Since its inception in 1984, Lenovo Group Ltd. had grown from a company engaged primarily in the distribution of imported computers to being the largest IT corporation in the People 's Republic of China. Although Lenovo was able to hold onto its market leadership position, competitive pressure from Dell, IBM, Toshiba, and HP was increasing, with the company taking large hits, mainly at the hands of Dell. Engaging in a series of price wars to retain the low end of the consumer segment, Lenovo was also struggling to maintain its stronghold in corporate sales to Chinese government ministries and schools. With the PC market in China maturing rapidly, Lenovo's main challenge was to develop a business model that would not only combat Dell's direct selling model but would also take advantage of the group's traditional strengths. With a view to meeting the group's projected target of becoming a Fortune 500 company by 2010, Lenovo was looking toward tapping international markets as well as exploring product diversification strategies in the local market. Lenovo's predicament highlights the growing pains many Chinese companies faced in their efforts to become global players while defending their domestic market share from foreign rivals.
This case presents the first of two workshop descriptions and templates for the Sustainable Marketing Leadership (SML) executive program. It enables a top management team to focus on the first two steps in the four-step SML process: strategic visioning and integrated planning.
This case presents the second of two workshop descriptions and templates for the Sustainable Marketing Leadership (SML) executive program. It enables a top management team to approach the last two steps in the four-step SML process: managing performance and marketing controllership.
Management is struggling to meet consensus quarterly earnings-per-share numbers. Discusses a number of accounting decisions. A report indicating internal control problems in one of the company's divisions raises a Sarbanes-Oxley certification issue. A rewritten version of an earlier case.
David Stern, commissioner of the National Basketball Association (NBA), faces myriad challenges: globalization of product, young players entering the league, loss of fan base, etc. Stern must put together a plan for the Board of Governors that confronts these challenges to create a more dynamic, profitable, and strategic organization.
As CEO of Tata Consultancy Services (TCS), S. "Ram" Ramadorai had grown the company into an emerging IT services powerhouse, with marquee clients such as General Electric, offices in 32 countries, and revenues of nearly $2 billion dollars. Now, he was about to steer TCS through an initial public offering--the largest ever by a private Indian company. Despite his excitement, Ramadorai knew that in some ways the timing of the IPO was not ideal. TCS had profited tremendously from corporate America's willingness to outsource IT and business process functions to overseas providers. But outsourcing had recently come under attack, with some politicians and labor leaders denouncing it as a threat to American jobs and America's economic dominance. In addition, TCS was facing rising labor costs in India and competition from emerging IT industries in East Asia, South America, and elsewhere. How would Ramadorai address these issues to ease investors' concerns on the eve of the IPO?
At Zipcar, customers share the use of cars and, as a result, rely on each other for their service experience. Customers are required to keep the car clean and the gas tank full and to return the car on time. Told from the perspective of two customers: Sal Fishman, who has a car and is running late at an interview, and Anita Karr, who has just arrived at her reserved car's empty parking spot.
Introduces students to the study of corporate strategy. Focuses on questions of scope and ownership. Examines both horizontal and vertical integration. Underscores the point that economies of scope, or the existence of relationship-specific investments, are insufficient to explain effective corporate strategy unless there are important obstacles to contractual solutions.
Discusses how strategy-makers should take organizational inertia into account in strategy formulation. Looks at two classes of inertia: cognitive inertia and action inertia. A rewritten version of an earlier case.
Flextronics, the world's largest contract manufacturing firm, made a strategic decision to expand its business to include original design and manufacturing (ODM) services. As an ODM supplier, Flextronics designed and built products that original equipment manufacturers (OEMs) purchased and sold under their brand names. Purchasing from an ODM allowed OEMs to bring new products to market quickly and efficiently. ODMs could sell the same basic product to many OEMs, providing substantial design and manufacturing efficiencies. Flextronics' first ODM products were cellular phone handsets. The company had substantial hardware capabilities, which grew out of its contract manufacturing experience. In 2004, Flextronics considered adding software design expertise and considered a number of approaches to accomplish this. Having learned of the outstanding reputation of Indian software companies, the company's CEO and the president of its Design and OEM Services operation visited India. Describes the contract manufacturing and design landscape in 2004, with a focus on software.
In 2001 Veropoulos Spar, a 770 million Euro retailer in Greece and the Balkan region, intiated the implementation of a new Internet enabled collaborative ordering IT system with 3 suppliers: P&G, Unilever, and Elgeka. Two years later the project failed and had to stop. The CEO is now evaluating a new proposal for re-starting the initiative.
