The new CEO of Provincial Papers, a coated paper manufacturer, was very concerned about the many issues facing the company - including union relations, credibility, reliability, lack of information, lack of communication, poor morale and financial difficulties. He must decide how best to focus his efforts in the short term. This case is a follow-up to Provincial Papers Inc. (A), case 9A99M016.
A Canadian entrepreneur has grown a start-up paper-shredding business to almost $5 million over a nine-year period and he now faces some real internal tension over the future pace and direction of growth. Although he would like rapid expansion, he refuses to sell shares or take on debt. Issues from labor to acquisitions are presented, as well as the difficulties in determining operating strategy while keeping up with day-to-day management.
Senior executives of Nissan and Renault are considering a major investment in Nissan by Renault. An important consideration is whether a major restructuring of Nissan's operations will be possible, given the value placed on lifetime employment and the impact on communities. Also of concern is the likely decrease in commitment to restructure once the equity investment has been made.
When the employees of a Kmart distribution center in Greensboro, North Carolina vote to unionize, they encounter difficulty in negotiating a contract with their employer, which viewed wages and working conditions as in keeping with regional conditions. Ultimately, members of the Amalgamated Clothing and Textile Workers decide that they must enlist public opinion as a means to pressure management. This series of cases describes the tactics they employ-tactics which at first alienate local opinion but which are adjusted in ways that prove effective. The case describes, in particular, the decision to recruit local religious leaders, whose support proves crucial. HKS Case Number 1604.0
When the employees of a Kmart distribution center in Greensboro, North Carolina vote to unionize, they encounter difficulty in negotiating a contract with their employer, which viewed wages and working conditions as in keeping with regional conditions. Ultimately, members of the Amalgamated Clothing and Textile Workers decide that they must enlist public opinion as a means to pressure management. This series of cases (see also 1604.0) describes the tactics they employ-tactics which at first alienate local opinion but which are adjusted in ways that prove effective. The case describes, in particular, the decision to recruit local religious leaders, whose support proves crucial. The case is meant to support discussion of organizing tactics and strategy. Alternatively, it can be used to discuss labor economics, as a vehicle to examine the substance of the Kmart employees' complaints and the counter-arguments mounted by company management.
In the Expo98 (A) case, Julio Cardoso, an INSEAD Alumnus, is being asked to design the ticketing strategy for Expo98. He needs to analyse the objectives for the Expo and to decide what pricing strategy will meet these objectives. He can analyse the results from the Vancouver, Brisbane and Seville Expos. But as each one is different, he needs to decide what is the optimal strategy for Portugal. The (B) case gives an overview of the pricing strategy that was chosen and the results of the strategy and the Expo.
It had been almost a decade since the first article surfaced in the media alleging that factories sub-contracted by Nike in China and Indonesia were forcing workers to work long hours for low pay, and for physically and verbally abusive managers. The article was the seed of a media campaign that created a public relations nightmare for the company. A financial crisis in Asia and intense competition in the domestic market contributed to a decline in Nike's revenue and market share after three years of record performance. Though no direct correlation could be proven between the consumer's negative perceptions of Nike and the company's decline in market share and stock, it certainly did not help in their efforts to establish themselves as the global leader in a hotly competitive industry. A linear overview of the adverse publicity that Nike received, and the perspectives of Nike senior management, demonstrates to students the importance and elements of the timely development of an effective media and consumer relations campaign.
Useful as a background reading to prepare students for case studies about searching for acquisitions, this technical note offers eight guidelines drawn from theories about the economics of information, networks, options, and contagion.
Sotheby's has taken 50% of its business by volume to the Internet. How do the economics change? How do logistics and customer support needs change? What leverage does the Internet provide this established bricks-and-mortar auction house?
In a relatively short period, DuPont innovates stain-proof carpeting, filling its nylon-fiber capacity and increasing profits significantly. MBA and undergraduate students consider how DuPont should approach the fact that competitors quickly introduce their own enhanced stain-resistant products. What actions should it take to keep its hard-won leadership of the carpet-fiber industry. STAINMASTER is the certification given by DuPont to carpets made with the company's own premium nylon and treated with a chemical to repel liquid stains and dry soil. The carpets must also meet minimum construction standards in terms of face weights, yarn twist, and other quality considerations. The introduction of STAINMASTER is accompanied by heavy advertising and trade promotion to establish the brand name among consumers and retailers.
