How the Brazilian subsidiary of a U.S. multinational reduced its exposure to exchange losses

Article Abstract:

An unnamed multinational pharmaceutical corporation based in the U.S. was concerned about its operation in Brazil, which had been suffering from competition from both local and foreign manufacturers and which had questionable foreign exchange policies, questionable at least by the home office. The continuing devaluation of the cruzeiro (about every ten days) hurt the company's operation because it had 90-day payment terms with its customers, which motivated the company to implement a forward pricing payment schedule under which the loss due to the devaluation of the cruzeiro would be passed on to customers. The implementation and operation of the forward pricing system is described.

Usage, International trade, Subsidiary corporations, Subsidiaries, International business enterprises, Multinational corporations, Foreign exchange, Brazil

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The system Texas Instruments developed to manage innovation

Article Abstract:

Texas Instruments Inc. has focused its growth on technological innovations within the electronics and computer industries, rather than through acquisitions. To manage the innovations, the company developed the OST (objectives, strategies and tactics) system. OST is used to define strategies to be used to encourage growth and development and to investigate what would be required to implement these strategies. The system is described in three stages: the hierarchy of goals, the dual responsibility of management, and the impact of dual mode structure (operating and strategic modes). The design, implementation and operation of the system at Texas Instruments is described.

Computer industry, Electronics industry, Texas Instruments Inc., Diffusion of innovations

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Searching for innovation through tiny increments

Article Abstract:

Managers in general do not understand the nature of creativity in business as it is applied to the development of new products and processes within their organizations. Most managers overemphasize the role of technological innovations and overlook the role of nontechnical ideas in innovative management. 'Creative imitation' has be denigrated by many analysts and managers, but the Japanese have used this technique to reach unparalleled levels of success. The Japanese automobile industry is presented as an example of the successful use of creative imitation.

Analysis, Business planning, Executive ability, Business success

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