Ivey Publishing

Strategic Management

Saloner, G., Shepard, A., Podolny, J.,Revised (United States, Wiley, 2005)
Prepared By Derek Lehmberg, Ph.D. Student (General Management)
Chapter and Title Chapter Matches: Case Information
Chapter 1 - 2:
Introduction; Business Strategy

GRAND & TOY: STAPLES' COMPETITIVE THREAT
Mary M. Crossan, Ken Mark

Product Number: 9B01M017
Publication Date: 5/17/2001
Revision Date: 12/21/2009
Length: 14 pages

Grand & Toy is one of Canada's largest commercial suppliers of office stationery. The president of Grand & Toy is wary of the competitive threat posed by Staples, a well-known U.S. office supply company, and is reviewing his company's budget forecast to plan for a meeting with senior managers. He wants to use this opportunity to rethink the company's strategy and ensure all competitive threats and opportunities have been considered.

Teaching Note: 8B01M17 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategic Planning; Core Competence; E-Commerce; Competitiveness
Difficulty: 4 - Undergraduate/MBA



ACADEMY OF NATIONAL ECONOMY
Gevork Papiryan, Paul W. Beamish

Product Number: 9B05M042
Publication Date: 5/11/2005
Revision Date: 10/1/2009
Length: 20 pages

In 1989, the government of the USSR appointed Academician Abel Aganbegyan to the Academy of National Economy as rector. Since its foundation by the Soviet government in 1977, this educational institution educated several top managers for the Soviet economy. Since 1992, after the collapse of the Soviet Union and the start of democratic reforms, the Academy started its own transformation to the business university. The Academy is in the process of finding a new strategy choice for its further evolution, and the school's leadership must resolve both internal and external problems and stand up to the challenge of a competitive Russian business education market. The most significant issue for the Academy's leadership during the strategy development process is to redefine its mission and status-quo. There are three basic alternatives: to continue being affiliated with the government elite state educational and scientific centre with the group of relatively independent business schools; separate from these independent schools and restate its mission as a state educational and research institution affiliated with the government; or encourage the separation of the business schools and try to transform it into a Western style business school.

Teaching Note: 8B05M42 (7 pages)
Industry: Educational Services
Issues: Educational Administration; Corporate Strategy; Synergy; Strategic Alliances
Difficulty: 4 - Undergraduate/MBA



AURORA CULTURAL CENTRE
Charlene Zietsma, Geoffrey Kistruck

Product Number: 9B05M050
Publication Date: 9/22/2005
Revision Date: 10/1/2009
Length: 16 pages

The Aurora Cultural Centre's mission is to foster a more just community, globally and locally, by providing community education on diversity and cross-cultural awareness, global development issues, and immigration/refugee issues. The centre also provide housing and settlement services to new immigrants and refugees. The organization has been facing budget deficits, administrative overload, board member turnover and staff problems. A recently appointed member of the board is preparing to lead a board strategy retreat and must make recommendations on improvements to the agency's financial performance and must determine how she can convince the board members that the situation is serious and requires immediate action.

Teaching Note: 8B05M50 (10 pages)
Industry: Social Advocacy Organizations
Issues: Strategy Development; Mission Statements; Non-Profit Organization
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Competitive Advantage

SWATCH AND THE GLOBAL WATCH INDUSTRY
Allen Morrison, Cyril Bouquet

Product Number: 9A99M023
Publication Date: 5/9/2000
Revision Date: 5/23/2017
Length: 22 pages

The efforts of Swatch to reposition itself in the increasingly competitive global watch industry are reviewed in this case. Extensive information on the history and structure of the global watch industry is provided and the shrinking time horizons decision makers face in formulating strategy and in responding to changes in the industry are highlighted. In particular, the case discusses how technology and globalization have changed industry dynamics and have caused companies to reassess their sources of competitive advantage. Like other companies, Swatch faces the difficult task of deciding whether to emphasize product breadth, or focus on a few key global brands. It also must decide whether to shift manufacturing away from Switzerland to lower cost countries like India.

