Ivey Publishing

Strategic Management: Creating Value in a Turbulent World

FitzRoy, Hulbert (United States, Wiley, 2005)
Prepared By Peter Fitzroy, Author
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Managing Strategically

MGAMES
Allen Morrison, Scott Hill

Product Number: 9B02M020
Publication Date: 9/20/2002
Length: 16 pages

mGames is a manufacturer of game-based software for portable computers, PDAs and cell phones. The company's new chief executive officer has just been informed of a potential hostile takeover of the company by a major PDA manufacturer. At the same time he receives a phone call from a senior executive at a Scandinavian telecommunications company expressing interest in forming a partnership. With all of this happening, the chief executive officer faces growing pressure from the company's chairman to address ongoing performance problems. In a complex and changing environment he must make a strategic choice as to which group of customer groups (traditional handheld gaming device manufacturers, telecom manufacturers or PDA manufacturers) the company should focus on.

Teaching Note: 8B02M20 (9 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Personal Values; International Business; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA



ASIASPORTS: HOCKEY NIGHT IN HONG KONG
Andrew Karl Delios

Product Number: 9A99M014
Publication Date: 7/20/1999
Revision Date: 1/18/2010
Length: 16 pages

Tom Barnes, executive director of Asiasports Ltd., was evaluating several options for growth for the sports management company. Asiasports principal sports properties were the South China Ice Hockey League and the World Ice Hockey 5's tournament, both based in Hong Kong. Among the alternatives available: Barnes could develop hockey in other countries in Southeast Asia; he could acquire new sports properties; or he could expand into in-line hockey promotion in Hong Kong.

Teaching Note: 8A99M14 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Strategic Planning; Sports; International Business
Difficulty: 4 - Undergraduate/MBA



PROCTER & GAMBLE IN EASTERN EUROPE (A)
Jeffrey Gandz, David W. Conklin, Maurice Smith, Asad Wali

Product Number: 9A97H001
Publication Date: 3/20/1997
Revision Date: 2/4/2010
Length: 32 pages

Procter & Gamble must determine an entry strategy for Eastern Europe. The case examines the former Soviet Bloc countries, the opportunity they provide for a business endeavor like Procter & Gamble, and the product choices Procter & Gamble has available to them. Students must examine the political, economic, societal, and technological (PEST) environment and determine if the newly liberalized economies of Eastern Europe provide appropriate investment opportunities for Procter & Gamble. Students must also determine the scope of the necessary investment, the time profile and the difficulties it may face. A follow-up case (9A97H002) is available.

Teaching Note: 8A97H01 (13 pages)
Industry: Manufacturing
Issues: Globalization; Uncertainty; Business Policy
Difficulty: 4 - Undergraduate/MBA



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


Chapter 2:
The Fundamentals of Strategic Management

LONDON TELECOM NETWORK
J. Nick Fry, John Bogert

Product Number: 9A96M002
Publication Date: 9/24/1996
Revision Date: 2/10/2010
Length: 15 pages

London Telecom Network is a fast growing reseller of long distance telephone services. The company has survived where many have failed and is starting to generate significant profits. Now management is beginning to look at a range of initiatives to further build the business. The situation raises some interesting questions for Rob Freeman, the founder and owner of the business. Are the circumstances right for the company to be pursuing new ideas? If so, which of the several proposals deserves priority attention?

Teaching Note: 8A96M02 (11 pages)
Industry: Information, Media & Telecommunications
Issues: Competitive Advantage; Management Behaviour; Strategic Planning
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
The Competitive Environment

AMERICAN FAST FOOD IN KOREA
Paul W. Beamish, Jae C. Jung, Hun-Hee Kim

Product Number: 9B03M016
Publication Date: 4/2/2003
Revision Date: 10/22/2009
Length: 12 pages

A 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 Services
Issues: Industry Analysis; Market Entry; Fast Food; International Business
Difficulty: 4 - Undergraduate/MBA



SAMSUNG AND THE THEME PARK INDUSTRY IN KOREA
Paul W. Beamish, Charles Dhanaraj, Young Soo Kim

Product Number: 9A96M006
Publication Date: 11/1/1996
Revision Date: 11/22/2002
Length: 20 pages

The management of the Samsung Group has to decide whether to enter the Korean theme park industry. The case focuses on three main issues in the context of the entry decision:
  • The underlying forces that shape industry structure, competitive interaction, and profits.
  • The impact of globalization on industry structure.
  • The relationship between a firm’s resources and its strategy.
Porter’s Five Forces model is used to analyze the impact of the competitive forces on profitability. A 15-minute video, product # 7A96M006, can be purchased for this case.


