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This paper aims to examine the connection between information system (IS) availability and operational risk losses and the capital requirements. As most businesses today become increasingly dependent on information technology (IT) services for continuous operations, IS availability is becoming more important for most industries. However, the banking sector has particular sector-specific concerns that go beyond the direct and indirect losses resulting from unavailability. According to the first pillar of the Basel II accord, IT outages in the banking sector lead to increased capital requirements and thus create an additional regulatory cost, over and above the direct and indirect costs of an outage.

A Bayesian belief network (BBN) with nodes representing causal factors has been used for identification of the factors with the greatest influence on IS availability, thus helping in investment decisions.

Using the BBN model for making IS availability-related decisions action (e.g. bringing a causal factor up to the best practice level), organization, according to the presented mapping table, would have less operational risk events related to IS availability. This would have direct impact by decreasing losses, related to those events, as well as to decrease the capital requirements, prescribed by the Basel II accord, for covering operational risk losses.

An institution using the proposed framework can use the mapping table to see which measures for improving IS availability will have a direct impact on operational risk events, thus improving operational risk management.

The authors mapped the factors causing unavailability of IS system to the rudimentary IT risk management framework implied by the Basel II regulations and, thus, established an otherwise absent link from the IT availability management to operational risk management according to the Basel II framework.

The Amalgamation of Functions The requirements of the first engine controllers were primarily to satisfy the needs of the engine and, almost as an afterthought, to consider interface with the aircraft and the pilot. The latter resulted in the overwhelming plethora of “essential” ground test‐sets and cockpit instruments that we see today. In a performance and integrity conscious world, beset with ever increasing costs and sometimes decreasing maintenance personnel skills, the engine controller can no longer be considered in isolation from the rest of the system that it serves. The obvious ability of a digital system to self‐check and diagnose itself, its interface with the real world, and to make intelligent decisions based on those tests, has enhanced the case for digital engine control.

THE following list of errata, adjustments and revisions of the actual classification itself, represents all that it has been deemed necessary to note in the way of such alterations, and the changes have been suggested by the experience of users and the discoveries of various librarians. Those who use the scheme should have the changes noted in an interleaved copy of the book, and others may find it desirable to do likewise, pending the appearance of a revised issue which will be published in the near future. Most of the changes are self‐explanatory, and their meaning can be ascertained at once by reference to the S.C. itself. Suggestions and notes of errors will be very gratefully received, as it is only by the vigilance and practical working of many minds that a classification scheme can ever arrive at even reasonable accuracy and completeness.

Corporate diversification, product portfolio analysis, industry structure, international business expansion, beverage industry.

The case is suitable for senior undergraduate and graduate MBA strategic management, international business strategy, and marketing strategy courses.

Thai Beverage Public Company Limited (ThaiBev) was Thailand's largest beverage company and was among Asia's major alcoholic beverage companies. The case situation takes place during the latter part of August 2010, two years after the public announcement of ThaiBev's ambitious intentions to become a comprehensive and integrated beverage company and after having recently re-launched its acquired Wrangyer energy brand, a move signaling ThaiBev's strong commitment to its non-alcoholic beverages. The case describes the beverage industries at the global, regional, and country level and discusses ThaiBev's range of businesses. Marut Buranasetkul, Senior Vice President of Corporate Service and Deputy Managing Director of Thai Beverage Marketing, the sales and marketing arm of ThaiBev, must decide on the direction for ThaiBev to pursue to bring ThaiBev's non-alcoholic beverages to account for at least 10 percent of the company's total revenue. This case presents a number of important strategic topics, particularly in discussing industry structure and competition, as well as diversification issues encountered by a firm that was attempting to create a greater balance between the revenue contributions from its market leading dominant businesses and that of its younger and newer business lines.

Students will: understand the challenges faced by large conglomerates wanting to change their market position; learn to apply different frameworks such as Porter's Five Force Model, portfolio analysis, SWOT and to assess the competitive environment; learn to evaluate a company's current product portfolio and to recommend strategies to improve its allocation of resources; and learn to identify key success factors necessary to compete in a highly competitive industry.

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