| Chapter and Title |
Chapter Matches: Case Information |
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Chapter 1:
Introduction to Strategic Management
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BARRICK GOLD CORPORATION - TANZANIAAloysius Newenham-Kahindi, Paul W. BeamishProduct Number: 9B10M020Publication Date: 10/20/2010Revision Date: 11/19/2014Length: 15 pagesThis case examines the giant Canadian mining corporation, Barrick Gold Corporation (Barrick), (called Africa Barrick Gold plc since 2009), and the way it engages in sustainable community developments that surround its mining activities in Tanzania. Following recent organized tensions and heightened criticism from local communities, media, international social lobbyists and local not-for-profit organizations (NFOs), Barrick has attempted to deal with the local communities in a responsible manner. At issue for senior management was whether there was much more that it could reasonably do to resolve the tensions.
The case considers: how MNEs seek social license and local legitimacy; the relevance of hybrid institutional infrastructures; the evolving global roles for MNEs and their subsidiaries. The case is appropriate for use in courses in international management, global corporations and society, and international development and sustainable value creation.Teaching Note: 8B10M20 (18 pages)Industry: Mining, Quarrying, and Oil and Gas ExtractionIssues: Subsidiaries; Business and Society; Corporate Social Responsibility; Cross Sector Social Partnership; Government RelationsDifficulty: 5 - MBA/Postgraduate
APPLE INC.: IPODS AND ITUNESMary M. Crossan, Ken MarkProduct Number: 9B05M046Publication Date: 8/2/2005Revision Date: 4/15/2010Length: 13 pagesApple Computer, Inc. has enjoyed tremendous market success with its digital music initiative consisting of software (iTunes), hardware (iPods and Shuffles), and content (iTunes Music Store). Highlighted is the development of the online music industry within the context of the overall music industry, the major record labels, Napster, and the Recording Industry Association of America. Students will be able to conduct an industry analysis of the music industry and determine why Apple Computer has succeeded in profiting from digital music while others have failed.Teaching Note: 8B05M46 (10 pages)Industry: Administrative, Support, Waste Management and Remediation ServicesIssues: New Economy; Strategy Implementation; Industry Analysis; Business and SocietyDifficulty: 4 - Undergraduate/MBA
CAMPBELL SOUP COMPANY LTD.Mary M. Crossan, Ken MarkProduct Number: 9B02M006Publication Date: 4/25/2002Revision Date: 12/1/2009Length: 16 pagesThe president and chief executive officer of a large food manufacturer is preparing his company's strategic agenda for the next five years. One of the top five food manufacturers in Canada, the company went public and restructured its management team six years ago. The efforts were successful, resulting in an increase in the company's market share. Recent food industry trends, however, added box stores and private label brands to the domestic competition. At the same time, the terms of the Canada-U.S. Free Trade Agreement are expected to abolish food-related tariffs within two years, opening up competition from across the border. While the company has experienced success in the past five years, the president and chief executive officer needs a strategic plan that will take the company to the next level.Teaching Note: 8B02M06 (6 pages)Industry: ManufacturingIssues: Communications; Crisis Management; Change Management; Strategy DevelopmentDifficulty: 4 - Undergraduate/MBA
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Chapter 2:
Strategic Leadership
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THE GENERICS PHARMACYJim KayalarProduct Number: 9B11M022Publication Date: 4/29/2011Revision Date: 4/11/2013Length: 16 pagesThe price of pharmaceuticals in the Philippines is second only to Japan within Asia and is among the highest in the world, despite the Philippines being a less developed country with nearly half of its population living on US$2 a day. The case illustrates how The Generics Pharmacy, a local pharmaceutical company, challenged the existing industry business model and became the largest pharmaceutical retailer in the country within a period of only three years. Under the strategic leadership of CEO Benjamin Liuson, The Generics Pharmacy succeeded in formulating a superior value proposal by focusing on the supply- and demand-side constructs at the bottom of the pyramid and bringing affordable high-quality medicines within reach of low-income individuals. Superior leadership, management, and strategic initiatives succeeded in integrating and balancing tenets of corporate social responsibility, entrepreneurial foresight, and resource-based strategy to catapult the company into a leadership position.Teaching Note: 8B11M022 (9 pages)Industry: Retail TradeIssues: Pharmaceuticals; Strategy Development; Strategic Change; Market Strategy; Leadership; PhilippinesDifficulty: 5 - MBA/Postgraduate
VICTORIA HEAVY EQUIPMENT LIMITEDTom A. Poynter, Paul W. BeamishProduct Number: 9B08M037Publication Date: 4/15/2008Revision Date: 5/18/2017Length: 12 pagesVictoria Heavy Equipment (Victoria) was a family owned and managed firm which had been led by an ambitious, entrepreneurial chief executive officer who now wanted to take a less active role in the business. Victoria had been through two reorganizations in recent years, which contributed to organizational and strategic issues which would need to be addressed by a new president.Teaching Note: 8B08M37 (7 pages)Industry: ManufacturingIssues: Growth Strategy; Organizational Structure; Leadership; DecentralizationDifficulty: 4 - Undergraduate/MBA
PARAGON INFORMATION SYSTEMSW. Glenn Rowe, John R. PhillipsProduct Number: 9B02M038Publication Date: 1/9/2003Revision Date: 3/4/2011Length: 9 pagesParagon Information Systems is a small business unit owned by NewTel Enterprises Limited that manufacturers hardware for information technology and systems integration. The newly appointed chief executive officer is faced with a crisis. Days after his appointment, two vice-presidents resign and start a new company. The new company recruits the entire sales team, members of the technical unit and support staff from Paragon Information Systems, a loss of almost one third of Paragon's staff within two months. The new chief executive officer must meet short-term stakeholder needs, assess, formulate and implement long-term strategies, deal with the competitive threat of the new company, and consider the leadership style and control systems required to make the necessary level of change.Teaching Note: 8B02M38 (7 pages)Industry: Administrative, Support, Waste Management and Remediation ServicesIssues: Leadership; Strategy Development; Strategy Implementation; Organizational ChangeDifficulty: 4 - Undergraduate/MBA
