商務(wù)英語案例

商務(wù)英語-案例FacingBusinessChallengesatGateway2000FromFarmBoytoBillionaireComputers.Theoddsareslimyouwillsurvive,muchlessthrive,inthisindustry.Youhavetoguesswhatcustomerswillwantmorethanayearinadvance,eventhoughtechnologyischangingatanincrediblyfastpace.It'shardlyabusinessforcowboys-unlessyou'reTedWaitt.Sonofafourth-generationcattlebroker,Waitt(currently34andworthanestimated$1.7billion)ridesherdoverGateway2000.TheytellstoriesaboutWaitt,andnotjustinSiouxCity,SouthDakota-Gateway'shomeland.Theytalkabouthowhebuiltafortunebytrustinghisinstinctsandmakinggutsycallsthatledtheindustry.Howheborrowed$10,000fromhisgrandmothertostartamail-ordercomputerbusiness,andhowheturnedatwo-man,farmhouseoperationintoaglobalgiant-inonlytenyears.Andtheytalkaboutthepony-tailedfarmboycladindeckshoesandapoloshirtwhoknewthatsomedayhewasgoingtorunhisowncompany.ItallbeganwhileWaittwasworkingforalocalcomputerstore;hewasamazedbyhoweasyitwastosellcomputerequipmenttoacknowledgeablecomputerusersoverthephone.Soin1985Waitt(themarketer)teamedupwithhisbuddyMikeHammond(thetechnicalwhiz),andthetwostartedasmallmail-ordercomputerbusinessoftheirown.WaittandHammondworkedlonghours-fromtheirupstairsofficeinWaitt'sfamilyfarmhouse.Theirbigbreakcamein1987,whenTexasInstruments(TI)decidedtostopmanufacturingitsowncomputersandinsteadsellonlyindustry-standardIBM-compatiblepersonalcomputers(PCs).Ofcourse,ownersofTIcomputerscouldtradeintheirequipmentfornewerIBM-compatiblecomputers,butfirsttheywouldhavetocoughup$3,500.WaittandHammondknewtheycouldprovidethesamecomputerequipmentTIwasoffering-andatamuchcheaperprice($1,955).Theydidthisbyfindingthebestdealsoncutting-edgecomputercomponents,andassemblingthecomponentstobuildtopqualitycustomPCs.Becauseallsalesweremade-to-orderandtransactedoverthephone,Gatewaycouldaffordtogivecustomersmorecomputerfortheirmoney-astrategyfromwhichthecompanyhasneverveered.Withinthreeshortyears,thecompanywasshipping225PCsaday(eachoneinablack-and-whitecow-spottedbox),andsalesreached$70million.By1993salestopped$1.7billion,andthecompanysolditsstocktotheinvestingpublic.InspiteofGateway'sspeedytriptothetop,thecompanywasatatreacherousintersection.Gatewaywasrunessentiallybyoneguy-TedWaitt-whoreliedonhisinstincts.Andthecompanywasgettingtoobigtodependononlyoneman'sjudgment.Inordertosurviveinthiscompetitiveindustry,Gatewaywouldhavetofindwaystoexpanditscustomerbaseandmanagethecompany'sgrowth.IfyouwereTedWaitt,whatstepswouldyoutaketobeefupbusiness?Wouldyoucompeteonprice,speed,quality,orinnovation?Wouldyouconsiderothersalesapproachesbesidestelephoneselling?MeetingBusinessChallengesatGateway2000Relyingonhisinstincts,TedWaittmadeanumberofcriticalcallsthatputGatewayinthelead.Ofcourse,Waittwasnolongeraone-manshow.Beginningin1991,hebroughtinexperiencedexecutives(fromtopcompanieslikeDigitalEquipment,TexasInstruments,andIBM)tohelpmanagethecompany'sgrowth.TogethertheybroughtGatewaytonewheightswhilestickingwithitsefficient,bare-bonesassemblyoperation-noshowroom,littleinventory,andnoretailoutlets.Infact,Gateway'ssimpledirect-salesoperationallowsthecompanytocompeteonspeed,quality,andprice.SpeedandqualityinmanufacturinggiveGatewaythebiggestadvantage.Notonlycanspeedandqualitywincustomers,buttheywintherightkindofcustomers-thosewhoarewillingtopayabitmoreforcomputerequipment.Gatewaymoveslikelightning:Itgetsnewcomputersoutthedoorinahurry.Theyincludeallthelatesttechnology-liketop-qualitycolormonitors,thelatestoperatingsystemandsoftware,andthemostpowerfulcomputerchip.Ofcourse,buyingacomputeroverthetelephoneandnotseeingtheequipmentuntilthetruckdeliversthecow-spottedboxestoyourdoorstepisnotforeveryone.Gatewayattractscomputer-savvybuyerswhoneedalotlesshand-holdingandarecomfortablepurchasingfromacatalogoranadvertisement.Here'showitworks:Thecustomercallsinand,overthephone(orInternet),designsacustom-configuredcomputersystemusingcutting-edgetechnology.Inaboutfivedays,thecustomsystemisbuiltandshipped.Becausethereisnoinventorytospeakof(computersaremade-to-order),astechnologygetscheaper,Gatewaycancompeteonpricebychangingpricesdailyandpassingthesavingsontocustomers.Relyingonwordofmouthandastrongadvertisingcampaign(about$90millionayear),Gatewayrodeawaveofsuccessfueledbycomputerbuyershuntingforgoodequipmentatbargainprices.Gateway'ssuccess,however,didnotcomewithoutitsshareofgrowingpains.Gateway'sfirstportablelaptopcomputerwasadisaster.Failingtorecognizethatcustomershadtoseeandtouchtheproducttoappreciateitssmallersizeandcapabilities,Gatewayranintoawallbecausethecompany'scomputerswerenotsoldinretailstoreswherecustomerscouldexperiencetheproduct'sfeatures.Thislessonwouldnotbeforgotten.Othermishapsincludedsendingoutmachinesthatdidnotworkandbusyphonelinesthatkeptcustomerswaiting-sometimesforhours.Fortunately,Waittcorrectedtheseproblemsearlyonbyinstitutingvariousquality-controlmeasurestoincreasecustomersatisfaction.Andhiseffortspaidoff.By1996Gatewaywasshipping5,000to6,000computersdailyandsalesskyrocketedtoroughly$5billion.ThatsameyearGatewaylaunchedaproductthatwaswayaheadofitstime.CalledDestination,itwasacomboPCand31-inchtelevisionsetwithawirelesskeyboard,amouse,andahome-theatersoundsystem.Learningfrompastmistakes,Waittknewhewouldhavetogettheproductinfrontofconsumerssothattheycouldseeitsfeatures.ThistimeGatewaycutdealswithretailstores.NonehadevercarriedGateway'sstuffbefore.ButWaitt'sbiggestchallengehasbeentryingtocrackthecorporatemarket.WhereasGatewaysoldmostofitscomputerstoindividualusersandsmallbusinesses,rivalDellsetitssightsonthelucrativeFortune1000corporateaccountsandmadesomeexpensiveinvestments-like$22millioninresearchanddevelopment(Gatewayspentpracticallyzip).Despitedoublingitssalesforce,Gatewaydiscoveredthatsellingcomputerstocorporatecustomerswasnotaneasytask.Firstofall,competitorslikeIBMandHewlett-Packard(HP)havelarge,well-trainedsalesandservicestaffswhohavebeendoingbusinesswithbigcompaniesforyears.Furthermore,IBMandHPproductscanbepurchasedattraditionalretailstores.Still,relyingonacost-efficient,bare-bones,direct-saleoperationisGateway'sstrongholdinthiscutthroatindustry.Thecompanyhasnoplanstoalteritsfundamentalsellingstrategy."Ifyoucomeseeusinthenextcentury,we'llbebigger,better,andsmarter,butfundamentallywe'llbethesame,"notesWaitt.Thatis,Gatewaywillsticktowhatitdoesbest:churningouthugevolumesofPCsthatareequippedwiththelatesttechnologyataffordable-butnotrockbottom-pricesandsellingthemtocustomersoverthephone.

