On June 8, 1998, California-based Wells Fargo and Minneapolis banking company Norwest announced a "merger of equals" in a stock deal valued at $34 billion and one that created the Western Hemisphere's most extensive and diversified financial services network. The Wells-Norwest combined company would have $191 billion in assets, more than 90,000 employees, approximately 20 million customers, and 5,777 financial services "stores" (mortgage, consumer finance, or banking stores) in 50 states, Canada, the Caribbean, Latin America, and internationally. The new combined company, Wells Fargo & Co., would be the sixth largest bank in the United States and have the largest supermarket branch network and the largest Internet bank of any U.S. bank. With the merger, Paul Hazen, chairman and CEO of Wells Fargo at the time, became chairman of the new organization. Richard Kovacevich, chairman and CEO of Norwest, became president and CEO of the new organization. Despite Kovacevich's and Hazen's enthusiasm for the merger, they had a series of potential barriers to overcome: First, Wells Fargo and Norwest had contrasting cultures--Norwest was known for customer service and a superior sales culture, whereas Wells Fargo was a leader in online banking and technology, with a focus on efficiency. Second, in 1998, Wells Fargo was still in the process of overcoming a merger with First Interstate that was widely considered a failure. Finally, many industry analysts viewed the Wells-Norwest merger with much caution. Given such barriers, Kovacevich and his team wondered how they could overcome such issues through an optimal integration strategy and effective execution toward that plan.

On June 8, 1998, California-based Wells Fargo and Minneapolis banking company Norwest announced a "merger of equals" in a stock deal valued at $34 billion and one that created the Western Hemisphere's most extensive and diversified financial services network. The Wells-Norwest combined company would have $191 billion in assets, more than 90,000 employees, approximately 20 million customers, and 5,777 financial services "stores" (mortgage, consumer finance, or banking stores) in 50 states, Canada, the Caribbean, Latin America, and internationally. The new combined company, Wells Fargo & Co., would be the sixth largest bank in the United States and have the largest supermarket branch network and the largest Internet bank of any U.S. bank. With the merger, Paul Hazen, chairman and CEO of Wells Fargo at the time, became chairman of the new organization. Richard Kovacevich, chairman and CEO of Norwest, became president and CEO of the new organization. Despite Kovacevich and Hazen's enthusiasm for the merger, they had a series of potential barriers to overcome: First, Wells Fargo and Norwest had contrasting cultures--Norwest was known for customer service and a superior sales culture whereas Wells Fargo was a leader in online banking and technology, with a focus on efficiency. Second, in 1998, Wells Fargo was still in the process of overcoming a merger with First Interstate that was widely considered a failure. Finally, many industry analysts viewed the Wells-Norwest merger with much caution. Given such barriers, Kovacevich and his team wondered how they could overcome such issues through an optimal integration strategy and effective execution toward that plan.

Amway is a large manufacturer of household products that uses the direct selling approach. The company was established in the late 1940s and over the years, still using direct selling, branched into the United Kingdom, Europe and Japan. With this global success it expanded further, into the Chinese market. However, the company must look at its strategy after the Chinese government implements regulations on the direct marketing business model. The supplement Amway in China (B): Adopting to a Changing Environment, product 9B04M036, looks at how the company responds to the changing social and political environment.

The Chinese government has placed a ban on direct marketing. With direct marketing being the primary marketing method the company uses, it must respond to the changing social and political environment. This is a supplement to Amway in China (A): A New Business Model, product 9B04M035.

Elixir Technology is a small software development company based in Singapore that develops data analysis and report generation software and provides technical training and consulting services. By May 2003, it had successfully sold this software to corporate clients in Singapore, China and Japan, following a very adaptive marketing strategy in each market. Now the managing director is contemplating entering the Middle East but must choose an entry strategy quickly to capitalize on the current window of opportunity. Available entry choices include direct entry, or several partnership options.

