BRETT FLAYTON, CEO of Flayton Electronics, stared intently at a troubling memo on his desk from the firm's headof security. Running his hands through his full head of barely graying hair, he looked not unlike his father did when he established the first Flayton Cameras and Stereos 25years ago.

The security situation had come to Brett's attention just before nine o'clock the previous evening. On his way home from a vendor meeting, he had been settling into an armchair in the airline lounge. He had barely opened Electronics News when his mobile phone rang. It was Laurie Benson, vice president for loss prevention.......