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Twenty five years after its founding in members' homes, the non-denominational, evangelical Fellowship Bible Church of Little Rock, Arkansas had become a "mega-church", holding worship services on a 25-acre campus in one of the best locations in booming West Little Rock and attracting a combined 5,000 congregants on any given Sunday. But as the Fellowship congregation had grown, its leadership had come to believe that the Christian life must go beyond individual salvation and the responsibilities of family, friendship, and individual acts of charity and that church members must strive to be "socially responsible". In its effort to become a "church of irresistible influence", Fellowship Bible had taken the lead in organizing a massive citywide day of volunteer projects. In addition, ministries that had originated in small groups of church members-such as a sexual abstinence education program held in dozens of public and private schools-had taken on an independent life as well known free-standing organizations. Such efforts were made possible, in part, by charitable contributions made by Fellowship which totaled more than 25 percent ($3 million-plus) of its annual spending. This case tells the story of the next stage in church efforts to ameliorate social ills in Little Rock-an "external ministry" known as the "one church, one school, one neighborhood" project, announced in August 2004. Fellowship hoped that its assistance would demonstrably and measurably improve life in one of the city's most troubled areas-a 130-block area of central Little Rock. The project would include intensive mentoring of students one school in Little Rock's predominantly black South Midtown area (Fellowship itself was an almost entirely white congregation), efforts to work with African-American churches to encourage marriage in an area dominated by single-parent families, and an initiative to build new housing in the area. HKS Case Number 1780.0

Talk of cost cutting and layoffs was already in the air in the New York offices of international beverage company Legrand SA. But now everyone is imagining the worst after the sudden and mysterious resignation of Lucien Beaumont, the company's president of U.S. operations. The rumors are flying fast and furious about what prompted his departure and, just as important, who will get Lucien's job. Michael Feldstein is confident that he's a top contender for Lucien's job. Michael, the global category director for rums, believes his stellar brand results and strong track record might earn him the position. Then, with a slight sense of paranoia, he notices Danielle Harcourt--the global category director for vodka and liqueurs and Michael's chief competitor for Lucien's job--networking with some of the Paris executives at a launch party for one of Michael's brands. She has also reached out to at least one of his direct reports. Before he can confront her, Michael gets a call from CEO Pierre Hoffman and a proposition--but not the one he's looking for. In this fictional case study, Michael must weigh the advantages of taking an unexpected post in China against holding his ground in the politically charged New York offices of Legrand. Commenting on this fictional case study in R0501A and R0501Z are Nancy Clifford Widmann, an executive coach, and Amy Dorn Kopelan, the CEO of Bedlam Entertainment, a conference management company; Fred Hassan, the chairman and CEO of Schering-Plough; Allan Cohen, the Edward A. Madden Distinguished Professor in Global Leadership at Babson College; and Gary B. Rhodes, a senior fellow at the Center for Creative Leadership.

Talk of cost cutting and layoffs was already in the air in the New York offices of international beverage company Legrand SA. But now everyone is imagining the worst after the sudden and mysterious resignation of Lucien Beaumont, the company's president of U.S. operations. The rumors are flying fast and furious about what prompted his departure and, just as important, who will get Lucien's job. Michael Feldstein is confident that he's a top contender for Lucien's job. Michael, the global category director for rums, believes his stellar brand results and strong track record might earn him the position. Then, with a slight sense of paranoia, he notices Danielle Harcourt--the global category director for vodka and liqueurs and Michael's chief competitor for Lucien's job--networking with some of the Paris executives at a launch party for one of Michael's brands. She has also reached out to at least one of his direct reports. Before he can confront her, Michael gets a call from CEO Pierre Hoffman and a proposition--but not the one he's looking for. In this fictional case study, Michael must weigh the advantages of taking an unexpected post in China against holding his ground in the politically charged New York offices of Legrand. Commenting on this fictional case study in R0501A and R0501Z are Nancy Clifford Widmann, an executive coach, and Amy Dorn Kopelan, the CEO of Bedlam Entertainment, a conference management company; Fred Hassan, the chairman and CEO of Schering-Plough; Allan Cohen, the Edward A. Madden Distinguished Professor in Global Leadership at Babson College; and Gary B. Rhodes, a senior fellow at the Center for Creative Leadership.

