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What are the prospects for grocery shopping on the Web? This case invites a comparison of seven business models, with particular emphasis on Webvan. Why does the investment community value Webvan at $7.8 billion after less than six months of operating experience, and Peapod, which has had seven years to learn the ropes, at $200 million? Explores online consumer-shopping behavior, the economics of online and offline grocery distribution, and the challenges of uniting a pure information business with a mundane package delivery service.

Two recent Harvard Business School graduates start a venture capital/consulting firm focused on opportunities related to the Internet.

Katherine Mason is a program officer at InterExchange, a firm that administers academic-exchange programs with the former Soviet Union. After returning from an extended period of time in three of the former Soviet republics, Mason discovers that the finance department has instituted new reimbursement policies. She must decide how to interpret and react to the memos concerning expense-report reimbursement. The twist in the case is that because of a past incident, Mason does not have a positive relationship with either her division head or the controller. Mason is convinced that the new policies fail to take into account the individual nature of financial transactions conducted in foreign countries. How should she present her arguments and explain her position to the controller?

The company's accounting for its seismic data library is questioned. Teaching Purpose: Inventory accounting.

The president and CEO of Russell Reynolds examined the company's expansion strategy, especially in emerging markets. He evalulates how quickly the company should open new offices abroad and in which countries.

Net.Genesis is planning a strategy for the developing Internet market. In particular, it is creating the category of e-business intelligence and striving to be the brand leader in it.

In this case Roly International, the largest Disney apparel licensee in China, considers how to adapt their distribution channel strategy to the downturn in the Chinese market.

Too often, promising strategic plans never come to fruition. A common cause of such failures is a breakdown in implementation--the internal processes and events needed to bring a strategy to life. Results from a large-scale research project, surveying 500 middle managers in five large firms in different industries, led to a framework for strategy implementation. The framework analyzes the pitfalls and requisite managerial responses in four chronological stages of implementation: Pre-Implementation, Organizing the Implementation Effort, Managing the Implementation Process, and Maximizing Cross-functional Performance. Managerial levers for coping with the requirements of these different phases include goal-setting and modifications of structure, leadership, communications, and incentive systems. A thread that runs through the entire sequence is the need not to overlook middle managers when the focus is on customers, competitors, and senior management decision making.

Pre-Paid Legal Services' business model reveals two key issues--managing the sales force and sales growth and managing claims. Students analyze the economics of the business and consider how to measure firm performance, how to evaluate and reward the sales force, and what services to offer. The case also discusses a Fortune article criticizing Pre-Paid Legal's method of reporting sales force commissions. Students are asked to evaluate Fortune's analysis and to recommend potential responses by Pre-Paid Legal's management.

Supplements Tax Cut of 1964 (9-382-078), Nixon's Economic Strategy--1969 (8-378-258), and The Reagan Plan (9-381-173).

Describes a key concept in financial accounting: choosing an appropriate revenue recognition point. The accrual process requires revenue recognition and expense matching for reporting on the value creation process of companies. Describes the two key criteria for revenue recognition--realized and earned--and the conditions that must be met to satisfy these criteria. The use of the typical recognition point, when the product or service is delivered to the customer, is discussed as well as situations (e.g., the percentage of competition method) when revenue can be recognized before actual delivery. A rewritten version of an earlier note.

Although inexperienced in real estate, Edward Alexander hopes in June 1999 that youthful enthusiasm and an $80,000 inheritance will help him enter the real estate business. His experience chronicles the process of finding, evaluating, and acquiring a four-unit brownstone in need of renovation in the Beacon Hill area of Boston. The case also identifies the various players in the process. A rewritten version of an earlier case.

This case tells the inside story of one of the most controversial episodes in the history of the US intelligence services. Its focus: whether to break the time-honored rules of CIA covert actions in order to supply Afghan rebels (fighting in the 1980s to oust invading Soviet forces) with US-made, state-of-the-art Stinger missiles. The case offers an unusual glimpse into the policymaking process for intelligence decisions, especially covert actions--secret activities meant to advance US foreign policy objectives without revealing the hand of the US government. It describes a pitched internal debate among the Defense Department, CIA's Operations Directorate, CIA leadership, the Department of State, and the Joint Chiefs of Staff over the advisability of providing the Stinger anti-aircraft weapon to Afghan mujahideen. Advocates said the Stinger could help win the war. Opponents argued it made the US role transparent, which could escalate the conflict to superpower level; might increase the risk of retaliation against staging-area Pakistan; and created a threat that terrorists would get possession of the weapon. HKS Case Number 1546.0

Describes a second-year MBA's attempts to make money for a fledgling Web-hosting business. As the case ends, he must both sort out the company's business model and financing needs, as well as select from an array of financing and acquisition alternatives.

Ever since General Motors (GM) announced in February 1997 its intention to divest Delphi Automotive Systems--its upstream parts manufacturing operations--Wall Street had called for further unbundling, and various stakeholders competed for their claim of value represented by GM. The case presents GM's four options for the Delphi unit and raises valuation and governance issues regarding the remaining corporate assets. A rewritten version of an earlier case.

Long-Term Capital Management, L.P. (LTCM) was in the business of engaging in trading strategies to exploit market pricing discrepancies. Because the firm employed strategies designed to make money over long horizons--from six months to two years or more--it adopted a long--term financing structure designed to allow it to withstand short-term market fluctuations. In many of its trades, the firm was in effect a seller of liquidity. LTCM generally sought to hedge the risk--exposure components of its positions that were not expected to add incremental value to portfolio performance and to increase the value-added component of its risk exposures by borrowing to increase the size of its positions. The fund's positions were diversified across many markets. This case is set in September 1997, when, after three and a half years of high investment returns, LTCM's fund capital had grown to $6.7 billion. Because of the limitations imposed by available market liquidity, LTCM was considering whether it was a prudent and opportune moment to return capital to investors.

Long-Term Capital Management, L.P. (LTCM) was in the business of engaging in trading strategies to exploit market pricing discrepancies. Because the firm employed strategies designed to make money over long horizons--from six months to two years or more--it adopted a long--term financing structure designed to allow it to withstand short-term market fluctuations. In many of its trades, the firm was in effect a seller of liquidity. LTCM generally sought to hedge the risk--exposure components of its positions that were not expected to add incremental value to portfolio performance and to increase the value-added component of its risk exposures by borrowing to increase the size of its positions. The fund's positions were diversified across many markets. This case is set in late August 1998. LTCM's fund was down nearly 40% since the beginning of 1998, with most of this loss having occurred in recent weeks. LTCM was evaluating the fund's liquidity and considering alternative courses of action. Possible choices included attempting a rapid reduction of many of the fund's positions and trying to raise additional capital.

The case describes the history of the Linux operating system and the open-source movement in general. Focuses on a critical decision being made by Red Hat, the largest distributor of Linux, about its future development efforts. The decision allows students to explore alternative approaches to software development and examine the dramatic success of the open-source method.

Marisa Caris oversees real estate investments for the IBET Pension Fund. She must value each of the existing eight properties and determine a strategy for going forward. A rewritten version of an earlier case.

Goodyear is planning to launch an innovative new tire in a price sensitive and highly competitive category. The case deals with channel conflicts and management issues arising in mature product categories.