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Crestor
AstraZeneca is preparing for the launch of Crestor, the company's first entrant in the enormous and fast-growing statin category. The team responsible for the product launch is considering how best to bring Crestor to market. Should AstraZeneca simply follow the example set by Pfizer with the exceptionally successful launch of Lipitor? Or should the company instead launch Crestor as a niche product? -
Cancer Health Alliance of Metropolitan Chicago: Working Together to Achieve Mutual Goals
Describes how four independent, community-based nonmedical centers that offered professional services and programs to cancer patients on a voluntary non-fee basis in the 1990s came together to form the Cancer Health Alliance in 2003-2004 as a separate nonprofit to help achieve more of their mission and be more sustainable. -
Harilela Enterprises: An Indian Family Business in Hong Kong
A second-generation, multi-billion-dollar Asian family business, run for decades by six brothers, faces issues of ownership, family employment, management, leadership, governance, and succession as it transitions to the third generation of siblings and cousins. -
Crisis at Encyclopaedia Britannica
Encyclopaedia Britannica was the leading provider of encyclopedias in the English language, but after sales declined rapidly in the early 1990s the company was forced to file for bankruptcy. Many different organizational and market factors contributed to this crisis, such as the diffusion of the PC, the invention of Encarta, the technical challenges of moving text to electronic formats, and the difficulties of inventing a new format while also operating the leading seller of books. Looking back, what could the company have done differently? -
Wikipedia in the Spotlight
By 2006, Wikipedia had achieved the type of success that only a handful of young organizations could ever dream of reaching. It had grown from almost nothing in 2001 to become one of the consistently highest ranked and most visited sites on the Internet. This success brought new problems at a scale that no organization of this type had ever before faced. Exposes students to Wikipedia's brief history, the causes of its success, and the issues it faced going forward. Two topics form the focus: The first concerns the rules and norms for submission and editing, which raise questions about the ambiguity of Wikipedia's authority and the virtual cycle that keeps the site going; The second concerns the need to alter its practices as it gains in popularity, raising questions about what any wiki site, profit-oriented or open source, must do to scale to large numbers of participants and entries. These issues arise as part of a discussion about the site's priorities going forward. -
Supply Chain Outsourcing at DB Toys
The case is based on a real supply chain outsourcing management decision at a major manufacturing company. The company has been disguised for confidentiality reasons. The case discusses different types of outsourcing, supply chain management, the benefits and risks of outsourcing, and various pricing models for outsourcing contracts. Students must make a management decision and answer these questions: Is supply chain outsourcing a viable option for DB Toys? What will the return on investment be? What is the best outsourcing model? What is the best pricing model? -
Shilling & Smith Acquisition of Xteria Inc.: Data Center Technology Leasing
The case centers on Shilling & Smith's acquisition of Xteria Inc. and the resulting need to quickly scale the company's IT infrastructure to accommodate the acquisition. The case is based on a real leasing problem faced by a major retail firm in the Chicago area when it purchased a small credit card processing firm and scaled the operations to handle the retail firm's credit card transactions. The CIO of Shilling & Smith needs to determine which lease option is the best means of providing the technical infrastructure needed to support the firm after the acquisition of Xteria. Several issues will drive this decision, including the value and useful life of the equipment, as well as the strategic context of the firm. This case examines how to evaluate different lease options when acquiring data center information technology infrastructure. Specifically, the case addresses software vs. hardware leasing, different lease terms, and choosing between different lease structures depending on the strategy and needs of a company. This case enables students to understand the different types of technology leases and in which situations these leases would be employed. -
The Value of Flexibility at Global Airlines: Real Options for EDW and CRM
