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

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x

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Jones

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Donna Stoddard David Starr

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Keith Rollag Danna Greenberg

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Srinivasa U. Rangan

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Srinivasa U. Rangan Roche

Teaching Note Number: Forthcoming

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Abstract

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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 "

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x

Abstract

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John Shank Latypova

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

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Ho

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Ho

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James E. Henderson

Teaching Note Number: Forthcoming

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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

Abstract

“MJINI – Urban Youth Experts” was founded by two recent college graduates as a research consulting firm, focusing on the buying patterns and lifestyle preferences of the urban youth who were setting many fashion trends but which marketers found difficult to reach. Not only could the founders leverage the backgrounds from which they came, but also help their communities by communicating, building respect and giving back to youth groups.

As they met with some success, however, they were faced with a number of questions that typically face start-up companies. How fast to grow, how and who to hire, how to train new recruits, how to finance growth, was their marketing and consulting product right, how should they determine its real market worth and billing rates, where did the greatest opportunities lie?

This case was written for undergraduate and undergraduate classes in marketing and entrepreneurship, offering a broad palette of issues typically faced by practitioners and a glimpse into the often foreign urban youth market. It is an easy and interesting read, yet rich in pedagogical opportunities.

Michael Lelyveld, Serge Paul-Emile, David Wylie

Teaching Note Number: Forthcoming

Keyword(s)

Marketing
Market Research
Minority-owned Business
Entrepreneurship
Growth Strategies
Consumer Fashion Marketing
Start-up Finance
Consulting

Abstract

Forthcoming

Joanne D. Williams Michael Fetters

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x

Abstract

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Jane Bozewicz Michael Fetters

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William Lawler

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William Lawler

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Lawrence Carr Lawrence Smith

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William Lawler

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John Shank

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John Shank

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John Shank

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John Shank

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Van Bommel

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John Shank et al.

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Ross Petty Macomber

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Ross Petty

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Nan S. Langowitz

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Paul Mulligan

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Paul Mulligan

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Paul Mulligan

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Paul Mulligan

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Paul Mulligan "Susan Engelkemeyer, Richard Bliss"

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Joseph R. Weintraub Tananka

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Farshad Rafii, Sam Perkins

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Stephen A. Allen

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Stephen A. Allen

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Kathleen McKone-Sweet

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Stephen A. Allen

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Stephen A. Allen

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Stephen A. Allen

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Stephen A. Allen

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Stephen A. Allen

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Joseph R. Weintraub, Bjarki Young

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Stephen A. Allen

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Stephen A. Allen

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Cogliandro

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Robert J. Kopp

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Robert J. Kopp

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Robert J. Kopp

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Kenichi Matsuno Treiser

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Kenichi Matsuno

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Donna Stoddard Pelton

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Elaine M. Landry Kara Maupin

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Elaine M. Landry

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Elaine M. Landry

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Elaine M. Landry

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Elaine M. Landry

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Paul Mulligan Susan Engelkemeyer

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Anne Donnellon Sue Mundell

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Jeff Ellis Curtis Bragdon

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William Lawler

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Srinivasa U. Rangan "David Wylie, Roche"

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Jeff Ellis Pugh

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Jeff Ellis Students

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James E. Henderson

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Abstract

KomTek (C) describes the deliberations of a problem solving team at a prosthetic hip manufacturer. The company has introduced a slight modification in one it its existing products and thus experiencing difficulty in the manufacturing process. This is resulting in higher scrap and quality problems and hence lower than expected price-cost ratios for that product. The problem solving team is digging through its cost-accounting system and the data from the plant-floor, looking for causes for problems. In addition to the numbers, the team is also closely looking into each step of the production process that might be contributing to the problems.

A complete analysis of this segment of the case will include both the quantitative (cost accounting and quality data) and the qualitative (policies and procedures) aspects of the production process.

This case is used in an integrated Operations Management / Managerial Accounting / Organizational Behavior undergraduate class and a stand-alone Operations Management class at the graduate level. It is ideally taught in the Quality or TQM module / segment of the course. Students should have some basic statistics knowledge prior to doing this case.

James Hunt, Elaine Landry, Jay Rao

Teaching Note Number: BAB-592

Keyword(s)

Steel Industry
Cost of Quality
Operations Management
Cost Accounting
Production Planning
Medical Equipment
Teams

Abstract

KomTek (A) and (B) describe the transformation of a forging and casting company from one in which management style and labor relations reflected the traditional arrangements of the post-World War II steel industry to one in which labor and management partner in the service of a total quality strategy. The (A) case outlines the state of the company in the late 1980’s. KomTek, with revenues of approximately $30 million is a privately held forging and casting company that specializes in high technology custom products for the aerospace, nuclear, pipeline and medical industries.

The (B) case describes how the company’s leadership slowly developed a more trusting relationship with bargaining unit leadership, resulting in a shared effort to solve the problems the company faced.

KomTek (A) and (B) are currently used in an integrated operations management / managerial accounting / organizational behavior undergraduate class for second term sophomores in which students learn about the link between organizational systems and organizational strategy. These cases may also be used in an integrated organizational behavior / operations management at the first year MBA level.

James Hunt, Elaine Landry, Jay Rao

Teaching Note Number: BAB-592

Keyword(s)

Steel Industry
Total Quality
Medical Equipment
Organizational Systems
Motivation and Performance
Culture
Job Redesign

Abstract

KomTek (A) and (B) describe the transformation of a forging and casting company from one in which management style and labor relations reflected the traditional arrangements of the post-World War II steel industry to one in which labor and management partner in the service of a total quality strategy. The (A) case outlines the state of the company in the late 1980’s. KomTek, with revenues of approximately $30 million is a privately held forging and casting company that specializes in high technology custom products for the aerospace, nuclear, pipeline and medical industries.

The (B) case describes how the company’s leadership slowly developed a more trusting relationship with bargaining unit leadership, resulting in a shared effort to solve the problems the company faced.

KomTek (A) and (B) are currently used in an integrated operations management / managerial accounting / organizational behavior undergraduate class for second term sophomores in which students learn about the link between organizational systems and organizational strategy. These cases may also be used in an integrated organizational behavior / operations management at the first year MBA level.

