In late 2011, Jerry Bertram, vice president and general manager of the fire retardant additives business of Huber Engineered Materials (HEM), a division of family-owned J. M…
Abstract
In late 2011, Jerry Bertram, vice president and general manager of the fire retardant additives business of Huber Engineered Materials (HEM), a division of family-owned J. M. Huber Corporation, was preparing to present the potential acquisition of the precipitated alumina trihydrate (PATH) business to the environment, health, and safety committee of Huber's corporate board. He had convinced HEM's leadership of PATH's strategic value to their business and the urgency of the acquisition based on PATH's parent company's movement into Chapter 11 bankruptcy and its plans to close the PATH plant.
Winning board approval posed a major challenge. It was unclear whether the plant would remain operational, because HEM would have to enter a shared-services arrangement with PATH's parent company, which continued to use the site. In addition, acquiring PATH would mean integrating its specialized, unionized labor force into Huber, which had very few union workers. Finally, early due diligence had revealed tens of millions of dollars of potential environmental risk on the site. The last issue was particularly critical, given Huber's generations-long history of respect for the environment, and its executives' and directors' reluctance to take on any business with excessive environmental risk.
This case illustrates in depth the family business values that can promote consideration of an ostensibly unconventional and risky strategic move, and enable executives to push for approval of the same, as backed by comprehensive risk assessment and mitigation plans.
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Jenny Mead, Patricia H. Werhane, R. Edward Freeman and Andrew C. Wicks
This case presents the dilemma of a multinational oil and gas company, ExxonMobil, as it factors in the ethical issues related to the environment and cultural differences in…
Abstract
This case presents the dilemma of a multinational oil and gas company, ExxonMobil, as it factors in the ethical issues related to the environment and cultural differences in deciding whether to proceed with building a pipeline in Chad and Cameroon, two of the poorest and most corrupt developing countries in West Africa. The many players in this project included the World Bank--which cofinanced the project and put restrictions into place that would hopefully prevent pipeline-related government corruption in both Chad and Cameroon--and many environmental and human rights groups that warned of potential disaster. The case also covers the environmental and social analysis of the areas that would be affected by the pipeline.
Ming-Jer Chen, Alexandre Zimath, Andrea Maat, Fabiano Lopes, William Reynolds, Nivaldo Silva, Charles Vaughters and Aaron Watt
The CEO of Embraer, reflects on his company's dramatic ascent to its position as the world's leading regional aircraft manufacturer. Since becoming a private company, Embraer had…
Abstract
The CEO of Embraer, reflects on his company's dramatic ascent to its position as the world's leading regional aircraft manufacturer. Since becoming a private company, Embraer had successfully introduced seven commercial aircraft models to the market, including its latest, the 118-seat EMBRAER 195. Now, he is concerned because Embraer does not know what to expect from Bombardier, Boeing, and Airbus regarding their competitive response to his company's recent attacks on the commercial aircraft market. How would they respond to Embraer's successful launch of its recent family of jets? Would Bombardier really follow through with its launch of the CSeries? Would Airbus and Boeing perceive the latest attacks by Embraer and Bombardier as attacks on its own family of jets? Most importantly, given Embraer's expectations of rivals' future competitive moves, what should it do next to protect its position and influence its competitors' actions?
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Patricia H. Werhane, Andrew C. Wicks, Robert J. Sack, Kristi Severance, Leslie Williams and Jenny Mead
This case details the rise of a hard-disk storage manufacturer in the mid-1980s and the company's demise after executives manipulated the financial information.
Abstract
This case details the rise of a hard-disk storage manufacturer in the mid-1980s and the company's demise after executives manipulated the financial information.
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McEdward Murimbika, Claire Beswick and Richard Thomson
At the end of this case study discussion, students should be able to critically analyse the strategic options for a global small and medium-sized enterprise seeking competitive…
Abstract
Learning outcomes
At the end of this case study discussion, students should be able to critically analyse the strategic options for a global small and medium-sized enterprise seeking competitive advantage in a highly specialised industry, determine the strategic management and operational approaches to introducing a new product line using the case study options as an example, determine the best investment approach for a global operational strategy considering the financial analysis of associated costs and the best form of financial capital/investment in terms of risks and control references and carry out a financial analysis and make evidence-based decisions with respect to addressing how strategic recommendations will affect the future of a firm’s competitive advantage.
