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Alibaba.com
This case focuses on the strategic issues of an emerging dot-com in a rapidly emerging Internet nation-China. Alibaba, a bulletin board company based in Hangzhou, China, is trying to carve out a niche in the B-to-B e-commerce world. It also shows the speed and complexity of strategy evolution and the fascinating set of problems that a player in this new space must confront. Whether the company will ultimately survive or not is very much a question. The issues are surprisingly similar to those which confront companies in Western Europe and the United States. -
Whirlpool Corporation's Global Strategy
This case deals with Whirlpool Corporation (Whirlpool) and its global expansion, which was driven by Whirlpool's objective of becoming the world market leader in home appliances. Beginning with the purchase of a majority stake in an appliance company owned by Philips, the Dutch electronics firm, Whirlpool purchased a majority stake in an Indian firm, established four joint ventures in China, and made new investments in Latin America. By the mid-1990s, serious problems had emerged in Whirlpool's international operations. In 1995, Whirlpool's European profit fell by 50% and in 1996, the company reported a $13 million loss in Europe. In Asia, the situation was even worse. Although the region accounted for only 6% of corporate sales, Whirlpool lost $70 million in Asia in 1996 and $62 million in 1997. In Brazil, Whirlpool found itself a victim in 1997, and again in 1998, of spiraling interest rates. -
Hewlett-Packard's Home Products Division in Europe--1996-2000
By November 2000, Hewlett-Packard's Home Products Division (HPD) had been selling its Pavilion line of personal computers in Europe for almost five years. During that time, HPD had entered and exited Germany, struggled in France and the United Kingdom, and significantly reorganized its European operations twice. Some at HP felt that the European operation had become what HP should be. Others wondered why it had been so hard and whether the model of "operational excellence" adopted by HPD to compete in Europe was adequate for a very fast-changing market. -
Resinas Sinteticas, S.A. (A)
A recent MBA graduate heads international marketing for his family's Mexico-based rosin supply business, he must decide how to respond to the aggressive tactics of his much larger American competitor. Among other things, the U.S. competitor is spreading false rumors among the Mexican company's European customers. This case provides background on Mexican culture and society as seen by the case protagonist. -
Xyberspace Consulting, Inc.
Xyberspace Consulting, Inc., is reconsidering the allocation of the costs associated with its Training and Educational Services Group (TESG), a shared-services or support department to its user departments. Currently, the company uses a single departmental rate to allocate actual training costs to the user groups, using the user groups' actual usage of TESG resources. The company is exploring whether it should allocate TESG fixed and variable costs separately, whether it should use budgeted or actual allocation rates, and whether it should allocate costs based on budgeted or actual usage. This case is intended to give students exposure to allocating shared-services or support-department costs, understanding the implications of different allocation strategies, and evaluating whether and how allocation systems can facilitate strategy implementation. -
National Hockey League Enterprises Canada: A Retail Proposal
The vice-president of National Hockey League Enterprises Canada is faced with an opportunity to pursue the development of a retail outlet dedicated to Brand NHL merchandise. He must decide among three implementation options: retain control of the facility, relinquish control to a management firm or retain operational control. This case is suitable for an introductory business course and may be taught over two one-hour classes. -
Ventro: Builder of B2B Businesses
Enables a thorough analysis of Ventro (formerly known as Chemdex), which builds and operates multiple B2B marketplace companies. Examines Ventro's business model and strategy as well as the company's operating, technical, and management expertise. Part of the Building-E-Business Online series. -
PacificLink iMedia: Designing an Internet Business
PacificLink iMedia was a Hong Kong based Internet marketing company that specialized in Web design using Flash technology. The company had grown six-fold since its inception 18 months ago. The directors of the company anticipated that the company would double in size in the next six months, and they were considering moving into three new markets, as well as into new business areas. The concepts of competitive advantage in the Internet industry, and the structure of this industry are introduced from the perspective of a company that provides business services. See also the second and third cases in the three-part series, 9B09M023 and 9B16M202. -
Reuters Greenhouse Fund
Reuters Greenhouse Fund had successfully invested in a portfolio of 79 companies working in areas relevant to Reuters Group's strategic interests. It had itself facilitated a powerful network among the companies and, become a respected global venture capital firm. Funding requirements for 2001 had grown beyond Reuters Group's expectations, and CEOs John Taysom and David Lockwood must decide on the best funding strategy. -
Intellectual Asset Valuation, Spreadsheet
Abstract to follow. -
Creative Benchmarking
Many companies know they should benchmark their business practices against those of companies outside their own industry. But how to begin? Here's a practical guide. -
Integration Managers: Special Leaders for Special Times