James Hunt, Elaine Landry, Jay Rao

Teaching Note Number: BAB-592

Keyword(s)

Steel Industry
Total Quality
Medical Equipment
Organizational Systems
Motivation and Performance
Culture
Job Redesign

Abstract

This case is designed to be used early in the basic new ventures course. A video of Andrew Zenoff answering questions from a class of students is available.
In the basic new ventures course, this case can be positioned immediately before the Neverfail and Jon Hirschtick’s New Venture cases, in which the founders have very successful careers at the time they start their new ventures in the same industry where they have built their careers. They will provide an interesting contrast with Andrew Zenoff, who has had a variety of jobs, none of them amounting to much, before embarking on an entrepreneurial career. Despite his lack of relevant industry experience, Andrew was remarkably good at persuading family, friends, and angels to put money into his venture, but he was not successful at raising funds from professional venture capital firms. Hence, the case is a good link to the Neverfail and Jon Hirschtick’s New Venture cases, where the entrepreneurs were successful in raising venture capital.

Andrea Alyse, William Bygrave

Teaching Note Number: BAB-590

Keyword(s)

New ventures
Entrepreneurship
Venture funding
Venture capital
New product development

Abstract

“The Brady Training Program” chronicles the events that prompt the recruits of one computer company’s training program to aid one another on assignments and projects despite rules explicitly prohibiting such behavior. This case emphasizes personal values and the choices that are accordingly made in different circumstances. It also raises questions about the responsibility of companies to design organizations that will induce ethical behavior. From the point of improving the effectiveness of organizational systems, the case allows students to explore why an emergent system deviates in so many instances from behavior expected by the required system.

The case focuses on Bill Flynn, a 23-year-old newcomer to the Brady Company Information Systems Department. After having worked for one year in sales for a different computer manufacturer, Flynn joined the Brady Company to develop his understanding of hardware and programming. Upon learning that the Brady training program is intensely rigorous and competitive - usually less than one third of the recruits complete it - Flynn and other recruits begin to help one another, though they were forbidden at the outset from doing so. Flynn forms a study group with two classmates; catches two recruits photocopying former students’ completed assignments and takes a copy to share with his own group; and reads the supervisors’ secret files evaluating recruits’ progress. After seeing comments in his own file that question his commitment to become part of the Information Systems Department, Flynn cultivates disingenuous friendships with his supervisors. When he survives the twelve-month training program, Flynn is offered a formal position in the company; however, he already has secured two other job offers from competing companies. Upon hearing this news, the Brady management immediately makes a superior offer and encourages him to join the firm.

Allan Cohen

Teaching Note Number: BAB-587

Keyword(s)

Organizational Behavior
Organizational Design
Ethical Behavior
Group Dynamics
Culture

Abstract

Smokestack Village was a tourist attraction located near the Continental Divide in central Colorado. It offered visitors a large railroad museum and daily excursion rides on old railroad lines.

Smokestack Village is a case about a small work group, which allows students to look at the characteristics of a social system. The evolution of the emergent system and its consequences for productivity, satisfaction, personal growth, learning, and development can easily be traced. The case also provides an opportunity to look at leadership in different ways, using concepts related to contingency, functions, style, influence, and power.

Allan Cohen

Teaching Note Number: BAB-585

Keyword(s)

Work Groups
Leadership
Organizational Behavior
Influence and Power
Social Systems
Tourism

Abstract

This is a four-part sequential prediction case dealing with intergroup conflict that can be used to improve students’ observational, analytical, and predictive skills. The case provides opportunities to explore the sources of intergroup conflict, causes of escalation, and ways of diffusing and resolving it.

Allan Cohen

Teaching Note Number: BAB-584

Keyword(s)

Intergroup Conflict
Ethics
Conflict Resolution
Organizational Behavior
Group Dynamics

Abstract

The protagonist of this case is Paula, the captain of her school’s basketball team. The case chronicles the arrival of a new coach, Shirley, and the interpersonal conflict and impasse that emerges as the game plan and coaching style changes. The case is intended to provide students with the opportunity to understand different people’s perspectives, their reactions in response, and a way out of the impasse.

Allan Cohen

Teaching Note Number: BAB-583

Keyword(s)

Organizational Behavior
Team Dynamics
Interpersonal Conflict
Conflict Resolution

Abstract

This case is primarily concerned with ethics, the individual, his/her personal system and the way it affects his/her perceptions and actions. Secondarily, it is organizational, related to rewards and punishments and how these influence behavior.

Kim Johnson, Supervised by Professor Allan Cohen

Teaching Note Number: BAB-581

Keyword(s)

Ethics
Reward systems
Human resource management
Value systems
Personnel policies

Abstract

The protagonist of the case, a department manager at Consumer Material Enterprises, Inc., wanted to make a start on improving employee satisfaction in his department and thought he should start with his own immediate subordinates. Satisfied that earlier production problems were under control, he wanted to create the atmosphere of “one big happy family.” But suddenly after the visit from a summer intern, he had found that there was more tension among his staff than he had realized, and he was wondering how to proceed.

This case can be used for intergroup and change discussions. It provides students with a good opportunity to see how individual behavior is affected by situational factors. Much of the case is devoted to data that reflects differences in perceptions, attitudes, and assumptions between supervisors who are new and college graduates, and old-timers who are high school graduates.

The design for the case provides students with the opportunity to see how structure shapes perceptions, attitudes, assumptions, and consequently behavior.

Allan Cohen

Teaching Note Number: BAB-580

Keyword(s)

Human resource management
Employee satisfaction
Change management
Reward systems
Organizational structure
Culture

Abstract

This is a leadership, small group and change case that can put students in a situation as a manager of a department that operates potentially very dangerous equipment that is used to manufacture and alter highly dangerous gases.

