ERDEM KIMYA, INC.
Birsen Karpak & C. Louise Sellaro, Youngstown State University
Case Objectives and Use
Objectives of this case
are to provide the student with insights concerning similarities and
differences between two, very different countries, the ways in which products
are introduced and markets analyzed and the variables associated with decisions
surrounding business strategy formulation, implementation and control.
This case may be used with a course in Decision Analysis, International Management, Marketing, Small Business Entrepreneurship, or Strategic leadership (capstone course). It has been field-tested in the later at both the graduate and undergraduate levels. The topics addressed in this case cover microenvironment (including international issues), industry (Porter’s model), competitive, decision and market analysis and strategy implementation and control processes.
Case Synopsis
Business Operations for Erdem Kimya, Inc. began in the early 1980s when Erdem Bey retired from his position with the Koc Co.. His experiences with that organization provided an expensive background upon which to build a company that manufactures detergents. Today this manufacturer supplies a broad range of cleaning products to distributors that represent the area in and around Istanbul, Turkey.
During the initial phase of the life cycle, Mr. Targul operated out of the family residence. He mixed products in very rudimentary facilities housed in the basement of the family home. During this period the products that formed the basis of the detergent line were developed. However it was not until Mrs. Targul retired from her position as a Technical Sales and Product Development Manager and joined her husband as a partner in the business that the organization shifted into a more rapid growth stage that developed in the 1990s. Her skill at a chemical formulation strongly contributed to a much broader product line for the company. Their work has resulted in many product innovations and impressive market development.
The efforts of both partners have brought them to the point where growth is presenting them with the need for decisions surrounding a determination of how to change the facilities needed to manufacture their products. In addition, issues of market development and the determination of appropriate strategies to use regarding implementation of the growth that is available to them have become foremost in their thinking.
VALASSIS COMMUNICATIONS’ E-COMMERCE STRATEGY
Deborah R. Ettington, Ph.D., Eastern Michigan University
Case Objectives
and Use
The case was written for use in undergraduate
or graduate Business Policy & Strategy classes, or a specialized e-commerce
strategy class. The teaching objectives are:
·
To
identify the challenges and options associated with a classic focus (niche)
business strategy.
·
To
use a resource-based view to evaluate the company’s performance and recommend
strategic actions.
·
To
identify criteria for evaluating an e-commerce strategy, and to evaluate this
company’s approach to addressing threats and opportunities associated with the
growth of e-commerce.
Case
Synopsis
Valassis Communications Inc. (VCI) was an
$800 million company headquartered in southeastern Michigan. Their primary
business was free-standing inserts (FSIs), coupon booklets inserted in Sunday
newspapers throughout the United States. With growth in Internet usage, Alan
Schultz, new CEO, President and Chairman, had led the company into strategic
investments and alliances to take advantage of opportunities in an online
world. In June 1999 he appointed Suzie Brown to the newly-created position of
Vice President, Internet and E-commerce Services. Schultz and Brown were
pursuing a 3-pronged E-commerce strategy to sell traditional media to online
companies, develop an online presence for coupons and other services, and help
traditional grocery retailers compete online. The company was growing and
profitable, and had been recognized for the fourth consecutive year as one of
Fortune magazine’s “100 Best Companies to Work For.” Yet, the company’s stock
price in the first half of 2000 was down from its 1999 high. Were Schultz and
Brown doing all they could to satisfy customers and investors?
Contact Information: 466 Owen Bldg, Eastern
Michigan University, Ypsilanti, MI 48197; (734) 487-0160; deborah.ettington@emich.edu.
FUTREX, INC.
Robert L. Anderson, College of Charleston
Kathleen P. Anderson, HDS
Case Objectives and Use
After analyzing this company, students will have the opportunity to develop a strategy to secure money to finance the manufacturing of a full-scale model of System 21. The strategy should also include methods of attracting potential customers who will be asked to pay $20-25 million per mile to install this system in their city. Students should also consider what FUTREX will do if it is unable to acquire sufficient capital to finance production of a full-scale prototype.
This case is most appropriate for business policy or finance courses. It could also work well in an advanced marketing class. The case could be used in either graduate or advanced undergraduate courses.
