Willey International Essay
Professors Paul Bishop and Stephen Sapp revised this case (originally prepared by Professor Robert Higgins) solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
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Management …show more content…
THE DECISION-MAKING PROCESS AT WILEY
Investment capital was becoming increasingly scarce due to the recent correction in the U.S. stock market and repeated projections of a possible contraction in the
U.S. economy during the third and fourth quarters of the year. Consequently,
Esposito felt that Wiley’s head office should take a more active role in offshore resource allocation decisions. The new proposal submission process would encourage foreign divisions to analyse capital projects in a uniform and systematic manner, which would facilitate the comparison of both the foreign and domestic projects competing for funding. The more formalized system would put Chicago in a better position to compare projects across countries and thus to allocate investment funds more profitably across divisions.
Esposito had insisted on this change in policy to formalize and hopefully expedite the approval process for foreign projects. Since the late 1970s, when Wiley began serious expansion outside the United States, many of the company’s best managers had been assigned to foreign divisions, and the contribution of foreign operations to the company’s bottom line had started to increase substantially. In 1995, this