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Chapter 3:
The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis
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7-ELEVEN IN TAIWAN: ADAPTATION OF CONVENIENCE STORES TO NEW MARKET ENVIRONMENTSShih-Fen Chen, Aihwa ChangProduct Number: 9B12A011Publication Date: 3/16/2012Revision Date: 3/16/2012Length: 24 pagesThis case shows the expansion of 7-Eleven to Taiwan and the adaptation of the store format by its local franchisee to the new market environment. The core issue in this case is the balance between standardization and localization in business-format franchising across national borders. Despite keeping the store logo and convenience concept that was well established in the United States, the local franchisee of 7-Eleven in Taiwan re-formatted almost all aspects of the store chain, including its positioning, location, layout, and product offerings. In addition, 7-Eleven in Taiwan introduced a wide variety of new services for its customers, such as e-commerce (train or movie tickets), e-payment, mobile communications, pickup/delivery, and taxi services. The local franchisee, President Chain Store Corp. (PCSC), seemed to have struck the right balance between standardization and localization that allowed it to use service differentiation to gain competitive advantages over its rivals. In about three decades, it grew from zero to nearly 5,000 stores in Taiwan with over 50 per cent of the market, while expanding its reach to China and Thailand.Teaching Note: 8B12A011 (7 pages)Industry: Retail TradeIssues: Service Standardization; Localization Across Borders; Service Differentiation; Service Marketing; International Franchising; Taiwan; CNCCU/IveyDifficulty: 4 - Undergraduate/MBA
LOBLAW COMPANIES LIMITEDCharlene Zietsma, Ramasastry ChandrasekharProduct Number: 9B04M082Publication Date: 1/28/2005Revision Date: 9/21/2011Length: 20 pagesThe president of Loblaw Companies Limited must decide what to do in response to the rumoured introduction of Wal-Mart's SuperCenters (combining grocery and non-food items) in Canada. The potential launch of SuperCenters in Canada was seen by observers as a threat to Loblaw, the market leader in Canadian grocery. Wal-Mart is a vigorous competitor, and the Every Day Low Prices strategy of Wal-Mart's SuperCenters could wean away traffic from Loblaw's various banners.Teaching Note: 8B04M82 (8 pages)Industry: Retail TradeIssues: Food and Drug; Industry Analysis; CompetitionDifficulty: 4 - Undergraduate/MBA
AMERICAN FAST FOOD IN KOREAPaul W. Beamish, Jae C. Jung, Hun-Hee KimProduct Number: 9B03M016Publication Date: 4/2/2003Revision Date: 10/22/2009Length: 12 pagesA major U.S.-based fast food company with extensive operations around the world was contemplating whether or not they should 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. In addition, social issues are included as potential forces.Teaching Note: 8B03M16 (15 pages)Industry: Accommodation & Food ServicesIssues: Industry Analysis; Market Entry; Fast Food; International BusinessDifficulty: 4 - Undergraduate/MBA
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Chapter 4:
The Internal Organization: Resources, Capabilities, and Core Competencies
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VALUE CHAIN DEVELOPMENT: CARE KENYA’S CHALLENGE TO MAKE MARKETS WORK FOR THE POOR (A)Kevin McKagueProduct Number: 9B12M033Publication Date: 4/17/2012Revision Date: 4/17/2012Length: 9 pagesThis case examines how CARE, a non-profit international development organization, begins to pursue a market-based approach to meeting its poverty-reduction mission. Specifically, a CARE project manager explores how previous work with low-income livestock herders in drought-prone eastern Kenya might offer an opportunity to work with value chain actors to improve access to markets and increase farmers’ incomes.
With the Kenyan livestock project as the pilot for this new approach, Case (A)’s main decision point concerns a strategic choice on what role CARE should play in the value chain to support low-income pastoralists. Options include 1) becoming directly involved in value chain transactions, buying and selling livestock, and providing inputs to farmers or 2) acting as a value chain facilitator to provide the information and incentives to existing actors to make the value chain more efficient and inclusive for low-income producers. This strategic decision is part of a larger proposal that students are tasked to create for CARE’s market-based livestock project.Teaching Note: 8B12M033 (13 pages)Industry: Agriculture, Forestry, Fishing and HuntingIssues: Value Chain; Social Entrepreneurship; Non-profit Organization; Agriculture; Market Analysis; Kenya; AfricaDifficulty: 4 - Undergraduate/MBA
NOKIA LIFE TOOLS: A STRATEGIC INNOVATION TO TAP INTO INDIA'S RURAL AND NEWLY URBAN POPULATIONAriff Kachra, M.B. Sarkar, Kirti Madhok SudProduct Number: 9B11M055Publication Date: 5/24/2012Revision Date: 10/19/2012Length: 24 pagesThe vice president and managing director of Nokia India needed to decide whether to undertake an all-India launch of Nokia’s newest service offering for emerging markets, called Nokia Lifetools (NLT). The NLT pilot was very successful, with consumer adoption and retention rates over 70 per cent. However, offering services and applications that came directly loaded onto a handset was new for Nokia, put it in direct competition with service providers, and required the company to develop a very different distribution strategy. It could not avoid the important stakeholders in the telecommunication value chain as they were also crucial partners whose cooperation was key to Nokia’s success. Successfully launching NLT in India could shift the telecommunications industry globally. The decision facing the vice president was likely one of the most important business decisions he would ever make.Teaching Note: 8B11M055 (9 pages)Industry: Information, Media & TelecommunicationsIssues: Value Chain; Industry Analysis; Financial Projections; Core Competence; Action Planning and Implementation; Telecommunications; IndiaDifficulty: 4 - Undergraduate/MBA
