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Bergerac Systems: The Challenge of Backward Integration
Bergerac Systems is a small, rapidly growing manufacturer of diagnostic instruments used in veterinary practices. The company introduced the OmniVue chemistry analyzer, which enables veterinarians to run a wide range of blood and blood chemistry tests on their animal patients in the office instead of sending them to outside laboratories. OmniVue is easy to operate and produces highly reliable results using a proprietary cartridge for holding the blood specimen during the analysis. Sales of these single-use cartridges are an important part of the revenue stream for the product line. The firm relies on two outside suppliers for the plastic components of the cartridges. The CEO is concerned about inconsistent delivery from the cartridge suppliers which have resulted in shortages and stock-outs. To address the supply chain problems, the CEO considers acquiring one of the suppliers, GenieTech, while the director of planning proposes building the required capabilities within the company's existing manufacturing facilities. Students must perform a quantitative and qualitative analysis of a "make vs. buy" decision while considering expected production capacities, market forecasts, and the company's overall sourcing strategy. -
Bergerac Systems: The Challenge of Backward Integration, Spreadsheet Supplement
Student Spreadsheet for Product Number 4381. -
The National Geographic Society (A)
In January 2010, John Fahey, president, CEO, and chairman of the board of trustees' executive committee of the Washington, D.C.-based National Geographic Society (NGS), must decide how best to organize the 121-year old mission-driven organization for a world of accelerating digital convergence and decreasing magazine sales. Historically a proponent of evolutionary change, he is considering a radical move: creating a senior management position responsible for e-commerce to coordinate web-based offerings and outreach across the Society's various departments, transition NGS from its many disparate and independent direct mail efforts to a more integrated and strategic e-commerce strategy, and leverage the NGS relationship with its members-currently defined as magazine subscribers, since a subscription comes with Society membership. Putting the final touches on the position and its reporting arrangements has led to significant debate within the organization, and Fahey is torn about how to proceed. -
Growing Pains at Stroz Friedberg
In late spring 2009, Stroz Friedberg co-presidents Edward Stroz and Eric Friedberg had to set growth targets for 2010. The leading global consulting firm they had built specialized in managing digital risk and uncovering digital evidence and had grown very rapidly. With the firm's CFO, they believed that the firm could grow from $58 million to $72 million, a growth rate of 27% over the preceding year. However, the firm's 11 offices had submitted first draft FY 2010 plans that together added up to firm-wide revenues of only $53 million, a growth rate of negative 10.2%. The preceding years of rapid growth had been successful but challenging, and a thorough review of the firm's culture, systems, structure, and processes in late 2008 had resulted in a significant set of changes to which the organization was still adjusting. Stroz and Friedberg wondered whether to push for continued, aggressive growth. -
MindTree: A Community of Communities
MindTree is a mid-sized Indian IT services company known for its knowledge management practices, its collaborative communities, and its strong culture and values. The CEO has set a goal of becoming a $1 billion company by 2014; to reach that goal, employees must create several new businesses. The head of knowledge management must decide how his function should change in order to become more supportive of innovation and new business development. -
Zensar: The Future of Vision Communities (B)
Zensar is a rapidly growing, mid-sized Indian IT services company with a collaborative management philosophy and innovative HR policies. One of its practices, Vision Communities, is an inclusive forum for innovation and strategy formulation. As the company grows, managers must decide how to scale the Vision Community process so that it retains its spirit of employee involvement and engagement while encompassing a larger, more geographically dispersed group of participants. -
Zensar: The Future of Vision Communities (A)
Zensar is a rapidly growing, mid-sized Indian IT services company with a collaborative management philosophy and innovative HR policies. One of its practices, Vision Communities, is an inclusive forum for innovation and strategy formulation. As the company grows, managers must decide how to scale the Vision Community process so that it retains its spirit of employee involvement and engagement while encompassing a larger, more geographically dispersed group of participants. -
TopCoder (A): Developing Software through Crowdsourcing
TopCoder's crowdsourcing-based business model, in which software is developed through online tournaments, is presented. The case highlights how TopCoder has created a unique two-sided innovation platform consisting of a global community of over 225,000 developers who compete to write software modules for its over 40 clients. Provides details of a unique innovation platform where complex software is developed through ongoing online competitions. By outlining the company's evolution, the challenges of building a community and refining a web-based competition platform are illustrated. Experiences and perspectives from TopCoder community members and clients help show what it means to work from within or in cooperation with an online community. In the case, the use of distributed innovation and its potential merits as a corporate problem solving mechanism is discussed. Issues related to TopCoder's scalability, profitability, and growth are also explored. -
RL Wolfe: Implementing Self-Directed Teams
Key topics include team design, team management, job design, employee empowerment, implementing change, and high performance workforces. In 2004, John Amasi, the director of production for a manufacturer of plastic pipe, introduced the concept of self-directed teams into a newly rehabbed plant in Corpus Christi, Texas. This was a major departure for RL Wolfe, whose other plants were unionized and rigidly hierarchical. By 2007, Corpus Christi is significantly outperforming the other plants in productivity, and Amasi tours the plant to identify remaining barriers to even higher productivity. Although the tour makes clear that many things are going right, it also reveals specific elements of the SDT concept that are not working optimally; some of these are communicated from the perspective of the workers themselves. At the end of the case, as Amasi sketches out ideas for increasing productivity at Corpus Christi, he also considers how he can persuade the unionized workforces at the other Wolfe plants to accept the SDT model. -
The Multiunit Enterprise
A multiunit enterprise is a geographically dispersed organization built from standard units (stores, restaurants, or branches) that are aggregated into larger geographic groupings (districts, regions, and divisions). Although this organizational structure has become the norm in several industries, it has received little attention from academics and consultants. Garvin and Levesque set out to fill that gap in management thinking with their research. The authors closely studied the office supply company Staples for two years and then collected data from 12 other multiunit enterprises. In this article, they discuss the unique problems that such corporations face, describe how managers tackle those challenges, and offer lessons that will help all types of organizations execute strategy. In a multiunit enterprise, four tiers of management constitute the field organization: store, district, regional, and divisional heads. All these managers are responsible for meeting targets set by corporate headquarters and implementing strategy. To do so, they adhere to five principles of organizational design. First, the field organization's different tiers have overlapping responsibilities; together they create a multilayered net to catch any problems that arise. Second, managers at all levels serve as integrators, coordinating diverse activities and optimizing the efforts of the whole organization rather than its parts. Third, higher-level managers filter data from headquarters to frontline managers, who otherwise might feel overwhelmed by a constant stream of initiatives. Fourth, regional and divisional heads in particular act as translators, defining in concrete terms how the field organization can roll out initiatives. Finally, all managers share responsibility for talent development. -
Is Yours a Learning Organization?
