In 1990, Lars Kolind decides to abandon his plan to move Oticon A/S headquarters, but insists on the pursuit of his vision for what he now calls the spaghetti organization--so named because of its relative lack of structure. Shortly after implementation, the company suffers further financial losses. A new managing director, brought in by Kolind, begins to address the financial dynamics of Oticon A/S. Within six months, profitability is restored, and by 1993, the company enjoys its greatest profit since its founding in 1904. Has Kolind achieved the competitive advantage he sought with this new organization? Can the spectacular financial success be attributed to the spaghetti organization? How can the new organization be sustained in the years to come? A 1994 EFMD award winner.
In the mid-1985s, Oticon A/S, a Danish manufacturer of high-quality hearing aids, begins to experience significant losses. Lars Kolind, newly named CEO, introduces a vision for company headquarters that would entail a fundamental restructuring and transformation of the organization. Management and employees revolt and refuse a planned move of company headquarters. Should the CEO proceed with the proposed radical change, or has a recent turnaround been sufficient to restore Oticon to its No. 1 market position? In 1990, Kolind decides to abandon his plan to move Oticon headquarters, but insists on the pursuit of his vision for what he now calls the spaghetti organization--so named because of its relative lack of structure. Shortly after implementation, the company suffers further financial losses. A new managing director, brought in by Kolind, begins to address the financial dynamics of Oticon A/S, and within six months, profitability is restored. By 1993, the company enjoys its greatest profit since it was founded in 1904. Has Kolind achieved the competitive advantage he sought? How can it be sustained in the years to come? A 1994 EFMD award winner.
Under the leadership of CEO Lorenzo Zambrano, Cementos Mexicanos, S.A. (Cemex) has become the largest cement producer in North America and the fourth largest in the world. As a component of its globalization strategy Cemex expanded into the United States by building terminals and exporting cement from Mexico. U.S. producers countered with an antidumping petition under Section 731 of U.S. trade law, complaining that they were injured by the imported cement. The case presents the situation in the cement market and the administrative process that resulted in a 58% duty on Cemex imports. Focuses on Cemex's strategy for addressing the antidumping petition and its aftermath.
The NutraSweet Co. has very successfully marketed aspartame, a low-calorie, high-intensity sweetener, around the world. NutraSweet's position was protected by patents until 1987 in Europe, Canada, and Japan, and until the end of 1992 in the United States. The case series describes the competition that ensued between NutraSweet and the Holland Sweetener Co. (HSC) following HSC's entry into the aspartame market in 1987. Describes the subsequent move and countermove in both the marketplace and the courts. Also, discusses the business "game" that takes place at both the tactical and value levels. Ends with the final countdown to the expiration of NutraSweet's U.S. patent.
The commercial account manager at the main branch of the Crown Bank of Canada in Chicoutimi, Quebec, received a line of credit request from Materiaux Boisvert, a hardware and building materials company. Materiaux Boisvert was recently purchased by new owners, who were given a maximum line of credit of $1.6 million with the understanding that the loan would be re-evaluated after several months of operation. The commercial account manager was expecting a request of $1.8 million, but was surprised to find a request for $2.2 million. He must now analyze the company's past and future financial position in order to prepare for a meeting with the new owners to discuss the loan request.
Top managers of Wetherill Associates, Inc., a small, privately held distributor of electrical parts to the automotive aftermarket, are considering whether to modify the company's compensation system for its salesforce. The management wants a compensation system that reinforces the company's right-action policy and its team approach to customer service. The case describes the right-action ethic and its application throughout the business.
Examines the recruiting process of Bowles Hollowell Conner & Co. (BHC), an investment banking firm known for its work with middle market companies. Specifically, presents a profile of the firm and its recruiting process and then examines that process through the firm's recruiting efforts at Harvard Business School (HBS). Includes the resumes of 17 second-year HBS students who sought interviews for an associate position with BHC and raises the issue of how interview selections were made from those resumes.
Wegmans is considered the "best" food retailer in the United States by Fortune Magazine. The produce department has been a key distinguishing feature of the store. The changes in the U.S. and global produce industry are forcing Wegmans to rethink its role in the industry. Teaching Purpose: The produce industry is an excellent example of the revolution occurring in the food industry. Enables students to evaluate changes in the produce industry.
Marriott Corp.'s chairman and CEO must decide whether to recommend a restructuring of the company to the board of directors. The proposal he is considering would split the Marriott Corp., a premier hotel developer, owner, and manager, into two separate companies by a stock dividend to shareholders. One of the new companies would contain most of Marriott Corp.'s profitable management operations, while the other would retain ownership of its hotel properties as well as most of its long-term debt.
Manville Corp.'s senior managers must decide how to respond to a new scientific study suggesting that fiberglass, the source of 75% of the company's profits, may be another asbestos and must act under conditions of great uncertainty. In particular, when should a manager inform employees and customers about potential product risks, and how should hazard communications be handled to inform without inflaming?
Describes how Manville's managers responded when their main product, fiberglass, was classified by an international research agency as a possible human carcinogen.