harvard business school publishing case map for wheelen/hunger: strategic management ... ·...

Harvard Business School Publishing Case Map forWheelen/Hunger: STRATEGIC MANAGEMENT AND BUSINESS POLICY, 8/e

(Prentice-Hall, 2002)

Note: Every case map provides only a partial list of relevant cases from HBS Publishing.To explore alternatives, or to get more information on the cases listed below, visit ourweb site at www.hbsp.harvard.edu and use the searching functions.

Case Title,authors

Institution,Length,HBSPProductNumber,Supplements,TeachingNote (TN)availability

Geographical andIndustry Setting,Company Size,Time Frame

Abstract

Chapter 1: Introduction to Strategic Management and Business PolicyThe Walt DisneyCo.: TheEntertainmentKingMichael G.Rukstad ; DavidJ. Collis ; TyrrellLevine

HBS27pProductNumber: 9-701-035Suppl.AvailableTN available

United StatesIndustry Setting:entertainmentGross Revenue:$25.4 billionrevenues Numberof Employees:110,000 CaseTime FrameStart: 1923 CaseTime Frame End:2000

The first ten pages of this case are comprised of thecompany's history, from 1923 to 2001. The Waltyears are described, as is the company's decline afterhis death and its resurgence under Michael Eisner.The last five pages are devoted to Eisner's strategicchallenges in 2001: managing synergy, managing thebrand, and managing creativity. Students are asked tothink about the keys to Disney's mid-1980sturnaround, about the proper boundaries of the firm,and about what Disney's strategy should be beyond2001.

Anheuser-Buschand the U.S.Brewing IndustryAnita McGahan

HBS23pProductNumber:9-799-026SupplementavailableTN available

United StatesIndustry Setting:brewing GrossRevenue: $11billion revenuesNumber ofEmployees:20,000 Case TimeFrame Start: 1991Case Time FrameEnd: 1991

Presents an analytical report on the company'scompetitive position and on the industry structure in1991. Used to show how a company can generatevalue through steady, incremental investment over along period in a business model tailored to theindustry context. Also illustrates the challenges ofmarket leadership. Teaching Purpose: Shows howenormous value may be created in a business thatgrows systematically rather than through riskyinvestment in a few large-scale projects.

Levi's "PersonalPair" Jeans (A)William Lawler ;John K. Shank ;Lawrence Carr

Babson6pProductNumber:BAB020B caseavailableTN available

United StatesIndustry Setting:clothing CaseTime FrameStart: 1998 CaseTime Frame End:1998

As Levi-Strauss implemented its custom-fitted jeansoffering, the traditional value chain for clothingmanufacturing and retailing was transformed. Thiscase allows students to explore the subtleties of thistransformation and the management implications.Teaching Purpose: To introduce students to value-chain analysis within the context of managementaccounting.

Wal-Mart Stores’Discount

HBSProduct

United StatesIndustry Setting:

Facilitates a discussion of the sources of Wal-Mart Stores' competitive advantage in discount

OperationsPankajGhemawat

Number:387-01812pSupplementavailableTN available

discount retailing,1976-1985

retailing, and the future sustainability of thatadvantage. Also profiles the company's majordiversification move in the early 1980s.

Chapter 2: Corporate Governance and Social ResponsibilityFogdogJohn W. GlynnJr.; ChristopherS. Flanagan

Stanford21pProductNumber:E100TN available

CaliforniaIndustry Setting:Internet sportinggoods retailingGross Revenue:$25 millionrevenues Numberof Employees: 150Case Time FrameStart: 1994 CaseTime Frame End:2000

Examines the growth and development of Fogdog,an online sporting goods retailer, from its foundingto its sale to Global Sports--one of its publicly tradedcompetitors. Built to capitalize on the Internet,Fogdog faced issues specific to the economic climateat the time, but also faced timeless issues that manyemerging companies experience, such as boardcomposition and development, communicationbetween a company and its board, and the respectivepositions and responsibilities of both managementand a company's investors when tough companydecisions have to be made. Ends with the "forced"sale of Fogdog by the company's board at a timewhen the near-term outlook for Internet-relatedcompanies was uncertain. Teaching Purpose:Focuses on the relationship between a company andits board of directors through different stages of thecorporate life cycle. Students consider many issues,including: Who is in control of the company at anygiven time? Who is represented on the company'sboard of directors? What is the best way forcommunication to take place between and among theboard and senior management members? What otheroutside responsibilities do directors and other seniormanagement team members have?

DigitasJay W. Lorsch ;Katharina Pick

HBS12pProductNumber:9-401-022

Boston, MAIndustry Setting:technology &marketing servicesGross Revenue:$187 millionrevenues Numberof Employees:1,600 Case TimeFrame Start: 1999Case Time FrameEnd: 1999

The CEO of Digitas, a Boston-based technology andmarketing services company, thinks about how arecent decision to go public will affect the company'sboard of directors. Three of the company's directorsrepresent the private equity firm Hollman &Friedman, which has a controlling stake in Digitasand will continue to hold a large stake after the IPO.Teaching Purpose: To discuss the dynamics of aprivate equity board and explore how an IPO wouldaffect such a board.

GE's Two-DecadeTransformation:Jack Welch'sLeadershipChristopher A.Bartlett ; MegWozny

HBS24pProductNumber:9-399-150VideoavailableTN available

United States,Global IndustrySetting: industrialconglomerateGross Revenue:$100 billionrevenues Numberof Employees:293,000 CaseTime Frame

GE is faced with CEO Jack Welch's impendingretirement and the question on many minds iswhether anyone can sustain the blistering pace ofchange and growth characteristic of the Welch era.After briefly describing GE's heritage and Welch'stransformation of the company's business portfolio ofthe 1980s, the case chronicles Welch's revitalizationinitiatives through the late 1980s and 1990s. Itfocuses on six of Welch's major change programs:The "Software" Initiatives, Globalization, Redefining

Start: 1981 CaseTime Frame End:1998

Leadership, Stretch Objectives, Service BusinessDevelopment, and Six Sigma Quality. TeachingPurpose: Can be used to develop multiple lessons,including corporate strategy development,transformational change, management andleadership, and corporate renewal.

Al Dunlap atSunbeamBrian Hall ;Rakesh KhuranaCarleen Madigan

HBS21pProductNumber:9-899-218TN available.

United StatesIndustry Setting:householdappliances GrossRevenue:$109,415,000revenues Numberof Employees:7,500 Case TimeFrame Start: 1996Case Time FrameEnd: 1998

Al Dunlap was one of the best-known corporateturnaround artists of the 1990s. In 1996, he was hiredat Sunbeam to effect a restructuring, but was firedalmost two years later when the company's financialperformance and stock price began to decline. Manyof the controversies that had surrounded him at hisprevious job, Scott Paper, also followed him toSunbeam: his rejection of the multiple stakeholderview of corporate governance, his aggressivemanagerial style, his shaky relations with the media,and his high level of pay. The case describesDunlap's compensation package at Sunbeam andaddresses the issue of how U.S. companiescompensate "superstar" CEO's. Teaching Purpose:To discuss the debate about multiple stakeholdersversus shareholder primacy; to analyze the incentivesand compensation packages of highly sought-afterCEOs, the amount and form of their pay packages(cash, bonus, options, etc.), and stock price as ameasure of performance.

FinastSupermarkets(A)Kirk O. Hanson ;JonathanEisenberg

BusinessEnterpriseTrust5pProductNumber:9-993-005B caseavailable.TN available.

Cleveland, OHIndustry Setting:supermarket

Describes the launch of a series of superstores ininner-city Cleveland. Presents issues of urban andinner-city development. Establishes the problem ofoperating in the inner city, which has caused manyretailers, including grocery chains, to shut down andmove to the suburbs. Teaching Purpose: May be usedin Ethics, Urban Development, and Retailing coursesto help students explore: 1) the responsibility ofbusinesses, especially retailers, to urban economicdevelopment; 2) problems facing inner-cityconsumers; 3) techniques for managing costs inurban environments; and 4) the prospects forsuperstores in the city.

Chapter 3: Environmental Scanning and Industry AnalysisNapster andMP3: Redefiningthe MusicIndustryMary M. CrossanMargaret AnnWilkinson ;Mark Perry ;Trevor Hunter ;Tammy Smith

Ivey School,UWO22pProductNumber:901M02TN available.

