This case provides the presentation slides from the Six Sigma project undertaken to decrease the patient wait time in the emergency department of an academic medical hospital. The various phases and tools of Six Sigma are demonstrated, and the project's pilot results are shown. The case also provides slides covering an overview of Six Sigma. The presentations are useful for both executives and students who are studying Six Sigma methodology. See also the A (UV0339) and B (UV3523) cases. The teaching note UV0340 is available for the (A-C) cases.
A team of private equity investors must value the leveraged buyout of a Yellow Pages business that operated in both the United States and the United Kingdom. In the process, they must wrestle with issues of how to conduct cross-border valuations and how to value a stable cashcow business along with a growth business. The case analyzes the economics and incentives of carried interest and compares different valuation methods--Capital Cash Flow and Free Cash Flow.
Describes the process that the firm employs to allocate resources to new product development projects. Examines whether the firm can sustain its competitive advantage given its existing game design process.
This note provides background information on alternative approaches to evaluation in the workplace. Presented is a discussion of 360-degree feedback; the arguments for and against its use; and some of the requirements for effective application. Also presented is a discussion of the balanced scorecard; its benefits and main sources of failure; some potential measures; and the relationship to strategy maps, the links it can create within the organization, and the need to link it to rewards. This note is intended to be used in conjunction with sessions on performance evaluation and rewards.
The operations manager of a custom kitchen cabinet manufacturer wants to improve the efficiency and cost-effectiveness of the company's production line. He plans to purchase a computer numeric controlled router, but must decide whether to purchase a new or a used machine. He must also decide on changes to the cabinet manufacturing line to ensure that the plant's capacity will meet forecasted demand in the upcoming year.
This note is a discussion of the major considerations for a marketer faced with implementing a marketing plan. A five-part framework is offered to integrate concepts ranging from capacity of the marketing team to managing commitment to change.
Warners Inc. is a world-leading packaged goods company that supplies a large number of packed goods to Marshalls International Inc., a leading mass merchandiser. The health and beauty category manager at Warners has been asked to examine its hair care category for opportunities to allow Marshalls to achieve leadership position in the category among its competitors. He must examine the leading retailers in the category and their marketing strategies, and compare them against Marshalls' strategy.
This note provides background information on alternative approaches to evaluation in the workplace. Presented is a discussion of 360-degree feedback; the arguments for and against its use; and some of the requirements for effective application. Also presented is a discussion of the balanced scorecard; its benefits and main sources of failure; some potential measures; and the relationship to strategy maps, the links it can create within the organization, and the need to link it to rewards. This note is intended to be used in conjunction with sessions on performance evaluation and rewards.
The owners of Country Paws Boarding Inc., a large boarding facility for dogs, customarily took every opportunity to get to know each dog's likes, dislikes, behaviors and tendencies in order to minimize separation trauma. This required ongoing dialog with each dog owner and observation of each canine. The owners were always eager to chat with those boarding their dogs at Country Paws in the hope of identifying potential new services and improving existing offerings. In response to dog owner expectations for canine socialization and recreation, new offering being considered was the community playground. They must determine how this offering would fit with their current line of services and what other services were worth considering.
The operations manager of a custom kitchen cabinet manufacturer wants to improve the efficiency and cost-effectiveness of the company's production line. He plans to purchase a computer numeric controlled router, but must decide whether to purchase a new or a used machine. He must also decide on changes to the cabinet manufacturing line to ensure that the plant's capacity will meet forecasted demand in the upcoming year.
Non Stop Yacht S.L. is a Web site that provides e-commerce service to the mega-yacht industry. Originally, the founder had planned to run Non Stop Yacht as an internet business. However, success with this business model is proving elusive and investors are growing restless as performance continues to fall short of the business plan. Substantial pressure to improve the company's performance had the founder considering a variety of alternative business models that would enable him to more effectively capture value from the concept of non stop parts procurement for high-end yachts. These options involve key decisions about the strategic positioning of the company and the relative advantages and disadvantages of pursuing strategic alliances with players at different points in the industry value chain.
