CORPORATE STRATEGY 3E LYNCH Pearson Education November 2002 Case Title Source, Number, Length, Teaching Note

J&S, p870 HBSP # 9-700-115 8p (A) HBSP # 9-700-116 4p (B) HBSP # 9-700-117 18p (C) Ireland; airlines; 10 employees; 1986 In April 1986, the Ryan brothers announce that their fledging Irish airline Ryanair will soon commence service between Dublin and London. For the first time, Ryanair will face formidable competitors such as Aer Lingus and British Airways on a major route. Students are asked to assess Ryanair's entry and anticipate the response of incumbent carriers. Teaching Purpose: Allows students to hone skills in competitor analysis and in the anticipation of competitive dynamics. Cost and revenue figures permit students to examine the economics of retaliatory pricing in a business with high fixed costs and low marginal costs. Describes the economic logic leading to the deregulation of the American airline industry in 1978, and subsequent competitive developments. The roles of computerized reservation systems, airport hubs, route strategies, and fleet management are raised as unanticipated tactical responses. The decision focus of the case emphasizes the prospect of regulation. Teaching Purpose: Taught early in an advanced course in strategy, this case is designed to illustrate the connections between industry evolution and the opportunities available to firms as they seek to develop competitive advantage. A rewritten version of an earlier case. Describes the strategic, organizational, and management changes that led Acer from its 1976 start-up to become the world's second-largest computer manufacturer. Outlines the birth of the company, the painful "professionalization" of its management, the plunge into losses, and the transformation under founder Stan Shih's radical "fast food" business concept and his "client server" organization model, which are put to the test when a young product manager in Acer America develops a radically new multimedia home PC with global potential. Shih must decide whether to give an inexperienced manager in a loss-

Geographical and Industry Setting, Company Size, Timeframe

Case Decision Issue

Chapter 1 Ryanair Dogfight over Europe: Ryanair (A), (B), (C)

The U.S. Airline Industry in 1995

HBSP # 9-795-113 22p

United States; airlines; 1995

Acer, Inc.: Taiwan's Rampaging Dragon

HBSP # 9-399-010 20p

Taiwan and Global; computers; $3.2 billion revenues; 5,800 employees; 1976-1995

generating subsidiary the green light. Teaching Purpose: To explore the links between global strategy and structure, to evaluate leadership of transformational change, and to examine development of global competitive advantage. Chapter 2 The General Mills Board and Strategic Planning HBSP # 9-491-117 11p Minneapolis, MN; consumer food and restaurants; Fortune 500; $6.4 billion 1990 sales; 1989 United States; breakfast cereal; $9 billion revenues; 1994 Examines the General Mills Board of Directors' role in the General Mills joint venture with Nestle S.A. to sell cereals outside of North America. It raises the more general question of the appropriate role for the board of directors in strategy formulation. Ready-to-eat breakfast cereal has historically been a stable and highly profitable industry, dominated by the Big Three of Kellogg, General Mills, and Kraft General Foods (Post). In 1994, private label cereals are making significant market share gains, and promotional competition among the manufacturers of branded cereals is heating up. What steps should one of the Big Three take to prevent these trends from undermining industry profitability, especially in light of likely competitor reactions? Supplements Ready-to-Eat Breakfast Cereal Industry in 1994 (A).

Ready-to-Eat Breakfast Cereal Industry in 1994 (A)

HBSP # 9-795-191 17p (A) HBSP #9-796-122 4p (B) updates A case

Ready-to-Eat Breakfast Cereal Industry: Philip Morris Ready-to-Eat Breakfast Cereal Industry: Quaker Oats Chapter 3 Restructuring the U.S. Steel Industry

HBSP Supplement # 9-797-104 2p HBSP Supplement # 9-797-103 2p

United States; breakfast cereal; $9 billion revenues; 1994 United States; breakfast cereal; $9 billion revenues; 1994

Supplements Ready-to-Eat Breakfast Cereal Industry in 1994 (A).

HBSP # 9-203-042 23p

United States; steel; 19702002

International Steel Group

HBSP # 9-803-162 25p

Ohio, Indiana, Illinois; steel production; $100 million revenues; 2,500 employees; 2002

De Passe

HBSP

Hollywood,

CA;

Focuses on the competitive decline of the integrated steel producers in the United States from 1970 to 2002. Issues include: Should the U.S. government impose tariffs to try to protect the industry? What should labor unions do, if anything, to protect jobs and wage rates of employees in failing companies? Profiles veteran investor Wilbur L. Ross, Jr.'s plan to turn around the aging steel assets of LTV, formerly America's second largest integrated steel producer. Purchasing several key assets from LTV under Section 363 of the Bankruptcy Code, Ross is able to acquire the assets free of any pension or healthcare liabilities to retirees. Examines the challenges Ross faces as he tries to make the reborn steel company into a global player as one of the world's lowest cost producers. To accomplish this, he must negotiate a new agreement with the steelworkers' union, transform the old LTV culture, and secure long-term contracts with the right customers who could fulfil ISG's capacity requirements. After 24 years at Motown Industries,

Entertainment & Creative Partners

# 9-494-013 20p

entertainment; 1991-1993

BMWFilms

HBSP # 9-502-046 26p

North America; automobiles; $32,693 million revenues; 97,725 employees; 2001

Hollywood executive Suzanne de Passe has decided to go out on her own to start two new businesses. The case describes de Passe's career from her beginning as Berry Gordy's assistant at Motown Records to her presidency of Gordy/de Passe Productions. Upon Gordy's departure from the production business, de Passe decides to become an entrepreneur, forming both an independent production company and an artist management company. In the management venture, de Passe has a business partner, and in the production company she hires a president and COO. Focuses on her decision to become an entrepreneur and on the working partnerships she has developed with the executives of the two companies. Jim McDowell, VP of marketing at BMW North America, is debating how to follow up the success of his latest marketing campaign, "BMWFilms." This campaign features five short films for the Internet, directed by some of the hottest young directors in Hollywood. By all indications, the nontraditional campaign has been a huge success. Now the question is, what to do for an encore? Teaching Purpose: To explore the consumer behavior dynamics associated with nontraditional marketing techniques. Also allows for a discussion of the link between deep consumer understanding and the design of a new advertising genre. In June 1998, the senior management team at Dreyer's Grand Ice Cream faced a number of internal and external difficulties that were some of the most challenging problems the company ever faced. Problems included profitability issues, record-high butterfat prices, aggressive discounting by competitors, higher margin betterfor-you segment collapse, severance of Ben & Jerry's distribution contract, and management health issues. Given a mandatory and necessary financial restructuring of the company, the senior management team faced some tough employee issues and needed to make very significant decisions to overcome their difficult times. Teaching Purpose: To teach students how to manage a difficult organizational politics issue.

Chapter 4 Dreyers Grand IceCream (A)

Stanford University #OB35A 25p

United States; ice cream, dairy, consumer products; $1.16 billion revenues; 4,000 employees; 1998

Amazon.com From Start Up to the New Millenium European IceCream What Strategy Now for Mars?

J&S, p674

Lynch, 3rd edition Lecturers Guide Lynch, 3rd edition

Lecturers Guide Chapter 5 Merloni Elettrodomestici SpA: The Transit Point Experiment HBSP # 9-690-003 19p Italy; domestic appliance; midsize; $300 million sales; 1986 Merloni Elettrodomestici is a leading Italian manufacturer of domestic appliances. In 1986, an exposition for Merloni customers is scheduled at its Milano regional warehouse. During the two-month period preceding the event, when the warehouse must be free of inventory, the company conducts a "transit point" experiment. Each day, a truckload of products from the company's central warehouse is sent to Milano, where it is immediately transferred to small trucks for local delivery. At the conclusion of the experiment, the company is considering the replacement of its 17 regional warehouses with transit points. Students are asked to evaluate this proposal and recommend a configuration for Merloni's distribution network. Issues to be considered in the analysis of the case include the impact of different network configurations on customer service and on inventory, labor, operating, and transport costs. Merloni Elettrodomestici was founded in 1975. This case traces the evolution of the company's strategy, organization, and management as it becomes the #3 player in Europe (the #1 in Eastern Europe). Issues involve questions of geographic expansion, resource allocation, and organization. Teaching Purpose: Challenges of general management, strategy, students, and people. In 1995, the Merloni management is faced with profitless prosperity. A rise in raw material prices in the face of ferocious competition in their markets hurts margins. At the same time, the company is trying to expand geographically in order to become Pan-European and to consolidate the position of three brands. Teaching Purpose: To develop in considerable detail the management problems associated with internationalization in Europe: heterogeneous markets requiring differentiated approaches to product and marketing. This is made all the more difficult by multiple brands. In 2001 a young (35) new CEO has to develop a strategy to move his company beyond the hypercompetitive conditions of Western Europe. A major acquisition in Russia and a new web-based service business provide interesting new directions. This case traces the development of strategy and organization at this European multinational. Teaching Purpose: To examine the challenges of building and managing a multinational over nearly three decades and to consider

