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Celestica, Inc. - Memory Business Unit
Celestica's memory products group is considering relocating and/or reconfiguring its production facilities. The Memory Products' general manager, has asked the process control engineer, to investigate the possibilities. One option being considered is moving from a process to a cellular layout. Both moving and reorganizing have attractive benefits as well as significant risks and costs. -
Air Canada and Canadian Airlines: Accounting for Leases
After a turbulent year in the Canadian airline industry, Madelaine Mercier wants to reevaluate her investment in Air Canada and Canadian Airlines. She is wondering how she should reflect the extensive amount of leases used by the two companies in her analysis. She is unsure if she should make adjustments to the company's financial statements and is curious to know whether these adjustments would make a material difference in her analysis. -
Shrimp Farming in Ecuador
The primary decision maker operated an extensive shrimp farming business in Ecuador. The shrimp value chain consisted of many activities that culminated in the preparation of a wide variety of frozen appetizers and dinners. In order to increase profitability, the company faced the challenges of moving up the value chain. Meanwhile, global consumption of shrimp value-added products was increasing rapidly. Foreign food processors and retailers had an interest in guaranteeing supply by integrating backwards into the shrimp farming business. A joint venture might offer benefits to both the company and a foreign corporation. The case raises issues of concern from the perspective of both potential partners. Ecuador had just emerged from a political revolution; interest rates and foreign exchange rates were unstable; financial institutions in Ecuador were charging extremely high interest rates; labour unrest might result in various kinds of work stoppages. In such a rapidly changing environment of business, how should the company plan for its economic future? -
International Decorative Glass
International Decorative Glass (IDG) is a small manufacturer of glass panels which are inserted into exterior steel doors. While their primary market is in the U.S., most of IDG's manufacturing is done in China through a joint venture arrangement. In response to rapidly growing customer demand, the vice president of operations, is considering the expansion of either their Chinese or Canadian manufacturing operations. Alternatively, he has been approached by a supplier to form a new joint venture manufacturing operation in Vietnam. Financial, political and infrastructural considerations must be weighed, in addition to any signal that would be sent to their current Chinese partners. -
VBF Tubing (Abridged)
VBF Tubing, a Dutch firm, is facing increased demand for its products, high inventory levels, and expensive setup costs. In light of these problems, the logistics manager must decide how to respond to a proposal that longer production runs be scheduled. The production, cost and market data supplied permit the students to explore the necessity and implications of changing production batch sizes on these competing priorities. In particular, the application of the traditional Economic Order Quantity can be assessed based on other facility-wide operating practices. -
Nortel - Re-inventing I/S
With changes in both technology and the environment, Nortel has had to evolve from a company that sells a collection of telecommunication products to a company that sells integrated packages of products that satisfy specific customer needs. In the past, I/S has been spread across the various product divisions, supporting a highly decentralized corporate structure. Now it has been charged with transforming itself to facilitate the company's need for greater integration, including a move to standardized systems. I/S must re-define its role and restructure itself to fulfill its new mandate. After an extensive analysis and design exercise, the I/S function has been re-visualized as centering on three key processes: client management, solution delivery, and business support. This represents a significant change from a traditional I/S shop that focuses on building applications and infrastructure. While there is broad support for the changes in principle, actually getting the new processes fully articulated and implemented presents a significant challenge. -
Vincor International Inc.
In early 1996, Vincor was Canada's largest wine company. It had grown rapidly, largely through acquisition. It was now looking at the prospects of an Initial Public Offering (IPO) in order to reduce debt and fund further growth. But what specifically was the case to put before the investment community? What were the industry opportunities? And what were the strategies to capitalize on these? Could a compelling case be built for a reasonably priced IPO? The case presents relevant industry and company data and asks the reader to take the position of management and develop the IPO case. (A 23-minute video, which presents management's road show program, can be purchased for the case; video 7A96M007.) Data are available on the nature and success of the IPO. -
Central Insurance Canada
In response to a recent incident the supervisor of administration services was trying to decide how best to prevent the company from sending out mail with insufficient postage. The case describes how the company determines how much postage is required and the process Canada Post uses in dealing with mail with insufficient postage. The supervisor is examining two options. One involves a software solution to calculate envelope weight, the other involves mechanically weighing each envelope. -
Rossiter Tool Company, PLC
The general sales manager for Rossiter Tool Company, PLC, has received a request from a dealer who has been selling the Rossiter line of tools for approximately four years. The dealer wishes to be considered as a territorial distributor, thus qualifying him for additional discounts on purchases from Rossiter. Rossiter executives realize that granting this request will mean a shift in the company's distribution policy. -
Tristan & America
In April 1997, Tristan & America, an apparel retail company based in Montreal, was considering the purchase of StaffWorks, an automated labor-scheduling system marketed by Campbell Software. The M.I.S. director of Tristan & America, was concerned about whether StaffWorks fit his company's need, how the software related to other information systems currently used by the company, and what constituted a good scheduling package. This case illustrates the use of decision support systems (particularly the scheduling system) and store traffic data in retail management. It also describes the considerations in scheduling retail store staff and the complexities of organizational buying in the retail context. -
Crystal Fruit Sales Inc.
