Pepsico, Inc. spanned more than 190 countries and accounted for approximately one-quarter of the world's soft drinks. The vice president of finance for Pepsico East Asia had been collecting data on the firm's proposed equity joint venture in Changchun, People's Republic of China (PRC). Although Pepsico was already involved in seven joint ventures in the PRC, this proposal would be one of the first two green-field equity joint ventures with Pepsico control over both the board and day-to-day management. Every investment project at Pepsico had to go through a systematic evaluation process that involved using capital budgeting tools, such as new present value and internal rate of return. The vice president of finance needed to decide whether the proposed Changchun joint venture would meet Pepsico's required return on investment. He was also concerned what the local partners would think of the project. The final decision would be made after a presentation to the president of Pepsico Asia-Pacific.
An effort to reduce malnutrition in Vietnam provides a surprising business lesson: companies that want to change their employees' behavior may find the solution within their organization.
A good environmental-reporting process can make a firm more environmentally responsible and more competitive--in the marketplace and in the war for talent.
It's tempting to save time and money by negotiating through e-mail, rather than in person or by phone. But new research finds that people can be contentious--even dishonest--when negotiating solely by e-mail.
Some of the best ideas about performance appraisal are coming from the public sector. Government agencies are setting up systems that really can tell the weak from the strong.
Most U.S. companies spend as much on advertising as they earn from their brand, and what do they get for it? Not nearly enough. Ineffective tests and overdelegation to lower-level staff guarantees mediocrity.
Most leaders of new product teams are aware of the complexity of the problem they confront and the changes that must occur before cross-functional teamwork can accelerate new product development processes. Most know, for instance, that promoting cross-functional thinking, collaborative decision making, and concurrent organization of new product workflow are advantageous. Only a select few, however, consistently act on these insights and effect meaningful changes. The differences between more and less effective leaders lies less in what they espouse or profess and more in the process by which they learn and form new visions and develop new ways of defining their behaviors.
Presents a theory about the tools a manager can use to get people to agree on a coordinated course of action and effect change in his or her organization. The extent to which people in the organization agree on the way the world works, and agree on what they want, determines which tools will be most effective.
Examines Charles Schwab's on-line discount brokerage firm and questions whether or not Schwab has effectively balanced the old and new world of stock trading, and has remained a leader between giants like Merrill Lynch and Internet pure plays like E-Trade. Also looks at how Schwab has remained a competitive player with 363 brick and mortar branches while continuing to boost 81% of its trades over the Internet. While major bank mergers began to emerge as dominant online players, Schwab's unique status as a discount brokerage began to wane. In the wake of powerful full-service firms gaining online presence and discount brokerages offering $4.95 trades, how could Schwab sustain its competitive advantage?
Brierley's is an investment company that has performed poorly in the New Zealand market. Management has prepared a report of the intrinsic value of the company's investments.
Bain managing director Tom Tierney is contemplating how best to rotate the office head position between two partners at one of the firm's offices. The case provides background information on Bain's governance structure and Tierney's management style.
At the May 1996 annual shareholders meeting, Alcoa CEO Paul O'Neill reported that Alcoa was making great progress toward becoming a world-class leader, both in terms of workplace safety and profitability. This validated of O'Neill's decade-long emphasis on safety as the company's leading value. Despite these achievements, O'Neill was challenged on Alcoa's treatment of employees in the company's Mexican plants. A Benedictine nun accused the company of treating its workers poorly and systematically violating its much publicized value system. Now, one month after the contentious exchange with the sister, O'Neill considers the report of an investigation team he had dispatched to the Mexican plants and the observations he made during his own visit to the factories. Builds on Workplace Safety at Alcoa (A), a case, in which students learn about Alcoa's efforts to become a safety leader and to wrestle with issues related to changing the physical work setting and the behavior and attitudes of people (employees and managers in that setting). This case is set several years later, after Alcoa has made tremendous progress in safety and profitability.
In April 1998, when the Chinese central government bans all forms of direct selling in China in April 1998, executives at Avon China must decide how to respond. The first direct sales company to enter China after its opening to outsiders, Avon sparked widespread interest in direct selling among the Chinese. Just as Avon is about to complete a new $40 million plant in Guangzhou, however, the government cracks down on local abuses of direct selling by banning all forms of the practice. Avon must decide whether to abandon its traditional business model in the face of these developments.
Focuses on Millennium's strategy to grow and revolutionize drug development through the use of new technologies such as genomics. Describes how Millennium Pharmaceuticals--a fast-growing biotechnology firm in Cambridge, MA--has used strategic alliances to finance the development of technology platforms based on the latest breakthroughs in genomics. As the firm considers developing pharmaceutical drugs itself, they face a number of challenges: 1) Can they revolutionize drug development by making it more predictable, faster, and less costly? 2) How should they select their alliances such that they move closer to becoming a pharmaceutical firm and still attract the funding needed for their strategy? 3) How can they continue to grow rapidly and attract and retain some of the best minds in the pharmaceutical industry?
Presents a framework for determining prices for products and services in concert with the value provided to customers. Discusses methodologies for estimating customer value.
This exercise builds on the ideas and research of Doug Newberg and is intended to help students work through the key elements of his world-class performance model, Resonance. The technical note "Resonance" (UVA-OB-0626) describes the model, which takes an "experience-based" approach rather than a "goal-oriented" one.