Abstract

Andres Galindo is a young Colombian from an upper-middle class family in Bogotá. With his brother Carlos serving as the sole importer in the country for the top American brand Electra Sportswear, Andres sets out to create a chain of retail stores located in high end shopping districts. Understanding that his legally imported goods (due to 40-120% import tariffs) were at a dramatic cost disadvantage to openly marketed illegally imported brands and counterfeit labels, Andres decides to approach the problem as a retailing and marketing challenge by adding value through the retail sales process.

By 2005 Andres has fourteen stores, and a new challenge. Electra has decided to cut out the middle man—Carlos—and have Andres import the product directly. This ought to lower margins, but it’s a big step. Most important, though, is crafting a growth strategy for his company in the face of unfair competition and a relatively small target population.

The case should be positioned near the end of a New Business course—after the initial cases that are funded by the 4Fs and immediately before the formal venture capital case. It could also be used in a Growing Businesses course, or an International Business course.

Topics:, Entrepreneurship as a career choice, finding and shaping an opportunity, sports clothing retailing, wholesale purchasing and retail pricing, importing, competing against black market and illegal imports, hiring and maintaining a retail workforce, family members as partners and employees, funding, managing a multi-city expansion, manufacturing partnerships and supplier relationships, inventory systems and software, government regulations and licensing, growth strategies, keeping a low profile in a dangerous country.

Teaching Objective
To present a framework for opportunity assessment, shaping and growth in a culturally specific context outside of the United States.

William Bygrave and Carl Hedberg

Teaching Note Number: BAB-624

Keyword(s)

Sports Retailing
Entrepreneurship
Opportunity recognition
Wholesale purchasing
Retail pricing
Family Business
Importing
Growth strategy
Government relations

Abstract

Lenta is a cash and carry retail business located in St. Petersburg, Russia. At the time of the case, it was operating nine stores and generating over $500 million in gross sales. The case is set at the end of 2005, after a very successful year. Lenta’s founder and CEO, Oleg Zherebtsov, is faced with a dilemma. Where does he take Lenta from here?

This case teaches strategy, entrepreneurship, risk assessment and corporate culture all within the emerging business environment of the Russian Federation. This case is best suited toward the end of a strategy course or part of a capstone course at either the undergraduate or graduate level.

The case requires the students to consider how their choices and decisions affect multiple disciplines within a corporation. If Lenta decides to continue to grow, there are financing issues that have to be faced. Also, where is Lenta going to find the additional employees needed to staff and manage the new stores? Can they find people who will be committed to Lenta’s corporate culture, as noted by its Mission Statement and Values? If Lenta expands outside of St. Petersburg, what operational and distribution issues do they face and how do they establish a brand name and image in their new market?

In addition the case introduces the nuances associated with operating in a dynamic emerging market where the best decision that may exist in a market like the United States is not the best decision within the Russian market. Students need to be aware of the idiosyncrasies of operating in a business environment that is likely different from their own.

William Coyle and Natalia A. Zhiglinskaya

Teaching Note Number: BAB-623

Keyword(s)

Corporate Culture
Entrepreneurship
Government Relations
Growth
International
Marketing
Regulatory Environment
Retail
Risk Assessment
Russia
Site Analysis
Strategy

Abstract

Was Premier, Inc., a hospital GPO, guilty of ethical conflicts of interest? Premier was a group purchasing organization (GPO) for more than 200 affiliated not-for-profit hospitals and health care systems in the United States. A series of investigative articles in The New York Times, beginning in March 2002, charged Premier with multiple conflicts of interest. Among its allegations, the newspaper argued that seller-paid fees; investments by Premier and its executives in vendors; and investments by vendors in Premier-sponsored equity funds, research institutes, and conferences all biased the selection process for medical products and services. As a result, Premier did not always choose items of the best quality or value for its affiliated hospitals. Moreover, The Times charged, new products – particularly those developed by small firms – were effectively locked out, suppressing medical innovation and hurting patient care. Richard A. Norling, CEO, and other top executives of Premier faced the difficult task of formulating an effective response to the charges raised by The New York Times. The (B) case is an epilogue to the (A) case. It describes Premier’s decision to hire an independent ethics consultant, the process it established to direct his work, and the major recommendations made by the consultant. This case received the Emerson Center Award for the Outstanding Case in Business Ethics for 2004. It is suitable for upper-division undergraduate, graduate, and executive education courses in business ethics, leadership, business and society, and healthcare administration.

Anne T. Lawrence

Teaching Note Number: BAB-617

Keyword(s)

Conflicts of Interest
Ethics
Health Care
Management of Crises
Business & Society
Business-Government Relations
Corporate Governance
Corporate Responsibility
Government Policy
Hospital Administration
Medical Supplies
Nonprofit Organizations
Public Relations
Purchasing Suppliers

Abstract

Was Premier, Inc., a hospital GPO, guilty of ethical conflicts of interest? Premier was a group purchasing organization (GPO) for more than 200 affiliated not-for-profit hospitals and health care systems in the United States. A series of investigative articles in The New York Times, beginning in March 2002, charged Premier with multiple conflicts of interest. Among its allegations, the newspaper argued that seller-paid fees; investments by Premier and its executives in vendors; and investments by vendors in Premier-sponsored equity funds, research institutes, and conferences all biased the selection process for medical products and services. As a result, Premier did not always choose items of the best quality or value for its affiliated hospitals. Moreover, The Times charged, new products – particularly those developed by small firms – were effectively locked out, suppressing medical innovation and hurting patient care. Richard A. Norling, CEO, and other top executives of Premier faced the difficult task of formulating an effective response to the charges raised by The New York Times. The (B) case is an epilogue to the (A) case. It describes Premier’s decision to hire an independent ethics consultant, the process it established to direct his work, and the major recommendations made by the consultant.