Merloni Elettrodomestici: The New Century Begins

HBSP # 9-303-062 21p

Europe; major appliances; $2 billion revenues; 1975-2002

Merloni Elettrodomestici SpA: Building for Profit

HBSP # 9-300-118 20p

Europe; major appliances; $2 billion revenues; 1975-2002

Merloni Elettrodomestici SpA: Building for the New Century

HBSP # 9-301-112 16p

Europe; major appliances; $2 billion revenues; 1975-2002

Merloni Group

HBSP # 9-383-152 18p

France, Italy; major appliances; mid-size; $350 million sales; 1982

Airbus A3XX: Developing the Worlds Largest Commercial Jet (A)

HBSP # 9-201-028 20p

France; aerospace; 2000

Airbus A3XX: Developing the Worlds Largest Commercial Jet (B) Chapter 6 The Pharmaceutical Industry: Challenges in the New Century

HBSP # 9-388-028 2p

France; aerospace; 2000

the entrepreneurial climate of strategic management. The general manager of the recentlyestablished French subsidiary of an Italian appliance company is in conflict with headquarters about unexpectedly poor financial performance. Headquarters management believes it should be able to exert more control over the subsidiary's strategic decision. The subsidiary general manager feels the Italians are already intervening too much. A change in organization structure is being debated. In July 2000, Airbus Industrie's supervisory board is on the verge of approving a $13 billion investment for the development of a new super jumbo jet known as the A3XX that would seat from 550 to 1,000 passengers. Having secured approximately 20 orders for the new jet, the board must decide whether there is sufficient long-term demand for the A3XX to justify the investment. At the time, Airbus was predicting that the market for very large aircraft (VLA), those seating more than 500 passengers, would exceed 1,500 aircraft over the next 20 years and would generate sales in excess of $350 billion. According to Airbus, it needed to sell 250 aircraft to break even, and could sell as many as 750 aircraft over the next 20 years. This case explores the two sets of forecasts, and asks students whether they would proceed with the launch given the size of the investment and the uncertainty in long-term demand. Teaching Purpose: Illustrates the basic economics of large projects and the complexity in estimating even topline demand for products with useful lives of up to 50 years. Also illustrates the role of governments in large projects, both as investors and as customers. Finally it explores the competitive dynamics between a monopolistic and a potential entrant in which entry costs exceed $10 billion. Supplements the (A) case.

HBSP # 9-703-489 32p

Global; pharmaceutical; $400 billion revenues; 19902003

Provides a broad overview of the numerous internal and external forces that were driving change in the global pharmaceutical industry in 2003. These forces--including downward price pressures, political and social pressures, increased development costs, new technologies, new and different competitors, consolidation, and threats to its basic business models--were changing the way drugs were discovered, developed,

Immusol & Novartis

HBSP # 9-303-038 31p

San Diego, CA; biotechnology; 90 employees; 2001

Genzymes Gaucher Initiative: Global Risk and Responsibility

HBSP # 9-303-048 23p

United States/Egypt; biotech; $800 million revenues; 1981-2001

Marketing Antidepressants: Prozac and Paxil

HBSP # 9-502-055 27p

United States; pharmaceuticals; 2000

manufactured, tested, regulated, marketed, sold, and purchased. Teaching Purpose: To provide students an opportunity to conduct an environmental scan/industry analysis of a complex global industry. Allows for the development of scenarios for industry evolution. A rewritten version of an earlier case. Should Immusol strive to become a fully integrated pharmaceutical company? How should small Immusol structure a deal for its novel technology with the giant Novartis? Teaching Purpose: To look at the nature of licensing deals between large resource-rich firms and small technology-rich ones. In Egypt, Genzyme's humanitarian commitment to treat all sufferers of the rare Gaucher disease worldwide first confronts its commercial imperative to recoup the huge investment required to bring the drug Cerezyme to market. Here Tomye Tierney must decide how to balance the demands of the sales organization that faces saturating developed markets, but major growth opportunities in developing economies. They believe that as long as the Gaucher Initiative--Genzyme's partnership with Project Hope--is providing free Cerezyme, they will be unable to convince the Egyptian government to authorize reimbursement, which can run from $200,000 to $300,000 per patient annually. CEO Henri Termeer believes Genzyme can hold firm to both the humanitarian commitment and its strong patient-focused commercial objectives. But it is Tierney who is on the front line and negotiates the delicate agreement between Genzyme sales, Project Hope, and Egyptian authorities. Teaching Purpose: To focus on international expansion and new market entry in the context of the tension between corporate responsibility and commercial viability. Describes the marketing of Prozac and Paxil, two of the best-selling mental health drugs in history. Set in 2001, several months before the expiration of Prozac's patent, Eli Lilly (Prozac's manufacturer) and GlaxoSmithKline (Paxil's manufacturer) must decide how to respond to the introduction of generic Prozac into the market. Teaching Purpose: To explore the positioning and counter-positioning strategies available to companies who produce similar products. In addition, provides a vehicle for discussing how to sustain value in the face of low-priced competition. Finally, allows for a discussion of the ethical issues surrounding the marketing of

Indias Intellectual Property Rights Regime in the Pharm Industry

HBSP # 9-702-039 23p

India; pharmaceuticals; 1970

General Electric Medical Systems 2002

HBSP # 9-702-428 25p

Global; medical products; $8 billion revenues; 2002

prescription pharmaceuticals. In 1970, the Indian government significantly revised its patent law, Patents and Design Act of 1911. The 1911 act was enacted when India was a colony of Great Britain, and it was controversial because it led to the total dominance of India's pharmaceutical market by multinational corporations. The 1970 act substantially reduced both the scope and the extent of patent protection and some credited the act as giving rise to India's own indigenous pharmaceutical industry. In 1994, the Indian government committed itself to conforming its intellectual property rights regime to the requirements of the WTO. Domestic political opposition was fierce toward any attempts to move away from the 1970 act. Teaching Purpose: To teach concepts on import substitution and intellectual property rights. Discusses one of General Electric's flagship divisions--the world's leading provider of medical diagnostic imaging equipment. Provides an opportunity to examine a multinational confronting massive technological and demographic changes around the world. Genomics has created a global opportunity by making personalized medicine seem possible--medical intervention that caters to the genetic makeup of the individual and emphasizes prevention more than cure. Yet, the pursuit of this opportunity requires fundamental changes in the business model at a time when the model is being stressed by the idiosyncratic needs of catering to the large Chinese market and adapting to the needs of an aging population around the world. Demonstrates how multinationals can create value both by replicating their business models worldwide and by adroitly splitting the value chain across national boundaries. The oil industry, one of the first international businesses, exerted a tremendous influence on almost all aspects of business, economics, and geopolitics throughout the 20th century. Their products revolutionized daily life. And the struggles to control and assure access to oil supplies and markets were a major element of international conflict throughout the century. Surveys the operations of Royal Dutch/Shell in Russia, including a strategic alliance with Gazprom, the country's natural gas monopoly, the development of the Salym oil fields in Siberia, and a small retail refilling network in St. Petersburg. Focuses on the Sakhalin II project. Sakhalin II is

Chapter 7 The Global Oil Industry

Stanford University # IB15

Energy resources, Global business, International business, Mining, Petroleum, Petroleum industry.

Journey to Sakhalin: Royal Dutch/Shell in Russia

HBSP # 9-704-040 27p

Russia; energy; $236 billion revenues; 90,000 employees; 19912003

Sunk Costs: The Plan to Dump the Brent Spar (A)

HBSP # 9-903-010 14p

Europe; oil and gas; $150 billion revenues; 90,000 employees; 1995

BP and the Consolidation of the Oil Industry 1998-2002

HBSP # 9-702-012 37p

Global; oil and gas; $160 billion revenues; 107,000 employees; 19982001

the reason for the existence of the Sakhalin Energy Investment Co. (SEIC), owned by Royal Dutch/Shell (55%), Mitsui (25%), and Mitsubishi (20%). Worth approximately $10 billion, the second phase of Sakhalin II would be the single largest investment decision in the history of Royal Dutch/Shell, as well as the single largest foreign direct investment in Russia's history. Sakhalin II would also be the largest integrated oil and gas project in the world. The project faces a number of challenges, however. A production sharing agreement (PSA)--a commercial contract between the foreign investor and a host government that replaces the country's tax and license regimes for the life of the project--govern Sakhalin II. Although Sakhalin II's PSA enjoys the status of Russian law, other Russian laws conflict with the terms of the PSA. PSAs have also become controversial within Russia. After several years of waiting in vain for "legal stabilization," Shell and SEIC executives must decide whether the project should go forward. Teaching Purpose: To consider the challenges of foreign direct investment in Russia and managing in the context of weak institutions. Explores the conflict between Shell Oil and Greenpeace over Shell's plans to sink the aging Brent Spar oil platform in the North Atlantic. Details the tactics Greenpeace employed and examines Shell's responses. Teaching Purpose: Explores issues in crisis organization and coalition building. Examines the economics of the oil and gas industry with a focus on 1998 through 2001. Discusses the rationale behind using a growth in scale as a means to increase profitability and to gain competitive advantage. Also examines the classic strategic implications of vertical integration and questions the necessity of remaining vertically integrated in today's markets. During 1998-2001, the industry structure changed dramatically with the occurrence of a wave of merger activity. Set at the end of 2001, as BP's chief executive, Lord John Browne, ponders the company's future. BP set off the merger activity in 1998 with its combination with Amoco. Other major oil concerns quickly followed suit. Several large and dominant firms, termed "supermajors," separated themselves from the rest of the competitors. Although a large number of independent specialty firms also exist, the supermajor firms no longer believe them to be direct competitors. After the case discussion, students

