The Relax case traces the history of a massage services company from its founding in 2007 to mid-2017, when it is considering the best strategy for growth and an acquisition. The company's owner and top managers wonder how the firm should reorganize to cope with the challenges posed by the company's transformation from a small, independent operation to a professionally managed enterprise. This case illustrates the challenges of preparing for rapid growth. It covers issues of internal management and organization, as well as brand management decisions. Relax can be used in an entrepreneurial management or small business course. Because of the emphasis the company places on its brand, it may also be applicable for some marketing or brand management classes.
Brodie Arens is an MBA student and summer intern at Three Jays Corporation, a jam and jelly manufacturer in Michigan. Brodie's first assignment as an intern is to update the inventory and production planning system. Initially, he begins by updating the Economic Order Quantities (EOQ) and Reorder Points (ROP) for each product. However, he soon learns that the formal production planning system was being ignored by the workers on the factory floor. Consequently, Brodie has to decide what should be done with the system and how to implement his recommendations. This case illustrates the 2 major types of errors that can occur when using Economic Order Quantity (EOQ) as a tool in production scheduling. It can be used in an inventory control or tradeoff analysis section in a production and operations management course or in a supply chain management course.
Provides background information for a negotiations exercise in which students will represent either Keurig, a startup that has developed an innovative "portion pack" coffee brewing solution, or Green Mountain Coffee Roasters (GMCR), a fast-growing premium coffee roaster interested in licensing Keurig's technology. The negotiation will determine the royalty to be paid to Keurig by GMCR, who will bear capital expenditures, and whether GMCR secures exclusive distribution rights to Keurig's system.
In spring 2009, Chrysler entered a prepackaged bankruptcy and exited 40 days later in a deal with Fiat, the U.S. Treasury, and the UAW that kept the automaker alive. Looking forward, what was necessary for Chrysler to move beyond the life support it had received? What was possible? Looking back, how should the company's restructuring be assessed?
Jody Leleck has been appointed the principal of Broad Acres Middle School in Montgomery County, Maryland. The school is underperforming all other schools in the district, and she has been asked to improve the performance.
PRG-Schultz will run out of cash within a couple of months unless the new CEO can reduce costs and restructure the company's debt. PRG was the dominant market leader in the audit recovery industry. The industry consisted of firms which employed accounting professionals to audit purchasing transactions to discover and collect funds owed to their clients. PRG had historically been profitable, and clients were satisfied with their service. In recent years, however, the industry overall and PRG's sales, had been in decline. This left PRG with a cost base that was no longer sustainable. The CEO must decide where to cut costs and how to convince creditors to give the company the time it needs to turn around. A bankruptcy reorganization is one option open to the company. Describes the audit recovery industry, the company's history, the CEO, the financial problems the company faced, and the first steps taken by the CEO to save the company.
Three young MBAs create a partnership to acquire the assets of Parmalat in Uruguay. Focuses on their analysis prior to submitting a bid and their plan for improving the operations once their bid is accepted. In addition to improving operations, they must negotiate with creditors to reduce the debt burden on the company.
XTech, a leading manufacturer of metal parts for the telecommunications industry, is being pushed by its large equipment vendor customers to establish a manufacturing operation in China. CEO Reinhold Hesse is debating several options: establishing a joint venture, contracting with a local partner, or setting up a wholly owned enterprise. Hesse must prepare his recommendation to the management team, which includes owners Jim and Debby Sharpe.
Hexcel's new CEO is faced with deciding how to "take out" $60 million in cash costs in fiscal 2002, as two of the company's end markets--electronics and commercial aerospace--are expected to decline precipitously. Options include closing plants, exiting a business, or undertaking a major headcount reduction. Includes a description of Hexcel's private equity relationship with Goldman Sach's Capital Partners and presents the financial challenges of renegotiating bank lending covenants and managing maturing debt. Focuses on selecting a turnaround approach from the point of view of a general manager (the CEO).
This case describes the experiences of an HBS student as he takes on the challege of transitioning from an intern to a president at a small consumer packaged goods firm in Southern Texas. This HBS student is confronted with the opportunity to perform an operational and financial turnaround at the company within one year. Over his short tenure, he is forced to deal with several critical immediate issues that include product line shutdowns, immediate measurement systems, and executive team building.