Allan Cohen

Teaching Note Number: BAB-579

Keyword(s)

Leadership
Small Groups
Change Management
Reward Systems
Human Resource Management
Organizational Structure
Safety Enforcement

Abstract

This case could be positioned early in a new venture course. It is a good transition case from very early startups where the focus is almost entirely on the opportunity and the entrepreneur to one that also focuses on resources and operations.
John Esler, founder and CEO of Patio Rooms of America, founded this new venture a few months after graduating from Babson’s One-Year MBA program. Before studying for his MBA John had substantial entrepreneurial experience that included founding and building a “chain” of Subway Sandwich stores. He sold his chain of stores before entering the MBA program and used the proceeds to finance his studies and to underwrite the startup of his new venture. Six months into the new venture, John is experiencing a host of problems. The company’s sales orders are outstripping the rate at which crews can construct patio rooms. His operating cash flow deficit is growing bigger. He has serious disagreements to resolve with his licensor, who is also his exclusive supplier of material. And he has control and human resource issues that urgently need attention.

William Bygrave

Teaching Note Number: BAB-572

Keyword(s)

Entrepreneurship, career choice, licensing, marketing, financing, and hiring; entrepreneurial experience, board of advisors.

Abstract

Beautiful Legs BY POST describes the startup of a mail order business selling women's tights in Britain. The principals are Elizabeth Preis and Dickon Addis, who created a business plan while they were MBA students at INSEAD in France; upon graduation they started the business. Elizabeth Preis is an American who had lived in Europe as a student, but had never lived in Britain until she started the company. The bulk of the case is the business plan, which was written to raise money. The teaching note, written by William Bygrave, includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into a course.

William Bygrave

Teaching Note Number: BAB-571

Keyword(s)

Finding an opportunity ; Developing an opportunity ; Business plan ; Raising money ; Mail order ; Women's tights ; Marketing ; Starting a business in Britain ; Careers ; Pre-start-up and start-up

Abstract

This case deals 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 case deals primarily with building contacts and gathering resources. Other topics covered are career choice, building a team, venture capital, and board of advisors.

William Bygrave, Carl Hedberg

Teaching Note Number: Forthcoming

Abstract

The SolidWorks case is a sequel to the Jon Hirschtick case (BAB 061). It describes the second round of financing. The principal issues in the case are valuing a software business that has not yet shipped product, raising money from “strategic” partners and venture capitalists, and deciding how much money to raise.
SolidWorks raised $3.8 million of first–round venture capital and has made excellent progress with that money. It has developed a product that is getting rave reviews. It has established channels of distribution and begun shipping product. It estimates that it needs $4.5 million in the second–round of financing to take it to profitability. The decision that Jon Hirschtick and his team have to make is whether to take $4.5 million or perhaps as much as $10 million in this round of financing.

Dan D'Heilly, William Bygrave

Teaching Note Number: BAB568

Abstract

This case is intended for use in graduate and executive courses in strategy, industry analysis, and mergers & acquisitions.

Three consumer software firms merged in 1994 to become Softkey International. Seeking to grow an already strong market position by leveraging its considerable distribution muscle, it embarked upon an acquisition spree. After acquiring several smaller companies during the first two years, in 1996 it successfully consummated a hostile take-over of The Learning Company. Softkey adopted the name of its prey to capitalize on its more familiar brand name. Within two years, The “New” Learning Company had become one of the leading players in the budget, personal productivity, reference and education segments of the consumer software market.

While the company was integrating its acquisitions, however, the industry continued to evolve. The Learning Company’s management team was becoming increasingly concerned as its overall market share slid from 17% to 10%. They thought that more acquisitions would be necessary to stay on top of multimedia software field. It was, however, strapped with massive debt. The next several years would indeed be very challenging.

James Henderson

Teaching Note Number: Forthcoming

Keyword(s)

Multimedia software
Mergers & acquisitions
Strategy
Industry analysis
Education
Capital structure

Abstract

This case may be used as a stand alone or as a follow on to Chrysler: Rebirth of an Automaker. This case is best suited for studies in Strategic Management, Corporate Entrepreneurship, Global Management, Leadership, and Change Management or Organizational Behavior. The case centers on the historic merger of Daimler-Benz AG and Chrysler Corporation and the subsequent quest for integration. There are several subtexts to this central issue: the comparison and contrasting of the operating cultures and business processes of the two companies, their histories, their position within the auto manufacturing industry, their corporate values and image. These provide a context for students to explore as they attempt to envision and develop a strategy for integration. The case introduces the dynamics of integrating the leadership of two companies. The roles of the senior managers in the merger, its execution and the subsequent integration attempts can be explored in “what if” scenarios.

A four page follow up case, “DaimlerChrysler (B), number BAB 042, is available that chronicles the immediately subsequent events to the primary case.

Dianne C. St. Jean, Allan R. Cohen

Teaching Note Number: BAB-541

Keyword(s)

Strategic Management
Corporate Entrepreneurship
Global Management
Leadership
Influence
Change Management
Organizational Behavior
Automotive Industry
Mergers and Acquisitions

Abstract

The case examines the strategy of Williams-Sonoma, an up-market catalog and mall retailer, in entering electronic commerce. Ample information is provided to understand the highly successful strategy the firm’s management had employed to achieve extraordinary growth and profitability. Students can investigate the design and successful upgrading of multiple retailing concepts, the use of two traditional retailing channels (mail order and mall outlets), and management’s skillful use of database marketing concepts. With this background, the case affords the opportunity to perform a relatively rigorous strategic analysis of the firm’s profitability, growth, and sustainability. It details management’s early moves into the online competitive environment.

The potential uses of this case study are in a strategy course, in a retailing course, early in a course on strategy in electronic business, or within an advanced strategic marketing management course. Learning opportunities available in studying this case include:
• the requirements of a strong strategy for a retail concept;
• the benefits of a corporate structure using multiple concepts thereby spreading risk while maximizing return on core competencies;
• the use of technical marketing tools and specialist firms in building performance;
• the strategic analysis of the profitability and growth of a business
• the strategic analysis of the sustainability of a business
• an introduction to issues of electronic business, especially in the retailing sector and from the point of view of being in “bricks and mortar” and seeking business from “clicks and mortar.”

Perhaps the highest value of the case is in the integrated addressing of all these various topics. After a class discussion, that could easily extend into a double class, students should have a rich appreciation for advanced issues in contemporary strategy, retailing, and marketing.

Additionally, the case is very suitable for use as a written case analysis. The case presents much rich and quantitative data and a relatively full description of context. The materials should challenge students at any level with the advantage of an industry to which most students relate naturally.