British Petroleum (A1): Organising for Performance at BPX

Stanford University # IB16 17p

Great Britain; oil company; 19921993

should be able to: 1) understand the basic economics of the oil and gas industry, 2) analyze the rationale behind vertical integration strategies, 3) analyze why the industry restructuring occurred, and 4) understand the economies of scale of the supermajor firms as well as the potential problems their immense size could create. Teaching Purpose: Analyze vertical integration, horizontal integration, economies of scale, potential limits to growth, and competition in a commodity industry. In 1992-93, British Petroleum plc, Britain's fourth-largest of the great international integrated oil companies, faced a major crisis. The company was experiencing its first losses in its eighty-year history, while morale was battered by downsizing and organizational upheaval. In order to increase revenues, develop new technologies, and manage information technology more efficiently, Xerox decided to sign a 10-year, $3.2 billion contract with Electronic Data Systems (EDS). This case describes the events that preceded Xerox's decision to outsource information technology. Describes the growth and development of Fuji Xerox, Xerox's joint venture in Japan, and the evolving relationship between Fuji Xerox and Xerox. Focuses on the technological development of Fuji Xerox, and on the contributions that Fuji Xerox has made to Xerox's competitive position worldwide. Presents a number of options for modifying the relationship between Xerox and Fuji Xerox in the future, when the two firms will face increasingly serious competition from global competitors. Fuji Xerox is a $4 billion company and arguably one of the most successful joint ventures ever between an American and Japanese firm. In some ways the evolution of Fuji Xerox has been a microcosm of the broader United States-Japan relationship. Describes the growth and development of Fuji Xerox, Xerox's joint venture in Japan, and the evolving relationship between Fuji Xerox and Xerox. Focuses on the technological development of Fuji Xerox, and on the contributions that Fuji Xerox has made to Xerox's competitive position worldwide. Presents a number of options for modifying the relationship between Xerox and Fuji Xerox in the future, when the two firms will face increasingly serious competition from global competitors. Fuji Xerox is a $4 billion company and arguably one of

Downfall at Xerox Xerox: Outsourcing Global Information Technology Resources

J&S, p1056 HBSP # 9-195-158 32p United States; copiers; Fortune 500; 1993

Xerox and Fuji Xerox

HBSP # 9-391-156 29p

Japan, United States; electronics (copiers); Fortune 500; $18 billion revenues; 19621990

Xerox and Fuji Xerox: Update 2002

HBSP # 9-703-009 29p

Japan, United States; electronics (copiers); Fortune 500; $18 billion revenues; 19621990

the most successful joint ventures ever between an American and Japanese firm. In some ways the evolution of Fuji Xerox has been a microcosm of the broader United States-Japan relationship. Chapter 8 Corona Beer (A) HBSP # 9-502-023 21p Mexico, United States; beer; 1997 In early June 1997, the CEO and vice chairman of Grupo Modelo were reviewing the performance of Corona beer in the U.S. market. Despite a much higher sales volume growth rate, Corona still trailed Heineken, the #1 imported beer brand in the U.S. market. Could Corona overtake Heineken and, if so, what marketing strategy changes needed to be made? Includes color exhibits. Supplements the (A) case.

Corona Beer (B) South African Breweries The Brewery Group, Denmark Kirin Brewery Co. Ltd: The Dry Beer War

HBSP # 9-502-037 2p J&S, p897 J&S, p950 IMD061 (IMD) 23p

Mexico, United States; beer; 1997

Japan; brewing; $1,300 billion Japanese yen revenue; 1988

Kirin Brewery Co. Ltd: (B) Revised

IMD076 (IMD) 12p

Japan; beer; $31 billion Japanese yen revenues; 19781989

South African Breweries in Tanzania

Stanford University # IB22 24p

Tanzania; beer brewing and distribution; $150 million revenues; 2,000 employees; 1994-1998

In response to being challenged in its home market by a smaller rival, Kirin Brewery, Japan's leading brewer, rejuvenated its lager beer and launched three new products, including a dry beer to compete with Asahi Breweries' enormously successful Super Dry. Shortly after launch of Kirin Dry, two other major Japanese brewers also introduced dry beers. Kirin executives must now develop a strategy for the 1989 beer season. Sales of Asahi Brewery's Super Dry are booming. Kirin Brewery's share of market is declining rapidly. Mr. Tani was recently appointed as new general manager of Kirin's Beer Division, with the mission to respond to Asahi's challenge. Other competitors have now joined the beer war between Kirin and Asahi. Kirin must now fight on several fronts. Mr. Tani has to decide on an appropriate strategy for Kirin. This is a revised version of an earlier case. In January 1994, Danie Niemandt, general manager for South African Breweries operations in Tanzania, must determine how his company should respond to the entry of a new competitor in its market--East African Breweries. South African Breweries has executed a successful turnaround of the brewery operations in Tanzania. East African Breweries is backed by Guinness plc, one of the world's largest beer brewers, and Guinness has committed itself to investing the resources necessary to build a leading presence in the Tanzanian market. The challenge facing South African Breweries in Tanzania illustrates the challenge the company faces in many of its international markets. The company

has built its international strategy around its operational expertise, but must now adjust to the entrance of well-funded global beer competitors in several of its international markets. Teaching Purpose: Intended for use in a course on international business and strategy. Highlights how a company applies the skills and knowledge developed in its domestic market to form an effective international strategy, the challenges of operating in an emerging market, and the competitive shifts facing a company in an emerging market as the market opportunity attracts outside competitors. Chapter 9 Matching Dell HBSP # 9-799-158 31p Global; personal computers; Fortune 500; $19 billion revenues; 1998 After years of success with its vaunted "Direct Model" for computer manufacturing, marketing, and distribution, Dell Computer Corp. faces efforts by competitors to match its strategy. This case describes the evolution of the personal computer industry, Dell's strategy, and efforts by Compaq, IBM, Hewlett-Packard, and Gateway 2000 to capture the benefits of Dell's approach. Students are called on to formulate strategic plans of action for Dell and its various rivals. Teaching Purpose: Designed to be taught in any of several places in an MBA course on competitive strategy. Permits an especially detailed examination of imitation; illustrates how fit among activities and incompatibilities between competitive positions can pose particularly high barriers to imitation. Can also be employed to illustrate competitor analysis, the evolution of industry structure, and relative cost analysis. Dell Computer Corp. is one of the largest computer manufacturers in the world. The company's international business strategy has supported its global position and performance facing the Asian economic crisis. Its investment in Malaysia reduced its foreign exchange exposure and supported its low-cost advantage. Now Dell must decide whether to expand its commitment in Malaysia and/or other locations, such as China. On May 1, 1992, Doug Friesen, manager of assembly for Toyota's Georgetown, Kentucky, plant, faces a problem with the seats installed in the plant's sole product--Camrys. A growing number of cars are sitting off-line with defective seats or are missing them entirely. This situation is one of several causes of recent overtime, yet neither the reason for the problem nor a solution to it is readily apparent. As the plant is an exemplar of Toyota's famed production system (TPS), Friesen is

Dell Computer Corp: Investment in Malaysia as a Global Strategic Tool

Richard Ivey School of Business # 903M19

Malaysia; computers; large; 2001

Toyota Motor Manufacturing U.S.A., Inc

HBSP # 9-693-019 22p

Georgetown, KY; autos; large; $1-5 billion revenues; 4,000 employees; 1992

Jack Smith (A): Career Launch at Toyota (B) and (C)

HBSP # 9-604-057 9p (A) #9-604-059

Georgetown, KY; autos; large; $1-5 billion revenues; 4,000 employees; 1992

Jack Smith (B): Becoming a Toyota Manager (I)

HBSP # 9-604-059 3p

North America; automobile; $100 billion revenues; 100,000 employees; 2002

Jack Smith (C): Becoming a Toyota Manager (II)