Talk of cost cutting and layoffs was already in the air in the New York offices of international beverage company Legrand SA. But now everyone is imagining the worst after the sudden and mysterious resignation of Lucien Beaumont, the company's president of U.S. operations. The rumors are flying fast and furious about what prompted his departure and, just as important, who will get Lucien's job. Michael Feldstein is confident that he's a top contender for Lucien's job. Michael, the global category director for rums, believes his stellar brand results and strong track record might earn him the position. Then, with a slight sense of paranoia, he notices Danielle Harcourt--the global category director for vodka and liqueurs and Michael's chief competitor for Lucien's job--networking with some of the Paris executives at a launch party for one of Michael's brands. She has also reached out to at least one of his direct reports. Before he can confront her, Michael gets a call from CEO Pierre Hoffman and a proposition--but not the one he's looking for. In this fictional case study, Michael must weigh the advantages of taking an unexpected post in China against holding his ground in the politically charged New York offices of Legrand. Commenting on this fictional case study are Nancy Clifford Widmann, an executive coach, and Amy Dorn Kopelan, the CEO of Bedlam Entertainment, a conference management company; Fred Hassan, the chairman and CEO of Schering-Plough; Allan Cohen, the Edward A. Madden Distinguished Professor in Global Leadership at Babson College; and Gary B. Rhodes, a senior fellow at the Center for Creative Leadership.

Two-party, multi-issue, scoreable negotiation regarding a prenuptial agreement, calling for a balance of substantive and relationship concerns. Marlene Mayberry and Jacques Parker are young adults planning their marriage. After dating for 3 years, they have prepared a list of 10 assets that they have decided to include in a prenuptial agreement. The items include a joint checking account, a car, an apartment, furniture, an art gallery, Jacques' artwork, a portrait of Marlene, California real estate, a $1 million inheritance, and a pet dog. Jacques and Marlene are given confidential instructions that outline specific point values and resistance points for these items. They will each be awarded "Tangible Points" for the assets they claim for themselves in the prenuptial agreement.

Two-team, six-party, four-issue negotiation between representatives of two corporations setting up a simultaneous high-tech joint venture and purchasing agreement. Advanced Sensor Technologies (AST) is a leading manufacturer of chemical sensors. Technology Equipment Partners (TEP) manufactures the type of equipment AST uses to produce its sensors. AST and TEP are meeting to set the terms of a potential joint development and purchasing agreement. Three senior executives from each company will negotiate. They will try to reach agreement on four issues: tool price, order schedule, payment schedule, and intellectual property.

For nearly 60 years, Precision Steel Fabrication (PSF) had been making fabricated steel components for the contract furniture (commercial office furniture) industry. At the time of the case, the $10 million firm was emerging from a downturn in sales and seeing its first sales increase in three years, and was contemplating the purchase of a $1 million tube laser. The tube laser could do the work of three machines: a table saw, a hydraulic press, and a deburring machine. Should PSF purchase a tube laser? If so, how should three vendors' offerings be evaluated and what criteria are most salient? While the tube laser would greatly increase the firm's manufacturing efficiency, the decision itself is relatively risky. The case is written to provide the framework for evaluating an equipment purchase decision within the context of business and operations strategy, and in a small business environment.