FacingBusinessChallengesatHolidayInnWorldwideSendingInvitationsAcrosstheGlobeInthe1960safamilyvacationintheUnitedStatesusuallymeantloadingthekidsintothestationwagonanddrivingoffdownthehighwaytowardatouristdestination.Andwhenwearyvacationersneededtorestforthenight,theyoftenlookedforthefamiliargreensignswith“HolidayInn”writteninscriptandacolorfulstarforemphasis.AllacrosstheUnitedStates,thissignwelcomedtravelerstoHollidayInnhotelswithpromisesofquality,comfort,andvalue.By1968HolidayInnwassowellknownintheUnitedStatesthatitbeganopeningfranchisesinEurope.In1973thecompanyopeneditsfirstAsianhotelinJapan,andin1984itbecamethefirstU.S.-basedhoteltoopenforbusinessinChina.For25yearsHolidayInnenjoyedgreatsuccessintheEuropeanandAsianmarkets,opening600hotelsandearningareputationasupscale,professional,andwellrun.However,inthe1980sHolidayInn’sfortuneswerebeginningtofadeintheUnitedStates.Manyofthefranchiseswereoutdatedandsubstandard.Familyvacationerswerebeingreplacedbybusinesstravelersasthehotelindustry’sbreadandbutter,andaggressivecompetitorswithsuperiormarketingstrategiesweretargetingthisgrowingsegment.Inaddition,overbuildinghadsetoffawaveofpricediscounting.Asaresult,bothHolidayInn’sshareofthelodgingmarketanditsimagetookanosedive.Butinthe1990sthisiconoftheU.S.highwaywasbroughtbacktolifeafterbeingpurchasedbyBassPLC,aBritishconglomerate.BassmovedquicklytomakeHolidayInnWorldwidetheleadinghotelchain,notjustintheUnitedStatesbutaroundtheglobe.IntheUnitedStates,HolidayInnpursuedastrategythatsegmentedthemarketintodifferenttypesoftravelersandcreatedauniquetypeoflodgingforeachgroup.UndernameslikeHolidayInnExpress,HolidayInnSelect,SunspreeResorts,andCrownePlaza,thecompanyoffereddifferentaccommodationsandamenitiesatdifferentpricestosuitthediverseneedsofbusinessandleisuretravelers.Combinedwithacampaigntobringallofthefranchisesbackuptoahighstandardofquality,thestrategyquicklybegantopayoff.Evenso,thetopbrassatHolidayInnWorldwideknowsthatthegreatestgrowthpotentialisnotinthesaturatedU.S.marketbutintheevolvingmarketsofEurope,Asia,andLatinAmerica.Withincreasingtourismandbusinessdevelopmentintheseregions,thedemandforcomfortable,consistent,andaffordableaccommodationsisbooming.HolidayInnneedsastrategyfortappingthisvastpotential.WouldthestrategiesthatfueledHolidayInn’sturnaroundintheUnitedStatesbringsimilarresultsinternationally?Large-scaleconstructionofnewhotelswillplayamajorrole,sowhatkindsofhotelsshouldtheybe?Howcanthecompanybestmeettheneedsofawidevarietyofinternationaltravelers?ShouldHolidayInnexpandthroughfranchisesorbyopeningcompany-ownedhotels?Shouldthesametypeofpromotionbeusedfortheentireglobalmarketorshoulditbelocalizedtoeachgeographicarea?ThesearequestionsthatRaymondLewisfacesdailyasvicepresidentofmarketing.IfyouwereLewis,howwouldyouanswerthem?MeetingBusinessChallengesatHolidayInnWorldwidePartofRaymondLewis’sjobistomonitorandpredictchangesintheever-evolvingglobalmarket.Amongthetrendshehasobservedistheincreasingsimilaritybetweentheneedsanddesiresexpressedbyconsumersandbusinessesaroundtheworldincertainproductcategoriessuchaslodging.Ontheotherhand,Lewisknowsthatvariouscountriesandculturesapproachpurchasesdifferently,andthatpeopleofvariousculturesresponddifferentlytoproductpromotion.Hischallenge,then,istofigureouthowtosatisfyboththesimilarandthediverseneedsofeachnewmarket.Lewisalsoknowsthatalltravelers,regardlessofwheretheyarefromorwheretheyaregoing,sharemanyofthesamedesires,fears,andexpectationswhentheyaretraveling.Theymaynotspeakthesamelanguageorlivethesameliveswhileathome,butwhenthey’reontheroad,alltravelersare(1)awayfromhomeandoutoftheirpersonalcomfortzones,(2)indifferentandoftenunfamiliarsurroundings,and(3)subjecttothesamehasslesandhardships.Therefore,HolidayInnfocusesondeliveringaconsistentproductaroundtheworld.Thisway,whetherthehotelisinSouthKorea,India,BuenosAires,orIsrael,travelersknowthattheywillalwaysreceiveacomfortableroomatafairprice.Inaddition,thestrategyofsegmentingthemarketbytypesoftravelersthatprovedsosuccessfulintheUnitedStatesalsoworksabroad,butinadifferentway.SegmentationinthehotelindustryisarelativelynewconceptinEurope,andinAsiaitisvirtuallynonexistent.ThisislargelybecauseinmanyofthedevelopingnationsofAsia,travelhasonlyrecentlybecomeanoptionforthemajorityofpeople.Asaresult,noteverytypeofHolidayInnhotelwillbesuccessfulineverycountry.Thecompanymustknoweachmarketverywellbeforeitdecideswhichtypeofhoteltoopen.Doestheareadrawmainlytouristsorbusinesstravelers?Howlongdovisitorsusuallystay?Dopeoplefromsurroundingareastraveloften?Whattypesofaccommodationsdocompetitorsofferinthearea?Byknowingtheanswerstoquestionslikethese,HolidayInnisabletodecidewhichtypeofhotelwillbestservetheneedsoftravelerstothearea.Forexample,thecompanyopenedaSunSpreeResortinArequipa,Peru,closetoMachuPichu,apopularinternationaltouristdestination.HolidayInn’smanagementteamfeelsthatSunspreehasagreatchanceforsuccessinthislocationbecausethehotelcaterstotourists.Inthesameway,HolidayInnmanagementexpectsamixofbusinessandleisuretravelerstovisitSeoul,SouthKorea.Therefore,thenewHolidayInnSeoulappealstoabroadrangeoftravelersbyofferingabusinesscenter,banquetfacilities,fourrestaurants,afitnesscenter,andagiftshop.JustasinitsearlydaysofexpansionintheUnitedStates,HolidayInnisaccomplishingitsinternationalexpansionthroughamixofwhollyownedfacilitiesandfranchises,dependingontheavailabilityofresourcesandpotentialforprofitineachlocalmarket.AlthoughfranchisingagreementsplacelessriskonHolidayInnWorldwide,theyalsorequirethecompanytogiveupmorecontrolthanitwouldbyopeningwhollyownedfacilities.However,franchisesmustadheretostrictqualitystandardsiftheyintendtooperateunderHolidayInn’sfamousname.Lewisandhisteamalsorecognizethateventhoughtravelershavesimilarexpectationsforthequalityandvaluetheygetinahotel,sometimestheyliketostayinplacesthatdon’tfeellikehotelchains.Therefore,thecompanyhasopenedhotelsinEurope,Australia,andSouthAfricathathaveastyleandcharacteruniquetotheirlocations.Inthisway,HolidayInnisabletotailoritsglobalproducttolocalmarkets.Nonetheless,HolidayInn’spromotionstrategyisdecidedlyglobal,regardlessofwhichmarketsitenters.Lewisbasesthestrategyontwothemes:“Welcome”and“Staywithsomebodyyouknow.”Althoughtheadcopyistranslatedwhennecessary,eventhevisualformatisthesamefromcountrytocountry.Ofcourse,culturaldifferencesmustbeaccommodatedfromtimetotime.Forexample,travelersinBritainpreferredanadthatfocusedonafriendlydoorman,whereasU.S.andGermantravelerspreferredamoresentimentaladshowingabusinesswomanreceivingafaxofadrawingfromherchild.TheinspirationforthisglobalstrategycametoLewis,notsurprisingly,whilehewastraveling.WhenboardingaplaneatDullesAirportoutsideofWashington,D.C.,hepassedagroupofRussianteenagersgatheredaroundaguitarplayersinging“PufftheMagicDragon,”afolksongthatwaspopularintheUnitedStatesafewdecadesago.ThisconnectionbetweencultureshelpedconvinceLewisthattheworld’speoplewerealikeinmanyways,particularlyinthefieldofpleasureandbusinesstravel.ItremainstobeseenhowsuccessfulHolidayInn’sglobalstrategywillbeinthelongrun.Thecompanyisofftoaflyingstart.However,competitorssuchasMarriottandChoiceHotelsaremovingquicklytomakesureHolidayInndoesn’toutpacetheminthehotnewglobalmarkets.Butonethingissure,LewisandtherestofthemanagementteamarenotcontentwithHolidayInnbeingaleadinghotelchainintheUnitedStates.TheywantHolidayInntobetheleaderaroundtheworld.