This case received the Emerson Center Award for the Outstanding Case in Business Ethics for 2004. It is suitable for upper-division undergraduate, graduate, and executive education courses in business ethics, leadership, business and society, and healthcare administration.

Anne T. Lawrence

Teaching Note Number: BAB-617

Keyword(s)

Conflicts of Interest
Ethics
Health Care
Management of Crises
Business & Society
Business-Government Relations
Corporate Governance
Corporate Responsibility
Government Policy
Hospital Administration
Medical Supplies
Nonprofit Organizations
Public Relations
Purchasing
Suppliers

Abstract

This note on Peru is intended as a brief introduction to graduate and undergraduate students in the cultural, political, and economic background of Peru from its independence to 2002. It can be used as supporting reading in teaching the case: “Lucchetti,” BAB104 and as material to support a country and national business systems analysis. The note offers a wealth of background economic data on Peru.

In mid-2002, Alejandro Toledo had been president of Peru for just about a year, and things weren’t going well. His popularity was falling and his political capital was dwindling. A major bone of contention was his plan to continue the policy of his predecessor, the charismatic, enigmatic and energetic Alberto Fujimori, to privatize state-owned enterprises (SOEs).

Fujimori held office for ten years and had pursued strong policies, using his Presidential powers to their fullest. He had ended a guerrilla insurgency, reduced the fiscal deficit, and opened Peru’s economy both internally and to global influences. After decades of political instability, democratic institutions seemed to be establishing themselves. Many economic indicators were good - GDP was rising, inflation was very low, and the currency was stable. However, half of Peru’s population still lived in poverty, and Peru still resembled its underdeveloped neighbor Bolivia more than it did prosperous Chile.

The fiscal deficit had begun growing again in the late 1990s. Fujimori had had the benefit of applying SOE sales to the budget, but many transactions had questionable aspects, and transparency was lacking. After he left office suddenly and under suspicious circumstances, privatizations were subjected to much more scrutiny and opposition. With the deficit growing, a delay in expected privatization income would make Toledo’s budget situation worse.

Jon Roche, U. Srinivasa Rangan, David Wylie, Ed Cale

Teaching Note Number: Forthcoming

Keyword(s)

Peru
Country analysis
National business systems
Latin America
Politics
Economic Development

Abstract

This case chronicles the experience of Lucchetti, a Quinenco subsidiary, as it expanded from its historically strong domestic stronghold into Peru.

Lucchetti, a pasta company, had grown to the point where there was no room to expand in the Chilean market. The Peruvian market, however, looked extremely promising. Thus in 1996 Lucchetti Peru was born.

By late 2003, however, the new state-of-the-art pasta plant was being liquidated. The management of the company was considering whether Lucchetti should leave the Peruvian market altogether and absorb a $150 million write-off or, alternatively, to continue and build a new plant to take advantage of what was left of the Lucchetti market share, even though it would require a considerable additional investment. Had this been a case of a good strategy plagued by Murphy’s Law “everything that can go wrong will go wrong?” Was there something they should have known or some point where the team members had made the wrong decision? The lesson to be gleaned from this failed Peruvian venture remained unclear and they wanted to apply those lessons to future domestic and international expansion in this and other ventures.

This case is intended for use in graduate and executive courses in international strategy and country analysis. It places the corporate expansion into a multi-national context and encourages students to consider strategy from the broader context of the Peruvian national business, political, and economic systems.

The case is best taught in combination with case # BAB105: “Peru 2002: The Fujimori Effect” which offers the broader background material on the Peruvian business and political environment.

David Wylie, U. Srinivasa Rangan, Ed Cale

Teaching Note Number: Forthcoming

Keyword(s)

Peru
Chile
Consumer goods manufacturing
Competitive analysis
International strategy
National business systems

Abstract

After restructuring Scott Paper with a 34% reduction in head count and successfully selling the company to Kimberly Clark, Al Dunlap is hired as CEO by Sunbeam. This case describes the management principles of this corporate turnaround expert and his actions at Sunbeam.

Ross Petty, Virginia Soybel, Phyllis Schlesinger, Sam Perkins, David Wylie, Al Anderson

Teaching Note Number: Forthcoming

Keyword(s)

Accounting standards
Corporate reorganization
Crime, Ethics
Financial management
Fraud
General management
Legal aspects of business
Organizational change
Restructuring

Abstract

Forthcoming

Ruth Gilleran

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

While the president of Grand Circle Corporation, a tour operator, had been pleased with its performance to date, the industry was reeling from the events of September 11. GCC was still profitable, yet customer deposits for upcoming trips were down significantly from the year before. He was unsure whether he could take GCC to the next level and reach the one billion dollar top line target. Did he have the right structures and processes in place?

