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  • JBS Swift & Co.

    Brazilian meat packer JBS surprised many in the U.S. beef industry when it acquired Swift & Co.--a company more than five times its size--in 2007, then moved to acquire the U.S.'s fourth and fifth largest beef producers in 2008. The new JBS Swift slashed costs and restructured, turning around a quarterly loss of $99 million to a gain of $140 million within 6 months. JBS aimed to position itself to supply beef markets around the world, but it faced a perfect storm of rising feed and fuel prices, a global credit crisis and industry analysts skeptical about the company's debt load.
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  • ViniBrasil: New Latitude Wines

    ViniBrasil is a small wine venture in Brazil started by a top Portuguese wine company, Dao Sul. ViniBrasil grows its grapes in a novel environment (close to the equator) using innovative management practices such as controlled irrigation and year-round harvesting. ViniBrasil 'Rio Sol' wines, which have received several awards, are sold mainly in Brazil where per capita wine consumption is low and there is strong competition from inexpensive imports. Dao Sul must decide how to expand the Brazilian market and also if there is international potential for the new Brazilian wines.
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  • McDonald's: Is China Lovin' It?

    McDonald's, the world-famous American fast food franchisor, entered mainland China in 1990, when Chinese franchise law did not even exist. In this once-closed country whose market only opened up to foreign investors in 1978, McDonald's had to adapt to an unfamiliar and rapidly changing environment. Not only was food culture in China vastly different from that in the West, but food culture, lifestyles and legal structure were altering as a result of surging economic growth and massive urbanization. Competition was also intensifying as local and foreign restaurants sought to capitalize on China's increasing affluence. As the growing middle class demanded higher standards from these companies, McDonald's local business practices in terms of food healthiness, employee welfare and other socio-environmental issues were put under close scrutiny in China. While the nation's booming economy provided environmental conditions suitable for fast-food culture, the environment also posed challenges to the survival of fast-food operators in the country. Would McDonald's be able to sustain its momentum as China transformed into a developed nation?
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  • A Crack in the Mug: Can Starbucks Mend It?

    After 20 years of rapid expansion, the last six months of 2007 saw Starbucks jolted by a decline in share price of 50 per cent and a decrease in customer visits. Its share price was hovering around $19 to $20. By mid-2008, it had declined to $18. Its fiscal first-quarter profit in 2007 rose by less than two per cent, and in January 2008, it announced the closing of 100 U.S. stores. In July, the number was increased to 600. The case was written to encourage classroom discussion and research into the company policy and marketing practices in order to discover the means for a possible turnaround of the company.
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  • Guam Visitors' Bureau

    The general manager of the Guam Visitors' Bureau, a destination marketing organization, faces the challenge of running the island's tourism industry. There are strong interest groups, who have structured the competitive field in Guam, and the island's mature industry faces ever-increasing competition from rival destinations. The general manager must formulate a realistic strategy that acknowledges the internal and external constraints his organization faces and safeguards the competitive position of Guam.
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  • Understanding Brands, Module Note

    For many firms, the brands associated with their products and/or services are their most valuable assets, and, hence, much management attention is given to designing, communicating, nurturing, and protecting them. This note is designed to provide an understanding of brand management strategies firms use to build, sustain, and leverage their brands.
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  • BMW's Project Switch (B): Importers vs. National Sales Companies

    BMW is faced with potential channel conflicts across several EU country markets. The case concludes the (A) case's exploration of BMW's approach to redesigning the channel in Greece. The case provides details on both headquarter and country head perspective on BMW's channel strategy.
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  • UnME Jeans: Branding in Web 2.0

