Piaggio, manufacturer of the Vespa motor scooter, faces the decision of whether to outsource production of a new engine. The decision in the A case is couched in uncertainty over the achievable sales volume for the engine, particularly as new and less expensive competitor products are gaining popularity. The case provides an overview of the competitive style of each of the major manufacturers and allows a discussion of core capabilities of these competitors. The B case describes what happens in the market and to Piaggio after the company has built the engine.
Piaggio, manufacturer of the Vespa motor scooter, must decide whether to outsource production of a new engine. The decision is surrounded by uncertainty about the achievable sales volume for the engine, particularly as competitors' new and less expensive products are gaining popularity. The A case (UV1607) provides an overview of the competitive style of each of the major manufacturers and affords a discussion of their core capabilities. The B case describes what happens in the market and to Piaggio after the company has built the engine.
As Monsanto launches Roundup Ready® Soybeans in 1995, its executives must choose a target segment and decide how to position the new product and how to support that position through appropriate tactical decisions regarding price, distribution, and communication. The genetically altered soybeans will not die when sprayed with Monsanto's Roundup, the world's leading herbicide.
Dell Computer Corp. manufactures, sells, and services personal computers. The company markets its computers directly to its customers and builds computers after receiving a customer order. This build-to-order model enables Dell to have much smaller investment in working capital than its competitors. It also enables Dell to more fully enjoy the benefits of reduction in component prices and to introduce new products more quickly. Dell has grown quickly and has been able to finance that growth internally by its efficient use of working capital and its profitability. This case highlights the importance of working capital management in a rapidly growing firm.
After acquiring Greyhound U.S., Laidlaw, Inc. became the principal provider of intercity transit in North America. Nine months later, the board of Laidlaw asked its CEO to resign, citing performance problems and the need to divest certain operations to strengthen its balance sheet. Laidlaw's attempts to enter and to consolidate selected transportation service industries are examined. Something has gone terribly wrong and the search for the reasons pushes back to fundamental issues associated with growth by acquisition and the corporate management of (arguably) diverse businesses. This sets up a discussion of whether the CEO's strategy was reasonable or fundamentally flawed; whether something could have been done earlier by the CEO or the board, and if so, why action wasn't taken; and finally, the prospects for Laidlaw as they look ahead.
Using historical cost and conservatism to identify and value assets, this case explains the criteria for asset reporting in straightforward situations and then examines scenarios where implementing the criteria for recognition and valuation of assets is conceptually challenging. These more complex situations occur when: 1) Ownership or control of a resource is uncertain; 2) The economic benefits from outlays are uncertain or difficult to quantify; or 3) Resource values have changed.
Recording expenses is not often clear-cut and can require considerable management judgment. This case discusses expense recognition in straightforward situations and then considers expense transactions that may be more complex to record. It uses examples that include situations in which: 1) The value of resources consumed is difficult to define; 2) Resources provide benefits for multiple years; 3) Resources are consumed, but the timing and amount of future payments is uncertain; and 4) Unused resources have declined in value.
By examining key criteria for recognizing a liability, this case explores liability recognition in straightforward situations and then examines the most difficult reporting issues in recording liabilities. These often arise when: 1) uncertainty arises about whether an obligation has been incurred; or 2) measuring the value of the obligation is difficult.
This case discusses revenue recognition in straightforward situations and then considers revenue transactions that may be more complex to record. Revenue recognition criteria can be implemented for the following situations: 1) Customers pay prior to delivery; 2) Products/services are provided over multiple years; 3) Credit-worthiness of the customer is questionable; and 4) Money-back guarantees are offered.
Designed primarily to give students the opportunity to evaluate brands by breaking down individual attributes and analyzing performance in these areas. In doing so, students will be able to isolate a brand's distinct characteristics and decide which areas are the most important for improving brand performance.
Margaret McLaughlin has just begun her new appointment as the Dean of Health Professions at the College of St. Catherine in Minneapolis/St. Paul, Minnesota. As an education leader, her charge is to develop Minnesota's health care workforce for the future. She is approached by members of her nursing faculty, who want her to consider launching their very own nurse-practitioner-run clinic. Typically, clinics have been run and directed by physicians. The faculty have suggested four options for the kind of clinic they might run, and McLaughlin must advise them on a course of action. Teaching Purpose: Students will select the kind of nurse practitioner clinic that would be most appropriate for the College of St. Catherine. The analysis will begin by examining the context in which the college is operating and discuss the major criteria that need to be used in making this decision. They will consider the move "up-market" for nurse practitioners' over time, as they have taken on more responsibilities similar in nature to those of a physician. Specifically, students will discuss how nurse practitioners' work has changed over time and the regulations, technological innovations, patient needs, and infrastructure developments that have encouraged this change. Finally, students will debate whether it would make sense to launch their own clinic. They will choose among four options for how the clinic might look, whom it would serve, and how it would be organized.