Teaching Note: 8A99M23 (10 pages)
Industry: Manufacturing
Issues: International Business; Industry Analysis; Competing with Multinationals; Globalization
Difficulty: 5 - MBA/Postgraduate



HARLEQUIN ENTERPRISES LTD.: THE MIRA DECISION (CONDENSED)
Rod E. White, Mary M. Crossan, Will Mitchell, Ken Mark

Product Number: 9B05M037
Publication Date: 6/14/2005
Revision Date: 10/1/2009
Length: 13 pages

Harlequin Enterprises is a well-known publisher of series romantic fiction. The company is facing threats to its leading position as the world's largest romance publisher. While Harlequin was the dominant and very profitable producer of series of romance novels, research indicated that many customers were reading as many single-title romance and women's fiction as series romances. Facing a steady loss of share, Harlequin convened a task force to study the possibility of re-launching a single title women's fiction program. Students must analyze the organization's capabilities and resources as it considers the launch of this new business line.

Teaching Note: 8B03M07 (16 pages)
Industry: Manufacturing
Issues: Strategy Development; Product Design/Development
Difficulty: 4 - Undergraduate/MBA



MAPQUEST
Paul W. Beamish, Kevin K. Boeh

Product Number: 9B04M044
Publication Date: 9/20/2004
Revision Date: 9/18/2008
Length: 22 pages

MapQuest is a leading provider of mapping services and destination information as well as a publisher of maps, atlases and other guides. On the Internet, they provide these products and services both to consumers directly and to other businesses enabling these businesses to provide location, mapping and destination information to their own customers. The company completed a successful initial public offering five years ago and were in a strong competitive position. However, the markets were allowing competitors to quickly get funding in both private and public deals. As well, there were perceptions that a general stock market bubble existed for technology companies. The chief executive officer had several options available, and wanted to consider those options and present a recommendation to the board. Possible options included splitting the firm's old and new-line business units, raising capital to fund an acquisition strategy, forging a set of alliances, focusing on organic growth, and pursuing the sale of the firm.

Teaching Note: 8B04M44 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Corporate Strategy; Strategic Alliances; Competitive Advantage; Mergers & Acquisitions
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Internal Context: Organizational Design

CHINA KELON GROUP (A): DIVERSIFY OR NOT?
Paul W. Beamish, Justin Tan

Product Number: 9B03M004
Publication Date: 2/27/2003
Revision Date: 10/21/2009
Length: 7 pages

In 1998 the soon-to-retire founder of China Kelon Group, a major home electrical appliance manufacturer, was confronting issues of market diversification (urban to rural), product diversification (refrigerator to now also produce air conditioners), and the evolution of his senior management team (from an entrepreneurial firm to one managed by professional manager). Besides offering a context to address the above issues, this case illustrate to a non-Chinese audience just how rapidly local Chinese manufacturing has developed, and that such firms are future competitors for foreign companies. It also helps students explore the broader question about the ability of founder/entrepreneurs to effectively manage the transition to becoming a larger, more diversified company. Supplement to this case is China Kelon Group (B): Integration After Merger, product number 9B03M005.

Teaching Note: 8B03M04 (7 pages)
Industry: Manufacturing
Issues: China; Emerging Markets; Diversification; Environmental Change; Strategic Change
Difficulty: 4 - Undergraduate/MBA



BOMBARDIER TRANSPORTATION AND THE ADTRANZ ACQUISITION
Allen Morrison, David Barrett

Product Number: 9B04M023
Publication Date: 5/14/2004
Revision Date: 9/21/2011
Length: 18 pages

Bombardier Transportation, one of the world's largest manufacturers of passenger rail cars, has successfully negotiated the purchase of Adtranz, a large European manufacturer of rail equipment. The newly appointed chief executive officer has been brought in to manage the acquisition. The new CEO faces many challenges including decisions about the pace of integration, location of headquarters, organization structure, personnel retention and personal management style. Students may use this case to discuss post-acquisition strategy and how fast companies should move to integrate acquisitions.

