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  • Evolving From Value Chain to Value Grid

    This is an MIT Sloan Management Review article. The term "value chain" suggests an orderly progression of activities that allows managers to formulate profitable strategies and coordinate operations with suppliers and customers. Using examples from the telecom, pharmaceutical, steel, and auto industries, the authors argue for a more complex view of value--one that is represented by a "value grid." The grid approach allows firms to move beyond their industry lines to identify opportunities and threats. It pushes managers to understand the power balance between suppliers and manufacturers. The new pathways to value can be vertical (as firms explore opportunities upstream or downstream from the adjacent tiers in their value chain); horizontal (as firms identify opportunities from spanning similar tiers in multiple value chains); and even diagonal (as firms look more integratively across value chains and tiers for prospects to enhance performance and mitigate risk).
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  • Paul Chesler, Director, Quality Assurance

    Introduces the systemic nature of product quality and the complexity of quality problems. A new director of quality assurance discovers an apparent quality problem. The actions of different departments and functions contribute to the problem. The new director must decide how serious the problem is, what to do about it, and how to go about orienting an organization toward a better quality attitude.
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  • Starbucks: A Global Work-in-Progress

    Starbucks was founded in 1971 by Jerry Baldwin, Zev Ziegler and Gordon Bowkerthree men from Seattle who loved coffee. By 1995, Starbucks had expanded to 676 stores, all within the U.S. or Vancouver, Canada. Only in the next decade did Starbucks make its first entry into the international markets. By 2006, Starbucks had approximately 11,000 stores, with 70 percent in the U.S. and 30 percent in international markets. Outside observers, however, continually raised questions about the likely future growth of Starbucks and the mix and profitability of its U.S. versus international operations. Starbucks faced the ever-present issues of where and how to further expand its global presence. This case explores Starbucks' possible growth modes-organic, acquisition, joint venture, and licensing-and covers issues that influenced Starbucks' growth strategy, such as same versus new country expansion and profitability fluctuations in international markets.
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  • Jack Carlisle, CIO

    An experienced CIO hired to professionalize IT in a growing financial services firm struggles with the turmoil that follows sudden replacement of the company's CEO. Jack Carlisle must assess the changes, both actual and prospective, in an environment in which IT has not been well run and is frequently criticized by peer executives, from both a professional and career perspective. Asks students how Carlisle should evaluate his situation, to decide whether he can operate effectively in the new company environment, and to determine whether the new CEO sees a role for him going forward. Includes descriptions of initiatives that Carlisle has put in place to help mature the firm's IT capabilities; students can assess whether his efforts to address long-standing grievances with executive peers are likely to succeed or should be redressed.
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  • Bruynzeel Keukens: Mastering Complexity

    Bruynzeel Keukens, the Dutch kitchen industry leader faced a dilemma, it had audacious objectives in terms of maintaining leadership and increasing market share, yet its operations were not able to sustain such a pace any longer, it would have to be reengineered from scratch. Learning objective: This case provides a good opportunity to understand how supply chain management can have a huge impact on a company's strategy.
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  • Novo Nordisk Engineering: Running for Fast-Track Project Execution

    When appointed CEO of Novo Nordisk Engineering, Hans Ole Voigt created a vision for the company: Within five years NNE should be able to build a pharmaceutical plant in less than a year. The first reactions were quite negative, most of the employees thought such a goal was totally unrealistic. Processes were reengineered, people were coached and step by step NNE got closer to the objective. Employees became more and more energized and felt the 12 months goal was reachable. From a 30 to 36 months industry average construction time, NNE first came down to 24 then 18 and finally 11 months. By 2005 the goal was reached and the company had earned a standing reputation thanks to its accomplishments. Learning objectives: This case provides a good opportunity to learn about speed in project management. From a supply chain perspective it shows the importance of involving external partners from clients to suppliers in successful project execution. It also helps understand that even in highly regulated industries (here pharmaceutical industry) processes can be changed and improved. From a human resourced management it shows the importance both of creating energy driving employees to overcome extremely challenging projects and investing in project management training.
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  • Paper and More (A), Spreadsheet Supplement

