Discuss the Challenges Facing the Managers of Emerging Country Multinationals as They Expand and Extend Their Strategic by fse11171

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									CORPORATE STRATEGY 3E
LYNCH
Pearson Education November 2002


Case Title             Source,       Geographical            Case Decision Issue
                       Number,       and Industry
                       Length,       Setting,
                       Teaching      Company Size,
                       Note          Timeframe
Chapter 1
Ryanair                J&S, p870
Dogfight over          HBSP          Ireland; airlines; 10   In April 1986, the Ryan brothers
Europe: Ryanair        # 9-700-115   employees; 1986         announce that their fledging Irish
(A), (B), (C)          8p – (A)                              airline Ryanair will soon commence
                       HBSP                                  service between Dublin and London.
                       # 9-700-116                           For the first time, Ryanair will face
                       4p – (B)                              formidable competitors such as Aer
                       HBSP                                  Lingus and British Airways on a major
                       # 9-700-117                           route. Students are asked to assess
                       18p – (C)                             Ryanair's entry and anticipate the
                                                             response of incumbent carriers.
                                                             Teaching Purpose: Allows students to
                                                             hone skills in competitor analysis and
                                                             in the anticipation of competitive
                                                             dynamics. Cost and revenue figures
                                                             permit students to examine the
                                                             economics of retaliatory pricing in a
                                                             business with high fixed costs and
                                                             low marginal costs.
The U.S. Airline       HBSP          United States;          Describes the economic logic leading
Industry in 1995       # 9-795-113   airlines; 1995          to the deregulation of the American
                       22p                                   airline industry in 1978, and
                                                             subsequent competitive
                                                             developments. The roles of
                                                             computerized reservation systems,
                                                             airport hubs, route strategies, and
                                                             fleet management are raised as
                                                             unanticipated tactical responses. The
                                                             decision focus of the case emphasizes
                                                             the prospect of regulation. Teaching
                                                             Purpose: Taught early in an advanced
                                                             course in strategy, this case is
                                                             designed to illustrate the connections
                                                             between industry evolution and the
                                                             opportunities available to firms as
                                                             they seek to develop competitive
                                                             advantage. A rewritten version of an
                                                             earlier case.
Acer, Inc.: Taiwan's   HBSP          Taiwan and Global;      Describes the strategic,
Rampaging Dragon       # 9-399-010   computers; $3.2         organizational, and management
                       20p           billion revenues;       changes that led Acer from its 1976
                                     5,800 employees;        start-up to become the world's
                                     1976-1995               second-largest computer
                                                             manufacturer. Outlines the birth of
                                                             the company, the painful
                                                             "professionalization" of its
                                                             management, the plunge into losses,
                                                             and the transformation under founder
                                                             Stan Shih's radical "fast food"
                                                             business concept and his "client
                                                             server" organization model, which are
                                                             put to the test when a young product
                                                             manager in Acer America develops a
                                                             radically new multimedia home PC
                                                             with global potential. Shih must
                                                             decide whether to give an
                                                             inexperienced manager in a loss-
                                                              generating subsidiary the green light.
                                                              Teaching Purpose: To explore the
                                                              links between global strategy and
                                                              structure, to evaluate leadership of
                                                              transformational change, and to
                                                              examine development of global
                                                              competitive advantage.
Chapter 2
The General Mills     HBSP             Minneapolis, MN;       Examines the General Mills Board of
Board and Strategic   # 9-491-117      consumer food and      Directors' role in the General Mills
Planning              11p              restaurants; Fortune   joint venture with Nestle S.A. to sell
                                       500; $6.4 billion      cereals outside of North America. It
                                       1990 sales; 1989       raises the more general question of
                                                              the appropriate role for the board of
                                                              directors in strategy formulation.
Ready-to-Eat          HBSP             United States;         Ready-to-eat breakfast cereal has
Breakfast Cereal      # 9-795-191      breakfast cereal; $9   historically been a stable and highly
Industry in 1994      17p – (A)        billion revenues;      profitable industry, dominated by the
(A)                   HBSP             1994                   Big Three of Kellogg, General Mills,
                      #9-796-122                              and Kraft General Foods (Post). In
                      4p – (B)                                1994, private label cereals are
                      updates A case                          making significant market share
                                                              gains, and promotional competition
                                                              among the manufacturers of branded
                                                              cereals is heating up. What steps
                                                              should one of the Big Three take to
                                                              prevent these trends from
                                                              undermining industry profitability,
                                                              especially in light of likely competitor
                                                              reactions?
Ready-to-Eat          HBSP             United States;         Supplements Ready-to-Eat Breakfast
Breakfast Cereal      Supplement       breakfast cereal; $9   Cereal Industry in 1994 (A).
Industry: Philip      # 9-797-104      billion revenues;
Morris                2p               1994

Ready-to-Eat          HBSP             United States;         Supplements Ready-to-Eat Breakfast
Breakfast Cereal      Supplement       breakfast cereal; $9   Cereal Industry in 1994 (A).
Industry: Quaker      # 9-797-103      billion revenues;
Oats                  2p               1994

Chapter 3
Restructuring the     HBSP              United States;        Focuses on the competitive decline of
U.S. Steel Industry   # 9-203-042       steel; 1970-          the integrated steel producers in the
                      23p               2002                  United States from 1970 to 2002.
                                                              Issues include: Should the U.S.
                                                              government impose tariffs to try to
                                                              protect the industry? What should
                                                              labor unions do, if anything, to
                                                              protect jobs and wage rates of
                                                              employees in failing companies?
International Steel   HBSP             Ohio,     Indiana,     Profiles veteran investor Wilbur L.
Group                 # 9-803-162      Illinois;    steel     Ross, Jr.'s plan to turn around the
                      25p              production; $100       aging steel assets of LTV, formerly
                                       million revenues;      America's second largest integrated
                                       2,500 employees;       steel producer. Purchasing several
                                       2002                   key assets from LTV under Section
                                                              363 of the Bankruptcy Code, Ross is
                                                              able to acquire the assets free of any
                                                              pension or healthcare liabilities to
                                                              retirees. Examines the challenges
                                                              Ross faces as he tries to make the
                                                              reborn steel company into a global
                                                              player as one of the world's lowest
                                                              cost producers. To accomplish this,
                                                              he must negotiate a new agreement
                                                              with the steelworkers' union,
                                                              transform the old LTV culture, and
                                                              secure long-term contracts with the
                                                              right customers who could fulfil ISG's
                                                              capacity requirements.
De Passe              HBSP             Hollywood,     CA;     After 24 years at Motown Industries,
Entertainment &       # 9-494-013       entertainment;       Hollywood executive Suzanne de
Creative Partners     20p               1991-1993            Passe has decided to go out on her
                                                             own to start two new businesses. The
                                                             case describes de Passe's career from
                                                             her beginning as Berry Gordy's
                                                             assistant at Motown Records to her
                                                             presidency of Gordy/de Passe
                                                             Productions. Upon Gordy's departure
                                                             from the production business, de
                                                             Passe decides to become an
                                                             entrepreneur, forming both an
                                                             independent production company and
                                                             an artist management company. In
                                                             the management venture, de Passe
                                                             has a business partner, and in the
                                                             production company she hires a
                                                             president and COO. Focuses on her
                                                             decision to become an entrepreneur
                                                             and on the working partnerships she
                                                             has developed with the executives of
                                                             the two companies.
BMWFilms              HBSP              North    America;    Jim McDowell, VP of marketing at
                      # 9-502-046       automobiles;         BMW North America, is debating how
                      26p               $32,693    million   to follow up the success of his latest
                                        revenues; 97,725     marketing campaign, "BMWFilms."
                                        employees; 2001      This campaign features five short
                                                             films for the Internet, directed by
                                                             some of the hottest young directors
                                                             in Hollywood. By all indications, the
                                                             nontraditional campaign has been a
                                                             huge success. Now the question is,
                                                             what to do for an encore? Teaching
                                                             Purpose: To explore the consumer
                                                             behavior dynamics associated with
                                                             nontraditional marketing techniques.
                                                             Also allows for a discussion of the link
                                                             between deep consumer
                                                             understanding and the design of a
                                                             new advertising genre.
Chapter 4
Dreyer’s Grand Ice-   Stanford           United States;      In June 1998, the senior
Cream (A)             University         ice cream, dairy,   management team at Dreyer's Grand
                      #OB35A             consumer            Ice Cream faced a number of internal
                      25p                products; $1.16     and external difficulties that were
                                         billion revenues;   some of the most challenging
                                         4,000               problems the company ever faced.
                                         employees;          Problems included profitability issues,
                                         1998                record-high butterfat prices,
                                                             aggressive discounting by
                                                             competitors, higher margin better-
                                                             for-you segment collapse, severance
                                                             of Ben & Jerry's distribution contract,
                                                             and management health issues.
                                                             Given a mandatory and necessary
                                                             financial restructuring of the
                                                             company, the senior management
                                                             team faced some tough employee
                                                             issues and needed to make very
                                                             significant decisions to overcome
                                                             their difficult times. Teaching
                                                             Purpose: To teach students how to
                                                             manage a difficult organizational
                                                             politics issue.
Amazon.com –          J&S, p674
From Start Up to
the New Millenium
European Ice-         Lynch, 3rd
Cream                 edition
                      Lecturers Guide
What Strategy Now     Lynch, 3rd
for Mars?             edition
                    Lecturers Guide
Chapter 5
Merloni             HBSP               Italy; domestic    Merloni Elettrodomestici is a leading
Elettrodomestici    # 9-690-003        appliance; mid-    Italian manufacturer of domestic
SpA: The Transit    19p                size;      $300    appliances. In 1986, an exposition for
Point Experiment                       million   sales;   Merloni customers is scheduled at its
                                       1986               Milano regional warehouse. During
                                                          the two-month period preceding the
                                                          event, when the warehouse must be
                                                          free of inventory, the company
                                                          conducts a "transit point" experiment.
                                                          Each day, a truckload of products
                                                          from the company's central
                                                          warehouse is sent to Milano, where it
                                                          is immediately transferred to small
                                                          trucks for local delivery. At the
                                                          conclusion of the experiment, the
                                                          company is considering the
                                                          replacement of its 17 regional
                                                          warehouses with transit points.
                                                          Students are asked to evaluate this
                                                          proposal and recommend a
                                                          configuration for Merloni's distribution
                                                          network. Issues to be considered in
                                                          the analysis of the case include the
                                                          impact of different network
                                                          configurations on customer service
                                                          and on inventory, labor, operating,
                                                          and transport costs.
Merloni             HBSP              Europe;             Merloni Elettrodomestici was founded
Elettrodomestici:   # 9-303-062       major               in 1975. This case traces the
The New Century     21p               appliances;         evolution of the company's strategy,
Begins                                $2     billion      organization, and management as it
                                      revenues;           becomes the #3 player in Europe
                                      1975-2002           (the #1 in Eastern Europe). Issues
                                                          involve questions of geographic
                                                          expansion, resource allocation, and
                                                          organization. Teaching Purpose:
                                                          Challenges of general management,
                                                          strategy, students, and people.
Merloni             HBSP              Europe;             In 1995, the Merloni management is
Elettrodomestici    # 9-300-118       major               faced with profitless prosperity. A rise
SpA: Building for   20p               appliances;         in raw material prices in the face of
Profit                                $2     billion      ferocious competition in their markets
                                      revenues;           hurts margins. At the same time, the
                                      1975-2002           company is trying to expand
                                                          geographically in order to become
                                                          Pan-European and to consolidate the
                                                          position of three brands. Teaching
                                                          Purpose: To develop in considerable
                                                          detail the management problems
                                                          associated with internationalization in
                                                          Europe: heterogeneous markets
                                                          requiring differentiated approaches to
                                                          product and marketing. This is made
                                                          all the more difficult by multiple
                                                          brands.