Teaching Note: 8A96M06 (19 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Strategy and Resources; Industry Globalization; Industry Analysis; Diversification;Tourism
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Internal Analysis

AB SANDVIK SAWS & TOOLS: THE ERGO STRATEGY
Rod E. White, Julian M. Birkinshaw

Product Number: 9A97M005
Publication Date: 9/2/1997
Revision Date: 11/18/2002
Length: 26 pages

The Saws and Tools division of Sandvik AB has developed a competence in ergonomic hand tools. Arguably, they are the world leader in this area. The division president hopes the Ergo strategy, coupled with selective acquisitions, will enable Sandvik to dominate the global market for professional hand tools. But after investing in this strategy for several years, it has produced, to date, mixed results. Many customers, particularly those in North America, appear unwilling to pay a premium for ergonomic hand tools. The president must decide whether to continue to invest in the Ergo hand tool strategy. Two issues are central to this case: (1) understanding that a successful strategy represents a balance between core competencies and customer value, and (2) one competency is hardly enough to break into a new market. Success of the Ergo strategy in Europe was not solely attributable to a competence in the manufacture of ergonomic hand tools; other elements like distribution also played a key role.

Teaching Note: 8A97M05 (7 pages)
Industry: Manufacturing
Issues: Core Competence; Global Product; Globalization
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


Chapter 6:
Creating Future Direction

KODAK'S HEALTH IMAGING DIVISION IN ASIA (A)
Richard DeMartino

Product Number: 9B01M055
Publication Date: 9/27/2001
Revision Date: 12/22/2009
Length: 15 pages

Kodak's Health Imaging division is the second largest business unit within Kodak, a worldwide provider of consumer, professional and health imaging products. The regional manager of the Health Imaging division is preparing her presentation for the company's senior management retreat. The East Asian Crisis and its impact on the division are on the agenda. The regional manager reflects on the magnitude of the crisis, and she wonders if the company's responses were reactive instead of strategic. There will be some tough questions to rake through at the meeting. Did the Health Imaging department respond effectively to the crisis? Is Kodak better off because of the crisis? What will the short-term and long-term effects be? Will Kodak's response to the East Asian Crisis preserve customer relationships for the years to come? Information pertaining to Health Imaging's strategic view of the region, the company's organizational structure and the levers employed by Kodak in response to the crisis all serve to produce some answers for the division's future consideration. A supplementary (B) case is available, product 9B01M056.

Teaching Note: 8B01M55 (8 pages)
Industry: Manufacturing
Issues: Foreign Exchange; Pricing Strategy; International Business; International Marketing
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Business Level Strategy

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



DELL COMPUTER CORPORATION: INVESTMENT IN MALAYSIA AS A GLOBAL STRATEGIC TOOL
Justin Tan, Michael N. Young

Product Number: 9B03M019
Publication Date: 5/28/2003
Revision Date: 10/22/2009
Length: 13 pages

Dell Computer Corporation is one of the largest computer manufacturers. The company's international business strategy has supported its global position and performance facing the Asian economic crisis. Its investment in Malaysia has reduced its foreign exchange exposure, and supported its low cost advantage. Now Dell needs to decide if it wants to expand its commitment in Malaysia and or other locations such as China.

Teaching Note: 8B03M19 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Risk Management; Strategic Positioning; Emerging Markets; Globalization
Difficulty: 4 - Undergraduate/MBA



STRATEGIC INTELLIGENCE PTE. LIMITED (A)
Paul W. Beamish, Tom Gleave

Product Number: 9B01M032
Publication Date: 6/20/2001
Revision Date: 12/21/2009
Length: 16 pages

Strategic Intelligence Pte. Limited is a research and new-media company that provides Asian-based economic and political information. The managing editor is facing several challenges in building a new online business intelligence service that focuses on Asia's new economy. As the person responsible for the company's first Internet related initiative, he is expected to design, manage and help market the new initiative that will be independent from, yet complementary to, the company's existing events-oriented and research services. Although he is satisfied with the content that has been developed, he still needs to resolve several issues regarding target audience, pricing policy, revenue diversification options and service awareness. A sense of urgency pervades the situation, since he is expected to ensure that the new service will contribute 25 per cent of total company revenues within the next year.