Although the integration of an acquired company with the parent organization is a delicate and complicated process, traditionally no one has ever been responsible for that process--for charting how the two companies will combine their operations, for seeing to it that the integration project meets its deadlines and performance targets, and for educating the new people about the parent company and vice versa. Some enlightened companies have recognized this gap and have appointed a guide--the integration manager--to shepherd everyone through the rocky territory that two organizations must cross before they can function effectively together. The authors have interviewed a number of these leaders in depth, as well as some of the people with whom they've worked. They've determined that integration managers help the merger process in four principal ways: they speed it up, create a structure for it, forge social connections between the two organizations, and help engineer short-term successes. In this article, the authors detail five acquisitions--at TI, General Cable, Meritor Automotive, Lucent, and Johnson & Johnson--and discuss the role that integration managers played in each. -
Tough Work of Turning Around a Team
Bill Parcells, one of the NFL's winningest coaches, offers business leaders three rules for reversing the fortunes of a losing team. He contends that the keys to motivating people are much the same whether they're playing on a football field or working in an office. The first rule is to make it clear from day one that you're in charge. Parcells has found that holding frank one-on-one conversations with every member of the organization is essential to success. Rule two is that confrontation is healthy. Parcells relishes confrontation because it provides an opportunity to get things straight with people. Parcells's third rule is to identify small goals and hit them. He believes that success breeds success. In the end, Parcells is convinced that if you get people on your team who share the same goals and the same passion, and if you push them to achieve at the highest level, you're going to come out on top. -
Canadian Closures (A)
Canadian Closures was a joint venture (JV) between the Australian firm, Melbourne Closures (Melbourne), and Macklin Breweries (Macklin) which was based in Canada. The JV manufactured beer bottle caps based on Melbourne's technology; its only customer was Macklin's 10 breweries. Continuing product quality and performance problems resulted in the general manager being replaced. The new general manager was faced with the challenge of resolving these issues and balancing what was best for the parent companies in the short-term and what was best for the JV in the long-term. Macklin wanted reimbursement for faulty caps, which would have a significant impact on the profit objectives that both parent companies expected the JV to meet. The general manager had to find a solution that would satisfy both parent companies while minimizing negative impacts on the JV's results. The supplemental case, Canadian Closures (B), product 9B00M020, presents what happened and addresses another challenge later in the JV's life cycle. -
New Paragon
The owner of a successful restaurant was approached by his landlord to re-open a restaurant he used to have, the Paragon, under extremely attractive lease terms. He had been considering suggestions from his head waiter that the two of them open a restaurant together, but had not heard of any appealing options until this recent offer. While he knew this was a good offer, he wanted to lay out a precise business plan and thoroughly assess the potential costs of reopening and running the Paragon before making any commitments. Moreover, he strongly questioned whether the income from a second restaurant would be enough to outweigh the stress and risk related to getting involved with an inexperienced partner. -
The New Paragon
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Editora Abril S.A.
Brazil's media conglomerate Editora Abril S.A. is Latin America's largest publishing and printing company; it publishes books, and comic books, videos, maps, travel guides, music, and textbooks. It also owns Brazil's largest database marketing company, its second-largest pay television service, and its first broadband Internet access service; an interactive music Website; and stakes in the coutry's largest Internet access provider and its MTV license. Roberto Civita, Abril's 64-year-old chairman, CEO, and sole owner needs to decide how to grow the enterprise that his father founded. He and his two sons have several options: continue to grow their core magazine business in Brazil, expand regionally, invest in new venues such as broadcasting, take the company public, and/or manage the succession. This case describes Abril's development to date and the challenges it faces in 2000. -
Avon Products (A)
The general manager of Avon Mexico, Fernando Lezama, must decide whether to promote a woman to the position of vice president of sales. If appointed, the candidate would be the first female in all of Latin America to hold an executive position and one of the first women in Mexico to attain this level of responsibility. Lezama's all-male executive team has doubts about the candidate's readiness, but Lezama is also cognizant of Avon's global vision which calls for the advancement of women at all levels of the organization. Earlier in the year, the Avon Mexico organization had completed an exercise called "appreciative inquiry" aimed at enhancing gender relations in the workforce. -
Avon Products (B)
Presents the results of the decision taken in the (A) case. Describes the subsequent challenges faced by Avon Products in promulgating its globalization worldwide. -
Workbrain Corporation
Workbrain Corporation was a young firm that offered Web-based time and attendance management systems solutions to companies with a blue-collar workforce. The company was the only player in a market niche that it created, offering proprietary systems that relied on technological excellence and alliances with third party vendors. Currently, it was developing a product at the same time as it was preparing a Request for Proposal for a large potential client. Workbrain Corporation didn't have the human resources, organizational infrastructure or external alliances they needed to present the product they envisioned or grow the company into what the chief executive officer envisioned. The newly-hired vice-president of corporate development was responsible for the strategic growth of the firm both internally and externally. He was faced with the task of organizing and re-orienting the company, and needed to develop a plan to grow the company into a market-oriented organization from the project/product-oriented one it was.