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The Hydro-Quebec and Great Whale Project case focuses on the ongoing negotiations between the Quebec utility and New York Power Authority (NYPA) over a $17 billion sale of hydroelectric power. If a contract is ratified, Hydro-Quebec will proceed with the development of a major river system in northern Quebec resulting in damage to the ecosystem and the displacement of several thousand native people. Native people, as well environmental groups, have become highly vocal in their opposition to the project. These pressures, combined with falling demand estimates for electrical energy, have resulted in NYPA backing away from the negotiations. Officials at Hydro-Quebec are wondering how to proceed in an apparently no-win situation.

The new editor of the London Free Press (LFP) was appointed in November, 1987, with a mandate to make changes. Like most other North American daily newspapers, the LFP had been gradually losing readership, and its share of advertising revenues in the community was shrinking. Despite its ability to remain profitable, the new editor thought that it was not living up to its potential, especially since it was the only daily newspaper in London. He feared that there were ominous signs of continuing decline in market share, which could only mean still lower profits in the future. He had been hired from the Toronto Star and put in charge of LFP's newsroom and editorial department to do whatever was necessary to reverse this trend. Now, in 1991, he wondered if it would be possible to stop the slow decline of the newspaper, or if its shrinkage was an inevitable consequence of broader trends in the information industry and Canadian society. A follow-up case (9A95M017) is available.

This case is designed for in-class distribution to build on the London Free Press (A) case, 9A95M016. It presents information about an organizational change proposal involving the reorganization of the editorial department into cross-functional work groups which is designed to support the locally-responsive strategy of the London Free Press. The new cluster form of organization meets resistance from many who question not only whether it is a viable option, but also whether anything needed to be done at all. McLeod must decide whether, and how to proceed.

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.