1. Product Scope: How many destinations should they offer for 2002? Which product types should they focus on: GCT, OAT, Cruise, River Cruises, or VBT?
2. Customer Scope: Which segments should they focus on? How should they market to them?
3. Pricing: What pricing approach should they take for 2002?
4. Gaps: What gaps did they need to close to reach their $1 billion sales goal in 5 years.

This case includes information and background on the US Tour Operator Industry in 2001. It is targeted for use in both graduate and undergraduate classes in strategic management, but is also appropriate for courses in hospitality and marketing. For those who wish to use a separate industry note, please use “The US Tour Operator Industry in 2001,” BAB121.

James E. Henderson and Martin Zanone

Teaching Note Number: N/A
Keyword(s)

Travel industry
Hospitality
Strategy
Competitive advantage
Industry analysis
Generic strategies

Abstract

Forthcoming

James E. Henderson

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

MWH was striving to become a global leader in water/environment, energy and infrastructure sectors through an expanding set of services, products and construction capabilities by leveraging its global position and knowledge management concepts. As this concept was evolving, it needed to continuously show value back to staff, managers, and the company as a whole. MWH executives wanted to continue to expand KM usage across geographic and business divisions.
The protagonist of this case, Vic Gulas, had recently expanded his responsibilities to include leading the human resources (HR) and information technology groups. By leading the IT, HR, and KM groups, he could devise strategies to address both the technology and social aspects of knowledge management. However, given limited resources and the time pressures to continue to show results, he was confronted with several potentially competing strategies to pursue. Gulas’ decision on which course of action to take would determine the role KM would play at MWH in the future.

Salvatore Parise, Keith Rollag, Vic Gulas

Teaching Note Number: Forthcoming

Keyword(s)

Information Technology
Human Resource Management
Knowledge Networks
Knowledge Management
Reward Systems
Service Management

Abstract

Jim Poss’s enterprise, Seahorse Power Company (SPC), was an engineering start-up that encouraged the adoption of environmentally friendly methods of power generation by designing products that were cheaper and more efficient than twentieth-century technologies. Jim was sure that his first product, a patent-pending solar-powered trash compactor, could make a real difference.

After funding the product development and testing, by May of 2004, the Seahorse Power Company had a total of six team members. They had all been given an equity stake in exchange for their part-time services. Jim was seeking funding to allow him to take the business to the next level with a larger production run with reduced component costs and increased production efficiencies.

The case chronicles the evolution of the company and places Jim at the critical juncture of deciding how best to deal with potential investors and funding alternatives.

Carl Hedberg, William Bygrave

Teaching Note Number: BAB-596

Keyword(s)

Entrepreneurship
Fabrication & prototype development
Financing
Entrepreneurship
Bootstrapping
Raising money
Venture capital and private equity investors
Startup and early expansion stage
Solar Power

Abstract

DayOne opened for business in January 2001. The first store, located in San Francisco, provides products and services to pre-natal and post-natal parents and their babies; it was an immediate success with customers. Now Andrew Zenoff, founder and CEO, wants to grow his venture into a national chain of DayOne centers providing essential services, products, and community to first-time parents, but has not yet raised the money he needs. This is Andrew’s second startup.

Carl Hedberg, William Bygrave

Teaching Note Number: BAB-591

Keyword(s)

Entrepreneurship
Opportunity recognition
Retailing
Real Estate Negotiation
Building a management team
Bootstrapping
Raising money
Venture capital and private equity investors
Franchising
Serial entrepreneurs
Startup and early expansion stage

Abstract

USA Golf Holidays is a five-year-old business specializing in customized vacations for golfers. Its 2003 revenue was $5.8 million with a loss of $225,000. The CEO (and founder) is planning the next stage for the company. He hopes to build on USA Golf Holidays competencies and grow the company to grow the company’s revenue to approximately $50 million by 2007. Issues he is considering are whether to expand beyond golf vacations; how to use information technology to improve the company’s operations; how to raise money to fund the growth strategy; and whether he is right person to lead the company in it next phase.

William Bygrave, Carl Hedberg

Teaching Note Number: BAB-588

Keyword(s)

Leisure travel
Fragmented industry
Early growth and expansion
Using information technology to the company more effective and efficient.
Internet and its impact on the travel industry
Financing growth
Management team

Abstract

This case is positioned as the first high–potential startup in a new ventures course to increase the understanding of what constitutes a high–potential company that attracts professional venture capital. But it's not a "perfect" high potential, so it gives students an opportunity to spot its deficiencies. The case that should immediately follow Neverfail Computing in a course is SolidWorks (BAB068), which is an almost "perfect" high–potential startup.
As a financing case, Neverfail Computing links 4F (Founders, Family, Friends, and Foolhardy) funding and formal venture capital. Neverfail Computing has a proven team, with a proven lead entrepreneur, in an exciting market niche in a rapidly growing technology, RAID (Redundant Arrays of Independent Disks) hot–pluggable, fault–tolerant, SCSI (Small Computer System Interface, pronounced “skuzzy,” and used in a sentence as, “Basically, Neverfail sold SCSI drives.”), hard–drive disk arrays. It is the kind of high–potential venture that attracts venture capitalists.