HBSP # 9-604-060 4p

North America; automobile; $100 billion revenues; 100,000 employees; 2002

determined that, if possible, the situation will be resolved using TPS principles and tools. Students are asked to suggest what action(s) Friesen should take and to analyze whether Georgetown's current handling of the seat problem fits within the TPS philosophy. Teaching Purpose: 1) Provide comprehensive knowledge on Toyota Production System, 2) Exercise advanced root cause analysis, and 3) Demonstrate the totality of manufacturing, especially the link between production control and quality control.. On May 1, 1992, Doug Friesen, manager of assembly for Toyota's Georgetown, Kentucky, plant, faces a problem with the seats installed in the plant's sole product--Camrys. A growing number of cars are sitting off-line with defective seats or are missing them entirely. This situation is one of several causes of recent overtime, yet neither the reason for the problem nor a solution to it is readily apparent. As the plant is an exemplar of Toyota's famed production system (TPS), Friesen is determined that, if possible, the situation will be resolved using TPS principles and tools. Students are asked to suggest what action(s) Friesen should take and to analyze whether Georgetown's current handling of the seat problem fits within the TPS philosophy. Teaching Purpose: 1) Provide comprehensive knowledge on Toyota Production System, 2) Exercise advanced root cause analysis, and 3) Demonstrate the totality of manufacturing, especially the link between production control and quality control.. Jack Smith had a stellar career at Chrysler managing major design teams and manufacturing plants before deciding to join industry leader and benchmark Toyota. It is his first day on the job; what will his orientation entail? Cursory walkthroughs and introductions before assignment to a job commensurate with his experience and accomplishments or something else to acclimate him to Toyota's unique management approach? Teaching Purpose: To think deeply about corporate acculturation, capability development, and the role of managers in complex organizations where improvement and problem solving are critical to success. Jack Smith had a stellar career at Chrysler managing major design teams and manufacturing plants before deciding to join industry leader and benchmark Toyota. It is his first day on the job; what will his orientation entail? Cursory walkthroughs and introductions

before assignment to a job commensurate with his experience and accomplishments or something else to acclimate him to Toyota's unique management approach? Teaching Purpose: To think deeply about corporate acculturation, capability development, and the role of managers in complex organizations where improvement and problem solving are critical to success. Chapter 10 Crafting a Vision at Daimler-Chrysler Richard Ivey School of Business # 902C06 United States; transportation equipment; large; 1998 Chrysler and Daimler-Benz shareholders approved the largest corporate merger in history. After months of talks, the chairman of the German-based Daimler-Benz management board and the chairman and CEO of the U.S.-based Chrysler Corp. were preparing for when the two companies would officially combine forces to create the fifth largest automobile company in the world. These two managers were officially charged with the responsibility of amalgamating two enterprises that were vastly different from each other. Chrysler was known for its efficient production and economically priced vehicles. Daimler-Benz sold only luxury vehicles, and its reputation was based on craftsmanship, quality, and safety. Chrysler executives were in the habit of limiting business expenses; Daimler-Benz executives were not. Between the two companies, there were huge discrepancies in cultures, market segments, product lines, salaries, and attitudes. Aware of the excitement of their investors and the concern of their critics, the two leaders are expected to forge and promote the vision on which DaimlerChrysler will base its future. Centers on the historic merger of Daimler-Benz AG and Chrysler Corp. and the subsequent quest for integration. The subtexts to this central issue include a comparison and contrast of the operating cultures and business processes of the two companies as well as their histories, positions within the auto manufacturing industry, and corporate values and image. Also introduces the dynamics of integrating the leadership of two companies. Using "what if" scenarios, students can explore the roles of the senior managers in the merger, its execution, and the subsequent integration attempts. Gives students an opportunity to envision and develop an integration strategy. Best suited for studies in strategic management, corporate entrepreneurship, global management, leadership, and change management or organizational behavior.

DaimlerChrysler Merger: The Quest to Create "One Company" (A)

Babson College # BAB041 27p

Automotive

DaimlerChrysler Merger: The Quest to Create "One Company" (B) The DaimlerChrysler Merger (A): Gaining Global Competitiveness

Babson College # BAB042 4p IMD # IMD130 20p

Automotive

Supplements the (A) case.

Europe, United States, Global; automotive, transportation; 400,000 employees; 1995-1998

DaimlerChrysler: The Post-Merger Integration Phase

IMD # IMD121/2 22p

USA, Germany; automotive, transportation; large; 1998

Provides an overview of current trends in the global automotive industry and a description of DaimlerBenz AG and Chrysler Corp. prior to the merger. Describes this first transatlantic merger, raising the issues of strategic positioning, potential trade-offs, and competitive moves. Teaching Purpose: To discuss and evaluate the challenges companies face in this hypercompetitive market. Provides an inside view on how the former Daimler-Benz and Chrysler companies organized their integration efforts following their May 1998 merger, the first truly transatlantic merger in history and, at the time, the largest ever. As such, this merger presents an unusually broad array of management issues that were both unprecedented in scope and rather unique, ranging from cross-cultural management and global strategy and implementation to international M&A alliances and change management. Describes a journey that started during the early 1980s, until the events that preceded the DaimlerChrysler merger, outlining the key strategic, organizational, and execution challenges facing both companies.

BMW Automobiles Chapter 11 Nike Inc: Entering the Millennium

J&S, p886 HBSP # 9-299-084 15p Global; sports footwear & apparel; Fortune 500; $9.5 billion revenues; 23,000 employees; 1998 Traces the evolution of Nike from 1987 through 1998. Through a series of eight assignment questions, it examines how the company has created and sustained a competitive advantage, and how that competitive advantage is reflected in growth, profitability, and share price performance. Describes the transition of Nike from 1990 to 1993 as it sees major growth opportunities in foreign markets. Describes Nike's performance to 1994 and describes challenges facing the new president and COO, Thomas Clarke. In 1998, Nike's earnings and sales growth slowed. Management faced new competition from Adidas. This case asks students to review the various strategies (including diversification into sports equipment) pursued by Nike to resuscitate corporate growth. Teaching Purpose: To discuss how to address a flattening growth curve in a corporation accustomed to high growth. Explores Bob Woodell's tenure as Nike's first COO. Describes development of Woodell's

Nike, Inc. in the 1990s (A): New Directions Nike, Inc. in the 1990s (B): Strategy and Management Changes--1993-94 Nike, Inc. in the 1990s (C)

HBSP # 9-595-102 8p HBSP # 9-595-103 5p HBSP # 9-598-119 8p

Global; footwear; $4 billion revenues; 1990-1993 Global; footwear; $4 billion revenues; 1993-1994 Global; footwear; $4 billion revenues; 1993-1994

Nike in Transition (A): The Ascendancy of Bob

HBSP # 9-392-105 17p

Beaverton, OR; athletic footwear; large; $920 million

Woodell

revenues; 4,000 employees; 19831984

Nike in Transition (B): Phil Knight Returns

HBSP # 9-392-106 22p

Beaverton, OR; athletic footwear; large; $877 million revenues; 3,000 employees; 19841987

management style, his attempts to develop the organization, and his responses to unforeseen business problems. Changing market forces, new competitors, a build-up of lowend inventory, and the absence of Phil Knight, the company's founder, in daily operations, make this a difficult time for Nike. Against the backdrop of disappointing financial results and an upcoming shareholders' meeting, students are asked to assess Woodell's performance, whether management is truly in control of the organization and the company's business, and what role Knight should be playing in the organization. After returning to the CEO/COO job, Phil Knight makes changes to Nike's strategy, organization, and management between 1983 and 1987 aimed at making Nike more responsive to the market place. He takes cost-cutting measures, and experiments with several management and organizational changes. After much strife within the company, Knight ends up with a hybrid matrix, a new group of managers, and a new strategy. Has Knight made the right choices? Has he squashed Nike's entrepreneurial culture? Is Nike poised for recovery? Traces the birth and development of 3M Corp., focusing in particular on the origins of its entrepreneuriallybased ability to innovate. In particular, it highlights the role of CEO William L. McKnight in creating a unique set of values, policies, and structures to nuture and develop continuous renewal. With the changing environment of the 1980s, however, a new generation of CEOs begin to adopt the policies and change the cultural norms that helped 3M grow. The trigger issue focuses on what other changes are required. Teaching Purpose: To show how culturally embedded organizational behavior can become a sustainable source of competitive advantage and to show how such strong cultures can and should be adjusted to new internal and external realities. Describes the development of the international strategies and organizations of two major competitors in the global consumer electronics industry. The history of both companies is traced and their changing strategic postures and organizational capabilities are documented. Particular attention is given to the major restructuring each company is forced to undertake as its competitive position is eroded. Teaching Purpose: Illustrates how global competitiveness depends on

3M: Profile of an Innovating Company

HBSP # 9-395-016 20p

United States; high technology products; Fortune 500

Philips vs. Matsushita: A New Century, a New Round

HBSP # 9-302-049 20p

Global, Europe, Japan; consumer electronics; large; $40 billion-$60 billion revenues; 270,000 employees; 1970-2001

organizational capability, the difficulty of overcoming deeply embedded administrative heritage, and the limitations of both classic "multinational" and "global" models. A rewritten version of an earlier case. Chapter 12 Ford Motor Co.'s Value Enhancement Plan (A) HBSP # 201-079 17p Dearborn, MI; automobiles; Fortune 500; $162 billion revenues; 335,000 employees; 2000 In April 2000, Ford Motor Co. announced a shareholder Value Enhancement Plan (VEP) to significantly recapitalize the firm's ownership structure. Ford had accumulated $23 billion in cash reserves and under the VEP would return as much as $10 billion of this cash to shareholders. In exchange for each share currently held, the plan would give stockholders one new share plus the choice of receiving $20 either in cash or additional new Ford common shares. Shareholders electing to receive cash would be taxed on these distributions at capital gain rates. Among other things, the plan provided a means for the Ford family to obtain liquidity without having to dilute their 40% voting interest (even though they own only 5% of the shares outstanding.) Students must wrestle with the following questions: Why was Ford proposing this transaction instead of a traditional share repurchase or a cash dividend? How did the interests of the Ford family factor into this decision, and what did the transaction imply about the future involvement of the family in the company? Why was Ford distributing such a significant amount of cash at this particular point in time? Did the distribution signal a change in the company's appetite for making acquisitions or future capital expenditures? If shareholders collectively elected to receive less than $10 billion in cash, how would Ford distribute the remaining cash? Teaching Purpose: Provides a rich setting in which to discuss one of the most basic decisions corporations face: how to return cash to shareholders. It is a vehicle for discussing corporate financial policies and capital structure decisions--particularly as they relate to cash dividends and share repurchases--in a context where corporate control questions and the interests of multiple constituencies must be understood. Ford Motor Co. reports improved profitability, but an equity analyst issues a sell recommendation and Standard & Poor's downgrades longterm debt. Teaching Purpose: To analyze earnings growth quality. Supplements the (A) case.