Global IndustrySetting: musicCase Time FrameStart: 2000 CaseTime Frame End:2000

The music industry has changed dramatically astechnological and business innovations havetransformed how music is acquired and how value iscreated and distributed. Napster, Inc. operated one ofseveral Web sites that allowed Internet users freeaccess to MP3 music files--which eventually led tolawsuits aimed at protecting intellectual capital. Thecase explores the issues, then examines the forces atplay in the transformation of the music industry, thestrategic alternatives for players in the industry, andthe legal context underpinning the strategicalternatives, with a particular focus on the protectionof intellectual capital.

The U.S. Airline HBSP United States, Describes the economic logic leading to the

Industry in 1995Anita McGahan ;Julia Kou

ProductNumber:795-11322pTN available

airline, 1995 deregulation of the American airline industry in1978, and subsequent competitive developments.The roles of computerized reservation systems,airport hubs, route strategies, and fleetmanagement are raised as unanticipated tacticalresponses. The decision focus of the caseemphasizes the prospect of regulation. This caseis designed to illustrate the connections betweenindustry evolution and the opportunities availableto firms as they seek to develop competitiveadvantage.

ComputerReservationSystems : AnIndustry of ItsOwnAli F.Farhoomand ;Andrew Lee

Univ. ofHong Kong17pProductNumber:HKU055TN available

GlobalIndustry Setting:airline industryCase Time FrameStart: 1998 CaseTime Frame End:1998

Computer Reservation Systems (CRS) vendors haveenjoyed an indispensable role in the travel industry--75 to 80% of all airline bookings are made by travelagents using CRSs. But by mid-1998, their solidposition in the industry is being threatened by twoforces: the websites run by airlines that are capableof accepting bookings directly from customers, and anew CRS, supported by travel agencies around theworld, called Genesis. It is scheduled to go on trial in4th quarter of 1998 and for launch in 1999. TeachingPurpose: The objective of this case is for the studentsto recognize these two threats, analyze the nature ofthem, and devise a number of strategies to counterthem.

The ChineseFireworksIndustryPaul W. BeamishRuihua Jiang

Ivey School,UWO15pProductNumber:99M031TN available

China IndustrySetting: fireworksCase Time FrameStart: 1999 CaseTime Frame End:1999

Illustrates an industry that is experiencingintensifying competition and regulation. The Chinesefireworks industry thrived after China adopted the"open door policy" in the late 1970s and grew tomake up 90% of the world's fireworks export sales.However, starting from the mid-1990s, safetyconcerns led governments both in China and abroadto set up stricter regulations. At the same time, therewas rapid growth in the number of small family-runfireworks workshops, whose relentless price cuttingdrove down profit margins. Teaching Purpose:Students are asked to undertake an industry analysis,estimate the industry attractiveness, and proposepossible ways to improve the industry attractivenessfrom an individual investor's point of view.

Edward JonesMichael E. PorterGregory C. Bond


United StatesIndustry Setting:retail financialservices GrossRevenue: $1billion revenuesNumber ofEmployees:11,000 Case TimeFrame Start: 1999Case Time FrameEnd: 1999

Edward Jones is a leading, highly profitable retailbrokerage firm with a unique strategy vis-a-vis itsrivals. The case describes Jones's activities andallows a rich discussion of its positioning choices,supporting activities, and tradeoffs. Jones must copewith a rapidly evolving industry, which at least onthe surface, is threatening to its strategy. TeachingPurpose: Reviews strategic positioning and strategyin changing industries.

GilletteIndonesiaJohn A. Quelch ;Diane Long

HBS15pProductNumber:

Indonesia IndustrySetting: consumerproducts GrossRevenue: $6.8

The country manager of Gillette Indonesia isreviewing his 1996 marketing plan and consideringwhether the pace of market development and mix ofproduct sales can be impacted by the level and type

9-597-009TN available

billion revenuesNumber ofEmployees:33,500 Case TimeFrame Start: 1995Case Time FrameEnd: 1996

of Gillette expenditures in the market. TeachingPurpose: To illustrate the evolution of a product linein an emerging market and to understand howmanagement can influence the pace of marketdevelopment.

Chapter 4: Internal Scanning: Organizational AnalysisStarbucksMary M. CrossanAriff Kachra

Ivey School,UWO27pProductNumber:98M006TN available

United StatesIndustry Setting:retail coffee shopsCompany Size:large Case TimeFrame Start: 1997Case Time FrameEnd: 1997

Starbucks is faced with the issue of how it shouldleverage its core competencies against variousopportunities for growth, including introducing itscoffee in McDonalds, pursuing further expansion ofits retail operations, and leveraging the brand intoother product areas. The case is written so thatstudents need to first identify where Starbucks'competencies lie along the value chain, and thenassess how well those competencies can be leveragedacross the various alternatives. Also provides anopportunity for students to assess what is drivinggrowth in this company. Starbucks has a tremendousappetite for cash since all its stores are corporate, andinvestors are betting that it will be able to continueits phenomenal growth so it needs to walk a fine linebetween leveraging its brand to achieve growth andnot eroding it in the process.

Xerox: Book-In-TimeV. KasturiRangan

HBS18pProductNumber:9-599-119TN available

United StatesIndustry Setting:book publishingCompany Size:Fortune 500 GrossRevenue: $20billion revenuesCase Time FrameStart: 1999 CaseTime Frame End:1999

Describes the state of the book publishing industryand the potential for a new technology. Book-In-Time, developed at Xerox, can reduce the cost ofprinting "one" book dramatically. Combined with thepossibilities of digital content storage andtransmittal, the new technology has vastopportunities. Xerox needs a commercial plan.Teaching Purpose: To discuss the impact oftechnology on distribution value chain.

BedrockProductionsMichael J.Roberts ;Michael L.Tushman


New YorkIndustry Setting:Web consultingCompany Size:small GrossRevenue: $10million Number ofEmployees: 100Case Time FrameStart: 2000 CaseTime Frame End:2000

Describes a young Web consulting firm goingthrough a very rapid period of growth in late 1999and 2000. The founder/CEO sees himself as more ofa strategist marketer and less well-suited to theoperational details, which are expanding as the firmgrows. A president is hired, but fired soon after.Raises issues around what the founder's roleis/should be, whether a new president is required,whether the new expanded senior team can take onsome of these responsibilities, and if/how thefounder must change

SouthwestAirlines – 1993(A)James L. HeskettRoger Hallowell

HBSProductNumber:694-02329pSupplement

Dallas, TXIndustry Setting:airlines, 1993

Southwest Airlines, the only major U.S. airline tobe profitable in 1992, makes a decision as towhich of two new cities to open, or to add a newlong-haul route. Provides windows intoSouthwest's strategy, operations, marketing, andculture. Illustrates how an airline can

available simultaneously be a low-cost leader, serviceleader, and profit leader.

ContinuousCastingInvestments atUSX Corp.Clayton M.Christensen

HBSProductNumber:697-02018pTN available

United StatesIndustry Setting:steel, 1987-1989

Focuses on the difficulty established companiesface when confronted with disruptivetechnological innovations. The power that theirprior asset investments, their cost structures, andtheir customers have in constraining theirinvestment and innovation decisions are clearlyillustrated.

Chapter 5: Strategy Formulation:Situation Analysis and Business StrategyRobert Mondavi:CompetitiveStrategyMichael E. PorterGregory C. Bond


Global IndustrySetting: wineGross Revenue:$325 millionrevenues Numberof Employees:1,100 Case TimeFrame Start: 1999Case Time FrameEnd: 1999

Describes the competitive situation facing RobertMondavi, the leading premium California winery.Mondavi has been an industry innovator and hasrecently taken steps to become more international.Mondavi has to cope with growing domesticcompetition as well as market share growth bywineries from Chile and Australia. TeachingPurpose: Designed to explore competitive strategy inan evolving industry with a special focus oninternational strategy.

Eckerd Corp.Michael E. PorterJohn C. Kelleher


United StatesIndustry Setting:retail drugsCompany Size:large GrossRevenue: $10billion revenuesNumber ofEmployees:78,000 Case TimeFrame Start: 1940Case Time FrameEnd: 1999

Describes the history and current situation in theretail pharmacy industry, including competition fromnew merchants and Internet drug stores. Eckerd, oneof the top four drug chains, must decide how toposition itself for the future. Teaching Purpose: Tosupport a discussion on the evolution of competitionand competitive dynamics among rivals.

