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Sun Microsystems, Inc.--1987 (A)
An integrated sequence of three cases on the financing of a technical workstation manufacturer. This case focuses on Sun's competitive strategy which requires an inordinately high rate of growth (over 20% per quarter) and commensurate amounts of working capital. Students are asked to evaluate the importance of access to capital for the company and decide whether Sun should rely on the public equity markets or seek funding from a corporate partner. -
Sorrell Ridge: Slotting Allowances
Management is attempting to penetrate the California retail grocery market with the company's line of all-fruit preserves. Substantial up-front fees (slotting allowances) have been requested by the chains. Management must decide how to respond. -
PepsiCo and Madonna
In 1989, PepsiCo withdrew an advertising campaign featuring Madonna following complaints from religious groups regarding the content of a Madonna video. -
Workbench Pricing Strategy
An abridged version of Workbench, most notably the results of two customer surveys, given in their complete form in Workbench. Focuses on the pricing decision for a small contemporary furniture retailer. Should Workbench continue its highly promotional pricing policy or adopt Everyday Fair Pricing? -
Campbell Soup Co.
Describes the engineering effort at Campbell Soup Co. to develop a microwavable package and product for the growing convenience segment. Focuses on the role of engineering services in developing the production process, acquiring and installing equipment, and getting the process up and running. Students must address not only the status of the current project, but also the future steps that must be taken to complete that project successfully. Even more broadly, engineering's role as a reactive service organization vs. increasing demands that will require a proactive strategic advantage-based organization must also be addressed. Written from the perspective of the head of the engineering group at Campbell Soup Co. -
Nova Chemical Corp.
A diversified chemical company must decide whether to sell its basic chemicals division and expand the specialty chemicals division. -
Ingvar Kamprad and IKEA
Traces the development of a Swedish furniture retailer under the leadership of an innovative and unconventional entrepreneur whose approaches redefine the nature and structure of the industry. Traces IKEA's growth from a tiny mail order business to the world's largest furniture dealership. Describes the innovative strategic and organizational changes Kamprad made to achieve success. In particular, focuses on his unique vision and values and the way they have become institutionalized as IKEA's binding corporate culture. The trigger issue revolves around whether this vital "corporate glue" can survive massive expansion into the United States and the Eastern Bloc and Kamprad's replacement as CEO by a "professional manager." -
Cooper Pharmaceuticals, Inc.
Traces the 12-year career of a pharmaceutical salesperson, Bob Marsh, from recruitment to termination. Mr. Marsh has had an uneven career with Cooper Pharmaceuticals, Inc. (CPI) and, after a probationary period, is asked to resign. Following his termination, a number of Marsh's former customers complain vigorously, and CPI's vice president of sales is asked to investigate the matter and to decide what, if anything, to do about it. A rewritten version of an earlier case by D.A. Newton. -
Case of the Complaining Customer (HBR Case Study and Commentary)
Shortly after installing a new computer system designed to provide quick and accurate service, the president of Presto Cleaner received an angry letter from a customer whose laundry had been lost by the system. The case study looks at the questions: How much service does a company or store owe a customer? Is the customer always right? In 90304 and 90316, four authorities on customer service--Leonard A. Schlesinger, associate professor at the Harvard Business School; Dinah Nemeroff, corporate director of customer affairs at Citicorp/Citibank; Ron Zemke, president of Performance Research Associates; and Claus Moller, president of Time Management International--consider Presto Cleaner's customer complaint. -
Case of the Complaining Customer (HBR Case Study)
Shortly after installing a new computer system designed to provide quick and accurate service, the president of Presto Cleaner received an angry letter from a customer whose laundry had been lost by the system. The case study looks at the questions: How much service does a company or store owe a customer? Is the customer always right? In 90304 and 90316, four authorities on customer service--Leonard A. Schlesinger, associate professor at the Harvard Business School; Dinah Nemeroff, corporate director of customer affairs at Citicorp/Citibank; Ron Zemke, president of Performance Research Associates; and Claus Moller, president of Time Management International--consider Presto Cleaner's customer complaint. -
Case of the Complaining Customer (Commentary for HBR Case Study)
Shortly after installing a new computer system designed to provide quick and accurate service, the president of Presto Cleaner received an angry letter from a customer whose laundry had been lost by the system. The case study looks at the questions: How much service does a company or store owe a customer? Is the customer always right? In 90304 and 90316, four authorities on customer service--Leonard A. Schlesinger, associate professor at the Harvard Business School; Dinah Nemeroff, corporate director of customer affairs at Citicorp/Citibank; Ron Zemke, president of Performance Research Associates; and Claus Moller, president of Time Management International--consider Presto Cleaner's customer complaint. -
