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In January 1994, Danie Niemandt, general manager for South African Breweries operations in Tanzania, must determine how his company should respond to the entry of a new competitor in its market--East African Breweries. South African Breweries has executed a successful turnaround of the brewery operations in Tanzania. East African Breweries is backed by Guinness plc, one of the world's largest beer brewers, and Guinness has committed itself to investing the resources necessary to build a leading presence in the Tanzanian market. The challenge facing South African Breweries in Tanzania illustrates the challenge the company faces in many of its international markets. The company has built its international strategy around its operational expertise, but must now adjust to the entrance of well-funded global beer competitors in several of its international markets. Intended for use in a course on international business and strategy.

Businesses will soon be able to conduct commerce through peer-to-peer networks, bypassing the costs and the limits of centralized B2B exchanges.

Microsoft's Richard Purcell makes the case for dedicating a senior manager to protecting your customers' on-line privacy.

By the time Greg Summe joined EG&G in 1998, the company badly needed to shed the weight of past glories and rediscover the technological innovation that had been at its heart. First as president and COO and later as chairman and CEO, Summe applied a cool rationalism to the company's strategy and paid close attention to preparing its people for a new competitive environment. The result, less than three years later, is PerkinElmer, a high-tech darling whose stock has more than tripled since Summe's arrival. The first task, he says, was establishing more ambitious performance goals, specific metrics and rewards, and more accountability. The company also consolidated its 31 businesses into four strategic business units, integrated sales forces, shifted production to the Far East, developed a corporatewide materials-purchasing program, and raised profit and growth goals. It established four rigorous, corporatewide processes: goal setting to drive strategy; a leadership and organizational review to develop talent; an annual operating plan to set performance goals; and a procurement, quality, and productivity program for continuous improvement.

In 1996, Duke Children's Hospital was in serious trouble. Its $11 million annual operating loss had forced administrators to make cutbacks. As a result, some caregivers felt that the quality of care had deteriorated. Parents' complaints were on the rise. Frustrated staff members were quitting. In this article, Jon Meliones, DCH's chief medical director, candidly describes how his debt-ridden hospital transformed itself into a vibrant and profitable one. The problem, he realized, was that each group in DCH was focusing only on its individual mission. Doctors and nurses wanted to restore their patients to health; they didn't want to have to think about costs. Hospital administrators, for their part, were focused only on controlling wildly escalating health care costs. To keep DCH afloat, clinicians and administrators needed to work together. By listening to staff concerns, turning reams of confusing data into useful information, taking a fresh approach to teamwork, and using the balanced scorecard method, Meliones and his colleagues brought DCH back to life. This first-person account is required reading for any executive seeking to revitalize a sagging organization. Meliones shares the operating principles DCH followed to become a thriving business.

This case discusses the e-business strategy of Ducati, an Italian manufacturer of high-performance motorcycles. It describes how, on January 1st, 2000, Ducati exclusively sold through the Internet its new MH900e motorcycle at 15,000 Euros per unit. It was the first motorcycle ever sold through the Internet and the first-year production of the MH900e was sold out after just 31 minutes! The case also presents the way the company created the physical and the virtual World of Ducati.

NTT DoCoMo was established in 1992 and became publicly held in 1998. This case tracks how DoCoMo became the number one mobile phone company in Japan and how its i.mode service revolutionized the cellular phone market.

Examines the turnaround of Gucci and its transition from a single brand to a multi-brand company. A rewritten version of an earlier case.

Spreadsheet supplement for case 701-037.

CEMEX is a Mexican company that has become a major international competitor in cement while maintaining a higher level of profitability than other, longer-established majors. CEMEX's superior profitability supplies a basis for discussing the sources of superior performance in a global context. In addition, the wide array of benefits that CEMEX derives from its operations in different countries broadens conventional notions of why firms globalize.

The Alcatel Access Systems Division case highlights the issues and challenges, mainly in terms of product development and innovation, within a multinational organization traditionally organized on a country-based unit structure. The case focuses on the strategic organization and management issues aimed at developing adequate international integration, innovation and transformation processes amidst a fiercely changing competitive environment.

Supplement to case IN1040. The Alcatel Access Systems Division case highlights the issues and challenges, mainly in terms of product development and innovation, within a multinational organization traditionally organized on a country-based unit structure. The case focuses on the strategic organization and management issues aimed at developing adequate international integration, innovation and transformation processes amidst a fiercely changing competitive environment.

Supplement to case IN1040. The Alcatel Access Systems Division case highlights the issues and challenges, mainly in terms of product development and innovation, within a multinational organization traditionally organized on a country-based unit structure. The case focuses on the strategic organization and management issues aimed at developing adequate international integration, innovation and transformation processes amidst a fiercely changing competitive environment.