Teaching Note: 8B01M32 (14 pages)
Industry: Information, Media & Telecommunications
Issues: Growth; Pricing Strategy; Sales Strategy; Consumer Research; Nanyang
Difficulty: 4 - Undergraduate/MBA



COLA WARS IN CHINA: THE FUTURE IS HERE
Niraj Dawar, Nancy Dai

Product Number: 9B03A006
Publication Date: 8/6/2003
Revision Date: 5/24/2017
Length: 18 pages

AWARD WINNING CASE - This case won the Emerging Chinese Global Competitors, 2003 EFMD Case Writing Competition. The Wahaha Hangzhou Group Co. Ltd. is one of China's largest soft-drink producers. One of the company's products, Future Cola, was launched a few years ago to compete with Coca Cola and PepsiCo and has made significant progress in the soft-drink markets that were developed by these cola giants. The issue now is to maintain the momentum of growth in the face of major competition from the giant multinationals, and to achieve its goal of dominant market share.

Teaching Note: 8B03A06 (7 pages)
Industry: Manufacturing
Issues: China; Market Strategy; Competition; Brand Management; Emerging Markets
Difficulty: 5 - MBA/Postgraduate



NON STOP YACHT, S.L.
Charlene L. Nicholls-Nixon, Ken Mark, Jordan Mitchell

Product Number: 9B03M035
Publication Date: 9/25/2003
Revision Date: 10/22/2009
Length: 18 pages

Non Stop Yacht S.L. is a Web site that provides e-commerce service to the mega-yacht industry. Originally, the founder had planned to run Non Stop Yacht as an internet business. However, success with this business model is proving elusive and investors are growing restless as performance continues to fall short of the business plan. Substantial pressure to improve the company's performance had the founder considering a variety of alternative business models that would enable him to more effectively capture value from the concept of non stop parts procurement for high-end yachts. These options involve key decisions about the strategic positioning of the company and the relative advantages and disadvantages of pursuing strategic alliances with players at different points in the industry value chain.

Teaching Note: 8B03M35 (9 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Strategic positioning; value chain; e-Business models; luxury goods
Difficulty: 4 - Undergraduate/MBA



CONOCO'S PURCHASE OF GULF CANADA RESOURCES: REAPING SYNERGIES FROM INTEGRATION
David W. Conklin, Ken Mark, Darcy Jones

Product Number: 9B03M038
Publication Date: 11/28/2003
Revision Date: 10/22/2009
Length: 18 pages

Firms in the oil and gas industry were shifting towards a model of vertical integration, innovative technologies and international diversification. Canadian firms like Gulf were not able to achieve this new success paradigm on their own and so they were natural takeover targets for large multinationals like Conoco.

Teaching Note: 8B03M38 (11 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: International Business; Business Policy
Difficulty: 4 - Undergraduate/MBA



CIBC: OUTSOURCING THE HUMAN RESOURCES DEPARTMENT (A)
David W. Conklin, Jennifer Pun

Product Number: 9B02C062
Publication Date: 11/29/2002
Revision Date: 2/12/2003
Length: 23 pages

The Canadian Imperial Bank of Commerce (CIBC) is one of the 10 largest full-service financial institutions in North America. Its human resources department wanted to reinvent HR service delivery and increase automation and self-service operations. A number of options were being considered, including continuing with the status quo while undertaking patchwork operations, developing new HR capabilities in-house, outsourcing the development of HR capabilities, and exploring the opportunity to outsource entire functions. Each option presents benefits and challenges, and the senior lead on the project must begin to develop a business case to go forward. The supplemental case CIBC: Outsourcing the Human Resources Department (B), product 9B02C063 discusses the human resources outsourcing agreement.

