Discusses how Philips, a major Dutch-based multinational company, attempts to bring about a fundamental change in its strategy, organization, and culture in response to a rapidly changing market and competitive environment.
In 1981, Motorola was reevaluating its strategy towards Japan. The firm had been successful in penetrating the Japanese market, and it was confronting increased Japanese competition at home. How it should respond and with what kind of organization were the central questions confronting management.
Intended to demystify the notion of high-tech marketing. Its first objective is to clarify the definition of high-tech marketing. Second, it provides a new framework for evaluating the question: "How is high-tech marketing different from traditional marketing practice?" Third, it discusses the implications of these differences--where they exist--for marketers in high-tech settings. Finally, it identifies some important marketing concepts often overlooked in all the hoopla about high-tech.
Describes the legal odyssey of two engineers who left their old employer to start a company that was directly competitive. The issues include employment contracts, technology licenses, antitrust, trade secrets, and confidential information. Provides a good opportunity for students to explore the legal and ethical issues which surround the concept of intellectual property.
Describes the steps necessary to purchase a small to medium size company. Provides an eight-part analytical framework. Issues covered in the framework include the following: the self-assessment, deal criteria, deal sources, resources necessary to purchase a business, the deal process, the evaluation process, negotiating the deal, and adding value and harvesting the venture.
Explores some of the issues involved in valuing cash flow streams. A simple model is presented that reveals the effect on value of changing assumptions about the appropriate discount rate, the level of profitability, the growth rate of sales, the asset intensity ratio, and the leverage ratio. Helps students address some of the following issues: 1) What is the definition of cash flow? 2) What effects do changes in the discount rate have on valuation? 3) How sensitive is value to changes in assumptions about the underlying characteristics of the cash flow stream? 4) How does growth affect value? 5) How does the use of leverage affect value? 6) What are price-to-earnings ratios? and 7) What factors affect price-to-earnings ratios?
Hurricane Island Outward Bound, a small, nonprofit school that helped pioneer experiential education in the United States, has recently recovered from a financial crisis. Students take the role of the school's new marketing manager, who is preparing his first marketing plan for the organization. Faced with a tight marketing budget, students must choose among several marketing programs by evaluating their past performance and further potential. Alternately, students may shift pricing or the course mix to generate additional marketing funds. Case explores appropriateness of marketing tactics relative to strategy, appropriateness of strategy, pricing and service mix issues, and marketing's management of demand in an extremely seasonal business.
This premier retail jewelry company was bought from its parent, Avon, by a group of investors led by its own management in 1984. The company was highly leveraged, financially, and had to scramble to meet the cash flow and earnings requirements laid down by its lenders. Management effected a turnaround and decided to "go public" to pay down its debt and provide further growth funds. Students must assess the company's relative appeal to investors and refine a pricing recommendation for the securities underwriting syndicate.
Describes National Demographics and Lifestyles (NDL), a Colorado-based company that compiles a database from product "warranty registration cards" and sells mailing lists from this database. The company has burned through more rounds of financing than ever intended, and its founders must decide whether--and how--to approach their venture backers for more financing. And, the venture capitalists must decide whether to proceed or not. May be used with National Demographics & Lifestyles (B).
This rewritten version differs from Black & Decker Corp.: Household Products Group (A1) in two ways: 1) It has an explicit decision focus. Homa must decide on a program to transfer the Black & Decker name to GE small appliances; and 2) The detailed information concerning advertising, promotion programs, purchase allowances, volume rebates, dating discounts, cooperative advertising, and consumer rebates has been condensed.
Strategy requires multiple definitions to fully appreciate its implications. Accordingly, this article proposes five definitions--strategy as plan, ploy, pattern, position, and perspective--and analyzes how these definitions interrelate. Part II reconsiders the question of why organizations really do need strategies, and also shows how some long-held beliefs explain why organizations don't, as well as do, need strategies. It considers the needs for strategy to set direction, focus effort, define the organization, and provide consistency.
Describes the effects on operating cash flows of a real change in exchange rates. Describes different elements of operating exposure and includes illustrative examples.
Describes the transaction and translation exposures that companies doing business internationally face when foreign exchange rates change. Also discusses how to measure and cover both types of exposure. Covering techniques are demonstrated using examples of forward cover, money market hedges, and options market hedges. Other covering devices, such as swaps and leads and lags, are also presented. Explains how these exposures relate to each other and what can be done to minimize overall foreign exchange risk.