Matching DellJan W. Rivkin ;Michael E. Porter


Global IndustrySetting: personalcomputersCompany Size:Fortune 500 GrossRevenue: $19billion revenuesCase Time FrameStart: 1998 CaseTime Frame End:1998

After years of success with its vaunted "DirectModel" for computer manufacturing, marketing, anddistribution, Dell Computer Corp. faces efforts bycompetitors to match its strategy. This case describesthe evolution of the personal computer industry,Dell's strategy, and efforts by Compaq, IBM,Hewlett-Packard, and Gateway 2000 to capture thebenefits of Dell's approach. Students are called on toformulate strategic plans of action for Dell and itsvarious rivals. Teaching Purpose: Designed to betaught in any of several places in an MBA course oncompetitive strategy. Permits an especially detailedexamination of imitation; illustrates how fit amongactivities and incompatibilities between competitivepositions can pose particularly high barriers toimitation. Can also be employed to illustratecompetitor analysis, the evolution of industrystructure, and relative cost analysis.

ProgressiveCorp.Michael E. Porter

HBS25pProduct

United StatesIndustry Setting:automobile

Progressive is a leader in providing non-standard(high risk) automobile insurance to drivers acrossAmerica, with a long record of extraordinary

NicolajSiggelkow

Number:9-797-109

insurance GrossRevenue: $2billion revenuesCase Time FrameStart: 1993 CaseTime Frame End:1993

profitability. Progressive is facing a challenge in itssegment from Allstate, the industry leader, and mustdecide how to respond. Teaching Purpose: Designedto explore competitive positioning using theconcepts of activities, activity systems, and tradeoffsbetween positions.

Coca-Cola vs.Pepsi-Cola andthe Soft DrinkIndustryMichael E. PorterRebeccaWayland


GlobalIndustry setting:BeveragesCompany Size:Fortune 500

Describes the competition between Coca-Cola andPepsi-Cola. Provides a summary of the history of thesoft drink industry prior to World War II, and overthe period 1950-1990 in greater detail. Majorstrategic competitive moves and countermoves aredescribed. Also profiles industry developments,including the Pepsi Challenge, the reformulation ofCoca-Cola, and the consolidation of the bottlernetwork. Provides a teaching vehicle for analysis ofcompetitors and strategic rivalry. An updated andrevised version of an earlier case.

Edmunds.com(A) Stephen P.Bradley ;Christina Akers


Santa Monica, CAIndustry Setting:Internet automotiveresource site CaseTime FrameStart: 1997 CaseTime Frame End:2000

Edmund's began in 1966 as a publisher of new andused vehicle guides and grew into one of the leadingthird-party automotive web sites of today. This caseexplores how Edmunds.com gained a competitiveedge using strategic partnerships and alliances, aswell as careful product positioning and strategyimplementation.

iSteelAsia.com:A B2B ExchangeAli F.Farhoomand ;Deric Tan

U. of HongKong19pProductNumber:HKU114TN available

Hong KongIndustry Setting:B2B electroniccommerce, steelCase Time FrameStart: 2000 CaseTime Frame End:2000

Forging strategic alliances was a common methodemployed by operators of steel portals to expandtheir repertoire of services and to enhance the e-commerce capabilities of their sites. Those thataspired to promote and cement their presence inother countries had gone further by signingagreements with indigenous companies to leverageon their knowledge of and familiarity with the localindustry. Regardless of their country of origin, thesesteel portals had taken a similar strategy to attractmore users to their sites. iSteelAsia has beenemploying the same strategy to offer a range of third-party services and to create affiliated portals in othercountries. However, in an unprecedented move, it istaking a step further. Instead of finding a strategicpartner to promote its presence in other countries, itis proposing to acquire an equity interest in a steeltrader.

Chapter 6: Strategy Formulation: Corporate StrategyApple Computer,2002David B. Yoffie ;Yusi Wang


Global IndustrySetting: personalcomputersCompany Size:Fortune 500 GrossRevenue: $5.4billion revenues

In 1980, Apple was the leader of the PC industry, butby 2002 it had suffered heavy losses at the hands ofthe Wintel camp. This case examines Apple'sstrategic moves as the PC industry evolves in the21st century and poses the question: Can Steve Jobsmake Apple "insanely great" again? TeachingPurpose: To teach industry analysis and problems in

Case Time FrameStart: 1977 CaseTime Frame End:2002

sustaining competitive advantage.

Intel Corp.--1997-2000RamonCasadesus-Masanell ;Michael G.Rukstad


Silicon Valley, CAIndustry Setting:semiconductorsCompany Size:Fortune 500 GrossRevenue: $30billion revenuesNumber ofEmployees:70,000 Case TimeFrame Start: 1997Case Time FrameEnd: 2000

Describes Intel's diversification strategy initiated in1998 by CEO Craig Barrett. Initially, Barrett'sstrategy worked well, as market value reached $510billion in September 2000. However, just threemonths later, investor pessimism over a slowingeconomy and recent problems at Intel resulted inmarket valuation plummeting by more than 55%.Teaching Purpose: Asks students to analyze thereasons for the drop in market value.

GE's Two-DecadeTransformation:Jack Welch'sLeadershipChristopher A.Bartlett ; MegWozny

HBS24pProductNumber: 9-399-150

United States,Global IndustrySetting: industrialconglomerateGross Revenue:$100 billionrevenues Numberof Employees:293,000 CaseTime FrameStart: 1981 CaseTime Frame End:1998

GE is faced with Welch's impending retirement andthe question on many minds is whether anyone cansustain the blistering pace of change and growthcharacteristic of the Welch era. After brieflydescribing GE's heritage and Welch's transformationof the company's business portfolio of the 1980s, thecase chronicles Welch's revitalization initiativesthrough the late 1980s and 1990s. It focuses on six ofWelch's major change programs: The "Software"Initiatives, Globalization, Redefining Leadership,Stretch Objectives, Service Business Development,and Six Sigma Quality. Teaching Purpose: Can beused to develop multiple lessons, includingcorporate strategy development, transformationalchange, management and leadership, and corporaterenewal.

Dean FoodsRay A. GoldbergDavid E. Bell ;Kim Slack ; AnnLeamon


Franklin Park, ILIndustry Setting:dairy processingGross Revenue:$4.4 billionrevenues CaseTime FrameStart: 2000 CaseTime Frame End:2000

After 50 years of successful growth, mostly byacquisition, Dean Foods, the nation's second-largestdairy processor, has established a division to developand market branded products nationally. Can a $4billion company rely on a $300 million growthvehicle? Is this the best way to respond to theprevailing trends in the food retailing industry? CanDean, known as a private label producer of fluidmilk, make the transition from commodity tobranded, value-added products? Teaching Purpose:To introduce students to the complexity of changinga corporate mindset from commodity production.

TriconRestaurantsInternational:GlobalizationRe-examinedPankajGhemawat ;Tarun Khanna


Global IndustrySetting: fast-foodNumber ofEmployees:500,000 CaseTime FrameStart: 1997 CaseTime Frame End:1997

Describes a leading fast food operator/franchisertrying to consolidate and standardize its operationsworldwide and focus its efforts on a few keymarkets. Lends itself to a discussion of how globalthe fast food industry is, whether Tricon's newinternational strategy is consistent with industrystructure and its competitive position, and, if so,which country markets to focus on.

Dell: SellingDirectly,

U. of HongKong

China IndustrySetting: personal

One of the first companies to practice the highly-touted business-to-consumer Internet business

GloballyAli F.Farhoomand ;Peter Lovelock ;Pauline Ng

28pProductNumber:HKU069TN available

computers CaseTime FrameStart: 1998 CaseTime Frame End:1998

model, Dell entered the PC market with a force andshook up the industry with its revolutionary,customer-oriented streamlined distribution style.This case tracks Dells' evolving business andindustry and highlights its entry strategy for China.Teaching Purpose: To provide a basic understandingof the direct business-to-customer model; to suggestthe limitations of using the direct model for globalexpansion; to teach the significance of timing forentry into new markets, particularly in the context ofthe direct model; to assess the potentials forconducting business online, and in particular thebenefits of the Internet for business-to-customertrading; to examine the development of anappropriate strategy for Dell in China.

