Examines major issues faced by Eli Lilly as it evaluates the appropriateness of a focused matrix organization with extensive use of cross-functional teams.
Sirona, the dental systems business of Siemans AG is being sold through an auction. In September 1997, buyout firm Schroder Ventures has to decide whether to make a binding offer for the business. Schroder has done extensive due diligence with support from a team of consultants. There seems to be some unrealized growth potential as well as room for cost reduction at Sirona. But there is also considerable uncertainty around cost reduction and growth scenarios. Furthermore, there seem to be problems at Sirona subsidiaries abroad. Finally, the financing will depend on the feasibility of a high-yield offering, a first of its kind in Germany.
The Disco chain of supermarkets has pursued a successful local niche strategy in Argentina to compete with intense competition from multinational chains. Now Disco considers options for expanding its regional strength.
Describes the history and current situation in the retail pharmacy industry, including competition from new merchants and Internet drugstores. Eckerd, one of the top four drug chains, must decide how to position itself for the future.
exciting mystery movie. Walsh has the final say on the development and production of movie scripts for major box-office release. This new movie idea, like so many others in the film industry, is risky. It could become a blockbuster hit, but it could also become a costly failure. Alternatively, Anderson could recommend that Walsh forgo production of the movie drama and use the studio's currently available resources to produce a film from another script for Home Box Office (HBO). Anderson has to determine the best use of the studio's current production resources. The HBO option would provide fairly certain profits. Conversely, a huge hit at the box office could put High Places on the map as a major contender among the Hollywood studios, but a flop could incur significant losses, which High Places could ill afford. See also the B case, UVA-QA-0547.
In the B case, a question arises concerning what type of contract to offer the film's star. Should the studio offer a standard fixed-fee contract, or should it offer a smaller fixed fee plus a percentage of the gross? Moreover, which alternative would the star prefer? See also the A case, UV6214.
After years of success with its vaunted "Direct Model" for computer manufacturing, marketing, and distribution, Dell Computer Corp. faces efforts by competitors to match its strategy. The case 'Matching Dell' describes the evolution of the personal computer industry, Dell's strategy, and efforts by Compaq, IBM, Hewlett-Packard, and Gateway 2000 to capture the benefits of Dell's approach. Students are called on to formulate strategic plans of action for Dell and its various rivals.
Tells the story of Snapple's rise and fall, and poses the question "Can it recover?" Many soft-drink brands flourished in the 1980s serving New York's Yuppies, but only Snapple made the big time. It went from local to national success and was poised to go international when the founders sold out to Quaker. The brand proved harder to manage than Quaker anticipated and in 1997 was sold for a fraction of its acquisition price. The case presents factors accounting for the growth and decline and provides a qualitative study of the brand. What action should the new owners take?
Several large Canadian public companies announced their intent to merge and use the pooling of interests method rather than the traditional purchase method. Pooling had been rarely used to account for business combinations in Canada. The case focus is on an analyst who wanted to ensure that she understood the differential impact of both methods so that she could more fully represent her clients' interests. She decided to use an analysis of the recent merger of TransCanada Pipelines and NOVA Corporation to help her better understand and evaluate the two alternative accounting methods and their impact on the financial statements.
The Acer Group is one of the world's largest PC and computer component manufacturers. The vice-president of Global Operations is pondering whether the timing and environment is conducive for Acer, based in Taiwan, to commence full-scale manufacturing operations in the Chinese mainland. Students are asked to examine the criteria on which Acer should base their decision to manufacture overseas, and in so doing, create the framework for a corporation's global manufacturing strategy. The teaching objectives also include having students consider the political, economic and social environments of a global manufacturing strategy. A related case entitled Acer Group's R & D Strategy - The China Decision (9A99M007) is also available.
Describes the evolution of Zucamor and its business strategy, particularly after the opening of the Argentine economy in 1992 and 1993. Traces the action that led to its association with U.S. paper giant Union Camp. Poses some of the critical challenges faced by the company's new management.
Cameron Sawyer, CEO of Sawyer & Co., seeks financing for a shopping center he is developing in Moscow. The case describes the opportunities and challenges of doing development in Russia.
The Melbourne City Link, a $2 billion privately-funded highway project, was one of the first fully electronic toll roads in the world. While the government of the State of Victoria specified this innovative tolling system in the tender for the project, it left the implementation and administration to the consortium that was selected to finance, design, build, and operate the highway. This case allows students to focus on the financing of a large-scale privately financed infrastructure project through the capital markets. It is designed to teach students about the allocation of risks that are customary in project financing arrangements where lenders have limited or no recourse to the project sponsors. By analyzing the deal structure, students can assess how specific risks were allocated to the project sponsors, construction contractors, equity investors, the banking syndicate, and the government. HKS Case Number 1539.0
In 1996, the government of Brazil attempted to sell the large, federally-owned power distribution company in Rio de Janeiro to private investors. The competitive auction for Rio Light was being heralded as a test of the entire Brazilian privatization program, which had been under criticism in the domestic and international press for its slow pace and lack of results. As the auction date draws near, the Director of Electricity Privatization at the Brazilian federal development bank is worried that the minimum-asking price for Rio Light was too high. The case presents pro-forma financial information and can be used to discuss the relevant factors for the valuation of a state-owned enterprise and the measures of success for the auction. HKS Case Number 1540.0
This note discusses organizational culture, distinguishing among surface-level artifacts, formal and informal practices and norms, and deep-seated assumptions and values. The typology can be used to perform a cultural audit of a group or organization.
This note discusses rewards in organizations. Theories of individual motivation to perform are addressed, as are ways of analyzing organizational-reward distributions. Recent reward-system innovations are mentioned, and a decision tree for assessing performance issues is included.