Ramsey Walker, a second-year MBA student, must decide how to control a family business as an absentee owner. After providing background details on the publishing industry, the case requires the reader to: 1) make a product segmentation decision; 2) prepare a profit plan; 3) calculate free cash flow effects; 4) determine key accounting performance measures; and 5) assess new control systems and their implementation.
Second of a two-part case on the development and use of a Balanced Scorecard (BSC) at Mobil's US Marketing and Refining Division. This case describes the completed BSC, and how this was linked to the BSCs of the independent business units and the internal service organizations. Also describes the linkage of the BSC to managers' compensation through a new variable-pay plan. Concludes with the senior executives reflecting on how they are using the BSC in their management reviews. Focuses on the management processes surrounding the use of BSC. May be taught with Mobil USM&R (B): New England Sales and Distribution, (C): Lubricants Business Unit, and (D): Gasoline Marketing, which describe the development and use of BSCs in two independent business units and one staff department.
Examines the motivations for franchising. Examines the academic literature in the area and draws implications for franchising patterns. Also provides data on franchising patterns.
John Floegel, a young entrepreneur, is trying to decide whether to join a young, growing daycare franchiser, Tutor Time. Tutor Time has many problems, but also significant potential.
Tutor Time, a young, fast-growing daycare franchiser, needs to undertake an expansion policy. Many options are presented. In addition, Tutor Time must define its franchising policy.
Once the CABG care path is implemented and other care paths begun, hospital staff and administration examine the resulting data. Further methods of improving care and reducing cost are presented for analysis.
Nortel, a large Canadian telecommunications company, has been doing business in China since 1972. By mid-1994, Nortel had successfully developed two joint ventures in China but two others were bogged down in negotiations. The two that had been finalized would not make any money for Nortel, while the one in Guangdong that would make a profit was hopelessly bogged down. The chairman of Nortel China was contemplating alternative ways of expediting the negotiations. One alternative was to help the Chinese achieve their telecommunication-related industrial policy, by investing in an agreement whereby Nortel would help train R&D technical experts in China; this demonstration of goodwill might expedite the Guangdong project. Other options included selecting a new set of more cooperative partners; standing tough in the current negotiations; using the unsigned Advanced Semiconductor joint venture as a bargaining chip, as it would contribute to the Chinese government's goal of industrial self-sufficiency; or investing more heavily in back door and guanxi relationships. If Nortel could not find a way in which to expedite negotiations with the Chinese, one of Nortel's major competitors could easily pick up where Nortel left off.
The Mall of America's public relations manager considers whether to institute an escort policy aimed at curbing the disruptive behavior of some teenagers who frequent the Mall. Support for the policy is mixed. Mall visitors and merchants are generally in favor of the policy, while teens, some community residents, and activists argue that it is too extreme. To make a decision, mall officials must evaluate the policy from the point of view of multiple stakeholders.
On November 3, 1986, after a three-hour board of directors meeting, Union Carbide decided to accept First Boston's proposal to embark on a $2.5 billion recapitalization program. Jameson and his associates' efforts had paid off. Jameson had reason to be excited: He had changed a weak relationship between First Boston and Union Carbide into one that would generate tens of millions of dollars in revenues for his firm. In the highly competitive world of investment banking, it was a particularly sweet victory, since First Boston had won the business from Union Carbide's traditional banker, Morgan Stanley. A rewritten version of an earlier case for courses in service management.
What is the appropriate role for business to play in a capitalist society? In analyzing responses to this question, this note distinguishes two separate dimensions. The first involves the distinctive objective of business as a social institution, considers the pros and cons of profit maximization as well as alternatives to profit maximization such as putting the customer or the employee first, stakeholder theory, and the corporation as a public service entity. It then considers a second dimension, the appropriate moral constraints on business's pursuit of its objectives. On this dimension, the note considers minimal strategic compliance, libertarian structures against force or fraud, the law, social norms, and independent standards of moral behavior.
The idea that "relationships" exist between consumers and products has implicitly occupied a central place in brand marketing thought and practice. Now as relational (one-on-one) marketing is said to be replacing transactional (mass) marketing as the dominant paradigm of the field, explicit theoretical development of these ideas becomes critical. This case presents detailed qualitative data on three women and their relationships with brands.
Examines the situation facing a group of representatives from the private, public, and nonprofit sectors attempting to increase the diversity of business school faculties. Focuses on the issues faced in mid-1994 by the KPMG Peat Marwick Foundation and its partners in their joint effort to generate more ethnic diversity in business school faculties and, ultimately, in business school classrooms and corporate workforces. Gives background on a prior series of meetings held to discuss what could be done to address the lack of minorities in business. The consensus in these meetings was that efforts should be made to increase the number of minority business school faculty by augmenting the supply of minority doctoral students in business. Discusses the various factors speculated to contribute to the lack of diversity in business school faculty. Gives background to marketing strategy development, and ends with the group trying to figure out what to do. The case decision is a meeting in September 1994 to analyze relevant information and develop a strategy to increase minority applicants to Ph.D. programs.
Explores Toyota's target costing system, considered to be the most advanced such system of any major Japanese manufacturer. Specifically, describes Toyota's process of setting rigorous cost-reduction goals and the steps taken to achieve them.
Describes the situation faced by Nortel's Information Systems (I/S) department as the company tried to respond to changes in its environment. With the evolution and convergence in the telecommunications industry and expansion onto the global stage, the company saw the need to improve integration across business units. The I/S department was charged with helping the business units reengineer their process. Brad Taylor, director of I/S, is trying to reengineer the I/S department itself so that it could fulfill the new role. Unfortunately, the existing structure--a fragmented I/S group struggling to meet existing expectations--was poorly positioned for this role. Brad's dilemma was not only to change his own department, but to change the way in which it related to the rest of the company. Can be used to discuss the role and structure of an I/S department. Can also be used as the basis for a class on business process reengineering and/or managing organizational change.
The Vermeer team works day and night to develop its software offering, unforeseen difficulties and internal tensions notwithstanding. In less than a year, the product is ready. The Vermeer team waits anxiously for the market to pronounce its verdict.
The success of the Vermeer software offering suddenly transforms the start-up into a sought after company. After arduous negotiations, Vermeer management is faced with the choice of continuing as an independent company or being acquired by Microsoft or Netscape.
Microsoft has acquired Vermeer, and Vermeer executives are both excited and concerned as they prepare to move to Redmond. Even though the acquisition has been financially rewarding, the Vermeer engineers worry how well they will adapt to their new home. Meanwhile, Chris Peters, their new boss, is trying to ensure a smooth integration of the Vermeer team into the Microsoft organization.
The Vermeer team is pleasantly surprised by the benefits and hospitality that their new surroundings offer. Their happiness is tempered, however, by discomfort with some elements of the "Microsoft Way." As the Vermeer engineers embark on a punishing schedule for the next release of their product, the Microsoft executives wonder whether the Vermeer team will be able to deliver on its promise.