Case Synopsis
FUTREX is a relatively new company located in North Charleston, South Carolina. Its only product is a train that operates on a monobeam sixteen feet above the ground. The company’s new technology allows two cars to travel in opposite directions suspended from the same monobeam. FUTREX calls its train System 21 and has already created and demonstrated a quarter-scale model of the system.
The company is in the process of raising sufficient capital, approximately forty million dollars, to manufacture and install a full-scale System 21 prototype. Once that prototype becomes operational, the company will invite potential customers to Charleston to evaluate the system. To date, FUTREX has raised capital from both public and private sources. Some stock has been sold to individuals associated with the company, and grants and loans from federal sources have been used to build the quarter-scale model.
Contact Person: Robert L. Anderson, School of Business, College of Charleston, Charleston, SC 29424. (843) 953-8108, Fax (843) 953-5697.
THE THREAT OF ELECTRONIC PRODUCTS:
THE CASE OF AMERICANGREETINGS.COM
Raquel Benbunan-Fich[1],
Seton Hall University
Michael Gallivan, Georgia State University
Case Objectives and Use
This case illustrates how the Internet has transformed the greeting card industry and the competitive moves of the major players to compete with the increasing popularity of electronic greetings. The situation presented by the case revolves around how to consolidate the online activities of two different units after the acquisition of Gibson Greetings, the third largest card manufacturer by the second largest card maker (American Greetings).
The situation presented in the case is suitable for upper undergraduate or graduate courses in Strategic Management, Information Technology Management, E-commerce and Technological Innovation.
Case Synopsis
Like their counterparts
in the printing and publishing industry, greeting card companies are suffering
the impacts of increased Internet use and affordability of home computing.
Although the major greeting card manufacturers have been using Information
Technology innovations to improve their internal operations, recent IT developments
and the emergence of electronic greetings are threatening the very foundations
of this industry.
The time frame is early 2000, just after Gibson’s Board accepted the proposed acquisition and while the U.S. Department of Justice was looking into the possible anti-trusts implications of the proposed merger of the second largest greeting card manufacturer with the third largest. American Greetings was preparing to announce its year-end results, namely that yearly sales were down for the first time ever in 93 years. The future of the traditional, paper-based greetings was grim, and the cyber-market for electronic greetings was becoming increasingly competitive.
The decision is focused on the dilemma faced by the recently appointed acting CEO of AmericanGreetings.com, the online subsidiary of American Greetings, about whether (and how) to merge the online operations of both companies. He also had to decide how to manage the minority interests that Gibson Greetings had in E-greetings Network, a San Francisco based start-up, and one of the leaders of electronic greetings.
JC Penney Dilemma
Patricia Aldape, Clara Gonzalez, Luis H. Saldaña
Case Objectives
and Use
This is a decision-oriented case focusing on the long-term goals and objectives of J.C.Penney. This is a field researched case, appropriate as a discussion or written case in Marketing or Strategy courses at both the graduate and undergraduate levels.
Case Synopsis
From it’s humble beginning in 1902 by James Cash Penney, customer service, thrift, shrewd buying practices, and a growing number of talented store managers and associates formed the basis for the organization of JC Penny [JC Penney Positioning, 1998]. Nonetheless, JC Penney has experienced many problems throughout the course of its existence. A few of the troubles they are currently faced with include: (1) the loss of store identity; (2) excess inventory in its Department Store division leading to sharp markdowns and decreased earnings; (3) loss of market share to discount retailers such as Wal-Mart, Gap and Target who are providing similar products at discounted prices; and (4) management pay has not been based on the performance of the company. Additionally, JC Penney Department Stores face competition from other department stores such as Sears, Federated, May’s, Dillard’s, and high-end department stores such as Nieman Marcus [Forest, 1998].