Teaching Note: 8B04M23 (13 pages)
Industry: Transportation and Warehousing
Issues: Management Decisions; Management in a Global Environment; Mergers & Acquisitions; Change Management
Difficulty: 4 - Undergraduate/MBA



VICTORIA HEAVY EQUIPMENT LIMITED - 2001
Tom A. Poynter, Paul W. Beamish

Product Number: 9B01M004
Publication Date: 1/25/2001
Revision Date: 12/21/2009
Length: 12 pages

Victoria 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: 8B01M04 (8 pages)
Industry: Manufacturing
Issues: Growth Strategy; Decentralization; Organizational Structure; Leadership
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Organization and Competitive Advantage

WORKBRAIN CORPORATION
Mary M. Crossan, Trevor Hunter

Product Number: 9B00M033
Publication Date: 10/19/2000
Length: 16 pages

Workbrain Corporation was a young firm that offered Web-based time and attendance management systems solutions to companies with a blue-collar workforce. The company was the only player in a market niche that it created, offering proprietary systems that relied on technological excellence and alliances with third party vendors. Currently, it was developing a product at the same time as it was preparing a Request for Proposal for a large potential client. Workbrain Corporation didn't have the human resources, organizational infrastructure or external alliances they needed to present the product they envisioned or grow the company into what the chief executive officer envisioned. The newly-hired vice-president of corporate development was responsible for the strategic growth of the firm both internally and externally. He was faced with the task of organizing and re-orienting the company, and needed to develop a plan to grow the company into a market-oriented organization from the project/product-oriented one it was.

Teaching Note: 8B00M33 (13 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Corporate Culture; Organizational Structure; Growth Strategy
Difficulty: 4 - Undergraduate/MBA



WESTJET: THE PEARSON DECISION
Rod E. White, Derek Lehmberg

Product Number: 9B05M054
Publication Date: 10/28/2005
Revision Date: 10/1/2009
Length: 22 pages

In early 2003, WestJet's management was reviewing its plans for growth, and specifically considering whether WestJet should move its eastern Canada base of operations from Hamilton's Munro airport to Toronto Pearson airport. WestJet had grown rapidly since its launch in 1996, and was now the second largest airline in Canada. WestJet had originally focused on Western Canada, but had entered eastern Canada in March of 2000, with an eastern base of operations in Hamilton, a secondary airport in the greater Toronto area. Pearson was Canada's largest domestic and international airport, the primary commercial airport for the greater Toronto area, and a hub of WestJet's largest competitor, Air Canada. Compared with Pearson, Hamilton was less congested and charged much lower fees. WestJet's operations had been closely modeled upon Southwest Airlines. The use of a secondary airport such as Hamilton as a base of operations was consistent with Southwest's low cost, high utilization features. With higher costs and longer turnaround times due to congestion, a base at Pearson was arguably not consistent with the Southwest business model, however, it was hard for WestJet to ignore the growth potential.

Teaching Note: 8B05M54 (25 pages)
Industry: Transportation and Warehousing
Issues: Growth Strategy; Competitor Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
External Context: Industry Analysis

NOTE ON THE CUBAN CIGAR INDUSTRY
Paul W. Beamish, Akash Kapoor

Product Number: 9B03M001
Publication Date: 2/27/2003
Revision Date: 10/21/2009
Length: 20 pages

The cigar industry in Cuba has a mythical aura and renown that give it unparalleled recognition worldwide. The relationship between Cuba and the United States makes the situation in this industry particularly intriguing. Cuban cigars cannot currently be sold in the United States, even though it is the largest premium cigar market in the world. This note provides an opportunity for a structured analysis using Porter's five forces model and to consider several scenarios including the possible lifting of the U.S. embargo and the relaxation of Cuba's land ownership laws.

Teaching Note: 8B03M01 (19 pages)
Industry: Manufacturing
Issues: Government and Business; Internationalization; International Business; Industry Analysis
Difficulty: 4 - Undergraduate/MBA



CHINESE FIREWORKS INDUSTRY
Paul W. Beamish, Ruihua Jiang

Product Number: 9A99M031
Publication Date: 10/28/1999
Revision Date: 1/18/2010
Length: 12 pages

The Chinese fireworks industry thrived after China adopted the open door policy in the late 1970s, and grew to make up 90 per cent of the world's fireworks export sales. However, starting from the mid-1990s, safety concerns led governments both in China and abroad to set up stricter regulations. At the same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price-cutting drove down profit margins. Students are asked to undertake an industry analysis, estimate the industry attractiveness, and propose possible ways to improve the industry attractiveness from an individual investor's point of view. Jerry Yu is an American-born Chinese in New York who has been invited to buy a fireworks factory in Liuyang, Hunan.