Ford Motor Co.: Quality of Earnings Growth Analysis (A)

HBSP # 9-104-059 25p

United States; automotive; $150 billion revenues; 2003

Ford Motor Co.: Quality of Earnings Growth Analysis (B) A Hundred-Year

HBSP # 9-104-063 2p HBSP

United States; automotive; $150 billion revenues; 2003 United States and

Through their competitive battle,

War: Coke vs. Pepsi--1890s-1990s

# 9-799-117 21p

global; beverages; Fortune 500

Strategic Countermoves: Coca-Cola vs. Pepsi

HBSP # 9-795-133 6p

United States; carbonated beverages; Fortune 500; 1986 United States; carbonated beverages; Fortune 500; 1986

Internationalizing the Cola Wars (A): The Battle for China and Asian Markets Chapter 13 McDonalds Corp. (Condensed)

HBSP # 9-795-186 6p

Coca-Cola and PepsiCo have created stable and highly profitable duopoly in the U.S. soft drink industry. As the domestic industry matured and the cola wars moved to international markets, Coke and Pepsi tried to redesign their competitive strategies as well as the vertical structure of their corporations. Teaching Purpose: 1) How the industry structure evolves as a result of competitive interactions of firms, and 2) How the vertical structure of the firm changes in response to the economic conditions. A rewritten version of an earlier case by Michael E. Porter and David B. Yoffie. Describes strategic acquisitions by Coca-Cola and Pepsi-Cola in the late 1980s. The context allows students to evaluate the implications of the mergers for the competitiveness of the industry. Describes strategic acquisitions by Coca-Cola and Pepsi-Cola in the late 1980s. The context allows students to evaluate the implications of the mergers for the competitiveness of the industry. Describes the operating system of McDonald's, the world's most successful fast food chain. The case does not have a decision focus; it is designed for use with Burger King Corp. Students are asked to compare the operating systems of these two fast food hamburger chains. Careful analysis will detect the subtle and not so subtle differences between the two operating systems selected by these two firms. Describes the operating system of a Burger King unit. The case does not have a decision focus; it is designed for use with McDonald's Corp. Students are asked to compare the operating systems of these two fast food hamburger chains. Careful analysis will detect the subtle and not so subtle differences between the two operating systems selected by these two firms. A major U.S.-based fast food company with extensive operations around the world was contemplating whether to enter the Korean market. The Korean fast food market was hit badly by the Asian economic crisis in the late 1990s, but the economy was turning around. Thus, fast food demand in Korea was expected to increase. For the industry analysis, this case provides information on various competitors, substitute foods, new entrants, consumers, and suppliers. Also includes social issues as potential forces. Noli Tingzon, newly-appointed international division VP at Jollibee, the Philippines-based hamburger

HBSP # 9-681-044 15p

New England; fast food; 1980

Burger King Corp

HBSP # 9-681-045 15p

New England; fast food; 1980

American fast food in Korea

Richard Ivey School # 903M16 14p

Korea; fast food; large; 2000

Jollibee Foods Corp. (A): International Expansion

HBSP # 9-399-007 23p

fast food; $250 million revenues; 1987-1997

J&S, p808

chain, is faced with the challenge of expanding fast food operations in Asia in the face of stiff competition. The case describes Jollibee's six-year international expansion history and the lessons the company has learned. Against this background, Noli must decide among expansion opportunities in New Guinea, Hong Kong, and California. United States; Internet and media; 88,500 employees; 2000-2001 AOL Time Warner, which has been billed as the "first fully integrated media and communications company of the Internet Century," raises the fundamental question of how value will be created and captured by the merger of AOL and Time Warner. This case describes just how different AOL was from Time Warner in strategy, culture, and execution, and permits a thorough analysis of how value is proposed to be created through capturing synergies within the new company. The discussion of synergies is divided into three levels: tactical, strategic, and transformational. The key question to address is whether a merger of this sort is the most effective way to create value or whether contracting and other mechanisms is equally good-perhaps, superior. Teaching Purpose: Evaluating the synergies for the AOL Time Warner merger. A rewritten version of an earlier case. On January 11, 2000 AOL Time Warner announced their intention to merge, creating what AOL CEO Stephen Case and Time Warner CEO Gerald Levin called the 21st century's first fully integrated communications, media, and entertainment company. This case, prepared from public sources, enables in-depth analysis of the value of AOL Time Warner from the viewpoint of executives and analysts before their merger 6 months later. Teaching Purpose: To discuss the challenges of identifying the value of a company during periods of market, industry, and business turbulence.

News Corporation AOL Time Warner Inc.

J&S, p808 HBSP # 9-702-421 29p

Valuing the AOL Time Warner Merger

HBSP # 9-802-098 38p

United States; entertainment telecommunications; $33 billion revenues; 50,000 employees; 2001

Global Media

News Corporation

Lynch 3rd Edition Lecturers Guide Lynch 3rd Edition Lecturers Guide Stanford University # SM113 23p 2003 In 2003, Nokia was the dominant maker of cell phones around the world. It had more than twice the global handset market share of its closest competitor, Motorola. While in a position of strength in 2003, the company faced large challenges in the immediate future. For example,

Chapter 14 Nokia Beyond 2003: A Mobile Gatekeeper?

Nokia Corp: Innovation and Efficiency in a high growth global firm

Stanford University # IB23 38p

Espoo, Finland; telecommunications; $19,954 million revenues; 51,177 employees; 19922000

the so-called third generation (3G) of mobile technology was experiencing a slow arrival and uncertain consumer reception. In addition, there was uncertainty about which type of 3G technology would dominate. Perhaps a larger strategic issue for Nokia, however, was its plan for its operating system. In the past, other handset makers were willing to adopt Nokia's popular handset operating system. By 2003, however, Microsoft has entered the market with its own mobile operating system. As mobile devices become more robust, e.g., incorporating web-enabled phones with PDAs, the importance of mobile operating systems increases. How can Nokia contend with the entry of the extremely well-funded Microsoft into its core market? Teaching Purpose: To discuss the strategic options open to Nokia as it faces new competitors in a rapidly changing technology environment. Nokia Corp. is a global telecommunications company that in eight years went from a nearbankrupt conglomerate to a global leader in mobile telephony, delivering almost 30% annual compound growth in revenues during 1992-2000 while shedding businesses that had accounted for almost 90% of its 1998 shares. By spring 2000, Nokia had the highest margins in the mobile phone industry, a negative debtequity ratio, the most valuable nonU.S. brand in the world, Europe's highest market capitalization, a presence in 140 countries, and unique corporate structures, processes, and culture that gave it the feel of "a small company soul in a big corporate body." Along with growth in size and diversity, however, came growth in complexity. Nokia had to develop multiple businesses and technologies (while dealing with the great technological uncertainties that were inherent in the convergence of mobile telephony and the Internet). It also had to manage a growing network of alliances and a number of acquisitions, mostly in the United States. This case provides the background to the issues Nokia faces as it considers how to meet these challenges while maintaining its unique company values and way of working that made it possible to execute efficiently while continuing to innovate. Teaching Purpose: To explore the challenges of innovating while maintaining a focus on efficient operations, to explore the challenges of rapid growth in a technologically turbulent environment, and to explore the challenges of globalization from a narrow national base.