Aegis Analytical Corporation was founded in 1995 by Gretchen L. Jahn and Justin O. Neway to provide process manufacturing software and consulting services to pharmaceutical and biotech manufacturers. Aegis developed a software program that quickly compiles disparate data into a single report. Within minutes, the program develops reports on drug tests and manufacturing quality that previously might take months to compile. With a target market of large pharmaceutical manufacturers, Aegis knew it faced a challenge of getting "in the door" of these companies and of convincing them that Aegis and its software would be around for awhile. To help with the marketing, Aegis formed two alliances with two companies that manufactured and sold complementary products to pharmaceutical manufacturing companies. While there were advantages to partnering with these divisions of Honeywell and Rockwell, most notably the visibility and credibility that these big names offered, many disadvantages developed. Most important is that Aegis's product was just one of many that Honeywell or Rockwell would promote. While there were incentives in place to encourage Honeywell and Rockwell to promote Aegis's product, after a year neither strategic alliance had resulted in a sale of Aegis's software. Aegis's founders were faced with the decisions of whether they should continue with either or both of the alliances. If they chose to continue the alliances, what could they as a small company do to encourage their much larger partners to promote the Aegis product? If they chose to terminate the alliances, can they rely only upon their internal sales staff to adequately promote and sell their product? What would be the effect on their reputation by no longer partnering with Rockwell or Honeywell? Another option might be to attempt to set up new alliances? If so, what steps should they take to increase the probability of success?

This case is about a manufacturer of textile products in the Czech Republic. Founded in 1991 by Jitka Entlichová and her husband Milan Fiedler, EnFi manufactured an extensive line of standard and customized bath and table linens, bedding, draperies, chair covers and display banners for upscale restaurants, conferences, receptions, hotels and boutique retailers. EnFi purchased fabrics from the Czech Republic and abroad, mostly from France, Spain, Italy, India, and Slovakia. In 2004, EnFi had over 1,200 hotel, resort, restaurant, and business customers throughout Bohemia. The Czech Republic had rapidly changed from a controlled economy prior to 1989 to a vibrant international marketplace by the time it entered the European Union in 2004. As competition and costs increased, Entlichová had to reposition her company over the years. With limits on Chinese textile imports set to be lifted in 2005, Entlichová again had to decide the direction her company should take.

Discusses the structure of the Seven-Eleven Japan supply chain in terms of its facilities network, inventory management, distribution, and information.

Studies the U.S. credit card industry in the late 1990s and early 2000s. After an industry background review, a discussion of generic strategies follows in which strategies, like product proliferation and cost improvements, are achieved through superior IT. These strategies are exemplified using the leading players in the industry. On the other hand, these strategies are easily imitable, the basic product is standardized, and the industry is highly fragmented. What accounts then for the exceptional level of profitability enjoyed by this industry?

Compania Cervecerias Unidas S.A. (CCU), the leading player in the beer and beverage business in Chile ,is evaluating the feasibility of entering the Pisco (hard liquor from special grapes) business in Chile. The market is very competitive and divided between two very large traditional cooperatives. These two companies, with their broad brand portfolios, control over 90% of the market. In recent years, the Chilean market has started to change. Consumers are becoming more sophisticated and are opening up to new lifestyle beverages. The retail industry is going through a process of fast transformation with the appearance of new formats (e.g., Internet, kiosks, and hypermarkets) and consolidation through mergers and acquisitions. CCU is a powerful player in the beverage industry. It has strong brands, channel access, and merchandising power.

The case is set in June 1999 as Marcel Telles, Chairman and Chief Executive Officer of Companhia Cervejaria Brahma (Brahma) - the largest brewer in Brazil - considers a possible merger with the Antarctica Group (Antarctica), the second-largest Brazilian brewer. If the merger were to be completed, the combined firm would control 75% of Brazil's beer market and forecast pro forma revenues of over $US2.8 billion. The case provides a concise overview of the Brazilian beer market and Brazil's volatile macroeconomic and regulatory context, and summarises the century-long rivalry between Brahma and Antarctica. For a century after their founding, Antarctica led Brahma in terms of market share, profitability, new product introductions and management innovations, although the two brewers were roughly comparable in size. Under Telles' leadership, however, Brahma pulled ahead of its rival in the span of a decade. The case explores the reasons for this dramatic reversal of fortune and describes in detail the actions Telles and his top management team took to change Brahma's culture, set and execute operational improvements, and create real options for future revenue streams