Merloni             HBSP              Europe;             In 2001 a young (35) new CEO has to
Elettrodomestici    # 9-301-112       major               develop a strategy to move his
SpA: Building for   16p               appliances;         company beyond the hyper-
the New Century                       $2     billion      competitive conditions of Western
                                      revenues;           Europe. A major acquisition in Russia
                                      1975-2002           and a new web-based service
                                                          business provide interesting new
                                                          directions. This case traces the
                                                          development of strategy and
                                                          organization at this European
                                                          multinational. Teaching Purpose: To
                                                          examine the challenges of building
                                                          and managing a multinational over
                                                          nearly three decades and to consider
                                                     the entrepreneurial climate of
                                                     strategic management.
Merloni Group        HBSP          France,           The general manager of the recently-
                     # 9-383-152   Italy; major      established French subsidiary of an
                     18p           appliances;       Italian appliance company is in
                                   mid-size;         conflict with headquarters about
                                   $350 million      unexpectedly poor financial
                                   sales; 1982       performance. Headquarters
                                                     management believes it should be
                                                     able to exert more control over the
                                                     subsidiary's strategic decision. The
                                                     subsidiary general manager feels the
                                                     Italians are already intervening too
                                                     much. A change in organization
                                                     structure is being debated.
Airbus A3XX:         HBSP          France;           In July 2000, Airbus Industrie's
Developing the       # 9-201-028   aerospace;        supervisory board is on the verge of
World’s Largest      20p           2000              approving a $13 billion investment for
Commercial Jet (A)                                   the development of a new super
                                                     jumbo jet known as the A3XX that
                                                     would seat from 550 to 1,000
                                                     passengers. Having secured
                                                     approximately 20 orders for the new
                                                     jet, the board must decide whether
                                                     there is sufficient long-term demand
                                                     for the A3XX to justify the
                                                     investment. At the time, Airbus was
                                                     predicting that the market for very
                                                     large aircraft (VLA), those seating
                                                     more than 500 passengers, would
                                                     exceed 1,500 aircraft over the next
                                                     20 years and would generate sales in
                                                     excess of $350 billion. According to
                                                     Airbus, it needed to sell 250 aircraft
                                                     to break even, and could sell as many
                                                     as 750 aircraft over the next 20
                                                     years. This case explores the two sets
                                                     of forecasts, and asks students
                                                     whether they would proceed with the
                                                     launch given the size of the
                                                     investment and the uncertainty in
                                                     long-term demand. Teaching
                                                     Purpose: Illustrates the basic
                                                     economics of large projects and the
                                                     complexity in estimating even top-
                                                     line demand for products with useful
                                                     lives of up to 50 years. Also
                                                     illustrates the role of governments in
                                                     large projects, both as investors and
                                                     as customers. Finally it explores the
                                                     competitive dynamics between a
                                                     monopolistic and a potential entrant
                                                     in which entry costs exceed $10
                                                     billion.
Airbus A3XX:         HBSP          France;           Supplements the (A) case.
Developing the       # 9-388-028   aerospace;
World’s Largest      2p            2000
Commercial Jet (B)
Chapter 6
The Pharmaceutical   HBSP          Global;           Provides a broad overview of the
Industry:            # 9-703-489   pharmaceutical;   numerous internal and external
Challenges in the    32p           $400 billion      forces that were driving change in the
New Century                        revenues; 1990-   global pharmaceutical industry in
                                   2003              2003. These forces--including
                                                     downward price pressures, political
                                                     and social pressures, increased
                                                     development costs, new technologies,
                                                     new and different competitors,
                                                     consolidation, and threats to its basic
                                                     business models--were changing the
                                                     way drugs were discovered,
                                                       developed, manufactured, tested,
                                                       regulated, marketed, sold, and
                                                       purchased. Teaching Purpose: To
                                                       provide students an opportunity to
                                                       conduct an environmental
                                                       scan/industry analysis of a complex
                                                       global industry. Allows for the
                                                       development of scenarios for industry
                                                       evolution. A rewritten version of an
                                                       earlier case.
Immusol & Novartis   HBSP          San Diego, CA;      Should Immusol strive to become a
                     # 9-303-038   biotechnology; 90   fully integrated pharmaceutical
                     31p           employees; 2001     company? How should small Immusol
                                                       structure a deal for its novel
                                                       technology with the giant Novartis?
                                                       Teaching Purpose: To look at the
                                                       nature of licensing deals between
                                                       large resource-rich firms and small
                                                       technology-rich ones.
Genzyme’s Gaucher    HBSP          United              In Egypt, Genzyme's humanitarian
Initiative: Global   # 9-303-048   States/Egypt;       commitment to treat all sufferers of
Risk and             23p           biotech; $800       the rare Gaucher disease worldwide
Responsibility                     million revenues;   first confronts its commercial
                                   1981-2001           imperative to recoup the huge
                                                       investment required to bring the drug
                                                       Cerezyme to market. Here Tomye
                                                       Tierney must decide how to balance
                                                       the demands of the sales
                                                       organization that faces saturating
                                                       developed markets, but major growth
                                                       opportunities in developing
                                                       economies. They believe that as long
                                                       as the Gaucher Initiative--Genzyme's
                                                       partnership with Project Hope--is
                                                       providing free Cerezyme, they will be
                                                       unable to convince the Egyptian
                                                       government to authorize
                                                       reimbursement, which can run from
                                                       $200,000 to $300,000 per patient
                                                       annually. CEO Henri Termeer believes
                                                       Genzyme can hold firm to both the
                                                       humanitarian commitment and its
                                                       strong patient-focused commercial
                                                       objectives. But it is Tierney who is on
                                                       the front line and negotiates the
                                                       delicate agreement between
                                                       Genzyme sales, Project Hope, and
                                                       Egyptian authorities. Teaching
                                                       Purpose: To focus on international
                                                       expansion and new market entry in
                                                       the context of the tension between
                                                       corporate responsibility and
                                                       commercial viability.
Marketing            HBSP          United States;      Describes the marketing of Prozac
Antidepressants:     # 9-502-055   pharmaceuticals;    and Paxil, two of the best-selling
Prozac and Paxil     27p           2000                mental health drugs in history. Set in
                                                       2001, several months before the
                                                       expiration of Prozac's patent, Eli Lilly
                                                       (Prozac's manufacturer) and
                                                       GlaxoSmithKline (Paxil's
                                                       manufacturer) must decide how to
                                                       respond to the introduction of generic
                                                       Prozac into the market. Teaching
                                                       Purpose: To explore the positioning
                                                       and counter-positioning strategies
                                                       available to companies who produce
                                                       similar products. In addition, provides
                                                       a vehicle for discussing how to
                                                       sustain value in the face of low-priced
                                                       competition. Finally, allows for a
                                                       discussion of the ethical issues
                                                            surrounding the marketing of
                                                            prescription pharmaceuticals.
India’s Intellectual   HBSP          India;                 In 1970, the Indian government
Property Rights        # 9-702-039   pharmaceuticals;       significantly revised its patent law,
Regime in the          23p           1970                   Patents and Design Act of 1911. The
Pharm Industry                                              1911 act was enacted when India
                                                            was a colony of Great Britain, and it
                                                            was controversial because it led to
                                                            the total dominance of India's
                                                            pharmaceutical market by
                                                            multinational corporations. The 1970
                                                            act substantially reduced both the
                                                            scope and the extent of patent
                                                            protection and some credited the act
                                                            as giving rise to India's own
                                                            indigenous pharmaceutical industry.
                                                            In 1994, the Indian government
                                                            committed itself to conforming its
                                                            intellectual property rights regime to
                                                            the requirements of the WTO.
                                                            Domestic political opposition was
                                                            fierce toward any attempts to move
                                                            away from the 1970 act. Teaching
                                                            Purpose: To teach concepts on import
                                                            substitution and intellectual property
                                                            rights.
General Electric       HBSP          Global; medical        Discusses one of General Electric's
Medical Systems –      # 9-702-428   products; $8 billion   flagship divisions--the world's leading
2002                   25p           revenues; 2002         provider of medical diagnostic
                                                            imaging equipment. Provides an
                                                            opportunity to examine a
                                                            multinational confronting massive
                                                            technological and demographic
                                                            changes around the world. Genomics
                                                            has created a global opportunity by
                                                            making personalized medicine seem
                                                            possible--medical intervention that
                                                            caters to the genetic makeup of the
                                                            individual and emphasizes prevention
                                                            more than cure. Yet, the pursuit of
                                                            this opportunity requires fundamental
                                                            changes in the business model at a
                                                            time when the model is being
                                                            stressed by the idiosyncratic needs of
                                                            catering to the large Chinese market
                                                            and adapting to the needs of an
                                                            aging population around the world.
                                                            Demonstrates how multinationals can
                                                            create value both by replicating their
                                                            business models worldwide and by
                                                            adroitly splitting the value chain
                                                            across national boundaries.
Chapter 7
The Global Oil         Stanford      Energy resources,      The oil industry, one of the first
Industry               University    Global business,       international businesses, exerted a
                       # IB15        International          tremendous influence on almost all
                                     business, Mining,      aspects of business, economics, and
                                     Petroleum,             geopolitics throughout the 20th
                                     Petroleum industry.    century. Their products revolutionized
                                                            daily life. And the struggles to control
                                                            and assure access to oil supplies and
                                                            markets were a major element of
                                                            international conflict throughout the
                                                            century.
Journey to             HBSP          Russia; energy;        Surveys the operations of Royal
Sakhalin: Royal        # 9-704-040   $236 billion           Dutch/Shell in Russia, including a
Dutch/Shell in         27p           revenues; 90,000       strategic alliance with Gazprom, the
Russia                               employees; 1991-       country's natural gas monopoly, the
                                     2003                   development of the Salym oil fields in
                                                            Siberia, and a small retail refilling
                                                            network in St. Petersburg. Focuses on
                                                            the Sakhalin II project. Sakhalin II is
                                                            the reason for the existence of the
                                                            Sakhalin Energy Investment Co.
                                                            (SEIC), owned by Royal Dutch/Shell
                                                            (55%), Mitsui (25%), and Mitsubishi
                                                            (20%). Worth approximately $10
                                                            billion, the second phase of Sakhalin
                                                            II would be the single largest
                                                            investment decision in the history of
                                                            Royal Dutch/Shell, as well as the
                                                            single largest foreign direct
                                                            investment in Russia's history.
                                                            Sakhalin II would also be the largest
                                                            integrated oil and gas project in the
                                                            world. The project faces a number of
                                                            challenges, however. A production
                                                            sharing agreement (PSA)--a
                                                            commercial contract between the
                                                            foreign investor and a host
                                                            government that replaces the
                                                            country's tax and license regimes for
                                                            the life of the project--govern
                                                            Sakhalin II. Although Sakhalin II's
                                                            PSA enjoys the status of Russian law,
                                                            other Russian laws conflict with the
                                                            terms of the PSA. PSAs have also
                                                            become controversial within Russia.
                                                            After several years of waiting in vain
                                                            for "legal stabilization," Shell and
                                                            SEIC executives must decide whether
                                                            the project should go forward.
                                                            Teaching Purpose: To consider the
                                                            challenges of foreign direct
                                                            investment in Russia and managing
                                                            in the context of weak institutions.
Sunk Costs: The        HBSP          Europe; oil and gas;   Explores the conflict between Shell
Plan to Dump the       # 9-903-010   $150 billion           Oil and Greenpeace over Shell's plans
Brent Spar (A)         14p           revenues; 90,000       to sink the aging Brent Spar oil
                                     employees; 1995        platform in the North Atlantic. Details
                                                            the tactics Greenpeace employed and
                                                            examines Shell's responses. Teaching
                                                            Purpose: Explores issues in crisis
                                                            organization and coalition building.
BP and the             HBSP          Global; oil and gas;   Examines the economics of the oil
Consolidation of the   # 9-702-012   $160 billion           and gas industry with a focus on
Oil Industry –         37p           revenues; 107,000      1998 through 2001. Discusses the
1998-2002                            employees; 1998-       rationale behind using a growth in
                                     2001                   scale as a means to increase
                                                            profitability and to gain competitive
                                                            advantage. Also examines the classic
                                                            strategic implications of vertical
                                                            integration and questions the
                                                            necessity of remaining vertically
                                                            integrated in today's markets. During
                                                            1998-2001, the industry structure
                                                            changed dramatically with the
                                                            occurrence of a wave of merger
                                                            activity. Set at the end of 2001, as
                                                            BP's chief executive, Lord John
                                                            Browne, ponders the company's
                                                            future. BP set off the merger activity
                                                            in 1998 with its combination with
                                                            Amoco. Other major oil concerns
                                                            quickly followed suit. Several large
                                                            and dominant firms, termed
                                                            "supermajors," separated themselves
                                                            from the rest of the competitors.
