Paul Fletcher, CEO of CDC Capital Partners, a private equity group investing in the world's poorest countries, is wrestling with questions raised by the imminent reorganization of the firm. Previously an arm of the United Kingdom's international aid agency, CDC is becoming a public-private partnership, which requires that it refocus its efforts and rearrange its widespread portfolio into a form that outside investors will recognize. The proposed organization, separating government money from fund management, appears to solve a number of the problems from a strategic perspective, yet a host remain. Given the generally poor risk/return ratio of emerging market investing over the past decade, Fletcher and his executives must decide how they can position their organization to compete with other investment vehicles and still remain true to the mission of mobilizing capital to invest in poor countries.
Salesforce.com evolves from a fledgling start-up to a leader in the provision of Web-based management systems. Throughout its growth, the management team faced several strategic decisions, which resulted in the development of new products and the entry into new markets.
In 1997, Compaq Computer was locked in price competition with industry leader Dell. Although Compaq sought to escape difficulty by acquiring Digital Equipment Corp., a maker of more lucrative servers and minicomputers, in 1998 the simultaneous effort to remain a competitive PC maker while transforming itself into a full-service computer firm proved arduous.
Harlequin Enterprise, a well-known publisher of series romantic fiction, is facing threats to its leading position as the world's largest romance publisher, posed by the growing popularity of single-title, women's fiction novels. Harlequin was the dominant and very profitable producer of series romance novels, but research indicates that many customers are reading as many single-title romance and women's fiction books as series romances. Facing a steady loss of share in a growing total women's fiction market, Harlequin convened a task force to study the possibility of relaunching a single-title, women's fiction program.
Given the prevailing sentiment over the ineffectiveness of vertical integration, it is surprising how resilient this type of strategy has proven to be. Shedding more light on its continued appeal in today's business environment, the argument here holds that such popularity marks a departure from traditional motivations based on manipulating industry structure or minimizing transaction costs. Instead, contemporary vertical integration, especially downstream integration of the customer interface, is motivated by the associated learning benefits.
A new frontier of innovation exists where economic and population growth collides with natural systems (the environment). This note details the changing character of environmental issues and outlines the opportunities for entrepreneurial thinkers. It provides excellent fodder for discussion of sustainability as an opportunity for corporate innovation.
Fashion retailer ZARA has achieved spectacular growth via a distinctive design-on-demand operating model. This case describes this model and outlines a number of challenges facing the company, with a particular emphasis on its international expansion. Includes color exhibits.
The National Parks Conservation Association seeks to help the U.S. National Park Service increase its efficiency by incorporating principles of business management so that American national parks will be better managed. Its efforts raise fundamental questions about the roles of government, firms, and nonprofits in a mixed capitalist economy as well as the appropriate differences in managerial practices across sectors.
DigaMem is a semiconductor firm with a promising new technology, but its CEO faces a difficult financing problem. He is considering issuing a new security: a floorless convertible bond, also known as a "toxic" convertible.
This case examines the equity options market and studies the major parties involved and the options trading process. It takes an in-depth look at the path taken by the International Securities Exchange as it entered a mature exchange industry and transformed itself into a major competitor. The concepts of liquidity and transaction costs are presented.
Describes the sales, marketing, and operating issues facing Threshold Sports, a small cycling event management company that produces the Pro Cycling Tour. Examines the issues facing the company as it approaches breakeven and attempts to grow the business substantially. The company must balance its growth objectives with a series of internal and external challenges. These include expanding the event to more cities, selling more sponsorships, expanding the TV coverage, and developing new revenue streams.
Brian Larcombe, CEO of 3i Group, one of the world's largest private equity firms and one of the few publicly listed ones, is deciding how best to use his firm's international network to deliver superior returns to shareholders. This case presents 3i's history and international strategy.
A major U.S.-based fast food company with extensive operations around the world was contemplating whether to enter the Korean market. The Korean fast food market was hit badly by the Asian economic crisis in the late 1990s, but the economy was turning around. Thus, fast food demand in Korea was expected to increase. For the industry analysis, this case provides information on various competitors, substitute foods, new entrants, consumers, and suppliers. Also includes social issues as potential forces.
Cisco Systems' relentless pace of acquisitions between 1993 and 2000 ground to a halt in 2001, with Cisco buying only two businesses that year. By September of 2002, it had acquired Hammerhead Networks and Navarro Networks for $258 million in stock and planned to buy Andiamo Systems for up to $2.5 billion. Market conditions may have shed light on cracks in its acquisition methodology, but the most profound change, according to CEO John Chambers, was the decision to acquire companies at a later stage of product development than previously. Now, a target had to have a proven product, customers, and management team before any transaction was considered. The (B) case includes a brief update on the company and financials up to July 2002.