In 2000, Procter & Gamble Co. introduced Crest Whitestrips, a new, revolutionary product that allowed consumers to whiten their teeth at home. With Whitestrips, P&G created an entire new category in oral care, worth $460 million in 2002. Whitestrips sent P&G's main competitor in oral care, Colgate Palmolive Co., scrambling because several patents protected the strips, making it difficult for Colgate to copy the invention. But in September 2002, the tables turned. Colgate introduced Simply White, a favorably priced whitening product that consumers could simply paint on their teeth. One month after its introduction, Simply White had captured one half of the market, and Crest Whitestrips lost more than 50% of its share. However, P&G's tests of Simply White indicated that Colgate's new product was largely ineffective. Had Colgate just committed a major strategic blunder by introducing a product that did not work? And, if so, how could P&G best take advantage of the situation?
Explores the information technology (IT) issues that confront a global enterprise engaged in the manufacture, sales, and distribution of durable goods. Emphasizes the design and delivery of enterprise resource planning, supply chain management, decision support system (DSS), and e-commerce solutions to both for-profit and not-for-profit organizations. Allows consideration of the many opportunities to improve KL's performance through the better design and integration of IT-enabled processes and services, from designing a new e-commerce or DSS capability to reengineering KL's supply chain and product design practices.
In early 2005, the market for cement in Mexico was changing. The market, particularly in northern Mexico, had traditionally consisted primarily of sales of bagged cement, which was common in developing economies. There appeared to be a shift to bulk cement, more typical of developed economies. CEMEX, the third largest cement company in the world, and the dominant company in Mexico, had developed a strong brand identity for its bagged cement. Bulk cement, however, was harder to differentiate. Describes the Mexican cement industry and dramatic changes that CEMEX had made in 2000-2005 to focus on customer needs, particularly the needs of its distributors. These changes involved a wide range of activities, including dramatic improvements in logistics, creating a retail network among its distributors, and developing a suite of software applications to ensure that the right product was delivered to the right place at the right time. What lessons could the company adopt from its branded business and its success with building its distributor network, if the market turned more toward commodity bulk cement?
In mid-September 2005, Ashley Swenson, the chief financial officer of this large CAD/CAM (computer aided design and manufacturing) equipment manufacturer must decide whether to pay out dividends to the firm's shareholders, or repurchase stock. If Swenson chooses to pay out dividends, she must also decide on the magnitude of the payout. A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising, and change its corporate name to reflect its new outlook. The case serves as an omnibus review of the many practical aspects of the dividend and share buyback decisions, including (1) signaling effects, (2) clientele effects, and (3) finance and investment implications of increasing dividend payout and share repurchase decisions. This case can follow a treatment of the Miller Modigliani dividend-irrelevance theorem and serves to highlight practical considerations in setting dividend policy.
In most organizations, the employee appraisal process causes more tension than any other aspect of personnel management. Despite the good intentions behind it, a 360º Feedback system does little to quell the fear that performance evaluation tends to instill. But is it possible to design a 360º Feedback system that is both comfortable and constructive for employees? This technical note discusses the challenges of and opportunities for creating a system that improves performance effectiveness and enhances career success.
Introduces the concept and importance of coherence and the use of the Public Education Leadership Project coherence framework. Describes the challenges and opportunities facing Portland Public Schools Superintendent Vicki Phillips during her first seven months on the job.
Cyd Szymanski's cage-free egg business was threatened by large caged-hen companies that saw new profit potential in the industry she had helped build. Szymanski had based her company, Nest Fresh Eggs, on a strong personal belief that people deserved healthier alternatives for food and that animals deserved to be treated well. Not only had Szymanski remained true to her convictions, but she also saw financial success with what had begun as a very small family operation. Over time, more consumers understood the health and ethical benefits associated with cage-free eggs and were willing to pay a premium price to purchase them. But, during Nest Fresh's 14 years in business, the egg industry had undergone a number of changes. Large caged egg producers started to enter the cage-free market. Szymanski believed that these producers were motivated solely by profit. They were developing small cage-free production facilities side by side with their caged operations. They also had the financial clout to offer lower prices, something the small independent cage-free operators like Nest Fresh were far less able to do. Szymanski had to come up with alternatives, some of which might require back-pedaling on her convictions.
Star India, a subsidiary of Murdoch's News Corporation, and the leading TV network in India, is considering whether to acquire (or continue its arms-length relationship) with one of its major content providers, Balaji Telefilms. The case provides information on the industry context, regulatory environment, key competitors, and the Indian TV market. The case is a good vehicle to discuss value chain concepts and understand the relative strategic positions of different players within a value chain. The case also provides a good introduction to one of the largest television markets in the world.
In the spring of 2005, CEO Jeff Leerink has called a meeting of the executive committee to formulate Leerink Swann's growth strategy over the next five years so that it accomplishes three goals: expand into a new business, reinforce the firm's legacy businesses, and maximize the synergies between different parts of the firm. Covers the history of the boutique investment bank, including the nature and source of its personnel and culture, the development of its competitive strategy, the leadership style of its founder, and the development of each department, product, and function.
Corning, with large investments in fiber optic technology, was hit particularly hard by the collapse of the telecommunications industry in 2001. With over $4 billion in debt, the firm's survival appears to rest on raising additional equity capital. The protagonist is considering whether to invest in Corning or in a new mandatory convertible preferred stock that is being offered to the public.
Many economists argue that monopolies stifle innovation. But before the breakup, AT&T and its R&D units constituted probably the most potent innovation engine the world has known.