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Personal Rapid Transport at Vectus, Ltd.
Personal Rapid Transport (PRT) vehicles - often called "driverless taxis" - sought to combine the best characteristics of cars, taxis, and trains, while adding features unavailable in any existing transportation system. Like cars and taxis, PRT vehicles carried small groups - often just a single passenger - with no need to wait for a shared vehicle to arrive or for others to board. Yet PRT followed train systems in using an exclusive right of way that avoided delays from other traffic. Where would such systems be most useful? Could system designers successfully compete with well-established networks of trains, buses, cars, and roads? -
Marble Slab Creamery: A Grand Occasion
The franchise owner of a Marble Slab Creamery (Marble Slab) in Ontario must submit a grand opening proposal to franchise headquarters in Calgary, Alberta, in two weeks' time. This proposal is to include her chosen target market, the franchise location and decisions made regarding product variety and pricing. The franchise owner also has to decide how best to allocate her $10,000 promotional budget to gain exposure and bring customers into her store. -
Job Crafting at Burt's Bees
Job designs are typically created by managers for employees. But employees are often motivated to make changes to their formal job designs to customize a more desirable experience for themselves at work. The concept of "job crafting" captures these changes. This case describes how four employees at Burt's Bees Inc. crafted their formal job designs to better align their jobs with their individual motives and strengths. The stories illustrate several ways in which employees may go about crafting their jobs and how individuals and organizations may benefit from job crafting. -
CreativeCalligraphyInvitations.com: A Production Process Analysis Exercise
You and your roommate are launching a calligraphy business out of your two-bedroom apartment. Will this business be profitable? That is the question students evaluate with "Creative Calligraphy Invitations (CCI)." CCI creates one-of-a-kind handwritten invitations, which are in high demand for weddings, holidays, parties, and corporate functions. Calligraphy requires special talent, but the company's business operations are fairly simple. Students analyze CCI's business operations to identify the bottleneck-the step that is the slowest or has the least capacity. -
Storm Gudrun: Managing a Crisis
A brutal winter storm hits the Baltic Sea region, felling 200 million trees and leaving forest owners and lumber industry competitors devastated. The chairman and majority owner of a large private timber mill in Sweden needs an action plan to pull through the disaster quickly-before the felled timber rots. Will they be able to rescue the timber? How shall his business react to the sudden oversupply? How will the exponentially increased supply be absorbed? What will the short- and long-term effects of the storm be on the timber markets? This case was developed for use in a first-year marketing class on balancing needs, interests, and responsibilities. The material would also work in a class on crisis management. -
GTC Biotherapeutics: Developing Medicines in the Milk of Goats
GTC is the first company in the animal world to receive FDA approval of a transgenic pharmaceutical. What are the implications for other firms in plants and animals and their opportunities to produce new medicines in an economical and safe fashion? -
PureCircle
In December 2008, the U.S. Food and Drug Administration (FDA determined that high-purity Rebaudioside A (Reb A), a natural and calorie-free product that a young company named PureCircie manufactured from the Stevia plant, could be used in beverages, foods, and as a table top sweetener in the U.S.-the largest market for sugar and sweeteners in the world. While the FDA's determination was the breakthrough the company had hoped for, much remained uncertain-most obvious would consumers accept Reb A as a substitute for sugar or the myriad sweeteners already established in the market place? The potential seemed high given consumers' growing concerns about obesity and diabetes. Yet, nothing was certain. What worried the company's leadership was the prospect of Reb A taking off-that is, being widely accepted by consumers and used by food and beverage (F&B) companies in mainstream mass-market products such as carbonated soft drinks-and the timing of the take off. If Reb A did go mainstream PureCircle would need to at least double its capacity to secure its position in the industry. If leadership overbuilt the company's capacity and Rebaudioside A ultimately remained a niche product they would severely jeopardize PureCircle's viability. Yet if leadership waited too long, the opportunity to create substantial wealth for the company's shareholders would be lost. As it was the company's founder and CEO had already gambled by investing in enough production capacity for acceptance in the niche beverage market -- before a market for Reb A had been established. -
The Ciputra Group: Shaping the City in Asia