Susan Ellis, William Lawler, Ken Matsuno

Teaching Note Number: BAB-537

Keyword(s)

Strategic analysis
Retailing
E-business
Risk management
Marketing
Distribution
Electronic business
Multi-channel

Abstract

This case describes the operations of a limited-menu restaurant. It is used to illustrate the following topics: restaurant as an operating system; cost structure in a limited-menu restaurant; areas of competitive advantage; basic process analysis in a service situation and the development of a formula for a multi-site concept.

The case was primarily written for a mid-term exam in an undergraduate core introductory Operations Management course. However, it can also be used for introducing the concept of “Production-Line Approach to Service” in a Services Management course.

Jay Rao

Teaching Note Number: BAB-535

Keyword(s)

Restaurant Management
Process Design
Service Management
Operations

Abstract

The West Coast University Student Health Services - Primary Care Clinic case integrates issues in service operations, organization behavior and applications of management science models such as simulation and queuing theory. A complete analysis of the case includes understanding process flows, computing utilization levels and using models of the stochastic arrival rate and service rates of the existing and proposed systems. In addition, the student has to deal with the managerial issues that are involved in running an ambulatory care center. This case can be used in any of the following stand-alone courses: Quantitative Methods / Decision Sciences, Operations Management, Service Operations and Human Resources / Organizational Behavior. Since this case was developed and used in a combined quantitative methods, operations, and organizational behavior cluster class at Babson College, the teaching note will address all these issues.

The Primary Care Clinic is the only walk-in clinic on campus and presently works under a “triage” system. The Student Health Services (along with PCC) is scheduled to move to a new facility and this move is seen by the director of the PCC as a good opportunity to review and improve on the present service delivery process and system. Three broad objectives have been identified for the new system: reduce the waiting time for seeing a healthcare provider, transform the perception of the clinic as an impersonal bureaucracy, and improve the student perceptions (especially non-users) about the performance and effectiveness of the PCC. In order to achieve these objectives, a new system of teams of clinicians (doctors and nurse practitioners) has been proposed.

David Wylie, Ashok Rao, Jay Rao, Ivor Morgan

Teaching Note Number: BAB-534

Keyword(s)

Health Services
Service management
Organizational behavior
Simulation and queuing theory
Operations management
Human resource management

Abstract

The Grupo ASSA case series is targeted towards executive and graduate level courses in international mergers & acquisitions, negotiations, particularly when the instructor would like to take a closer look at the complex interpersonal relationships and conflicts that emerge during the process. The case is very rich and lends itself well to multi-session coverage and group study.

The case chronicles the acquisition of a South American ERP software solutions company by an aggressive private equity firm, offering discussion decision points at crucial stages over the entire process from negotiation to due diligence to closure.

Sue Mundell, Anne Donnellon, Jeffry A. Timmons

Teaching Note Number: Forthcoming

Keyword(s)

Latin America
Argentina
Venture capital
Mergers and Acquistions
Negotiations
Asset Management
Enterprise Resource Planning

Abstract

The Grupo ASSA case series is targeted towards executive and graduate level courses in international mergers & acquisitions, negotiations, particularly when the instructor would like to take a closer look at the complex interpersonal relationships and conflicts that emerge during the process. The case is very rich and lends itself well to multi-session coverage and group study.

The case chronicles the acquisition of a South American ERP software solutions company by an aggressive private equity firm, offering discussion decision points at crucial stages over the entire process from negotiation to due diligence to closure.

Sue Mundell, Anne Donnellon, Jeffry A. Timmons

Teaching Note Number: Forthcoming

Keyword(s)

Latin America
Argentina
Venture capital
Mergers and Acquistions
Negotiations
Asset Management
Enterprise Resource Planning

Abstract

The Grupo ASSA case series is targeted towards executive and graduate level courses in international mergers & acquisitions, negotiations, particularly when the instructor would like to take a closer look at the complex interpersonal relationships and conflicts that emerge during the process. The case is very rich and lends itself well to multi-session coverage and group study.

The case chronicles the acquisition of a South American ERP software solutions company by an aggressive private equity firm, offering discussion decision points at crucial stages over the entire process from negotiation to due diligence to closure.

Sue Mundell, Anne Donnellon, Jeffry A. Timmons

Teaching Note Number: Forthcoming

Keyword(s)

Latin America
Argentina
Venture capital
Mergers and Acquistions
Negotiations
Asset Management
Enterprise Resource Planning

Abstract

The Grupo ASSA case series is targeted towards executive and graduate level courses in international mergers & acquisitions, negotiations, particularly when the instructor would like to take a closer look at the complex interpersonal relationships and conflicts that emerge during the process. The case is very rich and lends itself well to multi-session coverage and group study.

The case chronicles the acquisition of a South American ERP software solutions company by an aggressive private equity firm, offering discussion decision points at crucial stages over the entire process from negotiation to due diligence to closure.

Sue Mundell, Anne Donnellon, Jeffry A. Timmons

Teaching Note Number: Forthcoming

Keyword(s)

Latin America
Argentina
Venture capital
Mergers and Acquistions
Negotiations
Asset Management
Enterprise Resource Planning

Abstract

This case is appropriate for use in undergraduate, graduate, and executive programs in human resource management, team dynamics and design, and implementation of quality programs. The case chronicles the launch of a TQM program in Gillette Argentina. The case protagonist credited the initiative with a 40% benefit in business while recognizing that its success was heavily dependant upon the effects of teamwork and customer focus. Now he was faced with how to increase market share elsewhere on the continent and to preserve it in Argentina. His only real question now was how to expand the same TQM programs elsewhere.

Anne Donnellon, Susan Engelkemeyer

Teaching Note Number: Forthcoming

Keyword(s)

Argentina
Latin America
TQM
Team Building
Team Management
Quality Control
Quality Action Teams
Human Resource Management

Abstract

An 18-month-old biotech software development company seeks seed money to develop DNA sequencing software. The entrepreneur is a scientist/software engineer who is convinced that the Human Genome Project, which started in 1990 as a $3 billion effort coordinated by the U.S. Department of Energy and the National Institute of Health to identify and categorize the tens of thousands of human genes, will result in a major demand for his product. His company, however, has great difficulty convincing potential investors of the company's potential due in part to the technical detail of his work as well as his sometimes overly aggressive personality.

