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Stonyfield Farm: September 1994
Samuel Kaymen and Gary Hirshberg founded Stonyfield Farm in 1983, in part to demonstrate that "environmentally and socially responsible businesses can also be profitable." In 1994, the company has grown to over $21 million in revenues, derived mainly from refrigerated and frozen yogurt. It has expanded beyond its core New England base to natural food stores nationwide and to supermarkets in 20 states. All its production, however, is concentrated in its New Hampshire plant, which has limited the company's growth on the West Coast. Now Stonyfield has to decide whether to build a plant in California. It has also entered a joint venture agreement to make ice cream in Russia. It faces competitive challenges in its traditional markets as well. -
AB Volvo/Regie Nationale Des Usines Renault S.A.
Students evaluate the proposed terms of the Renault-Volvo merger, examining the shareholders' perspective. The case describes the unusual structure of the strategic alliance that predated the merger proposal, the motives for merging, and the expected financial synergies. This case may be taught singly or in combination with the epilogue case, "Volvo/Renault: The Contest for Shareholder Approval". -
How Do You Grow a Premium Brand? (HBR Case Study and Commentary)
Gordon Johnston has taken his elite health-club concept from the germ of an idea to the pinnacle of success. But the most difficult decision in managing his company lies ahead. Gordon must figure out how to lead Transition fitness clubs into the next phase. In each of the 15 years since Transition's flagship club opened in New York City, its sales have doubled. The company boasts fitness trainers handpicked by Olympic medalists, health-conscious cuisine by in-house chefs, huge facilities in prime locations, and reciprocal memberships at other Transition clubs worldwide. But recently, the company's margins have been shrinking. An aging membership could mean problems for future expansion. And new, upscale competitors are challenging Transition's flat-rate pricing policy. Will Gordon have to run fast to stay in one place? Should he change Transition's pricing policy? In 95205 and 95205Z, William Campbell, Robert J. Dolan, Anita K. Hersh, Peter H. Farquhar, David Aaker, and Mary Shelman offer advice on this fictional case study. -
How Do You Grow a Premium Brand? (HBR Case Study)
Gordon Johnston has taken his elite health-club concept from the germ of an idea to the pinnacle of success. But the most difficult decision in managing his company lies ahead. Gordon must figure out how to lead Transition fitness clubs into the next phase. In each of the 15 years since Transition's flagship club opened in New York City, its sales have doubled. The company boasts fitness trainers handpicked by Olympic medalists, health-conscious cuisine by in-house chefs, huge facilities in prime locations, and reciprocal memberships at other Transition clubs worldwide. But recently, the company's margins have been shrinking. An aging membership could mean problems for future expansion. And new, upscale competitors are challenging Transition's flat-rate pricing policy. Will Gordon have to run fast to stay in one place? Should he change Transition's pricing policy? In 95205 and 95205Z, commentators William Campbell, Robert J. Dolan, Anita K. Hersh, Peter H. Farquhar, David Aaker, and Mary Shelman offer advice on this fictional case study. -
How Do You Grow a Premium Brand? (Commentary for HBR Case Study)
Gordon Johnston has taken his elite health-club concept from the germ of an idea to the pinnacle of success. But the most difficult decision in managing his company lies ahead. Gordon must figure out how to lead Transition fitness clubs into the next phase. In each of the 15 years since Transition's flagship club opened in New York City, its sales have doubled. The company boasts fitness trainers handpicked by Olympic medalists, health-conscious cuisine by in-house chefs, huge facilities in prime locations, and reciprocal memberships at other Transition clubs worldwide. But recently, the company's margins have been shrinking. An aging membership could mean problems for future expansion. And new, upscale competitors are challenging Transition's flat-rate pricing policy. Will Gordon have to run fast to stay in one place? Should he change Transition's pricing policy? In 95205 and 95205Z, commentators William Campbell, Robert J. Dolan, Anita K. Hersh, Peter H. Farquhar, David Aaker, and Mary Shelman offer advice on this fictional case study. -
Rosenbluth International Mexico (Abridged)
Enrique Felgueres, Jr., general manager of Rosenbluth International's (RI) Mexican operations, had recently been given the task of transforming Bancomer Travel Services, a small Mexican-owned agency, into a branch office of RI. The Rosenbluth service concept has contributed to RI's success in the U.S. and Canadian business travel industry, but the U.S./Canadian success does not imply that the Rosenbluth service concept can be taken carte blanche into Mexico. This case challenges students to consider if and how to adapt the service concept for the Mexican market, the Mexican business traveler, and for travel in Mexico. -
Promus Companies: Harrah's Casinos
Provides an overview of the U.S. gambling industry and the rapid expansion of gambling beyond Nevada and New Jersey since 1988. Focuses on Harrah's, a traditional top-tier casino company, which was the first to aggressively expand into emerging gaming markets and that needs to consider how best to sustain its competitive position. -
MasterCard and World Championship Soccer
The MasterCard vice president for global promotions and other MasterCard executives are appraising the results of MasterCard's worldwide sponsorship of the 1994 World Cup soccer championship. They must decide whether to commit to sponsor the 1998 championship to be held in France. -