It's no secret that health care delivery is convoluted, expensive, and often deeply dissatisfying to consumers. But what is less obvious is that a way out of this crisis exists. Just as the PC replaced the mainframe and the telephone replaced the telegraph operator, disruptive innovations are changing the landscape of health care. Nurse practitioners, general practitioners, and even patients can do things in less-expensive, decentralized settings that could once be performed only by expensive specialists in centralized, inconvenient locations. But established institutions are fighting these innovations tooth and nail. Not only is this at the root of consumer dissatisfaction with the present system, it sows the seeds of its own destruction. The history of disruptive innovations tells us that incumbent institutions will be replaced with ones whose business models are appropriate to the new technologies and markets. Instead of working to preserve the existing systems, regulators, physicians, and pharmaceutical companies need to ask how they can enable more disruptive innovations to emerge. If the natural process of disruption is allowed to proceed, the result will be higher quality, lower cost, more convenient health care for everyone.

Digital technology is reshaping the media and telecommunications industries. Now we can convert all kinds of information into digital bits and deliver them through the same pipe. This is an earthquake rocking traditional publishers like Encyclopaedia Britannica, media moguls like Time Warner, and telecom giants like Bell Atlantic. Barriers to entry are falling everywhere. Hillis predicts a battle in the next decade, as the incumbents try to hold on to their traditional advantages. Since Congress is easier to fool than the marketplace, Hillis maintains, much of that battle will be fought over regulations. Reed Hundt's engaging You Say You Want a Revolution provides useful background to this battle. As chairman of the FCC from 1993 to 1997, Hundt was at the forefront of efforts to break down the barriers between the different delivery media. Less satisfying to Hillis is George Gilder's large think piece, Telecosm, in which Gilder looks at the emerging technology and business of information delivery. Lyrical, but not always accurate, the book should be read more for its gestalt than for its details. Gilder and Hundt may disagree on how much to deregulate, but they agree that deregulation is desirable in the long run. Once the marketplace is open, Hillis predicts, the industries will split along functional lines: technology companies will deliver the bits and creative specialists will provide content and services.

If you were a military general on the march, you'd want your troops to have plenty of maps--detailed information about the mission they were on, the roads they would travel, the campaigns they would undertake, and the weapons at their disposal. The same holds true in business: a workforce needs clear and detailed information to execute a business strategy successfully. Authors Robert Kaplan and David Norton, cocreators of the balanced scorecard, have adapted that seminal tool to create strategy maps. Strategy maps let an organization describe and illustrate--in clear and general language--its objectives, initiatives, targets markets, performance measures, and the links between all the pieces of its strategy. Using Mobil North American Marketing and Refining Company as an example, Kaplan and Norton walk through the creation of a strategy map and its four distinct regions--financial, customer, internal process, and learning and growth--which correspond to the four perspectives of the balanced scorecard. The authors show how the Mobil division used the map to transform itself from a centrally controlled manufacturer of commodity products to a decentralized, customer-driven organization.

Identifying which business ideas have real commercial potential is fraught with uncertainty, and even the most admired companies have stumbled. In this article, W. Chan Kim and Renee Mauborgne introduce three tools that managers can use to help strip away some of that uncertainty. The first tool, "the buyer utility map," indicates how likely it is that customers will be attracted to a new business idea. The second, "the price corridor of the mass," identifies what price will unlock the greatest number of customers. And the third tool, "the business model guide," offers a framework for figuring out whether and how a company can profitably deliver the new idea at the targeted price. Applying the tools, though, is not the end of the story. Many innovations have to overcome adoption hurdles--strong resistance from stakeholders inside and outside the company. The authors conclude by discussing how managers can head off negative reactions from stakeholders.

Once you say what business you're in, you put your employees into a mental straitjacket and hand them a ready-made excuse for ignoring new opportunities. So rather than dictate his company's identity, Ricardo Semler--the majority owner of Semco in Sao Paulo, Brazil--lets his employees shape it through their individual efforts and interests. "I don't know what Semco is," he writes in this first-person account of his company's expansion from manufacturing to Internet services. "Nor do I want to know." The author shares some of the lessons he has learned: Forget about the top line. Never stop being a start-up. Don't be a nanny (treat your employees like adults). Let talent find its place. Make decisions quickly and openly when it comes to reviewing proposals for new businesses. And partner promiscuously: "Our partners," Semler says, "are as much a part of our company as our employees."

Antibusiness protestors are increasing their presence on the Web. Companies need to be smarter in using their own Web sites to deflect attacks.

Hewlett-Packard is giving away its e-speak software. The product's general manager explains the rationale for the risky move.