                                                            Although a large number of
                                                            independent specialty firms also
                                                            exist, the supermajor firms no longer
                                                            believe them to be direct
                                                         competitors. After the case
                                                         discussion, students should be able
                                                         to: 1) understand the basic
                                                         economics of the oil and gas industry,
                                                         2) analyze the rationale behind
                                                         vertical integration strategies, 3)
                                                         analyze why the industry
                                                         restructuring occurred, and 4)
                                                         understand the economies of scale of
                                                         the supermajor firms as well as the
                                                         potential problems their immense
                                                         size could create. Teaching Purpose:
                                                         Analyze vertical integration,
                                                         horizontal integration, economies of
                                                         scale, potential limits to growth, and
                                                         competition in a commodity industry.
British Petroleum    Stanford      Great Britain; oil    In 1992-93, British Petroleum plc,
(A1): Organising     University    company; 1992-        Britain's fourth-largest of the great
for Performance at   # IB16        1993                  international integrated oil
BPX                  17p                                 companies, faced a major crisis. The
                                                         company was experiencing its first
                                                         losses in its eighty-year history, while
                                                         morale was battered by downsizing
                                                         and organizational upheaval.
Downfall at Xerox    J&S, p1056
Xerox: Outsourcing   HBSP          United States;        In order to increase revenues,
Global Information   # 9-195-158   copiers; Fortune      develop new technologies, and
Technology           32p           500; 1993             manage information technology more
Resources                                                efficiently, Xerox decided to sign a
                                                         10-year, $3.2 billion contract with
                                                         Electronic Data Systems (EDS). This
                                                         case describes the events that
                                                         preceded Xerox's decision to
                                                         outsource information technology.
Xerox and Fuji       HBSP          Japan, United         Describes the growth and
Xerox                # 9-391-156   States; electronics   development of Fuji Xerox, Xerox's
                     29p           (copiers); Fortune    joint venture in Japan, and the
                                   500; $18 billion      evolving relationship between Fuji
                                   revenues; 1962-       Xerox and Xerox. Focuses on the
                                   1990                  technological development of Fuji
                                                         Xerox, and on the contributions that
                                                         Fuji Xerox has made to Xerox's
                                                         competitive position worldwide.
                                                         Presents a number of options for
                                                         modifying the relationship between
                                                         Xerox and Fuji Xerox in the future,
                                                         when the two firms will face
                                                         increasingly serious competition from
                                                         global competitors. Fuji Xerox is a $4
                                                         billion company and arguably one of
                                                         the most successful joint ventures
                                                         ever between an American and
                                                         Japanese firm. In some ways the
                                                         evolution of Fuji Xerox has been a
                                                         microcosm of the broader United
                                                         States-Japan relationship.
Xerox and Fuji       HBSP          Japan, United         Describes the growth and
Xerox: Update        # 9-703-009   States; electronics   development of Fuji Xerox, Xerox's
2002                 29p           (copiers); Fortune    joint venture in Japan, and the
                                   500; $18 billion      evolving relationship between Fuji
                                   revenues; 1962-       Xerox and Xerox. Focuses on the
                                   1990                  technological development of Fuji
                                                         Xerox, and on the contributions that
                                                         Fuji Xerox has made to Xerox's
                                                         competitive position worldwide.
                                                         Presents a number of options for
                                                         modifying the relationship between
                                                         Xerox and Fuji Xerox in the future,
                                                         when the two firms will face
                                                         increasingly serious competition from
                                                         global competitors. Fuji Xerox is a $4
                                                           billion company and arguably one of
                                                           the most successful joint ventures
                                                           ever between an American and
                                                           Japanese firm. In some ways the
                                                           evolution of Fuji Xerox has been a
                                                           microcosm of the broader United
                                                           States-Japan relationship.
Chapter 8
Corona Beer (A)      HBSP           Mexico, United         In early June 1997, the CEO and vice
                     # 9-502-023    States; beer; 1997     chairman of Grupo Modelo were
                     21p                                   reviewing the performance of Corona
                                                           beer in the U.S. market. Despite a
                                                           much higher sales volume growth
                                                           rate, Corona still trailed Heineken,
                                                           the #1 imported beer brand in the
                                                           U.S. market. Could Corona overtake
                                                           Heineken and, if so, what marketing
                                                           strategy changes needed to be
                                                           made? Includes color exhibits.
Corona Beer (B)      HBSP           Mexico, United         Supplements the (A) case.
                     # 9-502-037    States; beer; 1997
                     2p
South African        J&S, p897
Breweries
The Brewery Group,   J&S, p950
Denmark
Kirin Brewery Co.    IMD061 (IMD)   Japan; brewing;        In response to being challenged in its
Ltd: The Dry Beer    23p            $1,300 billion         home market by a smaller rival, Kirin
War                                 Japanese yen           Brewery, Japan's leading brewer,
                                    revenue; 1988          rejuvenated its lager beer and
                                                           launched three new products,
                                                           including a dry beer to compete with
                                                           Asahi Breweries' enormously
                                                           successful Super Dry. Shortly after
                                                           launch of Kirin Dry, two other major
                                                           Japanese brewers also introduced dry
                                                           beers. Kirin executives must now
                                                           develop a strategy for the 1989 beer
                                                           season.
Kirin Brewery Co.    IMD076 (IMD)   Japan; beer; $31       Sales of Asahi Brewery's Super Dry
Ltd: (B) Revised     12p            billion Japanese yen   are booming. Kirin Brewery's share of
                                    revenues; 1978-        market is declining rapidly. Mr. Tani
                                    1989                   was recently appointed as new
                                                           general manager of Kirin's Beer
                                                           Division, with the mission to respond
                                                           to Asahi's challenge. Other
                                                           competitors have now joined the beer
                                                           war between Kirin and Asahi. Kirin
                                                           must now fight on several fronts. Mr.
                                                           Tani has to decide on an appropriate
                                                           strategy for Kirin. This is a revised
                                                           version of an earlier case.
South African        Stanford       Tanzania; beer         In January 1994, Danie Niemandt,
Breweries in         University     brewing and            general manager for South African
Tanzania             # IB22         distribution; $150     Breweries operations in Tanzania,
                     24p            million revenues;      must determine how his company
                                    2,000 employees;       should respond to the entry of a new
                                    1994-1998              competitor in its market--East African
                                                           Breweries. South African Breweries
                                                           has executed a successful turnaround
                                                           of the brewery operations in
                                                           Tanzania. East African Breweries is
                                                           backed by Guinness plc, one of the
                                                           world's largest beer brewers, and
                                                           Guinness has committed itself to
                                                           investing the resources necessary to
                                                           build a leading presence in the
                                                           Tanzanian market. The challenge
                                                           facing South African Breweries in
                                                           Tanzania illustrates the challenge the
                                                           company faces in many of its
                                                       international markets. The company
                                                       has built its international strategy
                                                       around its operational expertise, but
                                                       must now adjust to the entrance of
                                                       well-funded global beer competitors
                                                       in several of its international
                                                       markets. Teaching Purpose: Intended
                                                       for use in a course on international
                                                       business and strategy. Highlights how
                                                       a company applies the skills and
                                                       knowledge developed in its domestic
                                                       market to form an effective
                                                       international strategy, the challenges
                                                       of operating in an emerging market,
                                                       and the competitive shifts facing a
                                                       company in an emerging market as
                                                       the market opportunity attracts
                                                       outside competitors.
Chapter 9
Matching Dell      HBSP           Global; personal     After years of success with its
                   # 9-799-158    computers; Fortune   vaunted "Direct Model" for computer
                   31p            500; $19 billion     manufacturing, marketing, and
                                  revenues; 1998       distribution, Dell Computer Corp.
                                                       faces efforts by competitors to match
                                                       its strategy. This case describes the
                                                       evolution of the personal computer
                                                       industry, Dell's strategy, and efforts
                                                       by Compaq, IBM, Hewlett-Packard,
                                                       and Gateway 2000 to capture the
                                                       benefits of Dell's approach. Students
                                                       are called on to formulate strategic
                                                       plans of action for Dell and its various
                                                       rivals. Teaching Purpose: Designed to
                                                       be taught in any of several places in
                                                       an MBA course on competitive
                                                       strategy. Permits an especially
                                                       detailed examination of imitation;
                                                       illustrates how fit among activities
                                                       and incompatibilities between
                                                       competitive positions can pose
                                                       particularly high barriers to imitation.
                                                       Can also be employed to illustrate
                                                       competitor analysis, the evolution of
                                                       industry structure, and relative cost
                                                       analysis.
Dell Computer      Richard Ivey   Malaysia;            Dell Computer Corp. is one of the
Corp: Investment   School of      computers; large;    largest computer manufacturers in
in Malaysia as a   Business       2001                 the world. The company's
Global Strategic   # 903M19                            international business strategy has
Tool                                                   supported its global position and
                                                       performance facing the Asian
                                                       economic crisis. Its investment in
                                                       Malaysia reduced its foreign
                                                       exchange exposure and supported its
                                                       low-cost advantage. Now Dell must
                                                       decide whether to expand its
                                                       commitment in Malaysia and/or other
                                                       locations, such as China.
Toyota Motor       HBSP           Georgetown, KY;      On May 1, 1992, Doug Friesen,
Manufacturing      # 9-693-019    autos; large; $1-5   manager of assembly for Toyota's
U.S.A., Inc        22p            billion revenues;    Georgetown, Kentucky, plant, faces a
                                  4,000 employees;     problem with the seats installed in
                                  1992                 the plant's sole product--Camrys. A
                                                       growing number of cars are sitting
                                                       off-line with defective seats or are
                                                       missing them entirely. This situation
                                                       is one of several causes of recent
                                                       overtime, yet neither the reason for
                                                       the problem nor a solution to it is
                                                       readily apparent. As the plant is an
                                                       exemplar of Toyota's famed
                                                        production system (TPS), Friesen is
                                                        determined that, if possible, the
                                                        situation will be resolved using TPS
                                                        principles and tools. Students are
                                                        asked to suggest what action(s)
                                                        Friesen should take and to analyze
                                                        whether Georgetown's current
                                                        handling of the seat problem fits
                                                        within the TPS philosophy. Teaching
                                                        Purpose: 1) Provide comprehensive
                                                        knowledge on Toyota Production
                                                        System, 2) Exercise advanced root
                                                        cause analysis, and 3) Demonstrate
                                                        the totality of manufacturing,
                                                        especially the link between
                                                        production control and quality
                                                        control..
Jack Smith (A):      HBSP          Georgetown, KY;      On May 1, 1992, Doug Friesen,
Career Launch at     # 9-604-057   autos; large; $1-5   manager of assembly for Toyota's
Toyota (B) and (C)   9p – (A)      billion revenues;    Georgetown, Kentucky, plant, faces a
                     #9-604-059    4,000 employees;     problem with the seats installed in
                                   1992                 the plant's sole product--Camrys. A
                                                        growing number of cars are sitting
                                                        off-line with defective seats or are
                                                        missing them entirely. This situation
                                                        is one of several causes of recent
                                                        overtime, yet neither the reason for
                                                        the problem nor a solution to it is
                                                        readily apparent. As the plant is an
                                                        exemplar of Toyota's famed
                                                        production system (TPS), Friesen is
                                                        determined that, if possible, the
                                                        situation will be resolved using TPS
                                                        principles and tools. Students are
                                                        asked to suggest what action(s)
                                                        Friesen should take and to analyze
                                                        whether Georgetown's current
                                                        handling of the seat problem fits
                                                        within the TPS philosophy. Teaching
                                                        Purpose: 1) Provide comprehensive
                                                        knowledge on Toyota Production
                                                        System, 2) Exercise advanced root
                                                        cause analysis, and 3) Demonstrate
                                                        the totality of manufacturing,
                                                        especially the link between
                                                        production control and quality
                                                        control..
