Henleys, one of the largest electronics companies in the world, started to import domestic appliances and personal care (DAP) products into the Chinese market in 1990. Soon after, Henleys established a DAP manufacturing facility in China and from a pool of three candidates, selected a state-run distributor, Dongxi Co., as the sole distributor in Shanghai. Over several years, Dongxi developed an extensive retailer network for the new DAP market in Shanghai, and the average annual growth rate was 200% between 1990 and 1997. The cooperation between Henleys and Dongxi was productive until 1999, when Dongxi's efficiency slid into decline and many salespeople departed from the company, including the deputy general manager, who had been in charge of DAP distribution. Henleys faced a series of decisions regarding the possible restructuring of the distribution channels in a business environment quite different from that of 1990, when Henleys had made its distributor selection decisions.
In mid-1993, Hutchison Whampoa Ltd. (HWL), a respected company based in Hong Kong, was planning to demolish the Hilton Hotel to make way for a highly lucrative office building. The Hilton Hotel was one of the territory's oldest and best-known landmarks. It was wholly owned by HWL. To proceed with the redevelopment plan, HWL proposed to compensate the Hilton Group for an early termination of its 50-year management contract. The cost for compensation was estimated to be around U.S. $125 million. Before approaching the Hilton Group for the buy-out, the chief development executive of HWL hoped to convince himself and the directors that the deal was necessary and that the redevelopment plan would be beneficial to both the group and its shareholders. This case explains the background to the Grade A office rental market in Hong Kong and provides statistics to illustrate the major trends in the market and causal factors over 20 years.
In the uproar surrounding the accounting scandals and the current crisis of confidence in American business, no one has discussed the role of strategy. But deficiencies in strategic thinking arguably have contributed to the current mess. Kaplan and Norton's balanced scorecard framework exemplifies current thinking because it is widely respected; yet, it is prey to the same deficiencies. The alternative strategic map proposed here rises above these deficiencies, translating into a kind of dashboard that serves both the formulation and execution of strategy.
The realities of putting tactics to work confound people on the corporate firing line every day. Today's tumultuous marketplace and growing business complexities don't help. And frontline managers and employees are the ones facing many of these challenges while trying to make top management dreams a reality. Attention must focus on the critical, yet often neglected, issue of effective tactical implementation, including many of the misconceptions and factors that contribute to its failure or success. Based on an ongoing research program on marketing implementation challenges, five key principles of tactical implementation are highlighted here, followed by eight recommendations to help managers cope with it--recommendations that apply to all aspects of business.
For decades, marketing channel management has been widely written and talked about but never connected with any "real world" business position. What's more, the many articles and textbooks on the topic seldom provide any hint as to who is supposed to be doing all these functions. At last, based on a national study and a systematic review of the literature to find the most likely suspect, we have identified the erstwhile unknown channel manager. It is now up to top management to provide the selection criteria, training, rewards, and respect for this newly recognized position, because it is central to corporate success.
Silverado has raised $50 million and launched its first product: an Internet-based trivia game with innovative software. In a highly uncertain environment, the young management team must decide whether to continue developing the product and whether to branch out into new domains.
Describes the progress of a nonprofit organization, Endeavor, focused on nurturing entrepreneurship in emerging markets. At the time of the case, it has successfully expanded to five Latin American countries and is contemplating the next phase in its growth. Specifically, it must decide how quickly and to which countries/regions to expand. In addition, the organization has been successful in raising money at the local level to support its country affiliates, but has had more issues related to raising the funding for its operations in New York. Thus, a key question is which funding model to use to support these headquarters operations. Includes a good deal of information regarding the prevalence of entrepreneurship in various countries, as well as economic data on a great variety of countries. A rewritten version of an earlier case.
Zipcar is a start-up organized around the idea of "sharing" car usage via a membership organization. This case describes several iterations of the Zipcar business model and financial plan. These iterations include a very early version and a version developed just prior to the launch of the business, as well as data from the first few months of operations. Students are called on to analyze the underlying economics and business model for the venture and to discover how these assumptions are holding up as the business is actually rolled out.