Teaching Note: 8B02C62 (19 pages)
Industry: Finance and Insurance
Issues: Human Resources Management; Business Policy; Organizational Structure
Difficulty: 4 - Undergraduate/MBA



WESTJET LOOKS EAST
J. Nick Fry, Rod E. White

Product Number: 9B00M036
Publication Date: 9/25/2000
Revision Date: 1/11/2010
Length: 15 pages

The 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 Warehousing
Issues: Competition; Strategic Scope; Strategic Planning
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Corporate level Strategy

THAI TELECOMS IN THE NEW ECONOMY: PRIVATIZATION & LIBERALIZATION
David W. Conklin, Brock Judiesch

Product Number: 9B01M064
Publication Date: 11/9/2001
Revision Date: 12/22/2009
Length: 26 pages

The economic crisis that ravaged Thailand in 1997 was an impetus that started the county down the difficult road of privatization and liberalization. The major issues involved in the transformation of the telecom industry from a state-run duopoly to a free market-based sector were daunting: the process for corporatization and the subsequent privatization of the state-owned telecom operators; the conversion of revenue-sharing agreements between private operators and the two state-run telecom agencies; the process of establishing a regulatory body to oversee privately-owned corporations; and finally the full liberalization of the sector by 2006, with the reduction or elimination of foreign ownership restrictions, under an agreement with the World Trade Organization. The stakes involved in the liberalization of the industry were high. Thailand's entry into e-commerce and the new economy would depend upon the new technologies and enhanced efficiencies that privatization and liberalization of the telecom sector might bring.

Teaching Note: 8B01M64 (12 pages)
Industry: Information, Media & Telecommunications
Issues: E-Commerce; Globalization; International Business; Business Policy
Difficulty: 5 - MBA/Postgraduate



HUTCHISON WHAMPOA LIMITED
Allen Morrison, Rod E. White, William Shurniak

Product Number: 9A99M038
Publication Date: 1/22/2002
Length: 28 pages

Hutchison Whampoa Limited is a holding company based in Hong Kong with its core business interests in property development, retail and manufacturing, telecommunications and finance and investment. The deputy managing director must assess the company's corporate strategy. She must consider how the corporate office adds value to the underlying business and review the business portfolio and its considerable geographic scope. It is unlikely Hutchison Whampoa can be a global player in all of its businesses, so she must determine which of the businesses can be global, regional or local.

Teaching Note: 8A99M38 (13 pages)
Industry: Finance and Insurance
Issues: Multi-business Enterprise; Corporate Advantage; Corporate Strategy
Difficulty: 5 - MBA/Postgraduate



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


Chapter 9:
Managing innovation and the Dynamic Scope of the Firm

ELI LILLY IN INDIA: RETHINKING THE JOINT VENTURE STRATEGY
Charles Dhanaraj, Paul W. Beamish, Nikhil Celly

Product Number: 9B04M016
Publication Date: 5/14/2004
Revision Date: 3/13/2017
Length: 18 pages

Eli 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: Manufacturing
Issues: Joint Ventures; Emerging Markets; International Management; Strategic Alliances
Difficulty: 4 - Undergraduate/MBA



NORA-SAKARI: A PROPOSED JV IN MALAYSIA (REVISED)
Paul W. Beamish, R. Azimah Ainuddin

Product Number: 9B06M006
Publication Date: 11/30/2005
Revision Date: 5/23/2012
Length: 16 pages

This 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 & Telecommunications
Issues: Intercultural Relations; Third World; Negotiation; Joint Ventures; Finland; Malaysia
Difficulty: 4 - Undergraduate/MBA



PINNACLE TECHNOLOGIES - MIDDLE EAST
Allen Morrison

Product Number: 9B03M054
Publication Date: 11/5/2003
Revision Date: 10/22/2009
Length: 16 pages

Pinnacle Technologies is an unusual company in that it acts essentially as a subsidiary of U.K.-based Psion Teklogix although it is 100 per cent independent. Psion Teklogix manufacturers wireless data communication devices that are used primarily in inventory management activities performed in warehouses, ports, factories and airports. In the mid 1990s, Psion gave Pinnacle Technologies exclusive Middle Eastern rights to the Teklogix technology and product line. It also assisted in training Pinnacle's development staff, programmers and sales representatives. By 2002, Pinnacle was prospering and was thinking of diversifying into related and unrelated software services. The chief executive officer must decide to what degree Pinnacle should diversify from its core business and determine what financial and managerial resources are required for the diversification. (A 27-minute video is available featuring a discussion with the chief executive officer of Pinnacle, product 7B03M054.)