Jack Smith (B):      HBSP          North America;       Jack Smith had a stellar career at
Becoming a Toyota    # 9-604-059   automobile; $100     Chrysler managing major design
Manager (I)          3p            billion revenues;    teams and manufacturing plants
                                   100,000 employees;   before deciding to join industry leader
                                   2002                 and benchmark Toyota. It is his first
                                                        day on the job; what will his
                                                        orientation entail? Cursory
                                                        walkthroughs and introductions
                                                        before assignment to a job
                                                        commensurate with his experience
                                                        and accomplishments or something
                                                        else to acclimate him to Toyota's
                                                        unique management approach?
                                                        Teaching Purpose: To think deeply
                                                        about corporate acculturation,
                                                        capability development, and the role
                                                        of managers in complex organizations
                                                        where improvement and problem
                                                        solving are critical to success.
Jack Smith (C):      HBSP          North America;       Jack Smith had a stellar career at
Becoming a Toyota    # 9-604-060   automobile; $100     Chrysler managing major design
Manager (II)         4p            billion revenues;    teams and manufacturing plants
                                   100,000 employees;   before deciding to join industry leader
                                   2002                 and benchmark Toyota. It is his first
                                                            day on the job; what will his
                                                            orientation entail? Cursory
                                                            walkthroughs and introductions
                                                            before assignment to a job
                                                            commensurate with his experience
                                                            and accomplishments or something
                                                            else to acclimate him to Toyota's
                                                            unique management approach?
                                                            Teaching Purpose: To think deeply
                                                            about corporate acculturation,
                                                            capability development, and the role
                                                            of managers in complex organizations
                                                            where improvement and problem
                                                            solving are critical to success.
Chapter 10
Crafting a Vision at   Richard Ivey     United States;      Chrysler and Daimler-Benz
Daimler-Chrysler       School of        transportation      shareholders approved the largest
                       Business         equipment; large;   corporate merger in history. After
                       # 902C06         1998                months of talks, the chairman of the
                                                            German-based Daimler-Benz
                                                            management board and the chairman
                                                            and CEO of the U.S.-based Chrysler
                                                            Corp. were preparing for when the
                                                            two companies would officially
                                                            combine forces to create the fifth
                                                            largest automobile company in the
                                                            world. These two managers were
                                                            officially charged with the
                                                            responsibility of amalgamating two
                                                            enterprises that were vastly different
                                                            from each other. Chrysler was known
                                                            for its efficient production and
                                                            economically priced vehicles.
                                                            Daimler-Benz sold only luxury
                                                            vehicles, and its reputation was
                                                            based on craftsmanship, quality, and
                                                            safety. Chrysler executives were in
                                                            the habit of limiting business
                                                            expenses; Daimler-Benz executives
                                                            were not. Between the two
                                                            companies, there were huge
                                                            discrepancies in cultures, market
                                                            segments, product lines, salaries, and
                                                            attitudes. Aware of the excitement of
                                                            their investors and the concern of
                                                            their critics, the two leaders are
                                                            expected to forge and promote the
                                                            vision on which Daimler-Chrysler will
                                                            base its future.
DaimlerChrysler        Babson College   Automotive          Centers on the historic merger of
Merger: The Quest      # BAB041                             Daimler-Benz AG and Chrysler Corp.
to Create "One         27p                                  and the subsequent quest for
Company" (A)                                                integration. The subtexts to this
                                                            central issue include a comparison
                                                            and contrast of the operating cultures
                                                            and business processes of the two
                                                            companies as well as their histories,
                                                            positions within the auto
                                                            manufacturing industry, and
                                                            corporate values and image. Also
                                                            introduces the dynamics of
                                                            integrating the leadership of two
                                                            companies. Using "what if" scenarios,
                                                            students can explore the roles of the
                                                            senior managers in the merger, its
                                                            execution, and the subsequent
                                                            integration attempts. Gives students
                                                            an opportunity to envision and
                                                            develop an integration strategy. Best
                                                            suited for studies in strategic
                                                            management, corporate
                                                              entrepreneurship, global
                                                              management, leadership, and change
                                                              management or organizational
                                                              behavior.
DaimlerChrysler       Babson College   Automotive             Supplements the (A) case.
Merger: The Quest     # BAB042
to Create "One        4p
Company" (B)
The                   IMD              Europe, United         Provides an overview of current
DaimlerChrysler       # IMD130         States, Global;        trends in the global automotive
Merger (A): Gaining   20p              automotive,            industry and a description of Daimler-
Global                                 transportation;        Benz AG and Chrysler Corp. prior to
Competitiveness                        400,000 employees;     the merger. Describes this first
                                       1995-1998              transatlantic merger, raising the
                                                              issues of strategic positioning,
                                                              potential trade-offs, and competitive
                                                              moves. Teaching Purpose: To discuss
                                                              and evaluate the challenges
                                                              companies face in this hyper-
                                                              competitive market.
DaimlerChrysler:      IMD              USA, Germany;          Provides an inside view on how the
The Post-Merger       # IMD121/2       automotive,            former Daimler-Benz and Chrysler
Integration Phase     22p              transportation;        companies organized their integration
                                       large; 1998            efforts following their May 1998
                                                              merger, the first truly transatlantic
                                                              merger in history and, at the time,
                                                              the largest ever. As such, this merger
                                                              presents an unusually broad array of
                                                              management issues that were both
                                                              unprecedented in scope and rather
                                                              unique, ranging from cross-cultural
                                                              management and global strategy and
                                                              implementation to international M&A
                                                              alliances and change management.
                                                              Describes a journey that started
                                                              during the early 1980s, until the
                                                              events that preceded the Daimler-
                                                              Chrysler merger, outlining the key
                                                              strategic, organizational, and
                                                              execution challenges facing both
                                                              companies.
BMW Automobiles       J&S, p886
Chapter 11
Nike Inc: Entering    HBSP             Global; sports         Traces the evolution of Nike from
the Millennium        # 9-299-084      footwear & apparel;    1987 through 1998. Through a series
                      15p              Fortune 500; $9.5      of eight assignment questions, it
                                       billion revenues;      examines how the company has
                                       23,000 employees;      created and sustained a competitive
                                       1998                   advantage, and how that competitive
                                                              advantage is reflected in growth,
                                                              profitability, and share price
                                                              performance.
Nike, Inc. in the     HBSP             Global; footwear; $4   Describes the transition of Nike from
1990s (A): New        # 9-595-102      billion revenues;      1990 to 1993 as it sees major growth
Directions            8p               1990-1993              opportunities in foreign markets.
Nike, Inc. in the     HBSP             Global; footwear; $4   Describes Nike's performance to 1994
1990s (B): Strategy   # 9-595-103      billion revenues;      and describes challenges facing the
and Management        5p               1993-1994              new president and COO, Thomas
Changes--1993-94                                              Clarke.
Nike, Inc. in the     HBSP             Global; footwear; $4   In 1998, Nike's earnings and sales
1990s (C)             # 9-598-119      billion revenues;      growth slowed. Management faced
                      8p               1993-1994              new competition from Adidas. This
                                                              case asks students to review the
                                                              various strategies (including
                                                              diversification into sports equipment)
                                                              pursued by Nike to resuscitate
                                                              corporate growth. Teaching Purpose:
                                                              To discuss how to address a
                                                              flattening growth curve in a
                                                              corporation accustomed to high
                                                          growth.
Nike in Transition   HBSP          Beaverton, OR;         Explores Bob Woodell's tenure as
(A): The             # 9-392-105   athletic footwear;     Nike's first COO. Describes
Ascendancy of Bob    17p           large; $920 million    development of Woodell's
Woodell                            revenues; 4,000        management style, his attempts to
                                   employees; 1983-       develop the organization, and his
                                   1984                   responses to unforeseen business
                                                          problems. Changing market forces,
                                                          new competitors, a build-up of low-
                                                          end inventory, and the absence of
                                                          Phil Knight, the company's founder,
                                                          in daily operations, make this a
                                                          difficult time for Nike. Against the
                                                          backdrop of disappointing financial
                                                          results and an upcoming
                                                          shareholders' meeting, students are
                                                          asked to assess Woodell's
                                                          performance, whether management
                                                          is truly in control of the organization
                                                          and the company's business, and
                                                          what role Knight should be playing in
                                                          the organization.
Nike in Transition   HBSP          Beaverton, OR;           After returning to the CEO/COO
(B): Phil Knight     # 9-392-106   athletic footwear;       job, Phil Knight makes changes to
Returns              22p           large; $877 million      Nike's strategy, organization, and
                                   revenues; 3,000          management between 1983 and
                                   employees; 1984-         1987 aimed at making Nike more
                                   1987                     responsive to the market place.
                                                            He takes cost-cutting measures,
                                                            and experiments with several
                                                            management and organizational
                                                            changes. After much strife within
                                                            the company, Knight ends up with
                                                            a hybrid matrix, a new group of
                                                            managers, and a new strategy.
                                                            Has Knight made the right
                                                            choices? Has he squashed Nike's
                                                            entrepreneurial culture? Is Nike
                                                            poised for recovery?

3M: Profile of an    HBSP          United States; high    Traces the birth and development of
Innovating           # 9-395-016   technology products;   3M Corp., focusing in particular on
Company              20p           Fortune 500            the origins of its entrepreneurially-
                                                          based ability to innovate. In
                                                          particular, it highlights the role of
                                                          CEO William L. McKnight in creating a
                                                          unique set of values, policies, and
                                                          structures to nuture and develop
                                                          continuous renewal. With the
                                                          changing environment of the 1980s,
                                                          however, a new generation of CEOs
                                                          begin to adopt the policies and
                                                          change the cultural norms that
                                                          helped 3M grow. The trigger issue
                                                          focuses on what other changes are
                                                          required. Teaching Purpose: To show
                                                          how culturally embedded
                                                          organizational behavior can become a
                                                          sustainable source of competitive
                                                          advantage and to show how such
                                                          strong cultures can and should be
                                                          adjusted to new internal and external
                                                          realities.
Philips vs.          HBSP          Global, Europe,        Describes the development of the
Matsushita: A New    # 9-302-049   Japan; consumer        international strategies and
Century, a New       20p           electronics; large;    organizations of two major
Round                              $40 billion-$60        competitors in the global consumer
                                   billion revenues;      electronics industry. The history of
                                   270,000 employees;     both companies is traced and their
                                   1970-2001              changing strategic postures and
                                                          organizational capabilities are
                                                         documented. Particular attention is
                                                         given to the major restructuring each
                                                         company is forced to undertake as its
                                                         competitive position is eroded.
                                                         Teaching Purpose: Illustrates how
                                                         global competitiveness depends on
                                                         organizational capability, the difficulty
                                                         of overcoming deeply embedded
                                                         administrative heritage, and the
                                                         limitations of both classic
                                                         "multinational" and "global" models.
                                                         A rewritten version of an earlier case.
Chapter 12
Ford Motor Co.'s      HBSP          Dearborn, MI;        In April 2000, Ford Motor Co.
Value Enhancement     # 201-079     automobiles;         announced a shareholder Value
Plan (A)              17p           Fortune 500; $162    Enhancement Plan (VEP) to
                                    billion revenues;    significantly recapitalize the firm's
                                    335,000 employees;   ownership structure. Ford had
                                    2000                 accumulated $23 billion in cash
                                                         reserves and under the VEP would
                                                         return as much as $10 billion of this
                                                         cash to shareholders. In exchange for
                                                         each share currently held, the plan
                                                         would give stockholders one new
                                                         share plus the choice of receiving $20
                                                         either in cash or additional new Ford
                                                         common shares. Shareholders
                                                         electing to receive cash would be
                                                         taxed on these distributions at capital
                                                         gain rates. Among other things, the
                                                         plan provided a means for the Ford
                                                         family to obtain liquidity without
                                                         having to dilute their 40% voting
                                                         interest (even though they own only
                                                         5% of the shares outstanding.)