    Spreadsheet to (606-023).
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  • Hurricane Katrina (A): Preparing for 'The Big One' in New Orleans

    When Hurricane Katrina slammed into the Gulf Coast on Monday morning, August 29, it cut a wide swath of destruction in the area; but despite inflicting enormous damage, it initially appeared that the storm had spared low-lying New Orleans the worst of its wrath. But as Katrina moved on, it soon became clear to those who had not evacuated the city that something was going very wrong: almost every part of New Orleans began to flood, and by the next day roughly 80 percent of it would be under water. The rapidly rising floodwaters, the result of three major breaches in the levees protecting the city, created a massive humanitarian crisis. Tens of thousands of residents escaped to rooftops or attics, where they waited anxiously for rescue, or waded in waist-deep water to find shelter; many went to the Superdome, which was already packed with people who had waited out the storm there, or to other improvised shelters in the city. As the days dragged on, it would become increasingly apparent that almost every aspect of the response from state, local, and federal government was falling far short of what was needed: evacuees languished in squalid shelters or on highway overpasses waiting for buses that did not come; looting and more serious crimes were reported to be rampant; food, water, and medical care were in short supply. As public outrage grew, fed by TV footage of distraught storm victims, emergency response officials and political leaders, all the way up to President George W. Bush, found themselves scrambling to cope with the "ultra-catastrophe" that Katrina had visited on New Orleans. HKS Case Number 1844.0
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  • Hurricane Katrina (B): Responding to an 'Ultra-Catastrophe' in New Orleans

    When Hurricane Katrina slammed into the Gulf Coast on Monday morning, August 29, it cut a wide swath of destruction in the area; but despite inflicting enormous damage, it initially appeared that the storm had spared low-lying New Orleans the worst of its wrath. But as Katrina moved on, it soon became clear to those who had not evacuated the city that something was going very wrong: almost every part of New Orleans began to flood, and by the next day roughly 80 percent of it would be under water. The rapidly rising floodwaters, the result of three major breaches in the levees protecting the city, created a massive humanitarian crisis. Tens of thousands of residents escaped to rooftops or attics, where they waited anxiously for rescue, or waded in waist-deep water to find shelter; many went to the Superdome, which was already packed with people who had waited out the storm there, or to other improvised shelters in the city. As the days dragged on, it would become increasingly apparent that almost every aspect of the response from state, local, and federal government was falling far short of what was needed: evacuees languished in squalid shelters or on highway overpasses waiting for buses that did not come; looting and more serious crimes were reported to be rampant; food, water, and medical care were in short supply. As public outrage grew, fed by TV footage of distraught storm victims, emergency response officials and political leaders, all the way up to President George W. Bush, found themselves scrambling to cope with the "ultra-catastrophe" that Katrina had visited on New Orleans. HKS Case Number 1844.0
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  • Genedata

    Venture Valuation conducts an independent valuation of Genedata, a Swiss start-up company in order to help Novartis Venture Fund analyze and structure the next financing round. Venture Valuation, under a tight investment timeframe, has to customize the evaluation process, using both quantitative and qualitative data, to meet the customers needs. The case outlines Genedata's background, its product portfolio, competitive positioning, and issues that it will need to deal with in the near future. Learning Objective: This case is part of a three case series intended to draw the audience into the issues surrounding the valuation of a startup biotechnology company, one of the most speculative and volatile marketplace.
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  • Barry Riceman at NetD (B)

    An abstract is not available for this product.
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  • Genentech--Capacity Planning, Spreadsheet Supplement

    Spreadsheet to (606-052). Download Only.
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  • Laboratorio de Analisis Argentina

    The technical director of Laboratorio de Analisis Argentina is responsible for ensuring that an average of 5,000 samples are processed daily. The samples have three sources: samples collected on-premises, samples sent from the organization's other 40 labs and samples sent from external labs. In one week the technical director has to give her boss a recommendation about dealing with the lab's capacity problems.
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  • Smarter Offshoring