In less than a decade, Korea's Samsung has transformed itself from a maker of low-end consumer electronics into a legitimate rival to Japanese industry giants such as Sony and Panasonic. Success has been due largely to efforts to reposition Samsung as a provider of stylish, leading-edge digital technology. But shadows of the old brand image remain, spurred on by the continued availability of several of the company's traditional products. The president of Samsung Electronics Canada has been directed to solve this problem, prompting difficult choices regarding product, pricing, distribution and promotion that threaten to hurt sales and short run profits.

Arvind Mills, a large Indian textile and garment manufacturer, has to assess the costs of a large order, as a basis for a price quotation. The company is in a significant loss position. The textile industry in India is constrained by government regulations and the industry is critical as both an export earner and a major employer in the economy. However, the industry is losing share to China and must change to meet that threat. The vice-president of operations must assess the costs associated with the order, including an assessment whether to use the traditional cost system or the customer and manufacturing based activity cost system. The decision is also strategic as this order is at the core of the company's new strategy to be both a designer and manufacturer.

A young manager at a consultancy firm is faced with the lack of business professionalism at a speaking event of a well-known guest speaker. The event is poorly attended by staff and a series of disrespectful actions on the part of the attendees - occurs. The manager must decide how to handle similar situations in the future.

The president of Nutan Mumbai Tiffin Box Suppliers Charity Fund is faced with the decision of how to expand the Dabbawallahs of Mumbai service. The service could be expanded in terms of product offering or geographical setting. This is a supplement to Dabbawallahs of Mumbai (A), product 9B04D011, and asks students to examine the opportunities and challenges in growing the service, and decide upon the most appropriate course of action.

The president of Daikin Industries Residential Air Conditioning Shiga Factory was confronted by the prospects of an unseasonably cold summer, at a time when the Shiga Factory had large quantities of its products in inventory in anticipation of strong summer sales. The president was concerned not only about pending losses in the current year, but also about the factory's long-term survival. Unprofitability was unacceptable and Daikin was caught in a stagnant market in which it was increasingly difficult to build share by product differentiation. The Shiga Factory had been forced to use large inventories to cope with uncertain demand and a long and unwieldy supply chain. The president must decide whether to reduce the number of models, build a lower-cost factory outside Japan, or exit the business. He must also determine if there are any other options.

Originally a chemical company with its focus on agriculture, American Cyanamid has expanded into three other industry segments: medical, chemical and consumer products. The executive vice-president for agriculture must decide what to do with the floundering chemical division. The supplement Cytec Industries, Inc., product 9B04M007 looks at the progress of the chemical division.

An entrepreneur comes up with a great idea for a new business that would service what he calls the time-starved segment. Using Wal-Mart as the warehouse, eBay as his storefront and the U.S. Postal Service as the distributor, he would pick-up and deliver products to businesses, conserving staff resources. He must think of as many opportunities as possible and determine any barriers that may occur. The purpose of the case is to get students to generate ideas. Students will be quick to criticize and analyze the ideas presented, but few will focus on presenting new ideas.

GigaNet, Inc. describes the effort of a 20 year computer industry veteran to transform a small telecommunications engineering firm into a viable networking technology company. Faced with an uphill battle to convince venture capitalists to invest in the company after the founders decided to seek funding from third tier venture firms, he finally wins $30 million in new investment from a consortium of high quality investors. Before the deal is finalized however, he receives an offer to buy the company from a larger rival. He now must choose between accepting the $30 million and launching an IPO in 18 months and selling the company.

The hedge fund industry has been in existence for several decades. However, it is still considered as an alternative investment and it is not well understood by many investors. This note provides a background description of hedge funds as well as illustrations of some of the various strategies that are employed by hedge funds managers including relative value, event-driven, and directional strategies.

Negotiation often presents us with choices about how best to achieve our goals.

