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Lucent Technologies' successful New Ventures Group must present company executives with a strong case for continuing corporate venturing activities despite a troubled financial performance in difficult market conditions.

Chronicles the launch of a Total Quality Management (TQM) program in Gillette Argentina. The case protagonist credits the initiative with a 40% benefit in business while recognizing that its success was heavily dependent on the effects of teamwork and customer focus. Now he is faced with how to increase market share elsewhere on the continent and preserve it in Argentina. The only real question now is how to expand the same TQM programs elsewhere. To use in undergraduate, graduate, and executive programs on human resources management, team dynamics and design, and implementation of quality programs.

John Esler, founder and CEO of Patio Rooms of America, founded this new venture a few months after graduating from Babson's one-year MBA program. Before studying for his MBA, Esler had substantial entrepreneurial experience that included founding and building a chain of Subway sandwich stores. He sold his chain of stores before entering the MBA program and used the proceeds to finance his studies and to underwrite the startup of his new venture. Six months into the new venture, John is experiencing a host of problems: the company's sales orders are outstripping the rate at which crews can construct patio rooms; his operating cash flow deficit is growing; he has to resolve serious disagreements with his licensor, who is also his exclusive supplier of material; and he has control and human resource issues that urgently need attention.

In mid-1999, negotiators for Walt Disney Co. and the Hong Kong government were having intensive discussions about the possibility of building a theme park known as Hong Kong Disneyland on Lantau. The case presents detailed information about the proposed theme park and the assumptions made by Walt Disney in conducting an economic assessment of the project. Also lays out other alternatives for Disney's entry into the China market.

In mid-1999, negotiators for the Hong Kong government and the Walt Disney Co. were having intensive discussions about the possibility of building a theme park known as Hong Kong Disneyland on Lantau. This case presents detailed information about the proposed theme park and the assumptions used by the Hong Kong government in conducting an economic assessment of the project. Also lays out other alternatives for reinvigorating the tourism industry in Hong Kong and the development of Penny's Bay (the proposed site of Hong Kong Disneyland) in Lantau.

Structured as a bilateral negotiation exercise allow students to participate in a joint venture simulation for the Disneyland project in Hong Kong. Should be used in conjunction with Hong Kong Disneyland (A): The Walt Disney Perspective and Hong Kong Disneyland (B): The HKSAR Perspective. Students are assigned to a negotiation team representing one of two groups (either the Hong Kong government or Walt Disney Co.). They are then required to study the case assigned to their side of the negotiation. The students' task in this negotiation is to represent their groups effectively and to achieve the best outcome for the government or Walt Disney.

A/S, a Danish company specializing in underwater acoustics and ultrasonics, needs to rethink how it manages new product development. Reson's R&D is working with proprietary basic technologies with development times up to three years. To realize the company's global growth potential, Reson's management must expand its customer base, rethink how to apply proprietary technologies in innovative ways, and bring new customer-specific solutions fast to market. The focus for project management is time, i.e., meeting project deadlines. This sets completely new requirements for project planning and company cooperation.

Traces the development of the Nespresso System in a 100%-owned affiliate deliberately placed outside Nestle's main organizational structure. Highlights the team's successes and challenges in creating a new, small, niche segment in the mature coffee market and its prospects for growing the business from 150 million to 1 billion Swiss francs within the next decade. A radical departure from most Nestle lines of businesses targeted to the mass market, the Nespresso story offers provocative lessons about innovation in large, highly structured organizations.

The promise of synergy is the prime rationale for the existence of the multibusiness corporation. Yet for most corporations, the "1-plus-1-equals-3" arithmetic of cross-business synergies doesn't add up. Companies that do achieve synergistic success use a corporate strategic process called coevolving; they routinely change the web of collaborative links among businesses to exploit fresh opportunities for synergies and drop deteriorating ones. The term coevolution originated in biology. It refers to the way two or more ecologically interdependent species become intertwined over time. As these species adapt to their environment, they also adapt to one another. Today's multibusiness companies need to take their cue from biology to survive: They should assume that links among businesses are temporary and that the number of connections--not just their content--matters. Rather than plan collaborative strategy from the top, as traditional companies do, corporate executives in coevolving companies should simply set the context and then let collaboration (and competition) emerge from business units. Incentives, too, are different than they are in traditional companies. Coevolving companies reward business units for individual performance, not for collaboration. So collaboration occurs only when two business-unit managers both believe that a link makes sense for their respective businesses, not because collaboration per se is useful. Managers in coevolving companies also need to recognize the importance of business systems that support the process: frequent data-focused meetings among business-unit leaders, external metrics to gauge individual business performance, and incentives that favor self-interest.