The manager of Northern Rivers Community and Business Development, must decide whether he will grant a $100,000 loan to the owners of Three Star Food Service Ltd. The owners of Three Star are contemplating the purchase of Crystal Fruit Sales. Crystal's past financial performance, the business conditions, the character of the new owners, capacity to repay and collateral issues must be considered. -
Northern Telecom in China, 1972 to 1994
Nortel, a large Canadian telecommunications company, has been doing business in China since 1972. By mid-1994, Nortel had successfully developed two joint ventures in China but two others were bogged down in negotiations. The two that had been finalized would not make any money for Nortel, while the one in Guangdong that would make a profit was hopelessly bogged down. The chairman of Nortel China was contemplating alternative ways of expediting the negotiations. One alternative was to help the Chinese achieve their telecommunication-related industrial policy, by investing in an agreement whereby Nortel would help train R&D technical experts in China; this demonstration of goodwill might expedite the Guangdong project. Other options included selecting a new set of more cooperative partners; standing tough in the current negotiations; using the unsigned Advanced Semiconductor joint venture as a bargaining chip, as it would contribute to the Chinese government's goal of industrial self-sufficiency; or investing more heavily in back door and guanxi relationships. If Nortel could not find a way in which to expedite negotiations with the Chinese, one of Nortel's major competitors could easily pick up where Nortel left off. -
Cisco Systems Inc.: Managing Corporate Growth Using an Intranet
Cisco is the world's largest, and leading manufacturer and distributor of routers and switches. In order to achieve this position, it has adopted an aggressive growth strategy, acquiring companies, their employees, and new employees at a rate of 250 to 300 employees per month. The Cisco Employee Connection (CEC), a corporate intranet, is the primary means by which new employees are absorbed and acculturated. The CEC is also the principal means of interaction for the multi-functional work team approach Cisco employs. This case critically assesses this approach to scaling an organization, and the extent to which it can be maintained and transferred. -
Note on Introduction to Project Management
The basics of project management are described and applied to a simple tutorial problem. Microsoft Project, as one software tool, is used in the context of the tutorial project. The steps for project management, as well as the calculation of the critical path, using Critical Path Method, are presented. -
Gadget Toy Company
A product development manager must plan the launch of a new toy for the upcoming Christmas season. This exercise provides a basic introduction to applying project planning techniques and associated calculations, and can be used in conjunction with computer project planning software. Activity times and their precedence relationships are explicitly given, and the students can plan and replan the project to meet the schedule deadline. (A Microsoft Project files, products 7A97D002A, 7A97D002B and 7A97D002C are available for use with this case.) -
Elliot Lake Retirement Living, Inc.
The general manager of Elliot Lake Retirement Living (ELRL), was trying to decide whether to adopt the recommendations in a student report to broaden the organization's service activities by expanding into assisted living. Although success would allow the organization to grow, failure might threaten the survival of the very town. ELRL was unique; it had been established as a not-for-profit enterprise to try to save the isolated northern Ontario town of Elliot Lake, whose almost exclusive raison d'etre was about to disappear with the impending closure of the area's last uranium mine. Its purpose was to establish the town as a retirement centre. Students have to analyze how the proposal will affect the company's ability to deliver the new service concept. The general manager was considering several options in addition to assisted living. A reasonable course of action must include a consideration of ELRL's status as a not-for-profit entity with a number of significant stakeholders. -
Sprint - La Conexion Familiar (B)
Management is faced with a broad range of opposition and criticism after closing the telemarketing operation. Labor organizations force legal proceedings, the primary telecommunications workers union in Mexico demands action under the Labor Side Agreement of the North American Free Trade Agreement and, ultimately, a court ruling demands that the company rehire and compensate employees displaced by the closure of the operation. This case was written to accompany Sprint - La Conexion Familiar (A), case 9A97C001. -
Procter & Gamble in Eastern Europe (B)
Procter & Gamble has been in Eastern Europe for 2 1/2 years. The case outlines the problems, missed opportunities and difficulties Procter & Gamble has had in transplanting their corporate culture onto the newly liberalized economies of Eastern Europe. The case requires students to generate alternatives for Procter & Gamble's future strategy in Eastern Europe given the political, economic, societal, and technological (PEST) environment. -
Sprint - La Conexion Familiar (A)
Management must decide what action to take with a small telemarketing operation that is about to vote on union representation. If employees vote in favor of a union, the operation would become the first business unit to be represented by a union. Closure of the plant is an option to be considered. The mostly Hispanic workforce becomes an additional consideration in the (B) case, 9A97C002. -
Procter & Gamble in Eastern Europe (A)
Procter & Gamble must determine an entry strategy for Eastern Europe. The case examines the former Soviet Bloc countries, the opportunity they provide for a business endeavor like Procter & Gamble, and the product choices Procter & Gamble has available to them. Students must examine the political, economic, societal, and technological (PEST) environment and determine if the newly liberalized economies of Eastern Europe provide appropriate investment opportunities for Procter & Gamble. Students must also determine the scope of the necessary investment, the time profile and the difficulties it may face. A follow-up case (9A97H002) is available.