Describes the environmental, organizational, and information technology context in the late 1970s that led to the development of the initial vision for change and the actions taken to implement that vision. The case ends with the abrupt departure of the CEO as profits plunge. Students have an opportunity to explore what went wrong and to define an action plan that addresses both the short-term and long-term challenges faced by the incoming CEO.
Describes the actions taken by the new CEO to return the company to profitability, to clarify the vision, and then to build the infrastructure (human, capital, and information) needed to support the long-term change in strategy and organization. Ends with senior management poised to institute a second round of organizational change initiatives--this time more radical in nature. Provides a rich description of the evolutionary nature of the vision for change and the development of the organizational and information infrastructure needed to support it. Students have an opportunity to define a detailed change agenda (e.g., specific changes in organization structure, management systems, people, processes, and information) and the actions needed to implement it.
Describes energy and environmental policy in China during the period 1980-1993. China has implemented ambitious plans for electrification and the substitution of fossil fuels (mostly coal) for biomass. The environmental consequences of these changes, at the local and regional levels, have been pronounced; the long-term global consequences of Chinese energy development are also thought to be significant. Chinese environmental policy has been aimed largely at mitigating the worst local and regional impacts. Raises several questions: the degree to which energy shortages or environmental problems will constrain China's future growth; the degree to which environmental quality is an important objective of Chinese policy; and the possible roles that Western governments and firms might play in developing and implementing sound energy strategies for China. Teaching Objective: To analyze the effects of governmental energy policies on local air pollution and on global atmospheric problems, to think about problems of environment and development, and to analyze the relationships between host governments and foreign firms in the energy sector.
Describes the history and evolution of a school/public bus transit company that has grown rapidly and successfully by gradually pushing responsibility and trust as far down the organizational ladder as possible. A real test comes however, in two major labor relations issues.
Fil Metaillique de Briteque Limitee (FMBL), a small Montreal company, had to decide whether or not to offer a discounted price on their most widely-sold product in order to recapture a large ex-customer. After doing a qualitative size-up of the firm and the industry, students are expected to compare the new lower price to FMBL's costs to determine if accepting the offer is in the best interest of the company. A consideration of pricing policy, strategy and profitability are central to the decision.
A woman CEO believes that industry and organizational conditions require for a reengineering/restructuring job her company. However, she wants to gain maximum commitment and buy-in form the entire company. She does this by setting up employee task forces and teams, but this is only the beginning of new efforts that must be made.
Kendall Square Research was a small competitor in the supercomputer industry. As sales grew rapidly in 1992 and early 1993, the company sold stock to the public for the first time and analysts forecast higher earnings for 1993. However, when the company's revenue recognition practices were questioned the answers were devastating.
In 1988, Volkswagen (VW) consolidated its North American operations in Puebla, Mexico, after shutting down its plant in Pennsylvania. Volkswagen de Mexico had been in operation since the 1960s, but produced almost exclusively for the Mexican market. In the late 1980s, VW began to restructure the Mexican plant to supply the United States and Canada (which had been importing from Germany) and to maintain its dominance of the Mexican market. The North American Free Trade Agreement put additional pressure on VW to start sourcing in North America. The case traces the history of VW in the United States and Mexico and the company's strategy in the context of Mexican government regulations, free trade, and a weak presence in the U.S. market. Ends in August 1992, after VW had just resolved an unexpected and bitter month-long labor dispute that delayed the introduction of new cars to the United States. A rewritten version of an earlier case.
This technical note presents an overview of the process by which an analyst can assess the financial policy of a firm. It defines several dimensions of financial policy, offers three benchmarks against which to evaluate the policy, and reviews the FRICTO framework with which to assess proposals for future financial policy.
This is an MIT Sloan Management Review article. Chief information officers have the difficult job of running a function that uses a lot of resources but offers little measurable evidence of its value. To make the information systems department an asset to their companies--and to keep their jobs--CIOs should think of their work as adding value in certain key areas. Accordingly, CEOs can take a number of steps to aid a CIO's efforts. Based on studies of information systems leaders in 60 organizations, this article presents a portrait of successful CIOs and the CEOs who support them.
Reebok International Ltd. is preparing to launch its first global advertising campaign for "Planet Reebok" in three European countries--France, Germany, and the United Kingdom. Planet Reebok was recently launched in the United States during the 1993 Superbowl. The company conducted market research on the Planet Reebok concept in the three countries.
Describes a small company selling freshly baked goods through privately owned specialty stores (each store sells only Mrs. Fields products). The company has about 8,000 employees worldwide and less than 150 information systems people for a unique leverage of MIS resources. The company uses information systems extensively in its processing, communications, and other management functions, including operations of the stores and hiring sales employees. Teaching objectives include discussion of information technology architecture, organizations, management control, and strategy. A condensed version of Mrs. Fields Cookies.
Provides a basic understanding of real options in corporate finance. Traditional discounted cash flow techniques (NPV) do not deal well with managerial flexibility or future response to uncertainty. The value of this flexibility can be significant and is handled well by option-pricing techniques. A description and taxonomy of real options is followed by several examples of valuing and using real options to make better value-enhancing decisions.