India in the 1990s
Describes the efforts of Indian Prime Minister P.V. Narasimha Rao to deregulate and open up the Indian economy in the early 1990s. Focuses on the difficulties he encountered, reflected in the poor showing of the ruling Congress Party in state elections in December 1994, and raises the questions: Why is economic change so difficult in India? What are the obstacles to Rao's reforms? What is the likelihood that he will succeed? Contains a brief history of India's economic, political, and social development since it achieved independence in 1947. -
Chemical Bank: Implementing the Balanced Scorecard
The retail bank division of Chemical Bank faces declining margins and increased competition in its credit and deposit gathering and processing business. It wishes to implement a new strategy to become a preferred financial service provider to target customer groups. The division adapts the balanced scorecard to clarify and communicate the new strategy and to identify the key drivers for strategic success. The case describes the development of strategic objectives and measures for four perspectives: financial, customer, internal, and learning growth, and the process for implementing the new measurement and management system. -
Antmobel (A)
In the midst of a sales slump brought on by a recession in Spain, Antmobel's managers are presented with an opportunity to sell a substantial quantity of furniture in Uzbekistan. Management must decide whether the order fits with the company's strategy, capabilities, and internationalization plans. -
Catalan Leather Industry
Antoni Subira, the Minister of Industry in Catalonia, Spain, must decide whether to impose strict European Union environmental guidelines on the local leather industry. Failure to impose new regulations would result in substantial fines. Imposition, on the other hand, could lead to a further decline in an industry already buffeted by foreign competition. -
Russia--1994
Describes Russia's transition from a centrally planned economy under Communist rule to an increasingly market-oriented economy under a more democratic political regime. Can be used to discuss the complementarity of elements of an economic strategy, and the optimal sequencing of political and economic reforms. The first section provides a brief synopsis of Gorbachev's reform strategy and the political and economic chaos following from partial implementation of relatively weak economic and political reforms. The second section describes Yeltsin's radical reform strategy of 1992 to simultaneously achieve macroeconomic stabilization, price reform and privatization. Attention is drawn to the partial implementation of this program and the political and economic obstacles hindering progress. Concludes by asking whether Yeltsin's attempts to consolidate power through new elections and constitutional reform will be successful. -
The Bourland Companies
Michael Bourland, the president of the Bourland Companies, needs to refinance two properties, an office building in southern New Hampshire and a retail property in Massachusetts. He is considering three alternatives: a renewal of a bank mini-perm, a 15-year mortgage from an insurance company, and a new securitized loan offered by the Bank of Boston. The case focuses on issues related to mortgage securitization and how it stacks up against other products in the market. Also raises issues about family real estate businesses. -
EG&G Rotron Division
Rotron has recently entered the commercial motor market, after many years of servicing government military contracts. Faced with fierce commercial competition, Rotron has attacked its costs and reduced its delivery times and its plants. A new crisis, however, is causing it to rethink its just-in-time production system, and the plant manager must decide whether to re-introduce inventory for key production. -
Microsoft in the People's Republic of China--1993
Explores some of the economic and political tradeoffs that need to be negotiated by a firm seeking to influence industry structure. The setting is the nascent personal computer software industry in the People's Republic of China (PRC) in 1993. Microsoft has to localize its software products for use in the PRC. This localization can either be done in-house by Microsoft, or can be contracted to the local software vendors. Explores the costs and benefits of full integration and arm's-length market transaction. Also discusses the "holdup" problem that arises when assets specific to a particular partnership are created. -
Siemens Rolm Communications, Inc.: Integrated Logistics Core Process Redesign (ILCPR)
In the late 1990s, Rolm realized significant losses and needed to significantly reduce its costs and redesign its logistics process. -
Copeland Corporation/Bain & Company: The Scroll Investment Decision
In this case, Copeland executives have hired Bain & Company, a management-consulting firm, to make recommendations about a capital-appropriations request. A teaching note is available to registered faculty, along with a video supplement to enhance student learning. -
Power Play (A): Nintendo in 8-bit Video Games
The home video-game industry began in 1972 with the founding of Atari. After riding a dramatic boom and bust in the early 1980s, most players left the business. Nintendo of Japan then rebuilt the industry--establishing a commanding worldwide position by the end of the decade. By 1990, Nintendo game systems could be found in one out of every three households--in both Japan and the United States. The company's stock market value exceeded that of Sony or Nissan. The case describes the steps Nintendo took to achieve this success. Also covers the U.S. antitrust investigation of Nintendo. -
James Cranfield
Describes the attitudes, feelings, and perceptions of the manager who will conduct the performance appraisal interview. A rewritten version of an earlier case.