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  • Compaq High Performance Computing (A)

    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.
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  • Terralumen S.A.: The Blue Ridge Decision

    Terralumen is a family-owned agricultural company that has expanded into consumer products. A senior executive with the company has helped build a successful joint venture over a period of 16 years with Delta, an American fast food chain. After a directors meeting, he senses that the American joint venture partners want to end the partnership, but he is unsure why. The joint venture has been profitable, and he also believes his company contributed the most to its success and that prior to the joint venture Delta had limited success in foreign markets. With the break up of the joint venture pending, he must determine how to extract the largest return on Terralumen's investment.
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  • Blue Ridge Spain

    Blue Ridge Spain was a joint venture established between a well-known American fast food chain and an old guard family-run agricultural company that was seeking to diversify in the wake of Spain's entry into the European Union. The European Regional director of the company has been dealt an unexpected professional blow. After several years of fostering a successful joint venture, the regional director is stunned to find out that the new owners of Blue Ridge want out of the arrangement. In spite of the fact that this particular joint venture has been profitable since its inception and the company has experienced brisk growth during that time, the new owners are determined to end the partnership. The regional director is left examining how he is to respond to a request that he feels is not only detrimental to his company, but also contrary to his principles. He questions the ethics of secretly undermining the joint venture in order to achieve the upper hand in buyout negotiations. As a Greek, the importance of personal relationships and social contracts only adds to his dilemma.
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