This case describes the proposed acquisition of Tribune Company by Sam Zell in 2007. Tribune Company is one of the largest newspapers and broadcasting companies in the United States. Zell's proposed acquisition is unusual in several respects. It is two-tiered, employs an ESOP as the acquisition vehicle, involves a high degree of leverage as well as significant asset sales, and Zell himself will own almost no common stock in the post-deal Tribune. The case is set in late October 2007, at which point the first stage of the acquisition has been completed, but the second stage has not. Recent deterioration in both Tribune's operating results and credit market conditions make it unclear whether the transaction can be closed as scheduled in 2007, or indeed at all.
On March 21, 2008, the U.S. government secured an agreement from two leading sovereign wealth funds (SWFs) to adopt a new set of investment principles to govern the Funds' activities. SWFs, broadly defined as an investment fund owned by a national or a government, were gaining prominence across the globe, especially with their recent investments in troubled U.S. financial firms that had suffered significant losses from the subprime mortgage crisis. Yet SWFs were viewed with suspicions amid concerns that they could have potential political interests behind their investments. Many SWFs also lacked disclosure or transparency regarding their activities or investment goals. Countries such as the United States felt that some kind of international regulation had to be imposed, but would it be possible?
ScriptLogic is a software company that has built a product portfolio that fits under a 'Point, Click, Done!' umbrella; its products are easy to download, easy to install, and easy to use. The company's online marketing program and inside sales force have been very successful in finding and bringing in new customers, in part because of a laser-like focus on increasing its marketing ROI. As ScriptLogic looks towards its next phase of growth, however, it is becoming clear that some changes need to be made in order to take full advantage of its growing product portfolio. Students debate the merits of going after new customers by building an enterprise sales force or mining the existing customer base with an inside sales force that already has a lot on its plate.
Carrefour, the second largest retailer in the world, had just announced that it would open its first "Green Store" in Beijing before the 2008 Olympic Games. David Monaco, asset and construction director of Carrefour China, had little experience with green building, and was struggling with how to translate that announcement into specifications for store design and operations. Monaco has to evaluate the situation carefully both from ecological and economic perspectives. In addition, he must take the regulatory and infrastructure situation in China into account, where no official green building standard exists and only few suppliers of energy saving equipment operate. He had already collected energy and cost data from several suppliers, and wondered how this could be used to decide among environmental technology options. Given that at least 150 additional company stores were scheduled for opening or renovation during the next three years in China, the project would have long term implications for Carrefour.
The director of information technology (IT) at Ritcher, a major Hungarian pharmaceutical company with operations throughout Eastern Europe, is in the midst of planning for the IT department for the coming years. The three main considerations for the coming year are: Is the current IT structure appropriate to meet the growing demands of the overall organization? To what extent should IT affiliates be centrally controlled? How can IT best serve the rest of the company?
Vikram Akula, CEO of SKS Microfinance, seeks a venture capital investment to fund his firm. SKS, one of the largest and fastest growing microfinance institutions in India, is a profitable, for profit institution with a social mission. In what is one of the first commercial financing deals in the world, Akula must decide at what value to sell equity in SKS, and to whom to sell it. The case focuses on valuation, which is difficult because at the time there are no publicly traded comparable companies, and the strategic aspects of raising money.
Set in 1999, this case allows students to put themselves in the positions of both Airbus and Boeing as Boeing considered how to respond to Airbus's decision to announce its plans to proceed or not with the $10 billion development of the world's first commercial superjumbo jet, the Airbus A3XX. Boeing was considering a development effort to "stretch" its 747 jumbo jet into a larger superjumbo version, the 747-X. At the time, the two companies' widely available 20-year forecasts for jumbo- and superjumbo-jet demand were particularly divergent. In light of this very public "agreement to disagree," Boeing could pursue several alternatives, all of which were related to Airbus's decision about whether or not to develop the A3XX. This case presents an opportunity for students to make a real downstream decision. It was prepared as a final exam for an introductory decision analysis course involving subjective probability assessment, decision tree modeling, simulation, real options, and game theory. In the analysis of this case, a student is expected to utilize ideas from all five of these areas.
