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Takeda Pharmaceutical Company (B): The Millennium Acquisition
Yasuchika Hasegawa, president of Takeda Pharmaceutical Company, had a vision to make Takeda a top tier company in oncology by 2015. In 2008, Takeda acquired Millennium Pharmaceuticals, a respected oncology company with annual sales of $528 million in 2007 and a promising pipeline of new drugs. Hasegawa and Millennium CEO Deborah Dunsire believed that it was critical to convey a consistent vision for the future of Millennium within Takeda and help Millennium employees feel positive about the company's future. Millennium would operate independently and become Takeda's "Center of Excellence in Oncology." This case explores the steps that Hasegawa took to successfully integrate Millennium. His priorities centered on retaining Millennium talent and addressing the friction that arose from two very different corporate cultures. He also used the opportunity to transform Takeda's risk averse culture into a more innovative and flexible one that would support Takeda becoming a truly global pharmaceutical company. -
TwinMed
TwinMed was a nursing home supply business located in Los Angeles. This case details its humble origins and its development, and raises several strategic issues prevalent in Medicare-reimbursed businesses, business-to-business selling, and what to do when there is a sea change in government billing as there was in 1999, with the advent of Medicare's "PPS" model. -
U.S. Competitiveness and the Chinese Challenge
America needs to restore confidence in the country's innovation machine. -
Intertech: Instructors who Consult. Consultants who Teach
This case focuses on an entrepreneurial training and consulting company considering if it should invest in new virtual training technology as part of its growth strategy. The decision could significantly impact the nature of the company's face-to-face training business, change the company's historically successful business model, and affect long-range plans for growth. Intertech was founded in 1991 and provided technology training and consulting for a wide variety of clients, primarily in Minnesota. Intertech CEO and founder, Tom Salonek, was evaluating the next steps to achieve the company's growth goals. While the decision to spend $25,000 was not significant financially, the virtual training decision needed to be viewed from a variety of functional and strategic perspectives because of its impact on Intertech's business model -
Strategic Planning and Governance at Bridge Adult Service Centre: Where to Begin?
Susan Thibodeau, Executive Director of Bridge Adult Service Centre, contemplated how Bridge Adult could provide additional services and improved programming to current and new clients. Bridge Adult was a not-for-profit organization that aimed to enhance the lives and promote inclusion of intellectually challenged individuals in communities. There were 27 other service centres similar to Bridge Adult located throughout Nova Scotia, Canada. Funding from government sources remained relatively stagnant over the years but demand and programming needs had changed significantly in most of these centres. In order for Bridge Adult to continue to improve their current client offerings, programs that generated revenue while simultaneously provided meaningful experiences for clients were essential. Thibodeau, in collaboration with the Board, needed to determine strategic priorities for the next three years, her role in that process and who would be responsible for the various aspects of the implementation. This case was formulated for university undergraduate students in their fourth year of study or graduate students in a MBA program. It is intended to challenge students to consider the similarities and differences in strategy formulation and implementation and governance between for-profit and not-for-profit organizations. It should therefore be taught as a corporate governance or strategic planning case and ideally after students have been exposed to financial analysis, competitive analysis, value chain analysis, governance, SWOT analysis, and growth strategies. -
The Looming Challenge to U.S. Competitiveness
Although the U.S. retains profound competitive strengths--for instance, in higher education and entrepreneurship--those strengths are increasingly threatened by weaknesses in areas such as the tax code, basic education, macroeconomic policies, and regulation. Steps to reverse the loss will require a new focus by government and business leaders. -
Choosing the United States
A location decision is, in many respects, a referendum on a nation's competitiveness. When a company decides, say, to build a new plant in China rather than in the United States, it is effectively voting on the question of which country can best enable its success in the global marketplace. Over the past three decades, business activities have become increasingly mobile, and more and more countries have become viable contenders for them. But new data--including the results of an unprecedented survey of 10,000 Harvard Business School alumni--suggest that the U.S. is not winning its appropriate share of location decisions, even for high-value business activities such as R&D that it has traditionally been able to attract. In part, this is because U.S. policy makers are not addressing weaknesses in the national business environment. There are also problems at the corporate level: Many location decisions are incremental shifts of activities offshore; imagine a bucket with many small pinpricks. For instance, a software firm promotes American developers to high-end positions and hires workers from Eastern Europe to do lower-end work. As such, the decisions appear not to warrant exhaustive analysis. At the same time, managers ignore substantial hidden costs associated with non-U.S. locations and overlook the benefits they could reap were they to invest instead in local communities. This article examines the strengths and weaknesses of U.S. locations, identifies the kinds of activities the U.S. must compete for, and outlines an agenda for action for government and business leaders. -