FacingBusinessChallengesatLeviStraussCanacompanybesociallyresponsibleandsuccessful?LeviStrauss&CompanychairmanandchiefexecutiveofficerBobHasshadsomeproblemsonhishands.Aftertakingoverleadershipoftheworld-famousblue-jeansmakerin1984,Haashadworkedhardtorevitalizethecompany’slong-standingcommitmenttoethicalandsociallyresponsiblebehavior.However,changesinconsumertastesandstiffcompetitionfromrivalclothingmanufacturerswerehittingthecompanyhardonallsides.Inordertoremaincompetitive,Hasswouldhavetomakesometoughdecisionsthatcouldthreatenthecompany’sprinciples.TheoriginalMr.LeviStrausshadasimplebusinessmission—makeandsellqualityworkpantsforSanFrancisco’sgold-rushminers.However,Straussalsodemonstratedastrongsocialconscienceandcommitmenttoemployeesearlyon.DuringtheGreatDepression,workerswerepaidtolayanewfloorinthefactoryuntilbusinesspickedup.Bythe1960s,thecompanyhadbecomeavocaladvocateforracialintegrationandaleaderincorporatediversityprograms.However,bythetimeBobHaas(great-great-grand-nephewofLeviStrauss)tookoverin1984,thecompanyseemedtohavelostitssocialconscience.Levi’shadexpandedaggressivelyintoproductlinesthatwereultimatelyunprofitable.Thecompanywasbloated,profitswerefalling,andmanagementwasmoreconcernedwithnumbersthanwithvalues.Haasbelievedthatpublicshareholdersandstockanalystshadblurredthecompany’svisionbydemandingshort-termprofitgainsoverlong-termgoals.Sowiththehelpoffriendsandfamily,Haasboughtuptheremainingpublicstockandsetouttoturnthecompanyaround.Haasbegantostreamlinethecompany,whichmeanttakingthepainfulstepofcuttingtheworkforcebyathird.Torewardandmotivatethosewhoremained,hedevelopedanaspirationsstatementwithcompanywidegoalsbasedonethics,diversity,environmentalstewardship,teamwork,trust,andopenness.Hebackeduphisstatementbytrainingemployeesinleadership,diversity,andethicaldecisionmakingandalsobylinkingemployeecompensationtoperformanceintheseareas.“Acompany’svalues—whatitstandsfor,whatitspeoplebelievein—arecrucialtoitscompetitivesuccess,”Haasexhorted.“Indeed,valuesdrivethebusiness.”Levi’salsospentlargesumstoreducetheimpactofitsoperationsontheenvironment.Atthesametime,thecompanyshedunprofitableclothingstylesandrefocusedontraditionaljeansandthenewcasual“Dockers”products.Withrevitalizedcompanyvalues,soaringstaffmorale,andrevampedproductlines,LeviStraussenjoyeddouble-digitgainsinsalesrevenuesandprofits.However,the1990sbroughtnewcrises.First,reportsofwidespreadhumanrightsabusesinsomeAsiancountriesledthecompanytoquestiontheethicsofitsoperationsthere.Second,Levi’sdiscoveredthatsomeofitssuppliersinAsiaweremakingLevi’sproductswithchildlabor.Andthird,Levi’sownfailuretospotnewclothingtrends,modernizeitsproductionfacilities,andkeepretailershappyresultedindecliningjeanssales.ThesituationworsenedasnewcompetitorsundercutLevi’spricingbymanufacturingthemajorityoftheirproductsoverseas.