JC Penney has 1,230 department stores in major regional shopping centers in all 50 states and stores in Puerto Rico, Mexico, Brazil and Chile. Department stores make up the core franchise of the company, which are tied to shopping malls. JC Penney has segmented their target market into “Starting Outs” and “Modern Spenders” making up 55% of U.S. households with soft-line merchandise including women’s, men’s, and children’s apparel, accessories, jewelry, leisure lines, and soft home furnishings [JC Penny Annual Report, 1997]. JC Penney offers a combination of eight key private brands such as St. John’s Bay and Arizona Jean Company, supplier-exclusive brands, and national brands through its department stores as well as its catalogs. JC Penney is also planning on expanding its number of stores by more than 800 over the next 10 years while closing more than 40 by June of 2000 [Hoover’s, 1997]. One additional marketing strategy adopted by the company has been the development of two magazines. Noise, targeting teens, and RealYou, targeting working mothers, were designed to help change the image of JC Penney as a source for stylish clothing [Goldbogen, 2000].
Contact Person: Walter Greene, The University of Texas Pan American, 1201 W. University Drive, Edinburg, TX 78539. Phone: (956)381-3338, email: Walter_Greene@hotmail.com.
The H&R Block Service
Center in Kansas City Missouri's
Brush Creek
Corridor
Eric Domsch, MBA Student, University of Missouri - Kansas City
Lawrence Hughes, MBA Student, University Of Chicago
Case Objectives and Use
This case study overviews the various organizations and individuals who were key players and the processes they employed in the successful completion of this fast track project. The case also examines the choice of location, the development of the location, and the construction of the building. The final case section profiles Kansas City and the Kansas City Missouri Brush Creek Corridor.
This case may be used in public administration in an economic development course or in business and society cases in the business administration realm. The case is an analysis case, not a decision-making case. Its purpose is to examine the factors that led to the successful completion of this project through year-end 1999 and to identify the potential challenges the company may yet face.
Case Synopsis
The program for the December 9, 1999 grand opening of the new 85,000 square foot H&R Block Service Center highlighted a number of the leaders of organizations that had been instrumental in the project. They were there to celebrate a signal accomplishment --- a $1.6 billion Fortune 1000 company had become a tenant of an inner-city neighborhood facility constructed and owned by a community development corporation (CDC). The entire project, from concept through distribution of the Request for Proposal (RFP), groundbreaking, and grand opening was completed in a phenomenal thirteen months.
Many agreed that the H&R Block Service Center in the Brush Creek Corridor was a remarkable accomplishment. The collaborative efforts between public, private, not-for-profit, and community organizations were precedent setting. However, even after the grand opening, many wondered what challenges the client and developer might confront in the years to come and whether the process could be replicated so that other similar projects could take place in Kansas City Missouri's inner city.
Contact Person: Eric Domsch, ICIC-KC, Kansas City, MO
Mail: 1734 E. 63rd St., Suite 502, Kansas City, MO 64110
Voice: (816) 333-5445, Fax: (816) 333-5740, email: edomsch@yahoo.com
DEKALB COUNTY PUBLIC HEALTH
(C) PREPARING
FOR INTERNAL TRANSITION
Thomas C. Neil, Ph.D. Jane C. Nelson, Ph.D., MPH
Case Objectives
and Use
Case
C provides an opportunity for the student to experience the dilemma faced by
Drs. Paul Wiesner and Lawrence ‘Dusty’ Sanders, namely “How do you introduce
the rationale for a transforming vision and mission into an organization, with
a history of success, so as to ensure its acceptance?” As a continuation of
Cases A&B, Case C builds upon the initiative Dr. Wiesner had undertaken for
transforming the paradigm of success for DeKalb County Board of Health by
developing the community as a service provider. With Dr. Wiesner having
achieved success within the community, the issue now is how to enact the
strategic change within the organization. The case is suitable for Healthcare
Administration and Business Policy courses, at both the undergraduate and
graduate level, as a module on the initiating of a transformational vision and
mission within an organization.
Case Synopsis
Case C is a continuation of Dr. Paul Wiesner’s effort to prepare the DCBOH for its role in the 21st century. Dr. Wiesner’s efforts in the community have been successful, plus the bond referendum has passed. In addition, legislation, which will spin-off the Mental Health/Mental Retardation division appears headed for enactment. This spin-off will results in a downsizing of the DeKalb County Board of Health from 1400 to 400. Thus, the time and context seems ripe for initiating the internal transformation of the agency. Dr. Wiesner and Dr. Lawrence Sanders, the associate director, must now consider how and in what manner the ‘new’ paradigm of success will be presented to the employees.
Contact Person: Thomas C. Neil, Ph.D.