The De-Globalization ofMarks & Spencerin 2001, AnUpdateRobert A.Burgelman ;Philip Meza

Stanford11pProductNumber:SM87

Global, UnitedKingdom IndustrySetting: retailingGross Revenue: 8billion poundsrevenues Numberof Employees:70,000 Case TimeFrame Start: 1999Case Time FrameEnd: 2001

The venerable British retailer Marks & Spencersuffered a series of setbacks in the late 1990s. Thecompany's performance, which had been solid fordecades, quickly deteriorated, forcing the rapidturnover of chief executives and many restructurings.Perhaps the largest change the retailer made was theabandonment of its global expansion plans,withdrawing from continental Europe and trying tosell off assets in the United States, including thewell-known clothiers Brooks Brothers. This caseexamines the changes Marks & Spencer madebetween 1998 and 2001, as the company tries toshore up its ailing core business, U.K. retail, whiledeciding on an appropriate global strategy.

IBM Corp.TurnaroundRobert D. AustinRichard L. Nolan


Armonk, NYIndustry Setting:computer hardware& softwareCompany Size:Fortune 500 GrossRevenue: $80billion revenuesNumber ofEmployees:300,000 CaseTime FrameStart: 1991 CaseTime Frame End:1995

Describes the details of IBM's dramatic corporateturnaround in the early 1990's led by CEO Louis V.Gerstner. Accounts of events are from interviewswith IBM executives. Covers the factors that led tothe company's decline and actions taken to get torecovery. Teaching Purpose: To demonstrate howone company orchestrated perhaps the mostimpressive turnaround in corporate history

Chapter 7: Strategy Formulation:Functional Strategy and Strategic ChoiceSelecting aHosting ProviderRobert D. Austin

HBS12pProductNumber: 9-601-171TN available

N/A Asks students to develop criteria for selecting a webhosting company, then to select one of three profiledin case exhibits. In choosing a hosting vendor,students represent one of two companies: one a start-up, the other an industrial-age manufacturer. Byassigning some students to represent the start-up andothers to represent the manufacturing company, theinstructor can tease out differences in criteria for

these two types of companies. The two companiesmight well choose different hosting providers.Teaching Purpose: To introduce students to a newcategory of outsourcing decisions; the infrastructureof the evolving Internet provides a new slant onsome old questions about how to choose businesspartners.

Documentum,Inc.Rajiv Lal ; SeanLanagan


Silicon Valley, CAIndustry Setting:enterprise softwareCompany Size:start-up GrossRevenue: $2million revenuesNumber ofEmployees: 20Case Time FrameStart: 1993 CaseTime Frame End:1993

Describes Jeff Miller's attempt to implementGeoffrey Moore's crossing the chasm ideas atenterprise software vendor, Documentum. TeachingPurpose: Illustrates marketing strategy tradeoffsand a market selection process.

Martin Smith:May 2002G. FeldaHardymon ;Joshua Lerner ;Ann Leamon


New York, NYIndustry Setting:private equityNumber ofEmployees: 20Case Time FrameStart: 2002 CaseTime Frame End:2002

Martin Smith, a recent HBS graduate, has just startedwith a leveraged buyout firm. His first assignment isto evaluate three different deals and makerecommendations to the partners. As he studies thedeals, he realizes that each has different merits anddrawbacks and that his recommendation must takeinto account not only the specifics of each targetcompany but also the situation of his firm, alongwith the stage of his career and that of the seniorpartner. Teaching Purpose: To introduce students tothe many facets of deal evaluation and the fact that a"good" deal depends on many factors, includingsome particular to the partnership itself.

IncatJonathan West ;Christian G.Kasper


Tasmania,AustraliaIndustry Setting:shipbuildingGross Revenue:$100 millionrevenues Numberof Employees:1,000 Case TimeFrame Start: 2000Case Time FrameEnd: 2000

Incat is a cutting-edge manufacturer of high-speedaluminum catamaran ferries. The company has beenan entrepreneurial success story, growing to be thelargest private employer in its home state ofTasmania, Australia. By 2000, Robert Clifford, thecompany's dynamic CEO and founder, must choosebetween two lucrative orders for different ferrydesigns. One order builds off of the current 96-meterdesign while the other would push Incat to make aquantum jump to 200 meters. Analysis of thetradeoffs in this "bet-the-company" decision raisesissues of manufacturing complexity, operationscapabilities, and the challenges of sustainablegrowth.

FlowComponents:InternationalSourcingStrategyMichael J.Enright ; DavidT. Kotchen


United StatesIndustry Setting:stainless steelflanges GrossRevenue: $70million revenuesCase Time FrameStart: 1993 CaseTime Frame End:

Flow Components, a U.S.-based manufacturer ofstainless steel flanges, has undertaken an aggressiveinternational sourcing strategy. The bankruptcy of acompetitor that had followed a similar sourcingstrategy provides an impetus to assess FlowComponents' strategy. Teaching Purpose: Allows forthe detailed assessment of a cost-based internationalsourcing strategy, including comparative costinformation.

1993Kuehne & Nagelin the Asia-PacificEdmund R.Thompson ;Vanessa N. Clark

U. of HongKong23pProductNumber:HKU048

Hong KongIndustry Setting:forwarding CaseTime FrameStart: 1998 CaseTime Frame End:1998

In the 1990s, freight forwarding had become arapidly changing and dynamic industry. Verticalintegration up the supply chain meant that third-partylogistics providers could provide a "one-stop-shopping" concept to customers and achievegenerally higher margins per transaction volume.Still in the grip of the Asian economic crisis, Kuehne& Nagel management consider a future strategy fortheir Asia-Pacific operations. The case covers severalconcepts relating to competitive strategy, corporatestructure, and core competence. The principalobjective is to highlight the juxtaposition of businessmanagement theoretical concepts with theirapplication. Other objectives include: (1) analyze therelated but discrete industries of physical freightforwarding and supply chain management logistics;(2) decide which industry affords the most lucrativemargins; (3) examine how firms in any sectorstructure and manage the coordination of value-adding activities; (4) consider how firms managetheir structure in increasingly competitive global,regional, and local environments.

Building theCulture atAgilentTechnologies:Back to theFutureCharles A.O'Reilly III;Grace Yokoi

Stanford GSB31pProductNumber:HR20

United StatesIndustry Setting:electronics GrossRevenue: $174million revenuesNumber ofEmployees:47,000 Case TimeFrame Start: 1999Case Time FrameEnd: 2001

In 1999, Hewlett-Packard (HP) split into twocompanies. The issue facing human resources (HR)had to do with creating loyalty and enthusiasm for anew company (Agilent) whose roots lay in anestablished institution with an extremely loyalworkforce who identified with the HP brand. Howcould they create a new culture of more focus andaccountability with the same people? Developing anorganizational culture that supported businessperformance and accountability was the foremost HRtask. This case provides detailed background on thecompany's key initiatives and projects to transformHR organization and culture in the new company.The HR transformation marked a change from anegalitarian, safe culture to a performance culturecharacterized by a strong meritocracy and a results-based rewards program. In 2001, the company facedincreasing financial challenges that would test thenewly developing culture. How could topmanagement continue building the Agilent culture--especially in the face of layoffs and restructuring?

Cisco Systems:Web-enablementRichard L. NolanKelley PorterChristina Akers


Silicon Valley, CAIndustry Setting:informationtechnology GrossRevenue: $8billion revenuesNumber ofEmployees:10,000 Case TimeFrame Start: 1998Case Time FrameEnd: 1998

Describes how Cisco web-enabled their ERPsystems and developed the "front office" systems toelectronically link to their customers and suppliers.

Chapter 8: Strategy Implementation: Organizing for ActionPhilips vs.Matsushita: ANew Century, aNew RoundChristopher A.Bartlett


Global, Europe,Japan IndustrySetting: consumerelectronicsCompany Size:large GrossRevenue: $40billion-$60 billionrevenues Numberof Employees:270,000 CaseTime FrameStart: 1970 CaseTime Frame End:2001

Describes the development of the internationalstrategies and organizations of two majorcompetitors in the global consumer electronicsindustry. The history of both companies is traced andtheir changing strategic postures and organizationalcapabilities are documented. Particular attention isgiven to the major restructuring each company isforced to undertake as its competitive position iseroded. Teaching Purpose: Illustrates how globalcompetitiveness depends on organizationalcapability, the difficulty of overcoming deeplyembedded administrative heritage, and thelimitations of both classic "multinational" and"global" models.

Hermes SystemsMichael L.Tushman ;Daniel B. Radov


United StatesIndustry Setting:computers/telecomGross Revenue:$10 billionrevenues CaseTime FrameStart: 1986 CaseTime Frame End:1995

Covers the history of Hermes, a largetelecommunications and network equipmentcompany, as it grows from a single business firm to adiversified firm from 1980-95. Examines the use ofentrepreneurial subsidiaries for product developmentand fast growth. Other issues include the challengesof managing ambidextrous organizations and theproblems a CEO faces in keeping control of fastgrowing divisions.

