Scott's, well-known for Kentucky Fried Chicken, is considering entering the pizza business. The corporate strategist has identified the two most attractive alternatives which he sees as strategically inconsistent: an acquisition would allow the company to penetrate the pizza market quickly with a minimum of innovative development; locating pizza outlets on company-owned land already occupied by Kentucky Fried Chicken stores would make a great use of existing corporate assets. In his recommendations to the Board of Directors, he needs to consider the results of a consumer survey as well as the company's strengths and weaknesses. Two follow-up cases are available Scott's Restaurants (B) and Scott's Restaurants (C).
This case is a sequel to Scott's Restaurants (A). The market research carried out in case (A) indicates that Scott's could establish a pre-emptive position in the take-out pizza market by concentrating on a limited number of basic requirements: cleanliness, product quality, and quality of service. Therefore, the pizza plan is implemented according to the marketing plan. However, early test results are not very promising. A new market survey is conducted for Scott's by a consulting firm.
A large Ontario ski resort faces a decision about whether to invest in facilities for night skiing. Demand is very uncertain, so the management undertakes a market research study. Day skiers at the facility are surveyed about their potential interest during the month of February and March. The resort's management is suspicious about the validity of the results of the research, but has no time to collect further data.
Bloomfield has to decide what price to charge for fertilizer for the upcoming selling season. He is facing competitive pressure to reduce his price and realizes that if he maintains his price, he will certainly lose volume next year.
The mechanics of preparing projected financial statements are described to provide an understanding of the methods used in preparation, and to outline how these projections can be modified and used in financial planning and management decision making.
This note discusses cost behaviour, break-even analysis contribution and projected income statements. In addition to the theoretical framework, two examples are presented and analyzed.
In 1960, the United States was facing a balance of payments problem. Gold reserves were being drained, American products were losing competitiveness, and the dollar was under attack. This case analyzes the roots of this problem, provides an opportunity to discuss in depth balance of payments accounting, and allows students to explore various solutions to balance of payments difficulties.
Provides an introduction to futures contracts, what they are, what their use in hedging is, and their usefulness in providing forecasts. Also covers basic risk. Includes a list of commodities currently traded in futures markets and the necessary properties of a commodity that make it tradable in a futures market.
Two competitors in the Northeast steel service center industry have made very different choices with regards to logistics and operating strategy. One distributes from a large central location; the other operates seven widely scattered warehouses. Students can diagnose and discuss the significant impacts of these choices, especially in an economic downturn.
Introduces students to some general tools of economics that will be useful in analyzing macroeconomic performance in a course on business, government, and the international economy. The four sections are: 1) the economy as a circular flow, 2) supply and demand, 3) aggregate supply and aggregate demand, and 4) an introduction to National Income accounting.
Describes the issues and priorities involved in countries' use of the gold standard as the basis for managing their money supply. The setting of the United Kingdom in 1925 permits a real-world exploration of the important tradeoffs in "going back on gold" versus moving toward flexible "floating" exchange rates.
Jim Sawyer, 40, a manager at United Industries Plastics Division has exhibited signs of alcoholism. Personnel must now consider how the company should address this kind of problem. Provides an opportunity to examine the role corporations should play in helping employees deal with or confront issues of personal health.
Ruth Owades developed a concept for a new mail order venture offering gardening products. Her current employer turned down the idea, so with permission to try it independently, she has begun the process of raising funds and preparing for a separate operation. She still has many uncertainties, but with a deadline approaching to meet the single selling season, she must decide to leave her job or give up the idea.
A study of 40 successful companies with low market shares shows that long-run competitive success is feasible despite low-market-share position. Most of the profitable low-share companies in the study compete in stable environments that share certain characteristics. The competitive strategies of effective low-market-share companies also have much in common including: a strong focus tailored to differences in the market environment; a reputation for high quality; lower prices than competitors; and low total cost.
Steven Belkin, 26 years old and 2 1/2 years out of HBS, has decided to leave a group travel company he has run for the last year to start his own similar business. In the course of several months he has written a business plan, attracted several partners and employees, begun setting up the first tour they will offer, and approached venture capital firms and wealthy individuals to raise $250,000 in equity. He has not yet succeeded in finding investors. At the same time he has gone into personal debt to cover expenses. Now he must reconsider his financing strategy.
Johnson Wax has produced a new hair conditioner for problem hair. Before committing themselves to test market, they analyze the new product using a field based, pretest-market procedure called ASSESSOR. The testing reveals product positioning, advertising, and promotion insights which are important in the repositioning of the product.
In October 1982, Johnson & Johnson was confronted with a major crisis when seven deaths were attributed to poisoned Tylenol. The case reviews the facts as known a week after the incident occurred, and raises a wide range of questions regarding consumer behavior, corporate responsibility, and competitive reaction.