Teaching Note: 8A99M31 (15 pages)
Industry: Manufacturing
Issues: Exports; Market Analysis; International Marketing; Industry Analysis
Difficulty: 4 - Undergraduate/MBA



MONSANTO AND THE GLOBAL WATER TREATMENT INDUSTRY
Mary M. Crossan, Dusya Vera

Product Number: 9A99M040
Publication Date: 5/9/2000
Revision Date: 1/18/2010
Length: 17 pages

Monsanto, a biotechnology giant highly committed to sustainable development efforts, needs to assess the attractiveness of the drinking water treatment industry before deciding its entry to it. Four dimensions of the global water treatment industry are described: types of products and services, applications, end-users and geographical markets. The drinking water treatment segment, which is classified into municipal drinking water treatment and residential drinking water treatment, is examined in depth. Players in these two categories produce the chemicals and equipment necessary to purify tap water supplied to consumers and residential water purification devices. The bottled water industry is considered a substitute of the drinking water treatment segment. The primary objective of the case is to answer the question Is the industry attractive? and to introduce students to industry analysis and industry segmentation.

Teaching Note: 8A99M40 (21 pages)
Industry: Utilities
Issues: Environmental Business Management; Industry Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
The Spectrum of Competition and Niche Markets

KIDS MARKET CONSULTING
Paul W. Beamish, Stephanie Taylor, Oleksiy Vynogradov

Product Number: 9B04M065
Publication Date: 11/23/2004
Revision Date: 10/15/2009
Length: 8 pages

The founder of Kids Market Consulting, a market research firm dedicated to the kids, tweens and teens segment, was faced with increasing competition and slowing revenue, and was exploring a variety of possibilities for the future strategic direction of the business. In particular, she had to formulate the best plan for protecting the niche market and decide how aggressively to pursue expansion. In addition, there was the existing relationship with her business partner, and Kids Market Consulting was part of his group of marketing firms. Any changes the founder chose had to respect this relationship and she was therefore restricted to a limited number of options. The over-arching corporate objective for the company was to defend the market from larger businesses who were trying to increase their share of the market research industry.

Teaching Note: 8B04M65 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategic Change; Strategy Development; Strategic Planning; Market Analysis
Difficulty: 4 - Undergraduate/MBA



NEW CENTURY BREWING: MOONSHOT CAFFEINATED BEER
Christopher J. Robertson, David T.A. Wesley

Product Number: 9B05A014
Publication Date: 8/12/2005
Revision Date: 9/24/2009
Length: 9 pages

New Century Brewing: Moonshot Caffeinated Beer discusses the introduction of a completely new beverage to the U.S. market. New Century Brewing, which is owned by one of the founders of Boston Beer Company, is a small brewer that outsources production to third party brewers. It has two products, a light craft beer sold in upscale shops and restaurants, and a caffeinated beer, which is oriented towards younger drinkers mainly between 21 and 25 years of age. Moonshot, created by the legendary masterbrewer, known as the father of light beer, became the first caffeinated beer in the world. The company follows a differentiation strategy that attempts to appeal to a small niche of customers traditionally ignored by large brewers. Shortly after the introduction of each of its products, large competitors introduced similar products. Nevertheless, Moonshot has a first-to-market advantage that could potentially be leveraged.

Teaching Note: 8B05A14 (7 pages)
Industry: Manufacturing
Issues: Women in Management; Entrepreneurial Marketing; Competitive Advantage; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Competition in Concentrated Markets

GILLETTE'S ENERGY DRAIN (A): THE ACQUISITION OF DURACELL
Frank C. Schultz, Michael McCune

Product Number: 9B05M026
Publication Date: 1/31/2005
Revision Date: 10/1/2009
Length: 16 pages

In 1996, Gillette acquired Duracell batteries for $7.3 billion in stock. The purchase was met with optimism not only by Gillette's senior management and its highly visible director, Warren Buffet, but also Wall Street analysts. The case highlights the numerous challenges that Gillette has encountered since its acquisition of Duracell. Despite the initial enthusiasm, Duracell has proven to be a drain on Gillette's earning and has cost Michael Hawley, James Kilt's predecessor as CEO, his job after only 18 months in the position - in large part for his inability to turn around the financial hemorrhaging at the Duracell division. The key strategy questions revolve around what can be done to turn around the battery business to help it achieve the potential for Gillette that everyone had assumed it possessed. The supplement Gillette's Energy Drain (B): Energizer's Acquisition of Schick, product 9B05M027 highlights Energizer's October 2003 acquisition of Schick.