Case overview/synopsis
In 2021, Mike Blyth and his business partners, James Pitman and Andrew Pitman, were facing new challenges the business had never faced before. Despite the global upheaval and economic devastation caused by the COVID-19 pandemic, 2020 had been a productive year for the South African small-aircraft manufacturer. Globally, sales of Sling Aircraft’s aeroplanes had been good and the company had just finished a development prototype of a high-wing four-seater. Blyth, Andrew and James felt certain that there was space in the market for a five-seater aeroplane and they were meeting to discuss how to set up the business for further success. The strategic choices required to take the company in the new direction seemed clear and obvious, but it became apparent that they faced a dilemma regarding how to set up or restructure the company for success by exploiting the new opportunity without putting all of the hard work of the past 15 years in jeopardy.
Complexity academic level
This teaching activity is aimed at Master of Business Administration (MBA) and Master of Management.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 11: Strategy.
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Jeanne Brett, Katherine Nelson and Nicole Tilzer
One Acre Fund (OAF) was founded by Andrew Youn in 2005 for the purpose of helping to solve the chronic hunger problem in Africa. The idea is to provide the resources (seed…
Abstract
One Acre Fund (OAF) was founded by Andrew Youn in 2005 for the purpose of helping to solve the chronic hunger problem in Africa. The idea is to provide the resources (seed, fertilizer, and education) necessary for African farm families to feed themselves when their land holdings are one acre or less. The business model of OAF is that of a cooperative: OAF buys resources like seeds and fertilizer in bulk at reduced prices and distributes them to small farmers who otherwise could not afford them. This case concerns the negotiation that OAF's manager of external relations and research, Moises Postigo, conducted to buy fertilizer in the last quarter of 2007. The case provides an opportunity for students to analyze a real-world deal-making negotiation in a developing economy. A number of aspects of the context of the negotiation and the negotiation process itself make for good class discussion. Postigo did a good job preparing for the negotiation, making the case one that emphasizes proper use of negotiation planning and sensitive understanding of the negotiation environment. Some of the elements that make for good discussion include the following: OAF was a new organization, unknown to the five major providers of fertilizer in Kenya. The negotiations were entirely conducted by cell phone. Negotiations went through stages of request for a bid, discussion with multiple bidders, selection of a provider, and negotiation. There were multiple issues, including price delivery and form of payment. Postigo was negotiating in the shadow of the possibility that the Kenyan government would start selling subsidized fertilizer to small farmers.
Analyze the fundamentals of a real-world negotiation; Consider cultural implications for negotiation strategy; Consider negotiation strategy decisions particular to the context: commodity purchase, developing country, etc. Understand how the economic and political context affects negotiations; Understand the importance of relationships in negotiations.
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Sarit Markovich, Anirudh Parasher Malkani, Andrew Tseng and Evan Meagher
Founded in San Francisco in 2009, Square finished 2012 as the darling of Silicon Valley; flush with more than $340 million in funding, the firm had grown to several hundred…
Abstract
Founded in San Francisco in 2009, Square finished 2012 as the darling of Silicon Valley; flush with more than $340 million in funding, the firm had grown to several hundred employees in just three short years. It processed more than $10 billion annually in credit and debit card payments from small business owners that used Square’s smartphone-enabled card swipe device wherever cellular or wireless Internet service was available.
However, Square’s success had attracted new entrants into the mobile payments processing space, both in the United States and abroad, threatening to derail the company’s remarkable trajectory. With its latest financing round valuing the company in excess of $3.4 billion, management and investors were considering which strategies would continue—even accelerate—the company’s growth
Square presents an opportunity for classes in strategy and technology management to contemplate the following:
How can a startup disrupt an established set of incumbents without provoking a harsh competitive response?
How can a growth company in a rapidly changing industry expand beyond the core competency that fueled its initial growth?
Which growth platforms make the most sense for a company in a complicated ecosystem with many players offering divergent solutions?
How can a startup disrupt an established set of incumbents without provoking a harsh competitive response?
How can a growth company in a rapidly changing industry expand beyond the core competency that fueled its initial growth?
Which growth platforms make the most sense for a company in a complicated ecosystem with many players offering divergent solutions?
