Focuses on the nonmarket strategy of a high technology company to influence European standard setting for control networks. Echelon Corp. is a small, privately-held company located in Palo Alto, CA that produces open architecture control networks--communications systems that integrate disparate pieces of electronic hardware over some distance. These systems have applications ranging from automated assembly lines, to patient monitoring in hospitals, to fly-by-wire systems. This case addresses standard setting in Europe. Echelon's European competitors, led by Siemens, sought to establish application-specific standards that would limit the demand for Echelon's open architecture technology. Echelon had followed a strategy of blocking Siemens's attempts in the European Union standard-setting bodies by enlisting the support of its customers in countries such as the United Kingdom. The absence of standards caused by this blocking strategy was detrimental, however, to the development of the market for control network applications. Echelon had to determine whether it should continue with its current strategy, or work directly to have open architecture standards established, or initiate discussions with Siemens and other companies to develop open architecture standards jointly. Poses the strategy issue and asks how the strategy should be implemented.
Discusses the strategic challenges facing Disney in 1996, especially those relating to the proliferation of digital content and the influence of information technologies. Provides the opportunity to discuss the importance of distribution channels in a digital age, along with the strategic reasoning behind Disney's acquisition of ABC in 1995.
Dave Pottruck, president and co-CEO of Charles Schwab Corp. (CSC), is contemplating a piece of news in the June 1, 1999 edition of the Wall Street Journal that was about to send shock waves through the brokerage community. The newspaper had just announced Merrill Lynch's decision to launch online trading on December 1, 1999. Customers at Merrill Lynch would be able to trade online for $29.95/trade or, for a minimum annual fee of $1,500, make as many trades as they wanted. Now that Merrill Lynch had joined the online trading revolution, Pottruck wondered, how would this affect Charles Schwab & Co., Inc. (Schwab), and what should the company do in response? Pottruck observes that Merrill Lynch, ETrade, WingspanBank, and Schwab, although competing for similar customers, appeared to be doing so from very different starting points. Pottruck considers the competitive dynamics of the brokerage industry and wonders: How can Schwab maintain its growth trajectory in the face of so many, varied competitors? What other firms might enter the space? How could Schwab protect and grow its existing customer base? Was Schwab getting "squeezed in the middle" or could it create a "category of one?"
Discusses the strategic challenges facing Electronic Arts in 1995 as they try to maintain their leading position in the video game industry. Addresses the evolution, competitive environment, and key trends in the industry, as well as the position and strategy of Electronic Arts.
Presents evidence on the unsustainability of many competitive advantages, reviews the typical threats to the sustainability, and discusses ways in which those threats can be combatted.
The case describes the actions taken by Dennis Hightower as president of Disney Consumer Products in Europe and the Middle East from 1988 to 1994. It focuses on how he has gone about establishing a regional office and knitting local operations closer together, the benefits that the process has generated, but also the tensions it has created within the organization. It ends with Hightower contemplating whether he should be changing directions, given the emerging strategic and organizational challenges.
A division of Allentown Materials Corp. has financial and organizational problems. Conflict and lack of coordination exist between functional groups. Employees do not have a sense of direction, and morale is low. The cause of these problems is found in a change in business environment followed by changes in organization and management. A rewritten version of an earlier case.
Focuses on the recommendations and implementation strategy made by the organizational development group to address the division's problems. A rewritten version of an earlier case.
In response to a recent incident the supervisor of administration services was trying to decide how best to prevent the company from sending out mail with insufficient postage. The case describes how the company determines how much postage is required and the process Canada Post uses in dealing with mail with insufficient postage. The supervisor is examining two options. One involves a software solution to calculate envelope weight, the other involves mechanically weighing each envelope.
The general sales manager for Rossiter Tool Company, PLC, has received a request from a dealer who has been selling the Rossiter line of tools for approximately four years. The dealer wishes to be considered as a territorial distributor, thus qualifying him for additional discounts on purchases from Rossiter. Rossiter executives realize that granting this request will mean a shift in the company's distribution policy.
Depreciation policies at Delta Air Lines and Singapore Airlines are compared and contrasted against a summary of operating data from each airline. Questions focus attention on differing depreciation policies.
Discusses the net present value and internal rate of return methods for analyzing capital investments. Assumes prior knowledge of compound interest and present value methods.
The marketing director and finance director must set the price for an expensive yet competitive fabric. Recent price increases have not been matched by competitors, and market share has been lost. The case provides an opportunity to practice contribution analysis considering variable and fixed costs as reported in a typical cost report.
Common-size balance sheets and financial ratios are given for thirteen companies. Students must identify which company is in which of thirteen industries. Gives students practice in using financial ratios and exploring financial characteristics of companies and industries.
H.E. Butt Grocery Co. led the grocery industry in adopting many innovations, including category management, electronic data interchange, and continuous replenishment. They have also moved aggressively and profitably into newer applications such as Scanner-based payment and basket analysis.
The founder, president, and CEO of a leading software security company has just announced the $5.1 million cash acquisition of a key competitor. As a result, his company becomes the market share leader in Europe and number two in the United States. But now, he and the rest of the management team have to determine whether and how to integrate the worldwide marketing, sales, and distribution of the firm's two overlapping software security product lines.