Commentary by an executive familiar with the industry on what went wrong at Prelude and what the difficulties are in creating economies of scale in the lobster fishing industry.
Conoco faces challenges in formulating a proactive environmental strategy for its proposed oil development in Ecuador's pristine tropical rain forest region. The case outlines the innovative process in which Conoco collaborated with a wide range of often conflicting constituency groups to define and implement its policies, along with Conoco's successes and failures in reaching constituency consensus.
Describes the political and economic situation in Poland in 1989, following the country's first democratic elections and the subsequent establishment of a Solidarity-led government. After examining the legacies left by 40 years of Communist rule, the case lays out the problems that face the new government and the choices it must make. Most centrally, it outlines the Sachs proposal for a rapid "leap to the market" and lays out the arguments for and against such a move. Designed to encourage students to think about the structural prerequisites for capitalism and to realize the difficulties the new Polish government will face as it tries to balance its economic and political objectives.
Brigham and Women's Hospital is a highly successful teaching hospital in 1992. However, the hospital sector is undergoing a major transition and the hospital faces uncertainty about changing demographic trends, new types of competitors, and technological and scientific change. It's premier OB service is declining, and many of the hospital leaders are nearing retirement. How should it craft its strategy for the 1990s?
In 1992, Apple received the only profitable standard other than IBM/Microsoft/Intel in the PC industry. The case examines Apple's dilemma of how to retain its profitability as the structure of the industry deteriorates. Apple's CEO poses the critical question: Can Apple shape the PC industry for the 1990s?
Describes political and economic developments that completely change the assumptions on which the strategic options in the (A) case were based. This requires a fundamental reconsideration of the economic/political, strategic, and organizational dimensions and the options. In addition, the head of Opel wants to become number one in East Germany in spite of its formidable local competitor, Volkswagen.
Presents some of the dilemmas of gathering competitive information and the appropriate limits for competitive analysis. Raises the issues involved and provides information about actual corporate practice.
Examines the causes of decline--economic, social, and political--of the Zambian economy since 1974. It takes place at the time of the election of Frederick Chiluba, in October 1991. Examines the problems of economic development in Africa, and especially, of structural reform away from closed, statist systems of government. Also examines the problems of external debt and the reliance on commodity industries to produce foreign exchange.
The board and management of General Cinema has to determine whether the acquisition of Harcourt Brace Jovanovich (HBJ), thereby entering the publishing business, makes strategic sense. The case describes HBJ's involvement in several segments of the publishing industry: college, elementary and high school, testing, medical, scientific/technical, legal, trade, and international. Case information and exhibits rely primarily on consultant reports. For each segment, the consultants have identified key trends and key success factors, as well as HBJ's competitive position and performance. Increased industry concentration and technological changes receive special attention.
Many people believe that there is some single, overarching approach to business ethics: e.g., serve the shareholders, serve the stakeholders, or follow your conscience. In reality, however, the search for a grand, unifying principle of management morality often leads to frustration and cynicism. The moral dilemmas managers face are, in essence, clashes among very different spheres of responsibility. This article describes each of these spheres and presents a framework for resolving conflicts among them.
Through strategy, a company seeks to sustain its competitive advantage. Yet only recently has the study of strategy begun to examine how long a specific advantage can be sustained. Based on a study of sustainability patterns in a number of industries, this article shows how the competitive pressures associated with product imitation can be predicted by identifying the core capabilities, or isolating mechanisms, that lie at the heart of a company's advantage. A number of these dynamic core capabilities are classified according to how fast they are duplicated. The imitation of capabilities shape many strategic decisions in companies, indeed the distinctive character of companies, and that by thinking in these terms managers enhance their company's cohesiveness and responsiveness as they pursue their strategic mission in global markets.
This is an MIT Sloan Management Review article. Do you consider distribution and inventory costs when you design products? Can you keep your customers informed of when their orders will arrive? Do you know what kind of inventory control systems your dealers use? If not, you've succumbed to the pitfalls of inventory management. You're not alone. Manufacturers have been concentrating on quality of incoming materials and outgoing products, but they haven't been paying as much attention to the costs associated with transporting and storing them. Describes 14 pitfalls of supply chain management and some corresponding opportunities. The more complex your network of suppliers, manufacturers, and distributors, the more likely you can gain operational efficiencies by attending to inventory.
In an effort to capitalize on the entrepreneurial opportunity presented by the Brazilian government's trade liberalization, a Panamanian automobile trading company launched a business of importing the Russian made Lada cars into Brazil. The company confronts a complex political and economic environment and strong competition from the existing automobile producers. Presents the business challenges and opportunities accompanying trade liberalization. Reveals the competitive dynamics in environments undergoing economic transformation.
Describes the evolution of radio technology and business from the initial days of wireless telegraphy to the advent, growth, and establishment of amplitude-modulated (AM) radio manufacturing and broadcasting. Begins and ends with a description of a decision the Radio Corp. of America (RCA) has to make with respect to the introduction of a new, incompatible frequency-modulation (FM) technology. Illustrates the full spectrum of interests and obstacles a new and incompatible technology and/or product concept has to overcome before it can be accepted. Also useful for discussing how product concepts get established, how patent law works, how industries develop, and the role played by individuals with differing visions, tenacity, and ambitions.
Illustrates organizational and industry-wide inertia to a change that threatens the status quo. Also reinforces the message that those most willing to encourage change are either the proponents of change or those who are locked out from the existing system.
Describes the concluding and bitter fight between Armstrong and the established radio manufacturing and broadcasting industry over the new, incompatible, and yet irrepressible FM technology. Illustrates the struggle between a corporation and an established system and individual champions of change. In addition, underscores the tensions that can arise in the context of personal ambitions, uncompromising attitudes, personal relationships, and corporate interests.
A wholly-owned subsidiary of Lockheed Corp. has an $11 million expansion underway in South Carolina. The company must decide how best to take advantage of the opportunity to issue tax exempt debt. Specifically, the decision involves choices about the maturity and redemption structure of the proposed issue. Designed to let students isolate interest tax shields and subsidies, and to value these elements of a financing package separately, as part of an "adjusted present value" analysis.
A manager of a small investment company has been successfully using index funds for limited market timing. Growth has allowed her to move into picking stocks. She is considering two small and highly variable listed stocks, but is concerned about the risk that these investments might add to her "portfolio." Provides a lead-in to the CAPM. Students learn about total risk, non-diversifiable or portfolio risk, and (CAPM) beta, and calculate variability of the stocks separately, and portfolio variance with and without the stocks, to see how an extremely risky (but low-beta) stock actually reduces risk; and calculate stock betas.