By using standard components, Compaq's supercomputer line, known as the Alpha Server SC, attempted to avoid some of the risk associated with supercomputer development. However, more than five years after unveiling its first supercomputer, known as Turbozilla, Compaq's High Performance Technical Computing Group had yet to make a profit, despite rapidly growing demand. The bidding process for large government contracts typically resulted in discounts of up to 70 per cent, leaving little, if any, margin. More importantly, some Compaq managers had become anxious that HPTC systems had begun to consume significant company resources. Alpha servers that had previously been allocated to high margin commercial customers were increasingly being diverted to zero margin supercomputers. Highlighted is the stage by stage process of developing a new product development organization. In doing so, it demonstrates that an important capability and competitive advantage for effective knowledge transfer in global new product development is the ability to construct a network of relationships that are built over time, that lead to the creation of social capital, and that are strong and extensive enough to inhibit duplication by others. Supplement Compaq High Performance Computing (B), product 9B03M042 is available.
Daimler-Benz AG, a large automobile manufacturer in Europe and the Chrysler Corporation, one of the Big Three auto makers in North America have merged to create DaimlerChrysler. On the surface, everything seemed to be going as planned. In reality, all was not well. Organizational changes, conflicting information, and doubts about the future structure of the company resulted in the departure of numerous Chrysler employees, including many mid-level managers and engineers. While initially amalgamated into Daimler, the Chrysler Group ended up as one of three separate automotive divisions. In 2001, DaimlerChrysler recorded a $1.2 billion loss in operating profit (before one-time effects). Estimates for 2002 called for a break-even result, but the company was facing a $9 billion lawsuit filed by the fifth largest shareholder, who claimed that Daimler had deceived investors by touting the venture as a merger of equals.
Kismet Inc. was a rapidly growing distributor of tools and hobby products that focused on selling lower-priced tools through mobile tool shows. The president and treasurer of the company projected a need for funds to finance the company's rapid expansion. The partners wanted to have all the necessary information for the financial institution's account manager when they presented their financing plans.
The investment manager at Burgundy Asset Management had been given the responsibility to assess the investment opportunity presented by Wescast Industries Inc., a large automotive parts supplier that specializes in the design and manufacture of the exhaust manifold for all types of vehicles. The investment manager knew that his investment team would expect a detailed analysis of Wescast and a recommendation on the investment opportunity. He realized that he must move quickly in order to complete the analysis and prepare a preliminary recommendation for his team at the meeting the next week.
Describes the financing and growth decisions facing Direvo, a young German biotech firm with a customer/partner that wants to become an investor. Also discusses the business model for Direvo's directed evolution technology, with applications in both industrial enzymes and pharmaceutical products, either through partnerships or its own product development, with very different risk/return structures. The resulting hybrid business model is a constant source of discussion between the Direvo management team and the lead investor, Techno Venture Management. How should Direvo extract value from the spectrum of business options to develop an optimal exit strategy?
Explores the success factors leading to one's company's rise to the number three ranking in the aggressively competitive toy industry. LeapFrog has made the strategic decision to exploit its educational model in two industry sectors: consumer toys and educational supplemental materials. Senior executives face a number of challenges in sustaining the company's growth. Critical to its success is LeapFrog's ability to leverage its core assets, while simultaneously closely managing its relationships with customers, distributors, suppliers, and partners across these two very different industry sectors.
Electronic Arts (EA) is a highly successful creator of video games for consoles and PCs. The company also creates content for online gaming. EA occupies a unique place in the information processing industry. The company must have the skills of a Hollywood studio to create compelling content, while at the same time negotiate the technological change and uncertainty associated with the platforms (e.g., consoles, PC, Internet) used to operate and distribute the games.
The CFO of this infant nutritional products company must choose among competing financing offers. The interplay of Chinese legal and customs restrictions and venture capitalists' bargaining techniques challenge the CFO to navigate a tricky negotiation and to devise a unique business model given these constraints. The case provides a valuation exercise and highlights some of the difficult questions a discerning venture capitalist might ask, requiring the CFO to justify his overall business model and working capital needs. To obtain executable spreadsheets (courseware), please contact our customer service department at [email protected].