Describes Jan Carlzon's actions on assuming the CEO's responsibility at SAS in a time of financial and organizational difficulty. After tracing Carlzon's development as a manager, it focuses on the way in which he developed, then communicated a clear and motivating strategic mission to become "the world's best businessman's airline." After a spectacular turnaround, organizational problems re-emerge, and the case concludes with Carlzon wondering if his "second wave" can provide the same impetus that he gained on his first wave. Highlights the power of a clear and well-communicated strategic mission (strategic intent), but also explores problems and limits that can arise. Specifically, focuses on the common problem of motivating middle managers who often feel disenfranchised by front line empowerment.
Summarizes Carlzon's new focus externally on building alliances and acquiring travel service companies. Describes the financial problems resulting from the recession and the Gulf War crisis. Designed as an in-class handout to highlight the long-term management commitment required to realign and inspire an organization to a new strategic mission. Allows a more balanced appraisal of Carlzon's leadership abilities and limitations.
Describes the start-up and rapid growth of a company whose founder holds strong, non-traditional beliefs about the role of the corporation and its responsibility to society. After profiling Anita Roddick as a person, the case describes the anti-mainstream approach she took to building her highly successful business (no advertising, simple packaging, non-traditional R&D). After elaborating on the strong values she has imposed on the business, concludes by highlighting questions of the business' transferability to the United States and its survivability as Anita steps back.
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.
After a decade of mediocre performance, the Norton Co. enters 1990 with the prospect of increased sales in the next few years. Yet Norton is pursuing slow growth industries, and a lower than expected earnings announcement at the beginning of 1990 has depressed earnings forecasts by brokerage firms. BTR, a large highly successful British conglomerate, is considering making a takeover offer of Norton but is troubled by a number of issues. This case takes a behind-the-scenes look at how a company like BTR would value a potential takeover target and analyze how the acquisition would impact BTR's operations and performance, and how it might stave off competing bids if it were to make an offer.
By the mid 1980's Jack Welch had completely transformed General Electric with more than 300 divestitures and acquisitions since the beginning of the decade. Welch insisted that his business units be number one or number two in their markets, and have the strength of large companies and the leanness and agility of small ones. Yet, although Welch had succeeded restructuring GE the way he wanted, employee morale was low. The case focuses on Welch raising employee productivity by continuing to remove layers of management and by allowing employees to have a greater voice in their own affairs.