Tiny Prints (A)
The Tiny Prints case describes the founding of the online stationery company in 2004, through its growth and evolution to 2007. The three cofounders bootstrapped the company from the beginning, primarily so that they could retain control over the decision-making and strategic direction of the company. While that decision allowed the cofounders flexibility and independence, it also led to capital constraints and a "good enough" culture that had a variety of positive and negative implications for the company. Ultimately, Tiny Prints was able to grow because of its very specific focus on the birth announcement, and later holiday, market, an emphasis on customer service and innovations in design and distribution. As of 2007, the founders faced questions regarding their future growth strategy, particularly given increasing competition in the market, and were at an inflection point where they needed to consider the important decision of bringing in outside capital. Part B of the case explores the management team's decision to move forward with a purchase offer from Shutterfly or to maintain control of the company and continue to grow organically. -
Motorola's Spin-Off of Its Cell Phone Business
In March 2008, Motorola, Inc. announced that it would split itself into two publicly traded companies by spinning off its largest division - the unprofitable mobile devices handset unit. However, Motorola was so deeply identified with its cell phone products that many people did not know much about its other lines of business. In this case, students review Motorola's financials and organizational structure in order to analyze the reasons for the spinoff and to consider how the firm must prepare for this momentous shift in strategy. -
Bigpoint
Bigpoint was a leading online gaming company with vast international operations. One country that it wanted to enter was the United States, where existing players EA and Zynga, as well as dominant social gaming platforms and the Apple App Store posed considerable challenges. It also needed to restructure its top management to better manage its growth. -
Moving to Universal Coverage: Health Care Reform in Massachusetts
State health care reform in Massachusetts has involved a phased process, focusing first on coverage expansion and then turning to delivery system innovation and cost containment. In 2006, the state adopted an individual mandate to obtain health care coverage which, along with a Medicaid expansion and creation of an exchange for two new health insurance programs, reduced the proportion of uninsured to below 3% within three years. In 2009, high and rising health care spending called into question the sustainability of these reforms. Massachusetts prepared to implement its second wave of changes, which included delivery system reforms and a proposed shift from fee-for-service to "global payments" covering all or most of an individual's care. The case examines the content and sequencing of both phases of health care reform in Massachusetts, enabling discussion of health care system-level strategy and the relationship between coverage, care delivery, and spending. -
Sea Change: Rewriting the Rules for Port Security
This case describes the task that confronted Coast Guard Captain Suzanne Englebert, the staff point-person who led an initiative to develop new regulations intended to improve the security of the nation's ports from terrorist attacks, in the wake of the September 11, 2001 attacks. It is intended for use in a strategic management class. Students are challenged to weigh an array of political, practical, legal, and technical considerations in assessing Englebert's approach. The case provides students with the background information they need to discuss the challenges inherent in tightening port security, including: basic information about the economic import of maritime trade, the range of conditions at US ports, the nature of international shipping and regulation, the particular problems posed by containerized shipping, and the kinds of terrorist attack foreseen by security experts. This case also describes several initiatives, undertaken in parallel, to improve port security immediately after 9/11, including immediate protocol shifts in the international ports, and bilateral negotiations with the largest ports outside the United States. The case introduces Englebert and describes her role in the Coast Guard's simultaneous efforts to work with US legislators to create a domestic port security law and with international partners in the International Maritime Organization to create a worldwide port security regime. The case ends with Englebert facing her next herculean task: to turn the mandates of the new federal law into specific, concrete regulations in just a few months' time. The case was designed as a companion piece to a dvd, case number: 1946.9. Case number 1946.0 -
Sweet Deal -- Industry Self-Regulation of Breakfast Cereal Advertising To Children
