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The Diaper War: Kimberly-Clark Versus Proctor & Gamble
Kimberly-Clark's and Procter & Gamble (P&G) are fierce competitors in the diaper industry. The competitive struggle involves a broad range of issues including: rapid product development, international threats and opportunities, diversification options and public pressure over environmental concerns. In particular, Kimberly-Clark must decide on a response to P&G's most recent product introduction. This case provides an excellent in depth view at the dynamic of competition. -
Transalta Utilities Corp.
As they approached their strategic session, TransAlta's senior executives confronted a changing business environment. The company's goal had always been to provide reliable electric service to their customers at the lowest possible cost. Now a new variable was entering the picture: the environment and the question of sustainable development. The release of the report of the World Commission on Environment and Development, chaired by Harlem Brundtland, gave credibility to the concept of sustainable development and has elevated environmental issues on the international agenda. How would this impact the company's business strategy and competitive advantage? -
Merck & Co., Inc.: Addressing Third-World Needs (A)
Researchers at Merck & Co. believe that a drug they had developed for animals might be an effective treatment for human river blindness, a debilitating illness that affects hundreds of thousands of poor people in the Third World. The process of development and testing, however, will be enormously costly. Should the company devote critical resources to developing the drug, knowing that, even if it were medically successful, it would yield little financial return? The case presents background on economic and scientific constraints that shape the pharmaceutical industry. It provides a framework for discussing ethical aspects of product innovation and the risks and benefits of investments in research. It may be used in Strategic Management, Business and Society, and Ethics courses. -
Crown Equipment Corp.: Design Services Strategy
Chronicles three decades of a forklift truck company's industrial design strategy. Having grown rapidly from a small, pioneering niche-company to a leading, full-range, global producer, Crown is reevaluating its design services strategy. Discusses the company's long-term relationship with its design consultants and the pros and cons of establishing an in-house design department at this point in its history. Students need to decide whether Crown should opt for in-house design services, stay with its former design consultants, or look for new consultants. -
THE PARKING FACILITY VENTURE - General Instructions
Three-party scoreable negotiation among three firms regarding the joint construction of an off-street parking facility. Three firms (Arundel Products, Bartel Publishing and Chiptech) are building new facilities in a recently developed part of town. The city requires each of them to construct off-street parking for their employees. The firms have jointly hired financial analysts, architects and other specialists to describe and price their options. The firms recognize that if they pool their capital and operating resources, they can build one parking garage to serve all employees. However, if all three firms cannot come to an agreement, various joint ventures between any two of the firms would still save some money for the two participants, though not as much. The climate for coalitions are unstable because the goal of each company is to maximize its own interests and financial well-being. -
THE TENDLEY CONTRACT - Confidential Instructions for the Schools
Two-party contract negotiation between a computer consultant and a school district representative at an apparent impasse over different expectations over cost of services. A school district and a computer consultant are negotiating a potential contract for repair of the school district's failed computer network. Both parties are eager to work with each other: the consultant's qualifications appear perfect for the school district's needs, and the school district would help the consultant connect with additional governmental clients. After a fair amount of negotiation, however, the parties find themselves at an impasse: the consultant's bid (which the consultant feels is very low) is considerably higher than the school's budget for this project. The consultant and a school representative have agreed to meet one last time in an effort to salvage the deal. This simulation happens to involve a consulting contract, but the negotiation lessons are generic. The exercise can be used simply to illustrate the importance of the creative, option-generating aspect of negotiation. More importantly, it can also be used as the principal vehicle for presenting integrative theory more broadly. -
THE TENDLEY CONTRACT - Confidential Information for the Consultant
Two-party contract negotiation between a computer consultant and a school district representative at an apparent impasse over different expectations over cost of services. A school district and a computer consultant are negotiating a potential contract for repair of the school district's failed computer network. Both parties are eager to work with each other: the consultant's qualifications appear perfect for the school district's needs, and the school district would help the consultant connect with additional governmental clients. After a fair amount of negotiation, however, the parties find themselves at an impasse: the consultant's bid (which the consultant feels is very low) is considerably higher than the school's budget for this project. The consultant and a school representative have agreed to meet one last time in an effort to salvage the deal. This simulation happens to involve a consulting contract, but the negotiation lessons are generic. The exercise can be used simply to illustrate the importance of the creative, option-generating aspect of negotiation. More importantly, it can also be used as the principal vehicle for presenting integrative theory more broadly. -
Win As Much As You Can - General Instructions
Participants sole objective is to maximize their own points with complete indifference to the other participants. Participants are to play either an X or a Y and, depending on other participants' choices, a payoff is awarded each round. Only before rounds 5, 8 and 10 are players allowed to confer with each other. MECHANICS: This exercise is played in ten quick rounds. Players are grouped into fours. Explanation of the exercise should take no more than 5 minutes. The ten rounds should take about 15 minutes, while debriefing can take from 30 to 45 minutes. -
Three-Party Coalition
Three independent organizations, "A," "B" and "C," have sent representatives to a three-way negotiation. The representatives have learned that there are benefits to working together. If all three groups reach an agreement, benefits totaling 121 points will be split three ways (to be determined by the participants). If only two of the organizations reach an agreement, the total benefits to be split will be less than 121 (varying, depending on which two organizations join together) and the third party will be left with nothing. -
Privatizing the Albany County Airport
