Delta Beverage is facing severe cost control problems. In addition to the high interest expense, the cost of aluminum cans and PET containers has risen substantially during the past year. Students must decide whether the CFO should hedge aluminum to avoid the risk of violating a loan covenant.
In 1995, Bre-X Minerals, a tiny Canadian mining firm, struck gold. Deep in the heart of the Borneo jungle, it discovered what appeared to be one of the world's largest and most cost-effective gold deposits. Almost immediately, the firm's stock price shot upwards and its managers were besieged by eager investors and would-be partners. They also became mired in the relationship-based politics of Indonesia. To mine the gold, and reap the benefits, Bre-X management must establish several critical relationships with financial partners outside Indonesia and with political and business partners inside the country. Yet figuring out with whom to ally itself is no easy task. The case describes how Bre-X's management reviews its options and evaluates the strategic advantages and risks of key relationships.
In the mid-1980s, Asda was one of the most successful retail companies in the United Kingdom. By 1991, the chain of 200 grocery stores had a lack of direction, a demoralized workforce, declining profits, rising debt, collapsing stock price, and was facing bankruptcy. This case describes the company's downfall and introduces Archie Norman, a young, highly talented chief executive, hired to restore the company.
Describes Archie Norman's efforts over a five-year period to turn around the company by regaining financial control, delivering management, creating experimental projects where individuals felt free to innovate, instituting a back-to-roots strategy that put customers first, and creating a culture characterized by high involvement of employees and fast innovation and implementation of new ideas.
After a successful roll-out throughout the Northeastern United States, Benjamin's Bagels is set to enter the Canadian market. The vice-president is reviewing information about potential sites in the Greater Toronto area, using micromarketing and geographic information systems. A supplemental file containing maps, product 7A97A004, accompanies this case.
The managing director of a new Malaysian producer of stainless steel tubing received a letter from the company's attorney in Washington, DC, informing him that the U.S. Specialty Tube Group had written to the U.S. President concerning stainless steel tubing imported into the U.S. from Korea, Taiwan, Thailand and Malaysia at dumped prices that was causing injury to the U.S. industry. For the next year, the managing director considered how he should respond to this threat, while at the same time increasing the company's exports to the U.S. so that it could meet its sales and profits goals. One year later, he was informed that a formal antidumping action had been taken against imports of stainless steel tubing from Malaysia (and other countries). He is considering what he should do now, both to preserve the company's U.S. market and maintain alternative markets in other countries.
In terms non-technical readers can understand, the evolution of the Internet and the Web, characteristics of the supporting technology, and current issues surrounding use of the technology are examined.
Transitional Infant Care Specialty Hospital (TIC) addresses the question of whether and how to maintain strategic focus in an industry that is calling increasingly for integrated service delivery. Despite providing high-quality, cost-effective care relative to competitors in its market, TIC is in trouble. Full-service hospitals in its market area are adopting some of its innovative practices and are beginning to provide similar services. Worse, the local health care system in Pittsburgh is shaping up into two large integrated delivery systems, in neither of which TIC is a strong player. TIC has neglected marketing and strategy issues in favor of "caring for babies." How can they position themselves in an increasingly integrated local health care delivery system, without losing the focus that has been the source of their operational and service excellence?
Executives at Black & Decker Corp. challenge managers to design and develop a cordless electric power drill for professionals that will enhance its reputation among that group of users and significantly lift the company's share of that market. Moreover, the new product must have a platform that, with modest changes, will suit both the North American and European markets. Like many such projects, the time line is short. The management challenge is to put together an international team and develop strategies for defining competitive opportunities, refining program objectives, ensuring effective communication, and keeping people focused. Designers--including engineers and product designers--must overcome a series of technical challenges related to the power the drill will deliver, battery location, and ergonomics. Models are a key design tool in the development process and are used to test consumer reactions in both North America and Europe.
In 1994, Egon Zehnder faced stagnation in the U.S. market and needed to discuss plans for intiating growth. Due to market demand the firm was not forced to implement options contemplated in 1994 to initiate growth.
Describes how Eli Lilly and Co. tries to accelerate its new drug development process with the aid of "combinatorial chemistry"--a rapidly emerging and revolutionary approach to preclinical drug discovery. The product manager of a potential blockbuster migraine drug faces the decision of "racing" the drug to market or spending additional time to refine an already promising drug candidate. Focuses on: (1) the new drug development process with an emphasis on pre-clinical drug discovery; (2) radical innovations ("combinatorial chemistry") in the drug discovery process; (3) the managerial challenges of introducing such innovations into a large organization with multiple stakeholders; (4) the financial value of time-to-market; and (5) the changing competitive environment in the pharmaceutical industry.
This case describes the major strategic and organizational transformation at Komatsu aimed at changing it from a Japan-based producer of construction equipment to a truly global company with the ability to leverage its groupwide portfolio of resources and capabilities into a new, more diverse business base. Details efforts to build and acquire foreign operations, to specialize and integrate overseas units, to expand responsibilities of offshore operations, and to localize management.
As manager of Clinical Engineering at Victoria Hospital in London, Ontario, Canada, Mark Greig was part of a team responsible for managing the hospital's medical technology. Greig knew something had to be done to improve the quality and cost of repairs being made to the hospital's flexible endoscopes by outside firms. It was now early April 1994 and Greig was eager to prepare for the monthly team meeting which was to take place on April 18.
Examines several legal issues faced by Samantha Fine, the CEO of Next Step, a software concern that is focused on the World Wide Web and planning an initial public offering. Describes Fine's computer-related experience prior to founding Next Step and discusses the actions associated with transforming WebSaver from an unproven idea for a software product to one of the most successful Web-based software products. Provides a brief description of the origins of the Internet and the Web, the Web search engine market, and advertising on the Web. Although the subject of this case is a company whose primary product is an innovative program in a relatively new and rapidly changing medium, the legal lessons that can be learned from this case are applicable to a wide variety of entrepreneurial ventures. Legal issues include domestic and international protection of intellectual property, effect of assignments of intervention, non-compete clauses and non-disclosure agreements, equity rights of a founder who leaves, and tax and accounting consequences of a last-minute issuance of cheap stock.
Today, the most urgent challenge for most companies is to develop the managers who must operate in the new delayered, horizontal, networked organizations to deliver on their complex, multidimensional strategic priorities. It is here that most companies are facing the greatest difficulties. The reason lies in the historic "Russian-doll model of management," in which managers at each level are expected to play similar roles and have similar responsibilities, only for a different size and scope of activities. The underlying premise that there is a generic management role is being further reinforced by many companies currently engaged in the new fad of identifying a set of desired personal competencies as the anchor for their management development initiatives. This article challenges this Russian-doll model of management to argue that managers at different levels of the organization play distinctly different roles and add value in fundamentally different ways. Based on field research in twenty major corporations, the authors identify the roles of front-line, senior, and top-level managers in the new organizational form, and how companies can develop these new managerial competencies.