Teaching Note: 8B03M54 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Core Competence; Management in a Global Environment; Inventory Planning/Control; International Business
Difficulty: 5 - MBA/Postgraduate



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



CAMBRIDGE LABORATORIES: PROTEOMICS
Henry W. Lane, Dennis Shaughnessy, David T.A. Wesley

Product Number: 9B04M013
Publication Date: 4/5/2004
Revision Date: 9/22/2006
Length: 24 pages

Cambridge Laboratories is essentially a fee-for-service provider of laboratory tests. It spends less than 0.5 per cent of revenues on research and development and holds relatively few patents for a biotech company. It now has an opportunity to invest $5 million to establish a joint venture with an Australian proteomics company that operates on a drug discovery (royalty) model. The founder of this company believed that his technology could eventually result in the discovery of new drugs that would generate significant royalties. While the proteomics firm has superb technology, some of the intellectual leaders in the field on its staff, and partnerships with some impressive companies, its technology is yet unproven. Cambridge Labs is also concerned that its existing relationships with big pharmaceutical companies could be jeopardized if it begins to take an intellectual property position in proteomics. In addition, the Australian company consists primarily of PhDs in molecular biology, while Cambridge Labs is dominated by business executives whose primary focus is generating strong financial returns for shareholders. The cultural differences between an Australian science-oriented laboratory and a publicly traded American outsourcing company become apparent during the negotiation phase of the joint venture proposal. Students are asked to evaluate the joint venture and consider whether the cultural and strategic differences can be reconciled.

Teaching Note: 8B04M13 (12 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Joint Ventures; Biotechnology Management; Cross Cultural Management; Patents; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Leading Organizational Change

BRISTOL COMPRESSORS, ASIA-PACIFIC
Allen Morrison, J. Stewart Black

Product Number: 9A98M001
Publication Date: 3/20/1998
Revision Date: 1/28/2010
Length: 13 pages

The president of Bristol Compressors, Asia-Pacific, chaired a meeting of his top management team to discuss the company's ongoing management challenges in the region. The Hong Kong-based team, known as the management committee, was made up of the president and seven other senior functional managers. Despite attractive markets in the region, Bristol Compressors' growth in Asia-Pacific had not met expectations. Some individuals attributed this to a slow entry strategy, weaker markets than anticipated in the region, unexpectedly fierce competition and ineffective strategy and execution. However, over the last two years a consensus was emerging among committee members that there was a lack of management depth that was contributing to poor performance. Although everyone was convinced that something had to be done, a specific plan of action had not yet been developed. The president charged the committee members to come up with a set of recommendations to increase significantly management bench strength in the region. This case focuses on the challenges of building a high performance organization in a short period of time in Asia.

Teaching Note: 8A98M01 (11 pages)
Industry: Manufacturing
Issues: Strategic Change; Management Development; Management in a Global Environment; Globalization
Difficulty: 4 - Undergraduate/MBA



SABENA BELGIAN WORLD AIRLINES (A)
Mary M. Crossan, Barbara Pierce

Product Number: 9A94M003
Publication Date: 11/15/1994
Revision Date: 2/25/2010
Length: 15 pages

This case, the first in a six-part series, describes the situation Pierre Godfroid encountered when he took over as Sabena’s CEO in 1991. At that time, Sabena was in crisis, facing imminent bankruptcy. On the strength of a restructuring plan developed by Godfroid and his staff, the Belgian government had agreed to bail out the airline in return for assurances that this would be the last time government assistance would be requested. Godfroid’s task was to transform the company into a viable private enterprise. The case provides the opportunity to evaluate the viability of Godfroid’s strategy and more generally to explore strategy formulation in a global industry. More importantly, it sets the stage for a sequence of follow-up cases (9A94M004, 9A94M005, 9A94M006, 9A94M007, 9A94M008) dealing with the implementation of the strategy. (Sabena Belgian World Airlines - Video which is broken into segments to coincide with the case series, can be purchased with the case.)

