Coping with the complexity of today's business environment is not about predicting the future or reducing risk. It's about building the capacity, in yourself, your people, and the organization to adapt continuously and learn speedily, in order to maximize the chances of seizing fleeting opportunities. These authors' excellent suggestions will help today's leaders cope with complexity.
The president of Pathway Communications Inc. (Pathway), a regional Internet service provider (ISP), had to decide the best course of action to transform Pathway into a national information technology firm that offered end-to-end technology support for a variety of consumer and business needs. At the same time, a regional telecommunications firm wanted to buy Pathway. He wondered if he should pursue this offer or one of the following options: franchise his concept and replicate the Pathway business model; execute a national roll-up by buying several smaller ISPs and then completing an initial public offering; or, combine his business with a larger ISP or other telecommunications firm. This comprehensive strategy case provides students with the opportunity to explore the issues of growth in a young, high-technology firm and to discuss the significant financial implications of the different alternatives.
The administrative assistant at the Edmonton, Alberta branch of Vandelay Securities was faced with a dilemma. Her superior had requested a purchase of shares in a firm whose securities were restricted to residents of Alberta for one of her clients who resided in British Columbia. On the purchase request form, the client's province of residence was listed as Alberta, and a post office box address was given. This transaction was the latest in a series that made her feel uncomfortable.
The newly appointed branch manager at a branch of PEB Securities was worried. He had just finished speaking to a sales assistant regarding a series of transactions made by him over the last few months. Earlier in the day, the branch manager had received a call from a client's lawyer regarding the mishandling of her account by the firm. As he sat down to review the file again, he wondered which of the transactions, if any, exposed the firm to legal liability and what his next course of action should be. The main pedagogical objectives of this case are to explore liability issues. Several transactions are presented; in each case, students must examine the legal as well as ethical issues and determine to what extent the individual or firm can be held liable.
A buyer for Prism Canada, Inc. wondered how to outsource the company's inefficient sheet metal operation. To satisfy current and potential customers' requests to lower costs for up-coming contract bids, Donna had to decide quickly to whom to outsource and what criteria to use for choosing a supplier. The primary teaching objective is to take students through the supplier selection process, framed in an outsourcing context. Selection criteria, such as price, quality, and reputation and their relative importance will be examined. Other objectives include exploring the issues of implementing an outsourcing decision, keeping in mind employee concerns and union reactions, as well as impact on production operations. The case can be used at the beginning of a principals of buying course as an introduction to source selection.
Owners of the Inn at the Falls are deciding whether to expand their operation. After nine years of growth, 1996 sales had levelled off, and the owners were considering a building expansion to resume growth. Although the expansion would add significantly to the debt load, it would reposition the Inn's facilities for a more upscale clientele. In addition, the owners would like to retire in two to five years by selling the business and are wondering if they will be able to recoup their investment in this time period.