Teaching Note: 8B05M26 (13 pages)
Industry: Manufacturing
Issues: Mergers & Acquisitions; Corporate Strategy; Competition; Strategy Implementation
Difficulty: 4 - Undergraduate/MBA



GILLETTE'S ENERGY DRAIN (B): ENERGIZER'S ACQUISITION OF SCHICK
Frank C. Schultz, Michael McCune

Product Number: 9B05M027
Publication Date: 1/31/2005
Revision Date: 10/1/2009
Length: 12 pages

This is a supplement to Gillett's Energy Drain (A): The Acquisition of Duracell, product 9B05M026. Highlighted is Energizer's acquisition of Schick. Gillette was just dabbling in batteries but its source of profits always been in razors and blades. Now, that business is under direct threat by Energizer, with its acquisition of Schick. This supplement provides an excellent example of multipoint competition, and raises the question, should Gillette have anticipated that the acquisition of a battery company would ultimately put razor profits at risk?

Teaching Note: 8B05M26 (13 pages)
Industry: Manufacturing
Issues: Strategy Implementation; Competition; Corporate Strategy; Mergers & Acquisitions
Difficulty: 4 - Undergraduate/MBA



LOBLAW COMPANIES LIMITED
Charlene Zietsma, Ramasastry Chandrasekhar

Product Number: 9B04M082
Publication Date: 1/28/2005
Revision Date: 9/21/2011
Length: 20 pages

The 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 Trade
Issues: Food and Drug; Industry Analysis; Competition
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Entry and the Advantage of Incumbency

NEXTCARD
Andrew Watson

Product Number: 9B04M038
Publication Date: 6/24/2004
Revision Date: 10/14/2009
Length: 9 pages

NextCard was a credit card issuer seeking to exploit the growing e-commerce market in the United States. It was founded in 1996, saw a successful initial public offering in 1999, and became an affiliate of Amazon.com, the largest online retailer. The year 2000 was a year of growth for NextCard, with the number of accounts more than trebling, to nearly three quarters of a million. However, on October 31, 2001, NextCard was placed under new regulatory limitations that imposed higher capital requirements than NextCard could meet. Goldman Sachs attempted to find a buyer for NextCard, but was not successful. On July 10, 2002, NextCard accounts were closed. This case can be used to discuss firm failure, effect of regulation, first-mover advantage, rapid growth, partnerships and consumer credit.

Teaching Note: 8B04M38 (7 pages)
Industry: Finance and Insurance
Issues: Government Regulation; Bankruptcy; Credit Card Business; E-Business Models; Northeastern
Difficulty: 4 - Undergraduate/MBA



ASPEN GROVE
Daniel McCarthy, David T.A. Wesley

Product Number: 9B03E008
Publication Date: 4/2/2003
Revision Date: 10/19/2009
Length: 20 pages

Aspen Grove was one of the first companies to provide applications over the Internet in 1996. It was also the first application service provider to implement a functional system for the legal market. Despite an apparent first mover advantage, the company has had limited growth and it has not expanded its customer base much beyond its original legal clients. With one of the three founders tied to the development of software and support for the company's partner and another managing the company's European division, they did not have the time they need to fully develop the company the way they originally envisioned. Because Aspen Grove did not use a proprietary database or other proprietary technology, the company soon found many new entrants competing against it. Services were charged on a per process basis, meaning that clients only paid for services that they used. While this appeared to be low risk solution for reducing information technology expenses, many potential clients were reluctant to trust sensitive legal information to a small Internet company. With many Internet companies failing or being acquired by larger companies, trust became even more critical.

Teaching Note: 8B03E08 (5 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Legal System; Internet Software; Women in Management; Northeastern
Difficulty: 4 - Undergraduate/MBA



TROJAN TECHNOLOGIES INC: THE CHINA OPPORTUNITY
Pratima Bansal, Paul W. Beamish, Ruihua Jiang

Product Number: 9A99M028
Publication Date: 10/28/1999
Revision Date: 1/18/2010
Length: 14 pages

The senior market associate of Trojan Technologies reflected on the water shortages anticipated in developing countries created by their explosive economic growth. Trojan sold water disinfecting equipment, and the senior market associate's job was to find new areas for growth. China was particularly intriguing because it had as much water as Canada, but 40 times the population, and its economic boom would further stress current water resources. Trojan had set growth hurdles of 30 per cent per year, and it needed new markets to reach that objective. The task in new market development was to determine if Trojan should enter China, and if so, when, where and how. The associate knew little of China: how decisions were made for water disinfecting equipment, whether Trojan's patents would be protected, and what level of resources would be required. The vice-president of new business development wanted to see recommendations within the month. AWARD WINNING CASE - This case was second place winner of the MDC of Hong Kong Case Writer of the Year Award in 2000.