Dan D'Heilly, Kevin Ebel, William Bygrave

Teaching Note Number: Forthcoming

Abstract

Velky Potraviny is a discount grocery store chain in the Czech Republic. The firm strives to be the market leader in providing a wide assortment of grocery products at the lowest possible price. The move towards a market economy has prompted rapid expansion, and the Velky distribution center is nearing capacity for the 37 outlets it presently serves in the greater Prague area. Velky has realized the need for efficiency in its warehouse operations. Velky further recognizes that the distribution center employees are an integral part of the company and critical for efficient warehouse operations, hence the need to address the performance measurement system of the workers.

Velky cannot independently address the issue of worker performance measurement without addressing the inter-related issues of the warehouse, namely, the layout of the warehouse, flows within the warehouse, capacity expansion, managing deliveries to the outlets, and its overall link to the corporate goal.

William Coyle. Jay Rao

Teaching Note Number: BAB-513

Keyword(s)

Supply Chain Management
Retail Design
Warehouse Management
Incentive Systems
Czech Republic

Abstract

This case, intended to be positioned towards the end of a course in new ventures, chronicles the evolution of Adam Aircraft, a highly innovative entrepreneurial start-up company that flew in the face of conventional wisdom in the general aviation market. Its founder, Rick Adam, had orchestrated the fabrication of two flying prototypes—the A500 twin piston and the A700 jet—at a speed of design and production that had turned heads in all sectors of the aviation industry. Certification on both models was expected in the coming year—two years ahead of a number of well-funded competitors. With their third product—the A600 twin turboprop—nearly ready to fly, Adam Aircraft had become the one to watch in 2004.

Carl Hedberg, John Hamilton, William Bygrave

Teaching Note Number: BAB-510

Keyword(s)

Building a top-flight management team
Building an aircraft company in the middle of a slow economy
Business aircraft
Design engineering
Disruptive technologies
Entrepreneurship
FAA regulatory process
Fabrication & prototype development
Financing
Funding
Government contracts
Manufacturing partnerships
Market identification
Product positioning
Strategic partners and alliances
Target Marketing

Abstract

Forthcoming

"Abdul Ali, Robert J. Kopp"

Teaching Note Number: Forthcoming

Keyword(s)

x

William F. Glavin Center for Global Management Authors:

• Steve A. Allen
  Professor of Strategy and International Business
  The Paul and Phyllis Fireman Charitable Foundation Chair
• Allan R. Cohen
  The Edward A. Madden Distinguished Professor of Global Leadership at Babson College
  Director of Corporate Entrepreneurship
• Fritz Fleischmann
  The William R. Dill Governance Chair
  Dean of Faculty
• Dhruv Grewal
  Toyota Chair in Commerce and E-Business
• Jean-Pierre Jeannet
  F.W. Olin Distinguished Professor of Global Business
  Director of W. F. Glavin Center for Global Management
• John Marthinsen
  The Distinguished Chair in Swiss Economics

The William F. Glavin Center for Global Management was launched in 1997. It is the organization that leads Babson's international initiatives and contribution to the advancement of global management education. Through its regional institutes and global program services (GPS), the Glavin Center creates a worldwide network of partner institutions from which new intellectual capital and new experiential opportunities continually arise. With the mission to bring a global orientation to all facets of Babson's management education and programs, the Glavin Center ensures that each and every Babson student receives the preparation they need to succeed in the global economy. Through close collaboration with other Babson organizations, such as the Arthur M. Blank Center for Entrepreneurship, the Babson Executive Education, and the Center for Women's Leadership, the Glavin Center further extends Babson's global reach and leadership.

Abstract

Impact Marketing & Communications and the associated industry note, The Regional Advertising Industry (New England), describe a small (23 employees) and profitable advertising agency and the surrounding pattern of industry forces. The agency is interesting strategically because of its exclusive focus on high technology clients, and its distinctive organizational arrangements for serving its clients needs. Perhaps more important, however, is the culmination of a complex pattern of changes in the advertising industry itself.

An Epilogue, included as an addendum to the teaching note, describes how Impact Marketing & Communications did, indeed, get hot and then “melted down” more than ten years later. Reviewing the success and ultimate failure of this company over a long time frame illustrates the repeated need for creative transformation in an industry such as advertising. This case suggests a deeper lesson that each transformation should focus on yet higher value interpretations of opportunities within the market segment. Each time the need was to differentiate more tightly with more refined and powerful concepts. Lastly, the epilogue demonstrates the fragility of success in this industry as the company fails completely as soon as she takes her hands off the reins.

Use of the Case
This case and industry note are suitable for courses in strategic management, small business, service industries, and strategic marketing. It is primarily designed for the early part of such courses. The material is relatively distinctive, partly because of its focus on a small business, on a service (advertising) business, and on a regional industry. It is unusual, however, in the comprehensiveness of its perspective, embracing organizational and other issues within a large strategic management frame.

