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Describes Xerox's "rental only" policy for its machines during the period when it had a monopoly of the plain paper copier market and how that policy changed once it was faced with entry by IBM, Canon, Kodak, and others. Data on the breakdown of Xerox's revenues between sales and rentals are included.

Examines whether product proliferation can be used as a preemptive device--as alleged in the FTC's 1982 complaint against four manufacturers of ready-to-eat cereals.

Contains a general description of a large international retailer. Focus is on the major financial risks facing the company: exchange rate risk and commodity price risk. This case is an introduction to financial risk management. It poses some of the major problem areas.

Examines the pricing policy for a firm that is a monopoly supplier of a durable good. Lowering price over time in an attempt to increase market penetration seems desirable. But doing so may also cause some buyers to postpone their purchases. Describes these considerations in the context of a specific example that can be analyzed numerically.

Examines the choice of optimal product positioning in a differentiated goods market.

Describes the process of decision making (establish objectives, generate alternatives, and so on) emphasizing the human side of it (using rules of thumb, favoring one's own pet projects) yet demonstrating the role an analytic/quantitative contribution has to make.

Begins with a description of the elements of post-deregulation competition in the commercial airline industry. This should facilitate a discussion of the use of quantitative methods to support a broad range of tactical and strategic airline decisions. The principal thrust of the case is on revenue management. First, there is a description of the principal pricing concepts, followed by two examples of pricing decisions facing American. Next, there is a discussion of the basic yield management concepts and comments on the challenges in their implementation. Finally, there is a brief write-up on the structure and future of the revenue management organization.

Colonial Homes supplies a complete raw materials package to build entire homes. The price of the package is guaranteed at the signing of the sales contract, while delivery (and payment) are not effected for up to six months. In an effort to reduce its exposure to fluctuating lumber prices, Colonial sources the package (mostly lumber) through the only lumber yard that also offers a six-month price guarantee. The lumber yard recently raised its prices, prompting Colonial to look elsewhere (with no or lesser fixed price guarantees).

Old methods of decision making, such as incrementalism and "rational" decision making don't meet the needs of a world with too much information and too little time. A new model allows one to make decisions with partial information and to adapt to new information as it becomes available. Adaptive or "humble" decision making involves two sets of judgments: broad, basic choices about an organization's goals and policies; and small, experimental decisions based on in-depth examination of a focused subset of facts and choices. Managers can use humble decision making to increase the flexibility and adaptability of their decisions.

Although construction is one of the riskiest things any company will do, upper management often ignores the risk or treats it as if it's uncontrollable. Construction risk, however, can be analyzed and managed by using seven steps. Analyzing risk is largely a matter of assessing the complexity of the building, the site, the financing, the schedule, and the special uses and problems of the project. This analysis then drives the choice of contract and contractor.

Two-party negotiation between a developer and a city representative over the amount of money the developer will pay the city to defray costs associated with development. Manatee Townhomes, Inc., has proposed a residential development for a harbor island in Bay City. Before proceeding it must obtain the approval of Bay City's Department of Streets and Thoroughfares. Streets and Thoroughfares will grant approval only if Manatee agrees to pay a sum money in the form of a traffic impact exaction. In this exercise, the two groups meet to determine the amount of the exaction. Manatee wants a low exaction in order to keep its profits high; Streets and Thoroughfares wants a high exaction in order to minimize future tax levies. Neither side knows too much about the interests of the other side.

Two-party negotiation between a developer and a city representative over the amount of money the developer will pay the city to defray costs associated with development. Manatee Townhomes, Inc., has proposed a residential development for a harbor island in Bay City. Before proceeding it must obtain the approval of Bay City's Department of Streets and Thoroughfares. Streets and Thoroughfares will grant approval only if Manatee agrees to pay a sum money in the form of a traffic impact exaction. In this exercise, the two groups meet to determine the amount of the exaction. Manatee wants a low exaction in order to keep its profits high; Streets and Thoroughfares wants a high exaction in order to minimize future tax levies. Neither side knows too much about the interests of the other side.

Veritas and Pulchra are neighboring countries with a long history of friendly, mutually beneficial relations. Recently, however, relations between the two countries have been strained due to a catastrophic industrial accident wherein a concentrated form of the Class M chemical pesticide DS-30 leaked from a chemical plant in Veritas near the Pulchran border, adversely affecting a large tract of Pulchran farmland. To comply with Pulchran regulations on Class M pesticides, a significant amount of Pulchran wheat had to be destroyed because of excessive exposure to DS-30. Compensation and emergency relief to affected Pulchran farmers are central issues in that country's upcoming elections, but the Pulchran National Legislature is unwilling to appropriate any money without first getting some commitment from Veritas to pay for the damage it caused. There are a wide range of standards that the two countries could use to determine the amount and nature of compensation. Because of significant political concerns, negotiators from each country's Foreign Ministry have been asked to meet and settle this case quickly.

Chronology of Events for PON611.

Confidential instructions for Pulchra, for PON611, "DS-30".

Confidential instructions for Veritas, for PON611, "DS-30".

Nestle SA is the world's largest food company; its acquisition of RowntreePlc in 1988 was, at 2.5 billion British pounds, the largest ever foreign takeover of a British company. This case is the first in a three-part case series positioned before, during, and after the acquisition of Rowntree by Nestle and gives an inside look at a major international acquisition. Includes a note on the world chocolate industry and ends at the point when Nestle must decide whether to launch a hostile bid for Rowntree. Written from Nestle's point of view, it provides the opportunity to consider the benefit of various acquisition possibilities in the industry. Also raises questions as to why Rowntree became a takeover target as well as Nestle's policy of not making hostile takeovers.

The second of a three-part series on the 2.5 billion British pounds takeover of Rowntree by Nestle in 1988. Nestle has launched a hostile bid for Rowntree; this case ends at a breaking point in the process and places us in the middle of a critical negotiation session of the most senior executives of the two companies. Written from Nestle's point of view, it raises questions regarding the takeover price and the potential post-acquisition integration and organization structure.

The third of a three-part case series on the 2.5 billion British pounds takeover of Rowntree by Nestle in 1988. Nestle has acquired Rowntree; this final case raises issues about the post-acquisition integration of Rowntree and Nestle. This case setting is six months after the acquisition and is written from the point of view of the former senior Rowntree manager charged with integrating the Rowntree and Nestle chocolate businesses in Europe.

A condensed version of the Nestle-Rowntree (A) and (B) cases. Intended for use by instructors who wish to move directly to the acquisition negotiation. Ends at the same point in time as the existing (B) case. To reduce the length of the case, some data from the (A) case is eliminated.