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Studds Nolan Joint Venture
Studds, the leading India-based manufacturer of bi-wheeler helmets, was at an impasse in joint venture negotiations with Nolan of Italy. The partially-implemented joint venture between the two companies appeared a perfect match. Studds had a considerable cost advantage in the production of helmets and Nolan had formidable marketing strengths. At issue is whether Studds should continue to pursue or terminate the final joint venture negotiations. This case should be used in an international business course to illustrate issues central to internationalization and problems inherent in partnering where the risks of the joint venture are substantial to both firms. -
R.R. Donnelley & Sons: The Digital Division
In June 1995, Barbara Schetter, VP and general manager of R.R. Donnelley's Digital Division, is struggling to gain acceptance from other groups and divisions at the printing giant. The Digital Division employs radically new technology--digital printing presses and transactions management systems--to deliver short-run, customized printing. But it is based on a completely different business model than Donnelley's traditional businesses and is finding it difficult to overcome informal resistance. -
IPC Corporation, Singapore
The CEO of a Singapore-based computer company, with successful operations in Europe and Asia, was contemplating whether to pursue growth opportunities in the United States. The company had to decide between developing its own subsidiary, acquiring a small mail-order company based in Austin, Texas, or not entering the U.S. market at this time. If the acquisition option was pursued, there were challenges regarding fixing an appropriate value for the company, as well as integrating the American subsidiary into its own global network. -
Samsung and the Theme Park Industry in Korea
The management of the Samsung Group has to decide whether to enter the Korean theme park industry. The case focuses on three main issues in the context of the entry decision:<ul><li>The underlying forces that shape industry structure, competitive interaction, and profits.</li><li>The impact of globalization on industry structure.</li><li>The relationship between a firm’s resources and its strategy.</li></ul>Porter’s Five Forces model is used to analyze the impact of the competitive forces on profitability. A 15-minute video, product # 7A96M006, can be purchased for this case. -
James Woolsey and the CIA: The Aldrich Ames Spy Case (Sequel)
When Washington attorney and longtime Capital Hill staff member James Woolsey became director of the Central Intelligence Agency in 1993, he inherited a bombshell that would soon become public. A joint CIA-FBI investigation had found that Aldrich Ames, a longtime Agency employee, had sold intelligence secrets to the Soviet Union. Ames had compromised the safety of Soviets, who had sought to help the US, in exchange for hundreds of thousands of dollars, with which he bought a large home and fancy cars. The public announcement of the Ames scandal in February 1994 would pose a dilemma for Woolsey. Public and Congressional reaction -- focused on the failure of the CIA itself to detect Ames' duplicity for almost a decade -- was harshly critical of the Agency. There was a widespread expectation that Woolsey would mete out harsh punishment for those who had failed to detect Ames' activity. For his part, however, Woolsey was unsure as to what sort of punishment, if any, was appropriate. As a public clamor grew for "heads to roll," Woolsey would have to consider what was fair to long-time CIA officials, what was best for the morale of a beleaguered agency, and what was expected by the public. HKS Case Number 1339.1. -
Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters
Illinois Superconductor Corp. a technology start-up, came up with an innovative new superconducting filter for use in cellular base stations. It needed to estimate the demand for its filters. The manager came up with a simple chain-ratio-based forecasting model that, while simple and intuitive, was too simplistic. The company had also commissioned a research firm to develop a model-based forecast. The model-based forecast used diffusion modeling, analogy-based forecasting, and conjoint analysis to create a forecast that incorporated customer preferences, diffusion effects, and competitive dynamics. -
Technical Note: Third-Party Logistics: Current Issues and World Wide Web Resources
The purpose of this note is to update a person already familiar with third-party logistics companies (3PLs) on issues facing the industry, and also to provide a listing of available resources on the World Wide Web related to 3PLs. We first cover basic concepts about 3PLs, and the benefits and risks of outsourcing logistics functions to these companies. Then we discuss current issues facing 3PLs. Finally, we present a summary of some of the most important 3PL-related sites organized by content. -
Shifting Labor Relations Paradigm: Union-Mgmt. Partnership in Ohio
Public sector unions are the fastest-growing sector of organized labor in the US, and are key players to be considered by a wide variety of elected and appointed public officials. This case, in contrast to most in both public management and business school collections, is told through the eyes of a labor leader, the executive director of the Ohio state government branch of the American Federation of State, County and Municipal Employees. It traces the evolution of an emerging union philosophy aimed at improving the long-term lot of members through increased productivity and efficiency, goals articulated in Ohio State government through a variation of total quality management techniques. The sense of steady, incremental progress and labor-management cooperation is disrupted, however, when a legislative demand for cost savings turns the state's Department of Administrative Services into a budget battleground. AFSCME executive director Paul Goldberg must decide how to respond to the immediate crisis in a way that preserves the "quality management" approach in which he believes but also convinces members that the union will continue to stand up for them. -
