workbench” of the cognitive system where most planning, analyses, and management of goals occur – to team effectiveness. The model which the authors develop proposes that that uncivil interpersonal behavior in general, and rudeness – a central manifestation of incivility – in particular, may place a significant drain on individuals’ working memory capacity, affecting team effectiveness via its effects on individual performance and coordination-related team emergent states and action-phase processes. In the context of this model, the authors offer an overarching framework for making sense of disparate findings regarding how, why and when incivility affects performance outcomes at multiple levels. More specifically, the authors use this framework to: (a) suggest how individual-level cognitive impairment and weakened coordinative team processes may mediate these incivility-based effects, and (b) explain how event, context, and individual difference factors moderators may attenuate or exacerbate these cognition-mediated effects.

This paper examines the gray market for consumer products, with a particular emphasis on the reasons for gray market growth, the distinct channels of distribution for gray market products, and the means by which the gray markets may be terminated. Secondary emphasis is provided on the factors that lead to gray market emergence and on the impact of exchange rates on gray markets. A major conclusion of the analysis is that gray markets for consumer products will continue to grow as manufacturers benefit from gray markets. This growth will be associated with products manufactured and distributed within the national market rather than imported products which fueled the gray market growth of the previous five years.

Research in customer satisfaction over the past decade has lead to a much richer understanding of service quality and customer expectations. In trying to untangle the linkage between satisfied customers and long‐term success for the organization, however, attention has evolved from a focus on customer satisfaction to a realization that retaining customers and developing loyalty are essential for organizational success. This interpretive investigation focuses on customer retention and loyalty in an effort to understand better these variables in the context of service organizations. In so doing we review the rise of managerial concern for customer retention and loyalty and examine the definitions and relationships of these constructs. Then, to develop a richer understanding of repeat buyers, semi‐structured interviews were conducted with consumers identifying themselves as “loyal”. A typology of loyalty is offered consisting of five levels of repeat buyers, ranging from “prisoners” to “apostles”. Additionally, the managerial implications of this typology are discussed.

Theory predicts that balancing exploratory and exploitative learning (i.e., ambidexterity) across alliance portfolio domains (e.g. value chain function, governance modes) increases firm performance, whereas balance within domains decreases performance. Prior empirical work, however, only assessed balance/imbalance within and across two domains. The purpose of this study is to determine if theory generalizes beyond specific domain combinations. The authors investigated across multiple domains to determine whether alliance portfolios should be imbalanced toward exploration or exploitation within domains or balanced across domains. The authors also extended prior research by exploring whether the direction of imbalance matters. Current theory only advises managers to accept imbalance without helping with the choice between exploration and exploitation.

Hypotheses are tested using fixed-effects generalized least squares (GLS) regression analysis of a large 13-year panel sample of Fortune 500 firms from 1996 to 2008.

With respect to the balance between exploration and exploitation within each of the five domains investigated, imbalanced alliance portfolios had higher firm performance. No evidence was found that balance across domains relates to performance. Instead, for four of the five domains, imbalance toward exploration related positively to firm performance.

An alliance portfolio that allows for exploration in some domains and exploitation in other domains appears more difficult to implement than prior theory suggests. Firms benefit mostly from using the alliance portfolio for exploratory learning.

The case opens with Martha Stewart's 2005 release from prison following her conviction for obstructing an insider-trading investigation of her 2001 sale of personal stock. The scandal dealt a crippling blow to the powerful Martha Stewart brand and drove results at her namesake company, Martha Stewart Living Omnimedia (MSO), deep into the red. But as owner of more than 90 percent of MSO's voting shares, Stewart continued to control the company throughout the scandal.

The company faced significant external challenges, including changing consumer preferences and mounting competition in all of its markets. Ad rates were under pressure as advertisers began fragmenting spending across multiple platforms, including the Internet and social media, where MSO was weak. New competitors were luring readers from MSO's flagship publication, Martha Stewart Living. And in its second biggest business, merchandising, retailing juggernauts such as Walmart and Target were crushing MSO's most important sales channel, Kmart. Internal challenges loomed even larger, with numerous failures of governance while the company attempted a turnaround.

This case can be used to teach either corporate governance or turnarounds.

Students will learn:

• How control of shareholder voting rights by a founding executive can undermine corporate governance

• The importance of independent directors and board committees

• How company bylaws affect corporate governance

• How to recognize and respond to early signs of stagnation

• How to avoid management actions that can make a crisis worse

• How weaknesses in executive leadership can push a company into crisis and foster a culture that actively prevents strategic revitalization

How control of shareholder voting rights by a founding executive can undermine corporate governance

The importance of independent directors and board committees

How company bylaws affect corporate governance

How to recognize and respond to early signs of stagnation

How to avoid management actions that can make a crisis worse

How weaknesses in executive leadership can push a company into crisis and foster a culture that actively prevents strategic revitalization

With a burgeoning stream of online choices, fostering customer loyalty is a constant challenge. Companies must become masters of the new “nonstop customer” experience. They will at times have to analyze the data on their customers' behavior for new opportunities, and at other times directly influence their customers' choices.

Customers continue to escape from traditional marketing channels into digital realms where they can become more knowledgeable and empowered than they have been in the past. So the nonstop-customer experience model uniquely places evaluation, not purchase, at its center.

The article offers a new rule number one of marketing is: know your customer's behavior on their path to purchase.

To understand what customer journeys are being taken by customers, the model groups loyalty behaviors into four general archetypes: emotional loyalty, inertia-based loyalty, conditional loyalty and true deal chasing.

The article proposes that marketing departments act on the insight they gain from analyzing their customers in terms of the four loyalty profiles in two ways: by sometimes reinforcing customer behaviors, and at other times redirecting them.

Prior research from transaction costs economics argued that central firms perform better because they have superior access to information to discipline their alliance partners. Central firms may also, however, face higher costs and risks of unintentional learning and weaken their competence through structural inertia. We propose that these costs and risks are influenced by the learning capacities of the firms in the network and can explain different outcomes for focal firm performance.

To test our predictions, we use instrumental variable–generalized method of moments estimation techniques on 15,517 firm-year observations from equity alliance portfolios in the global food industry across a 21-year window.

We find support for our predictions and show that the relationship between network degree centrality and firm performance is negatively influenced by partners’ learning capacity and positively influenced by focal firms’ learning capacity, while firms with low network degree centrality benefit less from their learning capacity.

Future developments in transaction cost economics may consider partner and focal firms’ learning capacity as moderators of the network degree centrality – firm performance relationship.

In alliance decisions, managers must consider that the combination of high network degree centrality and partners’ learning capacity can lead to high costs, risks of unintentional learning, and structural inertia, all of which have negative consequences for performance. In concentrated industries where network positions are controlled by a few large firms, policymakers must acknowledge that firms may face substantial barriers to collaboration with learning-intensive firms.

This study is the first to develop and test a comprehensive transaction cost analysis of the central firm’s unintended knowledge flows and structural inertia in alliance networks. It is also the first to incorporate theoretically and empirically the hazards of complex and unintended information flows on the relationship of network degree centrality to performance in equity alliance portfolios.

This case is an abridged version of UVA-F-1115. This version is intended for use with audiences requiring less source documentation than is available in the unabridged version. The teaching note, however, contains all the source documentation in an appendix.