Founder and CEO Bill Warner is faced with critical decisions regarding the product lines, target markets, and technology platforms that his start-up, Wildfire Communications, Inc., will pursue. In addition to the question of strategic focus across these lines of business, Warner must decide whether changes in the organizational process will increase his company's effectiveness.
Presents some data showing the magnitude, direction, and composition of capital flows to less developed countries (the so-called emerging markets) in the period 1990-1995. Some potential explanations for these flows are discussed. A number of policy responses to the scale of the flows are offered.
The CFO of a high-growth company in the low-growth and fragmented funeral services industry must decide how to optimize capital structure and earnings growth while maximizing the company's market value.
In 1996, PT Freeport Indonesia, the mining subsidiary of Freeport McMoRan, had just completed an expansion of its copper and gold mine in the western half of New Guinea. The mine, which had dealt with numerous environmental and sociocultural problems over the past couple of years, had recently proposed concrete plans for dealing with problems of acid drainage and spoils deposition. Now, although under widespread criticism and attack, the company is undergoing environmental and social audits and is again contemplating a major expansion.
Mike Connors, president of AOL Technologies, examines several efforts to correct operational problems inhibiting the company's growth. What will need to be done to support growth and counter competition from Prodigy, Compuserv, and Internet-related services?
A newly hired product manager at CIBC Securities Inc., one of the largest mutual fund administrators in Canada, is asked to develop an innovative equity mutual fund. In addition to examining the current product offering of the bank as well as the competition, she must examine the needs of the key stakeholders in this project. She realizes that it may prove difficult to make everyone happy. Among other suggestions she makes to the CEO, the proposed pricing structure of the new mutual fund is unprecedented and could prove to reshape the industry.
Focuses on the efforts of Singapore's Economic Development Board (EDB) to grow the tiny island almost wholly through an expansion of its service economy. Between 1965 and 1990, Singapore achieved a remarkable rate of growth, largely by opening its economy to foreign investment and by providing these investors with a full range of business and infrastructural services. By 1990, however, the island is running out of room for expansion. To keep the economy expanding at its customary pace, the EDB crafts an ambitious strategy of regionalization. Under this strategy, Singapore plans to export its service economy, developing a string of overseas enclaves to replicate the business environment that, physically, can no longer expand in Singapore. In these enclaves, designed to rim the Southeast Asian region, foreign investors could enjoy the full range of services they had come to enjoy in Singapore. And, by providing investors in these parks with a full range of business, administrative, and infrastructural services, Singapore would become the ultimate service economy.
One of Cadillac Fairview Inc.'s (Cadillac) key creditors, the Whitehall Street Real Estate Limited Partnership managed by Goldman Sachs & Co., forced Cadillac to seek protection from its creditors under Canadian insolvency law on December 23, 1994. Accordingly, Cadillac was now required to submit to the Ontario General Court a plan to restructure its financial obligations by January 31, 1995, a plan that it hoped would have the support of its various stakeholder groups. Cadillac had grown to become one of the largest developers and owners of prime commercial real estate in North America, with assets of $4.8 billion. (A Microsoft Excel spreadsheet is available for use with this case, product 7A96B013.)
The Vice President - Manufacturing, is faced with a series of disputes between his direct subordinate, the maintenance supervisor, and one of the maintenance foremen. The situation is threatening to disrupt maintenance operations and the VP feels it is time to intervene. His problem is what to do and how to do it. (To be used in conjunction with Martin Brass Company (B) Harry Smith, Supervisor, Maintenance Dept., case 9A96C006; and Martin Brass Company (C) Jim Jones, Foreman, Maintenance Dept., case 9A96C007.)
The Vice President - Manufacturing, is faced with a series of disputes between his direct subordinate, the maintenance supervisor, and one of the maintenance foremen. The situation is threatening to disrupt maintenance operations and the VP feels it is time to intervene. His problem is what to do and how to do it. (To be used in conjunction with Martin Brass Company (A) Tom Fuller, Vice-President, Manufacturing, case 9A96C005; and Martin Brass Company (C) Jim Jones, Foreman, Maintenance Dept., case 9A96C007.)
The Vice President - Manufacturing, is faced with a series of disputes between his direct subordinate, the maintenance supervisor, and one of the maintenance foremen. The situation is threatening to disrupt maintenance operations and the VP feels it is time to intervene. His problem is what to do and how to do it. (To be used in conjunction with Martin Brass Company (A) Tom Fuller, Vice-President, Manufacturing, case 9A96C005; and Martin Brass Company (B) Harry Smith, Supervisor, Maintenance Dept., case 9A96C006.)
Mekong, a joint venture among Japanese, Korean and Vietnamese auto assemblers, is facing significant changes in the business environment in Vietnam. As the government of Vietnam has implemented its economic and administrative reform program, foreign and domestic companies in Vietnam have had to deal with changes in regulations and competitive forces. In addition, Vietnam's membership in ASEAN (Association of South-East Asian Nations) has further complicated the business decisions that foreign companies have to make in this newly-opened economy. Students will be challenged to devise a strategy for Mekong as a multi-national company operating in the Far East.
Sun's strategy is to identify 2-3 key leading edge differentiators for its products and standardize elsewhere, leading it to outsource the bulk of its manufacturing. Issues surrounding this strategy include: 1) selecting responsibilities within the purchasing function; 2) organizing and assigning responsibilities within the purchasing function; 3) developing long-term relationships with suppliers; and 4) developing management tools that appropriately motivate suppliers. In particular, the "Scorecard" that Sun uses as a supplier management tool is presented.
Vistakon, an independent and entrepreneurial subsidiary of Johnson & Johnson, pioneered the production and marketing of disposable contact lenses with the 1987 launch of Acuvue, the first disposable extended-wear lens--a soft contact lens that patients wear for a period of less than two weeks and then abandon. By 1993, Acuvue was the leading brand of soft contact lens in the United States. In March 1994, Gary Kunkle, president of Vistakon, was presented with the test market results for an addition to the firm's product line, 1 Day Acuvue, the world's first daily disposable contact lens. The test market results raised a number of strategic issues relating to: 1) the positioning and pricing of the new daily wear disposable product; 2) cannibalization of the firm's existing extended-wear disposable lens; and 3) the mix of push and pull components required for the introductory marketing campaign to be effective in generating and coordinating demand from both eye-care professionals and consumers. In deciding how to proceed, Kunkle must evalute the risks associated with commencing an immediate launch with an unproven strategy as opposed to extending the test market.
Andy Chew, a British manager reassigned to Germany by a large German computer company, is in the middle of carrying out a project as a designated "change agent" in a program to reshape the culture toward one that is more entrepreneurial for success as a nimble global competitor. He is still uncertain of his support.
Describes the opportunities that confront the African Communications Group, an entrepreneurial organization that plans to introduce a wireless pay-phone system in Tanzania. Provides a foundation for the analysis of value creation and of value capture. The possibility of entry by other companies, the presence of a large supplier, and uncertainties about demand all create important tradeoffs for the new venture.
Royal Dutch and Shell common stocks are securities with linked cash flow, so that the ratio of their stock prices should be fixed. In fact, the ratio is highly variable, moving with the markets where the securities are intensively traded. Royal Dutch trades more actively in the Netherlands and U.S. markets, whereas Shell trades more actively in the United States. The result is that the Royal Dutch/Shell relative price moves positively with the Netherlands and U.S. markets and negatively with the U.K. market. The ability to arbitrage these disparities and their causes are major case focal points.