Roberts Enterprise Development Fund (REDF) transformed its philanthropic practice into a social venture capital practice in 1997 with a portfolio of nonprofit enterprises in the San Francisco Bay Area. This case presents REDF's analysis of the changing needs of the nonprofit marketplace.
This case may be taught singly or used as a merger-negotiation exercise with "Daimler-Benz A. G.: Negotiations between Daimler and Chrysler" (UV0110).Set in February 1998, the case places students in the position of negotiators for the company; their task is to value both firms, assess the potential earnings dilution of a combination, and negotiate a detailed agreement with their counterpart. The case can be used to explore such interesting negotiation issues as determination of a share-exchange ratio, treatment of major stockholders, and structuring a deal. Also, the case and exercise can be used to spark a discussion of acquisition in comparison with strategic alliance, or other less formal models of combination.
This case may be taught singly or used as a merger-negotiation exercise with "Chrysler Corporation: Negotiations between Daimler and Chrysler" (UV0085). Set in February 1998, the case places students in the position of negotiators for the company; their task is to value both firms, assess the potential earnings dilution of a combination, and negotiate a detailed agreement with their counterpart. The case can be used to explore such interesting negotiation issues as determination of a share-exchange ratio, treatment of major stockholders, and structuring a deal. Also, the case and exercise can be used to spark a discussion of acquisition in comparison with strategic alliance, or other less formal models of combination.
This is an MIT Sloan Management Review article. Once viewed as "less developed countries," emerging markets (EMs) now offer a significant growth opportunity for multinational corporations. Because EMs differ dramatically from mature markets, they raise new strategic questions that traditional marketing frameworks do not resolve. Traditional models argue against first-mover advantages in EMs. However, additional sources of advantage--favorable government relations, pent-up demand, marketing productivity, marketing resources, and consequent learning--can make early market entry a desirable option. The authors provide a framework, oriented toward demand rather than risk, that enables companies to assess long-term market potential, identify business prospects, and predict potential benefits. Using the framework, companies can categorize EMs on the basis of short- and long-term potential. Once a multinational corporation decides to enter a market, it needs new frameworks to guide product and partner policy decisions. The different patterns of market development in EMs imply that, contrary to conventional models, companies can expand the market rapidly, should offer a combination of global imported brands and locally made joint venture brands, and use EMs to test product innovations. The design and management of relationships with local distributor partners is the most critical challenge for executives. In the areas of industry experience, direct selling, local autonomy, and exclusivity, experienced multinationals are adapting the approaches employed in developed markets in ways that are appropriate for emerging ones.
This is an MIT Sloan Management Review article. Global business today requires leaders to be like explorers, guiding their organizations through unfamiliar and turbulent environments. With markets, suppliers, competitors, technology, and customers around the world constantly shifting, traditional leadership models no longer work. The authors' three-year study across Europe, North America, and Asia indicates that companies seek more global leaders and desire future global leaders of higher caliber and quality. Research results reveal that every global leader needs certain core qualities: exhibit character, or the capacity to build relationships with people from different backgrounds and to act with high ethical standards; embrace duality, or know when and whether to act and initiate change, depending on country or region; and demonstrate savvy, or recognize worldwide market opportunities and understanding firm capabilities. Inquisitiveness--a sense of adventure and a desire to experience new things--must underlie each of these characteristics. Four strategies are particularly effective in developing global leaders: foreign travel, with immersion in the country's way of life; the formation of teams comprising individuals with diverse backgrounds and perspectives; training that involves classroom and action learning projects; and overseas assignments, which serve to broaden the outlook of future global leaders.
This nonprofit strategic planning case tells the story of the Phoenix-based National Family Legal Foundation, an anti-pornography advocacy group which, after attaining national influence during the 1980s, finds itself, in 1995, nearly bankrupt and without a clear mission. When Charles Dunlap, a local real estate developer, agrees to join the board of directors, he unknowingly takes the first step toward a central role in deciding the fate of NFLF. With little left to work with but a skeleton staff and a small group of committed board members, Dunlap, thrust into a central role, must decide whether there is any way the organization can be effective, given its now-limited resources, or whether the time has come to close up shop.
Highlights issues related to the impact of the Internet on industry and technology convergence. RealNetworks has succeeded in establishing its position as a market leader (over 90% market share) in the Internet streaming media segment. Can they maintain this position now that Microsoft has entered the market?
Reviews Cisco System's approach to implementing Oracle's Enterprise Resource Planning (ERP) software product. This case chronologically reviews the diverse, critical success factors and obstacles facing Cisco during its implementation. Cisco faced the need for information systems replacement based on its significant growth potential and its reliance on failing legacy systems. The discussion focuses on where management was particularly savvy in contrast to where it was the beneficiary of good fortune.
This note focuses on the dividend model (DDM), or Gordon Growth Model, as it is sometimes known. The DDM appears in many forms in practice. The note examines its role in estimating the intrinsic value of an equity security and as a model for estimating the required return on equity. It also explores the DDM's link to price-earnings ratios, a widely followed market multiple, and the sustainable rate of growth.
The basic decision scenario is whether to outsource an internal publishing department. What is initially presented as a comparison of a department's annual operating costs versus an outside contract quote gets reformed as a four-year cash flow investment decision.
Palm Computing appears to be the first to have gotten it "right" in the PDA (personal digital assistant) market. Palm Computing has designed a radically new product which will appeal to certain market segments. However, it is unclear how Palm Computing will fare against industry giant, Microsoft.