Teaching Note: 8A94M03 (19 pages)
Industry: Transportation and Warehousing
Issues: Strategy Formulation; Strategy Implementation; Change Management; Airline Industry; Belgium
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Designing Organizational Architecture

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


Chapter 12:
Measuring Organizational Performance

WIL-MOR TECHNOLOGIES: IS THERE A CRISIS?
Andrew C. Inkpen

Product Number: 9A99M042
Publication Date: 2/16/2000
Revision Date: 5/23/2017
Length: 11 pages

The CEO of Wilson Industries, a U.S. firm, is concerned about the performance of a joint venture between Wilson Industries and a Japanese firm, Morota Manufacturing. He wants the joint venture president to make some changes to improve financial performance. However, the president is unsure of what action to take because the Japanese partner, Morota, is satisfied with the performance and is considering expansion plans.

Teaching Note: 8A99M42 (11 pages)
Industry: Manufacturing
Issues: International Business; Manufacturing Strategy; Management Philosophy; Joint Ventures
Difficulty: 4 - Undergraduate/MBA



BLACK & DECKER-EASTERN HEMISPHERE AND THE ADP INITIATIVE (A)
Allen Morrison, J. Stewart Black

Product Number: 9A98G005
Publication Date: 3/3/1998
Revision Date: 1/29/2010
Length: 13 pages

The new president of Black & Decker-Eastern Hemisphere, attempts to introduce a new performance appraisal and management development system. Black & Decker is a relatively weak player in the Eastern Hemisphere and the president is convinced that he needs to significantly increase the number and quality of managers in the region. To assist in the development process, the president is considering introducing a US-designed Appraisal Development Plan (ADP) in the region. ADP uses 360 degree feedback from peers, subordinates, and supervisors to assist employees in building managerial skills and in increasing personal accountability. Despite a successful track record for ADP in Black & Decker North America, members of the top management team are concerned that ADP will be a failure in the Eastern Hemisphere. They argue that the system faces huge barriers due to organizational cultural issues related to staffing, systems leadership and structure. The president is flirting with disaster if he proceeds.

Teaching Note: 8A98G05 (11 pages)
Industry: Manufacturing
Issues: Management Development; Employee Training; Management in a Global Environment; Management by Objectives
Difficulty: 4 - Undergraduate/MBA



DAIMLERCHRYSLER: POST-MERGER NEWS
Pratima Bansal, Doug Airey, Andy Gepp, Cathy Harris, Yves Menard

Product Number: 9B03M049
Publication Date: 9/25/2003
Revision Date: 10/22/2009
Length: 17 pages

Daimler-Benz AG, a large automobile manufacturer in Europe and the Chrysler Corporation, one of the Big Three auto makers in North America have merged to create DaimlerChrysler. On the surface, everything seemed to be going as planned. In reality, all was not well. Organizational changes, conflicting information, and doubts about the future structure of the company resulted in the departure of numerous Chrysler employees, including many mid-level managers and engineers. While initially amalgamated into Daimler, the Chrysler Group ended up as one of three separate automotive divisions. In 2001, DaimlerChrysler recorded a $1.2 billion loss in operating profit (before one-time effects). Estimates for 2002 called for a break-even result, but the company was facing a $9 billion lawsuit filed by the fifth largest shareholder, who claimed that Daimler had deceived investors by touting the venture as a merger of equals.

Teaching Note: 8B03M49 (10 pages)
Industry: Retail Trade
Issues: Consolidations and Mergers; Mergers & Acquisitions; International Accounting
Difficulty: 4 - Undergraduate/MBA



EVA AT AULT FOODS LIMITED
Sarah C. Mavrinac, Angela Skubovius, Henry Fiorillo

Product Number: 9A98B001
Publication Date: 3/5/1998
Revision Date: 1/25/2010
Length: 17 pages

The chief financial officer of Ault Food Limited was compiling the data he would need to run a divisional Economic Value Added (EVA) analysis. He had been asked by the CEO of Ault Foods to present the analysis at the next meeting of the board of directors. The CEO must persuade the board that divesting at least one of the company's divisions will be in the best interest of Ault's shareholders. The case is intended to provide an introduction to the use of EVA in a multi-business setting. Having completed the case, students should have a basic understanding of the EVA concept and its usefulness as a performance indicator, be capable of making EVA adjustments and calculating actual EVA measures, and have a good conceptual grasp of the application of EVA as both an internal control device and an aid to strategic decision making.