Birds Eye and the U.K. Frozen Good Industry (A) and (B)

HBSP # 9-792-074 (A) 19p HBSP # 9-792-078 (B) 3p

United Kingdom; frozen food; large; L 420 million revenues; 19461984

Proctor & Gamble: Global Business Service

HBSP # 9-404-124 15p

Global; consumer products; $40 billion revenues; 98,000 employees; 2001

Proctor & Gamble Italy: The Pringles Launch (A)

HBSP # 9-601-070 33p

Rome, Italy; food; $38 billion revenues (global); 110,000 employees; 19981999

Describes the forty-year evolution of the U.K. frozen food industry, and traces the emergence, dominance, and the decline of Birds Eye. Its success is as a vertically integrated producer, distributor, and marketer of frozen foods that pioneers the industry in the U.K. Its decline as other firms enter all stages of the value chain is seen as a result of its earlier success that yields it an unsustainable strategic position. Examines vertical integration as a strategy, the analytic rationale to be vertically integrated, and the disadvantages of vertical integration. Dave Walker, vice-president of business service opportunities and chairman of the governance team at Procter & Gamble, must decide what to do with P&G's 5,700 employee Global Business Services (GBS) group. GBS brought together internal services such as finance, accounting, employee services, customer logistics, purchasing, and information technology into a single, global organization supporting all P&G business units. Recently, P&G CEO A.G. Lafley questioned whether continued investment in GBS represented the best use of P&G's resources. Walker and the other members of the governance team must decide whether to spin off GBS, outsource GBS services to an outside company, outsource the GBS divisions separately to best-of-breed companies, or keep the group inhouse. In making the decision, Walker and the members of the team must consider the impact on the organization of altering the existing relationships between the members of GBS and the other employees at P&G. Teaching Purpose: To consider the issues inherent in any decision to outsource services and the impact of such a change on the company. Procter & Gamble's (P&G) Pringles potato chips have been a very successful brand. This case reviews the development and launch in the United States, then in markets around the world. Italy is one of the last countries for Pringles. Should P&G Italy use the successful launch strategy used throughout Europe, or devise its own? Teaching Purpose: Launch strategy/marketing mix in a different country context.

Chapter 15 Ericsson and the creation of mobile telephones KPN Telecoms Ericsson in China: Mobile Leadership

J&S, p605 J&S, p659 HBSP # 9-700-012 27p China; telecommunications Focuses on Ericsson in the Chinese mobile phone market--the company's largest single market, and one that is still growing at rates in excess of

Make Yourself Heard: Ericssons Global Brand Campaign

IMD # IMD040 20p

Europe, global; mobile phones; large; 1998

Bharti TeleVentures

HBSP # 9-704-426 26p

India; telecommunications; $642 million revenues; 5,000 employees; 2003

50%. Permits comparison of two distinct ways of entering the Chinese market: by forming joint ventures with local competitors or with a WFOE (wholly foreign-owned enterprise) structure. But the bulk of the case is devoted to changes in the Chinese market and in mobile phone technology, and the threats that they pose to the sustainability of existing competitive advantages as well as the new opportunities that they open up. Ericsson, the Swedish telecommunications products and systems company, is embarking on a first-ever global advertising campaign for its brand of mobile phones. The idea for consumer brand building, new to an otherwise technologyoriented, industrial company, has come about as a result of developments in the worldwide market for cellular phones: fast growth, entry of new consumer segments, declining product differentiation, and the growing pressure on prices and margins. The expensive campaign, aiming to cement a relationship with consumers, is notable for a total absence of product-related communication. Under the slogan "Make yourself heard," the ads feature a gallery of faces and a range of situations demonstrating the spirit of communication between people around the world. Some of the issues the case raises are: How do you build a strong brand for a product that is increasingly difficult to differentiate? Can pure brand values stand on their own merits without any references to products? What criteria should you use to evaluate advertising execution? A 2001 ECCH award winner. Following the liberalization of India's telecommunications service industry in the early 1990s, Bharti TeleVentures grew from a small entrepreneurial telephone equipment importer and manufacturer to become India's largest private-sector telecommunications service group in terms of numbers of customers. Attracting over $1.2 billion in foreign equity investments, more than any other Indian telecom firm, by 2001 Bharti had achieved the country's leading market position in mobile telecom service. By 2003, however, the nature of the game had changed. A spate of mergers and acquisitions had reduced the field to the most successful and best-financed contenders. At the same time, telecommunications regulatory changes let in new, lower priced competitors, significantly altering the rules of the game. Suddenly, in addition to government-owned BSNL

Honda (A)

HBSP # 9-384-049 9p

Japan, United States; motorcycles; large; 1948-1974

Honda (B)

CMR Forum: The "Honda Effect" Revisited

California Management Review # CMR065 41p

and the stately Tata Group, India's oldest business house, Bharti was up against Reliance, the largest and most profitable of a new generation of business groups. Bharti's management and equity partners at Mittal and his partners at SingTel and Warburg Pincus had to determine what to do next. Teaching Purpose: Explore challenges and opportunities for entrepreneurial companies in a newly deregulated and highly competitive industry where rivals include large domestic business groups, foreign multinationals, and state-owned incumbents. Describes the history of Honda Motor Company from its beginning through its entry into and subsequent dominance of the U.S. market. The history is explained primarily in terms of strategic factors and quoted from two sources: an earlier case and Boston Consulting Group report on the motorcycle industry. Should be used with Honda (B). Perhaps no other article published in the management literature has had the impact of Richard Pascale's piece on the "Honda Effect" that was published in the Spring 1984 issue of the California Management Review. This now classic article has stimulated considerable debate over the role and value of corporate strategy in business decision making--which is the subject of this forum. This special collection of essays includes an abridged version of Pascale's original article ("Perspectives on Strategy: The Real Story Behind Honda's Success"), an exchange of correspondence between Henry Mintzberg and Michael Goold, and new essays by Richard Rumlet, Michael Goold, and Richard Pascale, who revisits his own original article as well as this whole debate. In 1994, Sony's European operation moved to centralize its organization to improve operating efficiencies, implement pan-European marketing, and develop a unified position vis-avis Sony headquarters in Japan. In this transition, the powerful local country organizations lost much of their autonomy in key decision areas. Informally referred to as Big Bang, the radical organizational change ran into trouble almost from the beginning. This case provides the background to the organizational change, including important market forces that are reshaping the consumer electronics market in Europe. Teaching Purpose: To illustrate the management challenges involved in moving from a decentralized country management structure to a pan-regional

Chapter 16 Sony Europa (A), (B) and (C)

IMD # IMD057 31p, IMD058 5p and IMD059 2p

Europe, Japan; consumer electronics; 10 billion Deutschmarks revenues; 1994

General Motors Corporation (A) Overview, (B) and (C)

HBSP # 9-299-006 3p # 9-299-007 8p #9-299-008 9p

Global; automobiles; Fortune 500; $164 billion revenues; 647,000 employees; 1990-1996

The General Motors Corp. (D): 1993-96

HBSP # 9-299-009 17p

Global; automobiles; Fortune 500; $164 billion revenues; 647,000 employees; 1993-1996

Asea Brown Boveri (Condensed)

HBSP # 9-199-027 6p

Sweden; electrical equipment; large; $17.8 billion revenues; 150,000 employees; 1987

ABB in the new Millenium: New Leadership, New Strategy, New Organization

IMD # IMD128 11p

Global; energy, electrical power; $25 billion revenues; 1997-2000

centralized organization as well as to raise issues about the management of radical change. To discuss global marketing, marketing implementation, and change management. A 1999 EFMD award winner. This four-part case series details the financial policies and practices at The General Motors Corp. (GM) from 1990 to 1996. This case provides a brief introduction to GM. Teaching Purpose: Enables students to examine how different financial policies and practices in a firm complement one another and how these policies are coordinated by firms. This four-part case series details the financial policies and practices at The General Motors Corp. (GM) from 1990 to 1996. This case describes the set of financial decisions taken by the firm as its business recovered, and focuses on an immediate decision faced by GM's treasurer in 1996. He must decide whether to recommend to the board whether to hold "excess" cash, disburse it to shareholders via a dividend increase, or repurchase shares. In addition, the repurchase alternative offers a number of tactical choices, including whether to engage in a put-writing program or an accelerated share repurchase. Teaching Purpose: Enables students to examine how different financial policies and practices in a firm complement one another and how these policies are coordinated by firms. Permits a discussion of the strategic decision about holding or disbursing cash, plus the tactical decision of whether to use various forms of financial engineering in conjunction with a repurchase program. The merger of Asea AB and BBC Brown Boveri required a restructuring of operations and a change in organizational cultures. Competitive success also necessitated the benefits of scale while remaining "local" for political and customer-responsiveness reasons. The case describes these competitive pressures, which resulted in the decision to adopt a matrix organization. Teaching Purpose: To be used with Asea Brown Boveri: The ABACUS System to discuss the efforts to restructure while retaining the benefits of being "local," "small," and decentralized. Takes an inside look at ABB's unprecedented 1997 to 2000 transformation under Gvran Lindahl, the second CEO of this electrical engineering powerhouse, who succeeded Percy Barnevik during late 1996. After a highly successful first decade of existence under Barnevik

