In early 1999, Calpine Corp.'s CEO Pete Cartwright adopted an aggressive growth strategy with the goal of increasing the company's aggregate generating capacity from approximately 3,000 to 15,000 megawatts (MW) by 2004. He believed there was a fleeting opportunity to repower America given the inefficiency and age of current generating capacity as well as the recently granted ability to compete in wholesale power markets. To achieve the new goal, Calpine will have to build or acquire as many as 25 power plants at a total cost of $6 billion (approximately $500,000 per 1,000 MW). For a company with assets of $1.7 billion, a subinvestment grade debt rating, a debt-to-capitalization ratio of 79%, and an after-tax cash flow of $143 million in 1998, raising this much money was going to be a formidable challenge.
Cisco has invested in building a leading IT, Internet-based infrastructure. This case describes Cisco's latest efforts to broaden Internet capabilities in the company from 30% to 60% penetration. The strategy is intended to sustain Cisco's double-digit revenue growth through the decade.
SalesDriver is a start-up company that develops online software packages for sales incentive contests. The vice president of marketing and distribution, who was also a company founder, considers how to address the challenge of retaining key employees in the growing high-technology industry, where employee turnover is very high.
The newly promoted director of sales and marketing at CXP, a publishing company, has just inherited an employee conduct issue. In her previous position she became aware that a sales representative was having sexual relations with the company's clients, but the company's president was dealing with the issue. In her new role she discovers that issue still persists and this employee now reports to her. She realizes that this was a 'hot issue' and needed to determine the best way to handle the situation. There was more to consider than just dealing with the employee, there was the company's relationship with their clients and she did not want to put this in jeopardy.
The director of sales and marketing at CXP Publishing discusses with the marketing director how she is going to handle a difficult employee conduct issue, that of a sales representative who is sexually involved with some customers. Her approach to resolving the situation was going to take time, until another incident occurred, when she realized that she would have quickly change her plans. This is a supplement to the CXP Publishing Inc. (A) case (product number 9B01C004).
To resolve an employee conduct issue, an employee engaging in sexual relations with customers, the director of sales and marketing at a small advertising firm coaches the employee to develop a more professional image. Using discussion and reinforcing positive behavior, the employee and the company both benefit. This is supplement to the (A) case, (product number 9B01C004) and (B) case, (product number 9B01C005).
SalesDriver is a start-up company that develops online software packages for sales incentive contests. The vice president of marketing and distribution, who was also a company founder, considers how to address the challenge of retaining key employees in the growing high-technology industry, where employee turnover is very high.
Rose Jones is the stores clerk in a departmental supply room of a multidepartment, government-funded organization. She must decide what to do about a call from a potential supplier who seemed to be offering her a significant personal gift for placing an order.
Far Eastern Textile, a major Taiwanese textile and telecommunications company, is considering its options for raising US$130 million in a new round of global fund raising. The options of a new common stock or long term debt issue are explored but specific attention is paid to an option raised by the company's investment banker. This option entails the issuance of an innovative convertible debt instrument which combines a zero coupon and a significant conversion premium over the current price of the company's common stock. The benefit and costs of a delayed equity instrument for both corporations and investors is examined, as well as issues regarding security pricing in different financial markets.
This case, which can be used in conjunction with the other Monsanto cases, details Monsanto's efforts to introduce genetically modified organisms (GMOs) into Europe in the mid-1990s. Monsanto did not anticipate the European resistance and public outcry based on a number of factors, and company officials ultimately admitted their mistakes in the introduction process. Additionally, the case poses the basic question: How could Monsanto, in its role as a seed producer, have interacted with the international food-supply chain so that its primary consumers had a market outside the United States for their genetically modified crops?
Enables a thorough analysis of Submarino.com, a B2C e-commerce company with a presence in Brazil, Argentina, Mexico, Spain, and Portugal. Examines the company's global operations as well as its organizational design and operating and management capabilities. Considers the company's challenge of determining its strategic and financial priorities as it launches a rapid growth plan with limited resources in 2001.