                                                         Students must wrestle with the
                                                         following questions: Why was Ford
                                                         proposing this transaction instead of
                                                         a traditional share repurchase or a
                                                         cash dividend? How did the interests
                                                         of the Ford family factor into this
                                                         decision, and what did the
                                                         transaction imply about the future
                                                         involvement of the family in the
                                                         company? Why was Ford distributing
                                                         such a significant amount of cash at
                                                         this particular point in time? Did the
                                                         distribution signal a change in the
                                                         company's appetite for making
                                                         acquisitions or future capital
                                                         expenditures? If shareholders
                                                         collectively elected to receive less
                                                         than $10 billion in cash, how would
                                                         Ford distribute the remaining cash?
                                                         Teaching Purpose: Provides a rich
                                                         setting in which to discuss one of the
                                                         most basic decisions corporations
                                                         face: how to return cash to
                                                         shareholders. It is a vehicle for
                                                         discussing corporate financial policies
                                                         and capital structure decisions--
                                                         particularly as they relate to cash
                                                         dividends and share repurchases--in
                                                         a context where corporate control
                                                         questions and the interests of
                                                         multiple constituencies must be
                                                         understood.
Ford Motor Co.:       HBSP          United States;       Ford Motor Co. reports improved
Quality of Earnings   # 9-104-059   automotive; $150     profitability, but an equity analyst
Growth Analysis (A)   25p           billion revenues;    issues a sell recommendation and
                                    2003                 Standard & Poor's downgrades long-
                                                           term debt. Teaching Purpose: To
                                                           analyze earnings growth quality.
Ford Motor Co.:        HBSP           United States;       Supplements the (A) case.
Quality of Earnings    # 9-104-063    automotive; $150
Growth Analysis (B)    2p             billion revenues;
                                      2003
A Hundred-Year         HBSP           United States and    Through their competitive battle,
War: Coke vs.          # 9-799-117    global; beverages;   Coca-Cola and PepsiCo have created
Pepsi--1890s-1990s     21p            Fortune 500          stable and highly profitable duopoly
                                                           in the U.S. soft drink industry. As the
                                                           domestic industry matured and the
                                                           cola wars moved to international
                                                           markets, Coke and Pepsi tried to
                                                           redesign their competitive strategies
                                                           as well as the vertical structure of
                                                           their corporations. Teaching Purpose:
                                                           1) How the industry structure evolves
                                                           as a result of competitive interactions
                                                           of firms, and 2) How the vertical
                                                           structure of the firm changes in
                                                           response to the economic conditions.
                                                           A rewritten version of an earlier case
                                                           by Michael E. Porter and David B.
                                                           Yoffie.
Strategic              HBSP           United States;       Describes strategic acquisitions by
Countermoves:          # 9-795-133    carbonated           Coca-Cola and Pepsi-Cola in the late
Coca-Cola vs. Pepsi    6p             beverages; Fortune   1980s. The context allows students to
                                      500; 1986            evaluate the implications of the
                                                           mergers for the competitiveness of
                                                           the industry.
Internationalizing     HBSP           United States;       Describes strategic acquisitions by
the Cola Wars (A):     # 9-795-186    carbonated           Coca-Cola and Pepsi-Cola in the late
The Battle for China   6p             beverages; Fortune   1980s. The context allows students to
and Asian Markets                     500; 1986            evaluate the implications of the
                                                           mergers for the competitiveness of
                                                           the industry.
Chapter 13
McDonalds Corp.        HBSP           New England; fast    Describes the operating system of
(Condensed)            # 9-681-044    food; 1980           McDonald's, the world's most
                       15p                                 successful fast food chain. The case
                                                           does not have a decision focus; it is
                                                           designed for use with Burger King
                                                           Corp. Students are asked to compare
                                                           the operating systems of these two
                                                           fast food hamburger chains. Careful
                                                           analysis will detect the subtle and not
                                                           so subtle differences between the two
                                                           operating systems selected by these
                                                           two firms.
Burger King Corp       HBSP           New England; fast    Describes the operating system of a
                       # 9-681-045    food; 1980           Burger King unit. The case does not
                       15p                                 have a decision focus; it is designed
                                                           for use with McDonald's Corp.
                                                           Students are asked to compare the
                                                           operating systems of these two fast
                                                           food hamburger chains. Careful
                                                           analysis will detect the subtle and not
                                                           so subtle differences between the two
                                                           operating systems selected by these
                                                           two firms.
American fast food     Richard Ivey   Korea; fast food;    A major U.S.-based fast food
in Korea               School         large; 2000          company with extensive operations
                       # 903M16                            around the world was contemplating
                       14p                                 whether to enter the Korean market.
                                                           The Korean fast food market was hit
                                                           badly by the Asian economic crisis in
                                                           the late 1990s, but the economy was
                                                           turning around. Thus, fast food
                                                           demand in Korea was expected to
                                                           increase. For the industry analysis,
                                                           this case provides information on
                                                             various competitors, substitute foods,
                                                             new entrants, consumers, and
                                                             suppliers. Also includes social issues
                                                             as potential forces.
Jollibee Foods Corp.   HBSP          fast food; $250         Noli Tingzon, newly-appointed
(A): International     # 9-399-007   million revenues;       international division VP at Jollibee,
Expansion              23p           1987-1997               the Philippines-based hamburger
                                                             chain, is faced with the challenge of
                       J&S, p808                             expanding fast food operations in
                                                             Asia in the face of stiff competition.
                                                             The case describes Jollibee's six-year
                                                             international expansion history and
                                                             the lessons the company has learned.
                                                             Against this background, Noli must
                                                             decide among expansion
                                                             opportunities in New Guinea, Hong
                                                             Kong, and California.
News Corporation       J&S, p808
AOL – Time Warner      HBSP          United States;          AOL Time Warner, which has been
Inc.                   # 9-702-421   Internet and media;     billed as the "first fully integrated
                       29p           88,500 employees;       media and communications company
                                     2000-2001               of the Internet Century," raises the
                                                             fundamental question of how value
                                                             will be created and captured by the
                                                             merger of AOL and Time Warner. This
                                                             case describes just how different AOL
                                                             was from Time Warner in strategy,
                                                             culture, and execution, and permits a
                                                             thorough analysis of how value is
                                                             proposed to be created through
                                                             capturing synergies within the new
                                                             company. The discussion of synergies
                                                             is divided into three levels: tactical,
                                                             strategic, and transformational. The
                                                             key question to address is whether a
                                                             merger of this sort is the most
                                                             effective way to create value or
                                                             whether contracting and other
                                                             mechanisms is equally good--
                                                             perhaps, superior. Teaching Purpose:
                                                             Evaluating the synergies for the AOL
                                                             Time Warner merger. A rewritten
                                                             version of an earlier case.
Valuing the AOL        HBSP          United States;          On January 11, 2000 AOL Time
Time Warner            # 9-802-098   entertainment           Warner announced their intention to
Merger                 38p           telecommunications;     merge, creating what AOL CEO
                                     $33 billion revenues;   Stephen Case and Time Warner CEO
                                     50,000 employees;       Gerald Levin called the 21st century's
                                     2001                    first fully integrated communications,
                                                             media, and entertainment company.
                                                             This case, prepared from public
                                                             sources, enables in-depth analysis of
                                                             the value of AOL Time Warner from
                                                             the viewpoint of executives and
                                                             analysts before their merger 6
                                                             months later. Teaching Purpose: To
                                                             discuss the challenges of identifying
                                                             the value of a company during
                                                             periods of market, industry, and
                                                             business turbulence.
Global Media           Lynch 3rd
                       Edition
                       Lecturer’s
                       Guide
News Corporation       Lynch 3rd
                       Edition
                       Lecturer’s
                       Guide
Chapter 14
Nokia Beyond           Stanford      2003                    In 2003, Nokia was the dominant
2003: A Mobile         University                            maker of cell phones around the
Gatekeeper?            # SM113                            world. It had more than twice the
                       23p                                global handset market share of its
                                                          closest competitor, Motorola. While in
                                                          a position of strength in 2003, the
                                                          company faced large challenges in
                                                          the immediate future. For example,
                                                          the so-called third generation (3G) of
                                                          mobile technology was experiencing a
                                                          slow arrival and uncertain consumer
                                                          reception. In addition, there was
                                                          uncertainty about which type of 3G
                                                          technology would dominate. Perhaps
                                                          a larger strategic issue for Nokia,
                                                          however, was its plan for its
                                                          operating system. In the past, other
                                                          handset makers were willing to adopt
                                                          Nokia's popular handset operating
                                                          system. By 2003, however, Microsoft
                                                          has entered the market with its own
                                                          mobile operating system. As mobile
                                                          devices become more robust, e.g.,
                                                          incorporating web-enabled phones
                                                          with PDAs, the importance of mobile
                                                          operating systems increases. How
                                                          can Nokia contend with the entry of
                                                          the extremely well-funded Microsoft
                                                          into its core market? Teaching
                                                          Purpose: To discuss the strategic
                                                          options open to Nokia as it faces new
                                                          competitors in a rapidly changing
                                                          technology environment.
Nokia Corp:            Stanford     Espoo, Finland;       Nokia Corp. is a global
Innovation and         University   telecommunications;   telecommunications company that in
Efficiency in a high   # IB23       $19,954 million       eight years went from a near-
growth global firm     38p          revenues; 51,177      bankrupt conglomerate to a global
                                    employees; 1992-      leader in mobile telephony, delivering
                                    2000                  almost 30% annual compound growth
                                                          in revenues during 1992-2000 while
                                                          shedding businesses that had
                                                          accounted for almost 90% of its 1998
                                                          shares. By spring 2000, Nokia had
                                                          the highest margins in the mobile
                                                          phone industry, a negative debt-
                                                          equity ratio, the most valuable non-
                                                          U.S. brand in the world, Europe's
                                                          highest market capitalization, a
                                                          presence in 140 countries, and
                                                          unique corporate structures,
                                                          processes, and culture that gave it
                                                          the feel of "a small company soul in a
                                                          big corporate body." Along with
                                                          growth in size and diversity,
                                                          however, came growth in complexity.
                                                          Nokia had to develop multiple
                                                          businesses and technologies (while
                                                          dealing with the great technological
                                                          uncertainties that were inherent in
                                                          the convergence of mobile telephony
                                                          and the Internet). It also had to
                                                          manage a growing network of
                                                          alliances and a number of
                                                          acquisitions, mostly in the United
                                                          States. This case provides the
                                                          background to the issues Nokia faces
                                                          as it considers how to meet these
                                                          challenges while maintaining its
                                                          unique company values and way of
                                                          working that made it possible to
                                                          execute efficiently while continuing to
                                                          innovate. Teaching Purpose: To
                                                          explore the challenges of innovating
                                                              while maintaining a focus on efficient
                                                              operations, to explore the challenges
                                                              of rapid growth in a technologically
                                                              turbulent environment, and to
                                                              explore the challenges of
                                                              globalization from a narrow national
                                                              base.
Birds Eye and the     HBSP              United Kingdom;       Describes the forty-year evolution of
U.K. Frozen Good      # 9-792-074 –     frozen food;          the U.K. frozen food industry, and
Industry (A) and      (A) – 19p         large; L 420          traces the emergence, dominance,
(B)                                     million               and the decline of Birds Eye. Its
                      HBSP              revenues; 1946-       success is as a vertically integrated
                      # 9-792-078 –     1984                  producer, distributor, and marketer of
                      (B) – 3p                                frozen foods that pioneers the
                                                              industry in the U.K. Its decline as
                                                              other firms enter all stages of the
                                                              value chain is seen as a result of its
                                                              earlier success that yields it an
                                                              unsustainable strategic position.
                                                              Examines vertical integration as a
                                                              strategy, the analytic rationale to be
                                                              vertically integrated, and the
                                                              disadvantages of vertical integration.
