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A fair test of what the essential ingredients of the GSM success were is to remove each of the candidate ingredients and ask the question without that ingredient would GSM still have succeeded The technology was the raw ingredient but there were a number of candidate technologies. The directive reserving the frequency channels for the GSM technology certainly passes this test. It channelled Europe s market along a common technological path. Competition has to be mentioned as an essential success factor. Companies like Mannesman and Orange kept the incumbents on their toes. But the sheer weight of the whole of Europe pulling in the same direction and focussing its technological skills on a common market led project was the most vital success ingredient of them all. If today the CEO of any of the largest US technology companies were to be asked in which area of technology is Europe ahead of the US they would all immediately say mobile radio and then hesitate to think of another example. This was another achievement of the MoU.

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The rst author extracted large portions of this manuscript from his doctoral dissertation, which he conducted under the direction of committee chair Margaret Bull Kovera and committee members Brian Cutler, Ronald Fisher, and Howard Frank at Florida International University. The rst author would like to acknowledge their contributions, for without their helpful input and constructive feedback, that work would not have been possible. Correspondence concerning this chapter should be addressed to the rst or second author at the Department of Psychology, University of Nebraska-Lincoln, 238 Burnett Hall, Lincoln, NE 68588-0308. Electronic mail may be sent via Internet to bmcaulif@unlserve.unl.edu or rnemeth@unlserve.unl.edu

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Renegotiating aggressively reduces supplier base We have adopted a more aggressive posture in renegotiating contracts with our brass-rod raw material suppliers, a purchasing manager at a large producer of flow-control valves explains Unfortunately, we lost a couple of the suppliers, who chose not to reopen the contracts, and instead insisted upon raising prices The supply base for the raw material moved from four to two as negotiations continued over a ten-week period Due to the anticipated volumes, major concessions were given, he explained The result was an annual cost reduction of more than $500,000 Making the suppliers aware We had renegotiated a fair number of our contracts with favorable results, said a purchasing manager at a small producer of metal components We ve achieved cost savings, but we also noticed that by our actions that the suppliers became aware that we, too, are watching prices and the markets very closely.

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Action Taken Open up communications with employees Recognize employees for innovation and initiative Reward employees for improved profitability Use company events to rebuild morale Introduce employee development programs and activities Keep organization streamlined Consolidate physical work environments Collapse job classifications

where ``XYZ'' and ``UVW '' stand for any two Cartesian coordinate systems in threedimensional space. The components of a vector in either coordinate system can be expressed in terms of the vector components along unit vectors parallel to the respective coordinate axes. For example, if one set of coordinate axes is labeled X, Y and Z, and the other set of coordinate axes are labeled U, V , and W, then the same vector v can be expressed in either coordinate frame as v v x 1x v y 1y v z 1z v u 1u v v 1v v w 1w ; where the unit vectors 1x , 1y , and 1z are along the XYZ axes; the scalars vx , vy , and vz are the respective components of v along the XYZ axes; the unit vectors 1u , 1v , and 1w are along the UVW axes; and the scalars vu , vv , and vw are the respective components of v along the UVW axes. The respective components can also be represented in terms of dot products of v with the various unit vectors, v x 1T v v u 1T 1u v v 1T 1v v w 1T 1w ; x x x x v y 1T v v u 1T 1u v v 1T 1v v w 1T 1w ; y y y y v z 1T v v u 1T 1u v v 1T 1v v w 1T 1w ; z z z z C:6 C:7 C:8 C:4 C:5

In many cases the suppliers preemptively lowered prices on their own so we would not have to extend a bid, he stated Tracking the contracts There were two actions that we have taken with regard to contracts, a purchasing director at a midsize pharmaceutical company responded First we began a process to renegotiate all of our existing contracts, and then we established a formal system of tracking and maintaining all contracts and price agreements Reworking contracts with largest suppliers We focused our initial contract renegotiations with our largest suppliers, a materials manager at a large producer of office products commented It resulted in a savings of 8% on purchase price In addition, they also did a complexity reduction to decrease the number of active raw-material part numbers Having the suppliers perform more service.

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