STARBUCKSMary M. Crossan, Ariff KachraProduct Number: 9A98M006Publication Date: 5/14/1998Revision Date: 5/10/2017Length: 23 pagesStarbucks is faced with the issue of how it should leverage its core competencies against various opportunities for growth, including introducing its coffee in McDonald’s, pursuing further expansion of its retail operations, and leveraging the brand into other product areas. The case is written so that students need to first identify where Starbucks competencies lie along the value chain, and assess how well those competencies can be leveraged across the various alternatives. It also provides an opportunity for students to assess what is driving growth in this company. Starbucks has a tremendous appetite for cash since all its stores are corporate, and investors are betting that it will be able to continue its phenomenal growth, so it needs to walk a fine line between leveraging its brand to achieve growth while not eroding it in the process. This is an exciting case that quickly captures the attention of students.Teaching Note: 8A98M06 (13 pages)Industry: Accommodation & Food ServicesIssues: competitiveness; industry analysis; growth strategy; core competence; coffeeDifficulty: 4 - Undergraduate/MBA
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Chapter 5:
Business-Level Strategy
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CUMI INDIA'S GLOBAL STRATEGY: THE CHINA PUZZLESubramaniam Ramnarayan, Charles Dhanaraj, Krithiga SankaranProduct Number: 9B13M023Publication Date: 4/24/2013Revision Date: 4/23/2013Length: 16 pagesCarborundum Universal Murugappa International (CUMI) was a leading abrasives manufacturing company based in India with global operations in Russia, South Africa and China. In the global abrasives business, China held 50 per cent of the raw materials for the industry. China was also the largest market for abrasives worldwide and was expected to contribute to one third of the global demand for abrasives. CUMI had the vision to become a global leader in the abrasives industry within 10 years. It had successfully expanded operations in Russia and South Africa, where it was seen more as a partner than a conqueror in its acquisition strategy. In 2006, the company entered China through a joint venture with a Chinese state company but subsequently bought out the partner. However, the company was facing several problems with its stand-alone operation there, especially in terms of maintaining its workforce and hiring local managers. It was clear that winning market share in China was necessary, but the complexity of the Chinese market had proven to be a challenge. The managing director had to present a strategy for working successfully in China to the board.Teaching Note: 8B13M023 (22 pages)Industry: ManufacturingIssues: Internationalization strategy; mode of entry; joint venture; Russia; South Africa; China; IndiaDifficulty: 5 - MBA/Postgraduate
WESTJET LOOKS EASTJ. Nick Fry, Rod E. WhiteProduct Number: 9B00M036Publication Date: 9/25/2000Revision Date: 1/11/2010Length: 15 pagesThe management team at WestJet was reviewing its growth plans in light of an anticipated merger of Air Canada and Canadian Airlines. The merger would result in a near monopoly of domestic air travel in Canada and a new set of opportunities and challenges for the handful of smaller airlines in the country. Under the circumstances, WestJet was considering whether it should shift from its focus of building on its success in Western Canada and expand into the East. The management team must analyze how fast and how significant an entry would be necessary from a competitive standpoint, how fast and how significant an entry the company could digest, and in the longer term, WestJet's prospects when competing against Air Canada and others.Teaching Note: 8B00M36 (16 pages)Industry: Transportation and WarehousingIssues: Competition; Strategic Scope; Strategic PlanningDifficulty: 4 - Undergraduate/MBA
WALL STREET JOURNAL: PRINT VS. INTERACTIVEAmy J. HillmanProduct Number: 9A99M030Publication Date: 10/28/1999Revision Date: 1/18/2010Length: 13 pagesOne of Dow Jones & Company's most respected brands, The Wall Street Journal, is threatened by Internet news providers, including their own Interactive Edition. The company is unsure whether the Interactive Edition will be a substitute or a complement to the Print Edition. The case focuses on changing industry boundaries, new technology, potential cannibalization, and a threat to the company's traditional business model. Industry analysis of both print and interactive publishing is discussed, as is resource leveraging across the two formats.Teaching Note: 8A99M30 (11 pages)Industry: ManufacturingIssues: Product Strategy; Industry Analysis; Business Policy; InternetDifficulty: 4 - Undergraduate/MBA
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Chapter 6:
Competitive Rivalry and Competitive Dynamics
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BEANZ VERSUS STARBUCKS: PERSONALITY IN A CUP!Edward Gamble, Peter W. Moroz, Stewart Thornhill, Haley BeerProduct Number: 9B12M051Publication Date: 5/15/2012Revision Date: 5/14/2012Length: 14 pagesBeanz Espresso Bar is located in downtown Charlottetown, Prince Edward Island, Canada. It is operating in a market with high rivalry (11 other coffee businesses in a two-block radius). The economy in Prince Edward Island has seen several diners, restaurants, and coffee shops close their doors within the past few years, while simultaneously drawing in large corporate businesses such as Starbucks and Running Room. Beanz has thus far survived the major environmental changes and managed to keep its clientele and the owners, Lori and Doug, feel it is time to either sell Beanz and leave the industry, or exploit their competitive advantages to grow and capture more market share. Beanz specializes in high-quality, baked-from-scratch food and specialty coffee beverages. The café is known for its artistic vibe, warm atmosphere, and eccentric staff. After operating Beanz for 16 years, the couple has made few changes to the decor, menu, the set-up. Internally, the company faces several issues concerning management control systems, marketing, and strategic direction. Lori and Doug must choose between five different directions for the future of Beanz.Teaching Note: 8B12M051 (7 pages)Industry: Accommodation & Food ServicesIssues: Business Valuation; Growth Strategy; Exit Strategy; Environmental Analysis; Service Industry; Small Business; Coffee; CanadaDifficulty: 4 - Undergraduate/MBA
