Outlines the growth of an innovative diabetes disease management organization from 1994-99. Having demonstrated the success of their model in managing diabetes populations in Texas and New York State, the CEO and president must decide the future strategy of the company and figure out where their core competencies lay. Options include focusing on the current model (which is based on developing strong patient-caregiver relationships and on immediate access to clinical data via database technology), branching into online health assessment tools, or conducting research on health and cost outcomes for pharmaceutical, medical device, or insurance companies. Illustrates the importance of aligning incentives of clinicians, hospitals, and patients to effect behavior change. Students can discuss the types of financing markets in which the company's model will work best, who is best suited to provide this type of disease management, and who should pay for it (e.g., physician, hospitals, pharmacists, insurance companies, or outside providers).
Candace Kendle and Christopher Bergen, the CEO and COO of Kendle International, Inc., are reviewing ways to finance the growth of their privately-owned company. Kendle is a contract research organization that conducts clinical drug trials for pharmaceutical and biotechnology companies. To compete more effectively, Kendle plans to grow through international acquisitions. It is now time to decide whether to go ahead with a full program of two European acquisitions, a large debt financing through Nationsbank, and an initial public offering to repay the debt and provide cash for future acquisitions. The falling stock prices of Kendle's competitors add pressure to the situation. Teaching purpose: To develop skills in designing and implementing an integrated financial and acquisition strategy.
eBricks.com is developing an online marketplace for construction materials. The start-up company faces two decisions: 1) whether to merge with BluelineOnline.com, a firm providing project management solutions for the construction industry; and 2) whether to develop an online marketplace between contractors and distributors or, alternatively, a marketplace between distributors and manufacturers.
Mauricio Santillan, regional vice president for the Latin American division of Microsoft, has introduced a new performance measurement system to help his country managers formulate and control strategy. Microsoft Latin America's priorities are rolling out of an entirely new corporate database software package and devising a strategy to combat software piracy. Santillan uses the measurement system to motivate country managers to establish locally-relevant strategies that will be aligned with the region's global priorities. This case shows how a Balanced Scorecard system can be useful to help managers in emerging markets learn about the importance of strategy and become better general managers. Also illustrates that a strategic measurement system can be implemented even in an environment where reliable data may be difficult to acquire.
Craig Johnson, Venture Law Group's (VLG) chairman, founded VLG in 1993 with a goal of "zero voluntary turnover." In late 1998, Johnson faces the departure of three important partners, prompting himself to ask what VLG can do in the midst of an "economic hurricane" that is luring VLG attorneys to leave and enter dot.com companies.
Describes Williams-Sonoma's development of a third channel of business on the Internet. Describes the strategies for managing changes in the organizational, operational, and technological structure of the company. The new e-commerce division confronts challenges posed by the company's traditional dual-channel (retail and catalog) approach.
How aggressively should an incumbent move when developing an online business that threatens its core product? With Internet competitors taking direct aim at the traditional print newspaper business model, the Boston Globe fought back with its own web initiative, Boston.com. Globe and Boston.com managers face decisions regarding whether and how to cross-sell print and online classified advertising; how to roll out online auctions; whether to integrate print and online editorial staff; and the pros and cons of issuing a tracking stock for the Internet businesses of the New York Time Company (the Globe's parent company). At a broader level, the case raises the question: Are old media companies doomed as the new economy dawns? It introduces the terms "hawk" vs. "dove" to describe businesses that enter the online arena by establishing wholly separate online divisions versus closely coordinating their online and "offline" activities. The case asks: Can employees trained in the traditional business shift to new, digital ways of thinking? Are legacy systems advantages or disadvantages given the need for Internet speed? Finally, what is the value of prior relationships with customers in an environment of disruptive technologies?
Presents a framework for analyzing and conducting negotiations. Highlights the importance of four mutually supporting modes of analysis: diagnosing the situation, shaping the structure, managing the process, and judging success. Key concepts are illustrated through the use of an entrepreneurial negotiation example.
Priceline empowered consumers to "name their own price" for airline tickets and hotel rooms; then it shopped these offers to marketers. Priceline's founder Jay Walker described the resulting transactions as a new ecosystem, that helped consumers realize lower prices while allowing marketers to turn excess inventory into profit and, in so doing, price discriminate without damaging their brands or their published prices. Airline tickets and hotel reservations were only the starting point for Priceline, however. By the end of 1999, Priceline had made inroads into the mortgage, new car sales, and car rental businesses. In November, Walker launched Priceline WebHouse Club to bring the "name-your-price" concept to groceries, with plans to eventually scale WebHouse to include almost every type of retailing. Several pressing issues confront the Priceline WebHouse management team in this case. First, the company had yet to close a deal with any major brand manufacturer. Thus, to satisfy customers, WebHouse subsidized member savings out of its own coffers, which, combined with early consumer success, led to significant losses and cash burn. To continue its customer acquisition, Walker projected that $200 million to $500 million in additional capital would be necessary. Meanwhile, the company confronted questions about where and how quickly it should expand.
Dave Pottruck, president and co-CEO of Charles Schwab Corp. (CSC), is contemplating a piece of news in the June 1, 1999 edition of the Wall Street Journal that was about to send shock waves through the brokerage community: Merrill Lynch's decision to launch online trading on December 1, 1999. Customers at Merrill Lynch would be able to trade online for $29.95/trade or, for a minimum annual fee of $1,500, make as many trades as they wanted. Now that Merrill Lynch had joined the online trading revolution, Pottruck wondered, how would this affect Charles Schwab & Co., Inc. (Schwab), and what should the company do in response? Pottruck observes that Merrill Lynch, E*Trade, WingspanBank, and Schwab, although competing for similar customers, appeared to be doing so from very different starting points. Pottruck considers the competitive dynamics of the brokerage industry and wonders: How can Schwab maintain its growth trajectory in the face of so many, varied competitors? What other firms might enter the space? How could Schwab protect and grow its existing customer base? Was Schwab getting "squeezed in the middle" or could it create a "category of one"?
Explores the development of the Internet in China. Starts with background information on China, the Internet, and several common Internet business models. Discusses regulatory and business obstacles to the growth of e-commerce in China. Finally, presents forecasts and an overview of several leading firms.
After a manager at Owens & Minor, a national medical and surgical distribution company, proposes and develops a formalized activity-based pricing and activity-based management approach to sales and service provision, this case explore the outcome.
Staples.com, the online unit of the U.S. office supplies retailing chain Staples, faces a range of strategic and organizational issues as it accelerates its growth. Should it pursue only existing Staples customers or consumers who do not shop in Staples stores? How quickly should it add services (e.g. legal, payroll, accounting) to its product offering? Which operating functions should be shared between the online units and the core business? Should Staples.com be spun off as a tracking stock?
Citibank Argentina faces a number of questions on how to develop its future strategy in its credit card business. Citibank is the most successful foreign bank in Argentina and is number one in the country's credit card business. To defend its position as leader, Citibank has to maintain its role as driver of the business, since aggressive competition from American Express and others can be expected. However, intensifying competition involves increasing pressure on margins, and the need to tap new (and less secure) market segments to achieve the growth target.
After almost 30 years with an electric supplies company, an international manager feels that it was time to look for new opportunities outside the company. This case is a supplement to the (A) case, 9A99C030.