The Ciputra Group was set up by Mr. Ciputra in the 1980s, after a long entrepreneurial career with a vision to provide a business for his children. The case describes the development of this group, which evolved into a prominent and innovative player in the Indonesian property sector. Under Ciputra's guidance, the company became known for its satellite cities, in which the group combined technical, construction and urban planning qualities, along with the ability to understand and manoeuvre in the difficult Indonesian environment. The Ciputra Group moved into areas where the government was weak (public facilities, roads, sewerage, city management, security, etc) and as such became an "institutional entrepreneur" that shaped Indonesia's cities. This model was later exported to other emerging markets. The case ends with the company facing two sets of interlinked problems. One set is strategic, as the company's business model has proven to be vulnerable, and it is undergoing various changes. The question is what strategic option the company should choose. The second set of issues concerns the leadership and corporate structure of the group. Since Ciputra is in his late 70s, a generational change in leadership is imminent, and students are asked to reflect on the most appropriate path towards further development of the business from one led by a charismatic entrepreneur towards a professional family business. The two sets of issues are interlinked with each other and pose opportunities and constraints. -
The HLB Turnaround
Ford Pearson has recently taken over as CEO of HLB, a Chicago-based product design and development firm (and once one of the largest in the business), to help turn it around after a series of crises that had seriously threatened its survival. Pearson has personally invested in the firm, re-organized many aspects of its operations and has hired a younger executive and turnaround expert, Andrew Macey, as COO to help him in the effort. Pearson and Macey have several options to consider: Should HLB raise $1 million in debt financing and focus on a turnaround or should it approach a private equity investor and raise an additional $4 million and pursue a more aggressive productivity improvement plus growth strategy? While they consider these options in September 2008, the credit markets are about to clamp shut as a global financial crisis is around the corner. -
Global Sustainability: The Case for Collaboration
The Kyoto Protocol established targets for reductions in greenhouse gas concentrations by establishing a mechanism of restrictions for the rich countries and incentives for developing countries to cut their greenhouse gas emission levels. However, the programs proposed are not without opposition. The economic costs, some experts argue, may be too high, social disruptions may too great, such a fluid system may invite cheating by countries and powerful economic groups, and it may not produce the necessary changes in the behavior of the heaviest polluters. -
Boeing: The Fight for Fasteners
Boeing originally was scheduled to deliver the Dreamliner to airline customers in mid-2008. However, after five announced delays over two years, the company was forced to postpone the first test flight. One driver for the delay was an industry-wide shortage of aerospace fasteners, the hardware that held the aircraft together. Engineers at Boeing never could have imagined that fasteners, which comprise approximately 3% of the total cost of an aircraft, would become such an issue. To address the fastener issue, Boeing's management knew that it could not just use a band-aid solution; rather, it had to drive sweeping changes to the way the industry and supply chain functioned. Boeing's solution: the fastener procurement model (FPM). -
OLGC Finds Its Match (A)
The case illustrates a sports betting product offered by the Ontario Lottery and Gaming Commission. The particular game involved has odds that favour the bettor over the game provider under certain settings. The supplement B case, product 9B09E015, summarizes the results from a series of bets made and provides an email response from the game provider following the discontinuation of this particular game. The case provides an interesting introduction into probability or simulation and expected value calculations. -
Jim Lander at Thamesford Logistics
An operating manager who as an equity stake in Thamesford Logistics is preparing himself for what he believes will be a difficult conversation with Thamesford Logistic's chief financial officer (CFO) on a current project despite the fact that the operating manager has a legal dispute with the CFO on another deal. In the recent past, the operating manager and the CFO were partners trying to package and sell a mining project on behalf of the mine owners. The agreement between the two expired and the CFO continued to push the project ahead, cutting the operating manager out of the proceeds. A disagreement over the ownership of the success fee led to the operating manager's lawsuit against the CFO. Meanwhile, Thamesford Logistics is trying to acquire a rival in Montreal. This pending transaction requires the operating manager and the CFO to cooperate on the deal. The operating manager is thinking about how he should approach a meeting with the CFO, what he should say, what he would not say and what he wanted to achieve by the end. -
Brett Sanders at Inglewood Instrument Co.
