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David Brennan, CEO of AstraZeneca UK Limited (AZN), was passionate about bringing new medicines to patients. But the industry was transforming to one that featured less patent protection, more competition from generic drugs, stiffer government regulations, and decreased productivity in R&D. The strategy? Build a pipeline with new prescription drugs that were unique enough to provide a differentiated benefit to patients, grow the business globally, streamline the organization and increase efficiency, and build a culture of courage, creativity, and collaboration. Would the firm be able to provide a sustainable and consistent pipeline of new products-at lower cost, likely with fewer people? How might the firm average two new products to market each year? What areas of R&D should the company invest in, and what would the R&D transformation look like?

Some technology transitions are exceedingly difficult for incumbent firms to execute. The bankruptcy filing by the Eastman Kodak Company highlighted the difficulty companies faced when their core business transitioned from an analog to a digital world. Kodak's business was built on the sale of a complex manufactured product - color photographic film that was exceedingly difficult to manufacture - with correspondingly high barriers to entry. Over more than a century, it developed the complex chemistry and high speed coating technologies that enabled it to roll-coat tiny strips of plastic with as many as 24 layers of complex organic dyes and photosensitizers at thousands of square feet per minute. Its color film and paper products including Kodachrome and Kodacolor preserved many of the iconic images of the last century. Beginning in the 1990s, the company built a digital photography business, yet by 2012 the company was in reorganization and its prognosis was guarded. Kodak faced a particularly challenging analog to digital transition, like many companies that have faced the waves of creative destruction wrought by technological innovation. Why was an analog to digital transition in the core technology of a business particularly challenging? This note reviews some of the management research on how firms have fared with technology transitions, and then explains why the conversion of a technology from analog to digital is uniquely problematic. The challenge that faced Kodak is the same challenge facing companies like Panasonic and Sony, telecom equipment companies, and other industries now that the underlying technology through which products and services are built has changed.

In December 2011 the Lego Group (TLG) announced the launch of Lego Friends, the company's sixth attempt to market a product to girls. Lego Friends, which was supported by a $40 million global marketing campaign, was designed to introduce the fun of building with Lego bricks to girls, who represented less than 10 percent of Lego's audience. The company's poorly executed brand extensions and move from free-form building sets to story-driven kits had nearly cost it its independence in 2004, so the launch of Lego Friends was strategically important. However, within hours of the product's appearance it was heavily criticized for reinforcing gender stereotypes and damaging the valuable Lego brand. Jørgen Vig Knudstorp, CEO since 2004, had saved TLG and ushered in an era of sales growth with a series of successful strategic initiatives. Would Lego Friends be another addition to TLG's graveyard of failed products for girls, or would it prove popular and finally enable the company to double its sales and profits by reaching this segment?

Strategically aligned and efficiently implemented spare parts logistics can differentiate a business from its competitors, lower costs, increase revenues, and thus help firms generate greater value for customers and ultimately increase profits. Based on multiple case studies with manufacturers in the machine and plant construction industry, this article examines the key components of a superior spare parts logistics strategy. The study suggests that an efficient spare parts logistics strategy can be developed with a three-step model that consists of nine components.

The case traces the transformation of The Park Hotels (TPH) from being "yet another hotel" at the time of its founding in 1967 into India's first boutique hotel network. It describes how Priya Paul, the Chairperson, TPH, and her team created a uniquely Indian boutique hotel network - emphasizing intimate and personalized service, and positioning each hotel as an entertainment destination for customers. The case invites students to consider the strategic choices open to the TPH management in 2010 as they grapple with the challenges of sustaining growth, retaining the distinctiveness and individuality of each of the properties in the network even as they cope with growing competition from both global majors (Hyatt, Starwood Hotels, and JW Marriott) and the local giants (The Taj, Oberoi, and ITC Welcomgroup).

This note provides an overview of strategies for multi-business firms. The note describes (i) what is meant by "corporate advantage", (ii) the different approaches that multi-business firms can pursue in order to create corporate advantage, (iii) the specific corporate level choices (portfolio, ownership, and organizational choices) that firms make, (iv) certain principles that characterize effective corporate level strategy, and (v) reasons why corporate strategies can fail. In its treatment and coverage of these issues, the note emphasizes similarities between the core principles of business unit strategy and of corporate level strategy.

Before managers can solve problems or take advantage of opportunities that may arise in their businesses, they must frame those problems or opportunities. Typically, leaders identify and frame problems intuitively and without much conscious deliberation. Framing problems is more an art than a science. It is also profoundly linked with the way our brains work, especially the intuitive processes we use to make sense of the world around us. This technical note illustrates how this process unfolds and how one can find a better frame, thus discovering actions that actually work to solve problems.

