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Highlights issues related to the impact of the Internet on industry and technology convergence. RealNetworks has succeeded in establishing its position as a market leader (over 90% market share) in the Internet streaming media segment. Can they maintain this position now that Microsoft has entered the market?

This human services contracting case describes an innovative system launched by the Oklahoma Department of Rehabilitative Services when faced with what it viewed as skyrocketing costs and ineffectual assistance for citizens with severe disabilities. Under fiscal pressure, the Department decided on a drastic change in its historic approach to contracting--which had reimbursed service providers for their billable hours. The new, "milestones" approach would reward vendors, instead, for specific results, on the road toward employment for the disabled. The case describes the virtues of the milestones system, as seen by the state; the fears of service providers and advocates that the new incentive system would cause a deterioration in the nature of assistance and therapy; and the early results of the program. Supported by a grant from Innovations in American Government Program; written for the Hauser Center for Nonprofit Institutions. HKS Case Number 1477.0

This case may be taught singly or used as a merger-negotiation exercise with "Daimler-Benz A. G.: Negotiations between Daimler and Chrysler" (UV0110).Set in February 1998, the case places students in the position of negotiators for the company; their task is to value both firms, assess the potential earnings dilution of a combination, and negotiate a detailed agreement with their counterpart. The case can be used to explore such interesting negotiation issues as determination of a share-exchange ratio, treatment of major stockholders, and structuring a deal. Also, the case and exercise can be used to spark a discussion of acquisition in comparison with strategic alliance, or other less formal models of combination.

This case may be taught singly or used as a merger-negotiation exercise with "Chrysler Corporation: Negotiations between Daimler and Chrysler" (UV0085). Set in February 1998, the case places students in the position of negotiators for the company; their task is to value both firms, assess the potential earnings dilution of a combination, and negotiate a detailed agreement with their counterpart. The case can be used to explore such interesting negotiation issues as determination of a share-exchange ratio, treatment of major stockholders, and structuring a deal. Also, the case and exercise can be used to spark a discussion of acquisition in comparison with strategic alliance, or other less formal models of combination.

This nonprofit strategic planning case tells the story of the Phoenix-based National Family Legal Foundation, an anti-pornography advocacy group which, after attaining national influence during the 1980s, finds itself, in 1995, nearly bankrupt and without a clear mission. When Charles Dunlap, a local real estate developer, agrees to join the board of directors, he unknowingly takes the first step toward a central role in deciding the fate of NFLF. With little left to work with but a skeleton staff and a small group of committed board members, Dunlap, thrust into a central role, must decide whether there is any way the organization can be effective, given its now-limited resources, or whether the time has come to close up shop.

Reviews Cisco System's approach to implementing Oracle's Enterprise Resource Planning (ERP) software product. This case chronologically reviews the diverse, critical success factors and obstacles facing Cisco during its implementation. Cisco faced the need for information systems replacement based on its significant growth potential and its reliance on failing legacy systems. The discussion focuses on where management was particularly savvy in contrast to where it was the beneficiary of good fortune.

The basic decision scenario is whether to outsource an internal publishing department. What is initially presented as a comparison of a department's annual operating costs versus an outside contract quote gets reformed as a four-year cash flow investment decision.

Palm Computing appears to be the first to have gotten it "right" in the PDA (personal digital assistant) market. Palm Computing has designed a radically new product which will appeal to certain market segments. However, it is unclear how Palm Computing will fare against industry giant, Microsoft.

STRIVE provides employment training and placement to chronically unemployed inner-city minority youth and young adults. This case describes STRIVE's creation as a community-based, single-site nonprofit in Harlem in 1984; the development of its service model (short, intensive "tough love" job readiness training, quick placement, and long-term follow-up); and its early expansion via a group of social service affiliates in New York City and the creation of new independent STRIVEs in four other U.S. cities. The decision point is June 1997, when the advent of welfare reform and highly favorable coverage on "60 Minutes" led to an explosion of interest in and demands on the organization.

The general manager for U.S.-based Sealed Air Corp.'s Taiwan subsidiary must decide whether he's hired the right person to bridge the gap between Sealed Air's corporate culture and Taiwan's business culture. This case details Bob Kayser's experiences in trying to infuse the Sealed Air culture into the Taiwan operation, including approaches to training, compensation, and motivation.

