The case describes the challenges faced by Ford and other automobile manufacturers in an era of declining oil reserves and volatile fuel prices. The Ford diesel decision seems to reflect classic thinking constrained by mental models that were developed in a different world. Diesels constitute over 50 per cent of automobile sales in Europe, because fuel is extremely expensive there. If fuel gets extremely expensive in the United States, one would expect diesels to become more attractive. Yet Ford seems to be stuck in the old mental model that says Americans don't like diesels. Ford can't prove in a PowerPoint presentation that there is a big market for small diesels mostly because there are few small diesels available to U.S. consumers. But that traps them into a position where they will never lead the industry or innovate outside of current market and technology conditions.
By using standard components, Compaq's supercomputer line, known as the Alpha Server SC, attempted to avoid some of the risk associated with supercomputer development. However, more than five years after unveiling its first supercomputer, known as Turbozilla, Compaq's High Performance Technical Computing Group had yet to make a profit, despite rapidly growing demand. The bidding process for large government contracts typically resulted in discounts of up to 70 per cent, leaving little, if any, margin. More importantly, some Compaq managers had become anxious that HPTC systems had begun to consume significant company resources. Alpha servers that had previously been allocated to high margin commercial customers were increasingly being diverted to zero margin supercomputers. Highlighted is the stage by stage process of developing a new product development organization. In doing so, it demonstrates that an important capability and competitive advantage for effective knowledge transfer in global new product development is the ability to construct a network of relationships that are built over time, that lead to the creation of social capital, and that are strong and extensive enough to inhibit duplication by others. Supplement Compaq High Performance Computing (B), product 9B03M042 is available.
This note discusses the role of supercomputing in nuclear weapons research, from the first UNIVAC system installed in 1953 to the planned installation of a 100 TeraOPS system at Lawrence Livermore Laboratories in 2004. Topics include military and civilian uses for supercomputers, the evolution to parallel processing, the growing importance of open source software such as Linux, and emergent scientific uses, such as genetic sequencing and AIDS research. Traditionally, supercomputers were employed to simulate complex processes that occurred over a specific period of time. For example, a nuclear explosion had a beginning (detonation) and an end. More and more, however, applications began to shift toward analyzing immense databases that contained a seemingly endless number of variables. Despite significant advances in technology, the most powerful computers available still cannot reliably predict the weather for the next week in any significant detail.
Monsanto, one of the world's largest producers of commodity chemicals, had decided to focus its operations on the biotechnology and pharmaceutical industries. The first shipment of genetically modified soybeans arrived in Europe in November of 1996. Genetic engineering promised to reduce the use of pesticides and curtail world hunger. Therefore, Monsanto was dismayed at the powerful opposition that developed over the next few years. A series of food safety concerns, the foremost being mad cow disease, only added to consumer skepticism. The company must examine its strategy and the relationships with key stakeholders (including governments, farmers, industry groups, environmentalists, grocers and consumers). The (A) case provides background on Monsanto, their corporate strategies and the climate in which they introduced genetically modified products in the United States and Europe. The supplement Monsanto (B), product 9B02A008, focuses on the roles of government and other regulatory bodies in the acceptance of genetically modified products.
This supplement to Monsanto Europe (A), product 9B02A007 discusses the non-acceptance to genetically modified products showing up in the poor performance of Monsanto's agricultural division, affecting its successful divisions and the survival of the company. In order to win back its respectable standing in the marketplace, Monsanto must develop new strategies to educate consumers and influence political decision makers in order to gain greater acceptance of its products.