(1988 to 1996), ABB found itself in the midst of a crisis by the end of 1997, after the combined effects of global deregulation, radical technological innovations, and an unpredictable but sweeping financial crisis across most emerging markets. ABB's response was to shift its strategic focus radically to favor knowledge- and service-based offerings across all of its businesses. The company's implementation of such strategy took place in two bold steps. The first one comprised a major global restructuring of ABB, as a result of which the company divested from mature manufacturing businesses such as power generation and transportation and became a global leader in areas such as industrial process automation and electrical distribution solutions. The second step was to transform ABB into a fast-growing high-technology company, moving from old to new economy Internet-based services and solutions. The case contains two mini-cases in ABB distribution solutions and ABB's global information systems group--two instances that show first-hand the pains of rapidly transforming a vast, manufacturing concern into an Internet- and solutions-based powerhouse as the new millennium unfolds. Chapter 17 Real Madrid Club de Futbol HBSP # 9-504-063 24p Spain; sports; $233 million eurodollars; 850 employees; 2004 In June 2004, Florentino Perez, a well-known Spanish businessman, was elected president of Real Madrid, one of the world's top soccer clubs. In his campaign, Perez had promised to turn around the club's finances, bring in world-class talent, and extend the club's brand around the world through multiple channels. As reelection looms four years later, his management team reflects on initiatives to date and challenges ahead as described in the case. Also describes the soccer industry and the trends transforming it. Teaching Purpose: To evaluate Real Madrid's brand management strategy and to consider the risks and opportunities involved. Also, to recommend a strategy for the future expansion of the brand worldwide. MasterCard must decide whether to renew the sponsorship of the World Cup and other soccer events in light of a 100% increase in the sponsorship fee and a strategic realignment by MasterCard. Teaching Purpose: 1) Demonstrates typical sponsorship deal. 2) Shows how sponsorship can be evaluated. 3) Examines place of sponsorship in marketing mix. A rewritten version of an earlier case. Describes Canon's worldwide strategy

Mastercard International: World Championship Soccer Sponsorship

HBSP # 9-500-036 21p

Global; financial services; $651 million revenues; 3,000 employees; 1998-1999

Canon Inc.:

HBSP

Multinational;

Worldwide Copier Strategy

# 9-384-151 21p

copiers; 1983

Desktop Printer Industry in 1990

HBSP # 9-390-173 24p

United States; desktop computer printers; 1990

Strategy Planning at Sun Life

HBSP # 9-301-084 21p

Toronto, Canada; financial services; $1.3 billion revenues; 1,300 employees; 2000

in the copier business. Designed to be used to explore strategy formulation in a worldwide industry, and the principles of international competition. The desktop printer industry in 1990 is characterized by significant uncertainty about new technologies and about the types of features customers may demand in the next decade. The case looks at the positions of Hewlett-Packard, Canon, Kodak, Xerox, and IBM enabling students to consider different approaches competing firms may take to manage strategic risks in a rapidly changing, high technology industry. Describes the firm's strategic planning activities and focuses on the challenge of developing processes that enable the firm to improve the core business as well as processes that foster the creation of promising new business opportunities. Teaching Purpose: To teach students about how to design different types of strategy formulation to accomplish different objectives.

Financial Planning at Hanson Plc Chapter 18 The HP-Cisco Alliance (A)

Lynch 3rd Edition Lecturers Guide HBSP # 9-403-120 21p United States, Global; information technology; $101 billion revenues; 165,000 employees; 2002 In 2002, Hewlett-Packard and Cisco Systems strive to develop their longstanding partnership into a strategic alliance with increasing impact. Critical components of successful alliance implementation emerge from the analysis. Specifically, the case illuminates the link between alliance strategy, formal design of alliance structure and processes, and informal management of interpersonal dynamics where trust, perceptions, and emotions can both create and overcome formidable obstacles to effective interfirm relationships. Teaching Purpose: Strategy implementation in alliances, power and influence in interorganizational relations, interplay of formal organizational design, and informal interpersonal dynamics. Supplements the (A) case.

The HP-Cisco Alliance (B)

HBSP # 9-404-040 3p

AOL, Cisco, Yahoo!: Building the Internet Commons

HBSP # 9-302-088 23p

United States, Global; information technology; $101 billion revenues; 165,000 employees; 2002 Silicon Valley, CA, Washington, D.C.; nonprofit; 15 employees; 2002

Since the spring of 2001, AOL, Cisco, and Yahoo! had collaborated on ways to improve the effectiveness of using the Internet to benefit society. Each company considered itself strongly committed to philanthropy, making significant charitable donations, and fostering a variety of active community outreach programs. Yet, executives at the three firms

Cisco China

HBSP # 9-302-069 17p

China; networking; $1 billion revenues; 700 employees; 2001

Cisco Systems: Building Leading Internet Capabilities

HBSP # 9-301-133 26p

Silicon Valley, CA; high technology; Fortune 500; $25 billion revenues; 35,000 employees; 2001

Cisco Systems: Are You Ready (A) and (B)

HBSP # 9-901-002 28p HBSP # 9-901-003

Sunnyvale, CA; Internet equipment; Fortune 500; $12 billion revenues; 20,000 employees; 1999

Cisco Systems, Inc.: Managing Corporate Growth Using an Intranet

Richard Ivey School of Business # 97E018 13p

United States; electronics; large; 1997

recognized the potentially larger impact that a joint effort could have on the greater public good. Overcoming a multitude of barriers to such intercompany cooperation, the firms decided to create Network for Good, a charity portal that individuals and nonprofit agencies in the ephilanthropy space could use to facilitate donations, volunteering, and citizen advocacy. Teaching Purpose: Demonstrates corporate leadership in the social sector, analyzes challenges in developing a multicompany collaboration for social good. Designed to show how Cisco has taken its U.S.-based infrastructure and applied it to China. It is stunning in its impact as one notes how so much of what is being done in the United States in terms of the intranet has been transferred to China. Teaching Purpose: To sensitize the class to global information technology transfer issues. The timing that Cisco has used to transfer its intranet technology to China and customize it is stunning. Cisco has invested in building a leading IT, Internet-based infrastructure. This case describes Cisco's latest efforts to broaden Internet capabilities in the company from 30% penetration to 60%. The Internet capabilities strategy is intended to sustain Cisco's doubledigit revenue growth through the decade. Teaching Purpose: To further understanding about Internet capabilities and management leadership in exploiting IT benefits. An Internet service provider, INS, in which Cisco Systems has a minority ownership stake, receives an offer of $3.1 billion from Cisco's rival Lucent. Cisco's management has to decide whether to act on a request from INS management that Cisco make a counteroffer. The decision requires that Cisco's highly successful strategy be revisited. Teaching Purpose: To illustrate: 1) the importance of the preservation of focus in strategic management, and 2) ways of coping with the rapid development of "destructive technologies." Cisco is the world's largest manufacturer and distributor of routers and switches. In order to achieve this position, it has adopted an aggressive growth strategy, acquiring companies, their employees, and new employees at a rate of 250 to 300 employees per month. The Cisco Employee Connection (CEC), a corporate intranet, is the primary means by which new employees are absorbed and acculturated. The CEC is also the principal means of interaction for the multi-functional work team approach

Cisco employs. This case critically assesses this approach to scaling an organization and the extent to which it can be maintained and transferred. Chapter 19 Rabobank Group: Leadership Role in Global Agribusiness HBSP # 9-303-421 24p Global; agribusiness, food, banking; $8.4 billion eurodollars; 2002 The largest global agribusiness bank has lost its triple A rating and is rethinking its global strategy as the leading global food and agribusiness bank. How does it position itself in the vertical value-added global food system? Teaching Purpose: The role of finance and risk management in global agribusiness. Focuses on two new product launch decisions facing Christopher Carson, managing director of BRL Hardy, Europe. Responsible for the European operations of a major Australian wine company, Carson has begun to globalize his strategy beyond selling the parent company's wines. After a difficult joint venture with a Chilean wine source, he is proposing to launch an Italian line of wines. His local team has also developed a new Australian brand that would compete directly with a parent company's global brand rollout. Teaching Purpose: Focuses on global strategy choices being made through headquarter-subsidiary negotiations that define the roles of country managers and global product managers. The venerable British retailer Marks & Spencer suffered a series of setbacks in the late 1990s. The company's performance, which had been solid for decades, quickly deteriorated, forcing the rapid turnover of chief executives and many restructurings. Perhaps the largest change the retailer made was the abandonment of its global expansion plans, withdrawing from continental Europe and trying to sell off assets in the United States, including the wellknown clothiers Brooks Brothers. This case examines the changes Marks & Spencer made between 1998 and 2001, as the company tries to shore up its ailing core business, U.K. retail, while deciding on an appropriate global strategy.