Eli Lilly--1998(A): StrategicChallengesMichael Y.Yoshino ;Thomas W.Malnight


Global IndustrySetting:pharmaceuticalsCompany Size:Fortune 500 CaseTime FrameStart: 1998 CaseTime Frame End:1998

Deals with key strategic challenges facing Eli Lilly, ahighly successful U.S.-based drug company.Teaching Purpose: To help students developappreciation of some of the very complex strategicissues faced by a major company in a research-intensive industry.

Eli Lilly--1998(B): EmergingGlobalOrganizationMichael Y.Yoshino ;Thomas W.Malnight


Global IndustrySetting:pharmaceuticalsCompany Size:Fortune 500 CaseTime FrameStart: 1998 CaseTime Frame End:1998

Examines major issues faced by Eli Lilly as itevaluates the appropriateness of a focused matrixorganization with extensive use of cross-functionalteams. Teaching Purpose: To help studentsappreciate the complexities of a global organizationwhere product/functional/geographic knowledgemust be optimized.

Harvey Golub:RechargingAmericanExpressDavid A. GarvinArtemis March

HBS23pProductNumber:9-396-212Video andTN available

New YorkIndustry Setting:financial servicesCompany Size:large GrossRevenue: $14billion revenuesNumber ofEmployees:

Describes the large-scale change process initiatedand led by Harvey Golub as CEO of AmericanExpress. Describes the organization he inherited, twosuccessive waves of reengineering, his "principles-driven" approach to decision making, and his goal ofconverting American Express from a diversifiedfinancial supermarket to one unified operatingcompany. Teaching Purpose: Introduces students tomany of the basic principles in leading

70,000 Case TimeFrame Start: 1980Case Time FrameEnd: 1990

transformational change, explores the requirementsfor effective reengineering, and examines aleadership approach based on values and a few coreprinciples. Also shows how a CEO can move a largeentrenched organization in new directions.

Acer, Inc.:Taiwan'sRampagingDragonChristopher A.Bartlett ;Anthony St.George


Taiwan and GlobalIndustry Setting:computers GrossRevenue: $3.2billion revenuesNumber ofEmployees: 5,800Case Time FrameStart: 1976 CaseTime Frame End:1995

Describes the strategic, organizational, andmanagement changes that led Acer from its 1976startup to become the world's second-largestcomputer manufacturer. Outlines the birth of thecompany, the painful "professionalization" of itsmanagement, the plunge into losses, and thetransformation under founder Stan Shih's radical"fast food" business concept and his "client server"organization model, which are put to the test when ayoung product manager in Acer America develops aradically new multimedia home PC with globalpotential. Shih must decide whether to give aninexperienced manager in a loss-generatingsubsidiary the green light. Teaching Purpose: Toexplore the links between global strategy andstructure, to evaluate leadership of transformationalchange, and to examine development of globalcompetitive advantage.

J.C. PenneyWalter J. SalmonJeanne M.Blasberg ; DavidWylie


Dallas, TXIndustry Setting:retailing GrossRevenue: $21billion revenuesCase Time FrameStart: 1990 CaseTime Frame End:1995

J.C. Penney used sophisticated technology topreserve the company's decentralization, whichgave the stores a strong voice in selecting inventory.The benefits gained from local market knowledge,however, had to outweigh the foregone savings fromdecreased vendor leverage and speed. J.C. Penneyexecutives realized technology alone was notadequate to ensure effective merchandising. Lookingahead, they wondered what further changes couldcontribute to the goal of becoming an even moresuccessful national department store chain. Wouldthe balance between central and store responsibilityhave to be adjusted further to compete effectivelywith increasingly more centrally run retailers?

Chapter 9: Strategy Implementation: Staffing and DirectingThe Men'sWearhouse:Success in aDecliningIndustryAuthor(s):Jeffrey Pfeffer


San Francisco, CAIndustry Setting:retail clothingGross Revenue:$500 millionrevenues Numberof Employees:4,000 Case TimeFrame Start: 1997Case Time FrameEnd: 1997

George Zimmer, CEO of the Men's Wearhouse, isconsidering what has made the firm so successful;what, if anything, it should do differently to continueto succeed; and how to manage its growth andculture as the firm expands in the very competitivemen's tailored clothing market. Retailing is thelargest industry in the United States. Most retailingfirms have traditionally been staffed with poorlypaid, poorly trained, part-time help, and oftenexperience tremendous turnover. Founded in 1973 inHouston, the Men's Wearhouse now has over 300stores and is adding stores at the rate of 50 per yearas it extends its geographic reach. This case providesinformation on the founder's beliefs, the firm'sfinancial performance, the company's managementpractices, and detailed information on its various

training activities.SpecialtyMedicalChemicalsAuthor(s):Richard G.Hamermesh ;Lucinda Doran


United StatesIndustry Setting:medical GrossRevenue: $425million revenuesNumber ofEmployees: 1,600Case Time FrameStart: 1998 CaseTime Frame End:1998

A new general manager is supposed to rekindlegrowth. Seven months later, he questions the abilitiesof his direct reports. An organizational psychologistis brought in to assess his people. The generalmanager now has to decide who to keep and how tostructure his direct report team. Teaching Purpose:To illustrate the issues a general manager faces whenassembling his direct report team.

AvantGoAuthor(s): AlanMacCormack ;Kerry Herman


Silicon Valley, CAIndustry Setting:hightechnology/wireless/mobile Numberof Employees: 310Case Time FrameStart: 1998 CaseTime Frame End:2000

Richard Owen, CEO of AvantGo, is preparing for ameeting in which he will set the human resourcepolicy for the firm going forward. It has been threemonths since the company's IPO, and given thetremendous cramp in hiring over the six months priorto the IPO, he knows that this meeting will set theexpectations for the many annual evaluations thatwill follow. Uppermost in his mind is the decisionover whether to implement a "forced-curve" gradingscheme, and the implications of this decision on staffperceptions and notification. Teaching Purpose: Toillustrate the challenges of a rapidly growing newtechnology venture, specifically with regard to thehiring, retention, and firing of new employees.Also examines the process of building a seniormanagement team, including the decision of when toreplace a CEO, how to do it, and with whom.

Hewlett-PackardBarcelonaDivisionAuthor(s):Paddy Miller

IESE21pProductNumber:IES025

Spain IndustrySetting: electronicsCompany Size:Fortune 500 CaseTime FrameStart: 1994 CaseTime Frame End:1994

Briefly traces the history of the Barcelona Divisionof Hewlett-Packard from its inception in 1984 as amanufacturing unit producing under license to thepresent time, when it is a fully-fledged profit centerresponsible for its own global marketing, production,and distribution. The role and contribution of each ofthe general managers before the arrival of generalmanager Rich Raimondi is discussed. Raimondi istypical of many expatriate managers who arrivewith minimal linguistic skills on their firstassignments in Europe. How he manages the divisionto become a business unit during his three-yeartenure is covered through various observations by hismanagement team. Teaching Purpose: May be usedin courses on managing change to focus on the issuesfacing expatriate managers.

Corning--1996-2000: GrowingCorningAuthor(s):Michael J.Roberts ;Michael L.Tushman


Corning, NYIndustry Setting:glass CompanySize: Fortune 500Gross Revenue:$5.3 billionrevenues Numberof Employees:38,000 Case TimeFrame Start: 1996Case Time Frame

Focuses on Roger Ackerman's successful culturechange effort--growing Corning. Presents a detaileddescription of Ackerman's effort, and the changesthat transpired in the business, the culture, and thesenior team. Teaching Purpose: Shows an exampleof a successful culture change effort. Highlights newissues as the business evolves and becomes morehighly differentiated.

End: 2000Holy CrossHospital: TheRoad to a NewCultureAuthor(s):Jeffrey Pfeffer ;Victoria Chang


Ft. Lauderdale, FLIndustry Setting:health care GrossRevenue: $166million revenuesNumber ofEmployees: 2,500Case Time FrameStart: 1999 CaseTime Frame End:2001

The senior management team at Holy CrossHospital, a nonprofit hospital based in Florida,wanted to build a culture at the hospital that wasdifferent from the traditional authoritarian andhierarchical hospital cultures at other for-profit andnonprofit hospitals across the United States. CEOJohn Johnson developed a new cultural strategybased on the concept of putting people first. By2000, Johnson was pleased with his progress, but hewas also frustrated with the occasionally slow paceof change and wondered what he should do to movethings forward more quickly. Johnson also felt thatthe cultural transformation was losing steam and heneeded to revive employee enthusiasm. TeachingPurpose: To teach students how to transform acompany's culture in a more traditional andfinancially strapped industry such as health care.