Examines the strategies and tactics used by U.S. negotiator George Mitchell during his two-year tenure as chairman of the all-party talks in Northern Ireland. His efforts culminated in the signing of the historic Good Friday Accords.
The president of Blinds To Go, a small retail fabricator of custom-made blinds, announces his plans of expanding the business across North America one region at a time. With substantial backing from an investment firm, the business has quintupled its revenues in less than two years and is looking to expand aggressively across the United States. However, the company has experienced significant turnover in its senior management positions. The company struggles with the issue of how to get and keep the senior management talent needed to achieve the growth the company wants.
Blinds To Go, a small retail fabricator of custom-made blinds, is looking to for the best talent it could to help them achieve their aggressive expansion goals. Emphasis was put on establishing internal programs that would groom candidates for senior management positions. Despite the temptation to bring in a vice-president from outside the company, the company believed it was in their best interest to develop and promote talent from within. This is a supplement to the Blinds To Go - Wanted: People To Lead Explosive Growth (A) case, (product number 9B01C002).
Grand & Toy is one of Canada's largest commercial suppliers of office stationery. The president of Grand & Toy is wary of the competitive threat posed by Staples, a well-known U.S. office supply company, and is reviewing his company's budget forecast to plan for a meeting with senior managers. He wants to use this opportunity to rethink the company's strategy and ensure all competitive threats and opportunities have been considered.
Velsicol Chemical Corporation, a global company focused on producing specialty chemicals, has formed a joint venture with the Estonian government called Velsicol Eesti AS that would produce benzoic acid. The plant that will produce this chemical was previously part of a conglomerate owned and controlled by the Russian government. When Estonia became an independent state this plant was passed on to the country which then privatized and sold a percentage of it to Velsicol. The newly appointed plant manager came from a benzoic plant outside the country and was responsible for government relations, cost management, liaison with the board of directors, performance standards and staffing. He must quickly put together a management team that would be familiar with the current operations and capable of working together to achieve the company's goals. In order to do this, he needed to better understand the employees with whom he was working. A follow-up case, Velsicol Eesti AS (B), is available, (product 9B00M008), as well as a cultural note on Estonia, (product number 9B00M014).
A summary of Estonia's history, economics, industry and culture is provided in this note as a supplement to be used with the Velsicol Eesti AS (A) and (B) cases, products 9B00M007 and 9B00M008.
Many firms have implemented company-wide systems called Enterprise Resource Planning (ERP) systems, designed to integrate and optimize various business processes, such as order entry and production planning, across the entire business. Such systems are complex, and implementing one can be difficult, time consuming, and expensive. Limited reports in the popular press suggest that these systems have achieved mixed success at best; some imply that failure of implementation threatens the existence of the company. Here we present an objective view of ERP systems, based on interviews with operating managers, IT personnel, and consultants. The dominant reason for adopting ERP was to simplify and standardize IT systems; the second most common reason was to have access to accurate information. Cost of implementation generally ranged from 1.5% to 6% of annual revenues, with the software portion of the costs being just the tip of the iceberg. Implementation time varied from 12 months to 4 years. Return on investment in ERP was mixed--from 5% to 20%. For all the negative press ERP systems have received, our interviews indicated that all firms represented in our sample were pleased with them, despite some problems. Successful implementations were characterized by thorough senior management involvement, a cross-functional implementation team, clear guidelines for performance measurement, and detailed plans for training users. Importantly, a single ERP system does not provide an end-to-end solution, as most companies use other systems for specialized functions. Overall, though, the future of ERP is very promising.
Examines the extended conflict between free traders and protectionists in 19th century Britain. It culminates with Prime Minister Sir Robert Peel's decision at the end of 1845 about whether to repeal the Corn Laws, a series of acts that had protected British agriculture for almost 200 years. With landowners and industrialists battling fiercely over the issues, nearly everyone agreed that the decision would be momentous.