Teaching Note: 8A99M28 (10 pages)
Industry: Utilities
Issues: China; Environment; Strategic Planning; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Creating and Capturing Value in the Value Chain

DE BEERS AND THE GLOBAL DIAMOND INDUSTRY
David W. Conklin, Danielle Cadieux

Product Number: 9B05M040
Publication Date: 7/15/2005
Revision Date: 10/1/2009
Length: 17 pages

In the early 2000s, De Beers Consolidated Mines has successfully managed the global diamond industry for many decades, propping up prices at all stages of the value chain, reducing price volatility and increasing consumer demand. By the end of the 20th century, however, a series of forces threatened De Beer's role and profitability. New diamond mining firms were selling their production on the open market rather than through De Beers' Central Selling Organization. The new competitors were attempting to grade, polish and cut diamonds outside of the De Beers value chain. Some retailers were purchasing shares in new mines in order to create their own value chain. New technology offered the possibility of creating synthetic diamonds that would be indistinguishable from diamonds created by natural forces. Governments were threatening antitrust actions. Meanwhile, an illicit trade in conflict diamonds was supporting revolutionary groups and disrupting the market. De Beers now had to decide whether to maintain its traditional functions or to embark on a new strategy. In particular, De Beers contemplated a shift into the retail jewelry business in a joint venture with France's Moet Hennessy-Louis Vuitton luxury goods corporation that would sell De Beers-branded diamond jewelry.

Teaching Note: 8B05M40 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Value Chain; Globalization; International Business; Business Policy
Difficulty: 4 - Undergraduate/MBA



STARBUCKS
Mary M. Crossan, Ariff Kachra

Product Number: 9A98M006
Publication Date: 5/14/1998
Revision Date: 5/10/2017
Length: 23 pages

Starbucks 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 Services
Issues: competitiveness; industry analysis; growth strategy; core competence; coffee
Difficulty: 4 - Undergraduate/MBA



IKEA (CANADA) LTD.- 1986 (CONDENSED)
Paul W. Beamish

Product Number: 9A88M010
Publication Date: 1/1/1988
Revision Date: 2/23/2000
Length: 14 pages

The mid-1986 Sears new catalogue contained a 20-page section called Elements. This section bore a striking resemblance to the format of an IKEA catalogue, and the furniture being offered was similar to IKEA'S knocked-down self-assembly line. The head of IKEA'S North American operations wondered how serious Sears was about its new initiative and what, if anything, IKEA should do in response.

Teaching Note: 8A88M10 (12 pages)
Industry: Retail Trade
Issues: Supplier Relations; Competition; Value Analysis; Subsidiaries
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Strategic Management in a Changing Environment

CAMPBELL SOUP COMPANY LTD.
Mary M. Crossan, Ken Mark

Product Number: 9B02M006
Publication Date: 4/25/2002
Revision Date: 12/1/2009
Length: 16 pages

The 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: Manufacturing
Issues: Communications; Crisis Management; Change Management; Strategy Development
Difficulty: 4 - Undergraduate/MBA



ETRAFFIC SOLUTIONS: THE FUTURE OF ELEARNING
Rebecca A. Grant, Michelle Jeske

Product Number: 9B03M043
Publication Date: 11/28/2003
Revision Date: 10/22/2009
Length: 22 pages

Etraffic Solutions is an award-winning developer of e-learning platforms and customized content solutions, primarily in the kindergarten to grade 12 market. The future direction of the e-learning industry is uncertain - will custom solutions continue to dominate, or will the fastest growing markets turn to off-the-shelf software with options for user-tailoring? Etraffic is wrestling with a decision to move into the off-the-shelf segment of the market, but must determine whether that is a desirable strategy and, if so, how this company will make the transition from a consulting firm to one that is product-based. In addition, there is a question as to whether the company is missing opportunities in other markets.

