Ben & Jerry's makes super-premium ice cream under a tri-part mission to produce the finest quality all-natural ice cream, to be socially conscious and improve the quality of life of a broad community, and to operate profitably so that shareholder values continue to grow and employees enjoy career opportunities and financial rewards. The company has grown from one small ice cream parlor in a converted gas station to achieving sales of over $130 million in 1992. This note provides the background for the decision to be made in Iceverks (A): Ben & Jerry's in Russia.
It has been four years since the president had first travelled to Russia to find a partner so that the Ben & Jerry's finest quality, socially conscious and economically feasible super-premium ice cream could be produced in Russia. Now, just a few months in operation, the joint venture was up and running and already profitable. The partners wanted to expand and opportunities were readily available but the president questioned the feasibility of such a move. This case presents a common dilemma faced by international companies - how to manage divergent partner goals and perspectives. May be used with Ben & Jerry's Homemade Inc.: Background Note and Iceverks (B): Summer of 1993.
This case examines a proposed marketing joint venture which would introduce Neilson brand chocolate bars to Mexican consumers. Pepsico Foods' Mexican subsidiary -- already servicing 450,000 retail stores -- has suggested a joint branding agreement. Alternative distribution arrangements are available which would allow Neilson to maintain greater control over its name, at the cost of slower market access. (A sequel to this case is available Neilson International in Mexico (B).)
Neilson linked up with Sabritas, a Pepsico Co. subsidiary, and launched Neilson brand chocolate bars in Mexico. The next year, Neilson sales to Mexico exceeded $23 million. The Mexican peso abruptly underwent a 40% devaluation which put major pressure on both partners' margins. This raised issues of future pricing and competitive response. More fundamentally, there were now concerns about the overall stability and potential of the Mexican market. (This is a supplement to Neilson International in Mexico (A).)
Describes Donna Coe and her illustrious 15-year career in the towing industry. Donna is an accomplished woman with a great deal of experience in managing employees in a difficult and demanding work environment. Presents a series of four vignettes taken from Donna's day-to-day management experiences. Each situation presents a different problem faced by Donna and by many managers working in similar labor-intense businesses. Problems of discipline, insubordination, embezzlement, and promotion are also presented.
The evolution of Procter & Gamble's development of efficient consumer response (ECR) involved a series of trials, a resolve to distribute diapers on the basis of product movement, a conscious effort to move to a new means of distribution across all lines, a first cut at a new system, and finally, the development of the existing mix of integrated IT systems linking the value chain from factory to shelf.
Describes analyses that determine the appropriate limit to the scope of the firm. Examines both the production cost justification for firm diversification--economies of scope and shared resources, and the governance cost justification for including transactions inside the hierarchy rather than contracting for them on the market--transaction costs and agency theory. Concludes by identifying the line between corporate strategy and firm scope.
Presents Black & Decker's performance against a Japanese competitor and others in the power tools market. Black & Decker is anxious to regain its market share leadership in particular segments of the market.
Illustrates the payoff structure of various positions involving put and call options and the use of put-call parity in understanding the relationships among various positions. Examines the cases of insured equity, interest rate caps and floors, callable and extendable debt, and corporate balance sheets.
In the largest attempted employee-buyout in history, a large U.S. commercial airline seeks substantial wage concessions from its employees in return for 53% stake in the airline's common stock and guaranteed seats on the board of directors. Management must convince employees, shareholders, Wall Street analysts, and the media that the buyout makes sense from value, operating, and strategic perspectives.
A British bank with strong roots in the cooperative movement encounters declining profitability in an increasingly competitive and deregulated financial services industry. It attempts to grow by broadening its customer base and increasing the range of products and services offered. It turns to activity-based costing as part of its reengineering effort to learn more about the process and product costs and customer profitability, and contemplates what actions to take based on this new information.
Robert Adams, president and CEO of Xerox Technology Ventures (XTV), confronts several changes in his organization. Established by the Xerox Corp. to invest in fledgling organizations, XTV is now being offered the opportunity to undertake buyouts of many of Xerox's units.
The Bardolini Division of Mattson Foods, with plants in the northeast and midwest, wants to open up the western market for its pizza. Management must decide whether to build a new plant on the West Coast, and what type of technology to put in the plant if they decide to build it. The case addresses the issue of building a plant for marketing purposes and raises a number of logistical issues, including transportation and warehouse economics. A rewritten version of an earlier case.