What I Learned from Warren Buffett
Bill Gates and Warren Buffett are by far the two most successful and admired businessmen in the United States. They share a unique friendship, a love of business, and a passion for hamburgers and mathematical puzzles. In a review of Roger Lowenstein's Buffet: The Making of an American Capitalist, Gates reflects on his relationship with the man he affectionately calls Warren. In his first-person account of their time together, Gates talks about creating value and sharing values. Of Buffett, Gates says, "I had never met anyone who thought about business in such a clear way." -
Escorts Limited: 1993
Escorts, a large historically successful Indian conglomerate, was confronted with a dramatic change in its external environment caused by liberalization policies in its domestic market. At issue is the formulation and implementation of the company's restructuring strategy in response to the changed conditions. The case should be used in a general management/business policy course to illustrate the formulation and implementation of strategic responses to similar environmental changes occurring in a number of developed and developing countries. A second case, Escorts: A Restructuring Plan, 9A95M011, documents Escorts' 1994 plan of response. A third case, Escorts: The Tractor Division, 9A95M010 concerns a specific division and illustrates implementation barriers otherwise unapparent in the previous cases. -
York River Paper Company
York River is a Canadian pulp and paper company whose major product is container material, used for making cardboard boxes. The company has three major customers. A small competitor has made a takeover bid for one of these customers. If successful, York will lose 25% of its volume. Should York make a $50 million counterbid to keep the customer? Assessment of the reaction of other customers relative to impending consolidation is critical. -
Benetton Group
The management of the Benetton Group includes senior executives advocating two different strategies: 1) expanding manufacturing to develop economies in order to grow Benetton's sales in those markets, and/or, 2)find ways to provide additional support to retailers, some of whom are operating in developed markets against sophisticated competitors and are increasingly embattled. Includes color exhibits. -
Arthur D. Little, Inc.
Charlie LeMantia, the president and CEO of Arthur D. Little (ADL), a leading consulting firm, is trying to decide whether the firm has a complete and effective corporate strategy. The case traces ADL's history, its rise to prominence and subsequent decline, and LeMantia's efforts to turn the organization around. Special attention is devoted to his introduction of process thinking and process management, and their impact on the way the company is managed. -
Andersen Consulting - EMEAI: Reorganization for Revitalization
Vernon Ellis, managing partner of Andersen Consulting -- Europe, Middle East, Africa, and India (AC -- EMEAI), is considering how best to reorganize. AC -- EMEAI has grown rapidly over the past five years to become Europe's largest consulting operation. However, Ellis feels that the organization needs to be reconfigured if it has to continue on its trajectory of rapid growth. Each of the various alternatives that he is considering offers intriguing potential benefits but also carries considerable risks. -
JON HIRSCHTICK'S NEW VENTURE
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Otis Elevator Co.: China Strategy (B)
Examines the conflict Otis faces with its joint venture partner as it seeks to expand into Southern China. -
Otis Elevator Co.: China Strategy (C)
Supplements the (B) case. -
Harimann International
Harimann International, a small producer of finished textiles, receives a large, unexpected order at the beginning of the off-season. Unfortunately, none of the available embroiderers (subcontractors) can commit to finishing the goods in time for internal processing (bleaching, cutting, sewing, washing, and packing) to be completed in time to guarantee the shipping date. This case offers a rich context for analyzing problem solving under uncertain conditions and exploring risk-reduction opportunities. -
New Logic of High-Tech R&D
Few managers of high-technology companies view manufacturing as a primary souce of competitive advantage. Indeed, companies in high-tech industries increasingly outsource manufacturing completely. In so doing, they hope to avoid the risks of investing in expensive manufacturing plants and losing sight of what they see as their true source of advantage: product research and development. The authors' research in the health care industry over the past decade suggests that such thinking is often costly and potentially dangerous to the competitive health of high-tech companies. In fact, it is not only possible but also necessary to excel at developing new products and new manufacturing processes simultaneously. In many high-tech markets in which product technology is rapidly evolving, manufacturing process innovation is becoming an increasingly critical capability for product innovation. -
Surviving Success: An Interview with the Nature Conservancy's John Sawhill
Can an organization with a four-decade track record of growth avoid becoming the victim of its own success? Since the Nature Conservancy was founded in 1951, it has worked to save threatened habitats and species by buying and setting aside land. Year by year, the number of acres under its protection has increased, membership has risen, and donations have grown. The leader of any nonprofit company might justifiably envy the Conservancy's performance, but its president and CEO, John Sawhill, isn't satisfied. Since taking the job in 1990, Sawhill has led a major shift in strategy with far-reaching implications for the day-to-day activities of the organization's 2,000 employees. He believes that the Conservancy must change now to achieve its mission over the long term. In this interview, he discusses the challenges inherent in refocusing a large, successful, mission-driven organization.