Brookfield Properties is a publicly held, North American commercial real estate company focused on the ownership, management, and development of premier office properties located in the downtown core of selected North American markets. Most of Brookfield's assets are in the United States, with headquarters in New York and an executive office in Toronto. Four of the properties that Brookfield owns are adjacent to the World Trade Center site and on September 11, 2001, the terrorist attacks had an immediate impact on Brookfield employees, tenants, and physical property. With little reliable information and in the face of chaos and human tragedy, the president and CEO must develop an action plan that will ensure the safety of all employees and tenants, deal with grief and suffering, assess the damage, enable the company to return to business as usual, and reassure investors and the media of the company's commitment to restore Brookfield's position of market strength.
This case describes the history of the Red Bull brand and how the company stimulated and harnessed word-of-mouth to build a new product category (functional energy drinks) and brand franchise. The case concludes by asking the reader to consider how Red Bull should react to competitive challenges in the United States. The case was written to foster discussion of nontraditional brand-building strategies and the growing globalization of brands and products targeted toward younger consumers.
Technological and scientific innovation in recent years has opened up much research and development into renewable and alternative energies. Increasing pressure from environmental and governmental groups has led to the investigation of new and cleaner energy sources for the future. This case looks specifically at developments surrounding solar energy, focusing particularly on the possible benefits and market potential of such innovation and the challenges the industry might expect to encounter going forward.
Technological and scientific innovation in recent years has opened many new lines of research and development in the field of cloning. Developments in agriculture and forestry have brought new approaches and methods in crop and forest production, and many more are predicted to emerge in the coming decade. This case looks specifically at developments in tree cloning, looking particularly at the commercial potential of such innovation and the issues and challenges the industry might expect to encounter going forward.
There's a lot more to Six Sigma than its usefulness as a cost-cutting tool. Properly developed and implemented, it can be a powerful and motivating tool for managing an organization. Which is why managers must ensure that Six Sigma is seen as a strategy for achieving business objectives, rather than simply a cost-saving initiative. This noted expert describes what Six Sigma is and is not, how it should be used.
Transparency and trust may be the ideal attributes of the well-governed corporation, but they also play a critical role in organizational behaviour, specifically in determining whether or not an organization's culture will facilitate - or impede - innovation. Just how do some managers and organizations prevent the formation of a culture that supports innovation? And, what can they do to change their behaviour? These authors have some key suggestions.
Behind most downsizing announcements is a viewpoint that sees employees as costs to be cut. Another viewpoint, one that is rarely expressed, sees employees as assets to be developed. These viewpoints are important, not just because they may influence an executive's decision to downsize, but because they usually influence how employees see themselves - and perform. As this author points out, it's almost a difference between assets and liabilities.
In the uncivil workplace, us and them or we and they are distinctions that divide and alienate. In the civil workplace, there are no such elites nor is there a perception that some, executives, for example, have special privileges. Rather, there are programs and policies that promote inclusion and that offer everyone an equal opportunity for personal and professional growth. In the end, civility reigns.
To become flexible, a decided asset in today's global environment of business, a company's infrastructure needs to be like Velcro, cohesive and workable when in place, but capable of being easily re-arranged when circumstances and strategy call for it. But developing a Velcro-like infrastructure requires formidable mastery of the basics. This noted management expert has some helpful advice for executives.
The case describes challenges facing Ranbaxy, the third largest pharmaceutical company in India, as it attempts to move from being a generics marketer, to a player in the branded drugs business. The case focuses on issues relating to the launch of Cifran OD, Ranbaxy's first drug based on a patented new drug delivery system.
Technological and medical innovation in recent years has opened many new lines of research and development in the healthcare industry. Developments in medicines and devices have begun to yield new treatments offering hope to many cancer sufferers, and many more are predicted to emerge in the coming decade. This case looks specifically at the development of customized treatments for cancer, focusing particularly on the market potential of such innovations and the challenges the industry might expect to encounter going forward.