Provides a broad overview of economic and political developments in Spain from the 1940s to the present day. Examines the emergence of Spain from the Franco dictatorship and its convergence into a vibrant democracy, as reflected in the surprising election results of 2004. Also describes the economic transformation of Spain and permits discussion of the interrelationships between the economic and political dynamics. Highlights the role the European Union (EU) played as an inspirational goal and institutional constraint on how Spain developed both economically and politically. Discuses in greater detail the Spanish labor market and the evolution of unemployment levels in Spain. Also looks at the role of terrorism in a society such as Spain's, with reference to both the Basque separatist terrorism of ETA and the international terrorism associated with the Atocha station bombings in 2004.

Provides an update on CEO Michael Armstrong's "Project Grand Slam" strategy to build the value of AT&T by offering a complete, integrated telecommunications solution to both corporate and residential customers, including wireless and wire line telephone, Internet, cable television, and network management. By July 2004, AT&T sold its cable business to Comcast, sold its wireless business to Cingular, and was downgraded to junk bond status. Soon thereafter, AT&T announced that it would abandon its local telephone service due to a ruling by the FCC that made them uncompetitive as resellers. The strategic question is whether AT&T can find ways to grow and create value for its shareholders, or is it time to sell out to one of the RBOCs?

JetBlue will begin flying out of Boston's Logan Airport-and American Airlines was feeling the heat. JetBlue was growing eight times faster than Southwest Airlines, the longtime leader among low-cost carriers, and the rapidly expanding low-cost segment of the industry-30% of all U.S. flights, projected to rise to 40% by 2006-presented an increasing challenge to the "major" airlines. For American, JetBlue's entrance into Boston via Logan signaled a moment of reckoning. Should the airline opt for a standard competitive response, such as price reductions and frequent flyer programs? Should it take on JetBlue at Logan only, or across all the markets where it would compete with the low-cost challenger? American must weigh the importance of the Boston market in its overall economic picture and the potential responses of other airlines to whatever action it takes. This case reviews the economic conditions affecting the airline industry; the business models of three main types of airlines-major, low-cost, and regional-and their strengths and vulnerabilities in terms of recent competitive market conditions. The B case involves American's counter-attack and the C case the responses of other airlines and JetBlue, including an examination of the resulting financial and market costs and benefits.

The entrance of JetBlue into the Boston area low-cost carrier market in 2004 is viewed as a direct attack on Major airlines and prompts American Airlines to decide whether or not to respond and if so, how to respond. American, already weakened financially, cannot match JetBlue's prices and remain profitable. It must weigh the importance of the Boston market in its overall economic picture and the potential responses of other airlines to whatever action it takes. This case reviews the recent economic conditions affecting the airline industry; the business models of the 3 main types of airlines--Major, Low-Cost Carriers, and Regionals--and their strengths and vulnerabilities in terms of recent competitive market conditions; and the economic role airports play. This case is divided into 3 parts: A, B, C. The B case involves American's counter-attack--a free ticket promotional offer from American on the day JetBlue opens. The C case discusses the responses of other airlines and JetBlue and a preliminary analysis of the fallout: resulting financial and Market costs and benefits. See related cases (A case: UV3906; and C case: UV3909).

The entrance of JetBlue into the Boston area low-cost carrier market in 2004 is viewed as a direct attack on Major airlines and prompts American Airlines to decide whether or not to respond and if so, how to respond. American, already weakened financially, cannot match JetBlue's prices and remain profitable. It must weigh the importance of Boston market in its overall economic picture and the potential responses of other airlines to whatever action it takes. This case reviews the recent economic conditions affecting the airline industry; the business models of the 3 main types of airlines--Major, Low-Cost Carriers, and Regionals--and their strengths and vulnerabilities in terms of recent competitive market conditions; and the economic role airports play. This case is divided into 3 parts: A, B, C. The B case involves American's counter-attack--a free ticket promotional offer from American on the day JetBlue opens. The C case discusses the responses of other airlines and JetBlue and a preliminary analysis of the fallout: resulting financial and market costs and benefits. See related cases(A case: UV3906; and B case:UV3908).