Proctor & Gamble:     HBSP            Global; consumer        Dave Walker, vice-president of
Global Business       # 9-404-124     products; $40 billion   business service opportunities and
Service               15p             revenues; 98,000        chairman of the governance team at
                                      employees; 2001         Procter & Gamble, must decide what
                                                              to do with P&G's 5,700 employee
                                                              Global Business Services (GBS)
                                                              group. GBS brought together internal
                                                              services such as finance, accounting,
                                                              employee services, customer
                                                              logistics, purchasing, and information
                                                              technology into a single, global
                                                              organization supporting all P&G
                                                              business units. Recently, P&G CEO
                                                              A.G. Lafley questioned whether
                                                              continued investment in GBS
                                                              represented the best use of P&G's
                                                              resources. Walker and the other
                                                              members of the governance team
                                                              must decide whether to spin off GBS,
                                                              outsource GBS services to an outside
                                                              company, outsource the GBS
                                                              divisions separately to best-of-breed
                                                              companies, or keep the group in-
                                                              house. In making the decision,
                                                              Walker and the members of the team
                                                              must consider the impact on the
                                                              organization of altering the existing
                                                              relationships between the members
                                                              of GBS and the other employees at
                                                              P&G. Teaching Purpose: To consider
                                                              the issues inherent in any decision to
                                                              outsource services and the impact of
                                                              such a change on the company.
Proctor & Gamble      HBSP            Rome, Italy; food;      Procter & Gamble's (P&G) Pringles
Italy: The Pringles   # 9-601-070     $38 billion revenues    potato chips have been a very
Launch (A)            33p             (global); 110,000       successful brand. This case reviews
                                      employees; 1998-        the development and launch in the
                                      1999                    United States, then in markets
                                                              around the world. Italy is one of the
                                                              last countries for Pringles. Should
                                                              P&G Italy use the successful launch
                                                              strategy used throughout Europe, or
                                                              devise its own? Teaching Purpose:
                                                              Launch strategy/marketing mix in a
                                                              different country context.
Chapter 15
Ericsson and the      J&S, p605
creation of mobile
telephones
KPN Telecoms         J&S, p659
Ericsson in China:   HBSP          China;                Focuses on Ericsson in the Chinese
Mobile Leadership    # 9-700-012   telecommunications    mobile phone market--the company's
                     27p                                 largest single market, and one that is
                                                         still growing at rates in excess of
                                                         50%. Permits comparison of two
                                                         distinct ways of entering the Chinese
                                                         market: by forming joint ventures
                                                         with local competitors or with a WFOE
                                                         (wholly foreign-owned enterprise)
                                                         structure. But the bulk of the case is
                                                         devoted to changes in the Chinese
                                                         market and in mobile phone
                                                         technology, and the threats that they
                                                         pose to the sustainability of existing
                                                         competitive advantages as well as the
                                                         new opportunities that they open up.
Make Yourself        IMD           Europe, global;       Ericsson, the Swedish
Heard: Ericsson’s    # IMD040      mobile phones;        telecommunications products and
Global Brand         20p           large; 1998           systems company, is embarking on a
Campaign                                                 first-ever global advertising campaign
                                                         for its brand of mobile phones. The
                                                         idea for consumer brand building,
                                                         new to an otherwise technology-
                                                         oriented, industrial company, has
                                                         come about as a result of
                                                         developments in the worldwide
                                                         market for cellular phones: fast
                                                         growth, entry of new consumer
                                                         segments, declining product
                                                         differentiation, and the growing
                                                         pressure on prices and margins. The
                                                         expensive campaign, aiming to
                                                         cement a relationship with
                                                         consumers, is notable for a total
                                                         absence of product-related
                                                         communication. Under the slogan
                                                         "Make yourself heard," the ads
                                                         feature a gallery of faces and a range
                                                         of situations demonstrating the spirit
                                                         of communication between people
                                                         around the world. Some of the issues
                                                         the case raises are: How do you build
                                                         a strong brand for a product that is
                                                         increasingly difficult to differentiate?
                                                         Can pure brand values stand on their
                                                         own merits without any references to
                                                         products? What criteria should you
                                                         use to evaluate advertising
                                                         execution? A 2001 ECCH award
                                                         winner.
Bharti Tele-         HBSP          India;                Following the liberalization of India's
Ventures             # 9-704-426   telecommunications;   telecommunications service industry
                     26p           $642 million          in the early 1990s, Bharti Tele-
                                   revenues; 5,000       Ventures grew from a small
                                   employees; 2003       entrepreneurial telephone equipment
                                                         importer and manufacturer to
                                                         become India's largest private-sector
                                                         telecommunications service group in
                                                         terms of numbers of customers.
                                                         Attracting over $1.2 billion in foreign
                                                         equity investments, more than any
                                                         other Indian telecom firm, by 2001
                                                         Bharti had achieved the country's
                                                         leading market position in mobile
                                                         telecom service. By 2003, however,
                                                         the nature of the game had changed.
                                                         A spate of mergers and acquisitions
                                                         had reduced the field to the most
                                                         successful and best-financed
                                                          contenders. At the same time,
                                                          telecommunications regulatory
                                                          changes let in new, lower priced
                                                          competitors, significantly altering the
                                                          rules of the game. Suddenly, in
                                                          addition to government-owned BSNL
                                                          and the stately Tata Group, India's
                                                          oldest business house, Bharti was up
                                                          against Reliance, the largest and
                                                          most profitable of a new generation
                                                          of business groups. Bharti's
                                                          management and equity partners at
                                                          Mittal and his partners at SingTel and
                                                          Warburg Pincus had to determine
                                                          what to do next. Teaching Purpose:
                                                          Explore challenges and opportunities
                                                          for entrepreneurial companies in a
                                                          newly deregulated and highly
                                                          competitive industry where rivals
                                                          include large domestic business
                                                          groups, foreign multinationals, and
                                                          state-owned incumbents.
Honda (A)          HBSP            Japan, United          Describes the history of Honda Motor
                   # 9-384-049     States; motorcycles;   Company from its beginning through
                   9p              large; 1948-1974       its entry into and subsequent
                                                          dominance of the U.S. market. The
                                                          history is explained primarily in terms
Honda (B)                                                 of strategic factors and quoted from
                                                          two sources: an earlier case and
                                                          Boston Consulting Group report on
                                                          the motorcycle industry. Should be
                                                          used with Honda (B).
CMR Forum: The     California                             Perhaps no other article published in
"Honda Effect"     Management                             the management literature has had
Revisited          Review                                 the impact of Richard Pascale's piece
                   # CMR065                               on the "Honda Effect" that was
                   41p                                    published in the Spring 1984 issue of
                                                          the California Management Review.
                                                          This now classic article has stimulated
                                                          considerable debate over the role and
                                                          value of corporate strategy in
                                                          business decision making--which is
                                                          the subject of this forum. This special
                                                          collection of essays includes an
                                                          abridged version of Pascale's original
                                                          article ("Perspectives on Strategy:
                                                          The Real Story Behind Honda's
                                                          Success"), an exchange of
                                                          correspondence between Henry
                                                          Mintzberg and Michael Goold, and
                                                          new essays by Richard Rumlet,
                                                          Michael Goold, and Richard Pascale,
                                                          who revisits his own original article as
                                                          well as this whole debate.
Chapter 16
Sony Europa (A),   IMD             Europe, Japan;         In 1994, Sony's European operation
(B) and (C)        # IMD057 –      consumer               moved to centralize its organization
                   31p, IMD058 –   electronics; 10        to improve operating efficiencies,
                   5p and IMD059   billion Deutschmarks   implement pan-European marketing,
                   – 2p            revenues; 1994         and develop a unified position vis-a-
                                                          vis Sony headquarters in Japan. In
                                                          this transition, the powerful local
                                                          country organizations lost much of
                                                          their autonomy in key decision areas.
                                                          Informally referred to as Big Bang,
                                                          the radical organizational change ran
                                                          into trouble almost from the
                                                          beginning. This case provides the
                                                          background to the organizational
                                                          change, including important market
                                                          forces that are reshaping the
                                                           consumer electronics market in
                                                           Europe. Teaching Purpose: To
                                                           illustrate the management challenges
                                                           involved in moving from a
                                                           decentralized country management
                                                           structure to a pan-regional
                                                           centralized organization as well as to
                                                           raise issues about the management
                                                           of radical change. To discuss global
                                                           marketing, marketing
                                                           implementation, and change
                                                           management. A 1999 EFMD award
                                                           winner.
General Motors       HBSP          Global; automobiles;    This four-part case series details the
Corporation (A)      # 9-299-006   Fortune 500; $164       financial policies and practices at The
Overview, (B) and    3p            billion revenues;       General Motors Corp. (GM) from 1990
(C)                  # 9-299-007   647,000 employees;      to 1996. This case provides a brief
                     8p            1990-1996               introduction to GM. Teaching
                     #9-299-008                            Purpose: Enables students to
                     9p                                    examine how different financial
                                                           policies and practices in a firm
                                                           complement one another and how
                                                           these policies are coordinated by
                                                           firms.
The General Motors   HBSP          Global; automobiles;    This four-part case series details the
Corp. (D): 1993-96   # 9-299-009   Fortune 500; $164       financial policies and practices at The
                     17p           billion revenues;       General Motors Corp. (GM) from 1990
                                   647,000 employees;      to 1996. This case describes the set
                                   1993-1996               of financial decisions taken by the
                                                           firm as its business recovered, and
                                                           focuses on an immediate decision
                                                           faced by GM's treasurer in 1996. He
                                                           must decide whether to recommend
                                                           to the board whether to hold "excess"
                                                           cash, disburse it to shareholders via a
                                                           dividend increase, or repurchase
                                                           shares. In addition, the repurchase
                                                           alternative offers a number of tactical
                                                           choices, including whether to engage
                                                           in a put-writing program or an
                                                           accelerated share repurchase.
                                                           Teaching Purpose: Enables students
                                                           to examine how different financial
                                                           policies and practices in a firm
                                                           complement one another and how
                                                           these policies are coordinated by
                                                           firms. Permits a discussion of the
                                                           strategic decision about holding or
                                                           disbursing cash, plus the tactical
                                                           decision of whether to use various
                                                           forms of financial engineering in
                                                           conjunction with a repurchase
                                                           program.
Asea Brown Boveri    HBSP          Sweden; electrical      The merger of Asea AB and BBC
(Condensed)          # 9-199-027   equipment; large;       Brown Boveri required a restructuring
                     6p            $17.8 billion           of operations and a change in
                                   revenues; 150,000       organizational cultures. Competitive
                                   employees; 1987         success also necessitated the benefits
                                                           of scale while remaining "local" for
                                                           political and customer-responsiveness
                                                           reasons. The case describes these
                                                           competitive pressures, which resulted
                                                           in the decision to adopt a matrix
                                                           organization. Teaching Purpose: To
                                                           be used with Asea Brown Boveri: The
                                                           ABACUS System to discuss the efforts
                                                           to restructure while retaining the
                                                           benefits of being "local," "small," and
                                                           decentralized.
ABB in the new       IMD           Global; energy,         Takes an inside look at ABB's
Millenium: New       # IMD128      electrical power; $25   unprecedented 1997 to 2000
Leadership, New       11p           billion revenues;      transformation under Gvran Lindahl,
Strategy, New                       1997-2000              the second CEO of this electrical
Organization                                               engineering powerhouse, who
                                                           succeeded Percy Barnevik during late
                                                           1996. After a highly successful first
                                                           decade of existence under Barnevik
                                                           (1988 to 1996), ABB found itself in
                                                           the midst of a crisis by the end of
                                                           1997, after the combined effects of
                                                           global deregulation, radical
                                                           technological innovations, and an
                                                           unpredictable but sweeping financial
                                                           crisis across most emerging markets.
                                                           ABB's response was to shift its
                                                           strategic focus radically to favor
                                                           knowledge- and service-based
                                                           offerings across all of its businesses.