Finally, Peter has a promising meeting with an early stage venture capital company, headed by a person familiar with not only the highly specialized science of the Genome Project but also the enormous financial possibilities. After the meeting and while the venture capital company considers an investment, Peter reflects on what is the proper valuation for the company considering the future possibilities.

William Bygrave

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

An online music retailer struggles to keep pace with rapidly changing Internet technology and competition. Competing with industry giants such as Amazon.com, MCI, and MP3, the young firm establishes its niche and is recognized by Forbes magazine as the "best in its class for hard-core collectors" of scarce or hard-to-find compact disks. Capitalizing on these serious CD buyers, the company successfully becomes membership-based in order to differentiate itself from the major retailers.

Suddenly, the company is confronted with a new challenge. Online digital music technology that allows users to download virtually any CD---free, threatens all online retail music companies as well as the entire music recording industry. EveryCD reacts with an "if you can't beat 'em, join 'em" attitude, leading them to reinvent the company using digital technology and to seek venture capital money to fund their new plans.

William Bygrave

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Chrysler was Forbes magazine's "Company of the Year" in 1997. Eighteen years earlier, however, a loan guarantee by the Federal government was necessary to prevent the nation's third largest automaker from succumbing to bankruptcy. President Lee Iacocca turned the company around by thinning the ranks of top management, closing plants, persuading labor unions to accept layoffs and by introducing the highly successful K-cars. Chrysler repaid off its loans in 1983-- seven years ahead of schedule.

Chrysler experienced another major downturn in the late 1980's and early 1990's. This time Iacocca himself was placed on the retirement rolls and replaced by the spectacular management team of CEO Bob Eaton and President Bob Lutz. Both executives were known as "car guys" by industry aficionados, and they proved to be worthy of the moniker as they changed the corporate culture, teamed with suppliers, and dramatically reduced the design to production cycle.

John W. Altman, Dianne St. Jean

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

x

John Altman

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

A family owned and operated manufacturing firm is faced with the issue of succession as the father/owner decides to retire after twenty years at the helm. The food manufacturer saw its best days during World War Two when it provided packaged meals to the U.S. Army. Since then, the company's management, machinery and products have grown older together, with the expected results�declining revenues and profits.

The retiring owner's son, Joe, an entrepreneur, and daughter-in-law, Bev, are faced with the choice of selling the company or attempting to reinvent it and catch up with the marketplace. The company possesses a well-respected brand name that could have significant value. Thorough reviews of both options are discussed in the case along with accompanying financials. Also, the sometimes-strained relationships between family members involved with a business are discussed at length.

Leonard Green, Edward Barrows, Jennifer Clark, Patrick Dunn

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

x

Stephen Spinelli

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

The owner and founder of an established licensing agency, Jerry Houle, who was also a former Muppet, has always been a huge fan of the Monty Python group. The famous British troupe of five anti-establishment actors was on TV and in movie theatres on both sides of the Atlantic from 1969 through 1983. In 1999, Houle signs a licensing agreement with the group's representative after four years of negotiations.

The licensing agency actively seeks partners or licensees to design, produce and retail Monty Python merchandise such as tee shirts, key chains and coffee cups. However, there is reluctance by most major merchandisers to buy heavily into the program, which surprises the entrepreneur who is convinced of the marketability of the Python name. As his company spends more and more time on this product with few results, the value of the license comes into question.

Stephen Spinelli, Aldo Sesia

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

A young software company about to be harvested nearly comes to a tragic end when a truck accident kills a key employee and severely injures one of the owners. When he learns of the accident, the corporate suitor backs out of the pending acquisition since the company's major assets--brains-- are now damaged goods.

The company had successfully navigated through the tough start-up period and was about to experience major growth that attracted several interested buyers. The company specialized in relational database management systems and had several major customers in the Boston area. Eventually, the owner recovers and shores up the company enough to attract other buyers, one of which does buy-out the company. The owner stays on after the acquisition and a clash of corporate cultures creates a new set of issues.

Ed Marram, Sheryl and Larry Overlan

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

The founder of Cover-It, a business that sells advertising space on free book covers for high schools, is faced with the fundamental question of whether to sell his company when his main competitor threatens to either squash him or buy him, just as the company projects a major improvement in sales and profits.

The case provides a captivating discussion on the lifestyle, personality, and business techniques of a young entrepreneur who perseveres in his quest to create his own successful business. The company faces more downs than ups during its early days. This case contains multiple examples of creative resource marshaling, some of which raise interesting ethical questions. The owner experiences continuous rejections from major corporations he is trying to sell to, poor health, and near poverty, before the tide turns and the biggest business decision of his young life is on the table.

Stephen Spinelli, Edward Barrows, Sandie Stringfellow

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Alfred J. Nanni

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Alfred J. Nanni

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

John Shank

Teaching Note Number: Forthcoming

Keyword(s)

x

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Forthcoming

John Shank

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Keyword(s)

x

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Forthcoming

John Shank

Teaching Note Number: Forthcoming

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x

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Forthcoming

John Shank

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

John Shank

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x

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Forthcoming

John Shank

Teaching Note Number: Forthcoming

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x

Abstract

Forthcoming

"Gwin, Carl" Lidija Polutnik

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

"Gwin, Carl"

Teaching Note Number: Forthcoming

Keyword(s)

x

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Forthcoming

Kostas

Teaching Note Number: Forthcoming

Keyword(s)

x

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Forthcoming

Lidija Polutnik Carol J. McNair

Teaching Note Number: Forthcoming

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x

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Forthcoming

Julian E. Lange Sam Perkins

Teaching Note Number: Forthcoming

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x

Abstract

Forthcoming

Julian E. Lange Sam Perkins

Teaching Note Number: Forthcoming

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x

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Forthcoming

Jennifer Bethel Winton

Teaching Note Number: Forthcoming

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x

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Forthcoming

Craig Stephenson

Teaching Note Number: Forthcoming

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x

Abstract

Forthcoming

John C. Edmunds Brenhouse

Teaching Note Number: Forthcoming

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x

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Forthcoming

Craig Stephenson

Teaching Note Number: Forthcoming

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x

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Forthcoming

Erik R. Sirri

Teaching Note Number: Forthcoming

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x

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Forthcoming

Patricia J. Guinan

Teaching Note Number: Forthcoming

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x

Abstract

Forthcoming

Elaine M. Landry

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Patricia J. Guinan "Danna Greenberg, Treiser"