BRL Hardy: Globalizing an Australian Wine Company

HBSP # 9-300-018 20p

Australia/United Kingdom; wine; $250 million revenues; 19921998

Marks & Spencer: The DeGlobalisation of Marks & Spencer in 2001: An Update

Stanford University# SM87 11p

Global, United Kingdom; retailing; 8 billion pounds revenues; 70,000 employees; 19992001

International Strategy in the Paper and Pulp Industry What Strategy Now for SCA? Chapter 20 eBay Inc

Lynch 3rd Edition Lecturers Guide Lynch 3rd Edition Lecturers Guide HBSP # 9-700-007 32p San Jose, CA; ecommerce; $47.3 million revenues; 300 employees; 1999 eBay was the world's largest and most popular person-to-person trading community on the Internet. In early 1999, the company was doing very well and seemed to have solved many of its early problems. However, on March 30, 1999,

Yahoo: Business on Internet Time

HBSP # 9-700-013 27p

United States; Internet portals; $200 million revenues; 900 employees; 1999

A Brief History of the Browser Wars

HBSP # 9-703-517 9p

global; software; 1994-2003

Double Dealmaking in the Browser Wars (A) and (B)

HBSP #9-800-050 17p #9-800-051 4p

United States; computers/software; $300 million revenues; 700 employees; 19951997

Amazon.com announced that it was entering the online auction arena. This powerful firm could prove to be eBay's strongest competitor to date. Teaching Purpose: What should eBay do in light of the entry of its most recent and serious competitor to date. In the wake of major competitive moves, CEO Tim Koogle and his senior team at Yahoo!, an Internet portal, must decide whether and how to adjust their strategy. Following deals between AOL and Netscape, Excite and @Home, Infoseek and Disney, and Snap and NBS, Yahoo! faces the prospect of being the last portal without a significant partner. Students must grapple with the benefits and costs of integration in the rapidly changing world of the Internet. Teaching Purpose: Examines how a company organizes itself to formulate strategy in the midst of rapid environmental change. Reveals how external turbulence puts new pressures on a firm's strategy, its organizational structure, and its managers. Considers how one successful company has structured itself to cope with severe environmental uncertainty. Special emphasis is given to the interactions among Yahoo!'s functions and the effects of those interactions on firm flexibility. Also permits students to examine the structural attractiveness of the portal industry and the strength of Yahoo!'s position in the industry. Recounts the history of the evolution of browser market shares from 1994 forward. Netscape's Navigator establishes a huge early lead, but is then displaced by an equally dominant offering from Microsoft. Highlights the role of Microsoft's dominance in desktop operating systems and Microsoft's bundling of the browser with the operating system. Teaching Purpose: Supplements a fairly analytical exercise on bundling that was taught in a game theory course. Emphasizes the role of bundling in Internet Explorer's ascendancy. However, it makes no explicit reference to that exercise or discussion, making it suitable for general use. Supports a discussion of how Navigator became so dominant in addition to a discussion of bundling. A brief summary of Microsoft's legal entanglements also stimulates a discussion of antitrust considerations. Recounts two complex negotiations in which Netscape and Microsoft compete to win a browser contract with AOL--then later with KPMG. After reviewing the web and browser sectors, this case recounts AOL's

The Browser Wars 1994-1998

HBSP #9-798-094 20p

United States; software; $500 million revenues; 2,300 employees; 1994-1998

dramatic negotiations with Netscape and with Microsoft over which firm's web browser would be used by the online service. A path-breaking deal was announced between AOL and Netscape to use Navigator as the "default" AOL browser, only to be undermined the next day by an AOLMicrosoft deal that designated Microsoft Explorer as the "preferred" AOL browser. The deal also put an AOL icon, the Windows desktop, the "world's most valuable cyber-real estate." Describes the first stages of a see-saw negotiation the following year in which Netscape and Microsoft were again competing, but this time for a major deal with KPMG. Concludes as KPMG has awarded the contract to Netscape with Microsoft still scrambling to get the business. Analyzes the competition between Netscape and Microsoft in the market for Web browsers and related products. Despite its first mover advantage, Netscape sees its market share fall once Microsoft becomes "hard-core" about the Internet. By the spring of 1998, the future of both companies is on the line.

Amazon.com Chapter 21 Bertelsmann AG

J&S, p674 HBSP # 9-703-405 29p Global; media and entertainment; $14 billion revenues; 81,000 employees; 2002 On July 28, 2002, Bertelsmann announced the firing of its CEO, Thomas Middelhoff, in a move that surprised industry observers, analysts, and many employees. Bertelsmann, a privately held company headquartered in Germany, was one of the largest global media conglomerates, with businesses spanning book publishing, printing, music, and television. Between 1998 and 2002, Middelhoff had initiated a series of strategic initiatives aimed at fostering greater integration among its diverse business units and strengthening their competitive positions, articulated a series of guidelines that would reevaluate Bertelsmann's portfolio mix, and looked to prepare Bertelsmann for a transition to a planned initial public offering in 2005. This case describes these initiatives in detail and the decision of the supervisory board to effect a change in leadership. The new CEO, Gunter Thielen, had to decide whether to effect a fundamental shift in the company's corporate strategy or a more modest reinterpretation of the course charted by Middelhoff. Teaching Purpose: Provides an opportunity to examine 1) the corporate strategy of a media and entertainment conglomerate, 2) the challenges in managing strategic change within a large organization, and 3) the impact of corporate governance on corporate strategy. Includes color exhibits.

Teradyne: Managing Disruptive Change

HBSP # 9-397-112 9p

Boston, MA; semiconductor test equipment; $1 billion revenues; 19961997

Teradyne: Managing Disruptive Change

HBSP # 9-397-113 7p

Boston, MA; semiconductor test equipment; $1 billion revenues; 19961997

Teradyne: The Aurora Project KPMG (A)

HBSP # 9-397-114 J&S, p1012 Stanford University # HR22 21p

As above

Three cases deal with the introduction of a new product to Teradyne's line of semiconductor test equipment. Teradyne: Managing Strategic Change provides historic and administrative background for the other two cases. Teradyne: The Aurora Project deals with the problems facing the head of a startup division responsible for developing and bringing to market a new product based on technology deemed very important to the future but unattractive to present customers and therefore the operating divisions. This case deals with the same set of problems from the perspective of corporate management--in particular why the skunk works approach was necessary and what new problems this approach creates even if the project is successful. Teaching Purpose: To explore general management problems--in this case new product development from a strategic perspective--at corporate and middle levels of general management. Three cases deal with the introduction of a new product to Teradyne's line of semiconductor test equipment. This case provides historic and administrative background for the other two cases. Teradyne: The Aurora Project deals with the problems facing the head of a startup division responsible for developing and bringing to market a new product based on technology deemed very important to the future but unattractive to present customers and therefore the operating divisions. Teradyne: Managing Disruptive Change deals with the same set of problems from the perspective of corporate management--in particular why the skunk works approach was necessary and what new problems this approach creates even if the project is successful. Teaching Purpose: To explore general management problems--in this case new product development from a strategic perspective--at corporate and middle levels of general management. As above

Chapter 22
Transforming Human Resources at Novartis: The Human Resources Information System (HRIS) United States; pharmaceuticals; 2003 In 2003, Norman Walker, head of HR at Novartis, received approval from the management board to implement a global human resources information system (HRIS). Although Walker had made substantial progress in transforming the HR function, much of their efforts remained transactional and not strategic. If successful, the implementation of HRIS would

eBusiness@Novarti s

HBSP # 9-601-057 21p

Basel, Switzerland; pharmaceuticals; $19 billion revenues; 36,000 employees; 2001

Novartis Pharma: The Business Unit Model

HBSP # 9-101-030 21p

Switzerland; pharmaceuticals; $21 billion revenues; 70,000 employees; 2000

Hans Fritz at Novartis Thailand (A) The First Month, (B) and (C) And (D)

HBSP # 9-399-123 17p # 9-399-124 3p # 9-301-054 # 9-301-055

Thailand; pharmaceuticals; large; $21.5 billion revenues; 87,000 employees; 19981999

change the role and responsibilities of not only the HR organization but how it added value to the company. Since its formation in 1996, Dan Vasella, the CEO, had transformed the organization from one with slowmoving functional silos into a highperformance company. His goal was to make Novartis a "premier talent machine by 2005." The new global HRIS was a key element in this transformation. It was clear to Walker that this was a major organizational change effort, not simply an IT implementation. Describes the changes Walker had already made and poses a set of challenges that will need to be addressed to implement the new HRIS project. Teaching Purpose: To raise issues of HR strategy and implementation, organizational change, and the role of HR in global firms. To frame a narrow IT implementation in terms of the larger strategic issues raised when implementing large-scale system changes. Describes a leading pharmaceutical company's approach to developing ebusiness capabilities throughout the organization. Highlights the company's decision to approach ebusiness on a more centralized manner. In June 2000, Novartis reorganized its pharmaceutical business to form global business units in oncology, transplantation, ophthalmology, and mature products. The remaining products (primary care products) were managed as before within global functions (R&D), marketing, etc.) The new organization created a matrix structure and new roles and responsibilities for heads of business functions, CEOs of new business units, and country managers operating in over 100 countries. Teaching Purpose: To explore the reasons for Novartis's reorganizing into the new matrix structure, the tensions and challenges the new structure creates, and the culture and accountability needed to make the new structure work. Dr. Hans Fritz is 37 years old when he arrives in Bangkok on March 1, 1998 to assume his position as general manager of Novartis Thailand. Novartis is the world's largest pharmaceutical company. He had lobbied to transition from a staff position to this line management assignment. He encounters an organization in chaos, a demoralized staff, and a market in crisis. The case describes his first month in this new position. His most important task at this stage is to set priorities when everything needs to be done at once. He has to decide whom to trust on his

team, and what to do in the short, medium, and long term. Teaching Purpose: Describes the general manager's dilemma. Students are asked to evaluate the situation he encounters and advise him on how to proceed.