COMPETITION AND CHANGE IN THE HONG KONG MOBILE TELECOM INDUSTRYTony S. Frost, Nigel GoodwinProduct Number: 9B05M044Publication Date: 7/15/2005Revision Date: 10/1/2009Length: 12 pagesThis note examines Hong Kong's deregulated telecommunications industry from both industry and public policy points of view in March 2005. In recent years, the industry had been viewed as a model of deregulation and free enterprise, offering high quality service to consumers at a low price. However, the industry conditions were exceedingly challenging for the operators. Cutthroat competition had resulted in low margins and a high degree of fragmentation. The operators faced new challenges in the form of disruptive technology, new market opportunities in mainland China and the possibility of new competition at home. This note allows students to examine the determinants of industry structure, the goals and mechanisms of industry regulation, and market and non-market strategies that firms may use to respond to market conditions.Teaching Note: 8B05M44 (6 pages)Industry: Information, Media & TelecommunicationsIssues: Managing Industry Change; Telecommunication Technology; Market Structure; Competition; NanyangDifficulty: 4 - Undergraduate/MBA
HEWLETT-PACKARD IN 2001Charlene Zietsma, Ken Mark, Jordan MitchellProduct Number: 9B04M083Publication Date: 12/20/2004Revision Date: 10/15/2009Length: 14 pagesHewlett-Packard hired a new chief executive officer in 1999 to lead them into the future. The company, despite a strong legacy of success, had been faltering since the late 1990s, with slow sales growth and declining profitability. Industry observers felt that HP was not responding appropriately to competitive threats in its server, printer and personal computer markets. Industry conditions were also worsening, suggesting hard times ahead. The CEO felt a dramatic move was required to improve HP's position in the market. An attempt to expand HP's IT services business through the acquisition of PriceWaterhouseCoopers was unsuccessful. The CEO was considering a merger between HP and Compaq. With the help of four role plays supplements, 9B04M085 - Hewlett-Packard: Sun Microsystems in 2001, 9B04M086 - Hewlett-Packard: Dell in 2001, 9B04M087 - Hewlett-Packard: IBM in 2001 and 9B04M088 - Hewlett-Packard: Lexmark in 2001, student groups take on the roles of competitors in various segments and plan their competitive strategy while Hewlett-Packard is dealing with the merger. The supplement 9B04M084 - Hewlett-Packard in 2004 concludes the Hewlett-Packard in 2001 case series.Teaching Note: 8B04M83 (11 pages)Industry: ManufacturingIssues: Competition; Computer Industry; Mergers & Acquisitions; Strategic PositioningDifficulty: 4 - Undergraduate/MBA
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Chapter 7:
Cooperative Strategy
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CIBC MELLON: MANAGING A CROSS-BORDER JOINT VENTUREPaul W. Beamish, Michael SartorProduct Number: 9B10M091Publication Date: 11/5/2010Revision Date: 5/24/2012Length: 15 pagesDuring his 10-year tenure, the president and CEO of CIBC Mellon had presided over the dramatic growth of the jointly owned, Toronto-based asset servicing business of CIBC and The Bank of New York Mellon Corporation (BNY Mellon). In mid-September 2008, the CEO was witnessing the onset of the worst financial crisis since the Great Depression. The impending collapse of several major firms threatened to impact all players in the financial services industry worldwide. Although joint ventures (JVs) were uncommon in the financial sector, the CEO believed that the CIBC Mellon JV was uniquely positioned to withstand the fallout associated with the financial crisis. Two pressing issues faced the JV’s executive management team. First, it needed to discuss how to best manage any risks confronting the JV as a consequence of the financial crisis. How could the policies and practices developed during the past decade be leveraged to sustain the JV through the broader financial crisis? Second, it needed to continue discussions regarding options for refining CIBC Mellon’s strategic focus, so that the JV could emerge from the financial meltdown on even stronger footing.Teaching Note: 8B10M91 (15 pages)Industry: Finance and InsuranceIssues: Financial Crisis; Joint Ventures; Leadership; Alliance Management; Managing Multiple Stakeholders; Canada; United StatesDifficulty: 4 - Undergraduate/MBA
NORA-SAKARI: A PROPOSED JV IN MALAYSIA (REVISED)Paul W. Beamish, R. Azimah AinuddinProduct Number: 9B06M006Publication Date: 11/30/2005Revision Date: 5/23/2012Length: 16 pagesThis case presents the perspective of a Malaysian company, Nora Bhd, which was in the process of trying to establish a telecommunications joint venture with a Finnish firm, Sakari Oy. Negotiations have broken down between the firms, and students are asked to try to restructure a win-win deal. The case examines some of the most common issues involved in partner selection and design in international joint ventures.Teaching Note: 8B06M06 (12 pages)Industry: Information, Media & TelecommunicationsIssues: Intercultural Relations; Third World; Negotiation; Joint Ventures; Finland; MalaysiaDifficulty: 4 - Undergraduate/MBA
EURO-AIR (A)Paul W. BeamishProduct Number: 9A99M015Publication Date: 6/24/1999Revision Date: 1/18/2010Length: 7 pagesA North America-based representative of a major European airline has just received a letter from an unhappy customer detailing a very large number of service problems. A quick check had revealed that this premium-paying customer's complaints were all valid. A meeting is planned with the customer. Before this, the airline representative must decide (A) what to say in response, and (B) what, if any, compensation should be offered. Internally, there was a need (C) to resolve what their organization should learn from this experience, both from a subsidiary and parent company perspective, and the implications on their participation in the Crown Alliance. This case raises many important questions regarding service recovery, communications, and non-equity alliances.Teaching Note: 8A99M15 (11 pages)Industry: Transportation and WarehousingIssues: Alliances; Service Quality; Compensation; CommunicationsDifficulty: 4 - Undergraduate/MBA
BEN & JERRY'S - JAPANJames M. HagenProduct Number: 9A99A037Publication Date: 4/13/2000Revision Date: 5/23/2017Length: 17 pagesThe CEO of Ben & Jerry's Homemade, Inc. needed to give sales and profits a serious boost; despite the company's excellent brand equity, it was losing market share and struggling to make a profit. The company's product was on store shelves in all U.S. states, but efforts to enter foreign markets had only been haphazard with non-U.S. sales accounting for just three per cent of total sales. The CEO needed to focus serious attention on entering the world's second largest ice cream market, Japan. An objective of Ben & Jerry's was to use the excess manufacturing capacity it had in the U.S., and it found that exporting ice cream from Vermont to Japan was feasible from a logistics and cost perspective. The company identified two leading partnering options. One was to give a Japanese convenience store chain exclusive rights to the product for a limited time. The other was to give long-term rights for all sales of the product in Japan to a Japanese-American who would build the brand. For the company to enter Japan in time for the upcoming summer season, it would have to be through one of these two partnering arrangements.Teaching Note: 8A99A37 (6 pages)Industry: ManufacturingIssues: Strategic Alliances; Market Entry; International Marketing; Corporate StrategyDifficulty: 4 - Undergraduate/MBA
