個案總覽

This case deals with H&R, a company that distributes sewing equipment in Toronto, Ontario, Canada. Its future is in jeopardy because of fundamental changes in the global sewing industries stemming from changes in trade restrictions. The consequence is that Canadian sewing activities are in decline as activities in low-cost foreign countries grow rapidly. As Canadian activities decline, H&R's performance has been suffering. But the management of the family-owned company has had trouble seeing the challenge it faces because it has been highly successful for two generations. The case asks what the new CEO and third generation owner should do to save the company.

The general manager of ABS Global-Canada, was given the task of turning around the Canadian division after several years of declining sales in its principal product, bovine semen used to artificially inseminate cows. On taking charge, he made organizational changes, and then introduced a marketing approach that was successful in the United States. In May 2003, a dairy cow in northern Alberta was discovered with Bovine Spongiform Encephalopathy (BSE). In the next several months sales of beef and dairy bull semen dropped to 50 and 30 per cent respectively. He now had to decide whether he should maintain the priorities of his turnaround program.

Plant Nutrients is a medium-sized retailer of crop supplies. The general manager is preparing a proposed operating statement to send to the parent company. This statement must reflect an increase in volume of two per cent while maintaining the required 13 per cent on investment in business. He is considering a number of ways of improving performance: getting better utilization of fertilizer blending capacity, adding a new line of seed and adding precision agriculture services. Another option is to alter pricing.