Clark Atlanta University School of Business
Rm. 201 –A Wright Hall
J. P. Brawley Dr. SW, Atlanta, Georgia 30314
(404) 880-8465 Fax 880-8458 e-mail penguin@mindspring.com
DEKALB COUNTY PUBLIC HEALTH
(D) IMPLEMENTING the
INTERNAL TRANSITION
Thomas C. Neil, Ph.D. and Jane C. Nelson, Ph.D., MPH
Case
Objective and Use
Case
D is used as a follow up to Case (C) PREPARING FOR INTERNAL TRANSITION. The
goal of Case D is to involve the learner in the experiencing of change from two
different perspectives. First, the student explores the situation and issues
from the perspectives of Drs. Wiesner, Director and Sanders, deputy director.
Second, the student assumes the perspective of a Transition Council member, who
is asked to ‘learn about’ change and assist in facilitating the change. Based
on these two perspectives, the learner must analyze and discuss the
consequences of planned strategic change on the internal operations of the
organization. The case is suitable for Healthcare Administration, Business
Policy and Organizational Change courses, at both the undergraduate and
graduate level, as a module on enacting a transformational vision and mission for
an organization.
Case
Synopsis
After successfully implementing his community-oriented philosophy, Dr. Paul Wiesner began the process of transforming DeKalb County Board of Health (DCBOH) into an organization for the 21st century. The internal transformation officially began with the Retreat of January 11-12, 1999. During this retreat, participants from all levels and divisions within DCBOH discussed the existing vision/mission, the future vision/mission, a systems perspective of DCBOH, and issues of concern to the participants. As the next step, Dr. Wiesner decided to facilitate the transformation through the establishment of a Transition Council. The proposed goal of the council was to develop and implement a plan to ensure all employees understand and are involved in the transition process. The Transition Council was composed of representatives from the five community health centers and the areas of information and evaluation, community health promotion, environmental health, and the director’s office. Dr. Lawrence Sanders, deputy director, lead the Transition Council. The proposed goal of the council was to develop and implement a plan to ensure all employees understand and are involved in the transition process. The case presents the student with two experiences. First, she/he is involved in the decision process of what approach to use to resolve the issues that were raised in the retreat. Second, what Drs Wiesner and Sanders actually did is available for discussion.
Contact Person: Thomas C. Neil, Ph.D.
Clark Atlanta University School of Business
Rm. 201 –A Wright Hall
J. P. Brawley Dr. SW, Atlanta, Georgia 30314
(404) 880-8465 Fax 880-8458 e-mail penguin@mindspring.com
CARTER BLOODCARE
Joseph G. Gerard, University of Georgia
Ann B. Buchholtz, University of Georgia
Intended Audience and Case Objectives
This case demonstrates the complexity of the apparently simple and humanitarian non-profit blood banking industry and examines competitive management issues within the non-profit sector. The case provides students the opportunity to analyze the dynamics of the blood banking industry as the industry is faced with growing pressure from buyers, a change in supplier demographics, and movement from a structure of traditionally local and regional monopolies to one of direct competition. The case is especially useful for opening up discussions of managerial decision-making, non-profit or charitable mergers and alliances, and strategic relationship management.
This case is designed for use in strategic management courses mostly at the undergraduate level, but may also be used at the graduate and executive levels.
Case Synopsis
The case is set in August 2000 and focuses on (1) Carter's need to attract and retain blood donors, and (2) the relationship of the fight for donors in relationship to the merger, recent change in competition within the industry, and safety concerns. With all the strategic options available to new president and CEO Sayers, why would it make sense for him to focus on donor issues? Dr. Sayers is faced with the difficult task of simultaneously dealing with the Red Cross and the powerful new rivalry they have brought to the industry, coping with the challenges of a merger nearly two years old, and industry turbulence in the form of technological, cultural, and political macroenvironmental factors.
An AIDS crisis in the 1980s, and stronger government scrutiny of the American Red Cross in the early 1990s, caused the Red Cross to reevaluate their blood-based operations. Top officials at the Red Cross spent $290 million on technological remodeling and upgrades and, with new debt and mounting pressures for cost reductions from the hospitals they serve, decided upon direct competition with other blood bankers. This meant a battle for market share and a market for donors as they first targeted cities and regions occupied by generous donor populations.
