Google, a very popular Internet search engine firm, has just announced the launch of Gmail, a free, Web-based e-mail service that allows users up to one gigabyte of storage capacity, more than 100 times that offered by other free services from competitors. In return for free e-mail, Gmail would scan its users' e-mail with the goal of delivering targeted ads. Immediately, privacy groups denounced Google's plans.
The Porsche 911 has long been the face of the company's product line. Over the years, Porsche has added models priced either above or below the 911, but only the lower-priced models have sold well. Porsche seems to struggle between what an executive calls the "pull of the market" and the "tug of brand equity." This case provides an opportunity for students to analyze the optimal breadth of a product line that will balance sales, profitability, dealer satisfaction, and long-term brand health and customer satisfaction.
As traditional television advertisements continue to lose their effectiveness, brand managers are being more pressured to think creatively by going undercover to reach consumers surreptitiously. To capture the attention of jaded, fickle consumers, they are urged to devise below-the-radar approaches that are harder to detect. Examines six stealth marketing techniques and shows how stealth marketing is a viable alternative to obtrusive conventional advertising. Some stealth efforts are so subtle that consumers do not know they are being pitched to. There are emerging ethical and legal issues raised by critics of these techniques. Although some stealth marketing campaigns are setting off alarms with consumer watchdog groups, these techniques will inevitably grow more common. They have a powerful role to play when they are tastefully implemented and respect consumers' intelligence. Brand managers are gambling that the benefits of stealth marketing will outweigh the complaints of its critics.
Sales promotions targeted at consumers (e.g., coupons, sweepstakes, free offers) are becoming a large and growing part of marketing budgets worldwide. Presents a framework that examines the effect of managerially controllable actions--specifically, designing and communicating a sales promotion--on increasing the incentive for different segments of consumers to purchase a product. Sales promotions have three distinct aspects: an economic aspect that provides both incentives and disincentives to purchase a brand; an informational aspect that consumers use to make purchase decisions; and an affective aspect that influences how consumers feel about their shopping transaction, both positively and negatively. How a promotional offer is designed and communicated determines both its information value and its affective appeal, which then enhances or diminishes the attractiveness of the offer beyond the economic incentive it provides. Companies' promotion strategies should attempt to maximize the positive informative and affective aspects, as these can lessen the need for a large economic incentive and thereby increase the promotions' profitability.
Given the rapid increase of Web-based sales, e-services (both pure online and hybrid "clicks and mortar" market plays) face a difficult challenge: What value-added features should they offer to gain market share and profits effectively while realistically considering operational and financial constraints embedded in a perfect market paradigm? Explores similarities and differences in customer values and switching inertia between different customer segments for e-financial services in the United States. Through a national, online, customer-choice experiment involving 2,200 online customers, the authors found that customer values differ widely across segments and online features (such as availability of traditional data-quoting and buy/sell decision support services price, access to a brick-and-mortar retail outlet, and various formats of online accessibility). The results of this study have both managerial and research implications for design and operations strategy development for e-services in other industries as well.
Information systems projects that experience substantial cost and time overruns are common in organizations today. Given their pervasiveness and significant consequences, it's important to understand how to manage runaway projects effectively. To identify specific actions that should be employed as part of a recovery strategy, this article reports on a survey of seasoned information systems consultants. According to these experts, developing a recovery plan, refining the scope of the troubled project, and re-evaluating the leadership of the project team are the most important actions that must be pursued in a comprehensive recovery effort. These and other recommendations by the experts are framed within a crisis management perspective to highlight their potential relevance and impact.
There are still some who consider the phrase "socially responsible business" a contradiction in terms and who feel that the notion of corporate social responsibility is merely a trend and intrinsically suspect. Others believe that this emerging doctrine of deeper and broader accountability for business is deeply pernicious, because it distracts profit-making organizations from what they do best: make profits for their shareholders. Takes the perspective that what matters most is harnessing the power of business to make the world a better place. (Based on a presentation by Jeffrey Hollender at the sixth annual Peterson Lecture on Business Ethics, sponsored by the Center for Responsible Business at the Haas School of Business, University of California, Berkeley.)
After reporting a restatement, firms are motivated to improve their market credibility and enhance their information environment. One potential management strategy is to reach for "lightning rods," receiving substantial media attention: accounting changes associated with increased conservatism and transparency. Such an opportunity is provided in today's market in the form of stock options and variable-interest entities--kin to special-purpose entities, which evoked attention as a consequence of their role in the Enron debacle. Firms sending these high-profile accounting signals are rewarded. An "event-study" approach quantifies the boost in market-adjusted return experienced by the portfolio of firms when they send their signal. This evidence that signaling adds value for stockholders has implications for both policy setters and market participants. Considers from a corroborative and motivation perspective the quality of earnings monitoring analyses and governance "worst boards" listings.