Teaching Objectives for the Case
Some of the objectives the case study can help to meet in a course are:
1. Introduction and an early example of the concept of strategy and the concepts of industry analysis
2. Practice in (a) industry analysis, (b) strategy identification, (c) strategic position analysis, and (d) exploring and choosing among strategic alternatives
3. The characteristics of a small, service business
4. The properties of a “niche strategy” or tight differentiation towards a well defined, high value market segment
5. The implications of a regional, single market, multiple product strategic scope
6. The identification of points of industry transition and how a strategy can be formulated to deal with such a transition
7. Organizational, personnel, and other “implementation” issues
8. Industry structures, forces, and evolution, particularly according to regional influences
9. Using the epilogue reveals patterns of transformation over time and then folds the company and its leaders into the cycle of their life

Jeffrey Ellis

Teaching Note Number: BAB-615

Keyword(s)

Strategy
Industry Analysis
Service Business
Small Business
Regional Business
Organizational Behavior
Industry transformation and life cycle
Advertising

Abstract

This case presents a situation that many students will face who are seriously considering launching their own new venture. It allows students to go through the process of identifying and confronting both the attractive aspects and the worrisome uncertainties involved in a start up. Alternative strategies for dealing with the risks can be developed and discussed. Students should be asked to choose a path, defend their decision, identify their assumptions and how they will test them, and indicate what they will do if their assumptions prove false.

Mark P. Rice

Teaching Note Number: BAB-611

Keyword(s)

Business Planning
Entrepreneurship
Start-up Finance
New Ventures
Multi-Media
Distance Learning

Abstract

This case was written for graduate and undergraduate courses in entrepreneurship.
Elderline Communications was a voice-application technology enterprise founded by two former colleagues. After being bootstrapped from its inception, it was on the verge of a meltdown. It had reached a critical juncture.
While the momentum had been encouraging, the need to conserve cash and raise money had become essential if the company was going to survive. Three months prior, in May of 2002, the team had closed a multi-investor seed round of just over $380,000. While it had been a relief to finally compensate employees who had up until then been working on faith, it was evident that things were going to get real tight again, and fast.
The Elderline partners had discovered that venture capitalists, sobered by the dot-com bust and a steadily declining stock market, seemed to be favoring less risky opportunities that could offer—if not actual profits—at least established contracts, clients and revenue. In a move to cast a wider net, the team was in talks with a “finder”—a well-connected funding broker with venture investor contacts throughout the Northeast.
What should they do? Should they hire this finder or seek alternative methods of tapping into the venture funding they required?

Carl Hedberg, William Bygrave

Teaching Note Number: BAB-610

Keyword(s)

Entrepreneurship
Bootstrapping
4K financing
Valuations
Venture Capital
Sweat equity
Investment consultant

Abstract

This case was written as a “B” case to be taught with the “Ajay Bam” case, BAB 070. The cases deal with a nascent high-potential business that is conceived by two MBA students who have no experience in the industry where they believe they have found a niche for an exciting new product, a technology platform that enables consumers to pay for merchandise and simultaneously participate in loyalty programs using any type of cell phone.

The cases should be positioned about one-third of the way into a new ventures course—after the initial cases that are funded by the 4Fs and immediately before the formal venture capital case.

Ajay and his partners conceived Vayusa just as the Internet bubble was bursting. When they were earnestly shaping the opportunity in the spring of 2001, investors were dumping Internet stocks so fast that valuations plummeted. Venture capital returns turned negative for the first time in history. Business angel investors were suffering as much—maybe more—than professional venture capital firms. In May 2001 when Ajay Walter and Troy were graduating, it was virtually impossible to raise any money from venture capital firms or business angels for a seed-stage company, let alone a seed-stage company with neophyte entrepreneurs who lacked business experience. Nevertheless, Ajay and his partners were not discouraged. They went ahead with the development of a simple prototype. They continued to develop their contacts, including venture capitalists, angels, merchants, advisors… indeed, anyone who could help them develop their venture.

As the Vayusa case unfolds, Ajay and his partners were on a treadmill: Potential investors wanted evidence that there was a market… to prove there was a market demand, Ajay needed a prototype that could be evaluated by consumers and merchants… to develop a working prototype they needed money… to get money they need to show potential investors that there was a market demand… They had no choice but to continue bootstrapping they venture.

Carl Hedberg, William Bygrave

Teaching Note Number: BAB-570

Keyword(s)

Career choice
Opportunity recognition
Business planning
Team building
Networking
Bootstrapping
Venture capital
Board of advisors

Abstract

The case is about a recent U.S. immigrant from Bulgaria who starts an import business because he probably has no better choice for a career. The business is importing Bulgarian feta cheese in bulk and selling it in the U.S.A. The entrepreneur, Kalin Pentchev, has no previous experience in either the import/export business or the food industry. The case deals with finding opportunity, using a network of existing contacts and developing new contacts, scraping together money from friends, family, and himself and his girlfriend to finance his venture, evolving a sales strategy by trying different “channels,” learning by doing. The case should be positioned early in a new ventures course.

