The case describes the foreign exchange problems faced by Mr. John Christopher, in the spring of 1995. Christopher's company, TCAS, had just been awarded the bid to deliver and install a new management information software system and local area network computer system for a customer in Canada. TCAS is a US-based company with no previous international experience. The company, as a result of the bid award, was confronted with a very large foreign exchange exposure. TCAS has additional problems, including an operating loss in the previous year, and the potential of continuing losses in the current year in the absence of the subject sale. TCAS needs to make a profit on this contract, manage its foreign exchange exposure, and restructure its balance sheet.
This note develops a variety of approaches to sensitivity analysis within the context of a promotional decision regarding a consumer product. Analyses include the development of optimistic/pessimistic scenarios, one-at-a-time sensitivity analysis with a presentation in the format of a tornado diagram, and threshold (break-even) values.
A year had elapsed since Mabuchi Motor Co., Ltd. of Japan, the world's most successful producer of small electric motors, had implemented a new management training program at one of its foreign operations in China. The program had two objectives. First, it was intended to enable the corporation to maintain its strategy of cost minimization by making it possible to reduce Japanese expatriate levels by improving the management skills of local managers in foreign subsidiaries. Second, by overcoming the shortage of qualified Japanese managers, the program would also allow the continued aggressive expansion of production that had become a cornerstone of corporate strategy. The teaching purpose is to illustrate the difficulties associated with transferring a management style and corporate culture into a different national culture.
Chai-Na-Ta (Asia) Ltd. is the Hong Kong-based operating arm of Canada's Chai-Na-Ta Corporation, an integrated ginseng firm. The decision has been made to enter the mainland China market and the general manager must make decisions on the entry city, target market(s), product(s) focus, distribution and pricing. Although he has significant knowledge of the Hong Kong market, he is unsure of the degree to which this can be transferred to the mainland markets. The case pushes the student to develop a marketing strategy in a situation in which there is imperfect market information.
Lexmark Canada is the Canadian arm of Lexmark Inc., the global manufacturer of computer printers and related products. Lexmark Canada had reorganized its salesforce into teams of salespeople to manage regions of Canada. This was a fairly dramatic shift from an individual-based structure and compensation system. There was mixed reaction to the change with the Quebec team recently losing two of its three team members. The case addresses salesforce organization and deployment issues, and the factors that need to be considered in making these decisions. It also demonstrates the linkages between sales management decisions, since in this situation reward and recognition, recruitment and selection, and training all needed to be revisited. Finally, it highlights the current shift to team selling in many industries.
Growth by acquisition (rolling up or consolidating an industry) results in questions about integrating operations, corporate form, financial structure, and management for this company.
How does a high technology firm successfully grow and compete in a market where software may be obsolete in 12 months? Cisco Systems, with annual revenues of more then $8 billion and a market capitalization larger than General Motors, is a leader in the market for computer networking equipment. They have achieved this remarkable success by designing a unique approach to a technology business that is based on people, frugality, and attention to customers. It is a success born out of a winning human resources approach that adds real value to the business.
Summarizes information on the national issue of hiring people from the welfare roles. Organized by topics relevant to business, this note reviews research findings and statistics and poses questions to assist business decision-makers in assessing a company's current or planned involvement in welfare-to-work hiring.
Sheldon Elman, founder and CEO of Medisys Health Group, Inc., a corporate health care services provider, has decided the company needs a web presence. France Mailhot, the vice president of operations, has been given the task of carrying out this idea. In order to do so, she must determine the company's needs with respect to a web site, set achievable, measurable performance objectives, and otherwise see to the implementation and administration of the site. She faces two main challenges: obtaining the necessary information and creating consensus in the organization. The case forces readers to consider the role of the Internet in a service organization's marketing strategy, and the possible impediments that need to be overcome in order to be successful.
P&G has rapidly gained market leadership in Russia with the Always feminine protection brand. The distinctive emerging market strategies employed by P&G are discussed. In planning further market development, the management team faces three decisions: 1) whether to maintain the price premium of Always or to attempt to develop the mid-market through lower priced brands; 2) whether the different marketing strategies employed in different countries in Central and Eastern Europe should be harmonized, especially in light of current parallel importing problems; and 3) whether the feminine protection portfolio should be extended by launching either Alldays pantiliners and/or Tampax Tampons.
In 1997 United CEO Gerald Greenwald was appointed chairman of the national Welfare-to-Work Partnership by President Clinton and committed United to hiring from the welfare rolls. A welfare-to-work recruitment program was rapidly established and soon followed by a mentoring program. These programs were successful--United surpassed its welfare-to-work hiring targets and attained higher retention rates. With a decreasing supply of employable welfare recipients, however, the question was whether Greenwald and United could continue to provide corporate leadership in the welfare-to-work arena.
In 1991 Marriott International established a program called Pathways to Independence to recruit and train people from the welfare rolls. The program graduated over 1,000 people in eight years and retained about 20% more of its participants than regular hires. Now the program director wished to double the program size. The questions: Was this feasible with a decreasing supply of employable welfare recipients? Could the quality control required at Marriott be maintained with such a large and rapid expansion?
Amazon.com, an early pioneer in electronic commerce, prepares its initial public offering in the face of turbulent market conditions. Joy Covey, Amazon.com's CFO and the case protagonist, discusses the risks and opportunities of going public and the nature of electronic commerce business models in comparison to traditional land-based retail models. This case presents an opportunity to discuss the public offering process and the inter-relationship between a young company's financing strategy and business strategy.
A year had elapsed since Mabuchi Motor Co. Ltd. of Japan, the world's most successful producer of small electric motors, had implemented a new management training program at one of its foreign operations in China. The program had two objectives. First, it was intended to enable the corporation to maintain its strategy of cost minimization by making it possible to reduce Japanese expatriate levels by improving the management skills of local managers in foreign subsidiaries. Second, by overcoming the shortage of qualified Japanese managers, the program would also allow the continued aggressive expansion of production that had become a cornerstone of corporate strategy.
Preview Travel was a leader in the online travel industry, having generated $80 million in bookings in 1997 and growing at a 34% compound annual growth rate per quarter. This case describes the evolution of Preview Travel's business plan and financing strategy and highlights a financial turning point that the company faced in August 1997. In August 1997, the company was in need of an additional cash infusion and had received strong indications of interest from a major U.S. media company. However, Preview Travel was disappointed with the offer the media company eventually made--$4.50 a share--since it was significantly less than the Series E round a year earlier ($9.00 a share). An investment bank advising Preview Travel believed that Preview Travel could garner a higher valuation in the public market and recommended that the company consider an IPO as an alternative means of raising capital. However, there were risks to this strategy. Closes with the question of whether Preview Travel should accept the "sure" but low offer from the media company or pursue an accelerated and potentially risky IPO.
A new firm is being created to speed up the process of mapping humans, animals, and plants by combining gene technology with rapid gene identification to improve the health and well being of the human population and the productivity of crops and animals. How does one manage this process?
The note explains current Canadian financial accounting procedures for corporate income tax as well as the theoretical options that exist. It also considers permanent differences as well as timing differences that give rise to deferred income taxes. A short example is provided.
Canadian Tire's information warehouse has become the victim of its own success. Both the end-user and IT communities have become increasingly frustrated with interruptions in service. The data architect for the warehouse needs to decide what needs to be met, in what priority, and with what programs.