Smithfield has become the number-one pork producer and processor in the world--given all the changes in the global agribusiness industry. How does the company develop its future strategy? A rewritten version of an earlier case.
Sendwine.com, an online retailer of premium gifts of wine by the bottle, faced decisions about its growth strategy in mid-1999. Mike Lannon, president and founder, had established his company as a prominent player in an increasingly crowded field. But with success came a difficult choice: How should Sendwine.com spend the venture capital money it subsequently had attracted? Should the company consolidate its niche position in wine gift giving? Or should it aggressively expand into new gift-giving categories under the "Send.com" name?
Discusses global accounting for leases by lessees and lessors with emphasis on U.S. lease accounting standards. A rewritten version of an earlier note.
A U.S. company must decide how to translate its German subsidiary's DM financial statements into U.S. dollars for public and internal reporting purposes. A rewritten version of an earlier case.
Discusses accounting rules for earnings per share measurement. The U.S. approach is described in detail and non-U.S. practices are briefly covered. A rewritten version of an earlier note.
How should America's second-largest pharmacy chain respond to the challenge from online drugstores? What threat does the web pose to bricks and mortar distribution of prescription drugs and the other items that make up 50% of a drugstore's sales? This case describes the purchase of Soma.com by CVS, and its integration into the corporation. A number of tactical questions remain to be answered, and then there is the larger strategic question--why do this at all? Teaching purpose: Issues in the integration of traditional retailing with online channels.
This case illustrates a situation where one male co-worker hears two male colleagues discussing his female coworker in terms that make him uncomfortable. He deliberates on whether to speak up to them or not.
The Hunter Business Group (HBG), a direct marketing consulting firm specializing in reorganizing the sales and marketing efforts of industrial firms, uses integrated customer contact technologies (including field sales, telephone, and mail) as a means of "revolutionizing the face of business-to-business (b2b) direct marketing." The firm operates under the theory that a seller's communications provide genuine value to a customer, and that successful direct marketing programs result in solid relationships, high retention rates, and increased profitability for the customer. This case highlights, in detail, HBG's implementation of its approach for Star Oil's tire, battery, and accessory (TBA) business that has been facing declining market share and profitability in the face of ever-increasing competition.
Describes the creation of the first private equity fund in Nigeria and the fund's potential first investment in GS Telecom, a Nigerian telecommunication service company. The fund's managers are keenly aware that a bad first investment could create a vicious circle for the fund. Thus, whether to invest and under what terms is of crucial importance. Can also be taught as a country case on Nigeria with a focus on entrepreneurship, telecommunications, and venture capital.
The case describes an international agreement to phase out child labor in soccer-ball manufacturing. This high-profile agreement, which resolves major brand manufacturers, has been hailed as an example of socially responsible corporate policy.
Alice in Wonderland (A) showed how the new Managing Director of LVV transformed a trucking company from a "fossilized" and "arthritic" minor subsidiary of a Dutch shipping group into a revitalized organization. The case looks at how her own leadership characteristics, as well as Dutch leadership styles, contributed to the development of an authentizotic culture of trust, affiliation, and meaning for employees, and how the financial situation of the company was turned around as a result. Alice in Wonderland (B) case follows Marike van Lier Lels as she takes on the position of COO of Schiphol Airport. Despite her brilliant previous career successes, her tenure there ends acrimoniously. This case series explores leadership in different contexts, and highlights the management of disappointment. NOTE: Alice in Wonderland (A) was a disguised case, but at the time of writing the (B) case, Marike van Lier Lels gave permission to use her real name.
This is an MIT Sloan Management Review article. When queried, senior executives concurred that conventional theories and business practices do not provide the necessary guidance and support for decision making in a world of change, complexity, and uncertainty. The authors' research on more than 100 companies is the basis of their Delta model, which defines strategic positions that reflect fundamentally new sources of profitability, aligns these strategic options with a firm's activities and provides congruency between strategic direction and execution, and introduces adaptive processes capable of continually responding to an uncertain environment. Describes three strategic options having three distinct economic perspectives: best product, customer solutions, and system lock-in. These strategic options provide a mechanism for defining the vision of a business. The Delta model links strategy with execution by selecting a distinctive strategic position and then integrating it with a company's collective processes. The authors identify three fundamental processes that are always present and are the repository of key strategic tasks: operational effectiveness, customer targeting, and innovation. Strategy must adapt continuously, and implementation must respond to market changes and to greater understanding of the market that becomes apparent only during implementation. A firm's actions must be aligned with its strategic position, and the results must give feedback for adapting the strategy.
The CEO of the Sandvik Group is reviewing the initiatives he implemented to increase the synergies between the six disparate businesses of the Sandvik Group. Specific measures taken by Sandvik's management to increase the level of synergy between the businesses are outlined. In search for synergy, management has experienced many problems and challenges. The main challenge is how to avoid a re-centralization of power while at the same time encouraging employees to act with regard to both their business and the group. The case closes with the CEO wondering how further changes could be made to expand and sustain the search and exploitation of synergies within the Sandvik group. This case can be used as an advanced corporate strategy case, to illustrate concepts such as diversification, synergies, and parenting advantage. It can also be used as a management of change case by putting emphasis on the actions the CEO can take to achieve his stated goals. A follow-up case (9A98M013) is available.
The Mongolian Grill is a concept restaurant faced with a decision of whether to expand its capacity. The manager's objective is to optimize the restaurant's profitability without compromising the dining experience of its customers. This case is intended to introduce students to operations issues in a service environment (as opposed to a manufacturing environment). The concept of line balancing is central to the case. The case is also intended to explore capacity expansion issues and to demonstrate how expansion options can affect capacity, profitability and service quality. The case requires students to conduct a quantitative analysis of capacity and profitability while evaluating possible negative effects on service quality.