Black & Decker Corp.: Spacemaker Plus Coffeemaker (A)
A fire is reported in a Black & Decker Spacemaker Plus Coffeemaker. This newly introduced product is a "Key Introduction" for Black & Decker's Household Product Group (HPG). HPG's president has to decide whether the product should be recalled and, if so, how the recall should be implemented. Teaching objectives include: 1) managing a product recall, 2) ethical considerations in product safety and product recalls, and 3) the meaning of customer care. -
SouthPark IV
A young entrepreneur examines an 80,000 square foot office/warehouse building as a potential acquisition. The building is currently fully leased but all four leases will expire shortly. Due to changing market conditions, the protagonist has to look at current market conditions as well as trying to estimate future conditions in order to complete his analysis. The case is designed to explore basic issues in real estate valuations. The emphasis is on developing a simple set-up based on the project's cash flows and then examining how returns and values are affected by changing certain assumptions. -
Clark Material Handling Group-Overseas: Brazilian Product Strategy (A&B) (Condensed)
Assumes some knowledge of conjoint analysis. Permits analysis of basic results and dynamic market simulations in one class session. -
Bridgeton Industries: Automotive Component & Fabrication Plant
Bridgeton Industries was experiencing reduced sales. To become more competitive it introduced a classification procedure for products based upon their productivity and other factors. Products were classified into three groups: world class, potentially world class, and non-world class. The firm outsources the non-world class products. This outsourcing causes the costs on the remaining products to increase because some costs associated with the outsourced products did not go away. These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. -
Philip Morris Companies' "Bill of Rights" Sponsorship Program
Describes the new policy of the National Archives of inviting corporate cosponsorship of historic exhibits and commemorations. In November 1989, Philip Morris Companies (PM) became the first cosponsor of the bicentennial commemoration of the Bill of Rights, and used the announcement of the cosponsorship as the foundation of a major corporate identity and image campaign in mass media. Also describes other current PM initiatives to sustain and improve its corporate image. Students are encouraged to think through the potential benefits and risks of PM's corporate campaigns, and then to examine the dimensions of this particular campaign. -
Lowe's
Lowe's chain of 306 stores was anticipating fierce competition from their major market rival, Home Depot. As they reformulated the size of their new prototype stores and the mix of their merchandise, what would be the ultimate format? What impact would it have on their advertising strategy? How could they retain their contractor business which had been the mainstay of their operation since the 1950s. In addition, how should they emphasize in their advertising: wide selection, good service, and everyday attractive prices. -
Population Services International: The Social Marketing Project in Bangladesh (Abridged)
Population Services International (PSI) was a not-for-profit agency founded to disseminate family planning information and to market birth control products, primarily in less developed countries seeking to curb their population explosions. In 1976, PSI concluded an agreement with the government of Bangladesh to conduct a social marketing program, with the objective of using modern marketing techniques to sell subsidized contraceptives through commercial outlets. Seven years later, three PSI managers were meeting at PSI's Washington, D.C. headquarters to discuss 1984-86 marketing strategy for two products: Raja condoms and Maya birth control pills. Of particular concern was the fact that the marketing approach that had proven extremely successful for Raja was yielding poor sales results for Maya. The PSI managers needed to devise an action plan for improving Maya sales. -
Frost, Inc. (A)
In many ways Frost is an archetypal, small, dying manufacturing firm. With profits gone in a no-growth business and unable to diversify, Charles Frost bets the company on computer numerically controlled (CNC) equipment to replace the existing 1940s era screw machines. The case is designed to allow discussion of: 1) why they can't diversify? (they have no unique skills and are unable as an organization to change from the existing processes which focus on the current product), 2) whether CNC can solve the problem and whether they can afford it, and 3) how each functional area will have to change if Frost is to evolve into a "capability house." -
Oakland A's: Baseball's Great Transformation
The Oakland A's baseball team underwent a major turnaround during the 1980s, both on the field and in the business office. One of the most significant improvements came in the area of customer service. The A's management believed that if they took care of their fans, they would remain loyal through winning and losing seasons.