Danfoss is one of Denmark's largest family firms, producing components for a wide range of industrial control activity. Spanning the period 1996-2004, the case begins by looking at Danfoss' globalisation strategy, then focuses on its specific experience and learning in China, before returning to the wider challenges that globalisation in China poses for Danfoss as a whole. The focus is on the Refrigeration & Controls (RC) division, the key Danfoss division to enter China.
Danfoss is one of Denmark's largest family firms, producing components for a wide range of industrial control activity. Spanning the period 1996-2004, the case begins by looking at Danfoss' globalisation strategy, then focuses on its specific experience and learning in China, before returning to the wider challenges that globalisation in China poses for Danfoss as a whole. The focus is on the Refrigeration & Controls (RC) division, the key Danfoss division to enter China.
Case B: An update bringing the reader current with developments in Booz Allen Hamilton¿s knowledge management strategy since Case A. Reinforces and deepens the point that knowledge management is a convergence of at least three factors: an appreciation of knowledge issues, the availability of sophisticated IT technology, and the managerial competence to suitably craft jobs and culture. This case takes the reader through the experiences of Booz-Allen & Hamilton in crafting their knowledge system and dealing with these factors.
In late 1999, India's second largest tea company, Tata Tea, is faced with a highly competitive home market that is about to become more so as impending deregulation takes effect. The company is thus contemplating internationalisation. Tata Tea is grappling with the decision of how to internationalise. It can choose to build its own international brand or, take the opportunity of buying Tetley Tea, the world¿s second largest tea brand, which has recently been put up for sale. Should Tata Tea build its own brand or buy Tetley. If the decision is to buy, how much should they offer?
This is a case about organizational architecture impacting the diffusion of process technologies. The objective is to help students to devise ways to lessen the impact on the organizational benefits of the multidivisional corporation under the context of knowledge creation and transfer.
The case describes the story of three generations of a business family, who owned and managed a beautiful resort. The family story includes traumatic events like: early deaths; suicide; and remarriages and the lack of communication on succession issues. Succession took place in abrupt ways, through death of owner-managers, or threat to sell by their widows. Case (A) describes the history of the family and the business until 1996, when the second generation widow confronts the children with her determination to sell the business. Case (B), to be used after case discussion, explains what happened afterwards.
The case describes the story of three generations of a business family, who owned and managed a beautiful resort. The family story includes traumatic events like: early deaths; suicide; and remarriages and the lack of communication on succession issues. Succession took place in abrupt ways, through death of owner-managers, or threat to sell by their widows. Case (A) describes the history of the family and the business until 1996, when the second generation widow confronts the children with her determination to sell the business. Case (B), to be used after case discussion, explains what happened afterwards.
Bed Bath & Beyond (BBBY) had no long-term debt on its balance sheet. Although many analysts considered BBBY's balance sheet a strength that permitted greater flexibility, some commented on the risks of its growing cash balance. These concerns raised questions about BBBY's capital structure. In early 2004, interest rates were at an all-time low, making it an attractive time to consider issuing debt and executing either a share repurchase or a one-time special dividend. Provides a few capital structure proposals for students to analyze.
In the spring of 1999, Matrix Semiconductor was a young start-up on the verge of what the founders considered to be a major technological breakthrough. For more than a year, the company had focused almost exclusively on the invention of its technology 3-D semiconductor memory chips that would offer acceptable performance at selling prices significantly lower than competitive and substitute products available on the market. As the company neared the completion of its first prototype, the founders recognized the need to create a more holistic business strategy for the organization. Director of Marketing Dan Steere had recently joined the Matrix team. In his new role, he was asked to help define the practical parameters of a 3-D product, choose which markets to pursue, and decide on an appropriate business model for the company. Through an evaluation of the alternatives available to the company, the case explores the importance of strategy and strategic decision making, even in the early phases of a company. Also highlights some of the success factors and pitfalls young companies must address as they prepare to begin focusing on the development of a legitimate new business.
Pat Tallon is the corporate attorney for Monitor Technology's parent company and has been asked to mediate a job-performance conflict between Chris Kerns, the manager of MT Engineering, and Shannon Allen, an engineering-support technician who works for Kerns.
This case requires students to develop an understanding of (1) the nature of various business events, and (2) how such events affect a company's reported cash flows, net current assets, total assets, and net income. The case does not require the bookkeeping activities of recording and posting journal entries; therefore, it provides an opportunity for a managerially oriented perspective focused on the important question, "How will this event affect my financial profile?"