The vice-president of an American logistics services provider considers establishing this service in Mexico where the logistics market is controlled by the banks and is very underdeveloped. He must decide whether to establish a greenfield operation or enter a joint venture. Issues of target segments and positioning also needed resolution.
Describes the development strategy followed by Korea under the leadership of Park Chung Hee as well as the reform efforts embarked on by his successors.
Heartport, an entrepreneurial medical device maker, has introduced several innovative systems for conducting less-invasive cardiac surgery. Despite initially high expectations, the company has struggled to get its technology adopted by cardiac surgeons. The company's newest CEO, the third in less than four years, must figure out how to turn around the fledgling company. This case describes Heartport's method of performing minimally invasive cardiac surgery as well as rival techniques for treating cardiovascular disease. Describes the evolution of the company, its product strategy, and its fortunes over the period 1991-99.
What is the relationship between good fortune, professional success, and a moral obligation to other people? Jai Jaikumar, who as a youth was saved by a shepherd woman after a tragic mountaineering accident in the Himalayas, and who later rose to the top of his professional domain, believed that good fortune, success, and obligation were necessarily and inescapably connected. This case recounts the extraordinary true story of Jai's mountain fall and subsequent rescue. Contains remarkable parallels to the HBR classic The Parable of the Sadhu, except that here we learn the opposite perspective, with the story revealed through the eyes of the foreigner in distress who must place his fate in the hands of a stranger.
What is the relationship between good fortune, professional success, and a moral obligation to other people? Jai Jaikumar, who as a youth was saved by a shepherd woman after a tragic mountaineering accident in the Himalayas, and who later rose to the top of his professional domain, believed that good fortune, success, and obligation were necessarily and inescapably connected. This case describes Jai's understanding of the moral implications of his rescue, and its particular relevance for his subsequent professional success and ultimate appointment as a professor at Harvard Business School. As a teacher, Jai encouraged each of his students to ask the questions that he asked himself: How did you get this far in life, and what does this mean, if anything, for your duties to others?
Introduces students to negotiations between venture capitalists (VCs) and the limited partners who provide the VCs' capital. Also discusses negotiations between VCs and other VCs, including those within a VC firm itself. Explores interests, sources of negotiating power, barriers to reaching agreement, and common contractual terms. Describes how the parties try to reduce information asymmetries, align incentives, control decision making, and protect financial downside.
In 1995 McDonald's was the largest restaurant chain in the United States with domestic sales of almost $15.9 billion. McDonald's was also the country's fourth-largest advertiser, spending $490 million on measured media in 1995. On May 9, 1996, the company introduced the Arch Deluxe, a quarter-pound hamburger that was the first in a planned series of sandwiches targested to adults. By the end of May, McDonald's had sold or given away 100 million Arch Deluxe burgers. Despite this success, in the second quarter of 1996 some store sales at McDonald's restaurants declined slightly from the same quarter in the previous year. Thus McDonald's faced several key decisions. Should the Arch Deluxe burger be modified? What changes, if any, shoud be made in the marketing campaign? Should McDonald's proceed with plans to introduce fish and chicken line extensions?
This note addresses the methods used to value companies in an M&A (mergers and acquisitions) setting. It provides a detailed description of the discounted-cash-flow (DCF) approach and reviews other methods of valuation such as book value, liquidation value, replacement cost, market value, trading multiples of peer firms, and comparable transaction multiples.
Presents the story of a music retailer in Miami which started in the late 1940s, grew throughout the 1960s and 1970s, and went public in 1985 before experiencing a deep industry crisis in the mid-1990s. At issue in 1996 is whether the company should attempt to sell again after an aborted sale attempt two years earlier. Should the owners try again to sell before the industry economics become so unattractive as to make a future sale impossible? Or should they hold out, try to improve performance, and then try to sell in a couple more years? This question is asked against the backdrop of a strong history as a family-owned company. Martin Spector, the company's founder, has turned the company over to his daughters, Ann (CEO) and Roz (COO), who still defer to him on major decisions. In the context of the important decision of whether to sell the company, the family dynamics take center stage.
Explores the reasoning behind the final decision to sell and the decision-making process that leads to the final question of "if so, to whom?" Four of the bidders are music retailers and the fifth is a Tampa entrepreneur.
Describes the evolution of Microsoft's human-resource philosophies, policies, and practices and how they used as a core of the company's competitive advantage. In particular, the focus is on how Microsoft tried to retain its ability to recruit, develop, motivate, and retain first-class talent as it grew from a start-up to a global behemoth. Triggered by high-profile, senior-level departures in 1999, the company must decide if it is time to change its "hard core" culture came to be.
After his first year at MIT's Sloan School, Jonathan Seelig left to cofound Akamai Technologies. He reflects on his transition from the university to the Internet economy.
When Starbucks made coffee hip, its success set off a chain reaction of innovation that boosted the whole category's profits. New research shows the same phenomenon at work in other markets, but the effect can work in reverse as well.
The state of the art in auctions is not on the Web--it's in the venerable flower auction halls of Holland, where over 30 million flowers change hands in 60,000 transactions every day.
Data show that the top-selling drugs today are not the products of breakthrough science. That's why drug companies need to learn the lessons of marketing that consumer-goods manufacturers know so well.
The federal Equal Employment Opportunity Commission is the agency charged with investigation of non-criminal complaints of civil rights-related violations in the U.S. workplace, including racial and gender discrimination. This case describes the agency's efforts to reform its internal procedures do as to deal with a staggering backlog of complaints--nearly 100,000--and up to 19-month waits for resolution. It focuses on key strategic decisions which must set the stage for greater efficiency--particularly the issue of whether every complaint must be processed in the same manner, of whether the agency should find ways to concentrate its effort on complaints judged somehow to be more significant. HKS Case Number 1562.0
When Paulo Renato de Souza accepts an appointment to become Brazil's minister of education, he faces extreme challenges. Public education in Latin America's most populous nation is widely viewed as a failure. Brazil's vast population of poor children often attends schools that are both physically inadequate and have inadequate textbooks. His own department has seen a parade of ineffective leaders and has only indirect authority of state governments responsible for primary education. HKS Case Number 1571.0