Carl Hedberg, William Bygrave

Teaching Note Number: BAB-598

Keyword(s)

Career choice
Opportunity recognition
New venture finance
Networking
Bootstrapping
Importing
Food products
Selling on-line
Channel strategy

Abstract

This case explores the challenges facing the new investor relations manager of a publicly traded customer relationship management software company, Mark Hanson, as he rethinks his company’s disclosure strategy amidst new regulatory and competitive pressures and following a cease and desist order from the Securities and Exchange Commission.

This case can be used and is intended for interdisciplinary use in the general area of management strategy. As such it can be used in courses focusing on corporate communication or reputation management and is ideal for courses dedicated to investor relations and governance as well as organizational structure.

This case is designed to help students learn the pitfalls of certain disclosure practices while maintaining a firm understanding of SEC regulation of material information (e.g. Regulation Fair Disclosure and the Sarbanes-Oxley Act. See exhibits below). It is also intended to heighten students’ awareness of various organizational structure and communication issues while grappling with changes in management strategy in a company that currently leads an industry about to undergo a major transformation.

Cynthia Clark Williams

Teaching Note Number: BAB-595

Keyword(s)

Investor relations, disclosure strategy, regulatory environment, SEC, corporate communications, governance, organizational structure.

Abstract

Fundación Chile shows how a private non-profit corporation contributes to technological innovation and develops productive links, adds value and generates technological and human skills in a diversified economy based on natural resources. It is a star example of an enterprise based on science and technology that was set up and grew to become a leading technology institution, recognized nationally and internationally.

The case poses the direct question of what strategy Fundación, with its solid record of accomplishment in technology transfer and new business development, should follow to assure its own future in a changing environment. To answer this question, students will need to perform a SWOT analysis in light of Fundación’s mission. This leads to a deeper issue, the institution’s replicability in other national environments.

Macarena Carmona, Scott Tiffin

Teaching Note Number: BAB-589

Keyword(s)

Non-profit
Chile
Technology Innovation
Biotechnology
New Business Creation
Technology Transfer
Venture funding

Abstract

This is an interpersonal and systems case in which Jim Davis, in a staff position, has been given the responsibility for results that can only be achieved through influencing line (branch) managers over whom he has no direct authority.

This case lends itself to role-plays of different kinds that should yield useful insights into the process of influence without direct authority.

Allan Cohen, Steve Fink, Herman Gadon, Robin Willits

Teaching Note Number: BAB-586

Keyword(s)

Organizational Behavior
Power and Influence
Influence without Authority
Interpersonal Relationships

Abstract

Changes came hard at Stein, Bodello, & Associates, Inc., a consulting civil engineering firm employing 100 people in four branch offices. Following a move to a new location and an upgrading of the business and project management functions, some unhappiness had developed in the ranks of middle management.

This case concerns leadership and change but from a bottoms-up perspective. And looks at leadership through the eyes of subordinates, and focuses on the need to learn how to manage the boss.

The case is appropriate for use in undergraduate, graduate, and executive classes in human resource management.

Allan Cohen

Teaching Note Number: BAB-582

Keyword(s)

Human resource management
Change management
Service management
Growth management
Middle management

Abstract

This case is appropriate for use in undergraduate, graduate, and executive courses in MIS and operations.

The case introduces the efforts and challenges facing the team leaders trying to redesign the structure of Travelers’ bonding risk assessment process. While the conversion to an electronic system and central paperless knowledge system promised to deliver faster, more efficient, and more accurate service, the protagonist and the team he leads face considerable hurdles in getting the project approved and implemented.

David Starr, Donna Stoddard

Teaching Note Number: Forthcoming

Keyword(s)

Information technology
Insurance
Customer Service
Knowledge Management
Software architecture
Team management
Risk Assessment
Process design

Abstract

Matt Grant, a part-time MBA student, is developing a free publication that lists a calendar of upcoming athletic events including road races, walks, triathlons, biathlons, bicycle tours/races, open track meets and multi-sport activities in the greater Boston region. In his spare time, he has launched a trial edition and the response has been so encouraging that he is on the verge of giving up a promising career with a big electronics company to pursue his new venture full time. He is wondering how to break the news to his wife, who is pursuing her own career as a lawyer.
The case should be positioned at the beginning of a new ventures course.

William Bygrave, Carl Hedberg

Teaching Note Number: BAB-573

Keyword(s)

Career choice, finding and shaping an opportunity, networking, raising money from the 4Fs, bootstrapping, publishing, distributing a give-away magazine, young professional couple with dual careers.

Abstract

This case is appropriate for undergraduate, graduate, and executive courses on international marketing, strategy, and competitive strategy.

The PC industry was in terrible shape in 2001. As Sony strived to fit the PC into a larger business model that included the sales of digital cameras, MP3 players, camcorders, TVs, cell phones and PDAs, the latter half of 2002 turned out to be financially very challenging for the PC business and analysts were questioning the sustainability of Sony’s successful entry and establishment of its PC business in the US.

The case chronicles the 1995-96 (re)entry efforts and results of the major Japanese firms after a description of the US PC history and the US PC market environment and developments in the period 1995-2000.

