With its mission to "unsmoke the world" and its bold new purpose to replace cigarettes with less harmful tobacco products, Philip Morris International (PMI) was revolutionizing every part of its existing business model and, with it, the tobacco industry. Over a four-year period, PMI had established an entirely new product category for its new heated-tobacco IQOS brand and had become the global market leader in this fastest-growing group of reduced-risk products in the tobacco industry. To stay ahead of the rapidly evolving competition and to respond fast to changing market conditions, PMI fundamentally had to change its business model and the way it worked. Everyone in the organization was encouraged and empowered to participate actively in PMI's transformation journey, and digital had become the disruptive catalyst. Digital innovations in the supply chain were challenging existing processes and unlocked other opportunities that PMI had not thought about before. PMI had a two- to four-year lead on its main competitors and was now in a position to shape its future business model. But how was the business going to develop and what type of supply chain should it create to scale up its business in a volatile market where speed was king? The executive leadership team was under pressure to make this key decision soon, as the final supply chain strategy depended on it. But for a traditional B2B consumer goods company that was transforming into a technological customer-centric organization that operated within the regulatory constraints of the tobacco industry, which business model would work best for PMI?

When Luca Garavoglia became chairman of the Campari Group at the age of 23 following the death of his father, he immediately adopted a strategy of fast growth through acquisitions. Over the next 24 years, Campari acquired 26 companies, spending over €3 billion and establishing its own distribution network in 20 countries. This two-part case series describes how Campari transformed from a single-brand local Italian company to an important player in the global spirits industry with over 50 premium brands distributed in over 190 countries. CASE A follows Campari on its journey from 1994 to 2018, providing an overview of its history, business strategy, market place, trends and competitive landscape. learning objective: The case describes the successful transformation and survival of Campari as a small player among "giants" in a niche sector of the spirits industry. It can be used for class discussion on different business and social topics, such as: 1)Business strategy (SWOT, Porter's 5-forces); 2) Globalization (from local to global); 3) Growth through M&As (value creation, synergies); 4) Family-owned businesses (conflict of interest, strategic fit); 5) Marketing strategy (market trends, ethical role of marketeers).

At the age of 23, Luca Garavoglia became chairman of the Campari Group following the sudden death of his father two years earlier in 1992. From the start, Luca adopted a strategy of fast growth through acquisitions and over the next 24 years, Campari acquired 26 other companies, spending a total of over €3 billion and establishing its own distribution network in 20 countries. This two-part case series describes how Campari transformed from a single-brand local Italian company to an important player in the global spirits industry with over 50 premium brands distributed in over 190 countries around the world. CASE B starts with the announcement of a friendly tender offer by Campari for Grand Marnier in March 2016. This was the largest acquisition in the 156 years of Campari's existence and also one of its most complex ones. It took Campari over 18 months to arrive at this point and it had to wait another month to find out how this offer would be received by the shareholders of Grand Marnier and Campari. Calculating the offer price was Campari's biggest challenge. With no business plan, and no equity research financial forecasts available, it had to make its own projections based on its business knowledge of the spirits industry.

Two years after joining the LEGO Group as their Logistics Manager for Europe and Asia, Egil Møller Nielsen finds himself fighting several battles at different fronts; the most difficult one on his home turf against his own management team. He is half-way implementing a bold plan: close down all existing local and regional logistics operations and consolidate all logistics and distribution activities from a central location in the Czech Republic, managed by an external partner - DHL. Outsourcing logistics services on a scale like this - in East-Europe - had never been done before by any other European company. The stakes are high as LEGO, struggling for survival, is also trying to re-invent itself. Should Nielsen push through his plan - in which he firmly believes - or give in to the mounting pressure from home and relax his efforts? Learning objectives: We observe two new partners, both active on new, unexplored territory in the early stages of their partnership. The relationship is strained; both companies are under tremendous pressure from their corporate headquarters to show results while there is a general distrust in each others capacity and motivation. In this first case we learn that building a relationship that is based only on a contractual agreement can be a painful experience. Cost accounting in general and cost drivers in specific are mentioned to illustrate their importance in key decision making.