An upscale ecolodge in southern Nicaragua hopes to achieve a 53 per cent occupancy rate within three years of opening, and has hired a management company to prepare a marketing strategy. Despite its proximity to Costa Rica and its focus on providing a unique luxury vacation retreat for one of the fastest growing segments in the travel industry - the ecotourist - the hotel faces numerous hurdles. The greatest challenge is to overcome Nicaragua's negative reputation, based on its recent history of political and social unrest, still fresh in the minds of tourists. The hotel must also operate within the country's rural infrastructure, characterized by interruptions in the power supply, poorly maintained roads and below-standard sanitation. Additionally, Nicaragua does not have a pool of skilled employees to work in the high-end service industry. The effects of these factors on the hotel's market positioning and market penetration rate are addressed in the preparation of the marketing strategy.
Due to differences in incentive compensation, work experience, and objectives, sales and marketing, in many organizations often clash. At Microsoft Canada, the national sales manager, Home & Entertainment Division and the group product manager for PC marketing are considering investing a recurring $1 million a year - 10 per cent of their combined promotional budget - to produce and maintain a consumer-focused website, Microsoft Home Magazine. This proposed investment comes at a time where sales growth is slowing in the firm's PC business. As a surprising twist for students, this case is unique in the sense that it highlights an example where sales and marketing work together to achieve a common goal.
The founder and chief executive officer of Global Source Healthcare was struggling with how to allocate sales resources among acquiring new accounts, penetrating existing accounts and up-selling existing accounts. Global Source Healthcare provided domestic and international staffing services to healthcare facilities. The company had been operational for a year and growth had been considerably slower than expected. What made this decision especially important was that the healthcare staffing market was experiencing a substantial downturn. Consolidation was occurring in the industry. Given the limited sales and financial resources of the company, this decision was critical to ensure the very survival of Global Source. Other issues that may be raised include understanding the sales strategy in the business and marketing strategy, motivating a sales force in a difficult, limited-resource environment, and understanding the trade-off between the length of the sales cycle and the size of the potential account.
Boots Group PLC, one of the best known and respected retail names in the United Kingdom, provided health and beauty products and advice that enhanced personal well being. The marketing manager at Boots was planning his sales promotion strategy for a line of professional hair-care products. The professional hair-care line consisted primarily of shampoos, conditioners and styling products (gels, wax, mousse, etc.) developed in collaboration with United Kingdom's top celebrity hairdressers. The marketing manager's challenge was to select one of three promotional alternatives - get three for the price of two, receive a gift with purchase or an on-pack coupon - for the Christmas season. He realized that the alternative he selected would have both immediate effects on costs and sales, but also long-term implications for the brands involved. His primary objective was to drive sales volumes and trade-up consumers from lower-value brands, while retaining or building brand equity.
The Walkerton tragedy, an E.coli outbreak that resulted in seven deaths and 2,300 people sick, was unprecedented in Canada. The medical officer of health for Grey-Bruce was told that a number of people in the Walkerton area had developed serious illness. E.coli was confirmed and the medical officer suspected contaminated water as a source of the problem. However, the public utilities commission had assured him that the water was fine. Still he had a bad feeling that Walkerton was the verge of a very serious outbreak. He wondered what his next step should be in the complex situation he faced; he did not have much data to act on. Supplements We Have a Terrible Tragedy Here (B), (C), (D), (E) and (F), products 9B05C023, 9B05C024, 9B05C025, 9B05C026 and 9B05C027, follow the events as they take place.
The Walker tragedy, an E.coli outbreak that resulted in seven deaths and 2,300 people sick, was unprecedented in Canada. A couple of days after the medical officer of Grey-Bruce was notified of a case of E.coli in the Walkerton area, he was still concerned about the source and of the outbreak and issues a boil water advisory. This is a supplement to We Have a Terrible Tragedy Here (A), product 9B05C022.
The Walkerton tragedy, an E.coli outbreak that resulted in seven deaths and 2,300 people sick, was unprecedented in Canada. With 100 cases of E.coli having been reported, the medical officer for Grey-Bruce was reasonably certain that the cause of the outbreak was the water supply, and stresses the urgency for the Ministry of the Environment to become involved. This is a supplement to We Have a Terrible Tragedy Here (A) and (B), products 9B05C022, 9B05C023.