    This case introduces emerging Web 2.0 social media in virtual worlds, social networking sites, and video sharing sites, and encourages students to explore the opportunities and risks they present for brands. The case allows students to grapple with the strategic and tactical decisions that accompany marketing communications strategy and to combine information on consumer behavior with an understanding of brand objectives, in order to assess and evaluate new social media options. Brand manager Margaret Foley is facing an increasingly complex media environment in which her traditional media plan, focused on television, print, and radio advertising, has become less effective due to declining audiences, increased advertising clutter, and consumers tuning out. She is exploring emerging Web 2.0 social media options to determine if they can better achieve her branding and advertising objectives. Her challenge is to cut through all of the hype surrounding Web 2.0 and to analyze the social media's potential for her brand by delving into the consumer needs and behaviors underpinning Web 2.0 technologies.
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  • Nestle

    In April 2008, Paul Bulcke took over as CEO of the world's largest food and beverage company. His predecessor, Peter Brabeck, had delivered 12 years of outstanding results while moving the company toward a new vision of health, nutrition, and wellness. Bulcke's challenge was to swiftly execute the vision and deliver the organic growth and improved margins necessary to meet the "Nestle model."
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  • Cyworld: Creating and Capturing Value in a Social Network

    In May 2008, the new CEO of Cyworld, a social network company in Korea, had to decide how to create and capture value from his rapidly growing user base. Cyworld was founded in 1999 and in 2003 it was acquired by SK Telecom, a leading mobile service provider in Korea. By 2007, Cyworld had 21 million users and $95 million revenue--$65 million from paid items (music, virtual gifts, etc.), $15 million from mobile networking, and $15 million from advertising. The new CEO had to decide which of these three revenue sources he should focus on in the future and how this choice would influence the target customers, the service offerings and the required capabilities.
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  • Jean-Claude Biver & the Relaunch of Hublot (A)

    In early 2005, Jean-Claude Biver, the new CEO of Hublot, a leading Swiss watch manufacturer, had to come up with a new strategy to eliminate the company's financial losses and revitalize a declining brand. With a turnover of roughly US$ 26 million, Hublot had lost US$ 2.6 million over the past 12 months as some competitors had rapidly imitated some of the brand's unique features in their own products.
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  • Sat & Co.: Market Orientation

    The Sat & Co. case demonstrates how market orientation can be achieved and how its implementation can lead to superior business performance in the context of the machine tool industry. Sat & Co. consisted of two divisions: the lathe division that manufactured the lathe machines, and the computer numerical control (CNC) division that assembled CNC machines. The capacity of both divisions was underutilized. The problem was that the lathe division manufactured very basic lathe machines and the CNC division assembled very technologically advanced machines. As a result, both divisions failed to satisfy their customers' needs. The lathe division was poorly market-oriented, whereas the CNC division was overly market-oriented. The chairperson of the board of directors was adamant that both divisions must survive, and that a market orientation must be achieved, i.e. the company must meet customers' needs and must improve its business performance.
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  • What Is a Free Customer Worth?

    Free customers who are subsidized by paying customers are essential to a vast array of businesses, such as media companies, employment services, and even IT providers. But because they generate revenue only indirectly, figuring out the true value of those customers - and how much attention to devote to them - has always been a challenge. Traditional customer-valuation models don't help; they focus exclusively on paying customers and largely ignore network effects, or how customers help draw other customers to a business. Now a new model, devised by professors Gupta, of Harvard Business School, and Mela, of Fuqua School of Business, takes into account not only direct network effects (where buyers attract more buyers or sellers more sellers) but also indirect network effects (where buyers attract more sellers or vice versa). The model calculates the precise long-term impact of each additional free customer on a company's profits, factoring in the degree to which he or she brings in other customers - whether free or paying - and the ripple effect of those customers. The model helped an online auction house make several critical decisions. The business made its money on fees charged to sellers but recognized that its free customers - its buyers - were valuable, too. As competition heated up, the company worried that it wasn't wooing enough buyers. Using the model, the business discovered that the network effects of buyers were indeed large and that those customers were worth over $1,000 each - much more than had been assumed. Armed with that information, the firm increased its research on buyers, invested more in targeting them with ads, and improved their experience. The model also helped the company identify the effects of various pricing strategies on sellers, showing that they became less price-sensitive over time. As a result, the company raised the fees it charged them as well.
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  • Obama versus Clinton: The YouTube Primary

