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Following a store expansion in 1993, a small general merchandise retailer has not realized the expected growth in sales volume, and is now, in fact, losing money. He is evaluating his product offerings, service levels, hours, inventory, and pricing, and is trying to decide what he should do next.

General Mills and Nestle were meeting to discuss the possibility of cooperation between the two companies in the breakfast cereal business. Executives from General Mills were arriving in a week's time and an executive vice-president at Nestle was charged with preparing a briefing on General Mills before their arrival. The executive vice-president had recently decided that Nestle should consider taking a partner in the breakfast cereal business and had collected some information on General Mills. The joint venture was of interest to Nestle because its European breakfast cereal business had been performing poorly. General Mills was interested because it has no significant breakfast cereal business outside of the United States. However, the fundamental issue was why Nestle had not made a success of the business in Europe, and what changes the company would need to make for the business to be a success. The balance between global strategy and local operations is central to this case.

Senior management of Hydro-Quebec were faced with the problem of how to avoid the possible cancellation of its multibillion dollar hydroelectric development project due to highly publicized opposition from aboriginal rights groups and environmental activists. This opposition was jeopardizing a major export contract by the New York Power Authority. Hydro-Quebec's financial performance, in particular its ability to continue servicing its large U.S.-denominated debt, was an important factor in the economic health and potential sovereignty of the Province of Quebec. The focus on stakeholder analysis is an excellent review of the complexity of decision-making in a highly volatile setting.

The chairman and CEO of Imasco Limited was reviewing an acquisition proposal from one of its operating units, Hardee's Food Systems, to purchase the Roy Rogers Restaurant chain. While he was inclined to support the proposal, he wanted to carefully weigh its broader impact for Imasco as a whole. The probable price of $390 million represented a substantial commitment of funds, at a time of slowing growth in the U.S. fast food business.

LaPeux Eau de Toilette focuses on inventory valuation of a merchandising company. It tests students' understanding of LIFO, FIFO, weighted-average cost, lower-of-cost-and-market rule, FOB destination, FOB shipping point, purchase discounts and duty and taxes on importing. The president and owner, Nicolette LaPeux, is the decision-maker faced with the task of assessing how the accounting methods used in the inventory valuation affect the overall financial position of the company.

The newly appointed president and CEO of Wellington Insurance, a company without hope according to a recent consultant's report, is faced with the challenge of effecting a complete revitalization at Wellington when prospects for the industry and company look bleak. The case series Wellington Insurance (B) and Wellington Insurance (B1) (Condensed B Case) provides the opportunity to experience the full breadth of strategic analysis, from analyzing the competitive options within an industry to assessing an organization's readiness and capability for revolutionary change.

The Wellington (B) case takes the position of the new chief operating officer of Wellington. He is looking back on the successful turnaround achieved by Murray Wallace (this is described in Wellington Insurance (A)), and wondering how he can build on it. In particular, he is concerned about (a) whether the high-stress environment of change that Wallace generated can be sustained, and (b) whether he is in the position to take decisive action, bearing in mind the temporary appointment of the chairman as CEO.

A telephone company is launching a new network feature, voice mail, and requires a complete marketing communication program. This case provides detailed market information to enable specification of target audiences and communication objectives. (A sequel to this case addresses media and production costs, Newton Launch (B).)

A telephone company has identified the target audiences and objectives associated with its new voice mail system (see Newton Launch (A)). This case provides very detailed media and production costs and other information to enable the preparation of a complete marketing communications program for the launch of voice mail. The two cases constitute a very thorough workout in all aspects of marketing communication, especially advertising, direct marketing, merchandising, and publicity.

The manager of a telephone company is examining all major forms of marketing research in an effort to answer questions about how to package together 15 network features for the residential market. This case is especially useful to illustrate research design issues.

Linda Metzler, newly-appointed production planning manager, is drafting an aggregate production plan for the company's refrigerators, freezers and air conditioners for the next year. She has considered three plans. Students are asked to devise better plans and to evaluate the quantitative and qualitative factors favouring them. Ultimately, the use of linear programming to construct aggregate plans will be introduced.

The managing partner of an international public accounting firm must determine where his plan to restructure the office failed. The reorganization was motivated by a need to make the office more market driven. He thought he had managed the change process well; however, recent events raised considerable doubt about its success.

The University of Western Ontario's fitness unit coordinator was wondering how to improve the aerobics program. With financial and time constraints, a very seasonal demand pattern, and an entirely part-time staff with relatively short tenure, she wondered how to improve the quality of service, the suitability of classes, the number of classes, and the productivity of program administration. Students have to analyze market survey data and develop a plan of action.

Northern Telecom Canada is launching its new payphone system, Millennium. The marketing director for the new line of pay telephones is considering how to price the terminal part of the system. There are many considerations, including an extensive evaluation of the economic value of the system to the telephone company's customers, pay telephone agents, users and, of course, Northern Telecom itself. A complete marketing plan is required to sell to telcos, agents, and end users. This case requires much greater than usual preparation time.

First Fidelity Bancorporation, a holding company for eight independent banks in the New Jersey and Pennsylvania areas, was going through a major restructuring and rationalization in response to serious financial problems, threats of regulatory control and changing market demands. In this reorganization, the head of corporate operations and systems was considering ways to facilitate the restructuring. He was seriously considering outsourcing as an alternative way to manage the internal information systems. The case explores the simple economics behind an outsourcing strategy and the complicated technical, political and cultural rationalization of a hierarchical, independent organization into a centrally-managed operation. Follow-up cases First Fidelity Bancorporation (B): Selecting an Outsourcing Vendor and First Fidelity Bancorporation (C): Managing an Outsourcing Relationship With EDS are available.

Planning is underway for the launch of Pert Plus shampoo in Canada following two successful product launches in the U.S. A number of launch decisions have already been made. Major decisions remain to be made on pricing and on response to probable trade pressure for compensation on inventory of the original product. The teaching objectives include the development of pricing decision-making skills through analyses of consumer behaviour, trade behaviour, and forecast financial outcomes.

Richard Romano, a principal of a small real estate appraisal firm, faced an interesting ethical dilemma. A client had just stated that if the firm did not increase its appraised value of the client's commercial property by $4.5 million (15%), he would take his business elsewhere. Potentially, the client had a large volume of business which the young appraisal firm could certainly use. Richard must consider the firm's economic health in both the short and long terms, his personal values, and the ethical guidelines of the Appraisal Institute of Canada in making this decision.

This note introduces students to some of the options that managers consider when financing is needed. Internal financing options such as improving operating cashflow, adjusting working capital and disposing fixed assets are examined. The advantages and disadvantages of external financing options (i.e., debt or equity) are also briefly covered.

Doug Mason wished to create a new product that would cater to the interests of a new age generation, and he chose the development of a beverage that would have a healthy lifestyle image. His entrepreneurial start-up led to very rapid expansion and ultimately to sales in other countries. Clearly Canadian relies upon other companies to provide equipment for transportation and distribution, enabling it to operate with relatively few employees and a small base of physical capital. The case poses an interesting question, Is the company a small service sector enterprise or a large manufacturing business?

The owner of a lumber and building supply business is interested in finding out how much the business is worth and how to go about selling it. The business is currently enjoying considerable success and earnings are at record levels. She must decide which valuation method to choose.