An antiquated airport jeopardizes a region's economic health but the county of Albany, New York, operator of the airport, lacks funds to undertake much-needed capital improvements. In this context, the county executive seriously examines privatization-selling the airport off to a private developer with a background in airport management. This case is designed to permit a full discussion of the potential merits and drawbacks of privatization of such a large public facility. It raises such issues as monopoly power and ease of access to capital. The decision to permit the Albany privatization is ultimately made by the Federal Aviation Administration, thus allowing the case to raise national as well as local issues. HKS Case Number 1024.0 -
Please be Patient: The Seattle Solid Waste Utility Meets the Press
When the Seattle Solid Waste Utility, the department responsible for trash pick-up and disposal, moved during 1988-90 to introduce curbside recycling and other dramatic changes in garbage collection, director Diana Gale believed presentation of the utility's plans to the press would be crucial to their prospects for public acceptance. This case recounts the elaborate but successful strategies Gale employed, ranging from training sessions for utility employees run by former television news anchors, to the advent of the utility's own weekly newsletter to track problems and changes in the new garbage program. HKS Case Number 1058.0 -
Changing with the Times: South African Police in the Post-Apartheid Era
In July 1991, South African president F.W. de Klerk announced the appointment of Hermanus Kriel to the cabinet post of minister of law and order. As the official responsible for oversight of the controversial national police force, the South African Police (SAP), Kriel would perhaps have the hardest job in a rapidly changing South Africa: a job made all the more daunting by recent revelations of a police role in fanning the flames of factional strife among blacks. The growing scandal had reinforced the SAP's reputation among black South Africans as one of the most hated symbols of white rule. For over four decades, the South African Police had been entrusted with enforcing the country's notorious and iniquitous system of apartheid--a task it had performed with what many regarded as excessive zeal and brutality. All this had been done by the SAP in the name of the apartheid system, which it was sworn to uphold. Yet as the 1980s drew to a close, the underpinnings of that system began to change dramatically and SAP's mission was no longer in force. This case details the changes that took place within SAP during the post-apartheid period. It should be paired with HKS830 (Part B). HKS Case Number 1095.0. -
Steelway Building Systems
Steelway Building Systems manufactures steel buildings. The owner and president, faces tougher American competition and realizes the need for better technology. He has three options for improving the efficiency and effectiveness of his flange and connector plate production process. He must decide which option is best and implement the solution soon so he does not lose ground to encroaching U.S. competition in these tough economic times. -
Allen-Bradley's ICCG: Repositioning for the 1990s
Allen-Bradley's Industrial Computer and Communication Group (ICCG) underwent a period of rapid transformation in the 1980s, instituting a wide array of innovations from product development to information systems. In 1990 the Ohio-based group announced a major reorganization of its business and began carrying out a sweeping program of cultural change. The case requires students to develop an overall perspective on the process of organizational change and to think critically about the kind of challenges that lie ahead for ICCG. -
Anheuser-Busch and Campbell Taggart
In 1984, the SEC accused Paul Thayer and eight others of insider trading. Some of Thayer's inside information came from his position on the board of Anheuser-Busch, where he had learned about Busch's 1982 merger with Campbell Taggart before the merger was publicly announced. The case deals with Busch's reaction after learning about the SEC suit. In considering possible actions by Busch, students may explore the workings of capital markets and attempt to estimate the amount of financial damage done to Busch by the insider trading. Other issues involve ethics, the allocation of management resources on costly legal battles, and the differing objectives of board members and managers. -
Australian Paper Manufacturers (A)
Describes a company which has broken an unwritten cordial agreement amongst the three Australian paper manufacturers to split the domestic market three ways by market segment. The company invades another's "territory" with advanced technology, quality, and, importantly, by using the other company's poor environmental record to protect itself against retaliation. The defender finds itself unable to respond by adding capacity as public pressure denies it the ability to add capacity and upgrade the technology. Having won a large share of the market, and having successfully introduced a new recycled paper product, the invader is now considering the financial, strategic, and ethical issues of further expansion. -
Techsonic Industries, Inc.: Humminbird - New Products
After several new product failures, the company began using customer input to help develop new products. In 1989, the fishing electronics industry is experiencing a downturn, and the company's sales and profits are slipping. The company, which has one product line (depth sounders) and a strong brand (Humminbird), has conducted substantial market research on three new products. Of these, one is an extension of the existing line, while the other two would be new product lines for the company. Top management is deciding which one or more of the three new products it should proceed with. -
McDonald's and the Environment (A)
McDonald's decides to withdraw its polystyrene plastic packaging for sandwiches and hamburgers after years of defending itself against environmental critics. The decision occurs in the midst of a six-month Joint Task Force study, with the nonprofit Environmental Defense Fund (EDF), of McDonald's waste-management practices. The company has to decide how to position its about-face announcement and its relationship with EDF. -
Apple Computer (A): Industry, Strategy, and Organization
Explores how the human resource (HR) function at Apple Computer can best support the company's strategy. Provides an overview of the company's history, industry, competitive position, strategy, and organization. Written at a time when the company faces a very compelling threat to their business, and when morale within the company is very low. The purpose is to identify the key organizational issues which the company must address, and to begin to think about how the HR function can help it address them. -
Final Voyage of the Challenger
Provides a summary of technical and organizational details that led to the decision to launch the Challenger Space Shuttle, and to the ensuing accident. Details of design and testing milestones of the Space Shuttle, with a focus on the Solid Rocket Booster, offer opportunities for project management and organizational analysis. NASA's risk management structure and its use for the Space Shuttle program exposes students to issues of risk associated with the use of technology. Principles of engineering versus managerial decision making, the role of professional knowledge, and issues related to data representation, and qualitative versus quantitative analysis are addressed. Some issues of professional ethics and individual responsibilities, as related to complex decision making in a technology intensive environment are presented in a context of a crisis situation. The analysis of the case should include assessment of project management, and ideas about organizational changes to avoid recurrence.