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Ross Petty

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Stephen A. Allen

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Ashok Rao

Teaching Note Number: Forthcoming

Keyword(s)

x

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Forthcoming

Jay Rao

Teaching Note Number: Forthcoming

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x

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Forthcoming

Jay Rao Kathleen McKone-Sweet

Teaching Note Number: Forthcoming

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x

Abstract

Forthcoming

Teaching Note Number: Forthcoming

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x

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Forthcoming

Faculty

Teaching Note Number: Forthcoming

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x

Abstract

Forthcoming

James E. Henderson

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

David Wylie

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

James Hunt Ringler

Teaching Note Number: Forthcoming

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x

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Forthcoming

James Hunt

Teaching Note Number: Forthcoming

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x

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Forthcoming

James Hunt

Teaching Note Number: Forthcoming

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x

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Forthcoming

James E. Henderson Benoit Leleux

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

James E. Henderson

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Srinivasa U. Rangan

Teaching Note Number: Forthcoming

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x

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Forthcoming

Srinivasa U. Rangan

Teaching Note Number: Forthcoming

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x

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Forthcoming

Jeff Ellis

Teaching Note Number: Forthcoming

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x

Abstract

When is a dollar not necessarily a dollar? The answer is: when friends and families are involved.

This is a story of two families that started out as friends and wound up in court after disagreeing over a business deal from which both stood to gain. There may be many morals to the story, but the problem for students is to understand the dynamics of the settlement. Most disputes can eventually be resolved by courts, attorneys and time. But the resolutions may spawn a second set of problems. These, too, must be fully weighed and resolved.

The challenge is to decide when it is time to put an end to an episode, to close the books both financially and emotionally. Settlements are designed to provide benefits for both sides in a dispute. But the choices they present may not always be a clear call. For family businesses, the decisions are not always easy, and there can be more than one way to measure true cost.

Michael Lelyveld, Richard Mandel, John Saber, Mark Potter, Chris Hennessey

Teaching Note Number: Forthcoming

Keyword(s)

Family Business
Legal disputes
Negotiation
Subscriber analysis
Publishing

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, 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

In the first eighteen months after Mondino and Zocco had sold their credit rating firm to S&P, business had soared. The young entrepreneurs had not only received a decent sum for their company, they had also been given considerable support to grow their business and their own talents. All of the analysts, including the two managing directors, were participating regularly in S&P’s highly regarded educational programs. Furthermore, their experience in rating committees with analysts from around the world was broadening them immeasurably. On balance, the acquisition had worked out well.

However, the economic situation of the last three months was taking its toll. The workload had increased as more companies faced difficulty and needed to be reassessed. The very unpleasant work of downgrading a company inevitably increased in times like these as well. Furthermore, the major market for ratings, the industrial sector, was maturing. To continue to grow the business would now require extensive education of prospective clients in new markets like insurance and managed funds.

As Mondino and Zocco discussed their own expectations for the coming year, they wondered if this might not be the time to exit the company they had built.

Anne Donnellon

Teaching Note Number: Forthcoming

Keyword(s)

Argentina
Credit Ratings Industry
Women
Entrepreneurship
Latin America
Risk Analysis

Abstract

Providing an environment conducive for the generation of new ideas, the Eureka! Ranch, a corporate resort, enjoys fabulous success with numerous Fortune 500 clients. The hyper-creative founder inspires corporate executives to rapidly conceive of new products and methods for their companies by designing customized three-day programs to stimulate creativity. To assist in the process, "Trained Brains," or new idea catalysts are assigned to the groups when they arrive at the ranch.

The originator's success, however, leads him to question which path his career should travel down next. Should he make the ranch bigger and better and maximize his profits? Should he write books about the creativity process? Or should he reorganize his company and concentrate on the less demanding but potentially more lucrative area of corporate training?

John Altman, Andrea Alyse

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Her friends called her a "serial entrepreneur." After selling one company to Microsoft for $5 million, the M.I.T. PhD in biomechanics started another business making and selling reflective pet collars, reflective pet leashes and reflective clothing for humans. The idea for this product -- to increase the safety of pets and humans -- occurred when Beth and her dog were nearly run over by a car on a dark road. However, 16-hour days and increasing financial pressures force the entrepreneur to reexamine her situation.

Glow Dog's sales are slow initially as the company has difficulty raising buyer awareness of the company's products. Catalogs, word-of-mouth, and a web site are the major marketing devices used to stimulate sales. Beth now considers segmenting her business and raising more money in order to resume a normal life as she promised herself after the earlier sale to Microsoft.

William Bygrave, Andrea Alyse

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

An interactive television (I-TV) company, in the early-stage growth period, is continuously searching for large amounts of additional financing to support their research and development efforts. The company plans to deliver movies on demand to consumers as well as enhanced shopping capabilities and high-quality educational programs. While few doubt the technical capabilities of the company, there are unanswered questions regarding market demand.

As the company enters its fourth year, expenses for R&D and marketing increase dramatically, revenues are barely visible and mounting losses are causing increased concern and demand for new funds. The company has already given up over fifty percent of its equity to investors, when one of the industry giants enters the picture with a financing offer that the President is apprehensive about and she asks for her senior staff's assessment.

Stephen Spinelli, Julian Lange, Jason Cannon, Brett Gordon

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Xerox Corporation, founded as a copier company in 1958, decides in the late 1980�s to take advantage of the products and technologies developed internally but not directly related to the company�s core product line. Creating a wholly owned venture capital (VC) organization, Xerox begins investing in internally generated ideas with plans to eventually spinout these companies as IPO�s.

