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On the basis of its innovative medical device for treating sleep apnea, CEO Peter Farrell has made Australian-born ResMed a successful global company. But the company is struggling to implement a strategy to expand the device from its focused core market to a much broader market for sufferers of stroke and congestive heart failure-an approach that involves an entirely different business model to sell modified products through new channels. This challenge is exacerbated by an organization in which the key R&D and manufacturing resources are located in Australia while the major markets are in the United States and Europe. At the conclusion of the case, Farrell must decide what action to take on several fronts. Strategically, he must decide whether to continue pursuing this five-year-old market expansion initiative; organizationally, he must decide whether the locus of initiative should be moved from Australia to Germany, the most promising market for the stroke and CHF application; and managerially, he must decide how to deal with the management team that has struggled with this new initiative for so long.
This case tracks the new product development process undertaken by Gauri Nanda, the founder and CEO of Nanda Home, as she ventures to innovate beyond her initial product launches. Having achieved commercial success with her first product Clocky, a roll away alarm clock that owners interacted with in a way they found functionally and emotionally appealing, and after two extensions of the line, Nanda thought it was time to design, develop and market another item that would solve an everyday problem with lifelike charm. She wanted to create a clock that would appeal to children and their parents by facilitating kids' going to sleep and waking up routines. However, there were several factors Nanda had to grapple with before she could commit to final manufacturing design and development. Did she conduct sufficient market research to verify the desire for the 'Clockiddie' concept and the features planned? Were her assumptions about parents and kids valid to suggest the product would be in high demand once launched? Could she keep a premium price point in a consumer market that was trending downward in willingness to pay? Should she cut back on differentiating features to reduce costs and price? Or could the product be engineered under current specifications to an acceptable cost of goods and retail price point? These decisions had to be made soon so that the product could be launched to meet the back to school buying period.
The Entrepreneurial Mindset: 9. Selecting and Executing Your Entry Strategy: Employing an Entrepreneurial Mindsetby Ian C. Macmillan Rita Gunther Mcgrath
The Entrepreneurial Mindset: 7. Selecting Your Competitive Terrain: Employing an Entrepreneurial Mindsetby Ian C. Macmillan Rita Gunther Mcgrath
A large, lucrative power plant is negotiated for construction/operation by an American power company in India's evolving privatized power sector. The process of incorporating the project is captured in this case. The American company will own and operate the plant in India, which will sell power to India.
A consulting firm to institutional investors recommends selling Enron Corp.'s equity short on May 6, 2001, while many sellside analysts are recommending the stock as a "buy."
This case investigates an innovative bond issue by Enron. The coupon on the bond is indexed to the company's credit rating, making it a credit derivative structure.
Add-on selling offers a significant growth opportunity, but resources must be allocated carefully and may include marketing communications, database marketing tools, and outsourcing. Tools included here help evaluate which products provide an add-on opportunity, configure how best to market them, and circumnavigate common pitfalls.
Time-Driven Activity-Based Costing complements important initiatives in business process improvements, such as lean management, supply-chain optimization, and benchmarking. This chapter introduces these promising new extensions of TDABC designed to enhance companies' continuous improvement projects.
In May 2007, the Engstrom Auto Mirrors plant, a relatively small supplier based in Indiana, faces a crisis. The business was in the second year of a downturn. Sales had started to decline in 2005; a year later, plant manager Ron Bent had been forced to lay off more than 20 percent of the work force. Plant productivity was dropping, employee morale was low, and product-quality issues had begun to surface. Relationships with key customers were at risk. Downturns were not new at Engstrom. When the plant had reached a similar crisis point years earlier, the institution of a Scanlon Plan, a company-wide employee incentive program, had proven critical in building morale, increasing productivity and product quality, and leading Engstrom into a turnaround. For several subsequent years, Engstrom workers had received regular Scanlon pay bonuses. But the bonuses had stopped in 2006, and now Ron Bent must determine how to get the plant back on track. Should he revise the Scanlon setup? Remove Scanlon and try another plan? Identify and change other organizational factors that may be sabotaging Scanlon?