                                                           The company's implementation of
                                                           such strategy took place in two bold
                                                           steps. The first one comprised a
                                                           major global restructuring of ABB, as
                                                           a result of which the company
                                                           divested from mature manufacturing
                                                           businesses such as power generation
                                                           and transportation and became a
                                                           global leader in areas such as
                                                           industrial process automation and
                                                           electrical distribution solutions. The
                                                           second step was to transform ABB
                                                           into a fast-growing high-technology
                                                           company, moving from old to new
                                                           economy Internet-based services and
                                                           solutions. The case contains two
                                                           mini-cases in ABB distribution
                                                           solutions and ABB's global
                                                           information systems group--two
                                                           instances that show first-hand the
                                                           pains of rapidly transforming a vast,
                                                           manufacturing concern into an
                                                           Internet- and solutions-based
                                                           powerhouse as the new millennium
                                                           unfolds.
Chapter 17
Real Madrid Club de   HBSP          Spain; sports; $233    In June 2004, Florentino Perez, a
Futbol                # 9-504-063   million eurodollars;   well-known Spanish businessman,
                      24p           850 employees;         was elected president of Real Madrid,
                                    2004                   one of the world's top soccer clubs.
                                                           In his campaign, Perez had promised
                                                           to turn around the club's finances,
                                                           bring in world-class talent, and
                                                           extend the club's brand around the
                                                           world through multiple channels. As
                                                           re-election looms four years later, his
                                                           management team reflects on
                                                           initiatives to date and challenges
                                                           ahead as described in the case. Also
                                                           describes the soccer industry and the
                                                           trends transforming it. Teaching
                                                           Purpose: To evaluate Real Madrid's
                                                           brand management strategy and to
                                                           consider the risks and opportunities
                                                           involved. Also, to recommend a
                                                           strategy for the future expansion of
                                                           the brand worldwide.
Mastercard            HBSP          Global; financial      MasterCard must decide whether to
International:        # 9-500-036   services; $651         renew the sponsorship of the World
World                 21p           million revenues;      Cup and other soccer events in light
Championship                        3,000 employees;       of a 100% increase in the
Soccer Sponsorship                  1998-1999              sponsorship fee and a strategic
                                                           realignment by MasterCard. Teaching
                                                           Purpose: 1) Demonstrates typical
                                                          sponsorship deal. 2) Shows how
                                                          sponsorship can be evaluated. 3)
                                                          Examines place of sponsorship in
                                                          marketing mix. A rewritten version of
                                                          an earlier case.
Canon Inc.:           HBSP          Multinational;        Describes Canon's worldwide strategy
Worldwide Copier      # 9-384-151   copiers; 1983         in the copier business. Designed to
Strategy              21p                                 be used to explore strategy
                                                          formulation in a worldwide industry,
                                                          and the principles of international
                                                          competition.
Desktop Printer       HBSP          United States;        The desktop printer industry in 1990
Industry in 1990      # 9-390-173   desktop computer      is characterized by significant
                      24p           printers; 1990        uncertainty about new technologies
                                                          and about the types of features
                                                          customers may demand in the next
                                                          decade. The case looks at the
                                                          positions of Hewlett-Packard, Canon,
                                                          Kodak, Xerox, and IBM enabling
                                                          students to consider different
                                                          approaches competing firms may
                                                          take to manage strategic risks in a
                                                          rapidly changing, high technology
                                                          industry.
Strategy Planning     HBSP          Toronto, Canada;      Describes the firm's strategic
at Sun Life           # 9-301-084   financial services;   planning activities and focuses on the
                      21p           $1.3 billion          challenge of developing processes
                                    revenues; 1,300       that enable the firm to improve the
                                    employees; 2000       core business as well as processes
                                                          that foster the creation of promising
                                                          new business opportunities. Teaching
                                                          Purpose: To teach students about
                                                          how to design different types of
                                                          strategy formulation to accomplish
                                                          different objectives.
Financial Planning    Lynch
at Hanson Plc         3rd Edition
                      Lecturer’s
                      Guide
Chapter 18
The HP-Cisco          HBSP          United States,        In 2002, Hewlett-Packard and Cisco
Alliance (A)          # 9-403-120   Global; information   Systems strive to develop their long-
                      21p           technology; $101      standing partnership into a strategic
                                    billion revenues;     alliance with increasing impact.
                                    165,000 employees;    Critical components of successful
                                    2002                  alliance implementation emerge from
                                                          the analysis. Specifically, the case
                                                          illuminates the link between alliance
                                                          strategy, formal design of alliance
                                                          structure and processes, and informal
                                                          management of interpersonal
                                                          dynamics where trust, perceptions,
                                                          and emotions can both create and
                                                          overcome formidable obstacles to
                                                          effective interfirm relationships.
                                                          Teaching Purpose: Strategy
                                                          implementation in alliances, power
                                                          and influence in interorganizational
                                                          relations, interplay of formal
                                                          organizational design, and informal
                                                          interpersonal dynamics.
The HP-Cisco          HBSP          United States,        Supplements the (A) case.
Alliance (B)          # 9-404-040   Global; information
                      3p            technology; $101
                                    billion revenues;
                                    165,000 employees;
                                    2002
AOL, Cisco, Yahoo!:   HBSP          Silicon Valley, CA,   Since the spring of 2001, AOL, Cisco,
Building the          # 9-302-088   Washington, D.C.;     and Yahoo! had collaborated on ways
Internet Commons      23p           nonprofit; 15         to improve the effectiveness of using
                                    employees; 2002       the Internet to benefit society. Each
                                                           company considered itself strongly
                                                           committed to philanthropy, making
                                                           significant charitable donations, and
                                                           fostering a variety of active
                                                           community outreach programs. Yet,
                                                           executives at the three firms
                                                           recognized the potentially larger
                                                           impact that a joint effort could have
                                                           on the greater public good.
                                                           Overcoming a multitude of barriers to
                                                           such intercompany cooperation, the
                                                           firms decided to create Network for
                                                           Good, a charity portal that individuals
                                                           and nonprofit agencies in the e-
                                                           philanthropy space could use to
                                                           facilitate donations, volunteering, and
                                                           citizen advocacy. Teaching Purpose:
                                                           Demonstrates corporate leadership in
                                                           the social sector, analyzes challenges
                                                           in developing a multicompany
                                                           collaboration for social good.
Cisco China          HBSP           China; networking;     Designed to show how Cisco has
                     # 9-302-069    $1 billion revenues;   taken its U.S.-based infrastructure
                     17p            700 employees;         and applied it to China. It is stunning
                                    2001                   in its impact as one notes how so
                                                           much of what is being done in the
                                                           United States in terms of the intranet
                                                           has been transferred to China.
                                                           Teaching Purpose: To sensitize the
                                                           class to global information technology
                                                           transfer issues. The timing that Cisco
                                                           has used to transfer its intranet
                                                           technology to China and customize it
                                                           is stunning.
Cisco Systems:       HBSP           Silicon Valley, CA;    Cisco has invested in building a
Building Leading     # 9-301-133    high technology;       leading IT, Internet-based
Internet             26p            Fortune 500; $25       infrastructure. This case describes
Capabilities                        billion revenues;      Cisco's latest efforts to broaden
                                    35,000 employees;      Internet capabilities in the company
                                    2001                   from 30% penetration to 60%. The
                                                           Internet capabilities strategy is
                                                           intended to sustain Cisco's double-
                                                           digit revenue growth through the
                                                           decade. Teaching Purpose: To further
                                                           understanding about Internet
                                                           capabilities and management
                                                           leadership in exploiting IT benefits.
Cisco Systems: Are   HBSP           Sunnyvale, CA;         An Internet service provider, INS, in
You Ready (A) and    # 9-901-002    Internet equipment;    which Cisco Systems has a minority
(B)                  28p            Fortune 500; $12       ownership stake, receives an offer of
                                    billion revenues;      $3.1 billion from Cisco's rival Lucent.
                     HBSP           20,000 employees;      Cisco's management has to decide
                     # 9-901-003    1999                   whether to act on a request from INS
                                                           management that Cisco make a
                                                           counteroffer. The decision requires
                                                           that Cisco's highly successful strategy
                                                           be revisited. Teaching Purpose: To
                                                           illustrate: 1) the importance of the
                                                           preservation of focus in strategic
                                                           management, and 2) ways of coping
                                                           with the rapid development of
                                                           "destructive technologies."
Cisco Systems,       Richard Ivey   United States;         Cisco is the world's largest
Inc.: Managing       School of      electronics; large;    manufacturer and distributor of
Corporate Growth     Business       1997                   routers and switches. In order to
Using an Intranet    # 97E018                              achieve this position, it has adopted
                     13p                                   an aggressive growth strategy,
                                                           acquiring companies, their
                                                           employees, and new employees at a
                                                           rate of 250 to 300 employees per
                                                           month. The Cisco Employee
                                                            Connection (CEC), a corporate
                                                            intranet, is the primary means by
                                                            which new employees are absorbed
                                                            and acculturated. The CEC is also the
                                                            principal means of interaction for the
                                                            multi-functional work team approach
                                                            Cisco employs. This case critically
                                                            assesses this approach to scaling an
                                                            organization and the extent to which
                                                            it can be maintained and transferred.
Chapter 19
Rabobank Group:       HBSP          Global; agribusiness,   The largest global agribusiness bank
Leadership Role in    # 9-303-421   food, banking; $8.4     has lost its triple A rating and is
Global Agribusiness   24p           billion eurodollars;    rethinking its global strategy as the
                                    2002                    leading global food and agribusiness
                                                            bank. How does it position itself in
                                                            the vertical value-added global food
                                                            system? Teaching Purpose: The role
                                                            of finance and risk management in
                                                            global agribusiness.
BRL Hardy:            HBSP          Australia/United        Focuses on two new product launch
Globalizing an        # 9-300-018   Kingdom; wine;          decisions facing Christopher Carson,
Australian Wine       20p           $250 million            managing director of BRL Hardy,
Company                             revenues; 1992-         Europe. Responsible for the European
                                    1998                    operations of a major Australian wine
                                                            company, Carson has begun to
                                                            globalize his strategy beyond selling
                                                            the parent company's wines. After a
                                                            difficult joint venture with a Chilean
                                                            wine source, he is proposing to
                                                            launch an Italian line of wines. His
                                                            local team has also developed a new
                                                            Australian brand that would compete
                                                            directly with a parent company's
                                                            global brand rollout. Teaching
                                                            Purpose: Focuses on global strategy
                                                            choices being made through
                                                            headquarter-subsidiary negotiations
                                                            that define the roles of country
                                                            managers and global product
                                                            managers.
Marks & Spencer:      Stanford      Global, United          The venerable British retailer Marks &
The De-               University#   Kingdom; retailing;     Spencer suffered a series of setbacks
Globalisation of      SM87          8 billion pounds        in the late 1990s. The company's
Marks & Spencer in    11p           revenues; 70,000        performance, which had been solid
2001: An Update                     employees; 1999-        for decades, quickly deteriorated,
                                    2001                    forcing the rapid turnover of chief
                                                            executives and many restructurings.
                                                            Perhaps the largest change the
                                                            retailer made was the abandonment
                                                            of its global expansion plans,
                                                            withdrawing from continental Europe
                                                            and trying to sell off assets in the
                                                            United States, including the well-
                                                            known clothiers Brooks Brothers. This
                                                            case examines the changes Marks &
                                                            Spencer made between 1998 and
                                                            2001, as the company tries to shore
                                                            up its ailing core business, U.K. retail,
                                                            while deciding on an appropriate
                                                            global strategy.
International         Lynch
Strategy in the       3rd Edition
Paper and Pulp        Lecturer’s
Industry              Guide
What Strategy Now     Lynch
for SCA?              3rd Edition
                      Lecturer’s
                      Guide
Chapter 20
eBay Inc              HBSP          San Jose, CA; e-        eBay was the world's largest and
                     # 9-700-007   commerce; $47.3     most popular person-to-person
                     32p           million revenues;   trading community on the Internet.
                                   300 employees;      In early 1999, the company was
                                   1999                doing very well and seemed to have
                                                       solved many of its early problems.
                                                       However, on March 30, 1999,
                                                       Amazon.com announced that it was
                                                       entering the online auction arena.
                                                       This powerful firm could prove to be
                                                       eBay's strongest competitor to date.