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Chapter 8:
Corporate-Level Strategy
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GREEN-TECH: BIO-FUELS HIGH GROWTH STRATEGYFederico M. Berruti, Heng-Yih (Gordon) LiuProduct Number: 9B11M123Publication Date: 1/20/2012Length: 12 pagesGreen-Tech Inc., a Canadian company founded in 2006, was dedicated to developing, manufacturing, and marketing portable and stationary systems for the production of bio-oils and bio-char from biomass residues and wastes. Green-Tech was a recent spinoff from a large university research centre with a very good reputation for providing bio-energy solutions. Although focused and well positioned, Green-Tech had to manage relationships with large companies such as Shell that controlled vast and complete supply chains of oil-related businesses, as well as small firms and clients that were unable to manage their waste effectively. Large firms could provide plenty of business opportunities for Green-Tech, but could also jeopardize the company’s autonomy. Small customers on their own might not bring in enough cash flow, but could give Green-Tech sufficient freedom to pursue its own strategic goals. Both relationships seemed to lead to a promising future for this entrepreneurial start-up company, but also created serious risks. At the time of the case in 2011, Fernando Bruteque, vice president and one of the principal engineers of Green-Tech, was seeking the appropriate growth approach for Green-Tech. Being in charge of business operations, Bruteque also had to maintain a balance between research and development (R&D), investor and client concerns, and business opportunities. What would be the appropriate growth strategies and business operation strategies for a resource-constrained firm such as Green-Tech? How should it proceed?Teaching Note: 8B11M123 (10 pages)Industry: Professional, Scientific, and Technical ServicesIssues: Bio-fuels; Renewable Energy; Research and Development; CanadaDifficulty: 4 - Undergraduate/MBA
KTM: QUEST FOR GROWTHCharlene Zietsma, Iris Fischlmayr, Rob WongProduct Number: 9B06M060Publication Date: 5/12/2006Revision Date: 9/21/2009Length: 18 pagesKTM was a leading sport motorcycle company based in Austria with sales internationally. In 2005, the company was considering expanding into all terrain vehicles (ATVs), a market which was experiencing mid to high double-digit sales growth with healthy operating margins. There were several options open to KTM to expand into the ATV market, including internal development, acquisition of another firm with capabilities in the area of allying with an ATV manufacturer. The chief executive officer had to consider the fit of the ATV business with KTM's core business as well as the implications of the various options for ATV market entry on maintaining control of KTM, achieving KTM's growth objectives, and effectively exploiting the ATV opportunity in an international context. This case allow students to determine how best to pursue a related market to maximize revenue and cost synergies, learning, and control of the firm. This case can be used with KTM: Ready to Race, product 9B05M036.Teaching Note: 8B06M60 (15 pages)Industry: ManufacturingIssues: Growth Strategy; Acquisitions; Alliances; GlobalizationDifficulty: 4 - Undergraduate/MBA
SANDVIK AB (A)Rod E. White, Robin Teigland, Julian M. BirkinshawProduct Number: 9A98M012Publication Date: 1/12/1999Revision Date: 1/29/2010Length: 25 pagesThe CEO of the Sandvik Group is reviewing the initiatives he implemented to increase the synergies between the six disparate businesses of the Sandvik Group. Specific measures taken by Sandvik's management to increase the level of synergy between the businesses are outlined. In search for synergy, management has experienced many problems and challenges. The main challenge is how to avoid a re-centralization of power while at the same time encouraging employees to act with regard to both their business and the group. The case closes with the CEO wondering how further changes could be made to expand and sustain the search and exploitation of synergies within the Sandvik group. This case can be used as an advanced corporate strategy case, to illustrate concepts such as diversification, synergies, and parenting advantage. It can also be used as a management of change case by putting emphasis on the actions the CEO can take to achieve his stated goals. A follow-up case (9A98M013) is available.Teaching Note: 8A98M12 (8 pages)Industry: ManufacturingIssues: Change Management; Diversification; Strategic Scope; SynergyDifficulty: 5 - MBA/Postgraduate
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Chapter 9:
Acquisition and Restructuring Strategies
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REINVENTING THE SAN MIGUEL CORPORATION (B)Roberto Galang, Andrew Karl DeliosProduct Number: 9B12M079Publication Date: 9/17/2012Revision Date: 9/17/2012Length: 9 pagesThis supplement to Reinventing the San Miguel Corporation (A) provides a brief update on the diversification strategy pursued by the company.Teaching Note: 8B09M74 (9 pages)Industry: ManufacturingIssues: Diversification; Acquisition Strategy; International Strategy; Strategy Execution; Philippines; MalaysiaDifficulty: 4 - Undergraduate/MBA
CARLSBERG IN EMERGING MARKETSMichael W. Hansen, Torben Pedersen, Marcus M. LarsenProduct Number: 9B11M009Publication Date: 3/23/2011Length: 12 pagesRisking becoming the target of a hostile takeover or being cornered as a small regional player in the global beer industry, the Danish brewery Carlsberg decided in the early 2000s to expand into rapidly growing emerging markets to pursue new arenas of growth. By 2008, this strategy had paid off, and Carlsberg was positioned among the five largest breweries in the world. In the Russian market — one of the fastest-growing markets in the world — Carlsberg had become the market leader. In China — the world’s largest beer market in terms of size and population — the company had achieved a 55 per cent market share in Western China, and operated 20 brewery plants with approximately 5,000 employees. The ambitious acquisition strategy applied in emerging markets had become essential to Carlsberg’s business in relation to future growth and profits. Accordingly, the case focuses on Carlsberg’s entry into China, which started as a commercial failure in the eastern part of the country, but subsequently developed successfully in the west.Teaching Note: 8B11M009 (15 pages)Industry: ManufacturingIssues: Acquisition Strategy; Global Strategy; Emerging Markets; Marketing Management; Beer Industry; Denmark; ChinaDifficulty: 4 - Undergraduate/MBA