Teaching Note: 8B03M43 (6 pages)
Industry: Educational Services
Issues: E-Commerce; Change Management; Generating Profit from New Technology; Growth Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Strategy in Markets with Demand-side Increasing Returns

APPLE INC.: IPODS AND ITUNES
Mary M. Crossan, Ken Mark

Product Number: 9B05M046
Publication Date: 8/2/2005
Revision Date: 4/15/2010
Length: 13 pages

Apple 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 Services
Issues: New Economy; Strategy Implementation; Industry Analysis; Business and Society
Difficulty: 4 - Undergraduate/MBA



WALL STREET JOURNAL: PRINT VS. INTERACTIVE
Amy J. Hillman

Product Number: 9A99M030
Publication Date: 10/28/1999
Revision Date: 1/18/2010
Length: 13 pages

One 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: Manufacturing
Issues: Product Strategy; Industry Analysis; Business Policy; Internet
Difficulty: 4 - Undergraduate/MBA



CQUAY TECHNOLOGIES CORP.
Paul W. Beamish, Kevin K. Boeh

Product Number: 9B04M068
Publication Date: 10/13/2004
Revision Date: 10/15/2009
Length: 12 pages

CQUAY Technologies Corp was a privately-held Canadian software company with offices in Toronto, Calgary and Washington, D.C. CQUAY marketed a patented location intelligence engine called Common Ground. The company's technology was designed for an emerging, multi-billion dollar segment of the spatial information management market. A year earlier, the board had asked the chief executive officer to shape the company into an acquisition target over the next 18 to 24 months. A year later there were no imminent acquisition discussions, and recent customer traction and the sales pipeline seemed to merit raising growth capital instead of following the acquisition-focused plan. The CEO wanted to keep his stockholders and board happy by executing the plan they had given him, but did not want to jeopardize possible customer growth. If he refocused the plan, he feared it might change acquisition opportunities. Without further contracts, the existing cash would sustain the company for only another six to eight months. The CEO thought the most likely outcome was to sell the company, but he needed to make the company more attractive. He planned to present options and a recommendation to the board of directors later that month.

Teaching Note: 8B04M68 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Mergers & Acquisitions; Corporate Strategy; Venture Capital; Corporate Governance
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Globalization and Strategy

GLOBAL BRANDING OF STELLA ARTOIS
Paul W. Beamish, Anthony Goerzen

Product Number: 9B00A019
Publication Date: 10/19/2000
Revision Date: 5/23/2017
Length: 19 pages

Interbrew 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: Manufacturing
Issues: Global Product; International Business; International Marketing; Brands
Difficulty: 4 - Undergraduate/MBA



PALLISER FURNITURE LTD.: THE CHINA QUESTION
Paul W. Beamish, Jing'an Tang

Product Number: 9B04M005
Publication Date: 3/4/2004
Revision Date: 11/18/2014
Length: 12 pages

Palliser is Canada's second-largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and has experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company has faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow. Should it be an investment, either wholly or partly owned, or should it be through subcontracting?

Teaching Note: 8B04M05 (7 pages)
Industry: Manufacturing
Issues: China; Expansion; Imports; Outsourcing; Plant Location
Difficulty: 4 - Undergraduate/MBA



VINCOR AND THE NEW WORLD OF WINE
Paul W. Beamish, Nikhil Celly

Product Number: 9B04M001
Publication Date: 1/14/2004
Revision Date: 11/18/2014
Length: 17 pages

Vincor International Inc. was Canada's largest wine company and North America's fourth largest in 2002. The company had decided to internationalize and as the first step had entered the United States through two acquisitions.The company's chief executive officer felt that to be among the top 10 wineries in the world, Vincor needed to look beyond the region. To the end, he was considering the acquisition of an Australian company, Goundrey Wines. He must analyze thestrategic rationale for the acquisition of Goundrey as well as to probe questions of strategic fit and value.