Major business trends such as deregulation, globalization, technological convergence, and the rapid evolution of the Internet have transformed the roles that companies play in their dealings with other companies. Business practitioners and scholars talk about alliances, networks, and collaboration among companies. But managers and researchers have largely ignored the agent that is most dramatically transforming the industrial system as we know it: the consumer. In a market in which technology-enabled consumers can now engage themselves in an active dialogue with manufacturers--a dialogue that customers can control--companies have to recognize that the customer is becoming a partner in creating value. In this article, authors C.K. Prahalad and Venkatram Ramaswamy demonstrate how the shifting role of the consumer affects the notion of a company's core competencies. Where previously, businesses learned to draw on the competencies and resources of their business partners and suppliers to compete effectively, they must now include consumers as part of the extended enterprise, the authors say. Harnessing those customer competencies won't be easy. At a minimum, managers must come to grips with four fundamental realities in co-opting customer competence: they have to engage their customers in an active, explicit, and ongoing dialogue; mobilize communities of customers; manage customer diversity; and engage customers in cocreating personalized experiences. Companies will also need to revise some of the traditional mechanisms of the marketplace--pricing and billing systems, for instance--to account for their customers' new role.

Intellectual property? Five years ago, that phrase wasn't even in the vocabularies of many CEOs, let alone a part of their business strategies. Indeed, many chief executives still regard patents, trademarks, copyrights, and other forms of intellectual property as legal matters best left to the corporate attorneys. But the burgeoning knowledge economy has given rise to a new type of CEO and a new type of business competition--one in which intellectual assets, not physical ones, have become the principal sources of shareholder wealth and competitive advantage. And therein lies one of the next great corporate challenges: figuring out how to unlock the hidden power of patents. In this article, authors Kevin Rivette and David Kline describe how the strategic management and use of patents can enhance a company's commercial success in three broad ways: by establishing a proprietary market advantage, by improving financial performance, and by enhancing overall competitiveness. They present real-world examples of effective and ineffective patent management strategies--for example, comparing Dell's aggressive patenting of its direct-sales business model with Wal-Mart's looser protection of its unique business systems. They describe common but effective patenting techniques such as clustering and bracketing, both designed to block out or hamper competitors in the market. For both traditional and new-economy businesses, such as Amazon.com and Priceline.com, leveraging patents properly can produce benefits such as reduced corporate risk, the ability to anticipate and react to market shifts, and, ultimately, increased shareholder value and profits.

Presents a theory about the tools a manager can use to get people to agree on a coordinated course of action and effect change in his or her organization. The extent to which people in the organization agree on the way the world works, and agree on what they want, determines which tools will be most effective.

In April 1998, when the Chinese central government bans all forms of direct selling in China in April 1998, executives at Avon China must decide how to respond. The first direct sales company to enter China after its opening to outsiders, Avon sparked widespread interest in direct selling among the Chinese. Just as Avon is about to complete a new $40 million plant in Guangzhou, however, the government cracks down on local abuses of direct selling by banning all forms of the practice. Avon must decide whether to abandon its traditional business model in the face of these developments.

Supplements the (A) case.

Covers the history of Hermes, a large telecommunications and network equipment company, as it grows from a single business firm to a diversified firm from 1980-95. Examines the use of entrepreneurial subsidiaries for product development and fast growth. Other issues include the challenges of managing ambidextrous organizations and the problems a CEO faces in keeping control of fast growing divisions. A rewritten version of an earlier case.

Supplements the (A) case.

Presents the perspectives of two Russian software developers working for Cimetrics in Moscow. A central issue from the Russian perspective is whether a more structured and formal arrangement is needed for managing the Russian team.

The case describes an international agreement to phase out child labor in soccer-ball manufacturing. This high-profile agreement, which resolves major brand manufacturers, has been hailed as an example of socially responsible corporate policy.

The CEO of the Sandvik Group is reviewing the initiatives he implemented to increase the synergies between the six disparate businesses of the Sandvik Group. Specific measures taken by Sandvik's management to increase the level of synergy between the businesses are outlined. In search for synergy, management has experienced many problems and challenges. The main challenge is how to avoid a re-centralization of power while at the same time encouraging employees to act with regard to both their business and the group. The case closes with the CEO wondering how further changes could be made to expand and sustain the search and exploitation of synergies within the Sandvik group. This case can be used as an advanced corporate strategy case, to illustrate concepts such as diversification, synergies, and parenting advantage. It can also be used as a management of change case by putting emphasis on the actions the CEO can take to achieve his stated goals. A follow-up case (9A98M013) is available.

Examines John Sculley's management approach toward transforming Apple Computer during the personal computer industry crisis in 1992. Focuses on Sculley's management style, his creation of a new management team, and his efforts to create a professional management system inside Apple.