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Conoco's "Green" Oil Strategy (A)
Conoco faces challenges in formulating a proactive environmental strategy for its proposed oil development in Ecuador's pristine tropical rain forest region. The case outlines the innovative process in which Conoco collaborated with a wide range of often conflicting constituency groups to define and implement its policies, along with Conoco's successes and failures in reaching constituency consensus. -
Asahi Breweries Ltd.
Focuses on competitive repositioning, organizational renewal, and personal leadership. Describes how Asahi Breweries was faced with a major capacity expansion decision after succeeding in increasing market share dramatically in the traditionally stable Japanese beer industry. This has been done through the creation of a new product category, "Dry Beer." Information on industry economics, Asahi's organizational process, and competitive interaction are provided as well as an in-depth description of top management's profile and management posture at Asahi. Designed to allow discussion on how to make a balanced decision incorporating such market strategy issues as product strategy, competitor retaliation, advertising policy, rebate policy, and distributor relations management, as well as such organizational elements as corporate goals, financial integrity, quality control, personnel policy, management philosophy, and leadership style. -
Airbus vs. Boeing (C): Steps Toward Dispute Resolution
Presents partial resolution of problem. Cites points still to be resolved in trade dispute between U.S. aircraft manufacturers and Airbus Industrie. To be used as a handout after discussion of the case. -
Airbus vs. Boeing (B): The Storm Intensifies
Discusses the growing competition faced by U.S. producers of civil aircraft due to the success and expanding product line of Airbus Industries. Designed to foster discussion of international trade policy as it affects producers in the industry and to encourage firm managers to consider competitive strategies, given their influence over trade policy negotiations. A rewritten version of an earlier case. -
Airbus vs. Boeing (A): Turbulent Skies
Presents the economic and political dimensions of competition in the commercial aircraft industry, as demonstrated by Airbus of Europe and Boeing of the United States. -
Note on Diversification as a Strategy
Presents a discussion of corporate diversification. Covers historical background, the concept of strategy for a diversified company, and concepts of value creation. -
Choosing Compatible Acquisitions
Formal guidelines help companies identify and screen acquisition candidates. Two examples illustrate how the process of developing acquisition guidelines differs in focus and content between related diversifications and unrelated diversifications. In both cases, acquisition guidelines relate closely to corporate strategy. The screening process also provides a critical analysis of differences of opinion and improves the consistency between corporate objectives and resources. The procedure's final step involves comparing the candidate's potential for value creation to the cost of the acquisition as well as to the company's other investment opportunities. -
Hudepohl Brewing Co.
Presents the problem of how an established regional brewer can survive the onslaught of national breweries, some of which are being cross-subsidized by diversified parent companies. Requires detailed analysis of what operations are profitable and unprofitable for Hudepohl, in addition to industry and competitive analysis. Hudepohl is a private company. -
Diversification via Acquisition: Creating Value
A company should acquire another business only when the skills and resources of the two businesses can produce an income, or reduction in the variability of income, greater than what can be realized from a portfolio investment in the two businesses. Seven common misconceptions illustrate fallacies about diversification through acquisition. Acquisition-minded companies may use a set of seven suggested methods to obtain returns greater than those obtainable from simple portfolio diversification. -
Tailor Incentive Compensation to Strategy
Performance compensation for policy-level executives is interdependent with company policy. Survey data show that most companies use cash bonuses and some additional compensation while few companies rely on stock options alone. The character of the bonus system is interrelated to the company's growth. The range of possible payoffs and the variability of bonuses increase, and bonuses become more directly related to performance as a company expands.