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• Working Paper | HBS Working Paper Series | 2012

  When Supply-Chain Disruptions Matter

  William Schmidt and Ananth Raman

  Supply-chain disruptions have a material effect on company value, but this impact can vary considerably. Thus, it is important for managers and investors to recognize the types of disruptions and the organizational factors that lead to the worst outcomes. Prior research remains unsettled as to whether improvements to firm operational efficiency aggravate or alleviate the impact of disruptions. Improved operational efficiency may leave firms more exposed when a disruption occurs, or it may improve firms' agility and allow them to respond more effectively to a disruption. We hypothesize that the impact of improved operational efficiency depends on whether the disruption is due to factors that are internal versus external to the firm and its supply chain. We use a sample of over 500 disruptions collected from company press releases and find empirical evidence that a higher rate of improvement in operating performance aggravates the impact of internal disruptions but not external disruptions. By taking advantage of an exogenous policy shock regarding corporate disclosure rules, we also find that managers show systematic bias in the disruptions they choose to announce, and we control for this effect in our model specifications.

  Keywords: Supply Chain; Operations; Performance Efficiency;

  Citation:

  Schmidt, William, and Ananth Raman. "When Supply-Chain Disruptions Matter." Harvard Business School Working Paper, No. 13–006, July 2012. (Revised January 2013.)

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• Case | HBS Case Collection | 2012 (Revised from original 2012 version)

  Merck: Operating Science-Based Business

  Ananth Raman, Inga Maurer and William Schmidt

  Merck is known for its commitment to investing in basic R&D. Are Merck's long-term investments justifiable when the firm faces extreme earnings pressure?

  Keywords: Science-Based Business; Management; Research and Development; Business and Shareholder Relations; Operations; Pharmaceutical Industry; United States;

  Citation:

  Raman, Ananth, Inga Maurer, and William Schmidt. "Merck: Operating Science-Based Business." Harvard Business School Case 612-082, May 2012. (Revised from original April 2012 version.)

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• Case | HBS Case Collection | 2011

  Baria Planning Solutions, Inc.: Fixing the Sales Process

  Steven C. Wheelwright and William Schmidt

  Baria Planning Solutions (BPS) is a consulting firm that specializes in using spend analysis to help companies identify savings through reduced procurement costs and improved supplier performance. Management is concerned about the disappointing performance of the sales team in attaining new clients and renewing existing ones. The Sales directors feel they do not get the help they need from Sales Support to close new deals, while the Sales Support directors believe they could provide better support by organizing into industry-specific divisions. The consulting industry is becoming increasingly competitive and inefficiencies in the sales process at BPS may interfere with the company's ability to win new business. The recently hired director of North American Sales Support must analyze the current process flow for Sales Support and identify the problems facing the sales organization. The president of the company has asked her to present a proposal for improving the performance of the entire group.

  Keywords: Quantitative analysis; technology; operations management; Product lines; manufacturing; capacity planning; Production Planning; Measurement and Metrics; Production; Management Practices and Processes; Supply Chain Management; Service Operations; Salesforce Management; Planning; Consulting Industry; North and Central America;

  Citation:

  Wheelwright, Steven C., and William Schmidt. "Baria Planning Solutions, Inc.: Fixing the Sales Process." Harvard Business School Brief Case 114-568, May 2011.

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