                                                       Teaching Purpose: What should eBay
                                                       do in light of the entry of its most
                                                       recent and serious competitor to
                                                       date.
Yahoo: Business on   HBSP          United States;      In the wake of major competitive
Internet Time        # 9-700-013   Internet portals;   moves, CEO Tim Koogle and his
                     27p           $200 million        senior team at Yahoo!, an Internet
                                   revenues; 900       portal, must decide whether and how
                                   employees; 1999     to adjust their strategy. Following
                                                       deals between AOL and Netscape,
                                                       Excite and @Home, Infoseek and
                                                       Disney, and Snap and NBS, Yahoo!
                                                       faces the prospect of being the last
                                                       portal without a significant partner.
                                                       Students must grapple with the
                                                       benefits and costs of integration in
                                                       the rapidly changing world of the
                                                       Internet. Teaching Purpose:
                                                       Examines how a company organizes
                                                       itself to formulate strategy in the
                                                       midst of rapid environmental change.
                                                       Reveals how external turbulence puts
                                                       new pressures on a firm's strategy,
                                                       its organizational structure, and its
                                                       managers. Considers how one
                                                       successful company has structured
                                                       itself to cope with severe
                                                       environmental uncertainty. Special
                                                       emphasis is given to the interactions
                                                       among Yahoo!'s functions and the
                                                       effects of those interactions on firm
                                                       flexibility. Also permits students to
                                                       examine the structural attractiveness
                                                       of the portal industry and the
                                                       strength of Yahoo!'s position in the
                                                       industry.
A Brief History of   HBSP          global; software;   Recounts the history of the evolution
the Browser Wars     # 9-703-517   1994-2003           of browser market shares from 1994
                     9p                                forward. Netscape's Navigator
                                                       establishes a huge early lead, but is
                                                       then displaced by an equally
                                                       dominant offering from Microsoft.
                                                       Highlights the role of Microsoft's
                                                       dominance in desktop operating
                                                       systems and Microsoft's bundling of
                                                       the browser with the operating
                                                       system. Teaching Purpose:
                                                       Supplements a fairly analytical
                                                       exercise on bundling that was taught
                                                       in a game theory course. Emphasizes
                                                       the role of bundling in Internet
                                                       Explorer's ascendancy. However, it
                                                       makes no explicit reference to that
                                                       exercise or discussion, making it
                                                       suitable for general use. Supports a
                                                       discussion of how Navigator became
                                                       so dominant in addition to a
                                                       discussion of bundling. A brief
                                                       summary of Microsoft's legal
                                                       entanglements also stimulates a
                                                       discussion of antitrust considerations.
Double Dealmaking   HBSP          United States;        Recounts two complex negotiations in
in the Browser      #9-800-050    computers/software;   which Netscape and Microsoft
Wars (A) and (B)    17p           $300 million          compete to win a browser contract
                                  revenues; 700         with AOL--then later with KPMG. After
                    #9-800-051    employees; 1995-      reviewing the web and browser
                    4p            1997                  sectors, this case recounts AOL's
                                                        dramatic negotiations with Netscape
                                                        and with Microsoft over which firm's
                                                        web browser would be used by the
                                                        online service. A path-breaking deal
                                                        was announced between AOL and
                                                        Netscape to use Navigator as the
                                                        "default" AOL browser, only to be
                                                        undermined the next day by an AOL-
                                                        Microsoft deal that designated
                                                        Microsoft Explorer as the "preferred"
                                                        AOL browser. The deal also put an
                                                        AOL icon, the Windows desktop, the
                                                        "world's most valuable cyber-real
                                                        estate." Describes the first stages of
                                                        a see-saw negotiation the following
                                                        year in which Netscape and Microsoft
                                                        were again competing, but this time
                                                        for a major deal with KPMG.
                                                        Concludes as KPMG has awarded the
                                                        contract to Netscape with Microsoft
                                                        still scrambling to get the business.
The Browser Wars    HBSP          United States;        Analyzes the competition between
– 1994-1998         #9-798-094    software; $500        Netscape and Microsoft in the market
                    20p           million revenues;     for Web browsers and related
                                  2,300 employees;      products. Despite its first mover
                                  1994-1998             advantage, Netscape sees its market
                                                        share fall once Microsoft becomes
                                                        "hard-core" about the Internet. By
                                                        the spring of 1998, the future of both
                                                        companies is on the line.
Amazon.com          J&S, p674
Chapter 21
Bertelsmann AG      HBSP          Global; media and     On July 28, 2002, Bertelsmann
                    # 9-703-405   entertainment; $14    announced the firing of its CEO,
                    29p           billion revenues;     Thomas Middelhoff, in a move that
                                  81,000 employees;     surprised industry observers,
                                  2002                  analysts, and many employees.
                                                        Bertelsmann, a privately held
                                                        company headquartered in Germany,
                                                        was one of the largest global media
                                                        conglomerates, with businesses
                                                        spanning book publishing, printing,
                                                        music, and television. Between 1998
                                                        and 2002, Middelhoff had initiated a
                                                        series of strategic initiatives aimed at
                                                        fostering greater integration among
                                                        its diverse business units and
                                                        strengthening their competitive
                                                        positions, articulated a series of
                                                        guidelines that would reevaluate
                                                        Bertelsmann's portfolio mix, and
                                                        looked to prepare Bertelsmann for a
                                                        transition to a planned initial public
                                                        offering in 2005. This case describes
                                                        these initiatives in detail and the
                                                        decision of the supervisory board to
                                                        effect a change in leadership. The
                                                        new CEO, Gunter Thielen, had to
                                                        decide whether to effect a
                                                        fundamental shift in the company's
                                                        corporate strategy or a more modest
                                                        reinterpretation of the course charted
                                                        by Middelhoff. Teaching Purpose:
                                                        Provides an opportunity to examine
                                                        1) the corporate strategy of a media
                                                           and entertainment conglomerate, 2)
                                                           the challenges in managing strategic
                                                           change within a large organization,
                                                           and 3) the impact of corporate
                                                           governance on corporate strategy.
                                                           Includes color exhibits.
Teradyne:            HBSP          Boston, MA;             Three cases deal with the
Managing             # 9-397-112   semiconductor test      introduction of a new product to
Disruptive Change    9p            equipment; $1 billion   Teradyne's line of semiconductor test
                                   revenues; 1996-         equipment. Teradyne: Managing
                                   1997                    Strategic Change provides historic
                                                           and administrative background for
                                                           the other two cases. Teradyne: The
                                                           Aurora Project deals with the
                                                           problems facing the head of a start-
                                                           up division responsible for developing
                                                           and bringing to market a new product
                                                           based on technology deemed very
                                                           important to the future but
                                                           unattractive to present customers
                                                           and therefore the operating divisions.
                                                           This case deals with the same set of
                                                           problems from the perspective of
                                                           corporate management--in particular
                                                           why the skunk works approach was
                                                           necessary and what new problems
                                                           this approach creates even if the
                                                           project is successful. Teaching
                                                           Purpose: To explore general
                                                           management problems--in this case
                                                           new product development from a
                                                           strategic perspective--at corporate
                                                           and middle levels of general
                                                           management.
Teradyne:            HBSP          Boston, MA;             Three cases deal with the
Managing             # 9-397-113   semiconductor test      introduction of a new product to
Disruptive Change    7p            equipment; $1 billion   Teradyne's line of semiconductor test
                                   revenues; 1996-         equipment. This case provides
                                   1997                    historic and administrative
                                                           background for the other two cases.
                                                           Teradyne: The Aurora Project deals
                                                           with the problems facing the head of
                                                           a start-up division responsible for
                                                           developing and bringing to market a
                                                           new product based on technology
                                                           deemed very important to the future
                                                           but unattractive to present customers
                                                           and therefore the operating divisions.
                                                           Teradyne: Managing Disruptive
                                                           Change deals with the same set of
                                                           problems from the perspective of
                                                           corporate management--in particular
                                                           why the skunk works approach was
                                                           necessary and what new problems
                                                           this approach creates even if the
                                                           project is successful. Teaching
                                                           Purpose: To explore general
                                                           management problems--in this case
                                                           new product development from a
                                                           strategic perspective--at corporate
                                                           and middle levels of general
                                                           management.
Teradyne: The        HBSP          As above                As above
Aurora Project       # 9-397-114
KPMG (A)             J&S, p1012
Chapter 22
Transforming         Stanford      United States;          In 2003, Norman Walker, head of HR
Human Resources      University    pharmaceuticals;        at Novartis, received approval from
at Novartis: The     # HR22        2003                    the management board to implement
Human Resources      21p                                   a global human resources information
Information System                                         system (HRIS). Although Walker had
(HRIS)                                                     made substantial progress in
                                                           transforming the HR function, much
                                                           of their efforts remained transactional
                                                           and not strategic. If successful, the
                                                           implementation of HRIS would
                                                           change the role and responsibilities of
                                                           not only the HR organization but how
                                                           it added value to the company. Since
                                                           its formation in 1996, Dan Vasella,
                                                           the CEO, had transformed the
                                                           organization from one with slow-
                                                           moving functional silos into a high-
                                                           performance company. His goal was
                                                           to make Novartis a "premier talent
                                                           machine by 2005." The new global
                                                           HRIS was a key element in this
                                                           transformation. It was clear to Walker
                                                           that this was a major organizational
                                                           change effort, not simply an IT
                                                           implementation. Describes the
                                                           changes Walker had already made
                                                           and poses a set of challenges that will
                                                           need to be addressed to implement
                                                           the new HRIS project. Teaching
                                                           Purpose: To raise issues of HR
                                                           strategy and implementation,
                                                           organizational change, and the role of
                                                           HR in global firms. To frame a narrow
                                                           IT implementation in terms of the
                                                           larger strategic issues raised when
                                                           implementing large-scale system
                                                           changes.
eBusiness@Novartis   HBSP          Basel, Switzerland;     Describes a leading pharmaceutical
                     # 9-601-057   pharmaceuticals;        company's approach to developing e-
                     21p           $19 billion revenues;   business capabilities throughout the
                                   36,000 employees;       organization. Highlights the
                                   2001                    company's decision to approach e-
                                                           business on a more centralized
                                                           manner.
Novartis Pharma:     HBSP          Switzerland;            In June 2000, Novartis reorganized
The Business Unit    # 9-101-030   pharmaceuticals;        its pharmaceutical business to form
Model                21p           $21 billion revenues;   global business units in oncology,
                                   70,000 employees;       transplantation, ophthalmology, and
                                   2000                    mature products. The remaining
                                                           products (primary care products)
                                                           were managed as before within global
                                                           functions (R&D), marketing, etc.) The
                                                           new organization created a matrix
                                                           structure and new roles and
                                                           responsibilities for heads of business
                                                           functions, CEOs of new business
                                                           units, and country managers
                                                           operating in over 100 countries.
                                                           Teaching Purpose: To explore the
                                                           reasons for Novartis's reorganizing
                                                           into the new matrix structure, the
                                                           tensions and challenges the new
                                                           structure creates, and the culture and
                                                           accountability needed to make the
                                                           new structure work.
Hans Fritz at        HBSP          Thailand;               Dr. Hans Fritz is 37 years old when
Novartis Thailand    # 9-399-123   pharmaceuticals;        he arrives in Bangkok on March 1,
(A) The First        17p           large; $21.5 billion    1998 to assume his position as
Month, (B) and (C)                 revenues; 87,000        general manager of Novartis
And (D)              # 9-399-124   employees; 1998-        Thailand. Novartis is the world's
                     3p            1999                    largest pharmaceutical company. He
                                                           had lobbied to transition from a staff
                     # 9-301-054                           position to this line management
                                                           assignment. He encounters an
                     # 9-301-055                           organization in chaos, a demoralized
                                                           staff, and a market in crisis. The case
describes his first month in this new
position. His most important task at
this stage is to set priorities when
everything needs to be done at once.
He has to decide whom to trust on his
team, and what to do in the short,
medium, and long term. Teaching
Purpose: Describes the general
manager's dilemma. Students are
asked to evaluate the situation he
encounters and advise him on how to
proceed.

								
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