個案總覽

North Pittsburgh Telephone Company (NPT) was the 31st largest telephone company in the United States. The marketing supervisor was wondering what position to take at the next management committee meeting regarding the possible introduction of usage sensitive pricing for NPT's new advanced custom calling services. He was responsible for marketing all NPT's network services. NPT was introducing the new services the following year on a subscription pricing basis, but there was some management support for offering usage sensitive pricing for the features as well. The next meeting would be critical in determining whether to offer usage sensitive pricing and if so, how.

The objective of this note is to define what is meant by mergers and acquisitions and to understand why they happen. The impact of these deals on shareholders of both the acquiring and acquired companies is investigated, and the reasons why some mergers succeed while others fail are examined. Finally, in order to determine the value of a firm, some valuation frameworks are provided.

Peter Munk, Chairman and Chief Executive Officer of American Barrick Resources Corporation, had to decide whether or not to make a bid for Lac Minerals. Lac Minerals was recently put into play when Royal Oak Mines made an unsolicited bid.

The producer of a stage show society needs to use network planning as part of project management to ensure that 10 performances are scheduled well over the next four months. Students will have to construct a network diagram, identify the critical path, and address questions regarding activity crashing. What is particularly unique is that they will have to create a list from the data presented to them at a meeting with the assistant producer. (NOTE: This case has two teaching notes: Number 8A95D15 addresses class discussion and Number 5A95D15 uses a Microsoft Project solution file, which is available with this version of the teaching note, product 7A95D015.)

The vice president of finance at Rocky Mountain High Ski Resort Inc. (RMH) was examining the alternatives for financing a proposed $25 million expansion. The well-known Western Canadian all-season resort planned to add several new runs, additional snowmaking capacity, another high-speed quad chair lift, a 700-seat restaurant, a new retail ski equipment store, and upgrades to the existing infrastructure. The directors of RMH were scheduled to meet in two weeks to approve both the proposed expansion and financing plans.

The manager of a medical laboratory must determine the best way to handle necessary layoffs. She has designed a new supervisory structure that will better facilitate the company's objectives toward empowerment and will provide profitable operations despite funding cutbacks. In order to implement the revised structure, she must eliminate five supervisory positions, necessitating the layoffs of five long-term employees. The remaining supervisors' responsibilities will greatly increase. She must determine the logistics for communicating these decisions to the supervisors and their staff without hindering morale and productivity. (A related case, Medictest Laboratories (B), case 9A94J031, outlines how Jean proceeded.)

The manager of a medical laboratory must determine the best way to communicate a cutback decision. She has designed a new supervisory structure that will better facilitate the company's objectives toward empowerment and will provide profitable operations despite funding cutbacks. This is a detailed description of Jean Kelly's action plan proceeding from Medictest Laboratories (A), case 9A94J030.

A young recent graduate has just been hired as a consultant by the tired owner of a small syndicate. His task is to solve the many problems existing within the various businesses, including restaurants, real estate, and a retirement home. The financial situation is severe and there are several personnel conflicts. He must resolve these problems while effectively managing the owner.

In the mid-1990s McLeod Motors rationalized a number of motor end shields to reduce manufacturing costs, improve service, and reduce inventories. However, inventories have apparently risen. Students must identify why McLeod has inventory, how large the inventory might have been before the rationalization, how large they might be now, why they are so large, and what could be done to reduce inventory levels. The case can be used in conjunction with a discussion on inventory function.

This case examines a proposed marketing joint venture which would introduce Neilson brand chocolate bars to Mexican consumers. Pepsico Foods' Mexican subsidiary -- already servicing 450,000 retail stores -- has suggested a joint branding agreement. Alternative distribution arrangements are available which would allow Neilson to maintain greater control over its name, at the cost of slower market access. (A sequel to this case is available Neilson International in Mexico (B).)