    During the past 15 years, companies have flocked to a handful of cities in India and Eastern Europe for offshore service functions. As a result, the most popular sites are now overheating: Demand for young professionals is outstripping supply, wages and turnover are soaring, and overburdened infrastructure systems are struggling to serve the explosive growth. The happy news is that the tight labor markets in the well-known hot spots are the exceptions, not the rule. Many attractive alternatives are emerging around the world. According to a McKinsey Global Institute study, more than 90% of the vast and rapidly growing pool of university-educated people suitable for work in multinationals are located outside the current hot spot cities. For instance, Morocco is now home to offshore centers for French and Spanish companies requiring fluent speakers of their home languages. Neighboring Tunisia has used its modern infrastructure, business-friendly regulations, and stable, low-cost workforce to attract companies such as Siemens and Wanadoo. Vietnam offers university graduates who have strong mathematics skills; speak French, English, German, or Russian; and do not demand high wages. The problems facing the hot spots, coupled with the emergence of many more countries able and willing to provide offshore services, mean that picking a site has become more complicated. In choosing a location, companies will have to focus less on low wages and much more on other ways that candidate cities can fulfill their business needs. They will have to be much more rigorous in articulating precisely what they require from an offshore location. That means evaluating their unique needs on a range of dimensions and understanding how alternative locations can meet those needs for the foreseeable future.
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  • Building a Shed

    Provides terminology and concepts for the process of building a wooden garden shed.
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  • Boat Building Exercise: Four Modes of Propulsion

    Describes alternative methods of propulsion (including steering) for small crafts (canoes, row boats, etc.) and the pros and cons of each.
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  • On Writing Cases Well

    How does one know what makes a good case? Are there certain attributes that effective business school cases have? This technical note was intended to help writers who may or may not be business school professors write a case. The note includes material on objectives, finding leads, interview questions and interviewing techniques, and case structure. Although the idea of what constitutes a good case may be debatable, there are several characteristics that good case studies have in common..
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  • Esterline Technologies: Lean Manufacturing

    Raises the issue of the appropriate role of IT in lean manufacturing. Most large manufacturing companies have implemented ERP IT systems to support lean manufacturing practices. The Kerry plant of Esterline Technologies attempted an ERP implementation and then terminated it. Now the Kerry plant is revisiting the appropriate use of IT in an environment of highly innovative lean manufacturing.
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  • Winning in the Aftermarket

    Ever since businesses started offering solutions instead of products, they have acknowledged that selling spare parts and after-sales services could be a lucrative source of profits. So why do so many companies still treat aftermarket services as an afterthought? One reason is that after-sales support is so hard to manage. Original equipment manufacturers (OEMs) often subject their customers to unnecessary delays when problems arise, and many OEMs outsource customer service. As a result, customers are dissatisfied with the level of service they receive, and companies don't benefit from the aftermarket's potential. Only businesses that provide services efficiently can truly benefit. Focusing on after-sales services can pay off in a number of ways. For example, it's cheaper for businesses to increase sales of parts and service-related products than to find new customers. And when companies provide aftermarket support, they gain unique insight into their customers' businesses that's difficult for rivals to acquire. The authors, who have studied after-sales service networks for more than 20 years, have developed a six-step approach to help companies improve after-sales service quality levels, reduce investments in service assets, and cut operating costs. To be successful, firms must identify the products they want to support, design a portfolio of service products, use multiple business models, determine after-sales organizational structures, create an after-sales supply chain, and monitor performance. Companies that ignore these steps, say the authors, are doomed to mediocrity.
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  • Big Bazaar

    Describes a high-growth Indian retailer, Pantaloon Retail (India) Ltd., and two of the company's formats--Big Bazaar and Food Bazaar. Challenges students to debate the company's concept, its strategic decision on how quickly it would like to grow, and some key decisions on its supply chain. At the time of the case (2006), small "mom-and-pop" stores still dominated Indian retailing, but that was changing rapidly because of the entry of "organized" retailers such as Pantaloon. Pantaloon's management faced some exciting opportunities as well as some potential competition from global retailers that were planning to enter the Indian market and large Indian business houses that were planning to establish retailing businesses.
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