Jay Rao

Teaching Note Number: Forthcoming

Keyword(s)

Personal computers
Industry analysis
International marketing
Product strategy
Channel Strategy
Distribution

Abstract

This case deals with a division of Rosemount, Inc. that has concerns about meeting customer delivery requirements. While the delivery problems result from long lead-times throughout the ordering, production, and delivery process, the focus of this case is within the manufacturing plant. The goal set for the case protagonist, Mike Severson, is to reduce the production cycle time from 5 days to 3 days. Students must determine the problem within the plant, analyze the logistical behavior of products through the plant, and suggest areas for improvement.

Michael McCord, Sunil Soma, Kathleen McKone, Mike Severson, Jeffrey Bell

Teaching Note Number: Forthcoming

Abstract

A comprehensive review, covering a full range of issues in finance and management. Dice is a small cap company with great potential in the right economic environment, but unsuccessful in reaching profitability. Scott Melland, president and CEO, must decide on the best strategic alternative for Dice, given the historical, financial, and other important information leading up to the end of 2002. Ideal for analysis of capital funding alternatives, the impact of convertible debt on a relatively small company, corporate restructuring and bankruptcy concerns, corporate governance issues, and various types of business consolidations.

Joseph Lakatos

Teaching Note Number: Forthcoming

Keyword(s)

Corporate governance, Corporate reorganization, Corporate strategy, Financial management, General management, Information technology, Internet, Online information services, Organizational change, Organizational structure, Personnel selection, Recruitment, Strategic planning.

Abstract

Traces the development of the balanced scorecard for a fast-growing biotech company in transition. Reports how the new CEO embraces the scorecard concept early to explain and measure the progress of his strategic objectives to the various stakeholders. Subsequently traces the rollout and development of the scorecards as they cascade throughout the organization. Finally, the North American CFO confronts the problem of relating scorecard targets to individual performance goals of his finance team. Teaching Purpose: To explore the difficulty of drilling down the balanced scorecard to a specific functional area where only one relevant corporate key success factor is considered. How many elements of the scorecard do you need to have balance? The issue is further complicated by the matrix organizational structure where the function, finance, and line of business, therapeutic areas, have a shared responsibility for achieving a scorecard target--accounts receivable collections.

Lawrence P. Carr

Teaching Note Number: Forthcoming

Keyword(s)

Balanced scorecard
Biotechnology
Competitive strategy
Europe
Finance & accounting
General management
High technology
Organization
Organizational structure
Switzerland

Abstract

Forthcoming

O'Conner Mark P. Rice

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Jones

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Donna Stoddard David Starr

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Keith Rollag Danna Greenberg

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Srinivasa U. Rangan

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Srinivasa U. Rangan Roche

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Srinivasa U. Rangan Roche

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

In the face of industry changes, strong competitive pressures, regulatory transformation, and the evolution of standards, broadband company Wi-LAN faced significant challenges. How could it succeed as a wireless technology and research company? How could it shape future IEEE standards to use its patents? Given its size, how should it collect royalties from incumbents? What rates should it charge? How could it succeed as a product company given the downturn in the telecom sector? What should be its focus: on marketing wireless broadband products or pursuing technology agreements with players in these various segments? Was it correct in focusing on the wireless broadband market given the opportunities that lay in wireless local area networks, home networking, telematics and wireless road access?

John Cunningham, James Henderson

Teaching Note Number: Forthcoming

Keyword(s)

Standards
Wireless Technology
Regulation
Strategy
Industry analysis
Alliances and acquisitions

Abstract

This note describes the competitive and consumer need for, the development, and the implications of standards across industries. It offers an understanding of standards developed explicitly through the use of either government or non-government sponsored standard-setting bodies, and indirectly through market evolution. It is intended to be used either in conjunction with cases that deal with standards or as a stand-alone discussion vehicle for understanding the role of standards in the evolution of an industry and their impact on the marketplace.

Sanjiv Patel, under the supervision of Professor James Henderson

Teaching Note Number: Forthcoming

Keyword(s)

Standards
Consumer behavior
Regulation
Product standardization
Regulatory agencies
Industry analysis

Abstract

This note provides an overview of the telematics industry in 2002. It may be used with to stimulate a discussion on the industry, as a vehicle for industry analysis, or as an adjunct to other cases about companies within the telematics industry.

Would cars in the future be part of an integral information portal in a wireless world? The technology that would enable this revolution was called telematics, which was defined as “mobile services delivered wirelessly to in-vehicle devices.” Was the next step into full-scale wireless services obtainable or desirable? Certainly the financial potential for telematics was creating excitement amongst automakers that competed in an industry plagued by steep competition and razor thin margins.

If the automakers could successfully capture some of the financial value expected from the nascent telematics market, their profit margins would improve. However, telematics was also creating anxiety in Detroit, as auto manufacturers would be leaping into an uncharted world of wireless communications and services, far removed from their core competencies in automobile manufacturing, design and marketing. The automakers still faced a number of unanswered questions regarding this exciting new territory as they were making their decisions on their new product models that were to be launched in two to three years time.

James Henderson

Teaching Note Number: Forthcoming

Keyword(s)

Telematics, automobile industry, industry analysis, strategy, new technology, value chain, telecommunications.