Petrozuata is a proposed $2.5 billion oil-field development project in Venezuela. The case is set in 1997 as the project sponsors, Conoco and PDVSA (Venezuela's national oil company), are planning to meet with various development agencies and rating agencies regarding the proposed financial structure. The sponsors hope to raise a portion of the $1.5 billion debt in the capital markets, which will require an investment-grade rating. The key questions are whether the project will achieve an investment-grade rating and, if not, how to finance the project. Describes what turned out to be an extremely well-crafted financial transaction, one that was named "Deal of the Year" in 1997 by virtually every journal covering project finance.

A major threat to the existence of the CAW is the trend towards outsourcing the production of components to non-unionized, hence lower-cost manufacturers, by the Big Three Automakers (GM, Ford and Chrysler). This trend is costing Canadian Automobile Workers Union (CAW) members their jobs. The typical retaliation is CAW strikes, and negotiating job security agreements. This short-term strategy in fact encourages the move to offshore production in order to remain competitive. The purpose of the case is to discuss issues concerning the evolution of the Canadian economy from one which is manufacturing-based to one based on services, and to try to find answers to questions like: Can the CAW survive? Will the Big Three be producing cars in Canada in the 21st Century? Where else would they go? What are the concerns in moving production off-shore? What kind of strategy should the CAW follow to ensure its survival? How does Canadian automobile production relate to the global industry? How will governments impact the industry?

A buyer for Prism Canada, Inc. wondered how to outsource the company's inefficient sheet metal operation. To satisfy current and potential customers' requests to lower costs for up-coming contract bids, Donna had to decide quickly to whom to outsource and what criteria to use for choosing a supplier. The primary teaching objective is to take students through the supplier selection process, framed in an outsourcing context. Selection criteria, such as price, quality, and reputation and their relative importance will be examined. Other objectives include exploring the issues of implementing an outsourcing decision, keeping in mind employee concerns and union reactions, as well as impact on production operations. The case can be used at the beginning of a principals of buying course as an introduction to source selection.

After establishing a small but profitable skiwear business, an entrepreneur decides to sell a minority stake in the firm to outside investors. His goal is to acquire the capital needed to grow the business, even though this will entail a substantial transformation of the firm's management and financial structure. This case examines the resulting private equity transaction from both the company's point of view and that of outside investment.

The French mineral water company, Perrier SA, has recently undergone financial and stock price difficulties, resulting from its famous benzene scandal. This leads to an opportunistic bid from the owners of Fiat SpA, the Agnellis of Italy, The Agnelli bid is actually effected indirectly, through two French companies with whom they are allied: Exor and Saint Louis. The bid is contested by the Swiss-based food giant Nestle and its French ally, BSN. Although attempting to outflank the Agnelli camp, Nestlé's chances of success seem slim, since the Angellis and their allies' control nearly 50% of Perrier.

The Walnut Group's investigation of the RBS Group, a young software company is described. The RBS business plan is also included.

Sun Microsystems is a pioneer in networking computing. Sun's servers maintain a large market share and are considered highly scaleable. The case describes the n-tier architecture for building and managing large networks in which thousands of workers and customers are connected to enterprise servers.

Becton Dickinson's Global One-Company Operations Group must decide on the company's global policy on gifts, gratuities, and business entertainment. A central issue is whether the policy should be established centrally and made uniform worldwide or whether it should be decided locally, depending on local circumstances and practices. The case contains numerous examples of troubling situations drawn from different regions of the world, as well as background information on growing anticorruption efforts worldwide.

Costco Companies, one of the major players in the wholesale club industry, has developed a new class of membership that offers discounted services--auto, health, and home insurance, business credit card processing, real estate services--in exchange for a higher annual fee ($100 vs. $40). The case poses two questions: 1) how should the new membership be marketed, to whom, and how much should be spent on the effort? and 2) what are the potential risks and benefits for Costco, which generated $22 billion in 1997 selling products in bulk, in offering services? Which question is emphasized depends on whether the case is taught in a marketing or a retailing course.

The Honeywell Technology Center (HTC) is the central R&D organization for Honeywell, Inc. almost 40% of Honeywell sales comes from outside the U.S. and this figure is expected to reach 45% or more by 2000. However, HTC, based in Minneapolis, is a long distance from international markets. Within HTC there is a growing consensus that HTC has to become more international to support Honeywell's growth opportunities. But, HTC management is far from consensus on how to internationalize R&D. Can the HTC culture be replicated outside the United States? How quickly should HTC move? Who will manage new R&D organizations? How will these organizations be funded? Should international R&D sites be centers of excellence for specific technologies, or should they be application centers using technology developed in Minneapolis, or both?