RAYOVAC CORPORATION: INTERNATIONAL GROWTH AND DIVERSIFICATION THROUGH ACQUISITIONSRavi Sarathy, David T.A. WesleyProduct Number: 9B06M025Publication Date: 2/16/2006Revision Date: 9/21/2009Length: 18 pagesThe Rayovac case discusses the company's bold and risky acquisitions strategy as it diversifies into personal care and grooming, lawn and garden care, insecticides and pet foods. The company assumes it can successfully manage diverse product categories across diverse geographic markets in which it has limited experience. Success will depend on how well the acquired companies are integrated and managed under Rayovac's supervision. Increasingly, it will also depend on external conditions beyond Rayovac's control, such as macroeconomic conditions and foreign exchange fluctuations. Students should be able to analyze the case from the point of view of international business and strategy and perform a financial analysis of potential future returns using different assumptions for sales growth and margins of the various businesses acquired.Teaching Note: 8B06M25 (13 pages)Industry: ManufacturingIssues: Risk Analysis; Diversification; Acquisition Strategy; Globalization; NortheasternDifficulty: 4 - Undergraduate/MBA
CEMEX: THE SOUTHDOWN OFFERRavi Sarathy, David T.A. WesleyProduct Number: 9B03M013Publication Date: 4/2/2003Revision Date: 10/21/2009Length: 21 pagesCemex, a cement multinational from Mexico, has become one of the three largest cement companies in the world, through internal growth and a series of global acquisitions over the 1999 to 2000 period. It is a relatively small player in the United States with insignificant market share. It has had conflicts with the U.S. cement industry over its cement exports to the United States, being the object of a successful anti-dumping suit brought by the U.S. cement industry before the International Trade Commission. One of its key opponents is Southdown which has testified before the USITC against Cemex. Southdown's chief executive officer is unhappy with his firm's stock price and frustrated by the lack of market recognition despite profitable operations and growth. He is considering selling his company and has talked with Cemex about being acquired. The case allows students to analyze the strategic rationale for an acquisition of Southdown by Cemex, and has information to allow students to probe questions of strategic fit and value.Teaching Note: 8B03M13 (8 pages)Industry: ManufacturingIssues: Developing Countries; International Business; Anti-Dumping Action; Acquisitions; NortheasternDifficulty: 4 - Undergraduate/MBA
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Chapter 10:
International Strategy
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MORITA'S LEGACY AND INTERNATIONAL STRATEGY AT SONYChristopher Williams, Nicole Duncan, Gregoire Thomas, Christopher Held, Ami LebendikerProduct Number: 9B12M082Publication Date: 8/17/2012Revision Date: 11/19/2012Length: 19 pagesTwo years after the death of Sony’s visionary founder, Akio Morita, chief executive officer Noboyuki Idei faced a major crisis. Sony had just posted its worst performance in years and had to figure out if its current strategy needed to change. In pursuit of Morita’s vision to bring entertainment to the masses through innovation and applied technology, Sony had grown from a small Japanese company to a US$50-billion-per-year global corporation. As it entered the new millennium without its founder, Idei realized that the success Sony had enjoyed in the 1990s was being challenged in the global marketplace. With increasing global competition and in the midst of a recession, the company’s net income was far below expectations. The situation would probably worsen if Sony failed to make immediate strategic changes, including changes to its international strategy. Idei had experienced firsthand the success Sony enjoyed in the 1990s as it expanded its product lines and international presence. By April 2001, after reviewing the previous year’s financial performance, Idei knew Sony was fighting an uphill battle. All that Morita had worked towards, particularly in the 1990s, was suddenly being threatened. Idei faced a critical decision going forward. Sony was a company that still strove to embody its founders’ vision, but could he dare go against his predecessor’s approach and pursue a new international strategy?Teaching Note: 8B12M082 (8 pages)Industry: ManufacturingIssues: Financial Performance; Company's Vision; International Strategy; JapanDifficulty: 4 - Undergraduate/MBA
ELI LILLY IN INDIA: RETHINKING THE JOINT VENTURE STRATEGYCharles Dhanaraj, Paul W. Beamish, Nikhil CellyProduct Number: 9B04M016Publication Date: 5/14/2004Revision Date: 3/13/2017Length: 18 pagesEli Lilly and Company is a leading U.S. pharmaceutical company. The new president of intercontinental operations is re-evaluating all of the company's divisions, including the joint venture with Ranbaxy Laboratories Limited, one of India's largest pharmaceutical companies. This joint venture has run smoothly for a number of years despite their differences in focus, but recently Ranbaxy was experiencing cash flow difficulties due to its network of international sales. In addition, the Indian government was changing regulations for businesses in India, and joining the World Trade Organization would have an effect on India's chemical and drug regulations. The president must determine if this international joint venture still fits Eli Lilly's strategic objectives.Teaching Note: 8B04M16 (18 pages)Industry: ManufacturingIssues: Joint Ventures; Emerging Markets; International Management; Strategic AlliancesDifficulty: 4 - Undergraduate/MBA
HUXLEY MAQUILADORAPaul W. Beamish, Jae C. Jung, Joyce MillerProduct Number: 9B02M033Publication Date: 11/29/2002Revision Date: 6/28/2011Length: 14 pagesA senior manager in a U.S. manufacturing firm must make a recommendation about whether 57 labour intensive jobs should be moved from the existing California plant to a new facility in a Mexican maquiladora. If the Mexican opportunity is pursued, decisions are also required regarding the entry mode (subcontracting, shelter operator or wholly-owned subsidiary) and location (border or interior).Teaching Note: 8B02M33 (7 pages)Industry: ManufacturingIssues: Corporate Strategy; Plant Location; Third World; SubsidiariesDifficulty: 4 - Undergraduate/MBA