The general manager, U.K. for Inglewood Instrument Co. (Inglewood) is sitting outside of his company's headquarters in Burnaby, B.C., waiting for a meeting with the founder of the company to clarify his future as the firm's general manager, U.K. The general manager suspects that the founder and the vice-president Business Development, are actively trying to find a replacement for the general manager, U.K. position. As the general manager is barely one year into a two year contract, he feels shortchanged by the fact that the opportunity, which he uncovered, is being taken away from him. He knows that he needs to strike the correct balance between fact-gathering and advocacy. He needs to uncover what the founder has in mind for his career at Inglewood. The general manager wonders how he should prioritize his issues and how he should approach the conversation. -
Hyflux Limited and Water Sustainability - Treading Blue Oceans
In 2009, Hyflux Ltd (Hyflux) was one of Asia's leading environmental water treatment companies with operations in Singapore, China, the Middle East, North Africa and India. Specialising in membrane technologies, Hyflux provided integrated solutions for municipal water treatment as well as for industrial manufacturing processes, including the recycling of spent oils and solvents. Started in 1989 by Singapore-based entrepreneur Olivia Lum, Hyflux was an early mover into China's nascent industrial water treatment market in 1993, servicing numerous manufacturing plants there. In 1998, to widen Hyflux's market base and accelerate growth, Lum moved into the municipal water treatment market in Singapore. With this, Hyflux sales revenue jumped from $17.7 million in 2000 (nine months) to $554 million in 2008 and despite the 2008 global recession during which its municipal business remained strong, the company was able to secure large-scale high value projects in North Africa. As a newcomer, Hyflux leveraged on its innovative water treatment technologies and entrepreneurial drive to grow the business. However by 2009, as a player in the global water treatment business, Hyflux had to prove that it could execute greenfield municipal projects in a far-flung continent and compete with other global water treatment companies in these new markets. To respond to these challenges, Hyflux had to rapidly grow its human capital and organisational capabilities to match the firm's aggressive market penetration strategies. -
Replacing El Poderoso
A professor is considering buying a new car and is evaluating two models, one with air conditioning and a comfort package, the other with no extras. The two cars are relatively close in price but still above his initial budget, and he is wondering how much he might be able to negotiate the price. A factor that complicates the matter is that the car with the comfort package has a lower interest rate. The professor therefore needs to understand what the net present value of the difference in the two payment plans is. -
International Lobbying and The Dow Chemical Company (A)
This case explores company strategy, business-government relations, and collective action challenges associated with international and domestic lobbying regarding regulation of the chemical industry. In the fall of 2006, a five-year legislative process for a major new law regulating chemicals in the European Union appeared to be nearing its conclusion. REACH, the Registration, Evaluation, Authorization, and Restriction of Chemicals, would create a new European Chemicals Agency, require companies to submit testing data on existing and new compounds, and restrict the manufacture of hazardous substances. Andrew Liveris, CEO of the Dow Chemical Company, has to decide whether the company should engage in direct discussions with the European Parliament and Commission, with the implication that the company can influence the regulations but also would have to support the final outcome. The case summarizes Dow's history, competitive dynamics in the sector, and regulation of the chemical industry before describing the REACH legislative process and various approaches to lobbying used by chemical companies, trade groups, and environmental NGOs. -
SIPEF: Biological Assets at Fair Value under IAS 41
This case examines fair value accounting under lAS 41 for a European-listed agricultural firm. Students identify the firm's core operations, distinguishing the IFRS treatment for three distinct assets: land; agricultural assets that reside on the land; and inventory harvested from the land. They also analyze key reporting decisions relating to the agricultural assets, which create frictions such that market value and book value do not converge despite the application of fair value for the majority of the firm's assets. The case also highlights how fair value accounting affects key valuation inputs such as earnings, and the implications for abnormal-earnings based valuation. -
Havells India: The Sylvania Acquisition Decision (A)
This case presents the management challenge of a high-growth manufacturing company based in India that is contemplating a major international acquisition. It is a decision that will invoke both geographic and product diversification. Students have to grapple with the trade-offs of an exciting growth opportunity that can stretch the company to new heights against significant risks and challenges that such an acquisition would entail. The case also provides an excellent context for studying the evolution of international strategy in a firm, as it presents Havells from an entrepreneurial startup trading company to a successful manufacturing firm and going on to become a global company. The case will fit well in a strategic manufacturing class, either on the topic of diversification strategy or international strategy. The decision is reasonably complex and allows the instructor to take the class through an in-depth analysis. Given the short length of the case, it can be used effectively in executive education class. The case can serve very well as a final examination case in a strategic management course. -
Reciclare: Rethinking the Future