Founded in 1971 and acquired by CEO Howard Schultz in 1987, Starbucks was an American success story. In forty years it grew from a single-location coffee roaster in Seattle, Washington to a multibillion-dollar global enterprise that operated more than 17,000 retail coffee shops in fifty countries and sold coffee beans, instant coffee, tea, and ready-to-drink beverages in tens of thousands of grocery and mass merchandise stores. However, as Starbucks moved into new market contexts as part of its aggressive growth strategy, the assets and activities central to its competitive advantage in its retail coffee shops were altered or weakened, which made it more vulnerable to competitive threats from both higher and lower quality entrants. The company also had to make decisions on vertical integration related to its expansion into consumer packaged goods.

In 2010, Friend Bank was entering the fifth year of Hope Harris Johnson's ambitious 20-year growth plan to transform her family's one-branch community bank into an institution with a substantial presence in southeastern Alabama. Harris Johnson was pleased, so far, with the results. Strategically they had exceeded expectations in opening a second office and execution of the plan was going well. And while the financial and economic crisis that began in 2008 had affected the financial results, it also presented Friend with competitive opportunities. Nonetheless, realizing her ultimate goals for Friend would not come easily. This is a shorter version of "Friend Bank: The Time for Hope," HBS No. 310-070.

LEGO has emerged as one of the most successful companies in the toy industry. The case describes LEGO's gradual rise, rapid decline, and recent revitalization as it is keeping up with a changing market place. Central to LEGO's management model is the ability to find the right balance among growing through innovation, staying true to its core, and controlling operational complexity.

This case and the Warner Bros. Pictures: The Harry Potter Dilemma case are set in December 2010 and represent industry consultants thinking about how to market the final installments of very successful movie franchises. Both Paramount Pictures and Warner Bros. Pictures want to market their movie to gain the greatest gross (i.e. box office ticket revenue). Each company must take into account the scheduling of the other players in the market. The cases also deal with changes in the movie industry. These include the expansion of the number of 3D movies and the importance of franchise movies.

This is an MIT Sloan Management Review article. In many companies, pricing receives surprisingly little attention. Following work that included a study of pricing at 15 small and medium-sized companies, the authors conclude that most companies can improve their pricing capabilities -and thus their profitability -over time by taking a disciplined approach. The authors identify two key elements of pricing -price orientation and price getting -and five levels of pricing capabilities. They observe that the companies they studied that achieved better pricing had top managers who championed the development of pricing skills. While competition, costs and price sensitivity within a market affect the parameters within which companies set prices, superior pricing is almost always based on skill, the authors maintain. Companies differ substantially in their approach to price setting, but most fall into one of three buckets: cost-based pricing, competition-based pricing or customer value-based pricing. Customer value-based pricing uses data on the perceived customer value of the product as the main factor for determining the final selling price, and many scholars consider customer value-based pricing often to be a preferable approach to price setting for existing products. The authors argue that according to their research many companies can improve their pricing capabilities by cultivating their understanding of the value they bring their customers. But implementing customer value-based pricing is not easy, the authors caution. They find that developing and implementing a sophisticated, customer value-based pricing program is a multiyear project that demands a high degree of executive attention and requires substantial changes in processes and thinking within the company.

This is an MIT Sloan Management Review article.

"High sustainability" companies significantly outperformed their counterparts over an 18-year period in terms of both stock market and accounting criteria, such as return on assets and return on equity. They also exhibited lower performance volatility. Currently, organizations that exhibit a broad-based commitment to sustainability on the basis of their original corporate DNA are few and far between. For most companies, becoming sustainable involves a conscious and continuing effort to build long-term value for shareholders by contributing to a sustainable society. The authors studied the organizational models of companies that they refer to as "sustainable" by comparing them with companies that they call "traditional." They focused on two primary questions: (1) How do sustainable companies create the conditions that embed sustainability in the company's strategy and operations, and (2) What are the specific elements of sustainable companies' cultures that differentiate them from those of traditional companies? The authors have developed an identity and cultural model for how to create a sustainable company. While the model is straightforward, implementation is by no means easy, because it is grounded in largescale change - something that few companies seek out or do well. The first stage involves reframing the company's identity through leadership commitment and external engagement. The second stage involves codifying the new identity through employee engagement and mechanisms of execution. Both are ongoing processes. Once the second stage begins, the two stages reinforce each other. Employee engagement enables even more sophisticated external engagement, since a broader range of employees will be able to effectively engage with outside stakeholders. Mechanisms of execution bind leadership commitment, since these organizational-level attributes continue from one generation of leaders to the next.