The Red Cross was already in the Dallas/Fort Worth area in 1996, forming alliances with local hospitals and working to attract the rolled up sleeves of donors from local blood collection centers. In 1997, the Red Cross set up its own blood collection center in the area. In 1998 the Red Cross held a 4% share of the local market. In 2000 they held almost 5% with Carter holding the remainder. The year 2000 also brought further declines in eligible and willing donors, with increased reductions in sight. The question becomes, what can CEO Sayers possibly do given recent and current trends?
AMY'S BREAD AT CHELSEA MARKET:
A WEB DISCOVERY CASE
Cathleen S. Burns, University of Missouri - Columbia and
Paula S. Weber, St. Cloud State University
Case Objectives
This case encourages students to use their creativity in suggesting strategic alliances that would be appropriate for a bakery entrepreneur in a highly-competitive, large city environment. Students are required to locate information on the Internet to help in the decision-making process. The strategic objectives of an entrepreneurial tenant are contrasted with the strategic objectives of the commercial real estate developer.
Intended Courses
This case would be most appropriate for undergraduate business management, marketing strategy, or entrepreneurship courses. This case makes an ideal ice-breaker for a class that will have a student team component. The student teams may be working on traditional textbook cases or with real-world clients throughout the semester. The team approach to the case allows for the team members to experience the synergy that can occur when students are creative together and experiment with technology.
If the students are going to be assigned a real client to work with at some point in the course, this case would introduce them to an entrepreneur that is more multi-dimensional than you would find in a traditional textbook case. What distinguishes this case from most traditional cases is that the information is not written in the case, but rather is discovered through searching various sources on the Internet.
Case Synopsis
In an earlier case ("Amy's Bread"), Amy Scherber evaluated whether or not she should expand bakery operations into a second location. In this sequel, Amy has made the decision to expand operations into a non-traditional mall setting called "Chelsea Market." Amy has a lucrative long-term lease with the mall developer because she was the initial lessee. Amy is now considering what strategic alliances make sense with other tenants in the mall and other non-mall businesses.
_____________________________________________________________________
Contact Person: Cathleen S. Burns, University of Missouri-Columbia
Mail: 101 Middlebush Hall, Columbia, MO 65211
Voice (573)-884-1790; FAX (573)-882-0365; email: burnscs@missouri.edu
American Crystal Sugar Company
Michael Boland, Gary Brester, and David Barton
Kansas State University and Montana State University
Case Objectives and Use
This case illustrates how changes in trade policy between two countries can have an large impact on a firm’s strategy. A strategy of entry into a market whose future demand growth is based on exports can become very risky especially if trade policy changes. The student is encouraged to
put themselves in the role of a producer-owner and evaluate the firm’s diversification strategy as a means of risk reduction.
The teaching note was written for an undergraduate course in strategic management that is taught as an integrative course as a means of integrating economic concepts with strategic management concepts. In particular, elasticity of demand is very sensitive to increases or decreases in fixed plant capacity.
Case Synopsis
In the early 1990's, Minnesota and North Dakota sugar beet farmers who owned American Crystal Sugar Company (ACSC) began to think about modifying their low cost strategy and diversifying into sweeteners by horizontally integrating across sugar into corn wet milling (e.g., high fructose corn syrup or HFCS). Beverage consumption was increasing rapidly in the United States and the recent implementation of the North American Free Trade Agreement (NAFTA) offered enormous market potential in Mexico where real incomes were rising, and the sugar import quota effectively kept out imports of sugar. Other competitors in the HFCS industry were also planning capacity increases and export demand was a key factor in their decision-making.
The Board directors (elected by the farmers members who owned the cooperative) decided to pursue three alternatives. First, ACSC would invest in a corn wet milling plant to produce HFCS. Second, ACSC would further reduce its costs by investing in a new technology which would further extract sugar from molasses (e.g., molasses desugarization). Third, it would add more capacity and hence, expand its volume. Implementation of these three alternatives would enable ACSC to become a supplier of sugar and sweetener products. The total cost would be over $200 million which would be financed by the sugar beet farmers.
The farmer-owners must consider the implications of these three alternatives in light of similar decisions being made by their competitors.