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Chairman and CEO Alain Gomez discusses Thomson, the French leader in TVs and related products since its 1987 acquisition of the GE/RCA consumer electronics business. In order to overtake Asian competitors European companies must consolidate through acquisitions or ventures. Thomson has expanded market share through acquisitions and has backed joint ventures with competitors to gain access to critical technologies; invested heavily in its own R&D; and participated in European R&D consortia. Cultural diversity is one asset that both Europe and the U.S. must learn to leverage more aggressively. It is also time to rethink old assumptions about markets, states, and economic success.

The old models of computer-based competition no longer apply. The new era is driven by the greatest upheaval in computer technology since the earliest days of the industry. The game is shifting from who can build the newest proprietary electronic tools to who can use and modify available tools more effectively. In terms of competitiveness, it is increasingly difficult for computerized distribution systems to bind customers to products. The future of electronic distribution is in neutral electronic markets that sell products from different vendors and make their data available to all.

A fire is reported in a Black & Decker Spacemaker Plus Coffeemaker. This newly introduced product is a "Key Introduction" for Black & Decker's Household Product Group (HPG). HPG's president has to decide whether the product should be recalled and, if so, how the recall should be implemented. Teaching objectives include: 1) managing a product recall, 2) ethical considerations in product safety and product recalls, and 3) the meaning of customer care.

A young entrepreneur examines an 80,000 square foot office/warehouse building as a potential acquisition. The building is currently fully leased but all four leases will expire shortly. Due to changing market conditions, the protagonist has to look at current market conditions as well as trying to estimate future conditions in order to complete his analysis. The case is designed to explore basic issues in real estate valuations. The emphasis is on developing a simple set-up based on the project's cash flows and then examining how returns and values are affected by changing certain assumptions.

Spreadsheet Supplement for case 390181

Spreadsheet supplement to case 190-085.

Assumes some knowledge of conjoint analysis. Permits analysis of basic results and dynamic market simulations in one class session.

Bridgeton Industries was experiencing reduced sales. To become more competitive it introduced a classification procedure for products based upon their productivity and other factors. Products were classified into three groups: world class, potentially world class, and non-world class. The firm outsources the non-world class products. This outsourcing causes the costs on the remaining products to increase because some costs associated with the outsourced products did not go away. These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral.

Describes the new policy of the National Archives of inviting corporate cosponsorship of historic exhibits and commemorations. In November 1989, Philip Morris Companies (PM) became the first cosponsor of the bicentennial commemoration of the Bill of Rights, and used the announcement of the cosponsorship as the foundation of a major corporate identity and image campaign in mass media. Also describes other current PM initiatives to sustain and improve its corporate image. Students are encouraged to think through the potential benefits and risks of PM's corporate campaigns, and then to examine the dimensions of this particular campaign.

Lowe's chain of 306 stores was anticipating fierce competition from their major market rival, Home Depot. As they reformulated the size of their new prototype stores and the mix of their merchandise, what would be the ultimate format? What impact would it have on their advertising strategy? How could they retain their contractor business which had been the mainstay of their operation since the 1950s. In addition, how should they emphasize in their advertising: wide selection, good service, and everyday attractive prices.

Population Services International (PSI) was a not-for-profit agency founded to disseminate family planning information and to market birth control products, primarily in less developed countries seeking to curb their population explosions. In 1976, PSI concluded an agreement with the government of Bangladesh to conduct a social marketing program, with the objective of using modern marketing techniques to sell subsidized contraceptives through commercial outlets. Seven years later, three PSI managers were meeting at PSI's Washington, D.C. headquarters to discuss 1984-86 marketing strategy for two products: Raja condoms and Maya birth control pills. Of particular concern was the fact that the marketing approach that had proven extremely successful for Raja was yielding poor sales results for Maya. The PSI managers needed to devise an action plan for improving Maya sales.

Describes the reactions of public interest groups, members of the House of Representatives, and others. Further documents reactions to the choice of Philip Morris (PM) as a sponsor. Invites students to weigh the corporate pluses and minuses for PM, given these reactions.

In many ways Frost is an archetypal, small, dying manufacturing firm. With profits gone in a no-growth business and unable to diversify, Charles Frost bets the company on computer numerically controlled (CNC) equipment to replace the existing 1940s era screw machines. The case is designed to allow discussion of: 1) why they can't diversify? (they have no unique skills and are unable as an organization to change from the existing processes which focus on the current product), 2) whether CNC can solve the problem and whether they can afford it, and 3) how each functional area will have to change if Frost is to evolve into a "capability house."

The Oakland A's baseball team underwent a major turnaround during the 1980s, both on the field and in the business office. One of the most significant improvements came in the area of customer service. The A's management believed that if they took care of their fans, they would remain loyal through winning and losing seasons.

Nike is reviewing its strategy for producing shoes in China for the U.S. market. Compares the experience in China with that in other countries.

A vehicle for the discussion of a very important set of institutional arrangements that helped enable America to mobilize its economy for World War II.

Ad Council wished to run an educational campaign aimed at preventing the spread of AIDS. They were challenged to find acceptable ways to address this very sensitive subject matter--ways that the media and the public would approve. One of the big challenges was to make the word "condom" acceptable to the TV networks as condom use can prevent the spread of the HIV virus. The case gives a brief explanation of the disease and the reasons why Ad Council felt this campaign was necessary. Also outlines the target groups selected and basic strategy. The primary question is "How will this campaign get media approval?"

The answer to the (A) case. Explains Ad Council's plan. Outlines alliance with American Advertising Federation to enlist support of local Ad clubs, media presentation, and implementation strategy.

The new vice president of infant and dietetic products of Nestle Alimentana S.A. has to make recommendations on the company's marketing programs for its infant formulas in developing countries. The U.S. subsidiary is currently the target of a consumer boycott because of the company's current and historical marketing programs. Introduces the question of using Western marketing techniques in the Third World, the problems of distributor control, and potential product misuse because of consumer poverty and ignorance. Provides a summary of the industry's evolution and a chronology of the controversy. Recommended: "Family Planning, Infant Mortality and Malnutrition," by E. Haubold, Swiss Review of World Affairs, March 1979.

Strategy making has changed. No longer is the carefully conducted industry analysis or deliberate strategic plan a guarantee of success. Speed matters. A strategy that takes too long to formulate is at least as ineffective as the wrong strategy. But how do decision makers, make fast, yet high-quality, strategic choices? This article describes the powerful tactics that fast decision makers use. They maintain constant watch over real-time operating information and rely on quick, comparative analysis to speed cognitive processing. They favor approaches to conflict resolution that are rapid and yet maintain group cohesion. Finally, their reliance on the private advice of experienced counselors and on integration with other decisions bolster their confidence to decide quickly in the face of big stakes and high uncertainty.