Teaching Note: 8A98B01 (13 pages)
Industry: Manufacturing
Issues: Economic Value Added; Valuation; Performance Evaluation; Accountability
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Corporate Governance

CCL INDUSTRIES INC.: BUILDING AND MAINTAINING AN EFFECTIVE BOARD
Lawrence G. Tapp, Trevor Hunter

Product Number: 9B02M045
Publication Date: 1/10/2003
Revision Date: 12/3/2009
Length: 11 pages

CCL 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: Manufacturing
Issues: Board of Directors; Corporate Governance
Difficulty: 4 - Undergraduate/MBA



CALGAS
Lawrence G. Tapp, Gail Robertson

Product Number: 9B00M042
Publication Date: 6/20/2001
Revision Date: 1/11/2010
Length: 8 pages

Calgas is one of Canada's top 25 oil and gas producers, with multinational principal shareholders and a multinational board of directors. A board member has been shopping the company without the board's knowledge or approval, and has been unsuccessful. His actions have caused employee anger and a loss of industry credibility. The board of directors must decide how to deal with the board member and determine a strategy for both damage control and moving forward.

Teaching Note: 8B00M42 (6 pages)
Industry: Manufacturing
Issues: Corporate Governance; International Business; Board of Directors
Difficulty: 4 - Undergraduate/MBA



COLUMBIA DAIRIES CORPORTION: BOARD OF DIRECTORS MEETING
David C. Shaw

Product Number: 9B01M015
Publication Date: 7/23/2002
Revision Date: 12/21/2009
Length: 15 pages

As a member of the board of directors, students must analyse company reports to determine an investment, dividend and financing strategy for the company.

Industry: Manufacturing
Issues: Price Tension; Stock Issues; Dividend Policy
Difficulty: 5 - MBA/Postgraduate



FISHERY PRODUCTS INTERNATIONAL LTD.: A NEW CHALLENGE
W. Glenn Rowe, Tami Hynes

Product Number: 9B01M031
Publication Date: 8/9/2001
Revision Date: 12/21/2009
Length: 22 pages

Newfoundland-based Fishery Products International (FPI) is one of the largest seafood companies in North America. FPI has experienced its best performance in a decade and has recently survived a hostile takeover bid by three competitors who acted in concert. The chief executive officer (CEO) has just returned from New Zealand where he was visiting a major competitor to see if there was the possibility of a strategic alliance. The CEO knew he had to do something to prevent another hostile takeover and to continue to grow shareholder value while still maintaining the social conscience of FPI. Some of the issues facing FPI were: performance, strategic leadership and corporate governance, and implementing an integrated product differentiation/cost leadership strategy.

Teaching Note: 8B01M31 (12 pages)
Industry: Manufacturing
Issues: Government and Business; Strategy Implementation; Corporate Governance; Return on Investment
Difficulty: 4 - Undergraduate/MBA



CALL-NET ENTERPRISES INC. (A)
Lawrence G. Tapp, Gail Robertson

Product Number: 9B00M045
Publication Date: 7/11/2001
Revision Date: 1/11/2010
Length: 14 pages

Call-Net Enterprises Inc. is a publicly owned telecommunications company offering phone, data and on-line services. After years of successful growth, Call-Net participated in an unfriendly takeover costing $1.8 billion and their capital expenditures were higher than ever leading to a significant net loss for the year, as well, their stock price were falling. Crescendo Investment along with some of Call-Nets major shareholders called a special shareholders meeting to request the removal of six of the nine board of directors. The company's board of directors is faced with planning their strategy for the upcoming shareholders meeting and with making some long-term plans for the company.

Teaching Note: 8B00M45 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Board of Directors; Acquisition Strategy; Corporate Governance
Difficulty: 4 - Undergraduate/MBA