    What was the role of the Internet in the contest for the Democratic presidential nomination between Senators Obama and Clinton? How does the role change in the shift from the Primary to the National election? The case examines media and content choices by each candidate, and allows students to explore the role of new media in political campaigns. The focus is on fundraising in 2007 and campaigning for Primary delegate votes in 2008.
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  • Shaklee Corporation: Corporate Social Responsibility

    Having bought Shaklee Corporation from Yamanouchi, Roger Barnett, its owner and CEO, wrestled with the question of how to grow the company and its reputation for environmental sustainability. In addition to preserving the "network marketing" nature of its sales channel (because it creates jobs and entrepreneurs), Barnett wished to take the business model to sub-Saharan Africa and South Asia.
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  • Molson Canada: Social Media Marketing

    This case describes Molson's experiment with social media for creating brand awareness. In November 2007, Molson, part of the Molson Coors Brewing Company, ended a social media promotion after facing criticism that it promoted binge drinking. Molson was faced with the difficulty of how quickly the contents of social media could spread to various audiences. The case encourages readers to ponder whether Molson's action was the only option available and to consider what its next steps might be.
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  • Molson Canada: Social Media Marketing

    This case describes Molson's experiment with social media for creating brand awareness. It illustrates issues involved in social media marketing. Molson was faced with the challenge of how quickly the contents of social media could spread to various constituencies. There was a real danger of the situation getting out of hand if Molson did not respond quickly. The case encourages readers to ponder whether Molson's action was the only option available and to consider what its next steps might be.
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  • The Year of Marketing Dangerously

    Digital advertising is growing nearly four times as fast as advertising overall; alternative channels cost less than traditional ones; and management increasingly insists on proof of ROI. These converging forces spell the end for television advertising.
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  • Protect Your Product's Look and Feel from Imitators

    "Trade dress" is the legal term for a nonfunctional design feature, such as the cowhide pattern on Gateway's computer boxes. Many companies don't know its value or assume that they could sue imitators. Here's a simple experiment to acquire the data needed for protection.
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  • Can Knockoffs Knock Out Your Business? (HBR Case Study and Commentary)

    Ruffin CEO Bill Bronson is on a mission. Counterfeits of his company's adventure gear and clothing are on the rise, and Bronson is hell-bent on stopping them. He has hired top-notch investigators to track down the criminals, invested in technology that will help distinguish his products from look-alikes, and pushed online vendors to stop selling fakes. All of that has cost a lot of money, however, and the problem seems to be getting worse. How far should Bronson take his campaign? Three experts comment on this fictional case study in R0810A and R0810Z. Giorgio Brandazza, a professor at SDA Bocconi School of Management, fought a similar battle as an executive at Calvin Klein. He advises Ruffin to mitigate the effects of copycats by building up the strength of its brand. For one thing, the company should increase its retail presence in countries where it is plagued by fakes. Single-brand stores will allow Ruffin to guarantee customers they're getting authentic goods, showcase its products in distinctive ways, and build strong relationships with consumers. J. Merrick "Rick" Taggart, president of Victorinox Swiss Army in North America, recommends zeroing in on the worst counterfeiting offenders. A resource Ruffin should take advantage of, he says, is customs and border patrol officers; if the company frequently communicates with them about ports of entry and consignee and consignor data, these officials can more easily sniff out illegal activity. The foundation for any good defense against counterfeiters, says Candace S. Cummings, general counsel of VF Corporation, is instituting tight controls over the company's supply chain and distribution process. That means, among other things, choosing manufacturing partners carefully and having strict contracts with distribution partners that, for example, prohibit products from going anywhere but outlets the company trusts.
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