Engineer Ownership Through Anticipatory Management: Address Employee and Customer Needs Before They Ariseby James L. Heskett Joe Wheeler W. Earl Sasser Jr.
Organizations that engineer customer and employee ownership learn to predict and respond to customers' needs before they arise. Technology and information systems can be a great help in this endeavor. But just as important are the combined efforts from all parts of the organization-especially marketing, operations, human resources, and information technology-working seamlessly together to help frontline employees deliver value to customers. This chapter demonstrates how employees and customers benefit from the set of concepts at the core of anticipatory management.
Engaging Individuals: People Want to Help--Sustainability Fosters Engagement, Which Fosters Sustainabilityby Adam Werbach
Highly engaged employees outperform their disengaged colleagues by 20 to 28 percent. They are also more likely to stay in their jobs, thereby reducing replacement costs. The statistics in support of investing in the engagement of your employees go on and on, but few companies take the initiative to move beyond the lowest form of engagement: enforcing mere compliance to the rules. In this chapter, sustainability expert Adam Werbach explains that engagement is broader than just an employee's job satisfaction and that developing sustainability at the level of individual employees can foster happiness and corporate sustainability. As an example of the effectiveness of integrating personal and corporate strategic goals, the author looks at the personal sustainability project he helped start with Walmart's employees. This chapter was originally published as chapter 5 of "Strategy for Sustainability: A Business Manifesto."
Engaging Employees in the Company's Profits and Their Own: Why Everybody Wins When You Provide Incentives to Your Low-Level Employeesby Jody Heymann
There is a demonstrated advantage in overall business performance among high-engagement companies compared with their low-engagement counterparts. Yet despite persuasive evidence, companies rarely maximize the potential benefits of employee engagement by encouraging it in workers at all levels of the corporate ladder. It's time to unlock the potential increase in customer satisfaction, commercial sales, and diminished turnover rates that engaging and motivating your low-level employees can bring, even in an economic downturn. This chapter shows you how to design a customized incentive program that will increase the engagement and motivation of employees at all levels. It provides dozens of real-world approaches that can be tailored to almost every budget and business model, from all-expenses-paid all-company vacations to simple public recognition of a job well done. Even if you don't have a large budget, this chapter equips you with ways to maximize your return on investment by using targeted incentive programs for specific areas of improvement. This chapter was originally published as Chapter 7 of "Profit at the Bottom of the Ladder: Creating Value by Investing in Your Workforce."
While the Philippines are located in the vicinity of many of the "Asian Tigers," its development has followed a unique path. The country suffered for years under a dictatorial political regime and protectionist economic policies. Remittances were the largest source of hard currency and the industrial sector was marked by significant concentration and rent seeking. Recent economic reforms have shaken up many sectors of the economy and stimulated rapid economic growth. Conglomerates, which account for a substantial portion of large, organized business activity, need to decide how to adapt to this new environment. Ayala Corporation is one of the largest and most important conglomerates in the Philippines and has been controlled by the Zobel de Ayala family for seven generations. Company leadership must decide whether to alter their strategy in the wake of an election that could dramatically transform the political and business climate of the Philippines in a positive way.
Ayala Corporation is the oldest conglomerate in the Philippines and has been controlled by the Zobel de Ayala family for seven generations. Over the past 25 years, Ayala has evolved from a real estate family business into a highly diversified and professionally managed business group, with a significant number of non-family shareholders. Between the holding company and its four largest subsidiaries, the Ayala group accounts for a quarter of the market capitalization of the Philippines Stock Exchange. Provides data to assess the value created for Ayala's stockholders in the ten years leading up to 2006, when the transition to the seventh generation of the Zobel de Ayala family culminated.
AXA's friendly bid for MONY is contested by activist hedge funds suspicious of management's generous change in control contracts. Votes trade after the record date. AXA financed the bid using an unusual conditionally convertible bond which may have affected incentives to trade and vote MONY shares.