In response to growing concern about childhood obesity, in February 2006 the Council of Better Business Bureaus (CBBB) announced an initiative to examine its self-regulatory program on children's advertising. The existing program was a voluntary cross-industry program that monitored advertisements directed to children. However, the program did not stipulate which products companies could or could not advertise to children. In response to calls for action on childhood obesity, the CBBB was considering a number of approaches, including revising children's advertising guidelines, but staying within the basic parameters of the current program. Alternatively, the CBBB was considering launching a new self-regulatory program in which participating firms would constrain the amount of their children-targeted advertising of less-nutritious products. It was widely believed that children's food advertising was a major contributor to childhood obesity, and within the food-advertising category, considerable attention was directed to advertisements of children's presweetened cereals. The major ready-to-eat (RTE) cereal manufacturers, such as Kellogg's and General Mills, were supporters of the CBBB self-regulation programs and were invited to participate in the CBBB initiative. Each manufacturer had been taking different individual approaches to address the concerns of childhood obesity. The case discussion focuses on what actions General Mills should take with respect to the CBBB initiative and on its own. -
Citibank: Weathering the Commercial Real Estate Crisis of the Early 1990s
As the commercial real estate market began to crash in early 1990, heavily exposed banks like Citibank and Chase Manhattan were left largely undercapitalized. John Reed, Citibank Chairman and CEO, was caught off guard by the sudden market plunge. While Reed struggled to maintain the capital reserve of us his bank further weaknesses within Citi began to emerge. In addition, to missing the coming of the real estate crisis Citi had had poorly managed internal operations, overvalued acquisitions and grown heavy from organizational excess. The poor management left Citi in the care of Federal Regulators, worried about the banks solvency. The case examines the roots of these problems and the steps taken by Reed to return the bank to a well-managed and stable institution. -
China Risk Finance: Riding the Wave of China's Financial Services Industry
With China shifting toward a consumer-led growth model, non-bank lending has a critical role to play, but how easy is it to do business in this sector? What are the promises and pitfalls of the industry, and how well is Zane Wang, the case protagonist, navigating them? -
Managing the Dynamics of Brand Performance
Developing Winning Brand Strategies is a five-chapter book written by Lars Finskud, the founder and CEO of Vanguard Strategy and previous Global Brand Specialist at McKinsey & Co., and published by Business Expert Press in January of 2009. Written for both students and professionals in the fields of brand and strategic management, the book, the book introduces the relationships between branding, strategy, and corporate performance. It provides a fresh perspective on developing robust customer-focused strategies and describes the important role of the brand in competing successfully for stakeholder choice in today's changing world of industry deregulation, growing competitive intensity, newly empowered consumers, and multiple stakeholders. A major objective is to provide the reader with an in-depth understanding of business dynamics and consumers' product- selection criteria, thus facilitating the development of informed strategic decisions. Chapter 4 examines and integrates the areas central to brand and business performance comprehension and management. The author discusses at length the prerequisites for successful branding, the brand's architecture, and the varying value systems that must be aligned to ensure value creation. -
Implementing Strategy Through Portfolios and Projects
Strategic Leadership of Portfolio and Project Management is an eight-chapter book written by Timothy J. Kloppenborg, the Castellini Distinguished Professor of Management at Xavier University, Cincinnati, Ohio, and Laurence J. Laning, a thirty-year IT executive who also teaches at Xavier. The book was published in January of 2012 by Business Expert Press. Written for executives, managers, and students of strategic management, the text addresses the gap between executives who determine strategy and the project managers who implement it. The authors advise leadership teams on implementing strategy through identifying, selecting, prioritizing, resourcing, and governing an optimal combination of projects that collectively helps them achieve their strategic goals. The book also guides executives about what they need to do at each project stage and how they can ensure project managers understand fully how their projects contribute to overall strategy. Further, the authors detail how regular reporting and quarterly updates in planning help to ensure results; propose proven, simple methods of collecting integral data; examine effective decision making methods; and explain how portfolio and project decisions must be made based on data using reliable analytical methods. Chapter 1 introduces the central issue of the book: addressing the gap between executives who determine strategy and the managers who implement it. The four sets of competing objectives of executives and managers are described. The authors consider how each project proceeds through a life cycle and how a project's success is determined. The need for standards and the roles executives perform in leading an organization's portfolio of projects are introduced. The chapter concludes with an overview of the other chapters in the book. -