(Levi’sstillmadehalfofitsproductsintheUnitedStates).Withdemandshrinking,Levi’sagainfoundithadtoomanyplantsandemployeesintheUnitedStates.Butlarge-scalelayoffscouldunderminethesocialvaluesthathadonceagainbecomesynonymouswiththeLevi’sname.Haashadtofindawaytoensurethecompany’slong-termprofitabilitywhilestandingbyLevi’sprinciples.IfyouwereBobHaas,howwouldyoubalanceyourcompany’seconomicneedswithitsgoalsforethicsandsocialresponsibility?Howwouldyoudealwithsupplierswhodon’tadheretoyourcompany’svalues?Wouldyoutakeastandagainsthumanrightsabuses?Howwouldyouhandletheproblemofexcesscapacityandemployees?MeetingBusinessChallengesatLeviStraussBobHaasknewthatLeviStrauss&Companyfacedanuphillbattle.ThecompanyhaduncoveredviolationsofitsethicalstandardsamongitsAsiansuppliers.Meanwhile,consumertasteshadshiftedwhileLevi’slookedtheotherway,andcompetitorswerebeatingLevi’sonpriceandservice.ButHaasdeterminedtotackletheseproblemsbyrefocusingontheoriginalcompanystrengths:strongcommercialinstinctsandacommitmenttosocialvaluesandtotheworkforce.Intheearly1990s,Haasdevelopedglobalguidelinesaddressingspecificworkplaceissues,suchaslengthofworkperiods,fairwages,respectfortheenvironment,andprohibitionsagainstchildlabor.Toaddmuscletotheseguidelines,thecompanybegansendinginspectorsaroundtheworldonsurprisevisitstolookforviolations.ItwasduringoneoftheseglobalauditsthatHaasdiscoveredsomemanufacturingcontractorsinAsiaemployedunderageworkers,aclearviolationoftheguidelines.However,mostofthechildrenweresignificantcontributorstofamilyincomes,andlosingtheirjobswouldforcethemintomoreinhumanewaysofearningmoney.WantingtoretainLeviStraussastheircustomer,thefactoryownersaskedLevi’smanagementwhattodo.Somecompanieswithstrongvaluesconfrontingthisissuemightsimplyinstructcontractorstodischargeunderageworkers.ButLeviStraussdevisedauniquesolutionwithpositivebenefitsforeveryone.Thecontractorsagreedtosuspendunderageworkersbutstillpaytheirsalariesandbenefits.Foritspart,LeviStrausspaidforschooltuitionandothereducation-relatedexpenseswithnoobligations.Whenthechildrenreachedworkingage,theywereallofferedfull-timejobsinthemanufacturingplants.Everyonegained.Thechildrenwereabletocontinuetheireducationandtheirfamilyincomecontributions,thecontractorskepttheirgoodcustomers,andLeviStraussretaineditsqualitycontractorswhileprotectingcompanyvalues.Levi’sfacedmoreethicalproblemsinChina,wherewidespreadabusesofhumanrightsclasheddirectlywiththecompany’sethicalprinciples.SoHaasdecidedtophaseoutmostofLevi’soperationsinthatcountryoveraperiodofseveralyears.Althoughsomecriticsarguedthatthemovewasjustapublicrelationsstunt,andthatlosingits$50millionannualbusinessinChinawassmallcomparedtothefavorablepublicitythecompanywouldreceive,Levi’smaintainedthatitsonlyobjectivewastoupholditsownethicalstandards.“Ourhopeisthatconditionswillchangeandimprovesothatwecanrevisitourdecisionatsometimeinthefuture,”statedoneLevi’sexecutive.ThecompanycouldturntoitsestablishedethicalguidelinestohandlethechallengesitfacedinAsia,buttheanotherchallengewouldbehardertodealwith.DemandforLevi’sproductswassagging,sothecompanyhadfarmoremanufacturingcapacitythanitneeded.Theproblemhadseveralcauses:(1)Thecompanyhadfailedtonoticecertainfashiontrendsthatcompetitorsrecognizedearly(suchasteenagers’preferencesforextra-baggyjeans),(2)thecompanyhadnoconsistentmarketingmessage(whichresultedinitsbluejeansbeingperceivedas“preppy”orforoldergenerations),(3)thecompany’sslowproduct-deliveryandrestrictivepricingpoliciesangeredmanyretailersandpromptedsometocarrymorecompetingbrands,and(4)manycompetitorsproducedthemajorityoftheirproductsoverseasusingmoreadvancedproductiontechnologyandthusrequiringfeweremployees,whichenabledthemtoundercutLevi’sprices.Toovercomethesethreats,Haasbegananewcampaigntolistentotheneedsofconsumers,cutproductioncosts,improverelationswithretailers,andrefocusitsmarketingmessage.Unfortunately,thesituationrequiredHassonceagaintofacethedifficulttaskoflayingofflargenumbersofworkers.Inearly1997thecompanylaidoff1,000managementandclericalemployeestosave$80millionincosts.NinemonthslatertheannouncementwasmadethatLevi’swouldclose11U.S.plantsandlayoffnearly6,400productionworkers,afullone-thirdofitsU.S.workforce.Thedecisionwasnotaneasyone,butHaasandtherestofLevi’sseniormanagerssawitasnecessaryinordertokeepthecompanyprofitableintheyearsahead.Nevertheless,Haaswasnotabouttoletemployeesjustwalkoutintoanuncertainfuture.SomehadbeenwithLevi’sformanyyears.Sotruetothecompany’shighstandardsforsocialresponsibility,Levi’sspent$200milliononseverancepayandadditionalbenefits.Underthegenerousplan,eachlaid-offworkerreceived8months’paidnoticebeforethejobcutstookeffect;upto3weeksofadditionalpayforeveryyearofservicewiththecompany;a$500bonusuponfindinganewjob;paidhealthbenefitsfor18months;anda$6,000allowanceforrelocating,retraining,orstartinganewbusiness.Inaddition,Levi’sprovidedcareercounselingtoemployeesforupto6months,andtheLeviStraussFoundationgave$8millioningrantstoassistcommunitiesaffectedbytheplantclosings.ConventionalwisdomholdsthatthecostsoftheseprogressivesolutionsplacedLeviStraussatacompetitivedisadvantage.ButBobHaasbelievesthatdecisionsemphasizingcostsalonedonotserveacompany’sbestinterests.AndHaashastakenactiononthisbelieftimeandagain.

FACINGBUSINESSCHALLENGESATAJWRAPSWrappingUpaBusiness-ToGoAliceThomsonandJudithNantookareidenticaltwinsisterswhosepassionforfoodledthemintoagutsydecision:openingachainoffast-foodrestaurants?startingwithone,ofcourse.AJWraps“probablybeganwhenwewereteenagersworkinginfast-foodrestaurants,”saysAlice.“ThenourparentsgaveusatriptoParisasagraduationpresent,”addshertwinJudith.“WefellinlovewithgourmetFrenchcuisine.”TheyhadwantedtostayandstudywiththemastersofFrenchcooking,butitjustwasn’tfeasible.SotheywenthometoIllinoistofinishcollege(Alicemajoredinpsychology,Judithinpremedzoology).ThenJudithmetandmarriedJeffNantook,followinghimtoSanFranciscowhereheworkedasaCPAandtaxadviser.Beforelong,JudithwasbeggingAlicetomovetoSanFranciscoandattendtheCaliforniaCulinaryAcademywithher.Duringtheweektheywerelearningaboutsaucesandsoufflés,andonweekendstheyweretastingandsamplingthecity'sgourmetofferingswhileendlesslydiscussingtherestauranttheyplannedtoopenaftergraduation.Theywerefascinatedbythelocaltrendtowardmultiethniccombinations--andbya"new"eatinginventioncall