This case describes corporate management's recent discovery of widespread unethical pricing transactions in one division and key managers' different views on how to respond. Students are asked to evaluate management's position and decide who should do what to resolve Rein Chemical Co.'s problem. The improper pricing problem, involving an undetermined large number of customers, is complicated by the lack of clarity as to who the injured parties were and by the harm that any course of action could have on innocent parties.
SUPERVALU examines the creation and implementation of a training program for attracting and retaining college graduates for the nation's largest wholesale food distribution company. It addresses: 1) program design and 2) the management of the design effort and program implementation. The case is appropriate for courses in organizational behavior, human resources management, and general management.
This case depicts the supply-management practices--including planning, production, and distribution--at Pioneer Hi-Bred International, the world's leader in the genetically engineered hybrid crop-seed industry. Set in the context of a supply-management planning meeting, it reveals conflicting considerations in setting policies for production (what, how much, and where to plant) and distribution. Since the issues are viewed from three independent perspectives--planning, production, and distribution--the case lends itself to role playing.
When GE's retiring Reginald Jones turned the job of CEO over to Jack Welch on April 1, 1981, the Wall Street Journal reported that GE had "decided to replace a legend with a live wire." Some wondered if the young dynamo could fill the elder statesman's very large shoes. But Welch had a very powerful and well-articulated vision of where he wanted his company to go. By 1984, he had regrouped GE's sectors, redefined its core businesses, made massive investment and disinvestment decisions, changed the company's approach to planning, and drastically cut personnel. Despite a major recession in the world economy and flat sales, profits rose from $1.5 billion in 1980 to $2.3 billion in 1984. This case chronicles the evolution of GE through the 1970s and early 1980s, focusing particularly on the changes wrought by Reg Jones and the way in which Jack Welch took that heritage and reshaped it to fit the demands of a new decade.
The sales manager and controller have to decide on a price for a textile that lost significant market share as a result of a recent price increase. Information on manufacturing costs and on the pricing behavior of Beauregard and its only competitor are available for analysis. The case provides an opportunity to practice contribution analysis, considering fixed and variable costs as reported in a typical cost report. Also tests the students' ability to recognize the need to consider the situation from the competitor's point of view. Finally, it poses a prisoner's dilemma for the two firms where each would prefer a set of prices unfavorable to the other so that prices are likely either to be unstable or to be stable at a suboptimal level for both parties. The class can close with students attempting to devise a pricing strategy that would reach the optimal level.
A department general manager has to decide whether or not to add a lightweight compressor to the line, what price to charge, and what volume to produce. The analysis requires maximizing contribution in a situation where one factor is constrained. As such, it takes into account opportunity costs and shadow prices as well as fixed and variable costs, demand curve analysis, and sunk costs. Also invites discussion about the proper measurement, offering departmental profits and return on sales as candidates.
Describes the process of decision making (establish objectives, generate alternatives, and so on) emphasizing the human side of it (using rules of thumb, favoring one's own pet projects) yet demonstrating the role an analytic/quantitative contribution has to make.
Describes the challenges facing the president of an old-line foodservice and food processing equipment manufacturing company as it attempted to accelerate sales and profit growth through the introduction of innovative products. The introduction of a "revolutionary" combination oven, ongoing labor confrontation at the headquarter's plant, and a series of acquisitions were among the issues occupying Louise O'Sullivan as she prepared to enter her third year as the senior executive of Groen. The policies and practices of Dover Industries, designed to motivate operating company presidents "to think like owners," are also described because of their relevance to her behavior and performance in that job.
Discusses how Philips, a major Dutch-based multinational company, attempts to bring about a fundamental change in its strategy, organization, and culture in response to a rapidly changing market and competitive environment.
Describes the first four years of Jack Welch's tenure as CEO of the General Electric Co. Deals with the ways Welch has tried to change GE's strategy and planning activities and his attempts to make the company more entrepreneurial.
Cray Research faces several management problems as a result of rapid growth and the need for continued growth. Issues to be discussed include 1) whether Cray should be a marketing or a technology company; 2) new and powerful competition; 3) products to offer as Cray moves out of its initial market segment; 4) growing pains (i.e., corporate culture, communications, etc.) and 5) is there "life after Seymour Cray" for Cray Research?
The main issue has to do with the lack of fit or incompatibility between the early environmental requirements for strategy and the cultural constraints on the organization. Describes the internal resistance to the proposed changes and top management's efforts to resolve the contradictory requirements of strategy and culture. A second major issue concerns the challenge facing a general manager who has been given responsibility for operationalizing the forced solution.
Describes the Johnson & Johnson culture and the corporate systems, structures, and procedures which reflect and promote it. The principal teaching objectives are to gain an understanding of the impact a strong culture can have on strategic decisions and to consider how such cultures might be managed.
Describes the introduction and evolution of General Electric's strategic planning system from the 1960s to Jack Welch's tenure. Allows discussion of the interplay of problems and circumstances to the evolution of the strategic planning system, and how Welch might use or alter the system to meet the challenge of growth.
Describes an elaborate approach to strategic planning for diversified business operations. Includes the use of the BCG experience curve and growth share matrices and of PIMS profit-factor data. (Both sets of ideas are described in appendices to the case.) Also describes a specific strategic problem concerning the coated abrasives business requiring a management decision. Permits students to describe what action Norton should take with respect to its coated abrasives business and also to evaluate the Norton strategic planning system.
Company must decide whether to raise prices and tighten consumer credit in light of its strategy to rationalize production, introduce a new line of model elevators and increase its market share. Points up the interrelationships of the different functional areas within a corporate strategy and to some extent the time frame associated with strategic change.