Abstract

This case presents the dilemma facing one of the largest lobster wholesalers in the fishing village of Vinalhaven, Maine. Lobster prices were lowest in the last months of the year before the lobsters migrated to deeper waters and were harder to catch, but raised quickly to an annual high in March. Brown had recently purchased three lobster pounds which together held up to 180,000 pounds of lobster. In these penned-in areas, lobsters could be nurtured for up to six months before the risk of disease became too great. Having multiple pounds reduced the risk of an epidemic destroy the entire inventory, since rarely did disease spread between pounds.

Prices had been holding above average, but Brown knew that early season prices held no guarantee about prices later in the year. He has to make a decision about how many of the pounds to open up for the season, whether to install an aeration system in one or more of his pounds, when to start putting lobsters into the pounds, how many to hold, and how long to keep them.

This case is intended for use in managerial economics, statistics, and operations at the undergraduate and graduate levels. The case itself is very short but very rich. Students must make a judgment about how much lobster Brown should purchase to hold for the seasonal price increases that occurred each winter. They must take into account a number of risk factors including price history, mortality rates, and cost of capital.
While they need to use various analytical tools, the case comes down to the often fuzzy domain of qualitative risk tolerance.

David Wylie

Teaching Note Number: BAB-575

Keyword(s)

Fishing
Operations
Managerial economics
Statistics
Operations management

Abstract

After three years managing the growth and development of the Business Ventures Group (BVG), Joanne Hyland, vice president for new venture development at Nortel Networks, was being increasingly challenged by Nortel Networks’ senior management to justify the BVG’s existence and show its impact on Nortel Networks’ bottom line.

From a strategic perspective, Nortel Networks was struggling to evolve from being a telecommunications company to a major player in the Internet Age. To achieve success, the top executives at Nortel Networks saw the need for capabilities that were often second nature to start-up businesses. Therefore, they looked at the BVG as a learning opportunity. By taking technical concepts from the idea stage to being a valued part of a business unit or perhaps a spinout, Nortel Networks hoped to learn and develop much needed skills—skills that might make a giant like Nortel Networks capable of moving at the speed necessary to be successful in the New Economy. Having a formal program for evaluating and cultivating venture opportunities allowed Nortel Networks to continually streamline its innovation management processes and potentially uncover efficiencies that could be applied to its numerous lines of business.

The case considers how Nortel Networks could manage spin out ventures and other unaligned business opportunities in the future.

Gina Colarelli O'Connor, William T. Maslyn

Teaching Note Number: Forthcoming

Keyword(s)

Corporate entrepreneurship
Telecommunications
Strategy
New ventures
Corporate learning
Innovation

Abstract

Forthcoming

William Lawler "John Shank, Lawrence Carr "

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

John Shank Latypova

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Lawrence Carr "Givens, Gross, Kellerman, Quesada, Zipeto"

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Ho

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Ho

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

James E. Henderson

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

As the new Millennium dawned, many ‘old economy’ companies faced the challenge of transitioning into the Internet era, making ‘Go Web or go dead’ the common mandate. For John Kilcullen, CEO and publisher of IDG Books, the Internet offered an opportunity to fashion a new business model based on recurring revenues rather than one-time transactions. Instead of just selling books, Kilcullen envisioned the IDG Web site as the locus of continuing education and information.

This case chronicles the evolution of the “Dummies” series of books within the structure of the huge IDG organization, offering insights and discussion on what it takes to foster a successful corporate entrepreneurial climate.

Sam Perkins, Neal Thornberry

Teaching Note Number: Forthcoming

Keyword(s)

Corporate Entrepreneurship
Publishing
Entrepreneurship
Branding
Innovation
Product Development
Leadership

Abstract

Few recent events have shaken public confidence in product safety as much as the recall of 6.5 million Firestone tires in August 2000. The defective tires made by Bridgestone/Firestone Inc. were supplied primarily as original equipment on Ford Motor Company sport utility vehicles (SUVs) and sold as replacement items for SUVs and light trucks. For some consumers, the combination of Firestone tires and Ford vehicles proved lethal. Accidents involving tread separation and rollovers were blamed for 148 deaths and over 500 injuries.

This case, intended for use in undergraduate, graduate, and executive courses in ethics, law, or public relations, chronicles the actions and reactions of the Ford and Firestone, various legislative and regulatory bodies, and the public as the truth emerged.

Thomas Sullivan, Michael Lelyveld

Teaching Note Number: Forthcoming

Keyword(s)

Ethics
Product Liability
Public Relations
Product Recall
Legislative Action
Government Regulation

Abstract

This case focuses on the efforts of Electronic Commerce Network, an early stage start-up company providing electronic commerce services to web merchants and their fulfillment, payment and shipping partners, to understand its business model and refine its business plan in preparation for another round of financing. It is intended for graduate level courses in management accounting.

The teaching note includes three sections: 1) Assignment, 2) A two page B case that can be reproduced and handed out in the latter part of class, and 3) Slides that can be used both as a teaching guide and as a recap presentation for students at the end of class.

William Lawler

Teaching Note Number: BAB-612

Keyword(s)

Cost Analysis
Process Redesign
Capacity Planning
ABC Analysis
Business Planning
Cost Accounting
Transaction analysis
e-Commerce