Maureen Frye atQuaker Steel andAlloy Corp.Author(s): JohnJ. Gabarro


PennsylvaniaIndustry Setting:metals CompanySize: large CaseTime FrameStart: 1995 CaseTime Frame End:1995

Maureen Frye, assistant product manager at QuakerSteel and Alloy Corp., is asked to implement anaction plan for changing the call pattern of the salesforce. Currently the sales force is spending too muchtime on small accounts. Earlier Frye attempted tochange their call patterns without success. Now withthe express call mandate of top management she hasto present a plan that will work.

Chapter 10: Evaluation and ControlVyadermPharmaceuticalsAuthor(s):Robert L. SimonsIndra A.Reinbergs


Seattle, WAIndustry Setting:pharmaceuticalsGross Revenue:$2.7 billionrevenues Numberof Employees:17,500 Case TimeFrame Start: 2000Case Time FrameEnd: 2000

In 1999, the new CEO of Vyaderm Pharmaceuticalsintroduces an Economic Value Added (EVA)program to focus the company on long-termshareholder value. The EVA program consists ofthree elements: EVA centers (business units), EVAdrivers (operational practices that improve EVAresults), and an EVA-based incentive program forbonus-eligible managers. Over the next two years,the implementation of the program runs into severalstumbling blocks, including resistance from regionalmanagers, who push for "line of sight" EVA drivers;the difficulty of managing a large number of EVAcenters; and unexpected bonus adjustments due topoor EVA performance. The decision point focuseson the competitive situation in a business unit wherethe sudden exit of a competitor produces anunexpected one-time "windfall" in earnings.Vyaderm's top managers struggle with the questionof whether to adjust the EVA results to preventdemoralizing managers in future years when EVAresults are likely to decline. Teaching Purpose:Requires students to calculate EVA bonus payouts.

Identifying ValueCreators Su HanChan ; Ko Wang ; Mary Ho

U. of HongKong16pProductNumber:HKU185

1996 -2000 Presents measures of financial performance andhealth for pairs of Asian and American companies indifferent industries from 1996 to 2000. The measuresinclude economic profit (also known as EconomicValue Added) and other classic measures, such asfinancial ratios and stock price performance.

TN available Teaching Purpose: To interpret the range of financialcriteria presented and reflect on the consistency ofthose criteria in measuring value creation of firmsacross different industries in Asia and the UnitedStates and under different market conditions.

MontefioreMedical CenterRobert S. KaplanNoorein Inamdar


New YorkIndustry Setting:health care CaseTime FrameStart: 1998 CaseTime Frame End:1999

Describes the implementation of the BalancedScorecard management tool at a large urban medicalcenter and its acceptance among the variousconstituencies. Elaine Brennan, senior VP ofoperations, has reorganized a highly functionalhealth care organization into decentralized patientcare centers and support units. Having recentlyendured the pain of a major downsizing, she wantsthe various constituents--senior managers,physicians, nurses, technicians, and the work force--to think about how to implement a new strategyfocused on growth and patient care. But the existingmeasurement and management system reports onlyon costs and financial results. She introduces theBalanced Scorecard as a mechanism to increaseattention to and accountability for quality, service,work environment, and employee outcomes, as wellas revenues and costs. Teaching Purpose: 1) Toillustrate the application of the Balanced Scorecardin a complex health care system and the importanceof developing a management system that will supporta new organizational structure and strategy. 2) Toillustrate the role of leadership and communication indeploying a new management system.

Wells FargoOnline FinancialServices (A)Robert S. KaplanNicole Tempest

HBS18pProductNumber:9-198-146(B) caseavailableTN available

CaliforniaIndustry Setting:banking CaseTime FrameStart: 1997 CaseTime Frame End:1997

Describes how Wells Fargo, the industry leader inelectronic banking, implemented a BalancedScorecard in its online financial services group(OFS) to track and measure performance. The OFSgroup develops and supports services that allowexisting and future banking customers to transact viathe Internet. The new division faces rapid change andmust invest heavily in new technology and in thedevelopment of innovative products and services.OFS was finding it difficult to balance the need for aclearly articulated strategy and measurable objectiveswith the flexibility required in its dynamicenvironment. Wells Fargo had a culture thatembraced financial metrics. Yet OFS managementbelieved that its business could not be measured andevaluated on the basis of financial metrics alone. Forexample, the group was not yet profitable, yet itprovided a critical component to the bank's long-term strategy. The OFS group believed that theBalanced Scorecard would allow them to develop aset of integrated, multi-dimensional measures toassess performance against its goals, and tocommunicate and update its strategy in a rapidlychanging environment. With an extensive descriptionof the operations and economic drivers of the onlinefinancial services business, the case asks students touse this information to develop a Balanced

Scorecard for OFS. Teaching Purpose: Enablesstudents to explore the role of the BalancedScorecard measurement system in anentrepreneurial, rapidly-growing, technology-intensive business.

Cisco Systems,Inc.:ImplementingERPRobert D. AustinRichard L. NolanMark Cotteleer


Silicon Valley, CAIndustry Setting:informationtechnology GrossRevenue: $8billion revenuesNumber ofEmployees: 2,500Case Time FrameStart: 1993 CaseTime Frame End:1995

Reviews Cisco System's approach to implementingOracle's Enterprise Resource Planning (ERP)software product. This case chronologically reviewsthe diverse, critical success factors and obstaclesfacing Cisco during its implementation. Cisco facedthe need for information systems replacement basedon its significant growth potential and its reliance onfailing legacy systems. Case discussion focuses onwhere management was particularly savvy incontrast to where it was the beneficiary of goodfortune. Teaching Purpose: To foster discussion ofthe complexities of implementing large-scaleinformation systems. To illuminate some of thepositive and negative steps taken by a leadingcompany in its own implementation.

The CCMO:Incentives Game(Exercise) Jason R. Barro ;Brian Hall ;Jonathan P. Lim


N/A Provides an opportunity to gain insight aboutdesigning, negotiating, and responding to incentives.The setting is investment management. The basicstructure of the game is as follows. A class is dividedinto a certain number of investment firms. Eachcompany has one CEO and begins with fourportfolio managers (PMs), who manage theirportfolios by choosing from a restricted set of assets.Takes place over approximately two weeks and isdivided into three periods. Each period will last fromtwo to four days. At the end of each period, newfunds flow to high-performing portfolios while fundsflow out of poorly performing portfolios, simulatingcontributions from investors. CEOs and PMsnegotiate compensation arrangements and PMs maymove from one company to another, subject to somecosts and rules regarding how much of their portfoliothey take with them to their new companies. CEOstry to maximize the value of their companies at theend of the game whereas PMs attempt to maximizetheir total compensation during the game. TeachingPurpose: Designed to generate general insight aboutincentives, compensation, and negotiations in aworld where workers have choices about where andhow they want to work.

Chapter 11: Strategic Issues in Managing Technology and InnovationAmericanExpressInteractiveLynda M.Applegate


New York, NY andRedmond, CAIndustry Setting:travel andinformationtechnology CaseTime FrameStart: 1996 Case

Follows the protagonist, Sonia Sharpe, as she and herAmerican Express Interactive Team attempt todevelop and market an interactive, on-line, corporatetravel service in a highly competitive environment.Looks at the possible resources and partnerships acompany needs to succeed in the fast-paced world ofcomputer software and information technology.Ends with Sharpe questioning whether (and how) to

Time Frame End:1998

pursue international expansion and the integration ofthe Interactive Travel Service with other AmericanExpress services (for example, their corporate creditcard service).

Moore MedicalCorp.Andrew McAfeeGregory Bounds

HBS18pProductNumber: 9-601-142

ConnecticutIndustry Setting:medical suppliesGross Revenue:$124 millionrevenues Numberof Employees: 303Case Time FrameStart: 2001 CaseTime Frame End:2001

Moore Medical is a medium-sized distributor ofmedical supplies to practitioners such as podiatristsand emergency medical technicians. It has relied ontraditional customer channels such as catalogs,phones, and faxes to communicate product offerings,promotions, and availability, and to take orders. It isnow attempting to transition into a "bricks andclicks" distributor with a strong Internet presence. Ithas already made substantial investments in aneCommerce web site and in "back office" ERPsoftware to improve the fulfillment performance ofits four distribution centers. The ERP software hasnot lived up to expectations in all areas, and thecompany must decide whether to invest in moremodules for this system that might address itsshortcomings. It must also decide whether to make asignificant additional investment in customerrelationship management software. TeachingPurpose: Examines the factors underpinning ITinvestment decisions.

