Arrow Electronics is the fastest growing distributor of electronic components in North America and the second largest. Its capital structure policy of heavy reliance on debt financing contrasts sharply with that of its leading competitor, Arnet. Students are asked to think through the whys, and how Arrow might go about reducing its business and financing risks.
Describes what has happened since the introduction of just-in-time production techniques were developed to reduce inventory. Reviews the progress to date in such areas as process rationalization; set-up reduction; quality improvement and leveling the scheduling; and discusses options for the future. The aim of the case is to show students the details of implementing a new production method.
David Thomas takes his first sales management assignment and is faced with a sales rep revolt because of a possible territory reorganization. In addition, his sales division is performing well below the national average. Rewritten version of a case by R.Z. Sorenson.
Reviews and updates the structure and characteristics of the earth-moving equipment industry presented in the companion case, Caterpillar Tractor Co. After revealing that CAT has suffered major financial losses during the period from 1981 through 1984, the case describes how Komatsu grew from a $170 million local manufacturer in 1963 to become CAT's major challenge in the emerging global competitive battle. The case traces the strategy followed by Komatsu in developing its product technology, manufacturing capability, and marketing skills worldwide. The supplement, Caterpillar-Komatsu in 1986, provides an update to the global competitive interaction between Caterpillar and Komatsu. Caterpillar's response to Komatsu's growing market share is outlined, then the impact of rapidly changing dollar/yen exchange rates provides Caterpillar with an interesting pricing decision.
How can we evaluate if innovative health care ventures can do good-benefit society-and do well-become financially viable? This question is the topic of the first module in the Innovating In Health Care course book. This note and case series enables readers to conduct this kind of evaluation in the context of innovative organizations for Primary Care Physicians (PCPs). They ask the reader to evaluate which, if any, of the different innovations for organizing PCPs could have helped Health Stop avoid its subsequent failure (not revealed in the case). In addition to Health Stop's retail medical center model, the note reviews innovations that differ in location; virtual or bricks and mortar; other retail-based; and differ by payer/patient focus. The pair emphasize that success or failure is shaped by correct identification of the type of organization-is it consumer-facing, technology-commercializing, or cost-controlling?-and the alignment of that type of organization with the Six Factors in the environment that critically affect it-Structure, Financing, Consumers, Public Policy, Accountability, and Technology. Health Stop failed because it tried to become two different types of organizations-consumer-facing and cost-controlling-and thus had poor alignment with many of the Six Factors critical to its success. It is impossible to focus on more than one type. Some sort of partnership with the retail-based (e.g., CVS, Walgreens) or technology-based innovations (e.g., Aledade (see "Aledade." Harvard Business School Case 321-131), Agilon) could have helped to rescue it.
Describes the structure and evolution of the earth moving equipment industry worldwide in the post war era, particularly focusing on developments in the 1960s and 1970s. Describes Caterpillar's strategy in becoming the dominant worldwide competitor (industry market share exceeding 50%). Includes details on CAT's manufacturing, marketing research and development, and organizational policies. Concludes with a description of some environmental changes occurring in the early 1980s, and raises the question of how these might effect Caterpillar Tractor Co.'s record 1981 performance and require changes in its highly successful strategy.
Traces the efforts of Patrick Rich, CEO of Alcan Europe, to bring the company into a stable, profitable situation after having lost $120 million in 1982. Focuses on a wide variety of issues, including setting objectives and strategies for the region, creating appropriate coordinating mechanisms, achieving the appropriate degree of independence and coordination among the subsidiaries, maintaining a climate of frugality and capital constraints, and finally, achieving an appropriate organizational structure. Two videotapes are available from the Audio-Visual Department for HBS instructors' use with this case.
Contains a description of the history and venture capital financing of Lotus Development. Focuses on issues related to the possible terms of investment in Lotus by a major venture capital firm. The pedagogic objectives in the case are: to explore the elements of the people/opportunity/deal analytical framework; to expose students to issues in venture capital financing of high potential ventures; to explore the causes of success; and to explore the distinctions between creativity, innovation, implementation, and entrepreneurship.
Contains a history of the microcomputer software industry from the mid-1970s through early 1982. During that period growth was explosive. Many new companies were formed. However, the eventual structure of the industry was not yet clear. No truly dominant firms had appeared. The note is intended to provide background information on Lotus Development Corp. That case contains a description of the strategy and financing of a producer of software. The note could also be used as a basis for discussion of the evolution of industries per se.
In June, 1984, a vice president at Turner Construction Co. must decide whether to approve a construction project being considered by one of Turner's territorial offices and how to manage that territory general manager's apparent reluctance to pursue another account that has important strategic value for Turner. A key issue is the appropriate marketing organization for the firm: Turner is highly decentralized geographically (in order to maximize operating efficiencies and presence in local markets), but buying behavior in some important market segments is increasingly national and centralized. The case also provides much information about the selling process and account/project management tasks in the general contracting business.
Contains a description of a decision confronting an entrepreneur: which of two investment proposals should he accept to fund the creation and marketing of a database that comprises the full text of research reports produced by Wall Street investment banking firms? The teaching objectives are: to expose students to the people/opportunity/deal analytical framework; to focus on understanding the financial and other implications of deal terms; and to force the students to make a decision based on their analysis.
The general manager of a financial services company is examining a request for a loan to finance the completion of a hotel on the ocean shore in Kenya. Projected costs and revenues for the first three years are presented. The manager is trying to assess the validity of these estimates and whether he should recommend the loan.
The case describes the problem facing the president and credit manager of Warner-Lambert with respect to financial position of a major distributor. The distributor's financial statements have just been received by the company and the situation is much worse than anticipated. The survival of the distributor is clearly threatened and Warner-Lambert must consider a new distribution network for the territory.
A manufacturer is considering mechanizing a highly labour-intensive system. He has received proposals with the related cost savings from two different manufacturers for different parts of the process. The president must analyze the information and determine whether the various proposals are financially feasible.
The treasurer of Nortex, a clothing manufacturer and retailer, has been asked to determine Nortex's cost of capital. This will be used in evaluating the merits of future capital expenditures. A follow-up case with the same name (product 9A87B015) is available.