Technology projects are inherently risky; research shows that large IT projects succeed as originally planned only 28 percent of the time. Building flexibility, or real options, into a project can help manage this risk. Furthermore, the management flexibility of options has value, as the downside risk is reduced and the upside is increased. The case is based upon real options analysis for an enterprise data warehouse (EDW) and analytic customer relationship management (CRM) program at a major U.S. firm. The firm has been disguised as Global Airlines for confidentiality reasons. The data mart consolidation or EDW marginally meets the hurdle rate for the firm as analyzed using a traditional net present value (NPV) analysis. However, different tactical deployment strategies help mitigate the risk of the project by building options into the project, and the traditional NPV is expanded by the real option value. Students analyze the different deployment strategies using a binomial model compound option Excel macro, and calculate the volatility using Monte Carlo analysis in Excel. A step-by-step tutorial is provided to teach students how to accomplish the real options analysis for a simplified project, and this tutorial is easily generalized by students to the case scenario. In addition to the tactical options, the case also has the strategic growth option of analytic CRM. Students must therefore analyze both the tactical and strategic growth options and make a management recommendation on funding the project and also recommend an optimal deployment strategy to manage the project risk. -
ttools (A): The Value of a Patent to the Entrepreneur
A self-employed innovator developed and patented a novel combination pen and stylus device to complement the recently released Palm Pilot personal digital assistant. He presented his design to Palm, under a nondisclosure agreement to discuss the market response to the product, and his company, ttools, was subsequently allowed to advertise the device in a monthly e-mail to Palm customers. After ttools' release of the Throttle pen/stylus, Palm and the design firm IDEO introduced a similar pen/stylus device that appeared to infringe on ttools' patent. ttools, being a small, resource-constrained company, was in a precarious position. Its competitive advantage and rights as a patent holder were being threatened. It had few financial resources to draw upon, and thus its livelihood as a company was at stake. Investigates the available options ttools had to respond to Palm and IDEO's actions. -
3M ESPE AG: Managing Intellectual Property in the Dental Impression Materials Market
ESPE, the market leader, is a medium-sized German manufacturer of precision dental impression materials competing in a shrinking market. To grow the business, ESPE invests substantial resources in innovative impression materials and associated distribution mechanisms. Squeezed by the shrinking market, the competition is increasingly using the proprietary channels (dispensing mechanisms) and brand equity (trademark) of ESPE to maintain their market share. There is a potential infringement. Explores how ESPE is organized to execute on the options imbedded in its IP rights. -
Clothes 'R' Us Point-of-Sale Initiative: Managing IT Programs
The case concerns a real $25 million program consisting of nine concurrent projects to deliver and implement a custom-built in-store customer relationship management (CRM) system and a new point-of-sale system in 400 stores of a national retail chain. The name of the company has been disguised for confidentiality reasons. Once deployed, the new system should give Clothes 'R' Us a significant strategic advantage over competitors in the marketplace; it will increase in-store manager productivity, cut costs, and ultimately drive increased sales for the retail chain. The program is in crisis, however, because the product managers have just left to join a competitor. The explicit details of the program are given, including examples of best practice program governance and the real activity network diagram for the program. Detailed Excel spreadsheets are also provided with the actual earned value data for the program. Students analyze the spreadsheets and the data given in the case to diagnose the impact of the most recent risk event and past risk events that occurred in the program. Ultimately students must answer the essential executive questions: What is wrong with the program? How should it be fixed, and what is the impact in time and money to the program? In addition, qualitative warning signs are given throughout the case-these warning signs are red flags to executives for early proactive intervention in troubled projects. -
AstraZeneca, Prilosec, and Nexium: Strategic Challenges in the Launch of a Second-Generation Drug
Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. Within the year, the firm's patent for Prilosec (active ingredient omeprazole) was expiring. Prilosec was a US$6.2 billion/year blockbuster that revolutionized the treatment of chronic gastro-esophageal reflux disorders (GERD). Severe cost-based competition from generic drug manufacturers was, however, inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm. AstraZeneca had Nexium, an improvement on the original Prilosec molecule, in the pipeline. Ideally, it would like to move brand-loyal Prilosec customers to Nexium. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an over-the-counter (OTC) version of omeprazole. Tactically, AstraZeneca would like to use regulatory incentives and intellectual property rights to strengthen its competitive position. How could the company use its entire portfolio of intellectual properties-including patents and trademarks-to actively manage the priced-based competition and achieve a revenue growth strategy in the GERD market? -
AstraZeneca, Prilosec, and Nexium: Marketing Challenges in the Launch of a Second-Generation Drug
Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. The firm's patent for Prilosec (active ingredient omeprazole) was expiring. Severe cost-based competition from generic drug manufacturers was inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm, but Prilosec was the firm's most successful drug franchise, with global sales of US$6.2 billion. How could the company innovate its way around the generic cost-based competition and avoid the drop in revenues associated with generic drug market entry? AstraZeneca had other follow-on drugs in the pipeline-namely Nexium, an improvement on the original Prilosec molecule. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an OTC version of omeprazole that might tap into other markets. Ideally, AstraZeneca would like to move brand-loyal Prilosec customers to Nexium. In this market, direct-to-consumer advertising has remarkable efficacy. Classical marketing challenges of pricing and promotion need to be resolved for the Nexium launch as well as possible product and place challenges for the generic or OTC opportunity. Which combination of marketing options will allow the firm to best sustain the value of the original omeprazole innovation? -
All the Wrong Moves (HBR Case Study and Commentary)
Nutrorim's products have been gaining national attention. In particular, sales of the company's organic, performance-enhancing sports supplement powder, ChargeUp, have gone through the roof. Now the new and improved version, called ChargeUp with Lipitrene, has recently hit the market, and expectations are high. CEO Don Rifkin has tried hard to build an inclusive, democratic culture at this successful company. But the organization's open decision-making process has proved problematic, especially during times of conflict and crisis--and a crisis there is. Several months after ChargeUp with Lipitrene is initially released, an investigator from the Minnesota state department of health calls Rifkin to report "11 cases of gastrointestinal distress" among those using the supplement. Nutrorim's top executives must now decide whether to recall the product. The head of R&D, Steve Ford, insists there is nothing wrong with the new ChargeUp, citing elaborate toxicity studies in animals and humans. Meanwhile, the heads of PR and legal want to stem any negative publicity by recalling the product and issuing a press release to that effect. The company decides to recall the supplement--but, two weeks later, the health department investigator calls back with good news: The people who had become ill, it turns out, had actually picked up a bug from their gym's smoothie bar. In other words, Nutrorim is exonerated. But the close call prompts Nutrorim to bring in a consultant to review the company's methods for making decisions. Among the many questions he's asking is, What's the right decision-making process for Nutrorim? Commenting on this fictional case study in R0601A and R0601Z are Christopher J. McCormick, the president and CEO of L.L.Bean; Hauke Moje, a partner at Roland Berger Strategy Consultants; Ralph Biggadike, a professor of professional practice at Columbia Business School; and Paul Domorski, the vice-president of service operations at Avaya. -
All the Wrong Moves (HBR Case Study)
Nutrorim's products have been gaining national attention. In particular, sales of the company's organic, performance-enhancing sports supplement powder, ChargeUp, have gone through the roof. Now the new and improved version, called ChargeUp with Lipitrene, has recently hit the market, and expectations are high. CEO Don Rifkin has tried hard to build an inclusive, democratic culture at this successful company. But the organization's open decision-making process has proved problematic, especially during times of conflict and crisis--and a crisis there is. Several months after ChargeUp with Lipitrene is initially released, an investigator from the Minnesota state department of health calls Rifkin to report "11 cases of gastrointestinal distress" among those using the supplement. Nutrorim's top executives must now decide whether to recall the product. The head of R&D, Steve Ford, insists there is nothing wrong with the new ChargeUp, citing elaborate toxicity studies in animals and humans. Meanwhile, the heads of PR and legal want to stem any negative publicity by recalling the product and issuing a press release to that effect. The company decides to recall the supplement--but, two weeks later, the health department investigator calls back with good news: The people who had become ill, it turns out, had actually picked up a bug from their gym's smoothie bar. In other words, Nutrorim is exonerated. But the close call prompts Nutrorim to bring in a consultant to review the company's methods for making decisions. Among the many questions he's asking is, What's the right decision-making process for Nutrorim? Commenting on this fictional case study in R0601A and R0601Z are Christopher J. McCormick, the president and CEO of L.L. Bean; Hauke Moje, a partner at Roland Berger Strategy Consultants; Ralph Biggadike, a professor of professional practice at Columbia Business School; and Paul Domorski, the vice-president of service operations at Avaya. -
All the Wrong Moves (Commentary for HBR Case Study)