The chief managers at the VC company do well for the first two years with a portfolio of ten companies that are mostly software developers. They create an entrepreneurial environment in the new companies by offering employees highly leveraged equity plans with the payoff coming at IPO. However, they begin to have doubts about their ability to keep the venture capital company profitable. They wonder weather there are better models available to improve the performance of these wholly owned entities.

John W. Altman, Andrea Alyse

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

A college admissions advisory service, started by two Babson College graduates, wrestles with critical marketing decisions on how to boost their company's name/brand recognition. The two young entrepreneurs sell advice and counseling services to parents, high schools and to corporations who offer the services of College Coach as a benefit to their employees. The company provides services such as: determining the appropriate mix of target colleges, advice on how to maximize financial aid, practice interviews etc.

The company has grown recently and a decision must be made whether to acquire more building space or pump money into advertising and promotion. Also, the company must decide if it should continue to pursue all three market segments-- parents, high schools, and corporations. The two-year-old company's early success has been noticed by college test prep centers such as Kaplan and Princeton Review. A buyout is possible, which makes the marketing decision all the more important since tens of millions of dollars may be at stake.

William Bygrave, Carl Hedberg

Teaching Note Number: Forthcoming

Keyword(s)

x

Abstract

Forthcoming

Lawrence Carr

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Forthcoming

William Lawler "David Wylie, Adrian Alleyne "

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x

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Forthcoming

Lawrence Carr

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Forthcoming

Lawrence Carr

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Forthcoming

William Lawler

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Forthcoming

William Lawler

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Forthcoming

John Shank

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x

Abstract

Forthcoming

John Shank

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Abstract

Forthcoming

John Shank

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Forthcoming

"B. Neal Harris, III "

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Forthcoming

Steven Feinstein NatAbdul Alie T. Taylor

Teaching Note Number: Forthcoming

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Kathleen Hevert

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Donna Stoddard Osborn

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Donna Stoddard Susan Susan Engelkemeyer

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Ross Petty Robert J. Kopp

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Ross Petty

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Ross Petty

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Stephen A. Allen

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Farshad Rafii

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Nan S. Langowitz

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Robert J. Kopp

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H. David Hennessey

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H. David Hennessey

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Anirudh Dhebar

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Anirudh Dhebar

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Anirudh Dhebar

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Susan Engelkemeyer

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Jay Rao Jon Hodge

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Jay Rao, Reitz

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Anne Donnellon

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Anne Donnellon

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Patricia J. Guinan

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Anne Donnellon

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Ismael G. Dambolena

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David Wylie Morton

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Jeff Ellis

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James E. Henderson

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James E. Henderson

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James E. Henderson

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Fahey

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Jeff Ellis

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ClearVue Products is a wonderful David versus Goliath story in the consumer products industry. It deals with a tiny company in the run-down New England textile city Lawrence, Massachusetts competing successfully with giant companies such as Proctor and Gamble. ClearVue's principal product is a glass cleaner that Lawrence Plate Glass had been manufacturing primarily for its own internal use for 40 years. When Brooks O'Kane, the son-in-law of the president of Lawrence Plate Glass joined the firm in 1989, annual revenue for external sales of ClearVue was $62,000; in 1995 it was $4 million.

The decision point in the case is when Red Cross Nurse (RCN) disinfectant, which has been around for more than 125 years, has been offered to Brooks. Annual revenue is about $200,000 and declining. The owner of RCN wants to retire and has offered to sell the product and trademark to Brooks. To decide whether or not to buy RCN, students have to understand the strategies and tactics that Brooks employed to make ClearVue so successful.

This case gives students an opportunity to examine a virtual corporation focused on what it does best, marketing and selling; it subcontracts everything else. It can be positioned late in a New Ventures Course, in a Growing Business Course, or in a Marketing course.

This case is best used in courses that focus on opportunity, creativity, gaining access to large chain retail stores, guerrilla marketing, promotion, packaging, newsletters, virtual corporations, foodbrokers, supermarkets, discount department stores, automobile parts stores, family business, and methods of growing a business.

William Bygrave, Carol Gurante, Dan D'Heilly, Andrea Alyse

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Fjord Trading (A) is a case about a management buy-in (MBI). The founding entrepreneurs cornered the market on a species of fish caught in Norwegian waters, but their company quickly grew out of control. This case provides insight into team-building, working capital, and the nature of opportunity. When the case ends, the students are reading about the moment of decision: whether to sell half their company to older and wealthier partners.

This case is supported by supplemental material that can be handed out in class. In the (B) case, the new partners quickly grab control of the organization. Then as the conflict reaches a climax, new partners lock original partners out of the building and police are called to the scene.

In a powerful video tape recording, the entrepreneur talks candidly about many aspects of this experience. The case is best used in courses that focus on angel capital, valuation, growth management, family business,
international entrepreneurship, strategic partnerships, and MBI's.

William Bygrave, Sam Perkins

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A company providing software for corporate intranets to facilitate the collection and management of time and labor-related data must contend with customer demands for broader integrated suites of software products. By the mid 1990's the company had a 60-70% market share but as the software industry matures and customers become more sophisticated in choosing their software products, Kronos, which has been providing a superior product, must now consider partnering rather than continuing their go-it alone strategy.

The founder struggles with this changing landscape initially by revamping the company's upper management producing limited success. Options considered besides the status quo include: expansion, OEM sales to large vendors of software to include in their suites or strategic alliances with selected vendors. Eventually, the company establishes alliances with four vendors with great success.

Ed Marram, Sam Perkins

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The entrepreneurial founder of a credit and collections service for the seafood industry decides to start an on-line sales and information service for the seafood industry. Intrigued by the potential of this Internet service for wholesale seafood buyers, Neal Workman invests in a web site that allows buyers to scan for the best seafood prices as well as check on the credit of companies in the industry.

After conducting a survey, holding focus group meetings, and assembling an advisory group, he is somewhat surprised at the reluctance and lack of interest expressed by many players. He learns that the new service may threaten existing methods of doing business and actually financially hurt some of the companies Neal is trying to sell the new system to, including brokers and traders. After preparing extensive financial and marketing documentation for potential investors in his new venture, he now faces the final decision of whether to expand his business into potentially turbulent waters.