GLOBAL BRANDING OF STELLA ARTOISPaul W. Beamish, Anthony GoerzenProduct Number: 9B00A019Publication Date: 10/19/2000Revision Date: 5/23/2017Length: 19 pagesInterbrew had developed into the world's fourth largest brewer by acquiring and managing a large portfolio of national and regional beer brands in markets around the world. Recently, senior management had decided to develop one of their premium beers, Stella Artois, as a global brand. The early stages of Interbrew's global branding strategy and tactics are examined, enabling students to consider these concepts in the context of a fragmented but consolidating industry. It is suitable for use in courses in consumer marketing, international marketing and international business.Teaching Note: 8B00A19 (10 pages)Industry: ManufacturingIssues: Global Product; International Business; International Marketing; BrandsDifficulty: 4 - Undergraduate/MBA
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Chapter 11:
Corporate Governance
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KROHNE'S ENTRY INTO THE CHINESE MARKETTaohua Ouyang, Meiying Yang, Zhi Xu, Ling Ding, Tang Yao, Miao CuiProduct Number: 9B13M039Publication Date: 5/8/2013Revision Date: 4/22/2013Length: 8 pagesKrohne Inc. of Germany separately established a joint venture, a wholly owned sales company and a manufacturer in China. Unfortunately, although the sales channels were different, the product lines of the joint venture and the wholly owned manufacturer overlapped. The two companies were therefore competing and unsure about which company rightfully represented the parent enterprise. In addition, the two investment parties were battling for control of the joint venture.Teaching Note: 8B13M039 (15 pages)Industry: ManufacturingIssues: Market entry; emerging market; equity recovery; ChinaDifficulty: 5 - MBA/Postgraduate
GOVERNANCE CHALLENGES AT GOOD HANDS HEALTHCARE (A)Amy J. Hillman, Marilyn SeymannProduct Number: 9B04M019Publication Date: 6/24/2004Revision Date: 10/13/2009Length: 12 pagesGood Hands Healthcare is a large nursing home provider with more than 400 facilities across the United States. This case series looks at the governance issues facing the board of a firm with declining performance set within the eldercare industry. The (A) case revolves around whether to replace the chief executive officer, who founded and built the firm, due to poor performance. The supplements, Governance Challenges at Good Hands Healthcare (B), (C) and (D), products 9B04M020, 9B04M021 and 9B04M022, discuss the replacement decision, the selection decision and the change in strategy brought on by the new CEO.Teaching Note: 8B04M19 (7 pages)Industry: Health Care ServicesIssues: Corporate Governance; Succession Planning; Compensation; Strategic ChangeDifficulty: 4 - Undergraduate/MBA
CCL INDUSTRIES INC.: BUILDING AND MAINTAINING AN EFFECTIVE BOARDLawrence G. Tapp, Trevor HunterProduct Number: 9B02M045Publication Date: 1/10/2003Revision Date: 12/3/2009Length: 11 pagesCCL Industries Inc. is one of the top packagers of consumer products in the world. Over its 50-year history the company had grown from a small room to a multinational firm employing 7,500 people with over $1.6 billon in sales. CCL faces an uncertain environment that had already led to a major strategic reorientation when its plan to sell its largest division was cancelled. A global economic slowdown and lower consumer confidence coupled with extensive international operations, significantly increased the risk to CCL's sales and already slim profits. In the past, the company prospered through product diversification gained through acquisition. The economic slowdown and increased uncertainty meant that this strategy may not be appropriate in the future. The chief executive officer recognizes the time, attention, advice, composition and operations of the board of directors would likely have to be altered to reflect this new reality.Teaching Note: 8B02M45 (7 pages)Industry: ManufacturingIssues: Board of Directors; Corporate GovernanceDifficulty: 4 - Undergraduate/MBA
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Chapter 12:
Strategic Entrepreneurship
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THE CHALLENGES OF INTERNATIONAL ENTREPRENEURSHIP AT EXPATICA.COMChristopher Williams, Judith vanHerwaardenProduct Number: 9B11M085Publication Date: 9/23/2011Revision Date: 5/25/2017Length: 11 pagesIn April 2011, the management team at Expatica Communications B.V. was reviewing the progress of the company and the opportunities for future growth. The management team had to take stock: the external environment was rapidly changing, and threats from competitors were on the rise. Expatica had been founded 11 years earlier to provide English-language information and news to the expatriate community in Europe, delivering its services primarily over the Internet. One of the central issues Expatica faced was how to make its core business model effective across multiple markets. Recent launches of the online platform in new countries were not as successful as hoped and the performance of traditional “bricks and mortar” offerings was also mixed. The company had made tremendous progress over the years but needed to re-evaluate its position and decide which new opportunities for growth, if any, should be pursued.Teaching Note: 8B11M085 (8 pages)Industry: Information, Media & TelecommunicationsIssues: Company Expansion; Product Development; E-Business; Expatriate Community; the Netherlands Difficulty: 4 - Undergraduate/MBA
TAVAZO CO.Paul W. Beamish, Majid Eghbali-ZarchProduct Number: 9B10M093Publication Date: 11/12/2010Revision Date: 9/21/2011Length: 13 pagesIn June 2010, Naser Tavazo, one of the three owner/manager brothers of both Tavazo Iran Co. and Tavazo Canada Co., was considering the company's future expansion opportunities, including further international market entry. Candidate cities of interest were Los Angeles, Dubai and other cities with a high Iranian diaspora. Another question facing the owners was where to focus on the value chain. Should the family business use its limited resources to expand its retailer business into more international markets, or to expand their current retailer/wholesale activities within Canada and Iran?
The objectives of this case are: (A) to discuss the typical problems that small companies confront when growing internationally and the implication of being a family business in this transition; (B) to provide a vehicle for developing criteria for market selection; (C) to highlight the importance of focus in the value chain regarding horizontal vs. vertical integration.