Nutrorim's products have been gaining national attention. In particular, sales of the company's organic, performance-enhancing sports supplement powder, ChargeUp, have gone through the roof. Now the new and improved version, called ChargeUp with Lipitrene, has recently hit the market, and expectations are high. CEO Don Rifkin has tried hard to build an inclusive, democratic culture at this successful company. But the organization's open decision-making process has proved problematic, especially during times of conflict and crisis--and a crisis there is. Several months after ChargeUp with Lipitrene is initially released, an investigator from the Minnesota state department of health calls Rifkin to report "11 cases of gastrointestinal distress" among those using the supplement. Nutrorim's top executives must now decide whether to recall the product. The head of R&D, Steve Ford, insists there is nothing wrong with the new ChargeUp, citing elaborate toxicity studies in animals and humans. Meanwhile, the heads of PR and legal want to stem any negative publicity by recalling the product and issuing a press release to that effect. The company decides to recall the supplement--but, two weeks later, the health department investigator calls back with good news: The people who had become ill, it turns out, had actually picked up a bug from their gym's smoothie bar. In other words, Nutrorim is exonerated. But the close call prompts Nutrorim to bring in a consultant to review the company's methods for making decisions. Among the many questions he's asking is, What's the right decision-making process for Nutrorim? Commenting on this fictional case study in R0601A and R0601Z are Christopher J. McCormick, the president and CEO of L.L. Bean; Hauke Moje, a partner at Roland Berger Strategy Consultants; Ralph Biggadike, a professor of professional practice at Columbia Business School; and Paul Domorski, the vice-president of service operations at Avaya. -
CAMILIA PICTURES - General Instructions
Camilia Pictures is a film production company dedicated to producing movies with artistic merit, strong market potential, and cutting-edge sensibilities. Seven years ago, Camilia Pictures President Raven Reynolds, then an independent producer with a small company and a big Hollywood name, and Rick Statler, CEO of family entertainment powerhouse Labrador Entertainment, agreed to a merger. Camilia would continue to produce high-quality films, but it would do so as a part of the larger Labrador empire. Though Reynolds would still run Camilia, all movies it produced would now belong to Labrador. For its first few years under the Labrador umbrella, Camilia Pictures thrived. But for the past few years, it has struggled as Reynolds and Statler continue to battle over money. Reynolds insists that she needs more to succeed. Statler, meanwhile, is increasingly concerned about the bottom line. The dispute between these two came to a head when Reynolds used her own money to purchase Privileges and Immunities, a controversial new documentary, against Statler's direct orders. Reynolds contends that because she used her own money to buy it and Statler is refusing to distribute it, she has the right to make her own arrangements to bring Privileges to theaters. Statler insists that the film belongs to Labrador and that he is completely within his rights to refuse distribution. Labrador's in-house counsel has referred both parties to separate lawyers to avoid a conflict of interest. At stake is not only the ownership of the new documentary, but also the future of Raven Reynolds and Camilia Pictures at Labrador Entertainment. -
Royal Corp.
Chronicles a day in the life of a Royal Corp. salesperson, Mary Jones, part of the Royal Reproduction Center (RRC) division. The RRC division specializes in high-quality turnaround copying and printing services. Division salespeople are responsible for selling copying/printing services, the Royal 750 color copier, and the Corporate Copy Center (CCC) concept, which involves equipping a client company with a staff and copiers to operate an on-premise reproduction operation. Focuses on Jones' difficulty in selling the CCC concept. Presents the daily sales activities of a business-to-business salesperson and the buyer behavior process of two different types of services (CCC and printing) and a product (color copier). Also reveals the difficulty of selling a new concept, typical problems that salespeople encounter, and the importance of understanding buyer behavior and the purchase process of a new product. -
Lenta of St. Petersburg, Russia
Lenta is a cash and carry retail business located in St. Petersburg, Russia. At the time of the case, it was operating nine stores and generating over $500 million in gross sales. The case is set at the end of 2005, after a very successful year. Lenta's founder and CEO, Oleg Zherebtsov, is faced with a dilemma: Where does he take Lenta from here? -
Andres Galindo
Andres Galindo is a young Colombian from an upper-middle class family in Bogota. With his brother Carlos serving as the sole importer in the country for the top American brand Electra Sportswear, Andres sets out to create a chain of retail stores located in high-end shopping districts. Understanding that his legally imported goods were at a dramatic cost disadvantage to openly marketed illegally imported brands and counterfeit labels (due to a 40% to 120% tariff), Andres decided to approach the problem as a retailing and marketing challenge by adding value through the retail sales process. By 2005, Andres has 14 stores and a new challenge: Electra has decided to cut out the middle man--Carlos--and have Andres import the product directly. This ought to lower margins, but it's a big step. Most important, though, is crafting a growth strategy for his company in the face of unfair competition and a relatively small target population.