Avon Products announced both a change in its business focus and a reduction of its dividend in June 1988. To offset the likely stock price effect of the dividend reduction, Avon announced at the same time an unusual exchange offer, under which it would take up to 25% of its common stock in exchange for an unusual preferred stock. The case traces the history of Avon from 1979-88. Requires students to evaluate Avon's efforts at diversification in the early 1980s, and to relate that effort to the company's dividend history. Also requires students to evaluate an unusual security. Suitable for first-year students or for a second-year capital markets course.
Many organizations have successfully implemented Balanced Scorecard programs, but not all adopting organizations have succeeded. Several, despite spending considerable effort, and in some cases considerable resources, could not implement the new measurement and management framework. This chapter examines three classes of problems that inhibit the creation of Strategy-Focused Organizations: transitional issues, design issues, and process issues.
If you have identified potential organizational risks, the next step is to determine which potential crises can be avoided. Practicing prevention requires that you recognize risks and know what steps are needed to mitigate them. This chapter helps you prepare a systematic program of crisis prevention and reminds you to look before you leap.
Avoiding Rocks and Hard Places: Your Gross Margin Model--Developing a Gross Margin Model that Will Generate Competitive Advantageby Randy Komisar John Mullins
There are five elements of any company's business model that determine whether a business or organization can survive and prosper: revenue, gross margin, operating expenses, working capital, and investment. If revenue is the lifeblood of a company, gross margin is the safety and security that is equally important. Generating adequate gross margins from your revenue ensures that there's money available to pay the rest of your company's costs. If extra money is generated, it can be used to grow the business or to take that trip to Morocco you've been meaning to take. But if your gross margin is insufficient to cover your other costs, profitability will be elusive. In this chapter, the authors will help you devise a gross margin model that will give your company some financial breathing room by examining the stories of three inspiring companies: eBay, Toyota, and Patagonia. This chapter was originally published as Chapter 4 of "Getting to Plan B: Breaking Through to a Better Business Model."
The CEO of a promising biotech company must decide how to respond to the macro-economic slump of late 2008. He had planned to pursue an aggressive schedule moving the firm's Alzheimer's and Parkinson's disease imaging compounds through clinical trials and into the market. This involved expanding the firm's facilities and headcount and he planned to fund this by taking venture debt. Although clinical trial data is extremely encouraging, questions about raising his next venture round and the overall environment has made him question the wisdom of this plan. This case provides students an opportunity to explore the true cost of venture debt and when it is best used to achieve the goals of all parties--venture capitalists, entrepreneurs, and venture lenders.
In fall 2008, a venture lender must decide whether to make a loan to Avid, a small but promising venture-backed life sciences firm. In reviewing her proposal, Cristy Barnes considers the company's characteristics and how they differ from a typical investment. At the same time, the CEO and the venture capitalist are exploring the true costs and benefits of taking the loan, particularly in the uncertain economic climate of the time.
Select your format based upon: 1) how you want to read your book, and 2) compatibility with your reading tool. To learn more about using Bookshare with your device, visit the Help Center.
Here is an overview of the specialized formats that Bookshare offers its members with links that go to the Help Center for more information.
- Bookshare Web Reader - a customized reading tool for Bookshare members offering all the features of DAISY with a single click of the "Read Now" link.
- DAISY (Digital Accessible Information System) - a digital book file format. DAISY books from Bookshare are DAISY 3.0 text files that work with just about every type of access technology that reads text. Books that contain images will have the download option of ‘DAISY Text with Images’.
- BRF (Braille Refreshable Format) - digital Braille for use with refreshable Braille devices and Braille embossers.
- MP3 (Mpeg audio layer 3) - Provides audio only with no text. These books are created with a text-to-speech engine and spoken by Kendra, a high quality synthetic voice from Ivona. Any device that supports MP3 playback is compatible.
- DAISY Audio - Similar to the Daisy 3.0 option above; however, this option uses MP3 files created with our text-to-speech engine that utilizes Ivonas Kendra voice. This format will work with Daisy Audio compatible players such as Victor Reader Stream and Read2Go.