Managing a Portfolio to Implement Strategy: A Leadership Team Role
Strategic Leadership of Portfolio and Project Management is an eight-chapter book written by Timothy J. Kloppenborg, the Castellini Distinguished Professor of Management at Xavier University, Cincinnati, Ohio, and Laurence J. Laning,a thirty-year IT executive who also teaches at Xavier. The book was published in January of 2012 by Business Expert Press. Written for executives, managers, and students of strategic management, the text addresses the gap between executives who determine strategy and the project managers who implement it. The authors advise leadership teams on implementing strategy through identifying, selecting, prioritizing, resourcing, and governing an optimal combination of projects that collectively helps them achieve their strategic goals. The book also guides executives about what they need to do at each project stage and how they can ensure project managers understand fully how their projects contribute to overall strategy. Further, the authors detail how regular reporting and quarterly updates in planning help to ensure results; propose proven, simple methods of collecting integral data; examine effective decision making methods; and explain how portfolio and project decisions must be made based on data using reliable analytical methods. Chapter 2 discusses portfolio management, or how to select the ideal set of projects and other work that collectively help an organization reach its goals. First, portfolio management is defined and its components described including: identifying, selecting, prioritizing, resourcing, and governing the organization's work. Then methods for accomplishing and evaluating portfolio management are detailed and are demonstrated using a case study. -
Sponsoring Successful Projects
Strategic Leadership of Portfolio and Project Management is an eight-chapter book written by Timothy J. Kloppenborg, the Castellini Distinguished Professor of Management at Xavier University, Cincinnati, Ohio, and Laurence J. Laning,a thirty-year IT executive who also teaches at Xavier. The book was published in January of 2012 by Business Expert Press. Written for executives, managers, and students of strategic management, the text addresses the gap between executives who determine strategy and the project managers who implement it. The authors advise leadership teams on implementing strategy through identifying, selecting, prioritizing, resourcing, and governing an optimal combination of projects that collectively helps them achieve their strategic goals. The book also guides executives about what they need to do at each project stage and how they can ensure project managers understand fully how their projects contribute to overall strategy. Further, the authors detail how regular reporting and quarterly updates in planning help to ensure results; propose proven, simple methods of collecting integral data; examine effective decision making methods; and explain how portfolio and project decisions must be made based on data using reliable analytical methods. In Chapter 3, the authors discuss the duties, motivations, and challenges of executives serving as a project sponsors. Executive sponsorship is defined and the responsibilities of a sponsor at each stage in the project life cycle are detailed. The chapter also examines the few select behaviors and high value activities executive sponsors can perform at each stage of a project to increase the probability of project success. -
Leading Project Managers: The Project Executive Role
Strategic Leadership of Portfolio and Project Management is an eight-chapter book written by Timothy J. Kloppenborg, the Castellini Distinguished Professor of Management at Xavier University, Cincinnati, Ohio, and Laurence J. Laning,a thirty-year IT executive who also teaches at Xavier. The book was published in January of 2012 by Business Expert Press. Written for executives, managers, and students of strategic management, the text addresses the gap between executives who determine strategy and the project managers who implement it. The authors advise leadership teams on implementing strategy through identifying, selecting, prioritizing, resourcing, and governing an optimal combination of projects that collectively helps them achieve their strategic goals. The book also guides executives about what they need to do at each project stage and how they can ensure project managers understand fully how their projects contribute to overall strategy. Further, the authors detail how regular reporting and quarterly updates in planning help to ensure results; propose proven, simple methods of collecting integral data; examine effective decision making methods; and explain how portfolio and project decisions must be made based on data using reliable analytical methods. Chapter 4 describes the role, duties, and leadership skills required of executives when supervising a project manager. The responsibilities of a project manager are examined at each project stage so that an executive can understand the different roles a project manager plays as opposed to those of a functional manager. The specific task and coaching responsibilities of a project executive are also discussed at each stage of the project life cycle.