This case explores the expansion of a product - garlic and herb cubes. This case can be used to explore the merits of alternative channels of distribution or it may be used more broadly to explore the development of a more effective marketing program. Students are asked to 1) assess how the competition affects Toppits' marketing plan; 2) select a customer group to target and determine how this group affects the marketing plan; 3) determine and evaluate distribution options; 4) develop a promotional strategy and budget and 5) make a decision.
The chief of paediatric orthopaedic surgery was very concerned by the long times that the young patients (and their parents) were experiencing in the orthopaedic clinic. Long wait times tended to aggravate the already pent-up distress and concern that the patients were facing. The chief glanced at recently collected data on service times and wondered how the process could be improved, while continuing balancing budgetary pressures to reduce costs. Moreover, any changes couldn't be done in isolation, as her clinic shared resources with other departments. A monthly executive meeting was fast approaching and expectations were starting to run high that her efforts might be able to spur improvements in other departments too.
This case is about how Coopers Brewery, a very small family-owned fourth generation family business, fought off a determined takeover bid by an international brewer. Although the takeover bid formally began in 2005, it had its origins in 1983, so the case illustrates how and why organizations get involved with each other and how that can play out in unexpected ways later on. Although the case detail is about the takeover bid, it is designed primarily for use as a business strategy analysis case for use in the early part of a strategic management course. It also contains sufficient competitor analysis to conduct a rudimentary industry analysis. It could separately be used for mergers and acquisitions analysis but this is seen as the background material.
"Gila" was a high-performance image processor project housed in Intel's New Business Initiatives (NBI) group. NBI was an incubator for such corporate entrepreneurs, and it had an established methodology for ensuring a degree of autonomy while these ventures got started. But it faced many questions as the ventures grew and started to win their first customers. How should NBI handle the transition of the venture back to a mainstream division within Intel?
The case looks at the takeover of the Roaring Dragon Hotel (RDH), a state owned enterprise in south-west China, by global hotelier Hotel International (HI) and discusses the cultural collision and organizational adoptions resulting from the intersections of two significantly different business cultures. Specifically in this case, the focus is on the challenge involved with downsizing, redundancy, communication, cultural sensitivity, strategic planning and in developing strategy. In south-west China in 2002, the RDH business environment was just emerging from the shadow of the planned economy and had retained its guanxi-based organizational culture. At RDH, relationship development and the exchange of favors were still important and occurring on a daily basis and there was little system or efficiency in the hotel's domestic management style and processes. In comparison, Hotel International had a wealth of international experience in providing accommodation, marketing and professional management in servicing the needs of a global market steeped in corporate governance. At the commencement of the management contract there was a deep division separating the organizational cultures of RDH and HI.
The case describes the dilemma of a marketing manager, Thomas Green, who, after being rapidly promoted, is harshly criticized by his boss, Frank Davis. Green and Davis disagree on work styles and market projections. Green believes the sales goals set by Davis are based on "creative accounting" and grossly overstate the current market environment. A mood of silent conflict develops quickly between the two men, and Green is concerned that Davis is building a case to fire him. Green's situation is one in which his failure to adapt his work style and fully understand the demands and boundaries of his new position may lead to his discharge. A factor in the background is Green's relationship with his boss's boss.
In October 2007, the British band Radiohead caused a stir when it announced it would allow customers to decide how much to pay for its new album, released exclusively as a digital download and available only from the band's own website. The pricing plan represented a significant break from the industry standard of fixed prices for music, typically 99 cents for individual songs and upward of $9.99 for complete albums. How viable is such a "name-your-own-pricing" plan? And what does Radiohead's move say about the future of the music industry?
Though many multinationals see little business potential in serving the poorest people in developing countries, two innovative mobile phone companies are making profits and improving local economic conditions by doing exactly that.
The CEO of SpinVox, a start-up that provides voice-to-text service, says her relationships with her mentors have been the key to her entrepreneurial success.
A new study shows that downsizing often prompts demoralized survivors to quit, which hinders efficiency and costs companies money. To add insult to irony, career-development programs are associated with even higher turnover after the ax falls. The researchers say that certain types of HR practices may help.
Research by IBM's Visual Communication Lab shows that the sophisticated graphing of data generates impassioned conversations and collaboration. Executives seeking to engage employees in solving company problems should take note.