This case can be used in international business, strategic management or family business (entrepreneurship) courses. In international business, it may be used as an internationalization case and positioned early in the course. In a strategic management course, it might be positioned in sections dealing with managerial preferences, or diversification.Teaching Note: 8B10M93 (9 pages)Industry: Agriculture, Forestry, Fishing and Hunting, ManufacturingIssues: Market Selection; Family Business; Internationalization; Imports; Exports; SMEDifficulty: 4 - Undergraduate/MBA
BELL CANADA: THE VOIP CHALLENGERod E. White, Daniel DayProduct Number: 9B06M009Publication Date: 2/16/2006Revision Date: 3/19/2010Length: 12 pagesVoice over Internet protocol (VoIP) is beginning to disrupt plain old telephone service (POTS). Ron Close has been offered the job of heading Bell Canada's nascent VoIP business. Bell is Canada's largest telco and supplier of POTS. The case provides a platform for discussing a disruptive innovation (VoIP) and its implications for an incumbent player. Ron Close explains how Bell addressed the technology challenge, and its managerial and organizational consequences in an available video, product 7B06M009.Teaching Note: 8B06M09 (12 pages)Industry: Information, Media & TelecommunicationsIssues: Technological Change; Strategy DevelopmentDifficulty: 4 - Undergraduate/MBA
GE ENERGY MANAGEMENT INITIATIVE (A)J. Nick Fry, Julian M. BirkinshawProduct Number: 9A94G005Publication Date: 10/12/1994Revision Date: 2/4/2010Length: 8 pagesThe business development manager for General Electric (GE) Canada, met with executives from GE Supply, a US-based distribution arm of GE. The purpose of the meeting was to discuss new business opportunities in energy management and efficiency. The business development manager had identified some opportunities for business development in Canada, while leveraging GE's strategic capabilities did not fit well with GE's corporate structure. He was keen to work with GE Supply but wanted to retain a high level of operating autonomy. The challenge was to put together an appropriate organizational structure and find a home for the new development idea. (A sequel to this case is available, GE Energy Management Initiative (B). A 12-minute video may also be purchased with this case, GE Energy Management Initiative - Video.)Teaching Note: 8A94G05 (13 pages)Industry: ManufacturingIssues: Organizational Structure; International Business; MultinationalDifficulty: 4 - Undergraduate/MBA
RUSSKI ADVENTURESPaul W. Beamish, Ian SullivanProduct Number: 9A92G002Publication Date: 7/9/1992Revision Date: 3/22/2010Length: 18 pagesThe two major partners in Russki Adventures contemplated their next move. They had spent the last year and a half exploring the possibility of starting a helicopter skiing operation in Russia. Their plan was to bring clients from Europe, North America and Japan to the Caucasus Mountains to ski the vast areas of secluded mountain terrain made accessible by the use of helicopter and the recent business opportunities offered by 'glasnost'. Three options for proceeding were being considered. The first was to proceed with the venture on their own, in the Caucasus Mountains area that had been made available to them by a Soviet government agency. The second was to accept the offer of partnership with Extreme Dreams, a French tour operator that had recently begun operations in the Caucasus region. The final option was to wait, save their money and not proceed with the venture at this time. This is a good case to emphasize small-scale international ventures and the complexities of operating in a rapidly changing and politically unstable environment.Teaching Note: 8A92G02 (8 pages)Industry: Accommodation & Food ServicesIssues: Political environment; joint ventures; risk analysis; luxury servicesDifficulty: 4 - Undergraduate/MBA
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Chapter 13:
Strategic Flexibility and Real Options Analysis
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ALLIANCE MANAGEMENT AT FORBES MARSHALLNaga Lakshmi Damaraju, Harshdeep Singh Chowdhary, Dhruv Khanna, Dhruv AhujaProduct Number: 9B11M108Publication Date: 1/24/2012Length: 20 pagesThis case traces the history and growth of Forbes Marshall (FM), a family-owned company in India. FM provides steam engineering and control instrumentation solutions for the process industry. The company has evolved into a leader in process efficiency and energy conservation through technology tie-ups and focused investments in manufacturing and research. Its joint ventures with the world's leading firms enable it to deliver quality solutions in 14 countries. Forbes Marshall's business practices and processes have combined into a unified philosophy of being trusted partners who provide innovative solutions.Teaching Note: 8B11M108 (10 pages)Industry: ManufacturingIssues: Alliance Management; Corporate Strategy; Transaction Cost Economics; Real Options; Value Chain; India; Ivey/ISBDifficulty: 5 - MBA/Postgraduate
STRATEGIC CROSSROADS AT MATAV: HUNGARY'S TELECOMMUNICATIONS POWERHOUSEMichael J. Rouse, Jordan MitchellProduct Number: 9B05M033Publication Date: 5/11/2005Revision Date: 10/1/2009Length: 27 pagesIn September 2004, four months after Hungary joined the European Union, the strategy group of Matav - Hungary's largest communications company - is working on its mid-term strategic plan. Since being privatized from state ownership in 1993, the company has seen several changes in its strategy, structure and culture. Nearly 15 years later, the company is a fully integrated telecommunications company involved in a broad range of services including fixed line telephony, mobile communications, Internet services, data transmission and outsourcing. The company's latest acquisition of a formerly state run telecommunications company is considered a success, and management believes that international expansion is necessary to realize dynamic growth as its domestic fixed line business is declining. As well, Hungary's mobile market is highly competitive and saturated with 80 per cent of the country having a mobile phone. The management team feels that Matav is at a crossroads with three main options: expansion in Hungary, regional expansion or focusing on organic growth in existing product lines. The team has to consider all of the lines of business in forming a strategy and whether Matav's resources and organization are suitable for a healthy future.Teaching Note: 8B05M33 (16 pages)Industry: Information, Media & TelecommunicationsIssues: Growth Strategy; Strategy Development; International Business; Corporate StrategyDifficulty: 4 - Undergraduate/MBA
MESSAGETECH, INC.Charlene L. Nicholls-Nixon, Ellen JarmainProduct Number: 9B01M066Publication Date: 12/6/2001Revision Date: 12/22/2009Length: 19 pagesMessageTech, Inc. provides digital media technology and solutions that help clients customize advertising to their specific needs. The company's proprietary technology has the potential to revolutionize the way large, geographically dispersed retailers approach advertising and promotion by allowing clients the flexibility to customize advertising content, in real-time, to suit the conditions of each individual site. Results of beta testing indicate that clients' sales increase significantly after installation of the messageTech system. Yet, the company has been unable to close on any major sales of the system. The newly appointed chief executive officer has a mandate to commercialize the new technology. He must develop a strategy that balances the company's needs for short-term performance against the actions that will ensure a viable competitive position over the long-term.Teaching Note: 8B01M66 (11 pages)Industry: Administrative, Support, Waste Management and Remediation ServicesIssues: Strategy Development; New Venture; Generating Profit from New TechnologyDifficulty: 4 - Undergraduate/MBA
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