Business strategy and business history : a review and prospectus

School of Managemen

Product customisation: an empirical study of competitive advantage and repeat business

Empirical evidence is presented from 24 UK based manufacturing companies, all offering a degree of product customisation, with most having a significant Engineer-to-order (ETO) element. The majority of the companies are SME’s, with the associated limited managerial resources. The evidence addresses the issues of competitive advantage, including a detailed investigation of the strategic importance of repeat business. It contrasts its results with those generally found in the literature and concludes that there are significant differences in the order winners/ qualifiers. In particular, the evidence suggests that customisation is an order qualifier rather than an order winner; as it is increasingly unlikely that competitors will only offer a more standard product. Thus alternative order winners are needed and often price becomes the most significant factor, rather than being a mere order qualifier. Four different types of repeat business are then identified and the strategic importance of repeat business is discussed. It is indicated that for some ETO companies, repeat business is perceived to be an important method to reduce costs and achieve business stability. However, a number of the other companies studied saw repeat business as infeasible and hence need to find other ways to reduce costs and improve company performance measures, such as lead times. Future research to extend this work into a longitudinal study is proposed. Issues to explore are how the importance of repeat business has changed, and how the companies have evolved in terms of the degree of customisation offered versus that offered by their competitors

Managing UIC Medical Center Policies Using DSpace

The University of Illinois at Chicago’s University Archives found that using the DSpace institutional repository software is an effective, if not elegant, solution for the submission, search, and retrieval of a set of vital university records. This case study discusses the process of using the institutional repository to manage the University of Illinois Medical Center’s electronic policies and procedures documents

Fair Shares for All? The development of needs based governmental funding in education, health and housing

Furthering equity as an achievable public policy objective is based on the ability to assess needs accurately, and distribute resources accordingly. This paper plots the development of the formulae governing resouce allocation in education, health and social housing, and charts their course as a tool with which governments attempted to achieve various objectives. The paper begins by suggesting that allocation systems can be explained through a form of public choice theory. It then charts the development of needs-based resource allocation from its origin in the nineteenth century, through the pre- and post Second World War period, and into the major flowering of needs-based formulae since 1970 - when resources were constrained and attempts were made to push allocation even further down and apply the formulae to smaller units. The conclusion looks at equity, public choice and technical ability as over-riding features governing the development of resource allocation within the English state sector.Resource allocation, funding formulae, geographical equity

Forecast Failure, Expectations Formation, and the Lucas Critique

Since forecast failure is due to unanticipated large shifts in deterministic factors,'sensible' agents should adopt 'robust forecasting rules'. Unless the model coincides with the generating mechanism, one cannot even prove that causal variables will dominate non-causal in forecasting. In such a non-stationary world, 'rational expectations' do not have an epistemologically-sound basis: agents cannot know how all relevant information enters the joint data density at every point in time. Thus, although econometric models 'break down' intermittently when deterministic shifts occur, that is not due to the Lucas critique and need not impugen their value for policy analyses.

A General Forecast-error Taxonomy

The paper considers the sources of forecast errors and their consequences in an evolving economy subject to structural breaks,forecasting from mis-specified, data-based models. A model-free taxonomy of forecast errors highlights that deterministic shifts are a major cause of systematic forecast failure. Other sources seem to pose fewer problems. The taxonomy embeds several previous model-based taxonomies for VARs, VECMs, and multi-step estimators, and reveals the stringent requirements that rationality assumptions impose on economic agents.

Unpredictability and the Foundations of Economic Forecasting

We revisit the concept of unpredictability to explore its implications for forecasting strategies in a non-stationary world subject to structural breaks, where model and mechanism differ. Six aspects of the role of unpredictability are distinguished, compounding the four additional mistakes most likely in estimated forecasting models. Structural breaks, rather than limited information, are the key problem, exacerbated by conflicting requirements on forecast-error corrections. We consider model transformations and corrections to reduce forecast-error biases, as usual at some cost in increased forecast-error variances. The analysis is illustrated by an empirical application to M1 in the UK.