The case opens with Paul Cope's excitement and optimism about the future possibilities of the library-automation industry. His optimism was tempered by the fact that the library market was very mature and libraries in both Canada and the U.S. were confronted with shrinking budgets. Although Paul Cope was hopeful about the future possibilities of the library-automation industry, A-G had to find a way to increase revenues in its North American business in the face of declining library budgets. The case describes the library-automation industry, the market segments served, the products offered by the firms in the industry, the trends affecting the industry, and the challenges faced by incumbents in the industry. It then describes competition in the PAC segment, which was intense throughout the 2000s. Competing technologies included SaaS (Software as a Service) and open-systems software. Markets were also changing. One ongoing issue was that library patrons belonged to a generation accustomed to Google-like search engines and the latest and greatest technologies, so held high expectations for a library's ease of use and breadth of content. Libraries needed to make radical changes to redefine their relevancy with their community of users and to keep up with changes in technologies including eBooks, eJournals and other online resources. The case then describes A-G itself-how it innovates, its product line, and its financial statements over the past five years. The case ends with the challenges facing Paul Cope and A-G. The case will challenge students to integrate industry and competitive dynamics with market demands and technological trends and devise a set of worthy strategic alternatives commensurate with its financial resources to help A-G continue to grow in the future.

In June 2012, Best Buy was in crisis. In 1996, Best Buy overtook Circuit City as the world's leader in consumer electronics retailing; however, 18 years later, Best Buy now found this position threatened. With $51 billion in revenues, it was still the biggest CE retailer, but sales were flat and profits had collapsed. Meanwhile, Amazon's sales in Best Buy's categories were growing at more than 50% p.a. and its total sales, at $48 billion, were approaching those of Best Buy. As Wal-Mart cherry-picked popular items for steep discounts and Amazon encouraged consumers to compare prices using smart phones, Best Buy was becoming a showroom for lower cost retail models. International expansion was struggling and domestic sales of digital televisions were cooling. Although the popularity of mobile devices suggested easy growth, many devices were sold by telephone service providers, creating increased retail competition. To add to Best Buy's problems, on April 10, 2012, CEO Brian Dunn resigned after an investigation into his personal conduct. On June 7, 2012, Dick Schulze, the firm's founder, who had navigated the company through many strategic changes since 1966, also decided to leave and "explore all available options" for his 20.1% stake in the company. Best Buy had seen off many competitive challenges in the past. Would it be able to fend off these challengers and maintain its position?

In fiscal 2000, Circuit City was at the top of its game. The world's leading consumer electronics retailer had delivered record sales and profits for the first year of the new millennium. It was a fitting moment for Richard Sharpe, the CEO of the last 14 years, to step down. Over his tenure, revenues had increased 18 times and operating profits 13 times. In June 2000, Alan McCollough succeeded him as CEO. A 12 year veteran of Circuit City, McCollough expressed confidence in the future, citing trends such as the digitization of televisions, music players, and cameras. But challenges loomed from the increasingly aggressive discount sector. Was Circuit City as strategically strong as its financial results suggested? Would it be able to maintain momentum and retain its leadership?

This case explores the turnaround and corporate renewal of the Chicago Blackhawks professional hockey team, which transformed from one of the worst-run organizations in all of professional sports in 2007 to one that won the Stanley Cup (the National Hockey League championship trophy) in 2010. W. Rockwell "Rocky" Wirtz was faced with making critical decisions shortly after inheriting the team from his father, who was the individual most associated with the organization's decline. The team faced financial trouble and had narrowly avoided missing payroll; the previous customer relations strategy (which included refusing to televise home games or to conduct effective marketing) had resulted in significantly diminished brand value; and management and player personnel were devoid of effective leadership. At its nadir, the team was named "The Worst Franchise in Professional Sports" by ESPN in 2004. After assuming control, Rocky embarked on an ambitious corporate renewal strategy that included the following components: • Leadership: Install a new management team with clear goals and creative ideas about how to turn around the organization • Culture: Reward players for accomplishing their goals and establish a performance-based culture • Financial: Seek new corporate sponsorships and increase ticket prices once the team established a winning recordBrand and Marketing: Send a clear message that the team was intent upon winning the championship and design a customer-focused marketing strategy

On June 12, 2008, Invitrogen and Applied Biosystems announced plans to merge. The combined company was to be renamed Life Technologies (NASDAQ: LIFE). Invitrogen offered to acquire Applied Biosystems for $6.7 billion in cash and stock. AB shareholders would receive $38 per share in cash and stock, representing a 17 percent premium over the share's closing price on Wednesday, June 11, 2008.

For Chinese corporation Haier Inc, the biggest seller of major appliances in the world, entering India as an emerging market multinational is like having a double-edged sword. Its global presence gives it credibility to offer more sophisticated products that warrant a premium price, but Indian consumers have yet to develop the willingness to embrace its China-made, high-priced products. Seven years into its India business endeavours, sales remained sluggish and market share minimal. The company then undertook a swift change in pricing strategies and overhauled its marketing infrastructure to save its market. The case provides an overview of the situation and lends a discussion of marketing and localisation strategies of emerging market multinationals in India. It also gives insights into the challenges these multinational corporations face. The case also explores issues of product offerings, brand communication, pricing strategies, market capture and late-comer disadvantages. The comparison between Haier's behaviours in India and other markets also points to the level of localisation/globalisation the company adopts across markets.