Selecting aHosting Provider(Exercise) Robert D.Austin


N/A Asks students to develop criteria for selecting a webhosting company, then to select one of three profiledin case exhibits. In choosing a hosting vendor,students represent one of two companies: one a start-up, the other an industrial-age manufacturer. Byassigning some students to represent the start-up andothers to represent the manufacturing company, theinstructor can tease out differences in criteria forthese two types of companies. The two companiesmight well choose different hosting providers.Teaching Purpose: To introduce students to a newcategory of outsourcing decisions; the infrastructureof the evolving Internet provides a new slant onsome old questions about how to choose businesspartners.

Mellon InvestorServicesThomas J.DeLong ;VineetaVijayaraghavan


New JerseyIndustry Setting:financial servicesNumber ofEmployees: 2,000Case Time FrameStart: 1999 CaseTime Frame End:2001

James Aramanda, head of Mellon Investor Services,must make decisions about how to change the focusof his business. He works with consultants to create achange strategy to enhance a business that is alreadydoing well. Will he be able to get his professionalsinterested in changing the nature of the way theymeet customer expectations and demands whilesimultaneously motivating and including hisprofessionals in the process? Teaching Purpose: Toteach organizational change in Human Capitalcourse.

What's the BIGIdea?Clayton M.Christensen ;Scott D. Anthony


Manchester, NHIndustry Setting:kids/toys GrossRevenue:$200,000 revenues

CEO Michael Collins must decide if and how aprocess he developed to further innovation in thekids' industry could port over to other industries. Theprocess was based on Collins' experiences as aninventor and as a venture capitalist, and it allowed

Number ofEmployees: 10Case Time FrameStart: 2001 CaseTime Frame End:2001

his company to be an intermediary between inventorsand innovation-seeking companies. The processseemed to be working quite well in the kids' industryand Collins had to decide what would "travel" to adifferent vertical. Teaching Purpose: Demonstrateshow innovation that might not happen internal to acompany can happen once it is removed from acompany's processes. Also raises questions as towhether you can develop a process to identify goodinvention ideas or whether it is an "art."

Du Pont KevlarAramidIndustrial Fiber(Abridged)Clayton M.Christensen


Delaware IndustrySetting: chemicalsCompany Size:Fortune 500 CaseTime FrameStart: 1974 CaseTime Frame End:1974

Describes Dupont's efforts to build commercialmarkets for its miracle fiber, Kevlar. Initially, itsought to create a market for Kevlar tire cord,primarily because its existing tire cord business waslanguishing. This market never developed, even afterDupont spent several hundred million dollars.Teaching Purpose: For use in courses relating tofinding new markets for new technologies. Arewritten version of an earlier case.

IDEO ProductDevelopmentStefan Thomke ;Ashok Nimgade PublicationDate: 6/22/2000


CaliforniaIndustry Setting:service/designGross Revenue:$50 millionrevenues Numberof Employees: 300Case Time FrameStart: 1998 CaseTime Frame End:1998

Describes IDEO, the world's leading product designfirm, and its innovation culture and process.Emphasis is placed on the important role ofprototyping and experimentation in general, and inthe design of the very successful Palm V handheldcomputer in particular. A studio leader is asked by abusiness start-up (Handspring) to develop a novelhand-held computer (Visor) in less than half the timeit took to develop the Palm V, requiring severalshortcuts to IDEO's legendary innovation process.Focuses on: 1) prototyping and experimentationpractices at a leading product developer; 2) the roleof playfulness, discipline, and structure in innovationprocesses; and 3) the managerial challenges ofcreating and managing an unusually creative andinnovative company culture.

Chapter 12: Strategic Issues inEntrepreneurial Ventures and Small BusinessesZipcarMyra Hart ;Wendy Carter


Boston, MAIndustry Setting:car rentalCompany Size:start-up GrossRevenue:$235,000 revenuesNumber ofEmployees: 7Case Time FrameStart: 1999 CaseTime Frame End:2000

Provides a detailed description of the processes andtasks associated with creating a new venture in anemerging industry (subscription car-sharing forurban dwellers). Chronicles the entrepreneur'sconcept development, industry analysis, marketresearch, identity definition, and brand building.Also provides background on writing the businessplan, creating a budget and building financials,developing a management team, creating businesspartnerships, and financing the businesses. TeachingPurpose: Raises several issues--including how tomanage the "chicken and the egg" process ofbuilding and testing the concept, getting resources,and engaging customers when starting a newventure. Provides examples of "bootstrapping" andcreative fundraising and concludes with the questionof how to grow the business strategically.

Enspire Learning HBS 2001 An MBA student founds an e-education business and

Roger HallowellBjorn Billhardt ;Frank Andrasco ;Hans ten Cate

23pProductNumber:9-802-001TN available

must decide which customers to target and whichproducts/services to produce. Examines the onlineeducation marketplace and encourages students todevelop action plans to succeed in it. TeachingPurpose: Designed to place the reader in a situationhe or she can empathize with and in which he or shecan make recommendations that will createalignment among targeted customers, customer valuepropositions, and service delivery systems. Alsoillustrates the importance of a simple and intuitivecustomer interface for an Internet-based service andthe approach successful firms have adopted todeliver such an interface.

ScreamingMedia,Inc.Paul W. MarshallMichele Lutz


New York, NYIndustry Setting:computer-relatedservices CompanySize: start-upGross Revenue:$21.9 millionrevenues Numberof Employees: 236Case Time FrameStart: 2000 CaseTime Frame End:2000

ScreamingMedia, a provider of content syndicationand services, must shift its customer base away fromInternet start-ups toward larger, more establishedcompanies to ensure future profitability. To achievethis goal, the company needs to retool the sales force,develop new products and services to meet the needsof new customers, and change its organizationalstructure to support the company's evolution.Teaching Purpose: To help students understand thedifficult choices that entrepreneurs need to make,often with limited information and sense of urgency.Students will be asked to develop a new marketstrategy and action plan outlining steps necessary toachieve strategic goals: sales retraining, developmentof new products and services, and changing theorganizational structure.

Howard Schultzand StarbucksCoffee Co.Nancy Koehn


Seattle, WAIndustry Setting:retailing GrossRevenue: $2.2billion revenuesNumber ofEmployees:37,000 Case TimeFrame Start: 1982Case Time FrameEnd: 2001

Investigates the entrepreneur's strategic initiativesto make a mass market for specialty coffee in the1980s and 1990s. These initiatives included thedevelopment of premium products, rapid expansionof company-owned stores--each with attractive retailenvironments and responsive customer service--and,especially, the creation of a strong brand. The casealso devotes considerable attention to how Schultzbuilt the Starbucks organization, examining theconsistent emphasis he and his colleagues placed onthe company's relationship with its employees, howSchultz financed Starbucks' early expansion, thesignificance of vertical integration in ensuringquality control, and how the company managed itsphenomenal growth after 1993. Teaching Purpose: 1)To examine how, in the midst of widespreadsocioeconomic change, an entrepreneur and hiscompany influenced millions of consumers' tastes,behavior, and daily lives, 2) to understand whySchultz and Starbucks came to lead the intenselycompetitive specialty coffee industry, and 3) toanalyze the relationship between entrepreneurialbrand creation and institution building.

Iggy's Bread ofthe WorldKathleen Valley ;Alexis Gendron

HBS14pProductNumber:

Cambridge, MAIndustry Setting:bakery Number ofEmployees: 130

In January 1994, Igor and Ludmilla Ivanovic openedthe doors of their bakery, Iggy's Bread of the World.This case describes their unusual mission statementand the way in which they try to bring a social

9-801-282TN available

Case Time FrameStart: 1999 CaseTime Frame End:2000

consciousness mentality to a for-profit business. Sixyears later they have grown beyond their physicaland administrative capacity. The Ivanovics mustdecide how to reconfigure the leadership structure ofthe company without losing their control over thefundamentals. Teaching Purpose: Explores direct vs.indirect influence, focusing on the difficultiesinherent in learning effective indirect influencetactics where one is accustomed to using directinfluence. Also explores issues in corporate cultureand corporate reorganization.