William Bygrave, Paul Venturo, Dan D'Heilly

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With the fall of the Soviet Union in 1991, there appeared to be tremendous opportunities for American businesses. There were deals to be made on both the export and import side of business with the newly liberated former Soviet republics. Scott Berggren, a 32-year-old entrepreneur, after a series of unsuccessful international ventures, begins to import aluminum from Russia to sell to several major U.S. companies including General Motors. Lower labor costs etc. appear to provide Scott with a major opportunity to beat current market prices.

However, political and economic instability including currency fluctuations soon place the young owner in a perilous position. He must decide whether to invest more of his own money in the old Russian smelting companies, which were formerly state-run, or face eventual unsustainable losses due to the unpredictability of his suppliers.

William Bygrave, Andrea Alyse

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A young aggressive salesman attempts to change employers when he receives a summons in the mail notifying him that his previous employer is suing him for $100,000. His former company, a manufacturer's representative business, claims that Pearlman, who worked as an independent contractor, had committed a breach of fiduciary responsibility when he left to work for a customer. David would be selling his new company's goods directly into the marketplace instead of through the manufacturer's rep.

Since Pearlman has virtually no money, he is somewhat unconcerned about the suit except that an injunction, if it is granted, may prevent him from working for his new employer until the case is resolved. Fortunately, his new company supports him in the court proceedings, the injunction is denied, and he goes on to become an award-winning salesman.

William Bygrave, Grey Ehrlich

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Family members of a 50-year-old small Kentucky distillery of fine bourbon try to deal with an inter-generational struggle on how to grow the company. The founder of the company abhors modern marketing and advertising techniques, preferring word-of-mouth recommendations from satisfied customers. His son, knowing the effectiveness of advertising, tries to pull his father into the twentieth century with little success.

Unexpectedly, as the generations try to resolve their differences, the Wall Street Journal writes a front-page story about the virtues of the company's bourbon. Sales boom and the father takes a softer line and agrees to advertise in the Wall Street Journal and a few other high-income print publications. The company is eventually sold to a major distributor but keeps the family employed in the production process. The next issue the family confronts is how to preserve the quality of the product as increased sales result in a need for more production facilities.

Kathleen Seiders, Andrea Allyse

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A pharmacist looking for a career change enrolls in Babson's MBA program and begins planning his new business venture in the school's entrepreneurship "hatchery." When he was working in the health care field, Nahill noticed how the number of uninsured people was increasing, even when the unemployment rate went down. He also observed how the cost of providing health insurance benefits was increasing rapidly and causing companies to look for less expensive alternatives.

He establishes a company, Access Healthcare Network, that provides discount cards for prescriptions, as well as dental and vision needs. He contracts with major providers of these services, such as drug stores, to provide discounts to users of the card. His planned revenue source is companies and trade associations seeking low cost alternatives to full health and dental benefits. After some initial success, the company faces severe financial problems and Nahill must choose between bailing out or seeking investors to help the company grow.

William Bygrave, Carl Hedburg

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Six months after becoming the Boston area dealer for the manufacturer of BetterLiving Patio Rooms, the founder, John Esler, is anxious to expand his territorial rights. Convinced that his product is highly marketable and that he has the management aptitude to rapidly grow the business beyond the Boston area, John is frustrated by the manufacturer's rejection of his request to enlarge his territory.

Patio rooms are highly desired home additions, particularly in areas that are "bug infested" such as the Northeast. Demand for this product is increasing as aging baby-boomers spend more time at home and have the income to support home improvement projects. However, the manufacturer of these pre-constructed patio rooms has a hard earned reputation for producing quality products and is reluctant to jeopardize this reputation by expanding too quickly with dealers who are still new to the industry.

William Bygrave, Dan D'Heilly

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Sten-Tel is a family owned business that provides transcription services for lawyers, insurance and medical companies and various government agencies such as the police. The founder has developed new transcribing technology that dramatically reduces labor and overhead costs while increasing customer satisfaction. The automated transcribing system allows clients to dial into the Sten-Tel network whenever they need to record important conversations and to check on the status of the transcription via an automated telephone system or on the Internet.

The R & D money to create this new system was provided by angel financing. Later, the entrepreneur's father provides start-up financing for the company. Both investors are becoming anxious to recover their loans. Sten-Tel's owner decides that the best way to capitalize on his invention and to repay his debt is to franchise the new automated system across the country and eventually internationally. Marketing efforts begin and financial projections for the expected results are provided in the case.

Stephen Spinelli, Jason Cannon

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When hardware giant Home Depot opens up a new store, local hardware stores scramble to survive. In cases A and B, the troubles and reactions of two hardware cooperatives are recounted by their owners. Case C is an industry note for the retail hardware sector that provides background information and a discussion of the transition from "mom and pop" hardware stores of around 9,000 square feet to the 80,000 square feet "Big Boxes" started by Home Depot.

The owners face price competition that is so extreme in some cases that their competitor's retail prices are lower than the coop's wholesale prices. Options considered include: head-to-head competition, improving profit margins, moving to areas where there are no "Big Boxes," or redefining the target market. The hardware store's current promotion techniques, operations, financing methods and technology utilization are provided to give students a full picture of the industry.

Note: The "B" case is titled King Hardware.

Stephen Spinelli, Jason Cannon

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William Lawler David Wylie

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John Shank

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Alfred J. Nanni "Jay Rao , James Hunt "

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Lawrence Carr "Hill, M"

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William Coyle Jay Rao et al.

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Lawrence Carr

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James D. Parrino David Wylie

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Mark Potter

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James D. Parrino "Mark Potter, Wilson"

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James D. Parrino "Mark Potter, Wilson"

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"Jeff Ellis, D"

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"Jeff Ellis, D"

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Steven Feinstein NatAbdul Alie T. Taylor

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Steven Feinstein

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Patricia J. Guinan

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HBS Case Adaptation

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Bishop

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Taylor

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Taylor

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Paul Mulligan Jay Rao

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Nan S. Langowitz

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Neal Thornberry "Srinivasa U. Rangan, David Wylie"

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Isaacson

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Isaacson

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Kathleen Seiders

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Kenichi Matsuno

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Kenichi Matsuno

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Norean Radke Sharpe

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Ashok Rao Kenichi Matsuno

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