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Mohanbir Sawhney, Ben Cooley, Jeff Crouse, James Dougan, Jh Johnson, John Johnson, Kumar Venkataraman, Shun Zhang and Andrew Malkin
Chris Barnett, director of global business solutions for Rand McNally, was deliberating how Rand McNally should respond to the emergence of wireless technologies for its…
Abstract
Chris Barnett, director of global business solutions for Rand McNally, was deliberating how Rand McNally should respond to the emergence of wireless technologies for its traditional business of providing static maps and route-planning services. As maps became electronic, interactive, mobile, and enhanced with value-added features, Rand McNally's mapping business was gravely threatened. The opportunities for Rand McNally weren't obvious, and the pace at which wireless technology would disrupt its traditional business was also unclear. Barnett was considering three opportunities: syndicate Rand McNally's brand and mapping content to popular Web sites, become a provider of value-added services to businesses, or focus on automobile manufacturers and try to forge relationships for providing in-car mapping services.
To discuss organizational design, potential responses to disruptive technologies, and market opportunity analysis in order to identify the kind of technology, organizational, and sales force restructuring required to align Rand McNally's organization with the new environment.
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Jamie Jones and Grace Augustine
One Acre Fund (1AF) is a nonprofit organization in rural western Kenya that helps farmers lift themselves out of poverty by providing a bundle of products and services that…
Abstract
One Acre Fund (1AF) is a nonprofit organization in rural western Kenya that helps farmers lift themselves out of poverty by providing a bundle of products and services that support farmers with quality inputs, training on farming techniques, access to credit, and assistance in achieving optimal prices. Since the organization's founding nearly a decade ago, it has grown to serve over 180,000 farm families annually as of July 2014. This high level of penetration into rural Kenya, Rwanda, Burundi, and Tanzania makes 1AF a potential distribution channel for rolling out new products and technologies that could benefit farmers and their families. The organization prides itself on its innovative culture, and always strives to offer new products and methods to its farmers. In 2011 1AF realized that it needed to formalize its innovation process to ensure it was confident in new products before rolling them out across its entire farmer network. It therefore created a robust, multistep evaluation framework to assess new innovations on four criteria: impact, adoptability, simplicity, and operability.
After reading and analyzing the case, students will be able to:
Articulate the importance of understanding the user's needs and perspective throughout the innovation process
Identify key factors for a successful product launch into an existing channel
Employ an assessment framework to analyze the viability of a potential innovation
Design a test pilot for evaluating the launch of new innovations within an organization
Articulate the importance of understanding the user's needs and perspective throughout the innovation process
Identify key factors for a successful product launch into an existing channel
Employ an assessment framework to analyze the viability of a potential innovation
Design a test pilot for evaluating the launch of new innovations within an organization
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Andrea Santiago and Fernando Roxas
This case presents the staffing problem of Manuel Garcia, president of Saint Catherine School (SCS). He needed to incentivize quality teachers to stay with the school but he faced…
Abstract
Synopsis
This case presents the staffing problem of Manuel Garcia, president of Saint Catherine School (SCS). He needed to incentivize quality teachers to stay with the school but he faced three challenges. First, the school is located in a far flung city in Mindanao, Philippines. Second, the city is economically depressed and the parents are price-sensitive. Third, the school is dependent on tuition revenue and collections barely cover school expenditures. Manuel would have to find creative solutions and defend his decision to the teachers and the Board of Trustees.
Research methodology
The researchers relied on primary data to write the case although the Chairman opted that the school name and all the characters names be disguised. The researchers interviewed individually the Chairman of the Board, President, Vice Chancellor for Academics, University Registrar, Finance Director, and Human Resource Manager of the school. The researchers also interviewed faculty members as a group. The information on the exhibits were culled from reports presented by the administrative team.
Relevant courses and levels
The short case is a learning tool for students taking a degree in educational leadership and management. It can be used as part of an integrating module for graduate students. By this time, students would have had prior lessons in financial, trend, and ratio analysis. The case can also be used to reinforce lessons in the following courses at the undergraduate or graduate level: human resource management, data-driven decision making, financial resource management, educational policy, and even communication. Further, the case is suited for school administrators attending executive development programs. Running a school is more than managing the curriculum. There is a business side that has to be considered. This case helps teachers-turned-administrators consider the financial implications of human resource management decisions. In this instance, salaries and benefits.