Richard Townsend has recently been elected CEO of Liberty Medical Foundation (LMF), a nonprofit HMO. Due in part to a rapidly changing competitive environment, LMF has faced serious financial problems over the past two years. Confounding the problem are low morale among physicians and staff and declining patient satisfaction. Townsend will present to the board of directors the two strategic choices that he sees for keeping LMF alive. One choice involves LMF regaining its low-cost position that originally attracted so many of its members. LMF's low-cost, high-efficiency positioning has historically been its competitive advantage. Regaining the low-cost position would mean implementing prior authorization requirements, drastically cutting the number of physicians and staff, and copying other cost savings measures that for-profit HMOs use. The other option is to change radically LMF's positioning so that it is the quality and service leader. This option assumes that customers will be willing to pay a premium for excellent service. Either option will require drastic changes to LMF's culture.

In December 2003, the management teams at the automotive and steel businesses of The Timken Corp., headquartered in Canton, Ohio, were principally in agreement that market price was the appropriate instrument for valuing internal steel transfers. At the same time, both management teams had reservations about details of the implementation of market-based transfer pricing as it stood. Asks students to assess whether the transfer pricing policy for steel transfers inhibited the automotive division from exercising its market power as a purchaser of bearings quality steel. Also asks students to comment on the usefulness of the Minimum Rule, assess Timken's policy of market-based transfer pricing rules for steel, and compare cost-based transfer prices to market-based prices.

Mo Ibrahim, chairman of Celtel International, the largest provider of cellular services in sub-Saharan Africa, must decide on his company's future. After an amazing six years that took it from minority positions in three countries to nearly $1 billion in revenues and 14 operations in 13 countries, the company has three options: to attempt an IPO, to find a merger partner, or to continue as an independent entity. Ibrahim must consider the company's track record, its current situation, and the implications of each option.

Explores the role of the U.S. military in facilitating the establishment of a spectacularly successful free trade area in one of the most devastated areas of Bosnia. NATO's imposition of law and order, plus protection from local political protection rackets, led to spontaneous growth of a market with over $100 million in annual sales.

Describes the evolution of General Motors' strategy, organizational structure, and management processes from its founding to the present day. Focuses on the role of GM's management committee--the senior-decision-making body at the company, now called the Automotive Strategy Board (ASB)--and how it operates under Rick Wagoner, its current CEO. In October 2004, Wagoner and the ASB are wrestling with recent changes in GM's planning and budgeting processes and how they will affect the balance between global and local needs.

This case is a sequel to "WLR Foods and Tyson Foods" (UV2529), which presents the attempted acquisition of WLR by Tyson Foods in 1994. Over the ensuing six years, WLR's stock price slides consistently downhill until 2000, when it is trading at a fraction of its 1994 value. When WLR's share price hits $4.59, Pilgrim's Pride Corporation (PPC) views the company as an attractive acquisition. This case asks the student to determine how much of a premium PPC should offer and whether WLR management will resist a takeover in 2000 as it did in 1994. Financial information is provided to allow students to compute both stand-alone and with-synergies valuations. The case is best taught immediately following UVA-F-1465. It is designed to be taught as a firm-valuation exercise in a first-year or second-year MBA finance course. It is also suitable for executive and undergraduate audiences. Student (F-1466 WLR-Pilgrims Pride.xls) and instructor (F-1466 TN.xls) spreadsheets are available.

Hasbro's newest toy is so unique it requires a unique launch strategy. Comparing traditional media (TV, print) with a non-traditional viral campaign, Matt Collins must weigh the risks and benefits of doing things the way they've always been done or blazing a new path in the marketing of toys.