Describes the rationale behind the strategy and structure of Dell Computer Corp.'s VC arm, Dell Ventures. While Dell Ventures had a phenomenal year one, it faced a number of challenges including dealing with market risks, finding and retaining talent, maintaining focus, and gaining the attention of Wall Street.
Brand equity is one of a firm's most important assets. Unfortunately, such intangible assets have received little attention from the financial and accounting communities. This view may now be changing. The focus of the research is on valuating the effect of advertising on brand equity, not only for external reporting but also for internal management and control. Pros and cons of various brand valuation models are examined. Brand asset measurements should address the success of the firm in creating a product, providing marketing support, retaining customers, building brand value, and reducing return volatility. The authors use a calculation called "advertising turnover" to describe the relationship between advertising expenditures and brand value. It indicates how efficiently the firm converts advertising dollars into brand value, and is similar to methods used in financial analysis for determining the productivity of capital assets or receivables. Plotting this calculation over time can distinguish between high-efficiency brand enhancers, low-efficiency brand enhancers, unknown brand future, and brand deterioration. Brand ROI can be broken down into "brand turnover" and "return on sales." Kellogg's brand performance is used as an example of applying the model to evaluate the ability of advertising and market share to enhance brand value.
As products become more complex and global in scope, product development managers rely increasingly on suppliers for help. Limited resources necessitate developing close, long-term relationships with a few of the most important suppliers. But partners often struggle in these relationships because of conflicting needs and objectives. The OEM's wish list consists of providers with scarce resources and capabilities, including turnkey solutions, a shared strategy, and contributions to new product development; support of global product strategies (market knowledge or access and local presence); and minimized risks (assurance of good design, confidentiality, and demonstrated ability). The supplier's wish list consists of rewards for up-front involvement, protected business interests, and a share in the payoffs. OEM and supplier needs can be balanced by honoring the Ten Commandments for their relationships: three for OEMs (don't manage all suppliers equally, realize that good suppliers are hard to find, demand more of suppliers but learn to be a good customer as well); three for suppliers (recognize that competition is getting tougher and broader based, explore new business sourcing arrangements, use speed to alleviate the need to maintain propriety in NPD); and four for both parties (don't let distance hamper performance, keep score, be creative in using capabilities of global partners, and develop and encourage trust).
Must firms compete on all dimensions of value simultaneously? Or can managers pick and choose among market segments and deploy a variety of strategies to meet customer needs? Operational systems cannot simultaneously excel on all dimensions of value--cost, lead time, quality, and flexibility. The authors examine three companies similar in product, geographic location, shop floor equipment, employee skills, and customers; all three firms have survived for at least 20 years and are among the top 25 companies in their industry group. Comparing the three in terms of key strategic advantages, disadvantages, fixed costs, lead time, and employee commitment strongly supports the need to make trade-offs in competing dimensions of value in operations (although all three realize they must satisfy certain industry norms, such as quality and on-time delivery). Thus, not only do trade-offs exist, but they have significant competitive implications--trade-offs are strategic in nature. Eventually a firm hits the "productivity frontier," beyond which it cannot continue to improve all dimensions of performance simultaneously.
The advances of the Internet has enabled some companies to dematerialize their products so that digital versions can be personalized and shipped to customers without the usual logistics costs and delays. Once this is achieved, then the opportunities to provide customers with additional services, or to transform from a product-based to a service-based company, could be tremendous. Traces the experience of Intuit in pursuing its digital channel to sell and distribute its products, the challenges faced in making this migration while managing the physical channel, and the new service opportunities that the company created once the digital channel was in place.
Although most major corporations in the United States claim they are attempting to create a workplace environment reflective of society's diversity (race, gender, etc.), there is a lack of available information describing the successes and failures of their efforts. This note provides a legal and statistical framework for evaluating (1) the federal government's involvement in antidiscrimination efforts, (2) a history of the prevalence and resolution of discrimination claims during the 1990s, and (3) a statistical analysis of U.S. workforce demographics and compensation levels.