An organization with a strong learning culture faces the unpredictable deftly. However, a concrete method for understanding precisely how an institution learns and for identifying specific steps to help it learn better has remained elusive. A new survey instrument from professors Garvin and Edmondson of Harvard Business School and assistant professor Gino of Carnegie Mellon University allows you to ground your efforts in becoming a learning organization. The tool's conceptual foundation is what the authors call the three building blocks of a learning organization. The first, a supportive learning environment, comprises psychological safety, appreciation of differences, openness to new ideas, and time for reflection. The second, concrete learning processes and practices, includes experimentation, information collection and analysis, and education and training. These two complementary elements are fortified by the final building block: leadership that reinforces learning. The survey instrument enables a granular examination of all these particulars, scores each of them, and provides a framework for detailed, comparative analysis. You can make comparisons within and among your institution's functional areas, between your organization and others, and against benchmarks that the authors have derived from their surveys of hundreds of executives in many industries. After discussing how to use their tool, the authors share the insights they acquired as they developed it. Above all, they emphasize the importance of dialogue and diagnosis as you nurture your company and its processes with the aim of becoming a learning organization. The authors' goal--and the purpose of their tool--is to help you paint an honest picture of your firm's learning culture and of the leaders who set its tone. -
Harvard Business School
In 2008 the Boston-based Harvard Business School would turn 100. As the centennial year began, the HBS community and leadership were reflecting on how the School might fulfill its mission to "develop business leaders who make a difference in the world" in the next century. This case focuses on the school's commitment to general management education and its implementation in an increasingly globalized business world. -
University of Chicago Graduate School of Business
The University of Chicago Graduate School of Business offered a discipline-based, flexible MBA program to full time, evening, weekend, and executive MBA students. At a time when other MBA programs were introducing significant changes to their curricula, Chicago felt its traditional approach worked well, and it was not contemplating significant change. This case describes Chicago's approach to MBA education and the challenges it faced. -
Stanford Graduate School of Business
In fall 2007, Stanford Graduate School of Business (GSB) adopted a new curriculum that it heralded as a "revolutionary change in management education." The new approach aimed at increasing the level and quality of student academic engagement. This case describes the concept and described its implementation and early challenges. -
Yale School of Management
In the fall of 2006, the Yale School of Management launched a new core curriculum in its MBA program. The new curriculum eliminated traditional discipline-based courses such as finance and marketing and replaced them with courses that sought to integrate teaching and learning across functions and from the perspective of the constituents with whom leaders typically interacted, such as customers, competitors, and investors. This case examines the implementation of the new curriculum and how it transformed business education at the Yale School of Management. -
INSEAD
In the spring of 2008, INSEAD offered a one-year MBA, PhD, executive MBA, and non-degree management education programs to nearly 900 MBA students, 64 PhD candidates, and over 8,500 executive education students. With two campuses, one in Europe and one in Asia, INSEAD had been a pioneer in setting up a secondary campus as a way to push the internationalization of its faculty and curriculum. The case explores INSEAD's approach to business education in a global context, and how it functions with a dual campus setting. -
The Center for Creative Leadership
The Center for Creative Leadership (CCL) was founded in 1970 on the notion that leadership was not innate but could be learned. CCL evolved into one of the world's top leadership development organizations, involved in both research and program design and delivery. This case explores CCL's approach to leadership and management education for executives and presents some of the challenges the CCL faces as many different types of leadership development providers continue to emerge. -
Meeting the Challenge of Corporate Entrepreneurship
To be competitive, companies must grow innovative new businesses. Corporate entrepreneurship, however, isn't easy. New ventures face innumerable barriers and seldom mesh smoothly with well-established systems, processes, and cultures. Nonetheless, success requires a balance of old and new organizational traits--and unless companies keep those opposing forces in equilibrium, their new businesses will flounder. The authors describe the challenges companies face when they pursue new businesses, as well as the usual problematic responses to those challenges. Such companies, they say, must perform three balancing acts: 1) Develop strategy by trial and error, which includes narrowing potential choices, learning from small samples, using prototypes to test business models, tracking progress through nonfinancial measures, and knowing how and when to pull the plug on a new venture; 2) Find the best combination of old and new operational processes by staffing new ventures with "mature turks," changing veterans' thinking, knowing which capabilities to develop and which to acquire, and having old and new businesses share responsibility for operating decisions; 3. Strike the right balance of integration and autonomy by assigning both corporate and operating sponsors to new ventures, establishing criteria for handoffs to existing divisions, and using creative organizational structures. The authors provide a detailed look at IBM's Emerging Business Opportunity system, which manages all these balancing acts simultaneously. -
Management Levels at Staples (E): Senior Vice President
Supplements the (A) case. -
Management Levels at Staples (C): District Manager
Supplements the (A) case.