OXOInternationalH. Kent Bowen ;Marilyn E. MatisSylvieRyckebusch

HBS19pProductNumber: 9-697-007TN available

New York, NYIndustry Setting:kitchen tools andgadgets GrossRevenue: $22million revenuesNumber ofEmployees: 9Case Time FrameStart: 1996 CaseTime Frame End:1996

OXO, a kitchen tools and gadgets company, wasstarted by a businessman who had 30 years ofexperience in the housewares industry. With his wifeand son as founders, he creates a new niche in thegadgets industry for high-end gourmet stores. Thecompany has headquarters in New York City, but itoutsources product design to a NYC industrial designfirm, manufacturing to Asia, and warehousing to asite in Connecticut in order to manage start-up costsand growth. Because of the veteran businessman'sreputation and industry sense, the company growsquickly and in 1992 is sold for $6.2 million to a largehousewares distributor, General Housewares. Theoriginal owners stay on as consultants to the parentcompany and decide to turn over management of thecompany to a Harvard MBA who also has extensiveindustrial design experience. Innovative productdesign is the key to OXO's success, and the companyhas worked exclusively with one design firm basedon royalties of sold products. The new managingdirector initiates new product category programs forthe bathroom, the garden, and home baking. He mustcoordinate the outsourcing of the design anddevelopment function.

Chapter 13: Strategic Issues in Not-for-ProfitsJumpstartAllen Grossman ;ArthurMcCaffrey


United StatesIndustry Setting:pre-schooleducation Numberof Employees: 25Case Time FrameStart: 1993 CaseTime Frame End:2001

Many in the nonprofit sector doubt whetherorganizational performance can be measured.Jumpstart, a 10-year-old nonprofit, developedperformance measurement and management systemsfrom its inception. The organization has experiencedexplosive growth and attributes a great deal of itssuccess to creating a performance culture. TeachingPurpose: To analyze a sophisticated performancemeasurement and management system in a nonprofitorganization.

American HeartAssociation:Reorganizationof the WesternStates AffiliateGlenn R. CarrollKristina Ho

Stanford GBS19pProductNumber:OD2

United StatesIndustry Setting:nonprofitorganization GrossRevenue: $42million revenuesNumber ofEmployees: 250Case Time Frame

In 1997, the American Heart Association (AHA)Western States Affiliate reorganized to increasefundraising revenues for the nonprofit. Some staffhad been dissatisfied with the new scope andreporting structure of their positions. Roman Bowser,the executive vice president and CEO of the affiliate,made several adjustments to the organizationalstructure to deal with problems that arose with theorganization and had other issues to consider now in

Start: 1997 CaseTime Frame End:2002

2002 related to staff and local communityvolunteers--the lifeblood of the organization.Furthermore, a national AHS task force wasrecommending a reorganization of the AHA alongthe same lines that Bowser had used for his WesternStates Affiliate. Bowser wondered if the AHA couldleverage his organizational model across disparatecommunities nationally and what the impact mightbe on the long-term viability of the AHA. TeachingPurpose: To analyze the reorganization of a companyfrom a more general, geographical organizationaldesign structure to one that is aligned by keyactivities. Also intended to give MBA studentsinsight into the similarities between running anonprofit organization and a for-profit company.

ChapterEnrichmentProgram Teamsat the AmericanRed CrossJeffrey T. Polzer Anita WilliamsWoolley


United Statesnonprofit/humanitarianGross Revenue:$2.5 billionrevenues CaseTime FrameStart: 1998 CaseTime Frame End:2001

Describes a system for structuring, staffing, andleading teams to review local chapters of theAmerican Red Cross. Mirroring professional servicefirms that use teams to serve clients, this systemprovides detailed guidelines that are designed toincrease individual team members' efficiency andthoroughness. The protagonist at Red Crossheadquarters who designed the system, however, isconcerned that the structure she has provided isdetracting from teams' overall creativity andintegration. Highlights the tradeoffs of providingteams with too little structure (e.g., inefficiency,variable quality of team's work products) versus toomuch structure (e.g., team members have littleopportunity to utilize their expertise and creativity).Invites action planning to adjust the structure so thatteams are more integrated and creative, yet stillefficient. Determining an appropriate role for theteam leader is a key issue. Teaching Purpose: Todemonstrate a system for structuring, staffing, andleading teams composed of people who do not knoweach other, yet must ban together quickly to integratetheir individual areas of expertise. To allowdiscussion of how a person who is designing teamscan achieve a balance between providing teams withtoo much structure versus too little structure.

Boston LyricOperaRobert S. KaplanDennis Campbell


Boston, MAIndustry Setting:performing artsGross Revenue:$7 millionrevenues Numberof Employees: 30Case Time FrameStart: 2001 CaseTime Frame End:2001

The Boston Lyric Opera was the fastest growingopera company in North America during the 1990s.Having successfully completed a move to a largerfacility in 1999, the board and general directorrecognize the need to develop a formal strategicplanning and governance process to guide thecompany into the future. Board members, seniormanagers, and artistic leaders use the BalancedScorecard as the focus of a multi-month strategicplanning process that develops a strategy map andobjectives in the four BSC perspectives for threecore strategic themes. This case describes the high-level scorecard development, its cascading down todepartments and individuals, and the directors'interactions, using the Balanced Scorecard, with the

artistic leaders and board of directors. TeachingPurpose: Demonstrates how the Balanced Scorecardis used for strategic planning and performancemanagement in a performing arts organization. Canserve as an introductory class on the BalancedScorecard or as a follow-up session after thescorecard has been introduced in a traditional for-profit setting.

Local InitiativesSupport Corp.James E. Austin ;Kim Slack


United StatesIndustry Setting:nonprofitorganization GrossRevenue: $74million revenuesNumber ofEmployees: 180Case Time FrameStart: 2000 CaseTime Frame End:2000

Local Initiatives Support Corp. (LISC) is a $74million nonprofit social enterprise that combatspoverty by helping community developmentorganizations to build affordable housing and createeconomic development opportunities through public-private partnerships. This case presents the dilemmafor the CEO: whether to grow geographically orprogrammatically. The history of the organization ispresented, along with many challenges that urbanand rural community groups face, such as how toimprove educational opportunities for their citizens.How LISC funds its operations, including thesyndication of low-income housing tax credits,foundations, and private partnerships is described.Teaching Purpose: To expose students to an unusualbusiness model that develops partnerships throughinnovative approaches to raising capital for projectsto assist low-income citizens. Students learn howpublic-private partnerships are developed, howfinancing is arranged for affordable housing, and thechallenge for growth in the community developmentArena.

Maitri AIDSHospiceJ. Gregory Dees ;Beth Anderson

Stanford GSB24pProductNumber:SI10

San Francisco, CAIndustry Setting:health servicesGross Revenue:$3.8 millionrevenues Numberof Employees: 13Case Time FrameStart: 2000 CaseTime Frame End:2000

It's August 2000, and Maitri AIDS Hospice in SanFrancisco is reevaluating its approach tofundraising. In recent years, Maitri has been relyingincreasingly on government, corporate, andfoundation grants. Yet Don Spradlin, Maitri'sassociate director for individual gifts who was hiredin early 1999 to focus on individual donations andspecial events, has made some progress in increasingthe number of individual donors over the past yearand a half. He inaugurated two new earned incomestrategies, both of which have attracted new donorsand positive publicity for Maitri. Nonetheless,individual donations still account for only 8% ofannual operating expenses, and Spradlin is strugglingwith defining his purpose and that of individualdonors within the traditionally grass-rootsorganization.

New Profit, Inc. Manchester not-for-profit Having founded what they called a "venture

James L. HeskettJ. Gregory Dees ;Jaan Elias

Craftsmen'sGuild26pProductNumber:MCG006

Number ofEmployees: 2Case Time FrameStart: 1999 CaseTime Frame End:1999

philanthropy" operated like a hybrid between aventure capital fund and a philanthropy, New Profit'sorganizers are confronted with two issues: 1) the rolethat "investors" would be asked to play in theorganization, and 2) the way in which managementtools such as the Balanced Scorecard could be put towork in the service of the philanthropy. TeachingPurpose: Illustrates the use of for-profit managementtechniques in not-for-profit endeavors.

harvard business school publishing case map for wheelen/hunger: strategic management ... ·...

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