Neilson linked up with Sabritas, a Pepsico Co. subsidiary, and launched Neilson brand chocolate bars in Mexico. The next year, Neilson sales to Mexico exceeded $23 million. The Mexican peso abruptly underwent a 40% devaluation which put major pressure on both partners' margins. This raised issues of future pricing and competitive response. More fundamentally, there were now concerns about the overall stability and potential of the Mexican market. (This is a supplement to Neilson International in Mexico (A).)

Ben & Jerry's makes super-premium ice cream under a tri-part mission to produce the finest quality all-natural ice cream, to be socially conscious and improve the quality of life of a broad community, and to operate profitably so that shareholder values continue to grow and employees enjoy career opportunities and financial rewards. The company has grown from one small ice cream parlor in a converted gas station to achieving sales of over $130 million in 1992. This note provides the background for the decision to be made in Iceverks (A): Ben & Jerry's in Russia.

It has been four years since the president had first travelled to Russia to find a partner so that the Ben & Jerry's finest quality, socially conscious and economically feasible super-premium ice cream could be produced in Russia. Now, just a few months in operation, the joint venture was up and running and already profitable. The partners wanted to expand and opportunities were readily available but the president questioned the feasibility of such a move. This case presents a common dilemma faced by international companies - how to manage divergent partner goals and perspectives. May be used with Ben & Jerry's Homemade Inc.: Background Note and Iceverks (B): Summer of 1993.

The treasurer of a Toronto men's wear manufacturer attempts to negotiate bank financing for his company. The task is made more complex by the need to purchase material from Hong Kong and sales made to the United States and Italy.

A project manager in the Operational Research Department of an automobile assembly plant must decide how he can most effectively redirect his team to meet management's deadline and design expectations. For five months he had been supervising the work of three young company employees who were developing a simulated assembly line. However, because his current responsibilities left him in charge of four or five projects at a time, all in varying stages of completion, he had left his assistants to work together with very little intervention from him. As a result, he is facing the pressure of an uncompleted project and an unnecessarily elaborate design. (This case should be used with Antar Automobile Company - Part II: Team and Individual Objectives and Antar Automobile Company - Part III: Conflicting Objectives.)

Techno Systems, an industry leader in providing electronic kit assemblies for customized commercial applications and government, is currently undergoing a transition from a heavy government orientation to a more commercial customer base. A director of sourcing has been asked to prepare a review of the sourcing function by using benchmarking. She is considering how to effectively implement a benchmarking effort that would contribute to the sourcing review. Based upon her presentation, the upper management will determine the need for strategy development in the sourcing department. In essence, she is determining the hierarchical placement of the sourcing department for the future. This case affords the student an opportunity to examine sourcing in relation to operations strategy and to investigate benchmarking practices. It includes information compiled from benchmark studies conducted by the Center for Advanced Purchasing Studies (CAPS) and provides an insight into gated benchmarking.

An entrepreneur who is anxious to start a business manufacturing a pasta server requires funds to finance the acquisition of equipment and working capital. A venture capital investor demands a cash budget for the first year of business as well as projected financial statements.

Second Cup, the largest chain of specialty coffee stores in Canada, wants to raise money through an initial public offering in order to pay off the company's long-term debt and take advantage of growth opportunities. Nesbitt Thomson, the investment dealer working on the initial public offering, must decide what the company is worth and how many shares to issue in order to raise $14 million.

Increasingly, companies are outsourcing the manufacture of parts for their products. But what should they be looking for in a supply partner and what form should these partnerships take? The authors look to the auto industry for answers.

Labatt Breweries of Canada introduced its Ice Beer to the Canadian market, it gained rapid acceptance by consumers, and has spawned imitators and attracted the interest of brewers in the United States. The president of Labatt Breweries, Hugo Powell, must decide if and how Labatt should enter the U.S. market with its product and new brewing technology. The case provides information on the Canadian and United States beer markets, pointing out the differences that Labatt has to consider in trying to profit from its new product in the U.S. An in-depth note Note on the Mexican Beer Industry is available to accompany this case.