Teaching Note: 8B04M01 (14 pages)
Industry: Manufacturing
Issues: Internationalization; Market Entry; Acquisitions; Growth Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Corporate Strategy: Managing for Value in a Multibusiness Company

GENERAL MOTORS DEFENSE
Paul W. Beamish, Changwha Chung

Product Number: 9B03M002
Publication Date: 2/6/2003
Revision Date: 10/21/2009
Length: 10 pages

General Motors Defense, a division of General Motors, one of the world's largest automobile manufacturers, designs and manufactures light armored vehicles. The company is approached by General Dynamics to jointly pursue the U.S. Army's Brigade Combat Team program. However, General Dynamic made it clear that they would also submit a bid on their own. Contrary to past practices, the chief of staff of the U.S. Army planned to award the multi-billion dollar contract within only 11 months. The executive director of General Motors Defense has to decide whether the company should bid-it-alone or submit a joint venture bid with General Dynamics.

Teaching Note: 8B03M02 (9 pages)
Industry: Manufacturing
Issues: Joint Ventures; Doing Business in the U.S.; Political Environment; Leadership
Difficulty: 4 - Undergraduate/MBA



AMERICAN CYANAMID
W. Glenn Rowe, Ken Mark

Product Number: 9B04M006
Publication Date: 8/10/2004
Revision Date: 10/8/2009
Length: 14 pages

Originally a chemical company with its focus on agriculture, American Cyanamid has expanded into three other industry segments: medical, chemical and consumer products. The executive vice-president for agriculture must decide what to do with the floundering chemical division. The supplement Cytec Industries, Inc., product 9B04M007 looks at the progress of the chemical division.

Teaching Note: 8B04M06 (9 pages)
Industry: Manufacturing
Issues: Action Planning and Implementation; Stakeholder Analysis; Strategic Scope; Uncertainty
Difficulty: 4 - Undergraduate/MBA



HEWLETT-PACKARD IN 2001
Charlene Zietsma, Ken Mark, Jordan Mitchell

Product Number: 9B04M083
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 14 pages

Hewlett-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: Manufacturing
Issues: Competition; Computer Industry; Mergers & Acquisitions; Strategic Positioning
Difficulty: 4 - Undergraduate/MBA



NEWELL COMPANY: THE RUBBERMAID OPPORTUNITY
J. Nick Fry

Product Number: 9B00M010
Publication Date: 1/25/2001
Revision Date: 1/11/2010
Length: 9 pages

The Newell Company, a multi-billion dollar company dealing in hardware and home furnishings, office products and housewares, was contemplating a merger with Rubbermaid, a renowned manufacturer of plastic products. Newell had a remarkable record of success in growth by acquisition. Rubbermaid would mark a quantum step in this program, but equally, would pose a formidable challenge to Newell's capacity to integrate and strengthen acquisitions. Corporate strategy and advantage is studied, particularly through the Collis and Montgomery framework, to determine if the proposed merger is a step too far.

Teaching Note: 8B00M10 (7 pages)
Industry: Manufacturing
Issues: Mergers & Acquisitions; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
The Strategy Process

SUN LIFE FINANCIAL: ENTERING CHINA
Paul W. Beamish, Ken Mark, Jordan Mitchell

Product Number: 9B04M066
Publication Date: 12/20/2004
Revision Date: 10/15/2009
Length: 17 pages

Sun Life Financial is a large insurance conglomerate with $14.7 billion in annual revenues. The vice-president for China must formulate an approach for his company's entrance into China. Sun Life has achieved two important milestones: the right to apply for license and the signing of a Memorandum of Understanding for Joint Venture with China Everbright, a local securities company. The financial vice-president must consider strategic options for entry and choose a city in which to focus his efforts in getting a license. In doing so, he needs to consider Sun Life's overall priorities, strategic direction and how he will sell the concept to senior management in Canada. Intended for use in an introduction to international business course, the case includes assessing internal capabilities against an environmental scan, formulating strategy and making operational decisions relating to city selection. It also introduces the idea of joint venture management and government relations.

Teaching Note: 8B04M66 (12 pages)
Industry: Finance and Insurance
Issues: China; Joint Ventures; Market Entry; Risk Analysis; International Business
Difficulty: 4 - Undergraduate/MBA



STRATEGIC CROSSROADS AT MATAV: HUNGARY'S TELECOMMUNICATIONS POWERHOUSE
Michael J. Rouse, Jordan Mitchell

Product Number: 9B05M033
Publication Date: 5/11/2005
Revision Date: 10/1/2009
Length: 27 pages

In 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 & Telecommunications
Issues: Growth Strategy; Strategy Development; International Business; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA