List of Case Studies on Strategy(Catalogue IV)

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Low-Cost Airlines in India: Tookoff with Pride, Landed in TroublesThe primary objective of the case study isto analyse the sustainability of Low-CostCarrier (LCC) model in Indian aviationindustry. This case would enable a discussionon the factors that are critical for thesuccessful functioning of LCCs; the factorsthat have led the Indian LCCs into trouble;and the sustainability of LCCs in the longrun. Since 2003, when Air Deccan enteredwith its LCC model, Indian aviation wasrevolutionised. While with the increase indemand, opportunities increased, so did thethreats with the increase in competition.In a span of 2 years, the industry witnessed25% annual growth and the entry of fournew players. It was estimated that by 2010,air passengers would increase to 50 million.However, instead of doing well, by 2007Indian LCCs were bleeding. In 2007, AirDeccan merged with Kingfisher Airlineswhile, GoAir moved out of the LCC model,adding business class in its aircraft. WithSpiceJet and IndiGo remaining as the onlyLCCs in India, the case delves into thereasons behind the failure of LCCs in Indiaand enables an interesting discussion onwhat needs to be done to make the LCCmodel successful, given the potentialdemand.

Pedagogical Objectives

• To understand the critical success factorsfor a LCC player globally and in India inparticular

• To analyse the performance of LCCs inIndia and the reasons behind the failureof LCCs in the country

• To explore and evaluate various optionsto make Indian LCCs operationseconomically viable.

Industry Aviation/AirlinesReference No. RTS0189Year of Pub. 2009Teaching Note AvailableStruc.Assig. Available

Keywords

Industry analysis, Low Cost Carriers, LowCost Carriers in India, Air Deccan,Aviation, Business Model, Positioning,CSFs, GoAir, Indigo, SpiceJet, Jet Airways,Kingfisher Airlines

Luxury Industry in Turbulent TimesThis case was primarily written to debateon how to manage troubled times for oneof the highly recession-prone industries –Luxury Industry. It captures theperformance of luxury industry during

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turbulent times – Wars, recessions and USFinancial Crisis (2008). The currentfinancial crisis has had crippling effects onluxury industry. The connotation of luxuryis used in a very generic sense in this casestudy, symbolising all the ultra-premiumand super premium goods. It also enablesan interesting discussion on whether theindustry succumbed to the troubled times’business pressures or did it use those troubledtimes to come out with business and marketinnovations. This case study particularlylooks at what happened to fashion brandsas a result of US Financial Crisis. This casetries to resolve the following questions.Firstly, is luxury industry a recession-proofor a recession-prone industry? What madethe luxury brands to hold back theirexpansion plans, lay off employees andset their minds on improvement of sales?How can luxury brands uphold their growthduring turbulent times? Who can be theirtarget customer and how should be theirpositioning strategy during crisis times?


• To analyse and understand the natureand business dynamics of luxury industryand to debate on whether luxury industryis recession-proof or recession-prone

• To examine the performance of luxurysector in the light of US Financial Crisis(2008)

• To analyse the ways in which luxurybrands can sustain their growth whenindustry is engulfed by economic andfinancial crisis.

Industry Luxury GoodsReference No. RTS0188Year of Pub. 2009Teaching Note AvailableStruc.Assig. Available

Keywords

Luxury Industry, US Financial Crisis,Luxury Brands, Premium Brands, BrandLoyalty, Recession, Purchasing Power,Disposable Income, Brand consciouscustomers, Conspicuous Consumption

Revlon's Revolving Fortunes:Resolving the 'Core' Brand

ChallengesThis case study, while providing a landscapeof the cosmetics industry, offers scope todiscuss the factors that enabled Revlon inbecoming a global brand and why in spiteof being such a renowned and popular brand,it lost out in the global cosmetics industry.It also enables to discuss the measures thatthe new CEO, David Kennedy, should taketo rejuvenate Revlon. “In the factory wemake cosmetics; in the drugstore we sellhope”, said Charles Revson, founder ofRevlon. Guided by this principle, Charleshad strived to promote glamour, fantasy

and excitement through Revlon’s coreproducts, nail colours and lipsticks. Despitethe intense competition posed by playerslike L’Oreal, Estee Lauder and Procter &Gamble, Revlon emerged as a strongcontender, becoming a multi-million dollarcompany in a short span of 6 years.However, trouble started brewing when thereigns of the company were passed on toMichel Bergerac, Charles’ handpickedsuccessor, in 1975. With the company’sfocus shifting from its core beauty businesstowards diversified areas like healthcare,Revlon started succumbing to itscompetitors. Post acquisition in 1985, thecompany witnessed a series of efforts torestore its lost glory. But burdened under adebt-load of $2.9billion, and with themiserable failure of Vital Radiance, its latestproduct launch for women above 50, thedilemmas surrounding Revlon haveincreased greatly.


• To understand cosmetics industry’sdynamics – critical success factors,industry attractiveness, competitors’analysis, etc.

• To analyse the reasons for Revlon losingits market share inspite of being an oldplayer with formidable brands

• To discuss and debate the challengesfacing the new CEO, David Kennedy andto explore all the possible ways andmeans for reviving Revlon.

Industry CosmeticsReference No. RTS0187Year of Pub. 2009Teaching Note AvailableStruc.Assig. Available

Keywords

Brands, Brandings, Positioning, Cosmetics,Consumer behaviour, Revlon, P&G,L'Oreal , Advertising, Marketing

Starbucks in US: Too MuchCoffee Spilling All Over?

What helps retailers decide ‘how much ofa good thing is too much’? This is thedilemma that Starbucks, the leadingretailer, roaster and brand of specialtycoffee is facing. Starbucks, with over14,000 stores and $9.4 billion in salesworldwide, exemplifies how a commoditycan be successfully converted into apremium brand. In about two decades, thecompany has grown from 17 to more than10,000 stores in the US – its largestmarket. However, now it is feeling thestrains of rapid expansion with the samestore sales in the US and the share price ofthe company declining. The situation hasled to the reinstated CEO Howard Schultzruing that in its efforts to grow; Starbuckshas commoditised its brand. In the first

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move at damage control, the company hasannounced that it would be closing 600underperforming stores in the US. Will thatbe sufficient? What else should Schultz doto ensure that the Starbucks brand standssteady?

This case study talks about how Starbucksconverted the world’s second most tradedcommodity into a much sought-afterluxury. The company’s expansion strategyis dealt with in detail emphasising, howand why the company grew at the ratethat it did. The data in the case study enablesstudents to debate Starbucks’ position vis-à-vis its competitors. The changes thatStarbucks made along the growth track arealso mentioned along with how each changeaffected the company. Through the casestudents identify the brand dilemmas thatStarbucks is facing and suggest alternativesfor improvement.

This case is best suited to understand howdifferentiation can increase consumerwillingness to pay premium prices for acommodity item and how over-exposurecan soon erode that same willingness,resulting in commoditisation of the brand.


• To understand the dynamics of thecoffee industry especially the specialtycoffee segment in the US

• To understand how a premium brand canbe created around a commodity item

• To understand Starbucks’ growth strategyand debate whether growth and overexpansion have led to thecommoditisation of the niche brand

• To debate whether premium brands cangrow big and ubiquitous without hurtingtheir brand image

• To understand Starbucks’ position vis-à-vis its competitors and the branddilemmas it faces.

Industry Food and BeveragesReference No. RTS0186Year of Pub. 2009Teaching Note AvailableStruc.Assig. Available

Keywords

Starbucks, Howard Schultz, Business Model,Differentiation, Expansion, Positioning,Founder/Outsider CEO, Branding, BusinessEnvironment, Competition, IndustryDynamics, Succession problems,International Business, Growth Strategiesof Starbucks

Bob Nardelli at Chrysler: Can hedo a Lee Iacocca?

This case study helps in analysing thefactors that led to the downfall of Chrysler.

For one it was leadership in denial. Notwilling to break the set precedents wasanother. The case also helps in debatinghow far was appointing Nardelli correct,given his background and precariousconditions of the company and theindustry. Can he do a Lee Iacocca?

Chrysler enjoyed iconic status at Detroitfor a long time, but surrendered meekly tothe European and Japanese automobilemanufacturers. Guided by a ‘prudent’ logic,the company teamed up with Daimler-Benz but the relation ended on a sour note.The private-equity firm, Cerberus CapitalManagement in a management buyout,took over Chrysler in 2007 for $7.4 billion.The underlying confidence stunnedmarkets, automobile industry experts andanalysts. Cerberus appointed Bob Nardellito clear up the impending mess. BobNardelli, with his GE-background andturnaround experience at Home Depot, haschalked out a master plan to turnaroundChrysler. Lee Iacocca, for sure would bewatching him over his shoulders. Anyadvice for Bob Nardelli?


• To understand and analyse the criticalsuccess factors and strategic inflectionpoints of the auto industry

• To debate on the factors responsible forChrysler's continuous failures

• What should Bob Nardelli do to revivethe fortunes of one of the Detroit’s BigThree?

• To debate whether Bob Nardelli is theright person to lead Chrysler to its(un)known future.

Industry AutomobileReference No. RTS0185Year of Pub. 2009Teaching Note AvailableStruc.Assig. Available

Keywords

Chrysler, Lee Iacocca, Robert Nardelli, USAutomobile Industry, Daimler-Chrysler,Cerberus Capital Management, Big Three,Strategic Inflection Points, Total productConcept, Leadership, Detroit

Burger King's Troubled Times:The CEO's Turnaround Plans

The fast food industry, whichphenomenally grew into a multibillion dollarindustry, was being threatened by multiplefactors like the US recession since 2006,obesity concerns, looming food prices,embargo on commodity exports, etc. Thiscase study elucidates the growth of BurgerKing, world’s No. 2 fast food chain, andthe impact that recession might have hadon the company. While the US fast food

industry was searching for ways and meansto deal with recession, Burger King had theadditional burden of dealing with its internalproblems. Meanwhile, the companywitnessed a change in its leadership for the17th time in 52 years as John Chidsey tookover as the CEO of Burger King in April2006. What strategies should John Chidseyimplement to help the company survivein these difficult times? What impact wouldUS recession have on the fast food industry?Will Burger King be able to survive in theindustry?


• To understand the dynamics of the fastfood industry

• To identify the factors that led to thegrowth of the US fast food industry

• To understand the impact of recessionin the US economy on the performanceof the industry in general and BurgerKing in specific

• To comprehend the challenges faced byBurger King in staying profitable in thisindustry and analyse the possible courseof action for John Chidsey.

Industry Fast Food IndustryReference No. RTS0184Year of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Burger; Burger King; Turnaround StrategiesCase Studies; McDonald's; Fast Food; FastFood Retailing; Obesity;Franchisee;Business Model; Leadership; Brands;Branding; Brand image

Xerox Corporation: A NewCorporate Identity?

Xerox, synonymous with photocopying,evolved as a generic brand. Apart fromproviding document management systems,services, and supplies; it progressed intoconsulting and outsourcing services overthe years. Feeling that the existing brandimage was not portraying a wholesomepicture of its businesses, the companydecided to rebrand. In January 2008, itchanged its logo, emphasising thecustomer-centric approach of thecompany with a stress on innovation. Withthe brand supposed to reflect its presentstature and future prospects, it remainedto be seen whether Xerox’s rebrandingefforts will succeed.


• To analyse how Xerox Corporation(Xerox) had become a leader in itsDocument management Enterprise



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• To analyse the various portfolios ofproducts and services offered by XeroxCorporation

• To analyse the need for the Rebrandingof Xerox Corporation

• To analyse the implications ofRebranding on Xerox

• To analyse whether the rebranding willbe successful.

Industry Document ManagementEnterprise

Reference No. RTS0183CYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Xerox corporation; New Corporateidentity; Xerox global Services;Rebranding; Document ManagementEnterprise; Restructuring / TurnaroundStrategies Case Studies; Generic brand;Photocopying; Anne Mulcahy; Quality andinnovation

Revitalisation of eBay underJohn Donahoe: Will it Work?

Internet auctioneer eBay Inc.hadannounced that John Donahoe would takeover as eBay Chief Executive on March31, 2008 from Meg Whitman who hadbeen at the helm of affairs for 10 yearssince March 1998. John Donahoe said thathis priority is to reinvigorate eBay.Although it still remains the dominantonline auction site, it faces increasedcompetition from other Internet retailerssuch as Amazon.com. The new CEOannounced a series of measures to revivethe company including changing the feestructure, which was at the core of eBay’sbusiness model. He also proposed toimprove trust and safety in itstransactions. The case allows fordiscussion on whether the revitalisationprocess under John Donahoe would bringin the desired results


• To analyse the revenue model of eBay

• To analyse the impacts of the initiativeson eBay under Meg Whitman

• To analyse the revitalisation of eBayunder John Donahoe

• To analyse the future of eBay.

Industry Online AuctioneeringReference No. RTS0182CYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

eBay; John Donahoe; Revitalisation; E-Commerce Business; Meg Whitman; Fraudsciences; Restructuring - TurnaroundStrategies Case Studies; Revenue model;Revenue per unique Visitor; eBay business

Lowe's Companies, Inc: Will itsEPM Strategies Payoff in

Canada?Lowe’s Co., Inc. was a US-based chain ofretail home improvement and appliancestores with 1,252 superstores across 49states in the US. It decided to implementEnterprise Portfolio Management (EPM)in 2001 for better monitoring of its assets.EPM enabled Lowe’s to reevaluate newpriorities against its current investmentmethods. It helped to enhance Lowe’sbusiness from $ 22,111 million in 2001 to$ 43,243 million in 2005. When EPM wasintroduced in Lowe’s, the company wasoperating only in the US. When thecompany intended to enter Canada in2006, it expected to implement the EPMstrategies that it had employed in the US.Banking heavily on its US experience,Lowe’s was confident that it would succeedin Canada, but analysts felt that success inCanada would not be easy. They thoughtthat Home Depot and RONA, the existingplayers in the Canadian homeimprovement market, would not makeLowe’s entry into Canada an easy one. Theyalso felt that an expansion decision solelybacked by duplication of efforts might belike playing with fire.


• To understand Lowe’s expansion inCanada

• To understand Enterprise PortfolioManagement (EPM)

• To understand the competition inCanada

• To analyse whether Lowe’s will besuccessful in Canada.

Industry Home Improvement RetailingReference No. RTS0181BYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Lowe's; Enterprise Portfolio Management;US Home Improvement Industry;Canadian Home Improvement Industry;Expansion; Home Depot; Robert Niblock;Steve Stone; Resource Planning Program;Growth Strategy; Home Centers; RONA;Hardware Stores; Restructuring -Turnaround Strategies Case Study; IT andnon-IT decisions; Planning

GAP's Turnaround Strategies:Winning Back its Customers?

Gap Inc., leading retailer in the US, hadruled the apparel market since the 1960s.Gap offered garments for men, women andchildren, and by the end of 1990s, thecompany was operating in 42 countriesaround the globe. In the early 2000s, dueto the changing fashion trends, Gap startedloosing customers. Gap’s customers movedaway to other youth-oriented retailers. Thisposed a threat to Gap’s market position.To gain its customers back and to sustainits market position, Gap started planninga turnaround under Paul S. Pressler thatincluded brand differentiation, revampingof stores, promotions, and expansions. Asa result, Gap’s sales increased by 7% in2004. However, from 2006 onwards, Gap’ssame-store sales started declining. Analystsfelt that this was because Gap was unableto bring back its customers. To win backcustomers, Gap planned to incorporatestore-expansion strategy as a part if itsturnaround efforts. However analystsopined that it would take time for Gap togain its customers back.


• To understand the changing fashiontrends of the US Apparel industry

• To analyse the turnaround styrategiesof an apparel retailer

• To analyse the importance of customersatisfaction parameter in a businessturnaround.

Industry Apparels and AccessoriesReference No. RTS0180BYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Restructuring / Turnaround Strategies CaseStudy; US Apparel Industry; ConsumerPreferences; Growth of Apparel Industry;Competition; Performance; TurnaroundStrategy; Store Sales; Millard Drexler; PaulS. Pressler; Customer satisfactionparameter; price comparison; branddifferenttiation; Brand personality;Revamping stores

Yum! Brand's TurnaroundStrategy

Yum! Brands, Inc. (Yum!), one of theworld’s largest restaurant companies basedin Louisville, Kentucky, operated in morethan 34,000 restaurants across 100countries. In 2006, Yum! generated morethan $9.5 billion in total revenues whichincluded sales and franchise fees. But in2007, disappointing performance in its USdivision, forced Yum! to re-look at itsbusiness. Changing consumers’ tastes with

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increasing awareness towards health andobesity problems affected Yum!’sperformance in the US. To turnaround itsUS business, it decided to followMcDonald’s business model. It decided tointroduce new products like beverages andbreakfast meals; and expanded value menusto offer healthier products in KFC, TacoBell and Pizza Hut in the US. But, byfollowing its competitor’s business modelwould it be able to turnaround its US businessdivision, needs to be seen.


• To understand the dynamics of the USQuick Service Restaurant industry

• Changing consumer tastes andpreferences and its impact on the fastfood business

• Implications of changing business modelfor Yum! Brands

• To evaluate the importance of valueproposition in fast food industry.

Industry Quick Service RestaurantsReference No. RTS0179AYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Turnaround Strategies Case Study; Fast foodindustry; US Quick service restaurantindustry; Obesity; McDonald’s Changingconsumer taste; Value proposition in foodindustry; Value menus; Healthier products;Full-service restaurants Independentrestaurants; Breakfast menus; Premiumcoffee Healthy foods; Trans-fats

Indian Tourism Turnaround: TheSuccess Story of 'Incredible

India' CampaignIndia, one of the Asia’s most populartourism destinations lured foreign touriststhrough its hills, rivers, plateaus, plains,beaches, deltas and deserts, many luxurioushotels and resorts, picturesque nature sites,and the architectural wealth. Indiadelivered novelty in various categories oftourism like history tourism, adventuretourism, medical tourism like Ayurveda andother forms of Indian medications, spiritualtourism, business travels, holiday seekers,beach tourism, etc. The liberalisation ofIndian economy in the 1990s attractedinvestment in the tourism sector andinfrastructure development fostered theinternational tourist flow to India. But,between 2001 and 2002, the Indian tourismsector witnessed fall in foreign touristarrivals due to the 9/11 incident in the US,Afghanistan war, and India-Pak bordertension. To boost the tourists’ flow,Ministry of Tourism (MoT), launched

‘Incredible India’ in 2002 – a campaignaimed at building brand image of India inglobal tourism industry and to increaseforeign exchange earnings. The tourismindustry witnessed positive results of thiscampaign and now enjoying the fruits of‘Incredible India’ campaign.


• Growth of Indian Tourism Industry

• The dynamics of tourism industry inIndia

• To analyse the branding and positioningstrategies by the Indian government

• To understand the reasons behind thesuccess of ‘Incredible India’ campaign.

Industry Tourism IndustryReference No. RTS0178AYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Indian Tourism Industry; India TourismDevelopment Board; Tourism Industry;Tourism Promotion Policy; InboundTourism; The Ministry of Tourism; Touristarrivals in India; The ‘Incredible India'Campaign; Rural Tourism and AdventureTourism; Print and TV Campaign;Restructuring - Turnaround Strategies CaseStudy; The Medium Term Strategy; FiveYear Plan; Foreign Turists to India

New Fiat 500: Revival of aHeritage Brand

Fiat Auto, a leading player in the automobileindustry, has lost market share andsustained losses between 1999 till 2003.Its new strategy enabled Fiat to turnaroundits auto business and return to profitabilityin the fourth quarter of 2006. But thecompany feared a reversal of fortunes.Keeping in mind the changing markettrends and consumer behavior, Fiat decidedto broaden its product portfolio. It decidedto relaunch its heritage brand ‘Fiat 500’.In addition to increasing its market share,the relaunch was also expected to secureits turnaround.


• To analyse and discuss heritage branding

• To discuss Fiat’s decline and its return toprofitability in auto industry

• To discuss the challenges faced by Fiatin the process of reviving its Fiat 500brand

• To understand the role of promotionand advertising while relaunching anerstwhile brand

• To analyse whether Fiat can restore thepast glory by introducing Fiat 500 amidstcompetition from the existing playerslike Toyota, Volkswagen, etc and adaptto the changing trends in the automobileindustry.

Industry Automobile IndustryReference No. RTS0177PYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Fiat 500; Heritage Brand; Branding; Fiat’sDecline; Fiat’s Turnaround; BrandNostalgia; Brand Revival; AutomobileIndustry; Sergio Marchionne;Restructuring - Turnaround Strategies CaseStudy; New Product Launch

Sanofi-Aventis: CEO Gerard LeFur's Formula for Change

Sanofi-Aventis, the world’s third biggestpharmaceutical company, focuses mainlyon prescription drugs and human vaccines.Ever since the company’s establishmentin 1973, the company had been followingthe inorganic growth strategy to mark itspresence worldwide. Until recently, Sanofiremained reserved and never disclosed thedetails of the group’s portfolio ofexperimental drugs, thereby raisingshareholders’ concerns. In addition, thecompany is uptight with growingcompetition from generic drug-makers. InJanuary 2007, Sanofi had a majormanagement reshuffle wherein, thecompany’s longest serving chairman andCEO Jean-Francois Dehecq, relinquishedhis CEO position to Gerard Le Fur whileretaining chairmanship. Amid thissituation, it remains to be seen whether LeFur can sail the company through thesetroubled times.


The case is structured to help the studentsunderstand:

• Critical success factors in thepharmaceutical industry

• Value chain of the pharma industry

• Trends and challenges facing globalpharmaceutical industry

• Sanofi-Aventis’ new CEO Gerard Le Fur’sinitiatives

• Promoting a company insider vsappointing an outsider.

Industry Pharmaceutical IndustryReference No. RTS0176Year of Pub. 2008Teaching Note AvailableStruc.Assig. Available


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Keywords

Global Pharmaceutical Industry; CriticalSuccess Factors; Value Chain of thePharma industry, Acquisitions and JointVentures, Trends and Challenges in thePharma Industry; Product LifecycleManagement; Jean-François Dehecq;Organisational TransformationalStrategies; Restructuring - TurnaroundStrategies Case Study; LeadingTransformation; Pfizer; Glaxosmithline;Novartis; Clinical Research Outsourcing(CRO); Blockbuster Drugs; Successor’sDilemma; Generic Drugmakers; FDARegulations

Private Equity Companies: TheStrategic Shift

Kohlberg Kravis Roberts & Co. (KKR)and Texas Pacific Group, one of theleading private equity (PE) firmsannounced a $45 billion acquisition ofTexan Energy Utility (TXU), an energygeneration company in February 2007.In the past PE firms followed a strategyto buy loss-making businesses and sellthem after exercising management andfinancial restructuring. Theannouncement made by KKR to produceenergy without damaging theenvironment signaled a strategic shift inhow private equity businesses operated.The case discusses the challenges raisedby the environmental groups and thedynamics of private equity business as awhole. It also attempts to trace privateequity companies' strategic shift inacquiring businesses.


• To understand dynamics of privateequity business

• To evaluate the growth strategy of KKR

• To understand shift in strategy of privateequity companies and it impact.

Industry Private EquityReference No. RTS0175AYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Private Equity; Mergers and Acquisitions;Leveraged buy-outs; Kohlberg KravisRoberts & Co. (KKR); Texan energy utility(TXU); Blackstone Group; Carlyle Group;Newbridge Group; Restructuring -Turnaround Strategies Case Study; PrivateEquity Industry Guidelines Group; Securitiesand Exchange Commission; Barbarians atthe Gate; Dynamics of Private EquityBusiness

Hybrid Digital Radio, an Upgradeto Struggling Terrestrial Radio:Will it Bring Back the Listeners?

In 2004, the iBiquity CommunicationsCorporation developed a new digitalformat for the terrestrial radio operators,which was called HD Radio with a view tobring back listeners to the radio. The HDradio alliance was created to market andattract listeners from the satellite andInternet radio and devices like iPods.Inspite of the massive marketing effortsthe technology which needed radio receiverfor its broadcast did not pick up among theconsumers even 3 years after its launch.The Alliance members announced a newmarketing campaign of $250 million in2007 and were optimistic about revivingthis new technology. But industry criticsand analysts doubted if HD Radio was whatthe consumers really wanted and whetherit had the potential to make the terrestrialradio's days greener.


• To understand the reasons for the declinein popularity of terrestrial Radio

• To understand the new forms of digitalmusic media

• To understand the consumer preferencesin the music industry

• To analyse the reasons for lack ofacceptance of HD Radio by consumers

• To analyse whether HD Radio is astrategically correct product to enticecustomers.

Industry Radio Broadcasting andProgramming

Reference No. RTS0174BYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

HD Radio; Terrestrial Radio; SatelliteRadio; Internet Radio; MP3 players; iPod;Marketing Myopia; Strategic InflectionPoints; Industry Change; ChangingConsumer habits and preferences; Digitalmedia; Music; Restructuring - TurnaroundStrategies Case Study; On-demand forces;iBiquity

Circuit City's TurnaroundStrategies: Can the ex Numero

Uno Bounce Back?In the 1980s, Circuit City was the leadingretailer in the US consumer electronicsmarket. But by the mid 1990s Circuit Cityhad lost its market position to Best Buy.To regain its position the company startedits turnaround plan that included upgradingmerchandising, improving its advertising

and promotion, organising training andcutting costs. Despite this, Circuit City wasunable to gain back its position. To combatBest Buy and to regain its top position inthe US consumer electronics market,Circuit City followed Best Buy's strategyof self-service store format and recruited anon-commissioned sales force. In 2005,though Circuit City witnessed initial salesgrowth, analysts were sceptical of long-term growth. Some of the industry observersopined that Circuit City lost productivesales men during this exercise where assome others felt that Circuit City was rightin doing so and felt that Circuit City shouldalso adopt Best Buy's strategy of store-segmentation. By the end of 2006 thecompany opened 59 stores in the differentlocations of the US and also planned toopen 20 stores by 2007. But the questionremained - Would imitating Best Buy helpCircuit City in its turnaround effort and togain back its position?


• To analyse the competitive strategiesof the US consumer electronics market

• To analyse the turnaround strategiesadopted by Circuit City

• To analyse how replication of acompetitor's business strategy can be usedas a tool for growth.

Industry Consumer Electronics andAppliances Retail

Reference No. RTS0173BYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Circuit City; Restructuring - TurnaroundStrategies Case Study; Best Buy; self-servicestore format; non-commissioned salespeople; advertising; training; Wal-Mart;consumer behavior; hourly wage; businessstrategy; dynamics of consumer electronicsmarket; Circuit City vs Best Buy;competitive differentiation

European Railways RevampingModel to Combat Low-Cost

Airlines: Will it Succeed?Since 1990s, European Railways werefacing stiff competition from discountairlines. While the Low-cost airlinesachieved strong growth in all areas ofEurope, the European Railways' marketshare declined from 8% in 2003 to 7.5%in 2004. In order to compete with BudgetAirlines, European Railways reduced fares.However, low-cost carriers with a marketshare of 16.3% in 2006 still maintained alead. To beat the competition, EuropeanRailways decided to form a new model ofpartnership - including seven European

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Rail companies and their subsidiaries -named 'Railteam'. The Rail team initiallyplanned to cover more than 100 cities andgrow to 400 destinations covering 15000km by 2020. The alliance aimed to reach50% share of the travel market by 2020.However analysts were skeptical about thesuccess of European Railways' new modelover Low-cost airlines in Europe.


• To understand the operating structureof European Railways

• To understand the stiff competitionfaced by European Railways to discountairlines

• To understand the competitive strategyadopted by European railways.

Industry TransportReference No. RTS0172BYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

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European Railways; Low-cost Airlines;operating cost structure; Restructuring /Turnaround Strategies Case Study;Operating cost analysis; Railwaysvs budgetairlines; yield management system;Railteam; airline-style alliance; railnetwork; budget airlines; Eurostar; YieldManagement system ingradients;marketing; business model; Reformation

Air Deccan C: The Captain vsThe Baron

Third in the 'Air Deccan series', this casestudy explores Kingfisher Airlines'capabilities - in terms of financial cloutand operational efficiencies - to revive AirDeccan. It highlights the possibilities ofsynergising two divergent airlines - one thatis positioned as a premium value carrierand the other that relies on significantlylow fares and no-frills. Given the powerand business experience of the UB group,participants can assess whether Air Deccanwill exist as itself or will UB group's boss,Vijay Mallya integrate the ailing airline intohis own. The case plays out a few 'emotive'and 'economic' issues in giving a newidentity to Air Deccan - from Air Deccan'sperspective as well as Kingfisher's.


• To discuss Kingfisher Airlines' businessdecisions about Air Deccan's revival

• To analyse the exclusive benefits of AirDeccan's equity dilution, for it as well asfor Kingfisher Airlines

• To assess whether Air Deccan shouldcontinue operations in its own name ormerge with Kingfisher Airlines.

Industry AviationReference No. RTS0171Year of Pub. 2007Teaching Note AvailableStruc.Assig. Available

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LCC in the Indian market; Aircraftmanufacturers; Airbus and ATR; Integrationof two different identities; Restructuring /Turnaround Strategies Case Study; RevivalStrategies; Rebranding Strategies;Competition; Operational efficiencies;Consolidation; Low Cost Model; BusinessDesign

Maruti-Suzuki's Zen: Will theLegacy Last?

Maruti Udyog Ltd (Maruti) is one of India'sleading automobile manufacturers in thecar segment, with a market share of over60% in the car industry in the country.The term ‘Maruti’, in popular Indianculture, is associated with the Maruti 800model. Maruti’s product portfolio rangefrom Zen, Alto, Wagon R, Gypsy, Esteem/Swift, Versa and the Baleno, all backed bythe inherent value proposition of highquality, fuel efficiency, and compared withthe competition, low cost. Maruti Suzukirank highest in customer satisfaction inIndia for a Seventh Consecutive Year, andalso ranked at 91 in the Forbes' list of theWorld's Most Respected Companies.

Zen was the second largest selling model ofMaruti. Despite being the leader in B2segment, Zen was losing market share inIndia due to increasing competition. Evenafter its re-launch, Zen sales continued todecline. To reverse the declining sales trendin the competitive market, the companydecided to phase out Zen and launch a newversion. The case talks about initiativetaken by Maruti to reverse its declining sale.


• The automobile industry in India and itslocal players

• Product life cycle of Maruti Suzukis Zen

• Exit of Maruti Suzukis Zen

• Reincarnation of Maruti Suzuki Zen.

Industry AutomobileReference No. RTS0170PYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

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Car industry; B2 segment; Sales; Hyundai;Re-launch; New design; Speed; Estillo;Tarun Tahiliani; Restructuring /Turnaround Strategies Case Study; Antibraking system; Attractive look; Wagon-R; Alto; New model; competition

Ford's New Turnaround Strategy:Will it Work?

In 2000s, Ford Motor Company’s (Ford)US market share has been steadily declining.Since 2002, it has unsuccessfully launchedtwo restructuring plans to reverse thedeclining trend. In September 2006, in thesupervision of Fords new CEO, AlanMulally, the third restructuring plan hasbeen introduced. The case outlines thedynamics of the US automobile industry,its players, Fords early growth strategy andthe reason behind its decline. It also analysesthe third restructuring plan of thecompany.


• To analyse dynamics of US AutomobileIndustry

• To analyse causes for decline of Ford inAutomobile Industry

• To analyse the third restructuring planof the Ford Company.

Industry AutomobileReference No. RTS0169PYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Turnaround strategy; Automobile industry;Alan Mulally; restructuring plan; USautomobile; growth strategy; Sport UtilityVehicles; fuel efficiency; Restructuring /Turnaround Strategies Case Study;consumer preferences; competing GM;Toyota; productivity; competitive costs

British Broadcasting Corporation:Grim Future Ahead?

The British Broadcasting Corporation,once the pioneer in the broadcastingindustry took a step-down in the wake ofintense competition and technologicalchange. BBC’s licencing practice wassubject to fierce debate among the publicas well as among politicians. Deregulationof the broadcasting industry opened thegates to a number of competitors whichshook BBC’s position as the No: 1broadcaster in the world. The technologyshift from analog to digital also threw upnew challenges to BBC. Decreasingviewership along with its outdated businessmodel drew blood from BBC bottom line.This case discusses the problems that BBCfaced in the 21st century and also theinitiatives taken by BBC to fight back thecompetition.


• To discuss the reasons behind BBC’sdownfall.





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• To discuss the technological changes thathappened in the UK broadcast industry.

Industry Broadcasting IndustryReference No. RTS0168BYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

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BBC; Royal charter; Technology; CNN;Restructuring / Turnaround Strategies CaseStudy; CableTV; Licence fee

Delta Air Lines: Flying out ofBankruptcy?

Delta Air Lines Inc., one of the leadingcarriers in the US, filed for Chapter 11bankruptcy protection on September 14th2005. Delta’s bankruptcy was ascribed to avariety of factors ranging from September11th 2001 terrorist attack on the US tosoaring fuel prices. Delta, which hadsurvived an initial takeover bid by USAirways earlier in November 2006, wasoptimistic about its future as an independentairline. On January 31st 2007, US Airwayswithdrew its subsequent $10.2 billion bidto take over Delta Airlines, after it failedto convince Delta’s creditors. US Airways’offer for Delta had been viewed by analystsas a deal that would set the tone for airlineindustry consolidation in the US. What arethe implications of Delta’s bankruptcy onthe US airline industry? What does thefuture hold for Delta Airlines? Will therestructuring efforts of Delta be successful?Will Delta emerge out of bankruptcy andretain its independence?


• To understand the contribution of USairline industry to the overall economicperformance of the country

• To provide an overview of the US airlineindustry and the competitive scenario

• To discuss about various factors thatcontributed to Delta Airlines’ bankruptcy

• To discuss how Delta is trying to emergeout of bankruptcy and it’s restructuringplans

• To analyse the scope and limitations ofconsolidation in the US airline industry.

Industry Airline IndustryReference No. RTS0167BYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

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Delta Air Lines; Airline Industry; LegacyCarriers; Network Carriers; Bankruptcy;Turnaround Strategies; Chapter 11;Operating Cost; CASM; Deregulation;

Business Model; US Airways; Restructuring/ Turnaround Strategies Case Study; GeraldGrinstein; LCCs

Boeing: Back on the Track?The year 2006 had been a record-breakingyear for Boeing Company which was alsoa year to remember as this accomplishmentcame after several setbacks since 2003which resulted in Boeing losing its leadershipto Airbus. The company received a recordnumber of airplane orders, which surpassedthat of its rival – Airbus. Industry observersfelt that several factors led to Boeing’ssuccess. One of the reasons cited was themanagement strife and other problems atAirbus. Other reasons that contributed toBoeing’s increase in orders includedBoeing’s product strategy and increasingfuel prices which made Boeing’s fuel-efficient airplanes desirable. With atriumphant 2006, it remains to be seen ifBoeing would regain its lost leadership andsustain the same.


• The case deals with the growth strategiesof Boeing company

• The case analyses the challenges andproblems encountered by Boeing

• The case examines the competitivestand-off between Boeing and Airbus

• The case analyses the differentrestructuring strategies of Boeing tocombat its challenges

• The case deals with the product strategyof Boeing

• It analyses the various factors behindBoeing’s success

• It analyses whether the events of theyear 2006 would help Boeing lead themarket.

Industry Aircraft ManufacturingReference No. RTS0166BYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

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Boeing;Airbus; Dreamliner; B-787;Commercial Aircraft; Miltray Aircraft;Restructuring / Turnaround Strategies CaseStudy; US Air Force; McDonnell Douglas;Defense; Lockheed Martin; Pentagon;Plastic Composites; Air Freight; Tankers;FAA

Wal-Mart in Japan: Survival andFuture of its Japanese Business

Localisation is the buzz word for asuccessful global business. Japan’s retail

market, the second largest in the world,accounts for ¥130 trillion. It ischaracterised by a unique consumerbehaviour, distribution system and increasedretailer density. These challenges hamperthe success of global retailers who tried totransplant the business model from theirparent country into the Japanese market.Analysts attribute that lack of localisationand adoption of the ‘cookie-cutter’approach in foreign markets as the mainreason for their failure. Wal-Mart, theworld’s largest retailer has been daunted bythe five consecutive years of losses sinceits entry into Japan in 2002.It enteredJapan by acquiring Seiyu, a strugglingJapanese retail chain. Despiteimplementing many strategies, Wal-Martwas not able to successfully execute its USmodel in Japan. By mid-2007, Wal-Marthad invested $1 billion in Japan and hadmade Seiyu its wholly owned subsidiary, byacquiring a 53% stake. The year 2007 wasrelatively better. The net loss for the firstquarter of 2007 had declined to ¥4.4 billioncompared to the net loss of ¥52.8 billionin the first quarter of the previous year. Inspite of this positive trend, analysts suggestthat Wal-Mart should sell Seiyu and giveup its Japanese operations. Wal-Marthowever is committed to Japan.


• To analyse the retail industry scenarioin Japan

• To analyse Wal-Mart’s successful USretail model

• To compare and contrast the retailmarket characteristics in developedeconomies, viz. Japan and the US

• To analyse the strategies to be adoptedby Wal-Mart for survival and growth inJapan.

Industry RetailingReference No. RTS0165CYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

Keywords

Wal-Mart; Japan; Retail; Retail MarketScenario in Japan; Keiretsu; Seiyu;Consumer Behaviour; Restructuring /Turnaround Strategies Case Study; JapaneseDistribution System; Developed Economy;Business Environment; Survival Strategies;Localisation Strategies; Revenue Models;Strategy; Economics

Heineken's Amstel Light Strugglesto Recoup its No. 1 Position in the

US: Would its Strategy Work?In the 1980s, with the increasingconsumption of light beer in the USalcoholic beverage market, Heineken N.V.,

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one of the world’s largest breweries inAmsterdam, introduced Amstel Light in theUS. Amstel Light was the first importedlight beer in the US beer industry. By themid 1990s, Amstel Light contributed 75%of the total growth of Heineken’s importsegment in the US and became the No.1importer in the US beer market. TheHispanic community grew and theydemanded ‘high quality beer’ for which theywere willing to pay, ‘high prices’ encouragedMexican beer (Corona Light and CoronaExtra Light) to enter and subsequentlycapture the US light beer market. By 2005,Corona Extra led the market whereasHeineken’s Amstel Light had slipped tothe No. 7 position in the US market forimported beer. To reclaim its No.1 position,the company launched a new light beercalled ‘Heineken Premium Light Lager.’In addition to this, the company also triedto promote its Amstel Light throughintensive promotional strategies.


• The case deals with the differentdimensions of the beer industry.

• It analyses the competitive strategiesof US beer category

• It deals with the importance ofadvertising and promotional strategy inalcoholic beverage industry.

• The case also analyses the concept ofbrand extension in beer industry.

Industry Beverage IndustryReference No. RTS0164BYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

Keywords

Heineken's Premium Light; US BeverageIndustry; Heineken's Foray in the US; Thegrowth of Light beers; Amstel Light;Restructuring / Turnaround Strategies CaseStudy; Hispanic Community; Competitionscenario in the US beer market; Coronabeers; Corona Light; Corona Extra Light;Promotional Campaign; Advertisingstrategy; Brand Extension; Cannibalization

Automobili Lamborghini: Growthafter Bankruptcy

Though Lamborghini began outstandinglywell in 1964, the leading player in marketfor sports cars, witnessed numerous ups anddowns over the years. From the early 1970suntil 1998 the company’sunderperformance resulted in change ofownership six times in a span of 16 years.And the company went bankrupt for fouryears between 1978 and 1981. Followingthe bankruptcy, in 1998, Audi AG, asubsidiary of Volkswagen became the owner

of Lamborghini. Under the leadership ofAudi, Lamborghini oversaw increasedprofits with the highest sales record in thehistory of the company in 2006. In 2007,Lamborghini is all set to outshine itsimmediate rival Ferrari, which had widerpresence worldwide and made better salesthan Lamborghini. The company isformulating various strategies to make itspresence felt in different corners of theglobe other than the US, which remains itsmost important market. However, theanalysts believe that Lamborghini needsto balance higher sales with brandexclusivity.


• The case discusses Lamborghini’sevolution over the years under changingowners

• The case comprehends Lamborghini’sinitiatives to widen and strengthen itsbrand awareness

• It analyses Lamborghini’s strategies tooutrival Ferrari

• It analyses whether Lamborghini wouldretain its luxury brand image in its raceto increase sales.

Industry Luxury CarsReference No. RTS0163BYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

Keywords

Automobili Lamborghini; LuxuryPassenger Cars; Brand Exclusivity;Bankruptcy; Volkswagan's Audi; Versace;Asus; Merchandising; Prestige Cars; Ferrari;Restructuring / Turnaround Strategies CaseStudy; Barnd awareness; Higher Sales;China; India; Lamborghini

Tupperware Re-igniting GrowthIn 2005, the $1.2 billion TupperwareCorporation (Tupperware) is one of theworld's leading direct sellers, supplyingpremium food storage, preparation andserving items to consumers in more than100 countries. Its products also includekitchen gadgets, children’s educationaltoys, microwave products, gift items, beautyand skin care products. Competitors likeGladeware and Rubbermaid wereintroducing low priced products andcapturing market. To meet the marketchallenges, Tupperware is introducing newproducts, advertising through celebritiesand launching several initiatives torejuvenate its bottomline. The casediscusses how Tupperware changes itsbusiness model to meet threats in themarket.


• The business model of Tupperware

• How changing trends in the purchasinghabits of customers affect a company’sgrowth

• Tupperware’s strategy to meet theincreasing competion and to regain itslost market.

Industry Food & BeverageReference No. RTS0162PYear of Pub. 2007Teaching Note AvailableStruc.Assig. Not Available

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Direct selling; Premium Food storageproducts; Competition; Life timeGuarantee products; Research anddevelopment techniques; Brownie Wise;Restructuring / Turnaround Strategies CaseStudy; Party Plan; Advertisements; Retailchannel; Premium segment; Online selling;Kiosks; Target marketing; Incentive tosales force; Changing business model;Celebrity Advertising; Extending productline

Redefining SaksSaks Inc was a $6.4 billion company and aleading player in the luxury retailingbusiness with 359 department stores across38 states in the United States. It operatedthrough two business segments - SaksDepartment Store Group (SDSG) and SaksFifth Avenue Enterprises (SFAE). SDSGoperated branded stores like Younkers,Parisian, Herberger’s, Carson Pirie Scott(Carson’s), Bergner’s and Boston Store, andClub Libby Lu mall-based specialty stores.SFAE consisted of ‘Saks Fifth Avenue(SFA)’ luxury department stores and ‘Off5th’, a discount designer clothing store.

Since 2000, Saks sales stagnated and itsoperating margins fell from 4% in 2004 to2% in 2005. The company tried toconsolidate its position and reinvent itself.This case study discusses the strategiesadopted by Saks to transform itself.


• The case discusses strategies adopted bySaks to make over its losses and marketposition

• The case evaluates Saks marketingstrategies, merchandising strategy andadvertising campaigns to maintain itsbrand value

• The case also explores the challengesfaced by Saks to improve its image andmaintain its reputation for high qualityin the competitive market.




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Industry RetailReference No. RTS0161PYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Saks Inc.; Saks Department Store group;Saks Fifth Avenue; Restructuring /Turnaround Strategies Case Study; Off 5thStores; British American TobaccoCompany; Investcorp International Inc.;Gap; JC Penny; Abercrombie & Fitch;Bloomingdale; Profitt; Versace; HelmuttLang; Neiman Marcus; Nordstrom

Kodak's Turnaround StrategiesKodak was a $8 billion company and aleading player in the imaging industry. Ithad four main businesses -- commercialdigital imaging, film and photofinishing,health care and graphic communications.Its digital business offered digital cameras,software for organising and manipulatingpictures, printer docks, and the Web-basedEasyShare Gallery for buying and storingphotos online. Since the 1990s Kodak’sfilm-based business was a major revenuegenerator for Kodak. However, with theadvent of digital photography, its basedbusiness suffered losses. This case studydiscusses Kodak’s transition strategy fromanalog to digital technology and itsattempts to regain market share.


• The case outlines Kodak’s rise and itsproduct portfolio in imaging industry

• The case discusses Kodak’s new productlaunches and comparative performanceof these products against the film basedproducts

• It discusses the changeover strategy fromanalog to digital technology and itsattempts to recapture the market share.

Industry ImagingReference No. RTS0160PYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

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Kodak; EasyShare; Brownie camera; FujiPhoto Film CO.; Olympus; Nikon; Canon;Polaroid; Restructuring / TurnaroundStrategies Case Study; Snapfish.com;Maytag; Hewlett-Packard; Xerox Corp;Cingular Wireless; Seiko Epson; NexPress

The Wall Street Journal:Changing with the Times

Dow Jones’s overall performance is largelydependent on the operating performance

of The Wall Street Journal (Journal), itsflagship brand, which is dependent uponbusiness-to-business advertising. Thecirculation and advertising revenue of TheJournal has been steadily falling with theadvent of internet. In 2007, it is beingrevamped and its business model is beingoverhauled to suit the changing marketscenario. It will be the first major Americanpaper to push significant portions oftraditional newspaper functions onto theWeb site, leaving the paper itself to focusmore on news analysis. The case discussesthe dynamics of the newsprint industry,The Journal’s competition and the changesin its strategy over the years.


• To discuss the dynamics of the newsprintindustry

• To analyse Wall Street Journal’scompetition and the changes in itsstrategy over the years.

Industry Publishing IndustryReference No. RTS0159PYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

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Dow Jones; Restructuring / TurnaroundStrategies Case Study; Business Model;Brand Revamp; Restructuring exercise;target audience; Business strategy; internetnews

Motorola's Revival StrategyThe case study is about the revival strategylaunched by the C.E.O. Ed Zander (Zander)of Motorola in 2006. The companydesigned manufactured and marketedcellular /mobile phones and was a leadingUS mobile player. In 2006, the companywas experiencing growth in number ofunits sold and revenues as compared to theprevious year but there was a decline in theprofits of the company.

To address drop in the profitability of thecompany, Zander was launching variousinitiatives. Zander unveiled a three-steprevival plan which included rationalizationof workforce - eliminating about 3500 jobsmostly in the middle management, therebyreducing costs by $400 million by the endof 2007. The second step requiredMotorola to become more selective aboutthe markets in which the company plannedenhancement in its market share. The thirdand final step involved new productdevelopment focused on consumerpreferences and current market trends.


• An overview on changing trends inCellular / Mobile phone industry

• To analyse Motorola’s decline

• To analyse effectiveness of Motorola’srevival strategy

• To understand the importance of newproduct development in Cellular / Mobilephone industry.

Industry Telecommunication IndustryReference No. RTS0158PYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Motorola; US mobile phone industry; EdZander-new CEO; Razr; Krzr; Siv; Pebl;Rok; Motoslim; Restructuring / TurnaroundStrategies Case Study; MOPtoMing;Motorola Q; Zander's new revival strategyfor company; Step Revival Plan

Fiat's Turnaround StrategiesFiat Auto, a leading player in the automobileindustry, has been losing market share andsustaining losses since 1999. The caseoutlines the dynamics of the global autoindustry, Fiat’s initial growth strategy, itsproblems, its early initiatives to stem thedecline and its turnaround strategy. Theturnaround strategy focuses on cost cutting,new product launches and revision of thecompany’s advertising and marketingstrategy.


• To analyse the dynamics of the globalauto industry

• To understand the factors which led todecline of Fiat Auto

• To discuss the turnaround strategy ofFiat which focuses on cutting cost,launching new products and revising thecompany’s advertising and marketingstrategy.

Industry Auto IndustryReference No. RTS0157PYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

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Fiat; Decline; revival; Sergio Marchionne;Turnaround Strategies; Automobileindistry; Restructuring / TurnaroundStrategies Case Study

Sony Electronics: The TurnaroundStrategy

Sony’s electronics division whichaccounted for the major share of Sony’soverall revenue was making losses duringthe last three years (from 2004). This was

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due to a decrease in revenues in the audio,video and the semiconductor products ofthe company. Sony faced challenges fromcompanies across different productcategories like Apple’s iPod and also fromSharp and Samsung in the LCD TV segment.Moreover, in August 2006, Dell announceda massive recall of Sony’s batteries fittedin its laptop computers. In a turnaroundstrategy, Sir Howard Stringer, the CEO ofthe company, closed the money-losingdivisions and undertook diversificationstrategies through technologicalinnovations. The case gives an insight intoSony’s history and the challenges that itfaced from its major competitors. It alsodiscusses the strategic initiatives taken bySir Howard Stringer in order to turn thecompany around.


• To get a brief idea of Sony’s inceptionand growth

• To discuss the challenges faced by Sonyfrom its competitors

• To analyse the strategic initiatives takenby its CEO, Sir Howard Stringer to bringthe company back to its growthtrajectory

• To debate whether Sony would be ableto turnaround or not.

Industry Consumer ElectronicsReference No. RTS0156KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

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Sony; Microsoft; Apple; Samsung; Sharp;Nokia; Walkman; LCD (liquid crystaldisplay) TV; Plasma TV; Battery recall;Restructuring / Turnaround Strategies CaseStudy; Dell; Trinitron; Turnaroundstrategy; Playstation; Sir Howard Stringer

Proton: Way to SurviveProton, the Malaysian national carcompany, had been the market leader inthe Malaysian automobile market since itsinception in 1983. During 2004, itwitnessed a rapid slip of its market sharefrom 74% in 1993 to 41% in 2005.Moreover, with the abolition of tariffbarrier against foreign cars, Proton wasexposed to stiff competition. In 1993, themembers of Association of Southeast AsianNations (ASEAN) agreed to cut tariffs onimported cars to 5% but Malaysia was theexception and was allowed to cut tariff rateto 20% in 2005 and to 0-5% in 2007. In2005, The ASEAN Free Trade Agreement(AFTA) was promulgated, making Protonvulnerable to foreign competition. Thiscase deals with the challenges facing Protonand tries to investigate whether Proton

will be able to survive the increasedcompetition and tough market conditions.


• To understand the automobile marketin Malaysia

• To analyse Proton’s competitivepositioning

• To discuss the causes for its poorperformance

• To analyse the strategies adopted byProton to overcome the challenges.

Industry AutomobileReference No. RTS0155KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

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Car; Automobile; Malaysia; ASEAN(Association of Southeast Asian Nations);Restructuring / Turnaround Strategies CaseStudy; AFTA (ASEAN Free Trade Area);Trade; Market leader; Mitsubishi; HICOM(Heavy Industries Corporation ofMalaysia); Assembly; Perodua; Inokom;Competition; Technology; Quality

Wal-Mart's Exit from South Koreaand Germany: What Went WrongThe world’s largest retailer, Wal-Mart wasgrowing at a rapid pace with more than6100 stores world wide, with net salesreached to more than 6100 stores globally,with the net sales reached to more thanUS$ 312.4 bn for the year ended Jan 31,2006. Since 1990, the retailer was pursuingaggressive international expansion strategyacross the globe, but the company failedmiserably in Germany and Korea. Wal-Mart exited from the both the two countryby selling it’s under performing businessdivisions to other retail companies.Analysts perceived that the companyfailed to adapt its business model to boththe countries, failed to understand thecustomers of the respective country andstruggled hard to grab a significant marketshare in competitive German and South-Korean Retail market. This case deals indetail with why Wal-Mart failed to replicateits successful business model in Germanyand South Korea and its decision to exitfrom the two country was strategicallycorrect or not.


• To understand the retail market both inGermany and South Korea

• To discuss about Wal-Mart’s strategicinitiatives

• To analyse Wal-Mart’s failure in boththe countries

• To debate on its decision to exit fromboth the countries.

Industry RetailReference No. RTS0154KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

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Wal-Mart; Carrefour; Tesco; Aldi; MetroAG; South Korean retail industry; Germanretail industry; Discount store;Hypermarket; Departmental stores;Restructuring / Turnaround Strategies CaseStudy; Supermarket; Conventional stores;Convenience stores; E-Mart; Global retailindustry

Marvel Comics: ForwardIntegration into Movie-making

In April 2006, with a market-share of 43.93percent, Marvel Comics was the leadingpublisher of comics, graphic novels andmagazines in the US. Yet, it was not thecontributions from its publication sectorthat had helped Marvel EntertainmentInc., to quadruple its profits over threeyears to $103 million by the end of 2005.It was the licensing of its comic charactersfor movies that had helped the companywhich was on the brink of bankruptcy in1997, to achieve such a success.

Avi Arad, Chief Executive of MarvelEntertainment’s Marvel Studio unit, wasto a great extent, responsible for the revivalof Marvel’s fortunes. It was under hisleadership that the company licensed itscharacters to make movies. Till 2005, thecompany only licensed the characters tofilm studios like Fox and Sony who madethe movies and cornered most of theprofit. However, in 2006 the companydecided to foray into movie making andwas planning to set up its own independentfilm studio. Though Marvel was positive,analysts were skeptical of the company’smove in this direction.

The question is: will it succeed in its newventure?


• To understand the business model ofMarvel Comics

• Marvel Comics business strategy oflicensing of its comic characters tomovies

• Revival strategies of Marvel Comicsthrough Marvel Studio unit.

Industry Entertainment IndustryReference No. RTS0153BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available




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Marvel Entertainment Inc.; Comics; AviArad; movies; The Hulk; Spider-Man;bankruptcy; DC Comics; Perelman;characters; licensing; production;Restructuring / Turnaround Strategies CaseStudy; distribution; marketing; Blade

Winn-Dixie Stores, Inc: Will it beable to Turnaround?

Commercial bankruptcies could have a bigand devastating impact on an economy asa lot of money is at stake. In recent years,several high-profile corporations likeEnron, WorldCom and the like have filedfor bankruptcy. Businesses accounted forabout 2% of all bankruptcy filings in theUS in 2005.In the retail industry 10companies in the US filed for bankruptcyin 2005, the same year that Winn-Dixie agrocery store chain filed for bankruptcy.Kmart another grocery store in 2002 filedfor bankruptcy. What is of significance ofKmart’s bankruptcy was that firstly theywere able to turn around successfully andsecondly it was believed that thebankruptcy was the biggest ever in the retailindustry.

Winn-Dixie a public limited company listedon the stock exchange was a Jacksonville-based grocery store chain with 920 storesin eight southeastern states of the US andthe Bahamas. On February 21st 2005, thecompany filed for Bankruptcy underchapter 11 in the U.S. Winn-Dixie wasdriven to file for bankruptcy as it fell backon its payments, which kept mounting andthe company reached a stage when theyjust could not afford to take it forwardfinancially. The company filed to helpreorganize itself, improve its finances,reduce expenses and decide on how to useits assets to make its stores moreproductive. Under US bankruptcy laws, thecompany was allowed to function as itnormally would, with a specified time limitto file what was called a ‘Plan of re-organization’. If the plan was not filedwithin the time stipulated, Chapter 11would be converted to Chapter 7 whichmeant that the company was deemedinsolvent.

The events of the case happened in 2005/06, when competition in the supermarketgrocery retail industry was at its peak.Every retailer was being wiped out withthe omnipresent Wal-Mart.

The bankruptcy process was lengthy andsometimes uncertain. How did Winn-Dixiecope with this difficult crisis?

Chapter 11 gave Winn-Dixie somebreathing space but what strategies needthe company deploy to successfully emergefrom its bankrupt state? What would bethe perceptions of its customers? Would

its image get tarnished? Could they turnaround and run their stores as an on goingconcern after emerging from its bankruptstate?


• To understand the law that operates forretail bankruptcies in the US

• To understand how competition andcomplacency could lead to a bankruptcy

• To analyse how to overcome the vagariesof retail bankruptcy

• To comprehend financial, personnel,planning and strategies required duringbankruptcy.

Industry Retail-GroceryReference No. RTS0152BYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

Keywords

USA; Retail; Grocery; Bankruptcy;Restructuring / Turnaround Strategies CaseStudy; Chapter11; Plan of Reorganisation;liquidity; Disclosure Statement;restructuring; Business Ethics; Legal;Winn-Dixie

Volkswagen: Turnaround inChina?

In the 1980s, the open door policy of theChinese government and the large marketpotential for the passenger car business inChina encouraged the internationalautomakers to invest in the Chineseautomobile industry. Volkswagen was thefirst company which entered the Chinesemarket and dominated the market by usingits most advanced manufacturingtechniques, product technologies and highquality product lineup. In 2001, China’sentry into the World Trade Organization(WTO), opened a gateway for a huge influxof new car imports and led to a greatercompetition in the Chinese car market. Inorder to compete with the new wave ofcompetitive price imports, localmanufacturers reduced the price of theirvehicles. Price cuts by competitors and anincreasing number of available models inthe market posed a challenge for themarket leader, Volkswagen, in China. In2005, the market share of Volkswagen inChina declined to less than 15% (13.6%market share in China in 2005). To combatcompetition and to regain its leadingmarket position in China, Volkswagengroup adopted a strategy in 2005, torestructure its Chinese market. Thisstrategy was named “Olympic Program”,as it would get over in 2007, the same yearthat the Chinese were to host theOlympics. Would Volkswagen succeed?


• To understand Volkswagen’s entry intoChina and its subsequent growth in themarket

• To study the competition in the Chinesemarket

• To analyse Volkswagen’s restructuringmeasures and its strategy to face thecompetition

• To analyse whether Volkswagen wouldsucceed in regaining its position in China.

Industry AutomobileReference No. RTS0151BYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

China Automobile Industry; SWperformance; Restructuring / TurnaroundStrategies Case Study; FAW-VWPerformance; Marketing programme;Strategy of Expansion; Training of localpartners; cost-reduction; Stiff competitionin the Chinese Automobile Industry; GM;Toyota; Hyundai; Honda; OlympicProgram

The Changing Face of MTVIn the early 21st century, MTV (MusicTelevision), a popular cable channel, facedthreats from new entertainment optionslike online videos, podcasting and do-it-yourself music mixes. These new forms ofentertainment easily lured away youngaudience of MTV. After witnessing the lossof viewers, MTV realised the need to holdits audience. To make use of the growingpopularity of digital entertainment and toincrease its audience, MTV decided totransform itself to the needs of the digitalage.

As a major step in digitalizing the process,it collaborated with Microsoft in creatingMTV Urge, to cater to the on-line musicdownload market. It also launched MTVFlux which allowed viewers to choose theprogrammes that they wanted to watch.This helped MTV to integrate thetraditional TV channel with the internet.For wider distribution of its content, MTValso forged alliances with mobile phonecompanies like Vodafone, Orange, andDoCoMo. It remained to be seen whetherMTV’s attempts to would raise thepopularity and acceptance among the newage viewers.


• To understand the emergingentertainment options

• To study MTV’s growth over the yearsand its strategies to capture new markets

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• To analyse the competitive threat posedby the new age digital entertainmentoptions to MTV

• To examine the strategies of MTV toadapt to the changing environment.

Industry Entertainment-MusicReference No. RTS0150BYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

MTV; MTV Urge; MTV Flux; MySpace;MTVN; MTV Overdrive; VH1; Viacom;Restructuring / Turnaround Strategies CaseStudy; Atom Entertainment; Microsoft;Neopets; Vodafone; Nickelodeon; MTVdigitalization process; Judy McGrath

Snags in Wendy'sIn 2005, the fast food industry in the USwitnessed 5% increase over that of theprevious year. However, due to ineffectiveads and stiff competition, Wendy’s incurreda loss of $29.1 million. Wendy’s was thethird largest burger chain in the world afterMcDonald’s and Burger King. Since 2002,due to the price war between McDonald’sand Burger King and the death of DaveThomas, the founder of Wendy’s, itwitnessed a decline in its market share.After reviewing the market condition, thecompany came out with a turnaround plan.Wendy’s decided to reinvigorate its coreproducts and to improve its service. It alsoplanned to cut overhead costs by $100million. With McDonald’s introducing newproducts, analysts were skeptical aboutWendy’s revamping plan. Would Wendy’ssucceed in its endevors?


• To understand the fast food industry inUS

• To understand Wendy’s growth in US

• To understand the challenges of the fastfood industry in US

• To analyse whether Wendy’s turn aroundplan work.

Industry Fast Food IndustryReference No. RTS0149BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Origin of Wendy; System wide sales ofWendy's; Advertising awareness; Marketshare of Wendy's; Quality score of leadingburger chain; Restructuring / TurnaroundStrategies Case Study; Wendy's sales (2000-2005); Challenges; Competitors; NextChapter of Wendy's; Wendy's turnaroundplan; Moving ahead

Kodak: Rewriting Its Film Destiny?Kodak was slowly burning its bridge andwas mutating from analog to digital businesssince 2000. Kodak was no longer themarket leader in film and cameras and theentry of digital cameras made most ofKodak’s traditional products obsolete.Kodak was losing millions and selling offassets to repay its debts and to fund itsdigital business. Will Kodak regain its lostglory in the photography industry? Or willKodak be just another page in the book ofcorporate history? This case details thecircumstances that led to Kodak’s forcedtransition to digital business, the problemsKodak was facing and its strategies to getback to the perch where it once was.


• To discuss about the US camera market

• To understand the market performanceof Kodak, its competitive strategy andvarious threats to it

• To assess the future of Kodak.

Industry Photography/Digital CameraReference No. RTS0148BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Turnaround; Diversification; Kodak; digitalcamera segment; Eastman Kodak;Restructuring / Turnaround Strategies CaseStudy; US Camera Market; Film Sales; Fuji;Camera Phones; CMOS; Cannibalization;Competitive Strategy; Sony; Marketing;OLED; PhotoCD; Antonio Perez

Gap Inc.’s Declining ApparelSales in Europe: Style or

Substance?Gap Inc., the US-based global clothingretailer, had faced dwindling sales over theperiod 1999-2002. While closingunderperforming stores, reducing excessinventory, etc., led to a temporaryturnaround in 2003, sales declined oncegain during the subsequent years. Duringthe fiscal year ending January 2006, Gap’sglobal sales fell by 1.5%, while the plungewas even sharper at 6.1% in its twoEuropean markets, Britain and France. Thecompany identified that having an‘American look’ was the foremost reasonbehind the Europeans’ disinterest in itsapparel. Hence, Gap Inc. aimed to add somelocal flavor to its European business, byestablishing a design house in London.However, analysts judged it as an inadequatesolution to the company’s problems. Gapwas facing enormous competition fromsupermarket chains like Wal-Mart andTesco, which offered good quality clothing

at attractive prices. More importantly, inrecent years, various ‘fast-fashion’ brandswere making strong inroads into the UKand French markets. Shoppers wanted towear what the ‘stars’ wore, and some fast-fashion brands like ‘Zara’ and ‘Hennes &Mauritz’ (H&M), churned out fashionableand trendy, cut-price copies of catwalkpieces at lightning speed – in less than twoto four weeks after conception (hence called‘fast-fashion’ brands). Also, with thecomplete phasing out of the Multi-fiberAgreement from January 1, 2005,premium brands like those of Gap, becamemore vulnerable to low cost imports fromdeveloping countries. In this context, someanalysts opined that Gap should revise itsproduction, distribution and strategies soas to come up with trendier and costeffective styles at a very fast pace. At thesame time, others pointed out that Gapcould break free of low-cost competitionby coming up with well-differentiated‘pinch-hitting styles’ along with goodquality and pricing, so as to establish itsbrand reputation. This case highlights Gap’sevolution, its sales decline during 2005-2006 - mainly in Europe, the company’sresponse, the further threats that it wasfaced with and analysts’ views and opinionsregarding the same.


• To analyse the competition in theApparel industry worldwide and inEurope

• To discuss about various factorcontributed to decline of Gap Inc and itsproduction, distribution and strategies.

Industry ApparelReference No. RTS0147BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Gap; Fashion Industry; Fast-fashion Brands;Restructuring / Turnaround Strategies CaseStudy; Inditex Zara; Multi-fiber Agreement;Clothing and Accessories; Apparels;Readymade Garments; Retailer Brands;Competition; Positioning; Fashion andStyles

Dell Inc: Time to Discard its DirectSelling Model?

Dell Inc., the world’s largest computermanufacturer achieved revenue of $55.9billion (by January 2006) and it set thetarget of $80 billion revenue world-wideby 2010.Michael Dell’s innovative low-cost, direct-sales strategy had beensuccessful in allowing his company to sellcomputers at lesser cost than its rivals.Dell held a leading 18.2% (in FY 2005-06)share of the world PC (personal computer)





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market and grew much faster thancompetitors.

However, according to the industry sources,it was the fourth time (Q4 of FY2005-06)Dell said the company could not achievequarterly earnings or sales forecast sincethe beginning of financial year 2005.Itsstock price decreased by nearly 10% to$19.91, the lowest in five years (FY 2001- FY2006) which pushed down the stockprices of other computer companiesbringing down NASDAQ to a 14-monthlow. In many fast-developing markets,including India and China, Dell’s marketshare had increased marginally over thepast years (Up to 2005). In desktop andnotebook PCs segment, which contributed80% of sales world over, PC sales for Dellhad slowed down.

Repeated missing of targets, declining salesand decreasing share prices led industryanalysts to raise questions about the businessmodel followed by Dell Inc. Was the direct-sales model struggling for survival? Stockexchange of U.S.A.


• To understand how Dell had achievedgrowth through its unique business model

• To understand the supply chain processin Dell

• To understand the challenges to thedirect-selling model

• To analyse the future of the model.

Industry Personal Computer IndustryReference No. RTS0146BYear of Pub. 2006Teaching Note AvailableStruc.Assig. Available

Keywords

Dell; Direct sales model; Restructuring /Turnaround Strategies Case Study; businessmodel; Michael Dell; Supply chain;Challenges; Customer Centric

Malaysian Airlines: A TurnaroundStrategy

Malaysian Airlines System (MAS),incorporated in 1937, was one among theonly four to be awarded 5–star rating bySkytrax. MAS was characterized bygovernment intervention and control. Dueto this, fares charged in Malaysia were thelowest in the region. Foreign airlines wereunable to compete at such a low fare whichadversely affected the overall industry andalso the profits of MAS. Moreover, risingfuel prices and poor management led tolosses being incurred by the airline. IdrisJala was appointed as MD and CEO tooverhaul the MAS operations. Poorpricing, rising cost structure, mismatchfleet, weak operational performance, low-

intensity performance culture, and socialobligations were contributing to theirdismal financial performance.

The case highlights the trials andtribulations of MAS and efforts of Jala toimprove efficiency and capabilities andturnaround the airline to profitability.


• To discuss the role of government inMalaysian Airlines System

• To understand the importance ofmanagement efficiency in theperformance of a company

• To discuss and understand the turnaroundstrategies.

Industry AviationReference No. RTS0145AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Malaysia Airline System (MAS); BusinessTurnaround Plan (BTP); Idris Jala;Management Restructuring; CostReduction; Strategy Overhaul;Restructuring / Turnaround Strategies CaseStudy; Schedule Optimization and AirlineRevenue System (SOARS); MutualSeparation Scheme (MSS); FinancialProcess Exchange System (FPX);Competitive Scenario; GovernmentPolicy; AirAsia; Low Cost Carriers;Penerbangan Malaysia Berhad (PMB);Kaula Lampur International Airport(KLIA); Turnaround strategy; Fuel prices

Corportate Restructuirng atYahoo! Inc.

Yahoo! Inc., a leading global internetservice provider, offered online productsand services besides offering a full range oftools and marketing solutions forbusinesses to connect with internet usersaround the world. Its total revenue was$6.256 billion and it had around 11000 oftotal workforce in 2006.

Google was a proven leader in search engineindustry by 2006. With emergence of thesocial networking media such as MySpaceand YouTube, Yahoo! was facing atremendous pressure in its growthinitiatives. Yahoo! was suffering from anidentity crisis as a result of no clear focusor strategy. Amidst the crisis and afterwitnessing a decrease in quarterly profitsby 38% to $158 million (£84.4 million)and share price decrease of 2.1%, to$26.86. Yahoo decided to undertake thecorporate restructuring initiative.

Case details Yahoo’s reorganization of itsstructure and management to align its

operations with its key customer segment,and it ends with a debate whether Yahoo’srestructuring strategy would work in itsfavor?


• To analyse the significance of corporaterestructuring strategy and performanceof an SBU

• To examine the role of leadership rolein the change management.

Industry Internet ServicesReference No. RTS0144AYear of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

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Corporate restructuring; Reorganization;Audience group; Advertisers & Publishergroup; Technology Group; Strategy; GoogleInc.; Restructuring / Turnaround StrategiesCase Study; Share Price; YouTube;MySpace; Social Networking Websites;Search Engine industry; Web Portals

Alan Mullaly, veteran fromBoeing: Can he turn Ford

around?One of the ‘Big Three’ auto-makers in US,Ford Motor Company, manufactured anddistributed automobiles in 200 marketsacross six continents. In August 2006, thesales in Ford’s home market, witnessedfurther fall compared to the previous yearand the losses were $1.3 billion (£680million) in the first half of 2006. The USsales decreased by 12% in August 2006 dueto sharp rise in petrol prices in the US.Ford announced its second restructuringplan in January 2006, entitled "The WayForward".

Bill Ford, the great grand son of HenryFord stepped down as the CEO in September2006, and announced Alan Mullaly, aveteran from aircraft manufacturingindustry as the CEO. Since the time BillFord took up his job as CEO at Ford MotorCompany (FMC) in 2001, he was tryingto get successful auto industry veterans likeRenault-Nissan CEO Carlos Ghosn andDaimlerChrysler Chairman Dieter Zetscheto take up his position as he felt he wasnot the right person. Unable to get eitherof them, Bill Ford looked outside theindustry to choose right leader for his ailingfamily business. The decision raised aquestion in the industry - Can a ‘non-car’guy fix FMC?

The case aims at discussing the challengesthat lie ahead for Alan Mullaly to do hisjob at Ford and discuss the pros and cornsof this decision taken by FMC.

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• To discuss the Ford Motors Company asone of the ‘big three’ auto giants in US

• To understand the strategies used by FordMotors for restructuring during crisis

• To understand importance of newleadership in a family-owned company

• To study the role of leadership in aturnaround of a company.

Industry AutomobileReference No. RTS0143AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Ford Motor Company; Bill Ford; HenryFord; Restructuring / Turnaround StrategiesCase Study; Alan Mullaly; Aircraft Veteran;Non-car guy; Leadership; Strategicmanagement, turnaround; 2006 Crisis;Boeing; Challenges; Way Forward;Restructuring; Big Three; Leader

Kraft Foods Spin-Off: Will it help itsTurnaround?

On June 26 2006, Kraft Foods Inc., (Kraft)the world’s second-largest consumerpackaged-foods Company after Nestleannounced the appointment of IreneRosenfeld, as the new chief executive officerreplacing Roger Deromedi. Irenepreviously was the chairman and chiefexecutive officer at Frito-Lay, a divisionof PepsiCo.

On January 31 2007, Kraft’s parent and88% stake owner Altria Group Inc., one ofthe world’s famous tobacco corporations,announced the long awaited spin-off of itssubsidiary Kraft, which would be completedby March 30 2007. It was an initial step ofon-going restructuring exercise for creatingshareholder value. On February 202007,Kraft announced a new phase of itsturnaround plan to revitalize its fallingsales.

The case details about how Kraft will utilizeits spin-off and various opportunities andchallenges for a successful turnaround.


• To understand the corporate spin-offsand its impacts

• To study the challenges for a turnaroundwith new leadership

• To understand the corporaterestructuring.

Industry Packaged-FoodReference No. RTS0142AYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

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Kraft Foods Inc.; Packaged food industry;Altria Group of Companies; Spin-off;Turnaround plan; Irene Rosenfeld; RogerDeromedi; Rrestructuring; Restructuring /Turnaround Strategies Case Study;Competitive strategies; managing brandportfolio; cost reduction; acquisitions;focused portfolio; declining financialperformance

Corporate Restructuring atCadbury Schweppes: Splitting US

Beverages and ConfectioneryIn March, 2007 Cadbury Schweppes, thelargest confectionary business in the worldannounced its decision to split its USbeverages business, which owned famousbrands such as Dr Pepper and Canada Dry,from the rest of the Cadbury Schweppes.The company had been under increasingpressure to split its business. The move,many analysts believed had come under astrong push from the Nelson Peltz, a USactivist investor, who in March 2007acquired almost 3% of the company’sshare. Further the company acknowledgingthe strong portfolio of brands for itsconfectionary business intended to revertto its origins as a core confectionarycompany in the global market.

Although the strategic rationale was stillmisty, the split certainly would make thede-merged independent CadburySchweppes US beverages, an approximate£7.0 billion division, the third largestcontender in the US soft drinks marketafter Coca-Cola and PepsiCo. The twin-track approach had a strong reaction fromthe credit rating agencies as it apparentlyexpressed its intentions to downgradeCadbury Schweppes ratings. The case endson a debate whether the decision to splitbeverage business would prove a right onefor Cadbury.


• Understanding Corporate RestructuringStrategies

• Discuss the Splitting off as a way ofrestructuring.

Industry Confectionery & BeveragesReference No. RTS0141AYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

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Cadbury Schweppes; CorporateRestructuring; Business PortfolioManagement; Strategic Business Units;Business Acquisitions and Disposals;Business Strategy; Inorganic Growth;Organic Growth; Spin-off Strategy; Core

Business; Brand; Revival; Non-coreBrands; Competitive Advantage; Globaladvantaged markets; Restructuring /Turnaround Strategies Case Study; GlobalConfectionery Industry; Global BeverageIndustry; US Beverages Industry; CocaCola; Pepsi; Nestle; Chocolate; Candy;Gum Markets; Carbonated Soft Drinks

AOL: The Strategic Shift, Will itPayoff

US based online service provider, AOL, hadbeen the biggest service provider of theworld.

Traditionally, providing internet access tothe paid subscribers had been the corebusiness of AOL. However, over the time,due to drastic shift towards broadband fromdial-up system and competition from freeservice providers AOL had been invariablylosing its paying subscribers.

To arrest its declining core business, on2nd August, 2006, AOL, announced toreorganize its subscription-based businessmodel and change it to one supported byadvertisements. AOL repackaged itself,apart from the core business, as a free,advertising supported web destination.Nevertheless, to execute this strategicshift, AOL had to take restructuring routeand lay-off around quarter of its employeesaround the world. But then AOL chiefJonathan Miller who brought the strategicshift was replaced by NBC veteran RandyFalco just three months after theintroduction of new strategy. The casediscusses the strategic shift and challengesahead for AOL.


• To understand the concept andchallenges of strategic shift

• To analyse corporate restructuring atAOL

• To understand the rule of leadership instrategic shift and corporaterestructuring.

Industry Internet ServicesReference No. RTS0140AYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

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AOL; Internet Service Provider (ISP);Business Model; Strategic Shift;Restructuring; Lay-offs; Restructuring /Turnaround Strategies Case Study;Leadership Change; Jonathan Miller; RandyFalco; Quantum Computer Services (QCS);Time Warner; Repositioning; Change inBusiness Model; Challenges of StrategicShift; Competition




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Carrefour S.A. - Jose Luis Duran'sTurnaround Strategies

Carrefour S.A. is the world's leading retailsupermarket chain. The company spans awide network of hypermarkets,supermarkets, hard discounters,convenience stores and Cash & Cary outletsacross 30 nations. France gives Carrefournearly 50% of its revenues. But after itmerged with Promodes in 1999, Carrefour'ssales started stumbling. Its domestic market,France, became its biggest source of troubleas competitors ate into its market share.Till 2005, its sales went through a series ofups and downs. Carrefour's directors wokeup to this sales chaos. And, in their plans toreorder the management, they promotedJose Luis Duran as the new CEO.


• To analyse the factors responsible forthe declining fortunes of Carrefour

• To understand the strategies undertakenby the new CEO, to turn the fortunes ofCarrefour around

• To discuss whether Carrefour would beable to regain its lost market share, bybeating its competitors.

Industry Retail IndustryReference No. RTS0139Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

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Hypermarkets; Restructuring / TurnaroundStrategies Case Study; Supermarkets;Convenience stores; Cash & Carry; Wal-Mart; Tesco; Brands; Auchan; Casino; E.Leclerc; Declining sales of Carrefour;Pricing strategy in retail industry

The Turnaround of MorganStanley

In 2005, the $52 billion – Morgan Stanleywas among the largest financial servicescompanies in the world. It was also the30th largest U.S. corporation with 53,760employees across the globe. MorganStanley was popularly called the ‘whiteshoe’ investment bank due to itsassociation with major corporations andwealthy individuals.

Since 2005, Morgan Stanley, once theleader in investment banking and publicstock offering underwritings was losing itsleadership position to other US financialservices firms. CEO Philip Purcell (Purcell)had been asked to leave Morgan Stanleyunder a cloud of corporate mis-governance.John Mack was appointed as the new CEOin June 2005.The case talks about variousinitiatives launched by Mack to turnaroundthe company and improve its image.


To understand

• The concepts associated with businessorganisation of financial servicescompanies

• The issues related to the leadership stylesof the CEOs

• The issues related to legal andgovernance problems faced by acompany

• The concepts associated with employeemorale and motivation.

• The concepts associated withdecentralisation of authority anddecision making

• he pros and cons of revival initiativeslaunched by Morgan Stanley’s new CEOJohn Mack

Industry Financial Services IndustryReference No. RTS0138PYear of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

Keywords

John Mack; Dean witter; Philip Puurcell;Restructuring / Turnaround Strategies CaseStudy; investment banking; equityunderwriting; retail brokage; assetmanagement

Turning Around RevlonRevlon is a leading manufacturer ofcosmetics, skin care, fragrance and personalcare products based in the US. It is thethird largest cosmetic company in theworld, and owns global cosmetic brands likeRevlon, Flex Almay, Ultima, VitalRadiance, Charlie and Mitchum. Since1998, Revlon had been struggling to post aprofit. It was unable to hold its ground inthe face of intense competition and facedmajor setbacks in its core North Americanmarket. This case study discusses thereasons behind Revlon’s losses, risingcompetition in the cosmetic market andits attempts to make a comeback.


• To understand the global cosmeticindustry scenario

• To discuss Revlon’s turnaround strategy.

Industry Cosmetic IndustryReference No. RTS0137PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Fiex Almay; Ultima; Restructuring /Turnaround Strategies Case Study; Vital

radience; Charlie perfume; Mitchum;Almay; L'oreal; Cosmaceuticals;Colourstay; Cover girl

Volkswagens TurnaroundStrategies

Volkswagen (VW), an automobilemanufacturer based in Wolfsburg, Germanyis a part of VW Group, one of the world’sfour largest car producers. The groupconsisted of well known brands like Audi,Seat, Skoda, Lamborghini, Bentley andBugatti.

Since 2001, the company suffered lossesin the North American market. In 2005,VW’s sales fell sharply leading to a loss ofroughly $1 billion for its operations in the(United States) US and Canada. Its salesfell from 356.000 units to 224.195 units.By 2005, its models were at the bottom ofConsumer Reports and J.D. Powerreliability rankings. This case studydiscusses the reasons behind VW’s lossesand its attempts for a turnaround.


• To understand the automobile industryscenario in the US

• To discuss Volkswagen’s strategy to makea turnaround.

Industry Auto IndustryReference No. RTS0136PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Audi; Seat; Skoda; Jetta; Restructuring /Turnaround Strategies Case Study; Passat;Phaeton; Golf; project M; JD power survey

Ahold: The Road to RecoveryRoyal Ahold NV, the fourth-largest groceryretailer in the world, faced challenges since2003, due to an accounting scandal thatalmost made the company bankrupt. Inlate 2003, Anders Moberg, the chiefexecutive officer of the company,undertook a three-year finance andstrategy plan, termed ‘road to recovery’,to restore its financial strength. Inaccordance with the plan, Ahold was ableto cut costs and became financially solventby the end of 2005.

The case study highlights the strategiesadopted by Ahold as a part of its revivalplan, to recuperate from its financialdownturn.


• To discuss the turnaround strategies ofAhold

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• To analyse financial position of Aholdbefore and after the accounting scandal

• To understand the accounting normsaccepted in the industry

• To discuss the control mechanismsrequired to maintain an optimum balancein the company

• To understand strategic concentrationand divestment of resources to maximiserevenue.

Industry Grocery, RetailReference No. RTS0135KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

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Ahold; Road to recovery; Liquidity crisis;Bankruptcy.

D&B: The Turnaround StrategiesDun & Bradstreet (D&B), the $1.4 billioncompany by 2005, dealt with global businessdata and provided business information, tools,and insights about various companies.Customers bought D&B products, such asbusiness information reports and business tobusiness marketing lists, to improve cashflows, mitigate risks and increase revenue.But, during the 1980s and 1990s, a series ofacquisitions and divestitures diminished theperformance and brand value of the companyand by the late 1990s, it could no longerfocus on its core performance areas. In 1999,D&B failed to meet its revenue and earningexpectations, as a result of which,shareholders were furious, leading to theresignation of the CEO, Volney Taylor. Thecompany had become an under-performerwith under-leveraged assets. In May 2000,Allan Z. Loren joined D&B as the CEO.Under Loren’s leadership, D&B devised astrategy to determine ways in which it couldreclaim its position in the market place. Soonthe company adopted a business modeldesigned to increase its investments in itscore competence areas. Further, it also soughtto re-position itself for enhanced growth.Savings from re-structuring were re-invested,in order to expand the business and raise itsEarnings Per Share (EPS). D&B also createda new culture of leadership, which Lorenregarded as crucial, for sustaining any business.The Case discussed D&B’s crisis and itsturnaround while raising a question of itssustainability.


• To understand the concept of revenuedriver

• To analyse the business model withspecific reference to D&B

• To understand and discuss turnaroundstrategies

• To understand the concept of strategicconcentration and divestment withreference to D&B.

Industry Credit Reporting & IndustryInformation

Reference No. RTS0134KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

D&B; A.Z.Loren; Credit reporting; EPS;Turnaround; Reengineering.

Dell’s Turnaround StrategyDuring the late 1980s, Michael Dell andhis company, Dell Inc., revolutionised theglobal PC market by the latter’s ‘DellDirect Business Model’, where iteliminated all kinds of middlemen anddirectly supplied customised PCs to thecustomers. For the last two decades, thecompany continued to be the market leaderin the small household PC segment.However, after enjoying the supremacy fortwo decades since 2005, it started facingcompetition. The company's revenue andprofit failed to match the expectations.Besides, it had to write off US$450 million(mn) for the installation of defectivecapacitors in its computers and opt forworkforce alignment. The analysts werethus,, sceptical about the future of theorganisation. The company was termed asless innovative than its competitors as itfailed to launch innovative products in themarket. To be on the growth trajectoryagain, it planned to enter into the consumerelectronics segment. But the analysts weredoubtful about the success of Dell’s ‘DirectBusiness Model’ in the consumerelectronics segment. The case deals withDell’s business model and its success in theconsumer electronics segment. It providesa scope for discussing whether theturnaround strategy of Dell would besuccessful and about the scenario of globalPC industry and global consumerelectronics market.


• To discuss the idea of ‘Direct BusinessModel’ which revolutionised the globalPC market by eliminating all kinds ofmiddleman and by supplying customisedPCs to customers

• To discuss in details about trends andpatterns of US and global PC industry

• To discuss the strategy adopted by Dellto become the market leader inhousehold PC segment

• To discuss how the company’s marketshare was eroded and the companystarted to face the heat due to aggressivemarketing strategy of its competitors

• To discuss the company’s decision toenter into consumer electronics segment,strategy adopted by the company andapprehension among the analysts

• To discuss whether the company’sdecision to enter into the consumerelectronics market will help thecompany to turnaround or not.

Industry Personal ComputersReference No. RTS0133KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Dell; Turnaround Strategy; Direct to order;JIT; Apple Computers.

Viacom – Restructuring ForGrowth

Since early 2004, Viacom Inc., the thirdlargest media company in the world,exhibited a massive drop in share prices,with growth investors being discouraged bypresence of slow-growth businesses likebroadcast TV and radio, and valueinvestors being put-off by high riskbusiness of cable networks. In order torestore growth in the company, SumnerM. Redstone, the chairman and CEO ofViacom decided to unlock value and splitthe company into a high-growth, high-riskdivision and a slow-growth division.

The case, while highlighting on thedifferent divisions of Viacom, also focuseson the restructuring of Viacom into twoseparate publicly traded companies.


• To understand the dynamics of businessrestructuring process

• To critically analyse the business modelof Viacom and its sustainability in thelong-run

• To understand how revenuemaximisation is achieved by unlockingvalue

• To understand the optimum mix ofbusiness portfolio.

Industry Television cable pay andBroadcast Network

Reference No. RTS0132KYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Viacom; Restructuring; Media Industry;CBS.




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Ford: Restructuring US OperationsThe North American operations of FordMotor Company (Ford), the leadingautomobile manufacturer in the world,exhibited a sharp decline in profitability in2005 with a decrease in production andfactory usage rate. The total number ofFord models sold in the US till November2005, was 2.7 million only, compared to 4million in 1995. Ford models were losingmarket share while competing with itsJapanese counterparts, like Honda, Nissanand Toyota. Its profit margins were furtherdepleted by the huge burden of legacy costsand pension obligations, due to its contractwith the United Auto Workers Union.

The case highlights the restructuringinitiatives undertaken by Ford, particularlythe various cost-cutting measures, as a partof its revival plan to recuperate from itslost position in the automobile industry.


• To understand the dynamics of the USautomobile industry

• To discuss the revival strategies of Fordto improve its profitability in the US

• To understand the impact of legacy costsin the business

• To discuss the transformation of atraditional company like Ford and thesubsequent change in the productportfolio in accordance to the changingmarket demands in the US.

Industry Auto ManufacturingReference No. RTS0131KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Ford; Employee separation plan;Restructuring; Cost-Cutting; US automobilemarket.

Intel Chipped to RestructureIn the beginning of 2006, Intel, the world'slargest chip maker, had started facingproblems due to its declining market share.During this period, the sale of itsmicroprocessors, chipsets, motherboardand flash memory had declined in all themajor geographic segments. Moreover, thecompany faced stiff competition fromAMD. Hence, Intel planned to restructure,resize and repurpose itself. The case givesan insight into Intel’s history and thecompetition that it faced from its majorcompetitor AMD. It discusses thechallenges faced by Intel and the strategicinitiatives taken by it to mitigate thoseproblems.


• To discuss the challenges faced by Intel

• To discuss the restructuring process

• To understand the chip industry

• To analyse the strategic initiatives takenby Intel.

Industry Microprocessor & DSPReference No. RTS0130KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Intel; Micro processor; Semiconductor;Pentium; AMD.

A.V Birla Group: CorporateRestructuring and Growth

In October 1995, Kumar Mangalam Birlatook charge of the INR 7, 200 crore AVBirla Group, after the death of his fatherAditya Birla. Birla Junior inherited India'sthird-largest Indian business group, with adominant presence in diverse businesses.He was just 27 at the time. Analysts weresceptical about the future of the group asthe 27 year old Kumar Birla had littleexperience. But the performance of thegroup has proved everyone wrong. Afterhis takeover, the group turnover has grownfourfold. Kumar Birla has revamped thebusiness portfolio and started lookingseriously at sunrise businesses like telecom,branded apparel, software, ITES (ITEnabled Services) and insurance throughjoint ventures and acquisitions. The grouphas also consolidated its competitiveposition in traditional businesses such ascement, aluminium, copper, VSF (ViscoseStable Fibre) and carbon black. Will thejunior Birla be able to manage andconsolidate the old businesses, and at thesame time transform the new economybusinesses from question marks into stars?


• To discuss corporate restructuring as agrowth strategy

• To discuss how companies perform therestructuring exercises

• To discuss when companies plan to dothe corporate restructuring exercises

• To discuss how corporate restructuringhelps a company to grow and achievesuccess

• To discuss the problems associated withcorporate restructuring programme.

Industry ConglomerateReference No. RTS0129KYear of Pub. 2006

Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

A V Birla Group; Corporate Restructuring;Birla Group; Turnaround Strategy.

Should Halliburton Drop its KBRUnit?

KBR, the engineering and construction unitof Halliburton was formed as a series ofmergers between companies like Dresserindustries, Brown & Root, and MWKellogg. KBR enjoyed leadership status inmany areas of its operations. But thelackluster financial performance of KBRalong with different controversies resultedin Halliburton share trading much belowexpectations. The case analysedoperational as well as financial synergiesamong the different units of Halliburtonas well as the trade off between the positivesand negatives of KBR. The case concludedwith an open ended question; on whetherHalliburton should divest KBR or functionas a single entity?

Pedagogical objectives

• To understand the concept of strategicalternatives with reference to Halliburtonand KBR

• To discuss the tricks to analyse politicalenvironment and use the best ofcompanies benefit.

Industry Commercial and heavyconstruction

Reference No. RTS0128KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Halliburton; KBR; Cheney; Iraq problem;Petrobus.

Reinventing Hewlett-Packardwith Mark Hurd

Hewlett-Packard’s new CEO and president,Mark Hurd took charge in April 2005,replacing the ousted Carleton Fiorina.With Hurd HP was looking for a solid, staidpersonality who would take the companyforward by bringing back lost market sharein products and services, and drive thevarious business units to realise their highpotential. The mandate given to Hurd bythe board was to steer the sprawlingcomputer and printer company into a moreprofitable and high-growth road. Industrywatchers wondered if Hurd’s strategies couldovercome the fallout of the $24 billionCompaq merger and help restructure HPto substantially improve bottom lines.

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The case details HP under Fiorina, impactof the disastrous Compaq deal, the adventof Mark Hurd, and the restructuring thatwas put in place. It discusses the changesintroduced by Hurd, the reorganisation ofdifferent units and the effect on thecompany’s financial performance.


• SWOT Analysis to understand HP’sposition in the business world when newCEO Mark Hurd took over

• Evaluate Mark Hurd’s Strategy Plan forthe future.

Industry ITReference No. RTS0127CYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Hewlett-Packard; Mark Hurd; CarlyFiorina; Compaq; Market leadership;Printing & Imaging; IT Services; Dell;Management Strategy; UNIX; IBM;Merger; Personal Systems Group;Offshoring; Decentralise.

Mattel’s Digital MakeoverMattel, the largest traditional toys andgames manufacturer in the US was aFortune 416 company as of 2006. It hadto its credit some of the renowned brandsin the traditional toys and games marketslike the Barbie, Hot Wheels, Matchboxand Fisher-Price to name a few. During thenew millennium the fate of Mattel, whosemain target customers were children,became questionable due to the change intheir attitude toward traditional toys andgames. Children were becoming moremature even at an early age due to theirincreased exposure to technology whichmade them skip traditional toys and gamesin favour of CDs, iPod, videogames andthe not so childish products like makeup,jewellery, and body spray. To overcomethis changing trend, Mattel adopted anumber of strategies like diversifying intorelated and unrelated fields, introducing newtechnologies into its toys and launchingthe kids’ version of popular consumerelectronics. Mattel also ventured into theWorld Wide Web and used the internet as achannel for brand building. In spite of itsefforts the annual domestic revenues ofMattel fluctuated and did not result insignificant top line growth. Added to these,Mattel also faced challenges from thetraditional toys and games business.

The case details the history of Mattel, thetraditional toy and game market, Mattel’sstrategies during the new millennium andalso briefs the challenges facing Mattel.The case facilitates learning of the basics

of Marketing – the 4Ps and application ofPorter’s Five Forces Model.


• To discuss Porter’s Five Forces Modelthrough the case

• To discuss the 4Ps of the Marketing Mixthrough the case.

Industry Traditional Toys and GamesMarket

Reference No. RTS0126CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

Traditional toys and games; Mattel;Hasbro; Barbie; Video games; Bratz;Hotwheels; Fisher Price; American Girl; KidsGetting Older Younger; Brand building;Radica Games; Kids marketing; Tickle MeElmo; Web page design.

Low-Cost Airlines in India –Emerging Trends and Survival

StrategiesIndia’s low-cost airlines are transformingthe way public have been traveling. Theboom is associated with sustained economicgrowth, growth in disposable income andliberalisation of Indian government’saviation policies.

But, as in the case of low-cost airlines worldover, there are continued loss making. Tocompensate the growth in flying seatcapacity, the low cost airlines are cuttingfares and have started offering lakhs ofseats at INR 1 and INR 100/-. As Boeing’sKeskar had observed, offering this low fareswould benefit no one and would stop afterfew eliminations and consolidations.

The challenges in Indian scene are many:rising ATF cost, internal competition,rivalry with Indian railways in short haulmarkets, shortage of trained and skilledmanpower, increasing labour costs,infrastructural hurdles and deficiency ofairports, airstrips etc.

To survive the situation resulting from thesechallenges would be to minimise theoperating cost, hedge the fuel pricing,improve load factor and absorb losses for aperiod of three years. To grow and expandthe low-cost airlines are expected to tappotential markets by enlarging the size ofair traveling segment by aggressivemarketing, improving the ancillaryrevenues by in-flight marketing, sellingadvertising spaces on board and on flightbody, selling packages with tours and hotelsalong with tickets. Being part of a growingtechnology trade related to aviationindustry like IT service providing,manpower hiring and training, spare

building, financing, airframe and hangarmaintenance etc., is considered as a toolfor growth and dominance.


• The low-cost airlines industry in Indiain the backdrop of global LCAs

• Challenges faced by the low-cost airlinesin India

• Survival strategies employed by them,specifically on cost-cutting

• Growth strategies adopted by them withan emphasis on participating in growingancillary trades

• Analysing the future of the low-costairlines in India.

Industry Low-cost Airlines in IndiaReference No. RTS0124CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

Low-cost Airlines; Load Factor: CostEfficiency in Low-cost Airlines; AirportModernisation in India; Rise in ATF Cost;Rising personnel cost for Airlines; AirDeccan; Kingfisher Airlines; GoAirSurvival; Strategies of Low-cost Airlines;Indigo Aircraft Leasing and Renting; E-ticketing Inflight advertising AncillaryRevenue for Low-cost Airliness.

Boeing – Lockheed Martin JV:Together to Survive

In June 2003, Lockheed Martin suedBoeing alleging that the company hadresorted to industrial espionage in 1998 towin the EELV contract. It accused Boeingof possessing 25,000 of its classifieddocuments. In July 2003, Boeing waspenalised, with the Pentagon canceling $1billion worth of rocket launch contractsonly to award them to Lockheed. Boeingwas also barred from bidding for rocketcontracts for a 20-month period whichexpired in March 2005. By May 2005,both competitors in spite of pending legaldisputes between them announced the jointventure. In early September 2005, it wasreported that Boeing was negotiating asettlement with the US. Department ofJustice in which it would pay up to $500million to cover the espionage issue andthe Darleen Druyun scandal.

On May 2nd 2005 Boeing and LockheedMartin announced a 50:50 joint venturecalled the United Launch Alliance (ULA)by merging the operations and productionof both their government space launchservices. Boeing Integrated DefenseSystems’ Delta IV and Lockheed MartinSpace Systems’ Atlas V were both rocket




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launchers developed for the EvolvedExpendable Launch Vehicle (EELV)programme intended to provide the UnitedStates government with competitivelypriced private spaceflight and assured accessto space. In September 2006, the Pentagonrenewed its support for the ULA and theFederal Trade Commission (FTC) gave itsanti-trust clearance on October 3rd 2006.Operations of the new company officiallybegan on December 1st 2006. The caseattempts to highlight the complex natureof the US Defense and Space launchmissions and the highly competitivemarket of international space launches.The background of the partners, the USgovernment, the competitors for theselaunch vehicles like Northrop Grummanand Space and situation analysis on thejoint venture is also presented.


• To understand the space launch marketin US

• To discuss Boeing’s and LockheedMartin’s stature in space launch vehiclemanufacturing

• To discuss US defence contract awardingmechanism

• To understand growing competition inglobal space launch business

• To understand various technologies inBoeing and Lockheed Martin’s spacevehicles and

• To discuss the future of US space launchvehicle’s market and players.

Industry Aerospace Industry in USReference No. RTS0123CYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Boeing Lockheed Martin Atlas V Delta IVEvolution of Expendable Launch VehicleIntegrated Defense systemsNorthropGrumman’s satellites launchesSpace X and Falcon rockets DoD and NASAspace launch contracts FTC pproval forJoint venture Heavy Payload lift rocketsCommercial Space launch marketPentagon’s Role in Space joint ventureShavit;GSLV; H-2A; Ariane rockets DARPAfunding for rocket development.

McDonald’s Redesigning ofOutlets – Change for the Better?

McDonald’s, the world’s largest hamburgerchain, was redesigning its stores worldwide.It was the first time in 30 years thatMcDonald’s had undertaken a majorrevamp of its store. This initiative was incontinuation of the “Plan to Win”strategy, which it undertook in 2003, to

improve all aspects of customerexperience. According to this plan,McDonald’s had revamped its menu,advertising and promotions. NowMcDonald’s wanted to refurbish its storesto enhance customer experience.McDonald’s felt that customer tastes andpreferences had changed over the yearsand in order to cater to their needs, thestore should upgrade its facilities andpresent a more trendy and modern look.

McDonald’s was however facing problemsin implementing this plan. The franchiseeswere reluctant to invest in the makeover.There was also the fear of the brand losingits nostalgia. The case facilitates discussionon issues related to brand management. Italso provides scope for discussion on chainstore and franchisee management.


• Is the redesigning of McDonald’s storesa right strategy?

• How would McDonald’s convince thefranchisees to adopt the store revamp?

• Will the new design of stores affect theMcDonald’s brand.

Industry Fast Food Retail ChainReference No. RTS0122CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

McDonald’s; Redesign; Retail Chain; Fastfood stores Plan to Win; Repositioning;Franchise; Branding Makeover; Brandattributes; Target customer Retailing; BrandEquity; Store Revamping; Strategy.

McDonald’s in Japan: From lossto Recovery

McDonald’s hamburgers had been part ofthe Japanese food cycle for 35 years. Theyaccounted for about 65% of the domestichamburger market and boasted the highestsales in the entire restaurant industry.McDonald’s, after experiencing a bad phasein 2005, witnessed a robust growth in Japanduring the second quarter of 2006. Annualsales had grown by 8.5% to US$2.8 billion,the same-store sales by 10.2% and per-customer spending by 8%.

In 2002, McDonald’s experienced its firstloss in 29 years, mainly due to strategicmistakes on the part of the management.Fear of the outbreak of mad cow disease inAsia and deflation in Japan were some ofthe reasons for the poor performance ofthe company. McDonald’s had to closedown stores which were not making profits.In 2005 it introduced the strategy of thelow-priced menu in order to attractcustomers and increase sales. Even thoughthis strategy yielded an increased customer

base, it did not result in more profits. Netprofits were down by 98%. It remained tobe seen whether McDonald’s under EikohHarada, President and Chief ExecutiveOfficer, would increase sales and sustainadequate growth.

The case allows discussion on how acompany made a turnaround successfullyfrom loss to recovery. It also analyses thestrategies adopted by McDonald’s in Japanto increase revenue turnover.


• To introduce to the students McDonald’soperations in Japan

• To throw light on the strategies followedby McDonald’s to introduce Western fastfood culture in Japan

• To give an idea about the fast foodindustry in Japan

• To list the various challenges faced byMcDonald’s in Japan

• To detail the strategy used byMcDonald’s to face the challenges.

Industry Fast-food retail chainReference No. RTS0121CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

McDonald’s; Retailing in Japan; RetailChain; Fast food stores; Franchise;Branding; Makeover; Brand attributes Lowprice Strategy; Store Revamping; BrandEquity Target customer; Retailing.

Philips’ Strategy Shift – TheTurnaround and After

Royal Philips Electronics of theNetherlands, one of the world’s biggestelectronics companies, and the largest inEurope, had over the years established itselfas a leading player in the consumerelectronics industry. The companywitnessed a slump in the late 1990s. GerardKleisterlee (Kleisterlee) who was appointedthe president and CEO, Royal PhilipsElectronics in 2002 was able to turnaroundthe company from its previous losses byintroducing a number of strategic changes.Despite considerable success, Kleisterleeadmitted that the company had not yetbeen fully transformed. Drafting plans forthe future, Kleisterlee wondered if thechanges he had introduced would continueto yield greater returns and what otherstrategic moves he should take, to makethe company more profitable.

This case offers scope for discussion onmanagement strategy and variousinnovative management initiatives thatcompanies adopt to achieve growth.

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• To discuss management strategies forgrowth

• To discuss turnaround strategies andmeasures to be taken to sustain the same.

Industry Electronics sectorReference No. RTS0120CYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Philips; Strategy; ‘One Philips’; Design;Innovation; Turnaround strategies;Partnership with competitors; ConsumerElectronics; Medical Equipment; Lighting;Joint Ventures; Corporate Culture;Competition; Chinese Medical Exports;Partnerships.

Sri Lankan Airlines – TheTurnaround Story and After

Sri Lankan Airlines, the national carrier ofSri Lanka, made a record profit of SriLankan Rupees 5.6 billion in 2004becoming the most profitable public sectororganisation during the year. However, theairline was in deep trouble since inception.Inspite of being known for its courteouscustomer service and fairly good in-flightfacilities, the company faced manyproblems such as old fleet, high fuel costs,labor problems and delayed flights. SriLankan Airlines was in great need of newinvestments to solve its problems.

Sri Lankan government decided to inviteDubai based Emirates Airlines to acquire30% stake in 1999. The stake wasincreased to 43% in 2001. Emirates Airlinewas cash rich to make investments andused its expertise to bring the turnaroundof the Sri Lankan Airlines. The casediscusses the challenges faced by Sri Lankanairlines and the strategies adopted byEmirates management to make the airlinesprofitable. The ongoing and futureproblems that might impact the airline’sprofitability are also discussed.


• To discuss how Sri Lankan Airlines madeprofits amidst lot of challenges

• To discuss ongoing future problems thatmay affect airline’s profitability.

Industry AutomobilesReference No. RTS0119CYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Sri Lankan Airlines; Turnaround strategies;Emirates Airlines; Asian Airline industry;

Profitability; Business Strategies;Operational strategies; HR Strategies Rebelattacks on Sri Lanka; Tsunami impact onairline industry; Peter Hill; Low costcarriers; Sri Lankan political environment;Tourism Industry.

SUN in 2006: Changing BusinessModel

Sun Microsystems (Sun), a US-basedleading computer company followed avertically integrated business model whereinit provided the entire range of hardwareand software requirements includingcomputer chips, computers, operatingsystem and programming language. Sun alsoput a strong emphasis on Research andDevelopment (R&D). The business modelhad enabled Sun to maintain its lead ininnovation and deliver many technologicalbreakthroughs over the years.

But since 2002, Sun had recorded lossesfor four consecutive years. To turn thecompany around, Scott McNealy(McNealy), CEO of Sun, had launchedseveral initiatives, but the situationcontinued to worsen. In 2005, Sun’s lossesamounted to $10.7 million on revenues of$11 billion.

The case discusses the relevance of Sun’sbusiness model in changing face of thecomputer industry in the US.


• To discuss the present/existing businessmodel of Sun

• To compare the business models of theother leading US computer companieswith that of Sun

• To discuss the relevance of Sun’s businessmodel in the changing face of thecomputer industry in the US

• To discuss the pros and cons of theinitiatives adopted by Sun to bring abouta change in its business model

Industry Software (IT) industryReference No. RTS0118PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sun Microsystems; Software(IT) industry;Vertical business model; Strong R&Demphasis; competitors namely Dell; IBM;Intel; Microsoft; Competitors’ strategiesand business models; Sun’s earlier strategies;Sun’s decline; Razor and Blades (R&B)revival strategy launched by Sun CEO ScotMcNealy; Effects of R&B strategy; CEOchange at Sun in 2006.

Sony’s Return to Glory?Once an unassailable brand, Sony has fallenbehind in critical product segments, suchas flat-screen TVs, DVD players, andportable digital music players. Faced withfalling electronics’ prices, toughcompetition from other manufacturers,and increased restructuring costs, Sony isalso heading for its first ever loss in adecade. In March 2005, Sony has appointedits first non Japanese CEO, HowardStringer, to turn the ailing companyaround.

The case outlines Sony’s rise, its declineand Stringer’s turnaround strategy. Stringermercilessly cuts costs while unifying therank-and-file, and curbing the internalrivalry among engineers that had led to aconfusing line-up of products, and thediminution of the once wanted brand. Hebelieves that high-definition products arethe key to Sony’s future success. He alsolaunches a makeover of the SonyStyle.comweb site and bets on electronic iPod likebooks for future success.


• The case traces Sony’s growth strategy

• It highlights the reasons behind itsstagnation

• It outlines Sony’s rise, its decline andStringer’s turnaround strategy.

Industry Consumer GoodsReference No. RTS0117PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sony Corporation; Howard Stringer;Consumer electronics market; Turningaround Sony; Nintendo; Problems at Sony;sonystyle.com; Sony Reader; NetworkWalkman; Mora; iTunes; iPod.

Burger King: Will it regain marketShare?

$11 billion-Burger King (BK) was also thesecond-largest burger chain in the worldwith 11,220 outlets in 61 countries. Aprivately-owned company, In addition toits popular ‘Whopper’ sandwich, the chainoffered a variety of burgers, chickensandwiches, salads, and breakfast items. In2004, the chain enjoyed 14.2% share ofthe fast food market in the world.

BK had changed hands five times since itsinception. The frequent change inmanagement and their respective strategieshad taken a toll on the company. BK’srevenue had been declining steadily since1999. The company had lost nine CEOssince 1999. In August 2004, Greg





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Brenneman (Greg) was appointed as the10th CEO. The case discuss about Gregstrategies to turn around the ailingcompany.


• To discuss the dynamics of the fast foodindustry

• To understand the factors leading to thedownfall of Burger King

• To discuss the attempts made by Greg tomake a turnaround.

Industry RestaurantReference No. RTS0116PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Whooper; Drive Thru; Take outs;Changing Management; Strategies; GregBenneman; Broiler; competitors; MarketShare; Have it your way; Enormousomelets; Morale Boosting; Service-qualitygood; Liquidity & IPO; Investors.

Rejuvenating SamsungIn 2001, Samsung is not content with beingone of Korea’s most successful companies,or even with outsmarting its Japanese rivals.It wants to become Korea’s first great globalcompany. CEO Jong-Yong Yun (Yun) istrying to put in place international systemsand practices to transform Samsung into aglobal company. Yun realises that Samsungcan no longer succeed by gaining marketshare at the expense of profits. He departsfrom the company’s traditional Japanesebusiness philosophy of life-timeemployment and respect for seniority.Samsung’s turnaround strategy is based onproviding leading-edge, stylish productsthat can be sold for a premium. To makeitself look and operate more like aWestern-style multinational, Samsungopens its operations to foreigners. Yunrealises that profits in the Digital Age weredirectly linked to being first to market.The case outlines Samsung’s initiatives tobecome a global brand.

Pedagogical Objective

• The case outlines Samsung’s initiativesto become a global brand.

Industry Consumer electronicsReference No. RTS0115PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

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Global Branding Strategy; GlobalMarketing; Product Design; Innovation;R&D; Restructuring; Advertising Strategy;

Work Culture; Streamlining Product Line;Time to Market; Product DevelopmentStrategy; Empowering Design Department;Most Powerful Brand.

Reinventing SamsungSamsung wants to become the mostpowerful consumer brand in the world. Thecase outlines Samsung’s R&D initiatives,global marketing strategy and holisticbrand campaign to reinvent brand Samsung.Samsung has changed the processes andprocedures in its design department andgiven its designers more power to influencenot just how products look but also theproducts’ functionality and application.The case traces brand Samsung’s emergenceas the world’s most powerful brand.


• The case outlines Samsung’s R&Dinitiatives, global marketing strategy andholistic brand campaign to reinventbrand Samsung. Samsung has changed theprocesses and procedures in its designdepartment and given its designers morepower to influence not just how productslook but also the products’ functionalityand application

• The case traces brand Samsung’semergence as the world’s most powerfulbrand.

Industry Consumer ElectronicsReference No. RTS0114PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Global Branding Strategy; GlobalMarketing; Product Design; Innovation;R&D; Restructuring; Advertising Strategy;Work Culture; Streamlining Product Line;Time to Market; Product DevelopmentStrategy; Empowering Design Department;Most Powerful Brand.

Six Flags: The TurnaroundManagement

Six Flags headquartered at New York,owned and operated a chain of amusementand theme parks in the US. Since 2001,the company had posted annual losses andaround $2.6 billion was lost during theyears. It was cited that heavy expansionand improper marketing insight were thecauses for the losses. So in order to reviveback its position, the new managementtook several initiatives to turnaround SixFlags. There was a mixed reaction in theindustry and analysts opined thatrestructuring would be a costly affair. Thecase focuses on the management turnaroundat Six Flags.


• To discuss about how theme parks wereperforming in the US

• To understand the background of SixFlags and its turnaround plan.

Industry EntertainmentReference No. RTS0113BYear of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

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Amusement; Theme Park; Struggle;Turnaround; US Amusement Park Industry;Marketing Strategy; Cross Promotions;Acquisition; Discounts; Credit CardProgrammes; Competition; Debt.

Levi Strauss in the US (Part B): TheGreat Turnaround Plan

Levi Strauss, the original blue jeansmanufacturer, has been steadily losingmarket share in the US. since 1996. Whenthe industry trend was to movemanufacturing facilities to developingeconomies in order to save on labor costs,Levi dragged its feet. It was also said tohave been sloppy in terms of keeping upwith the latest trends in fashion and hencelost its market leader position to TommyHilfiger, VF, Gap… and a whole lot of newentrants in the industry. Part A of the casetalks about this phase of Levi, from itsbirth. The issue here is: “How will Levistem the decline in its sales and catch upwith the industry trends?”

In the 21st century the company hasinitiated a series of comeback efforts aimedat recapturing its lost glory. Levi’s presidentand CEO, Phil Marineau, who joined thecompany in 1999, has engineered “TheGreat LS & Co. Turnaround Plan”, torevive the company. Part B of the casedetails these efforts by Levi and tries toanswer the questions raised in Part A.

Levi expected 2003, its 150th anniversaryyear, to be a significant year in the Plan.But due to the declining market, deflatingprices and tax return errors, the companysuffered a setback in its efforts. Since thenit looks like the company is plodding ondeterminedly on its comeback trail.


• To understand the importance of keepingin pace with the changing trends inbusiness.

Industry Apparel IndustryReference No. RTS0112BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

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Branded Apparel Industry; Levi Jeans;Dockers; Levi Strauss Signature; PhilMarineau; Tommy Hilfiger; VFCorporation; The Great Turnaround Plan;The LS & Co. Way; Red Wire DLX Jeans;iPod; Levi’s Red Tab; Outsourcing;Leadership; Global Sourcing Guidelines.

Levi Strauss in the US (Part A):Fading Denim?

Levi Strauss, the original blue jeansmanufacturer and largest apparelmanufacturer till the 1990s, has beensteadily losing market share in the US since1996. Levi was also said to have beensloppy in terms of keeping up with thelatest trends in fashion and hence was takenover by competitors such as TommyHilfiger, VF, Gap art A of the case talksabout this phase of Levi, from its birth.The case highlights the period in Levi’shistory from the 1980s since when RobertHaas, great-great-grand nephew of thefounder has been at the helm of affairs. Itis his Utopian management style whichexperts have pointed out as the reason forthe fading of the brand. Will Levi be ableto stem the decline in its sales and catch upwith the industry trends?


• To understand how Levi had become thelargest apparel manufacturer

• To understand the effectiveness ofUtopian management style on business.

Industry ApparelReference No. RTS0111BYear of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

keywords

Branded Apparel Industry; Levi Jeans;Dockers; Slates; Levi’s 501 jeans; Lee;Wrangler; Levi Strauss; Roberts Haas;LBO; Benevolent management style; jeansmarket; Supply Chain Initiative;Leadership; Global Sourcing Guidelines.

Reinventing DuPontDuPont, the leading US-based Life ScienceConglomerate (LSC) was founded in 1802.After nearly 100 years in the explosivesbusiness, the company realigned its focuson chemicals, banking on its polymerinnovations. But with decline inprofitability in the chemical business,DuPont’s focus shifted to a sustainablegrowth strategy aimed at increasing theuse of renewable energy and raw materials,and moving away from depletable resourceslike petrochemicals. Chad Holliday, who

took over as a CEO in 1998, gave equalemphasis to both chemical and life sciencebusinesses unlike other players in theindustry like Monsanto, Novartis etc.DuPont has emerged as a verticallyintegrated LSC after divesting its interestsin energy, pharmaceuticals and textiles andforming strategic alliances with BungeLimited and Tate and Lyle. Analysts werewondering how the new gamble would takeoff.


• Reinvention initiatives of Chad Holliday

• Operational details of a life scienceconglomerate like DuPont

• Vertical and horizontal integration usingjoint ventures and alliances

• Impact of long-term strategies on acompany’s finance.

Industry Life scienceReference No. RTS0110BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Life science industry; Conglomerates;DuPont; Chad Holiday Business Strategy;Sustainable growth strategy; Reinventionstrategy; Renewable energy; Bio-basedproducts; Polymers; Joint ventures;Acquisitions and divestitures; Marketingand distribution strategies; Vertical andHorizontal integration; Productdiversification.

Wal-Mart in Germany (RevampStrategies) – Part (B)

In 2005, Wal-Mart, the leading retailer ofconsumer goods and groceries worldwidereported a steady decline ever since its entryto Germany, way back in 1997. (Thereasons behind the decline has beendiscussed in detail in Part (A) of this case.)Wal-Mart tried to revamp itself by theintroduction of a series of initiatives,backing on which it planned to break-evenin Germany by 2005. However, it washighly sceptical whether they would finallyemerge as winners in Germany.


• Government regulations in German retailindustry

• Reasons for decline of Wal-Mart inGermany

• Revamp strategies of Wal-Mart inGermany.

Industry RetailingReference No. RTS0109BYear of Pub. 2005


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Wal-Mart; Germany; Retail Industry ofGermany; The Act against Restraints ofCompetition; The Commercial Asct; Euro;Singles' Shopping; German Management;Private lables; Smart Price; Hard discoutstores; Aldi; Price cuts; Governmentregulations; Wertkauf; Interspar.

Wal-Mart in Germany (Decline):Part (A)

In 2005, Wal-Mart was the leading retailerof consumer goods and groceries worldwide.It entered Germany in 1997 by theacquisition of two local hypermarketchains, Wertkauf and Interspar. Ever sinceits entry, Wal-Mart made losses in Germanyand its business declined steadily due to ahost of reasons. The case discusses on thereasons behind its failure. The revampstrategies of Wal-mart in Germany has beenhighlighted in Part (B) of this case.


• Retailing in Germany

• Entry of Wal-Mart in Germany

• Decline of Wal-Mart in Germany

• Reasons for decline of Wal-Mart inGermany

• Government regulations in German retailindustry.

Industry RetailingReference No. RTS0108BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Branded Apparel Industry; Levi Jeans;Dockers;Levi Strauss Signature; PhilMarineau; Tommy Hilfiger; VFCorporation; The Great Turnaround Plan;The LS & Co. Way; Red Wire DLX Jeans;iPod; Levi’s Red Tab; Outsourcing;Leadership; Global Sourcing Guidelines.

Sony Corporation: TurningAround the Television Business

Since 1968, Sony Corporation (Sony) haddominated the television industry with itsTrinitron Technology. Television, whichis part of the electronics segment,contributed 18%-20% to the group’srevenue. However, the company falteredduring the transition from the analog todigital technology. While competitors suchas Sharp, Samsung, Philips and LG investedheavily in the commercialization of FlatPanel Display (FPD) televisions, Sony






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continued investing in the Cathode RayTube (CRT) technology. With the demandfor FPD TV displacing CRT TV and averageselling price of tube TV declining rapidly,the company’s operating margins declinedfrom around 10% in 1991 to a meagre1.5% in 2004. In a bid to consolidate itsposition, the company, in December 2004,announced its exit from the PlasmaDisplay Panel TV market paying moreattention to the LCD and rear projectionTV business.


• To discuss about the missteps taken bythe management at Sony over the yearswhich led to the company losing itsmarket leadership position in thetelevision segment

• To highlight the corrective measurestaken by the company to improve itsproduct mix in a bid to increase revenuesand profitability.

Industry Consumer ElectronicsReference No. RTS0107BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sony; Trinitron; WEGA; Sony TV; DigitalTransmission; LCD TV; Television market;CRT TV; Sharp; Samsung; Televisionbusiness; HD TV; Sony Style Stores.

RadioShack’s Revival Plan: Wayto Success?

RadioShack was one of the leadingconsumer electronics retailers in the worldwhich had more than 7,460 outlets in andaround the US. In the early 2000, thecompany witnessed decline in its sales dueto unsuccessful products and new ventures.In 2005, in order to revive the strugglingcompany, its CEO, Edmondson formulateda revitalisation plan. Before the companystarted working on its revival plan,Edmondson had to resign and this resultedin uncertainty in the entire organisation.Though the new CEO, Claire Babrowskistarted working on the turnaround plans,analysts were sceptical about thecompany’s ability to rejuvenate itselfamidst its challenges.


• To understand about the consumerelectronic market in the US

• To discuss about the need for innovationto survive in business

• To understand how Radio Shack achievedgrowth and what led to its turnaround.

Industry ElectronicsReference No. RTS0106B

Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

RadioShack; US; Electronic retailer; 2006;Turaround strategy; business model;Solution strategy; business;storerationalisation; turaround plan; resumescandal; Best Buy; slow moving inventory;Circuit City; Tandy Radio.

Avon gives itself a MakeoverAvon Products, Inc. (Avon) is a leadingglobal beauty company, with over $8 billionin annual revenue in 2005. As the world’slargest direct seller, Avon marketed towomen in 143 countries through fivemillion independent Avon SalesRepresentatives. Avon product linesincluded popular brand names such as AvonColor, Anew, Skin-So-Soft, Mark, AvonSolutions and also an extensive line offashion jewelry and apparels. Althoughrevenues increased in 2003, 2004 and2005, its net income was $848 million in2005. There was stiff competition in theUS market from other cosmeticcompanies. To hold its feet in the US andalso to focus in other countries, especiallyChina, the company announced changesto its global operating structure to bringsenior management closer to its keybusiness geographies, strengthen globalintegration, speed information flow andposition the company for sustainablegrowth. Avon expected to incur costs toimplement these initiatives over the nextseveral years, with a significant portion ofthe total costs to be incurred during 2006.The company expected that benefits fromrestructuring would help to fund asignificant increase in consumerinvestment as well as improve thecompetitiveness of its direct sellingopportunity. Avon expected to increaseinvestment in advertising, marketingintelligence, consumer research andproduct innovation. These actions wereexpected to improve growth prospectsbeginning in 2007. It remains to be seenwhether Avon would be successful in itsmakeover plans.


• To elucidate about the US cosmeticmarket

• To understand how Avon wasrestructuring to maintain its position inthe global cosmetic market.

Industry CosmeticsReference No. RTS0105BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Avon; Direct selling; cosmetics; Anew;Restructuring; Makeover; Mark; AndreaJung; De-layering; Organisation structure;Make-up; solutions; color; L’Oreal; Procter& Gamble.

Transnet, The State-owned SouthAfrican Transport and Logistics

Group: Maria Ramos’Turnaround Strategies

Transnet is a transport and logisticscompany controlled by the South Africangovernment. Started in the late 1850s as arailway system, it got the company statusin 1990. Being a government organisation,it suffered from inefficiency, bureaucracyand over staffing. In January 2004, MariaRamos took over as the chief executive ofthe Transnet group. She implemented afour-point turnaround strategy for therevival of Transnet. She is overhaulingSouth Africa’s largest transport company,which controls the country’s rail and portoperations, divesting non-core assets,including South African Airways,embarking on a major capital expenditureprogram and improving customer service.Profits were up 57%, to $1.3 billion, forthe fiscal year that ended March 31st 2006,on a revenue of $4.1 billion.


• To understand the problems affectingthe financial health of Transnet

• To analyse the strategies implementedby Maria Ramos to turn Transnet around

• To debate whether disinvestments andlaying off employees are always the mostuseful tools to revive a company

• To understand and analyse how agovernment-controlled company, ifenthused and imbued with professionalmanagement, can be turned around intoa profitable venture.

Industry Logistics and TransportReference No. RTS0104Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

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Public sector enterprise; South AfricanRailways; South African Railways andHarbour (SAR&H); Metrorail; Overstaffing;Spoornet; National Ports Authority;Restructuring; Spin offs; The Blue Train;Revival strategies; Worker opposition.

Tyco International Ltd. in 2006In 2006, Tyco International Limited(Tyco) was a US$40 billion diversified

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manufacturing and services company whichoperated in four business segments: Fireand security, Electronics, Healthcare andEngineered products and services. Tycoshifted its operations to Bermuda whileoperated from New Jersey with itsadministrative and executive functionswere conducted from New York and NewHampshire. Tyco had operations in morethan 100 countries and employed 260,000people worldwide in 2006.

Dennis Kozlowski (Dennis) became CEOin 1992 and left the company in 2002 aswas charged of unethical accountingpractices, governance issues and fraudagainst company’s shareholders. In August2002, Edward Breen (Breen) became theCEO and brought about major changes atTyco. He rescued the company fromliquidity crisis and reduced the debt to US$10 billion in Jan, 2006 from US$28 billionin 2002. He brought the turnaround ofcompany by improving efficiency ofoperations through Six Sigma and closedthe unproductive units. The case discusseswhy a conglomerate restructured itselfthrough spin off strategy to focus on itscore business and increase its stock priceby gaining the investors’ confidence. Thecase highlights whether a three way splitwas the solution for the Tyco’s operationalproblems and will it make job easier forthe company. The leadership of Breen andstrategies adopted by him would help toovercome the financial crisis. Theemphasis of company had changed to havemore focus to achieve core competence.


• To discuss on the appropriateness of therestructuring efforts undertaken by Tyco

• To debate on the success of the split

• To discuss the mergers and acquisitionsstrategies followed by Tyco.

Industry Diversified ServicesReference No. RTS0103AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Tyco International; Manufacturing andServices Company; Fire and security;Electronics; Healthcare; Engineeredproducts and services; Bermuda basedconglomerate; unethical accountingpractices; Governance issues and fraud;Liquidity.

Ford Restructuring in 2006In January 2006, Ford Motor Co. (Ford),one of the Big Three in automobileindustry worldwide, announced to close 14factories and trim as many as 30,000 jobsby 2012. The company planned to cut

material costs by $6 billion and revive itsmoney-losing North America autooperations to profitability by 2008. Fordalso planned to make significant changesin its global operations and productengineering that would make new productdevelopment more efficient andeconomical. Would Ford be able to makeits presence felt in the market as before?


• To discuss the restructuring efforts ofFord to tackle problems likeunimpressive revenue growth, mountinglosses and damaged brands

• To discuss the turnaround strategiesfollowed by Ford.

Industry Automobile IndustryReference No. RTS0102AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Ford Motors; Automobile Industry; NorthAmerica; Bill Ford; Mark Fields; US; UnitedAuto Workers (UAW); Employee pricingfor everyone; Crossover; Special UtilityVehicle (SUV); minivans; Big Three;General Motors; Strategy; Restructure;Product Design; Marketing; Brand;Management.

Restructuring at SanyoIn 2005, Japan’s third-largest consumerelectronics maker, Sanyo Electronic Co.,Ltd., (Sanyo) faced a crisis. The companywas making losses in its home appliancebusiness and faced sluggish growth in itsdigital camera and mobile phone business.To add to its woes, in October 2004, anearthquake measuring 6.8 on the Richterscale caused extensive damage to itssemiconductor manufacturing facility inNigata. For the year ended March 31st

2005, Sanyo reported its biggest ever lossof US$1.1 billion and the companyexpected yet another loss of US$1.24billion for the year ending March 31st 2006

In September 2005, it announced the‘Sanyo evolution project’ under which thecompany planned to initiate company widestructural reforms. It included a massivereduction in workforce, closing down somemanufacturing facilities, scaling down theunprofitable businesses and othersignificant measures over a period of time.The top management at Sanyo aimed atshifting the focus of Sanyo from a generalconsumer electronics manufacturer towardsone focused on cutting edge environmentand energy products and services. Wouldthese reforms help in turning aroundSanyo?


• To investigate the challenges faced bySanyo

• To debate whether ‘Sanyo evolutionproject’ and other structural reformswould help in Sanyo’s turnaround

• To discuss the restructuring strategies ofSanyo.

Industry Consumer ElectronicsReference No. RTS0101AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sanyo; Japan; Consumer Electronics;Semiconductor plant; Sanyo evolutionproject; Think GAIA; structural reforms;management reforms; workforcereduction; scaling operations; corebusinesses; changing focus; turnaround.

Restructuring at MerckIn 2005, Merck was the world’s sixth-largest global pharmaceutical company. InNovember 2005, Merck announced a globalcost-cutting campaign. Several factorsprompted this move, including uncertaintyin its discovery pipeline and the loss ofsales revenue from the pain-reliever Vioxx,which was recalled in September 2004. Tensof billions of dollars in potential liabilityarose from the recall of Vioxx. Moreover,the company’s top-selling product, Zocor,would lose patent rights in mid-2006. Whenthe flow of new medicines from Merck’sresearch and development pipeline driedup, analysts criticised the company forconcentrating too much effort on a limitedrange of cures.

The case discusses the restructuring planof a pharmaceutical company which isfacing problems like unimpressive growthin R&D, blockbuster product recall, losson patent rights on its top selling drugs.


• To discuss the restructuring plan of apharmaceutical company which is facingproblems like unimpressive growth inR&D, blockbuster product recall, loss onpatent rights on its top selling drugs

• To understand the structure ofPharmaceutical industry.

Industry Pharmaceutical IndustryReference No. RTS0100AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

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Vioxx; Zocor; Gardasil; Rotateq; Zostavax;Patent; Rofecoxib; FDA; Research andDevelopment; Downsizing; DrugDevelopment; Pre-clinical test; ProductRecall; Prescribed Drug; Generic Drug.

EMC Corp.: The TurnaroundStarted in 1979 as an agency to sell officefurniture, EMC Corp. had been the leadingproducer of disc storage devices in the1990s. However, the company was hit hardby technology bubble burst in 2000 and forthe first time in its history it incurred lossesin 2001. The same year, Joseph Tucci tookover as the CEO and president of EMCand to revive the company he acquiredmany small and start-up software firms,which would help the company to diversifyinto the software business. By diversifyingits business portfolio, EMC returned toprofitability in 2003 and in July 2006, withrevenues of $9.6 billion, it was ranked No.249 in the Fortune magazine’s list ofAmerica’s largest industrial corporations.


• To understand the factors that enabledEMC to become the biggestmanufacturer of disc storage devices inthe world

• To analyse the reasons for EMC’s lossesafter the technology bubble burst in2000

• To discuss how the acquisitions of manysmall software firms enabled EMC tocome out of spiralling losses

• To analyse how EMC’s transformationfrom being a hardware manufacturer toa complete solution provider ininformation management and securityhelped it to revive its fortunes.

Industry Magnetic Disk StorageReference No. RTS0099Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Magnetic Storage Devices; Joe Tucci;Mergers and Acquisitions; TechnologyCompanies; Diversification; Symmetrix;Add-on memory; Technology Bubble Burst;Information Lifecycle Management;Fortune 500 Companies; Revival of EMC.

Chiquita Brands International:Turnaround Strategies

Chiquita Brands International is one of thelargest producers and distributor of bananasin the world. In the 1990s, the EUregulations restricting banana imports intoEurope hit the company hard as Europe

had been its major market and it hadinvested heavily to increase productionexpecting an open market across Europe.Due to rising debts, despite divesting manyof its businesses, Chiquita filed forbankruptcy in 2001. In March 2002, CyrusFreidheim was appointed as the CEO andunder his leadership, the companyunderwent a restructuring to reduce its debtsand increase its revenues. However,Chiquita still faces the challenge of thenew banana import regulations in Europe,which has been implemented since January2006.


• To highlight the factors that enabledChiquita to become one of the largestfood companies in the world

• To analyse the reasons that forced thecompany to file for bankruptcy in 2001

• To discuss the various strategiesimplemented by Cyrus Freidheim thatrevived Chiquita

• To debate on the future challenges ofChiquita and whether the transformationplan would enable the company toovercome them.

Industry Fresh Fruit & VegetableProduction

Reference No. RTS0098Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Banana fruit company; Environmentpollution; Rain Forest Alliance; EURegulations; Quota Restrictins; CorporateSocial responsibility; Core Values; Code ofConduct; SA8000 Labour Standards; SocialAccountability International; United FruitCompany; Banana exports.

Konica Minolta: TheRestructuring Strategies

On January 19th 2006, Konica Minoltaannounced that it would withdraw from theglobal camera and colour film business. Italso decided to divest a plant, intellectualproperty rights and customer serviceoperations of its cameras and other assetsof digital SLR cameras to Sony for anundisclosed amount and discontinueproduction of its compact cameras byMarch 2006. Konica Minolta decided tofocus on areas that did not directly caterto individual consumers but to offices andother organisations, such as digitalMultifunction Products (MFPs), laserprinters, colour office copiers, liquidcrystal display materials, medicalequipment and optical devices. Thesedecisions were taken after the company

incurred losses to the tune of $543 millionin financial year 2005-2006 in its digitalcamera division.


• To understand the reasons that promptedKonica Minolta to close down its globalcamera and colour film business

• To discuss the restructuring strategiesadopted by the company to turn itsfortunes around

• To debate whether Konica Minolta wouldbe able to reinvent itself from a highlyregarded camera manufacturer to aprovider of multifunction products.

Industry Printing & Imaging EquipmentReference No. RTS0097Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Konica Minolta; Sony; Digital cameramarket; Commoditisation; Digital Single-Lens Reflex (SLR) cameras; Growth ofcamera phones; Prosumer cameras;Minilabs; Revamp of managementstructure; Restructuring strategies; Digitalmulti-function products.

Sony: Sir Howard Stringer’sStrategic Choices

Since the late 1990s, Sony Corporation,known for its pioneering products like theWalkman, the compact disc and thePlayStation, had been witnessing fiercecompetition from companies like AppleComputer, Matsushita Electric, Sharp andSamsung. Further, due to several unrelateddiversifications, Sony’s shares lost two-thirds of their value since 2000. Despiteseveral cost-cutting measures initiated bythe former chairman, Nobuku Idei, Sonyfailed to contain declining sales andoperating losses. In June 2005, Sir HowardStringer, the then chairman of SonyAmerica, was appointed as the newchairman of Sony Corporation (the firstever non-Japanese to be Sony’s CEO) andwas handed over the mantle to steer thecompany out of the financial crisis.


• To analyse the reasons behind the declineof Sony from a global consumerelectronics behemoth to trail behindother competitors like Samsung, LG andApple

• To discuss the cost-cutting andrestructuring strategies at Sony and whythey failed to turn Sony around

• To debate on the strategies announcedby Sir Howard Stringer and whether they

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would enable Sony to regain its leadershipin the global market.

Industry Consumer ElectronicsReference No. RTS0096Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Consumer electronics; Walkman; Compactdisc; Mobile communication; Global TVmarket; Digital camera; Cost restructuring;Supply chain management; Internet readydevices; Silo organisational structure;Product interoperability; Structural re-organisation; Group convergence strategy;Middleware; Profit structure.

Sara Lee: CEO Brenda Barnes’Restructuring Strategies

By the turn of the 21st century, Sara LeeCorp., which started as a food productsmanufacturing company in the US in 1939,had transformed into a $20 billionconglomerate of diversified businessesranging from Jimmy Dean sausages, Kiwishoe polish, Hanes undergarments to Ambipure air freshener and Sara Lee bakery.However, a series of expensive butunyielding acquisitions, lack of investmentin new product innovation, negligibleexpenditure on advertising and the decliningreturns from its unrelated businesses startedaffecting the bottom line of Sara Lee. Theproblem was further compounded by risingcommodity prices, sluggish European andUS economies, increasing bargainingpowers of mega discount stores like Wal-Mart, fluctuating exchange rates and thecompany itself was mired a series ofcontroversies. Although the companyendeavoured to address the situationthrough several restructuring measuresunder different CEOs, it failed to overcomeits challenges. In February 2005, BrendaBarnes took over as the CEO of Sara Leeand embarked upon one of the biggestrestructuring tasks in the US corporatehistory to revive the fortunes of thecompany.


• To comprehend how Sara Lee had grownas a market leader in the US by focusingon coherent business expansions

• To discuss the factors that prompted SaraLee to foray into several un-relatedbusinesses in the mid-1990s and thechallenges that are faced by companieswith diversified business portfolios

• To analyse the reasons behind the failureof various restructuring initiativesundertaken by different CEOs to boostthe sagging financial health of thecompany

• To debate whether the new restructuringstrategies of Brenda Barnes would be ableto turn Sara Lee’s fortunes around.

Industry Food and BeveragesReference No. RTS0095Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Steven McMillan; John Bryan; Sara Lee’srestructuring strategies; Divestiture; JimmyDean; De-verticalisation; New vision; BillMar; Senseo; Acquisition of Earthgrain;Listeorisis controversy; Sara Lee BakeryGroup (SLBG); Consolidated FoodCorporation.

Burger King’s Turnaround:Courtesy the Private-equity FirmsThe world’s second-largest fast foodrestaurant has been facing declining profitsand market share since the late 1990s. In2002 three private-equity firms boughtBurger King and turned the company’soperations around. In 2006 the private-equity firms announced their exit throughan IPO. These events have brought to thefore the concerns whether the companyhas been actually turned around, andwhether IPO is the appropriate exitstrategy.


• To discuss Burger King’s turnaround

• To understand the various exit strategiesavailable to the private-equity firms

• To analyse whether IPO is the right exitstrategy for the owners of Burger King.

Industry Fast FoodReference No. RTS0094Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Private-equity firms; Initial Public Offer(IPO); Customisation; CustomerRelationship Management (CRM);Franchisee relationship management; Exitstrategy for private equity firms; Troubledtimes; Positioning strategy; Marketing;Culture; Customer centric approach;Restaurant design.

Swissair’s ‘Hunter’ Strategy andthe “Grounding”: The Lessons

With Switzerland rejecting the membershipto European Economic Area, Swissairencountered restriction to operate in otherEuropean countries. Swissair, known forits quality, reliability and innovations,

adopted the ‘Hunter strategy’ to expandbeyond its domestic market. Based onMcKinsey’s recommendations, Swissairexpanded its operations by acquiring stakesin different airlines. However, the strategyfailed with mounting debt and continuouslosses resulting in liquidity crunch. Liquiditycrisis finally led to the grounding of theSwissair fleet on October 2nd 2001. Basedon the events on the last days of the airline,a movie named ‘Grounding: Last days ofSwissair’ was made in Switzerland. Themovie, which has brought alive the nationaldisaster, not only raises the question aboutwhose was responsible for the groundingof Swissair but has once again brought intothe forefront the issue of corporategovernance.


• To discuss Swissair’s ‘Hunter strategy’and its failure which resulted in thegrounding of Swissair

• To discuss Swissair’s restructuring effortsto revive its operations

• To discuss the corporate lessons to belearnt from the movie ‘Grounding: Lastdays of Swissair’.

Industry AviationReference No. RTS0093Year of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

keywords

Switzerland; Deregulation; Aviation;Hunter strategy; Qualiflyer alliance;Grounding: Last days of Swissair; MarioCorti; Brand image; Corporate governance;Crisis management; Business ethics;Bankruptcy; Growth strategy;Restructuring.

Japan Airlines’ Losses Mount: TheRestructuring Strategies

Japan Airlines Corporation (JAL), foundedin 1952, was the oldest airline company ofJapan. JAL had been running its business asa monopoly in an environment highlyregulated by the Japanese government.However, with the subsequent deregulationof the Japanese Aviation industry in 1985,it had to face competition from otherairlines. A series of highly publicised safetygaffes forced its customers to switch tocompetitors’ services, endangering JAL’ssurvival. An internal power struggle, whichhad been brewing for some time, coupledwith harsh media-led criticism eventuallyled to a change of leadership in thecompany. Though the new leadershipformulated a restructuring package,scepticism run high about the success ofthe restructuring process.





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• To discuss the effects that change inenvironment has on a corporation’sfortunes

• To discuss the management problemsthat government-owned companies facepost privatisation

• To discuss the evolution of the JapaneseAviation industry and the competitiveenvironment that ensued subsequent toderegulation of the industry

• To discuss problems that JAL was facingand their causes

• To discuss JAL’s restructuring strategyand its potential success.

Industry Aviation IndustryReference No. RTS0092Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Available

keywords

Japan Airlines; Civil aviation industry inJapan; Civil Aeronautics Law; Internationalcarrier; 45-47 framework; Deregulation;Freedom rights; Aggregate cost formula;Zonal airfare system; Flag carrier; JapanAirlines Corporation’s (JAL’s) safetyrecord; Restructuring strategies;Bureaucratic culture; Power struggles; Costcutting measures.

Volkswagen: The (Proactive?)Restructuring Strategies

Volkswagen, the leading German carmaker,produced better financial results for 2005compared to the year before. The companyattributed this success to its restructuringprogramme, “Formotion” which was startedin 2004 and continued through 2005, forthe reduction of costs in the manufacturingprocesses. Despite the good results, thecompany planned to continue with itsrestructuring plans, as the company officialsfelt that in the long run its cost structurewas still not justifiable. Being the largestcarmaker in Europe, Volkswagen was alsotargeting the North American market whereit has been facing severe competition frommajor carmakers like GM, Ford and Toyota.


• To understand the “Formotion”programme initiated at Volkswagen toreduce the costs associated with thecompany’s manufacturing process

• To discuss the reasons behindVolkswagen’s continuation of itsrestructuring process

• To discuss the strategies beingcontemplated by Volkswagen for its USoperations

• To debate whether Volkswagen would beable to continue its success in the futurealso.

Industry Automobile ManufacturingReference No. RTS0091Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Restructuring strategies; Dr. BerndPischetsrieder; Cost cutting; Platformsharing; Cannibalisation; US automobilemarket; Legacy costs; Volkswagen;Ferdinand Piech; Formotion programme;Comparative labour costs.

Anders Moberg at Ahold:Turnaround Strategy with

Re-engineering the Value ChainIn February 2003, Ahold, the largest retailerin the Netherlands, was charged withsignificant accounting irregularities. Thecompany was accused of overstating itsrevenues and certain illegal transactions.The company also went through liquiditycrisis and was on the verge of bankruptcy.To turn Ahold’s fortunes around, AndersMoberg (Moberg), the ex-IKEA executive,was appointed as the CEO in May 2003.To stabilise the company, Mobergintroduced a three-year ‘Road to recovery’programme. This involved a majorrestructuring process at Ahold through 2003to 2005. The programme brought stabilityto the company, and for 2006 Mobergplanned to improve the company’sprofitability through effective re-engineering of the value chain. However,there are many challenges ahead and unlessthey are addressed quickly and effectively,Ahold could become a soft target fortakeover.


• To understand the crisis at Ahold due toa major accounting scandal

• To understand the ‘Road to recovery’programme introduced by Moberg tobring in stability to the company

• To discuss the relevance of Moberg’sturnaround strategy, which included re-engineering the value chain, to improvethe company’s profitabilty

• To discuss how divestments, logistics andsupply chain savings, efficient businessmodel, cost-cutting measures and privatelabelling of brands can become effectivestrategies

• To debate whether Moberg’s strategieswould be able to save the company frombecoming a takeover target.

Industry RetailReference No. RTS0090Year of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

keywords

Ahold; Anders Moberg; Re-engineering;Value chain; Financial crisis; Corporategovernance; Turnaround strategies; Supplychain and logistics; Road to recoveryprogramme; Divestments; Business model;Cost-cutting measures; Crisis management;Accounting scandal.

Motorola’s Turnaround: EdZander’s “Culture Strategy”

Initially founded as the GalvinManufacturing Corporation in 1928,Motorola was known for being the first tomanufacture the hand-held radio and pager.It was the leading manufacturer of cellularhandsets and semiconductor chips. But theearly 1990s brought in a number ofchallenges for the company. The companydid not envision the surge in demand fordigital products. Although the then CEOChristopher Galvin made attempts to revivethe company, the results were not visible.Edward Zander (Zander) was appointed asthe CEO in 2003 to bring a new perspectiveinto the company. Zander reorganised thevarious units and increased the focus on thedevelopment of new products. His strategiesworked and the company climbed to thenumber two spot in the cellular handsetmarket with the introduction of the ‘Razr’V3 handset. However, questions remainabout the company’s turnaround and thetough obstacles that Zander could face inthe future.


• To highlight how a market leader, if itreads the market wrong, can be forcedto be a follower

• To understand Motorola’s strategicmissteps if any

• To discuss the need for the turnaroundat Motorola

• To underscore the importance ofleadership in managing troubled times

• To discuss the effectiveness of EdwardZander’s strategies to turn the companyaround

• To debate on further steps to be takento defend and enhance Motorola’smarket position.

Industry TelecommunicationReference No. RTS0089Year of Pub. 2006Teaching Note AvailableStruc.Assig. Available

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Motorola; Edward Zander; Razr V3;Cellular handsets; Iridium; Pebl; Slvr;Culture; Strategy; Semiconductor business;Seamless mobility; Apple iTunes.

The Fiat Group: Rebuilding its CarBusiness

Fiat Auto, the auto division of the Italianconglomerate Fiat Group, had gained hugesuccess during the 1980s and 1990s. Butwith increasing competition the company’sas well as the group’s fortune starteddeclining and for three years – 2001, 2002and 2003, the group reported negativeprofits. To turn the fortunes around, SergioMarchionne (Marchionne) was appointedthe CEO in 2004. Marchionne broughtchanges in the management structure andintroduced new car models. In August 2005,he introduced a new three-year industrialplan to re-launch the entire Fiat Groupand bring recovery to the auto division ofthe group. The success of the plan wasseen at the end of 2005, when the financialresults of the group showed profits. Butcritics were doubtful whether this successwould continue in the coming years in theface of competition from other carmanufacturers.


• To understand the problems being facedby Fiat Group, especially its auto division

• To discuss the underlying reasons behindsuch problems

• To discuss the appropriateness orotherwise of CEO Sergio Marchionne’sstrategies to turn the fortunes of theauto division and the group around

• To debate what is the likely future ofthe group, especially the auto division

• To debate what are those practices thatmust be institutionalised independent ofthe CEO.

Industry Auto manufacturingReference No. RTS0088Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Fiat Group; Fiat Auto; Businessdiversification; Sergio Marchionne;General Motors; Put-out option; Industrialplan; Customer preferences; Joint ventures;Foreign competition; Governmentprotection schemes; Restructuringprogramme; Organisational change;Capacity utilisation.

Daimler-Chrysler toDaimlerChrysler: Dieter Zetsche’s

(The New CEO) RestructuringStrategies

Daimler-Benz and Chrysler Corporationmerged to form DaimlerChrysler in May1998. The merger was considered anhistorical merger of mass with class.However, soon after the merger, theChrysler division of the company beganto incur losses and this in turn had anadverse effect on the Mercedes division,which meanwhile had begun to witnessquality problems. DaimlerChrysler’s otherinitiatives of acquiring a stake in Japaneseautomaker Mitsubishi and the two car unitsSmart and Maybach, failed to deliverprofits. This led to increasingdiscontentment towards the leadership ofJurgen Schrempp, the former CEO and theprime architect of the merger. On January1st 2006, Dieter Zetsche, the former CEOof the Chrysler Division, who hadsuccessfully turned Chrysler’s Americanoperation around, replaced Schrempp asthe new CEO of the company. Zetscheannounced a restructuring plan on January24th 2006 that mainly focuses onintegrating the Mercedes and Chryslerdivisions to increase the profitability ofDaimlerChrysler.


• To highlight the reasons behind themerger of Daimler-Benz and Chrysler

• To focus on the reasons behind the poorperformance of DaimlerChrysler afterthe merger

• To provide a scope to discuss therestructuring plan of Zetsche andwhether it would be able to turnDaimlerChrysler around

• To debate whether the new CEO canintegrate two opposing cultures.

Industry AutomobilesReference No. RTS0087Year of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

keywords

Mergers in global automobile industry; Crosscultural mergers; Mercedes-Benz;Chrysler’s financial downturn; Restructuringstrategies; Leadership issues atDaimlerChrysler; Culture change atDaimlerChrysler; Turning around Chrysler;New management model atDaimlerChrysler; Synergies of mergers inthe automobile industry.

SABMiller’s Miller Brand in USA:The Turnaround

South African Breweries (SAB), a beer andother cold beverages manufacturer, has anear total monopoly in its domesticmarket. SAB commenced its globalexpansion only in the mid-1990s after theinstallation of a democratic governmentin South Africa. While making efforts togain a foothold in the US, the world's mostprofitable beer market, SAB acquired thecountry’s second-largest beer maker,Miller, in 2002. Miller was a declining USbrand having continuously lost marketshare to its competitor and market leaderAnheuser-Busch throughout the 1990s.The new company SABMiller, brought inNorman Adami, a veteran SAB executivefrom South Africa to revive the Millerbrand.


• To discuss the turnaround strategies ofSABMiller under Norman Adami.

Industry BeveragesReference No. RTS0086Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Turnaround strategies; Norman Adami;Anheuser-Busch; Brand image; Brandbuilding; Organisation culture; Marketingstrategies; Philip Morris Altria Group;South African Breweries (SAB); Miller Lite;Bud Light Budweiser; Beer market in theUS; Promotion and distribution strategies.

Lear: The US Automobile PartsMaker’s Restructuring Strategies

Southfield (Michigan)-based LearCorporation, one of the world’s largestsuppliers of automotive interiorcomponents and systems, providescomplete seating systems, interior trimproducts and electrical & electronicssystems. Since 2000, the company has beenwitnessing flat sales and increased rawmaterial costs. Further, it has also been hitby declining business from its majorcustomers like GM and Ford that havereduced production in the face of stiffcompetition from Asian carmakers. Tominimise its losses, Lear has announced aglobal restructuring plan in June 2005,which includes factory closures in NorthAmerica and Western Europe apart fromtransferring some of its manufacturingfacilities to low-cost regions like EasternEurope and Asia.


• To discuss the restructuring strategies ofLear while highlighting the perils of over





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dependency of any supplier on a handfulof major customers.

Industry Auto Parts ManufacturingReference No. RTS0085Year of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

keywords

Lear Corporation; Automobile partsmanufacturing market; Automobile interiormanufacturers; Auto industry; Cost cutting;Expansion strategies; Localisation;Restructuring strategies; Delphi; Visteon;Acquisitions and partnerships;Competition; Market share; Oil prices;Challenges for Lear.

Merrill Lynch: Reviving its AsianBusiness

Merrill Lynch & Co. was the first USbrokerage firm to start its operations inJapan. Since the late 1960s, Merrill Lynchplayed a significant role in the developmentof the capital markets in the Asia-Pacificregion. It also became the first US financialmanagement and advisory company toopen an office in China. However, afterthe dotcom burst in the late 1990s followedby the September 11th 2001 terroristattacks in the US, Merrill Lynch was forcedto streamline its international operationssignificantly in the Asia-Pacific region.Since 2004-2005, it has again startedlooking out for more business partnershipsto revive its fortunes in Asia.


• To highlight the growth as well as thesubsequent decline of Merrill Lynch inAsia

• To discuss the revival strategies ofMerrill Lynch for its Asian business.

Industry Retail BrokeragesReference No. RTS0084Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Merrill Lynch; Goldman sachs; Growthstrategies; Competition; Morgan Stanley;Lehman Brothers; Charles Schwab; Revivalstrategies; Financial market in Asia; On-line trading; Acquisitions and partnerships;Brokerage scandals; Investors; Restructuringstrategies; Challenges for Merrill Lynch.

Krispy Kreme Doughnuts Inc.:Turning the Turnaround

Strategies Around?Since its inception in 1933 as a smalldoughnuts store in the US, Krispy Kreme

has transformed into a large chain of 420stores worldwide by the early 21st century.However, the low-carbohydrate craze inthe US coupled with the company’soverdependence on doughnuts led to itsfirst quarterly loss in May 2004 and itsshares declined by 29.2% to $22.51.Further, many of its franchisees wentbankrupt and the company was forced tore-acquire them. However, theshareholders alleged that the company hadmisreported its profits and had also failedto issue a profit warning when it knew thatits prediction for the quarter earnings wouldfall short. This was followed by a Securitiesand Exchange Commission (SEC) enquiryin July 2004. Under such circumstances,the chief executive officer, ScottLivengood, stepped down in January 2005and Stephen Cooper, a renownedturnaround specialist, was appointed to turnthe company around and refurbish itsdeclining image.


• To highlight the troubled times at KrispyKreme and the turnaround strategiesinitiated by Scott Livengood

• To discuss whether Stephen Cooper alongwith Scott Livengood revive the saggingfortunes of the American doughnut icon.

Industry Specialty EateriesReference No. RTS0083Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Turnaround strategies; Reasons for businessfailure; Stephen Cooper; Scott Livengood;Troubled times at Krispy Kreme; CarverRudolph; Low carbohydrate craze in US;Accounting controversies; Securities andExchange Commission enquiry in KrispyKreme; Warehouse management;Acquisitions and partnerships; Restaurantsand cafes business in US; Restructuringstrategies; Cost-cutting strategies;Expansion through franchisee.

Goodyear’s Troubles: CEORobert Keegan’s Restructuring

StrategiesIn the 1990s, Goodyear, the iconic US tyremanufacturer witnessed a decline in itsprofits. Its debts increased as Goodyearfaced successive years of recession, risingraw material costs and overcapacity in themarket. After several unsuccessful attemptsto turn the company around, RobertKeegan, a former Kodak executive, wasappointed as the chief executive officerand chairman of the company. RobertKeegan launched a detailed restructuringplan to turn the financially troubledcompany around.


• To analyse the reasons behindGoodyear’s slack market performance

• To discuss the restructuring strategiesadopted by Robert Keegan and theprobability of a successful turnaround.

Industry Rubber and Plastic ProductManufacturing


keywords

Restructuring strategies; Turnaroundstrategies; Management change; Dealerrelationships; New product developments;Tyre industry; Acquisition strategy;Management restructuring; Organisationalchange; Assurance tyre line.

GM's Growing Troubles: RickWagoner’s Restructuring

Strategies and the ChallengesGeneral Motors (GM) incurred losses tothe tune of $1.6 billion in the third quarterof 2005 mainly arising from its NorthAmerican operations. Rick Wagoner, ChiefExecutive Officer (CEO) of GM,announced that the company wouldeliminate 30,000 jobs and close down fourof its 20 assembly plants in North Americaby the end of 2006. The management citedrising health care and labour costs as majorreasons for the losses. But the United AutoWorkers (UAW) felt that the vehicledesign, product development and foreigncompetition were the major reasons forthe company’s poor performance. Theopposing stands taken by the managementand the labour union had stallednegotiations concerning reduction ofhealth care costs, job cuts, outsourcing andsub-contracting. Finally on October 17th

2005, GM announced its deal with theUAW, which agreed to reduce its healthcare costs for retirees by $15 billion andits annual employee health care expensesby $3 billion a year. Other than reducingcosts, GM has also planned to increase itsrevenues by refocusing on sales, marketingand development of new models. It evenplanned to sell a majority of its stake inthe profit-making General MotorsAcceptance Corporation. Despite this, inDecember 2005, S&P (Standard & Poor’s)slashed GM]s credit rating to ‘junk’, fromBB to B, and expressed concern about theturnaround efforts. It also said thatbankruptcy was a distinct possibility in thenear future.


• To provide an insight on the historicalperspective about the legacy costs at GM

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• To discuss whether Rick Wagoner couldturn around the company by bringingdown the legacy costs while highlightingthe possible effects of bankruptcy on itssuppliers, customers, creditorsandinvestors.

Industry AutomobileReference No. RTS0081Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

General Motors; Rick Wagoner; US carindustry; Toyota; Competition; Labour;Health care costs; Suppliers; Customers;Creditors; UAW (United AutomobileWorkers); Contracts; Negotiations; AlfredP Sloan Jr; Delphi.

Acer Co. Ltd.: The CorporateTurnaround

In 2005, Acer had become the world’sfourth-largest branded personal computervendor, with a market share of 4.4% takingit to the same league as Dell, HP andLenovo. In 1999, Acer had withdrawn fromthe US computer market in the wake ofhuge losses and in turn underwentrestructuring, spinning off several differentbusiness divisions. Acer succeeded in all themajor markets of the world by embracingtraditional marketing channels – in an agewhen its competitors were following directselling methods. Restructuring had paid offand the PC (Personal Computer) divisionretained the brand name Acer and iscurrently challenging the bigwigs of thebusiness. Acer’s achievement is rated to bea remarkable turnaround, considering itsmiserable performance at the turn of the21st century. Acer has set a goal ofbecoming the third-largest company, andaims to surpass Lenovo by 2008. If thecompany achieves its goal, it would be afitting culmination to the turnaroundefforts.


• To discuss whether the turnaroundstrategies of Acer would enable thecompany to surpass Lenovo to becomethe third-largest PC vendor by 2008.

Industry Computer HardwareReference No. RTS0080Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Global PC (Personal Computer)manufacturers; PC manufacturers fromTaiwan; Cost control at Acer; Acer’sacquisitions; Acer’s internationaloperations; Original equipmentmanufacturers; Asian financial crisis;

Turnaround strategies of Acer.

Siemens AG’s Troubles: KlausKleinfeld’s (The New CEO)

Restructuring StrategiesIn January 2005, Klaus Kleinfeld(Kleinfeld) succeeded Heinrich von Piereras the 11th CEO of Siemens AG. Although,under the tenure of Heinrich von Pierer,Siemens had achieved significant sales andprofits, the operating profit margin of thecompany was only 5% as compared to 11%achieved by its competitor, GeneralElectric. Further, the increasingunemployment and labour cost in Germanycoupled with several loss-making units inSiemens were also among the majorproblems being faced by the company.Kleinfeld, known for his successfulturnaround of the ailing Siemens unit inthe US, is expected to restructure SiemensAG. However, analysts were sceptical aboutKleinfeld’s US style of management.


• To highlight the problems faced bySiemens

• To discuss the strategies adopted byKleinfeld in reviving Siemens AG.

Industry Not ApplicableReference No. RTS0079Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Siemens; Klaus Kleinfeld; BenQ; GeneralElectric; Leadership style; Restructuringstrategy; Germany; Europe; US;Turnaround; Management style.

Telstra, the AustralianTelecommunications Company:

CEO Sol Trujillo’s‘Transformational’ Strategic Plan

After holding a major share in the localtelecommunications market in Australia,Telstra started facing competition fromother mobile phone operators. To countercompetition the government decided toprivatise Telstra. Solomon Trujillo wasappointed as the new chief executive officerof the company in July 2005 to formulatea strategy, which could enable Telstra toregain its market position. But the strategicplan announced by Trujillo was met withscepticism from analysts and politicians.Analysts were doubtful whether Telstra couldaccomplish the targets it set for itself.


• To discuss whether the plan of actionannounced by Solomon Trujillo is

enough of a measure to regain Teltra'slost glory in the light of competitivepressures in the Australiantelecommunications industry.

Industry TelecommunicationReference No. RTS0078Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Telstra Corporation; Sol Trujillo; Australiantelecommunications industry;Privatisation; ‘Transformational’ strategicplan; Integrated company; Cost structure;Retrenchments; 3G Networks; Internetservices; Cost-effective services;Government regulations.

The Power of Spin-offs:The Caseof Motorola’s Freescale

There are varied reasons as to whycompanies opt for spinning-off theirbusiness divisions or subsidiaries. Sometimesspin-offs unlock hidden shareholder valueor they are merely a means to separate atroubled unit from the parent company. Ina competitive landscape, for a spun-offcompany to succeed as an independententity, the timing of the spin-off and thestatus of the spin-off's relationship withits former parent company are importantfactors. Corporate history is replete withexamples of spin-offs that havespectacularly failed to achieve their toutedpotentials. At the same time, there arethose that have performed far beyondmarket expectations.


• To highlight the reasons as to whycompanies opt for spinning-off theirbusiness divisions or subsidiaries.

Industry SemiconductorsReference No. RTS0077Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Spin-offs, Equity carve-outs, Trackingstock; Restructuring through spin-offs;General Motors, Ford, Delphi, Visteon;AT&T, General Electric, Genpact;Strategic Rationale; Operational andfinancial transparency; Accountability andincentives; Shareholder value;Semiconductor Products Sector (SPS);Asset light strategy; Branding strategy;Product development strategy; MichelMayer; Merck, Medco, McDonald’s;Cendant, Viacomm.





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John Swainson’s Turnaround ofComputer Associates

International Inc.: Setting IBMStandards?

In 2000-2001, Computer Associates, thethird-largest independent softwarecompany in the world, was involved in a$2.2 billion accounting scandal, which ledto the resignation of its Chief ExecutiveOfficer (CEO). John Swainson, an IBMveteran, was appointed as the CEO ofComputer Associates in November 2004.Following a change in the name of thecompany to CA, with an improvement incustomer relations and enhanced focus onresearch and development, the companywitnessed an increase of 9% in its revenuefor the quarter ending September 2005.


• To discuss the reasons behind the slackperformance of the company and discusthe accounting scandal

• To discuss various strategiesimplemented by John Swainson to turnComputer Associates around andoverhaul its tainted image.

Industry Storage and SystemsManagement Software


keywords

CA (Computer Associates); Computersoftware market; Acquisitions and licensingagreement; Accounting scandal; SanjayKumar; John Swainson; Turnaroundstrategies; US Securities and ExchangeCommission; Employee compensationplan; Accounting practices; Customerrelations; Global distribution and servicenetworks; Licensing of software products;Corporate governance; Bureaucracy.

Novelis, Alcan’s Spin-off: StayingCompetitive?

In January 2005, Alcan, the Canadianaluminium company, spun-off its rolledproducts business into an independentcompany, Novelis. The spin-off wasrequired for Alcan to receive an antitrustapproval from the European Union afterits acquisition of a French company,Pechinery. Novelis supplies rolled productsfor use in food and beverage, canproduction, food packaging foils as well asautomotive parts. In 2004, with customerslike Jaguar, Ford, Mercedes, Reaxam andKodak Polychrome Graphics, Novelisgenerated sales of $7.8 billion. However,it is mired with problems like a debt of$2.95 billion, rising energy costs and metalprice ceilings in some of its sales contracts.


• To highlight the rationale behind thespin-off of Novelis from Alcan

• To discuss the competitive strategies ofNovelis in the global rolled productsbusiness.

Industry Aluminium ProductionReference No. RTS0075Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Alcan; Novelis; Spin-off; Competitivestrategy; Flat-rolled aluminium market;Aluminium production; US; GM (GeneralMotors); Mercedes; Jaguar Cars Limited;Metal price ceiling; Canada.

PPR’s Balenciaga Brand: TheTurnaround

Pinault-Printemps-Redoute (PPR), amultinational holding company is a majorplayer in the French luxury goods industry.With a unique combination of variousbusinesses, PPR emerged as a global playerin the business segment. The companyincludes retail companies such asPrintemps, Redcats, Fnac, Conforama and10 luxury brands under the Gucci Group:(1) Gucci; (2) Yves Saint Laurent; (3) YSLBeaute; (4) Balenciaga; (5) Sergio Rossi;(6) Boucheron; (7) Bottega Veneta; (8)Bedat & Co.; (9) Alexander McQueen; and(10) Stella McCartney. It acquired Gucci in1999, after a legal battle with Gucci'scompetitor LVMH (Louis Vuitton MoetHennessy). In 2001, Gucci acquired theBalenciaga Fashion House, which was inlosses then. The company was in crisiswhen its Creative Director Tom Ford andChief Executive Officer (CEO) DomenicoDe Sole quit the company after the parentgroup PPR refused to grant themmanagerial autonomy. In 2004, thecompany appointed Robert Polet as Gucci'snew CEO. Polet formulated a three-yearstrategic plan to revive the company’s loss-making brands such as Balenciaga, YvesSaint Laurent and Alexander McQueen.The company appointed NicolasGhesquiere as Balenciaga’s CreativeDirector. The Spring/Summer 2006collections of Ghesquiere, were appreciatedby the media as well as the fashion world.The company is expected to undergo aturnaround with profit generation andrevival by 2007.


• To highlight the problems of PPR, thecrisis in Gucci and the efforts ofBalenciaga to revive its fashion house

• To discuss Balenciaga’s sustained effortsto gain recognition and whether this

turnaround would bring profits for thefashion house.

Industry Fashion RetailReference No. RTS0074Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

PPR (Pinault-Printemps-Redoute); Gucci;Balenciaga; Fashion retail industry; TomFord; Domenico De Sole; NicolasGhesquiere; Competition; Acquisitions;Expansion strategies; LVMH (LouisVuitton Moet Hennessy).

International Paper: JohnFaraci’s Restructuring Strategies

New York-based International Paper is theworld's largest paper, and forest productscompany and is the world’s second-largestprivate landowner. However, since the early21st century, it has been witnessing weakerdemand, falling prices and its debts haveincreased. Despite many revival initiatives,in 2004, it incurred a loss of $35 million.In July 2005, John Faraci, the ChiefExecutive Officer (CEO) of InternationalPaper announced a broad restructuring planto boost profits and reduce debts byfocusing on core businesses.


• To discuss the restructuring strategiesadopted by John Faraci to revive theloss making international paper.

Industry Paper and Paper ProductManufacturing


keywords

International Paper; European and USeconomy; US dollar decline; Consumerdemand; Restructuring plan; Troubledtimes; Competition; Competitiveadvantage; High material cost;Diversification; Mergers and acquisitions;Fluctuated income; Product innovations;Future of International Paper; John Faraci.

Canon: Fujio Mitarai’sRestructuring Strategies

From the early 1990s Canon, a leadingmanufacturer of copying machinesandcameras, witnessed a decline in its fortunes.The profitability of the company declinedwith several of its divisions reporting losses.To turn the fortunes of the companyaround, Fujio Mitarai (Mitarai) wasappointed as Canon's president in 1995and then as its CEO in 1997. Mitarai

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• To discuss the evolution of Canon overthe years, the decline in the company’sfortunes and the restructuring strategiesadopted by Mitarai to turn Canon’sfortunes around

• To discuss whether Canon under Mitaraiwould be able to face future challengessuccessfully.

Industry Printing and ImagingEquipment


keywords

Cannon Inc.; Fujio Mitarai; Restructuringstrategies; Economic environment;Consolidated accounting system;Conveyor belt system of manufacturing;Excellent global corporation plan; Cashflow management; Cell production system;Profit maximisation; Cost reduction;Prototype-less design; Stereolithography.

Warner Music Group: EdgarBronfman Jr’s Turnaround

StrategiesFor the year 2003, Warner Music Group(WMG) reported a loss of $239 million,which the management attributed to thechanged dynamics of the music industryand the resultant competition and large-scale piracy. In March 2004, Seagram scionEdgar Bronfman Jr. bought WMG fromTime Warner for $2.6 billion. After takingover the company, Edgar who was knownfor his business acumen and strategies,turned around the company in a period ofjust 10 months and WMG recorded a profitof $36 million for the first quarter of 2005.


• To understand the challenges faced byWMG in the highly competitive musicindustry

• To discuss the turnaround strategies ofEdgar Bronfman Jr. and whether thesestrategies would enable WMG to showoutstanding performances in the future.

Industry Music IndustryReference No. RTS0071Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Warner Music Group (WMG); EdgarBronfman Junior; Music piracy; Musicindustry; On-line digital music; On-line

business model; Turnaround strategies;Restructuring; Competitive strategies;Peer-to-Peer (P-to-P).

ITC’s Acquisition of WIMCO: TheTurnaround Challenges

Indian Tobacco Company, popularlyknown as ITC, is the market leader in thetobacco industry in India. Ever since itsinception, it focused on diversifying intoother unrelated businesses that furtherintensified in the mid-1990s as a result ofgrowing awareness among consumers aboutthe harmful effect of tobacco andcigarettes. As a part of its diversificationstrategy, ITC also made its entry into thematchstick industry in 2002; and acquiredthe West Indian Match Company(WIMCO), the Indian subsidiary of SwedishMatch AB, which was the largestmechanised manufacturer of match boxesin India with a market share of 13%. Butduring the time of acquisition, WIMCOwas in losses. This helped ITC in acquiringWIMCO at a lower price than the industryexpectations. However, after theacquisition, ITC is confronted with the issueof turning around WIMCO.


• To focus on the business diversificationstrategies of ITC and its entry into thematch stick industry

• To discuss the challenges faced by ITCin turning around WIMCO.

Industry Matchstick IndustryReference No. RTS0070Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Indian matchstick industry; Indian TobaccoCompany’s (ITC) acquisition of WestIndian Match Company (WIMCO);Turnaround challenges; ITC’sdiversification; Synergies of acquisition.

GM’s Turnaround Strategies: Willthey Ensure its Survival?

Continued losses at its core NorthAmerican operations had called intoquestion the very survival of GeneralMotors (GM). The giant automobilemanufacturer was rapidly losing ground inthe North American market to its nimblecompetitors and its brands were losing theirpopularity. The company also had hugelegacy costs. But the company’smanagement, led by chairman RickWagoner, was confident that theirturnaround strategies would be successfulin ensuring the survival of GM.


• To comprehend the reasons behind GM’sdeclining fortunes

• To discuss whether the turnaroundstrategies devised by Wagoner ensure thecompany’s survival.


keywords

General Motors (GM); Turnaroundstrategies; Rick Wagoner; Legacy costs;Sports utility vehicle (SUV); Cash flownegative; Non-investment negative;United Automobile, Aerospace andAgricultural Implement Workers ofAmerica (UAW); Product differentiation;Brand image; Value pricing.

Charles Schwab: Schwab’sTurnaround Strategies

Brokerage firm Charles Schwab witnesseda decline in its fortune since 2000 as aresult of the company’s dependence on thebrokerage business for its revenues. To findnew sources of revenue, the companydiversified into new businesses under itsthen Chief Executive Officer (CEO) DavidPottruck. But it continued to struggle andfounder Charles Schwab was recalled to leadthe company. After taking over as the CEO,Schwab undertook major restructuringsteps to improve profitability.


• To discuss the strategies of Schwab inturning around the company

• To highlight the challenges faced by thecompany for sustaining its successfulturnaround.

Industry Capital MarketReference No. RTS0068Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Available

keywords

Charles Schwab; David Pottruck; Discountbrokerage; Mutual funds; Restructuring;Turnaround strategies; Growth strategies;Institutional investing; Diversification;Leadership; Competition; Cyclicalrevenues.

ABB: Fred Kindle’s RestructuringStrategies

From being on the brink of failure, AseaBrown Boveri Limited (ABB) was slowlyturning around its fortunes. Industry experts






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were of the opinion that it was thecompany’s chief executive officer, FredKindle’s (Kindle) restructuring strategiesthat were responsible for this turnaround.They were confident that ABB had left itstroubled times behind and was on the pathto healthy growth. Nevertheless, someexperts believed that the company mayface many troubles ahead and it was tooearly to conclude Kindle’s success.


• To highlight the turning around of ABBLtd. from failure

• To discuss whether Kindle would sustainits successful turnaround in the future.

Industry EngineeringReference No. RTS0067Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Asia Brown Boveri Ltd. (ABB); Fred Kindle;ABB’s restructuring; Fred Kindle’sstrategies; ABB and the asbestos lawsuit;ABB’s problems; ABB in China – India andother Asian countries; ABB’s corporateculture; ABB in US; Former chief executiveofficers of ABB, Percy Barnevik, Lindahl,Centermann, Dormann; ABB’sacquisitions; ABB’s turnaround; ABB in2005.

The Viacom Inc. Split-up:Opportunities and Challenges

Viacom Inc., one of the world’s largestmedia conglomerates, was built over theyears through several acquisitions. One ofthe biggest acquisitions in the company'shistory was the acquisition of ColumbiaBroadcasting System (CBS) by Viacom in1999. However, in mid-2005, the companydecided to split up into two separate entitiesowing to the stagnating stock price thathas been affecting the company since May2000. Though the split-up of theconglomerate is offering potential benefitslike enhanced value of the new entities,ability to acquire high growth assets andbetter investment opportunities forinvestors, it is also posing challenges likeloss of market power and synergies achievedas a combined entity.


• To highlight the growth and the split-upof Viacom

• To discuss the viability of split-up as anoption for growth for conglomerates.

Industry Media Movies andBroadcasting

Reference No. RTS0066Year of Pub. 2005


keywords

Viacom Inc. (Viacom); Media movies andbroadcasting services; Largest mediaconglomerate; Split-up and reversal ofmerger; Combined entity market powersynergies; Tom Freston and LeslieMoonves; Columbia Broadcasting System(CBS); CBS Corporation and Viacommerger; MTV networks and Nickelodeon;Acquisitions takeovers and mergers;Comcast, NBS Corporation, Time Warner;Sumner Redstone; Media industrydeconsolidation; Opportunities andchallenges; Enhanced value for investors.

PEMEX: The Mexican Oil Giant’sRestructuring Strategies

Petroleos Mexicanos (PEMEX) is thenational oil company of Mexico, andseventh-largest oil producer and tenthlargest gas producer in the world. PEMEXaccounts for one-third of the Mexicangovernment’s revenues and 7% of itsexport earnings. But due to rampantcorruption, lack of investment and politicalexploitation, PEMEX started losing itsfinancial stability since 2000, despite therecord-high energy prices and increasingworld appetite for oil. To revive itsfortunes, in mid-2003, PEMEXimplemented several restructuringstrategies. But the company’s future is stilluncertain due to its falling output,increasing debt and costs.


• To provide insights into the troublesfaced by PEMEX and the restructuringstrategies undertaken to overcome them

• To discuss the efficacy of PEMEX’srestructuring strategies and its future.

Industry Oil and GasReference No. RTS0065Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Petroleos Mexicanos (PEMEX);Restructuring strategies; Corruption,privatisation, liberalisation; Investment,joint venture, partnership; ReserveReplacement Ratio (RRR); Loss-makingdebts and costs; Crude oil productionrefining transport; Natural gas, oil and gasreserves; Political posturing; Incompetentmanagers and poor decisions; Financialstability, lack of investment; Troubled timesdeclining revenues; Mexico’s natural oilcompany; Taxation and economic reforms;Mexican debt crisis, Pemexgate.

Millard Drexler: Turning AroundJ. Crew Inc.

Millard Drexler took over as the chiefexecutive officer of J. Crew Inc. in 2003,amidst a declining market share and qualityof merchandise at the stores. After he tookover, Drexler withdrew all non-J.Crewmerchandise from the stores and focusedon repositioning the brand, targeting 25-45 year olds, instead of teenagers. Apremium pricing strategy was employed,which was considered a bold move in themidst of the gloomy situation. For thefourth quarter of 2004, the store sales of J.Crew increased by 17% and operatingincome rose to $20 million from $1 millionin the last quarter of 2003.


• To discuss the reasons for the decline insales of J. Crew

• To discuss the turnaround strategiesadopted by Millard Drexler to revive thestore sales.

Industry Apparel RetailingReference No. RTS0064Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

J Crew Inc.; Millard Drexler; Premiumpricing strategy; Conservative inventorymanagement; Speciality retailing; GAPInc.; Turnaround strategies.

Italy’s Electricity Giant, Enel:Paolo Scaroni’s Turnaround

StrategiesEnel, Italy’s state-owned power utility, wasthe world’s second largest electric companyin terms of installed capacity and numberof consumers. It monopolised the Italianelectricity markets until the deregulationof Italy’s power sector in the 1990s. FrancoTato, the then Chief Executive Officer(CEO) of Enel, envisaged a multi-utilitycompany with diversified interests. Withthis vision, he acquired businesses in gas,water, real estate, waste treatment andtelecom sectors, none of which were relatedto Enel’s core business of power generationand distribution. Franco Tato failed toextract synergies from the company’svaried businesses. The results were fallingshare prices, and declining profit marginsfor Enel, and rising cost of electricity forconsumers in Italy. Paolo Scaroni, architectof the turnaround at loss making Britishglassmaker, Pilkington PLC., wasappointed the CEO of Enel in 2002. UnderScaroni’s leadership, Enel executed anabout-turn from Tato’s multi-utilitystrategy, divesting all non-core activities,and concentrating on electricity and gas.

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• To discuss the diversification strategiesemployed by Enel under Franco Tatoand their effects

• To discuss the turnaround strategiesemployed by Paolo Scaroni for thecompany’s profitability and to redefineits strategic focus.

Industry Electricity and Power ServicesReference No. RTS0063Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Ente Nazionale per l’Energia Ellettrica(Enel); Electricity generation anddistribution; Monopoly and state ownedcompany; Turnaround strategies;Restructuring plan; Franco Tato and FulvioConti; Unrelated diversifications andexpansions; Paolo Scaroni; Electricity,water, gas, telecommunications; Lostbusiness focus and poor decisions; Troubledtimes and leadership change; Mergers andacquisitions; Liberalisation andderegulation; Turnaround specialist;Divestments and spin-offs.

Bang & Olufsen: The Danish High-end Audio Maker’s Restructuring

StrategiesBang & Olufsen (B&O) is a Denmark-basedhigh-end audio-video equipment maker.From a humble beginning in 1925, B&Ohas grown into an international companyknown for its high quality and innovativeproducts. But during the 1980s, risingcompetition coupled with inefficientmanagement and economic crisis resultedin severe loss in the revenues and marketshare of the company. A restructuring planimplemented in the early 1990s did notachieve the desired results. In 2001, thenew Chief Executive Officer, Sorensen,initiated another restructuring plan basedon global expansion, focused productdesign and aggressive marketing strategy.


• To highlight the rise and fall of B&Oover the decades

• To discuss the restructuring strategies ofB&O and whether these strategies wouldensure a successful future for B&O.

Industry Audio Video ElectronicsReference No. RTS0062Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Bang & Olufsen (B&O); High-end audio-video equipment maker; Fashion conscious

consumers; Restructuring plans andstrategies; Acoustic lenses; Focused productdesign and marketing; Overcrowdedcompetition; Revolutionary products withsimple functionality; The ArchimedesProject; B1 exclusive B&O franchisees;Technology sharing partnership; Dismalfinancial performance; Ineffectivedistribution channels; National customdesign programme; Outreach Customers &Partners Programme.

Piaggio: The Italian ScooterManufacturer’s Turnaround

StrategiesAfter a spate of losses since 2000, Piaggiorecorded its first net profit in 2004. UnderRoberto Colaninno, who took over as theChairman in October 2003, Piaggioimplemented radical cost-cutting measures,and along with the introduction of newproducts, the company was able to mark arecovery in almost all its markets acrossthe globe.


• To highlight the strategies adopted byPiaggio to recuperate from its financialdownturn and claim its lost business inthe global two wheelers market.

Industry Motorcycle and Other SmallEngine Vehicle Manufacturing


keywords

Piaggio; Vespa; Roberto Colaninno;Turnaround; Recession; Morgan GrenfellPrivate Equity; Immsi; Debt-for-equity;Chongqing Zongshen Motorcycle Group;Piaggio Vehicles; Aprilia; Rocco Sabelli.

Falling Fortunes of JapaneseVideo Game Publishers: The

Turnaround StrategiesEver since Nintendo launched its familycomputer for the US market in 1985, theJapanese video game publishers haddominated the global video game industry.But since the late 1990s, they had beenlosing market share to their westerncounterparts, especially in the crucial USmarket. To turn around their fortunes, theJapanese publishers have initiated severalsteps since 2003.


• To understand the profile of the videogame industry and the evolution of theJapanese video game industry

• To provide an insight into the reasonsbehind the downfall of the Japanese videogame publishers

• To discuss the turnaround strategies beingunder taken by the Japanese video gamepublishers and whether they would beable to regain their leadership.

Industry Video GamesReference No. RTS0060Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Japanese video game publishers; Nintendo;Electronic Arts Inc.; Leading video gamepublishers; Turnaround strategies; Fallingfortunes; Video game industry; Loss ofmarket share; Video game console; SonyPlayStation; Arcade games; Console games;Profile of average gamers; Mergers andacquisitions; Video games for mobilephones.

Electronic Data Systems Corp.(EDS): Turnaround Strategies

Electronic Data Systems Corporation(EDS), was the second-largest globalprovider of information technology andBusiness Process Outsourcing (BPO)services in diverse fields such as financialservices, manufacturing, healthcare,communications, energy, transportation,consumer and retail industries. However,since 2001 the company has beenexperiencing fall in profits due to loss-making mega contracts, increasedcompetition, reduced number of newcontracts and a Securities and ExchangeCommission investigation. To turnaroundthe company, the new Chief ExecutiveOfficer (CEO), Michael Jordan, initiatedseveral strategies.


• To provide insights into the reasonsbehind EDS’ troubles and highlight theefforts of the new CEO in turning aroundthe company

• To discuss the efficiency of the strategiesand the potential threats faced by thecompany.

Industry Information TechnologyServices


keywords

Electronic Data Systems Corp. (EDS);Information technology services; Businessprocess outsourcing services; Turnaroundstrategies; Restructuring plan; MichaelJordan and Richard Brown; EDS Agility





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Alliance; AT Kearney and Tower Perrin;Loss-making mega contracts; Incompetentmanagers and poor decisions; GeneralMotors; Structural problems and culturalclashes; Computer services and software;Turnaround specialist divestments and spin-offs.

Siemens: The Challenges ofLeadership Change

After 12 years at the helm of affairs ofSiemens AG, Heinrich von Pierer, who wasconsidered one of Germany’s top managersand was credited with transforming the157-year-old electronics and electricalengineering conglomerate into a powerfulglobal player, stepped down from the chiefexecutive position in January 2005. Inplace of Heinrich von Pierer, KlausKleinfeld, CEO (Chief Executive Officer)of Siemens’ US unit, was appointed as thenew CEO of the company. Though thecompany was in a good financial state,some of its prominent business units likethe mobile handset unit and SiemensTransportation Systems were incurringheavy losses.


• To understand the leadership styles ofHeinrich von Pierer and Klaus Kleinfeld

• To discuss as to which approach wouldbe adopted by Kleinfeld, the ‘American’approach or the consensus-drivenGerman management style in turningaround Siemens AG.


keywords

Siemens; Klaus Kleinfeld; Heinrich vonPierer; ‘Top’ or ‘time-optimisedprocesses’; 10-point Programme; Siemensunder Heinrich von Pierer; Operation2003; Siemens Management System; US-management style; Siemens TransportationSystems; Telecommunications unit;Medical solutions; Leadership change;American leadership style; Challenges ofleadership change.

Sara Lee Corporation: Brenda CBarnes’ Restructuring Strategies

Sara Lee is a global manufacturer andmarketer of high-quality, high-profilebranded consumer products. But thecompany had been recording flat growthsince the early 1990s. Continuousrestructuring to revive its fortunes hadfailed. In February 2005, its new CEO

(Chief Executive Officer) Brenda Barnesannounced a major restructuring strategy.


• To highlight the diversificationstrategies of Sara Lee, by shiftingconsumer preference towards low priceand low-calorie foods, and increasing thetrend of private label brands

• To understand the reasons for the failureof Sara Lee’s previous restructurings andits future challenges.

Industry Food and ApparelReference No. RTS0057Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sara Lee Corporation; Restructuringstrategies; Diversification strategies;Brenda C Barnes; Branding strategies;Brand portfolio; Brand extension; Apparelindustry; Food and beverage industry; Lossof focus on key brands; Huge portfolio ofbrands; Consumer behaviour; Globalconglomerate; High-quality brandedproducts; Continuous restructuringprogrammes.

Southwest Airlines: The ChangingCost Structure and Corporate

CultureSouthwest Airlines, the largest domesticpassenger airline with the highest marketcapitalisation in the US airline industry,has been the only airline in Americanhistory to have recorded profits for 32consecutive years since its inception in1971. Southwest relied on a unique businessmodel of ‘low cost – no frills – highcustomer service’ and leveraged its humanresources effectively to achieveextraordinary success. Southwest had beenin the top ten list of FORTUNE’s MostAdmired Companies every year since 1998.Southwest had sustained the success and itsposition even when the whole airlineindustry plunged into losses after the 9/11terrorist attacks and also withstood thecompetition from a horde of airlines, whichtried to replicate its strategies and businessmodel. But since 2002, Southwest also hadbeen caught up with the general troublesassociated with the other airlines – highercost structure, changing consumer attitude,infrastructure bottlenecks, and changingcorporate culture.


• To understand (1) the evolution ofSouthwest as successful airline inAmerica (2) The business model ofSouthwest Airlines (3) the strategic andcompetitive advantages of Southwest

Airlines (4) the leadership of HerbKelleher (5) and the employeeempowerment of Southwest Airlines inachieving success in the highlycompetitive Airlines industry

• To discuss the changing cost structureand corporate culture of SouthwestAirlines.

Industry AirlinesReference No. RTS0056Year of Pub. 2005Teaching Note AvailableStruc.Assig. Available

keywords

Southwest Airlines; Leading low-costairline; FORTUNE’s most admiredcompanies; ‘Triple Crown’ award; HerbKelleher; Strategic advantages; Businessmodel; Hub-and-spoke system; Point-to-point airline network; Corporate culture;The Southwest Airlines way; Competitiveadvantage; Lowest cost structure; LUVairline; Changing employee attitude.

NVIDIA: The GraphicChipmaker’s Turnaround

StrategyNVIDIA Corporation (NVIDIA), a globalleader in manufacturing graphicprocessors, failed to deliver its mostambitious graphic processing unit, ‘NV30’,to the market as per schedule in 2002.Besides, NVIDIA’s tussle with Microsoftand an accusation against NVIDIA’semployees of insider trading added to thecompany’s woes. From $11 billion inJanuary 2002, NVIDIA’s market value fellto $1 billion by October 2002. However,having learnt from its mistakes and with afocused turnaround plan, NVIDIA was backinto its leadership status by early 2005.


• To highlight NVDIA’s turnaroundstrategy to emerge as a leader in theglobal chip market.

Industry Graphics, Video Chips andBoards


keywords

NVIDIA; NVIDIA’s GPU (GraphicProcessing Unit); NVIDIA’s product cycle;Worldwide graphic chip market;Microsoft’s Xbox; NVIDIA’s price disputewith Microsoft; NVIDIA’s challenges;NVIDIA’s turnaround plan; Jen-HsunHuang; NVIDIA’s competitors; NVIDIA’smarket share; Insider trading.

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Nestle: The OrganizationalTransformation

In nearly 140 years of existence, Nestlehad grown from a small baby foodmanufacturing house in Vevey, Switzerland,to the world’s largest food company,operating in 86 countries and with morethan 500 factories spread across the globe.Nestle owns some of the world's best sellingbrands in instant coffee (Nescafe), babyfood (Cerelac), bottled water (Perrier) andpet care (Friskies). The company's growthstrategy through acquisitions resulted in an‘unwieldy empire’, lower profit marginsand a negative response from stockmarkets. To accelerate profits without aslow down in growth, chief executiveofficer, Peter Brabeck, initiated atransformation of the organisation, whichanalysts felt was akin to moving amountain.


• To understand the business model ofNestle and the conditions in which itsorganisational transformation tookplace

• To discuss as to how and whether Nestlecould be transformed.

Industry Food and BeveragesReference No. RTS0054Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Nestle; Largest food company; Nescafe;Cerelac; Decentralised operational model;Organisational transformation; Businessmodel; Nestle empire; Mergers andacquisitions; Peter Brabeck; Henri Nestle;Misguided diversification; Food industryconsolidation; Centralised managementmodel; Global Business ExcellenceResource Planning System (GLOBE)

Kraft Foods in Crisis: Roger KDeromedi’s Restructuring

StrategiesKraft Foods Inc. is a leading confectionery,food and beverage company. Since 2001, ithas been losing out to cheaper store brands,private label brands and competitors, due toconsumer preference towards low-priced andlow calorie foods. A lack of new products,the exit of top executives and a failure tosupply what retailers wanted were alsotroubling the company. The parentcompany, Philip Morris, began pressurisingKraft Foods for a possible spin-off. InJanuary 2004, chief executive officer RogerK Deromedi announced a restructuring planaimed at trimming non-core brands, focusingonly on blockbuster brands and re-fashioningthe product line up.


• To discuss the restructuring activitiesadopted by Deromedi to make Kraftcompetitive

• To discuss the opportunities andchallenges faced by Kraft in the changingfood market.

Industry FoodReference No. RTS0053Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Kraft Foods Inc.; Private label brands;Roger K Deromedi; Low price; Low caloriefoods; Philip Morris Companies (AltriaGroup); Restructuring; Nabisco Holdings;Food and beverages business; Competitiveadvantage; Product innovations;Diversification; Oscar Mayer meat brand;Marketing and promotion strategy;Sustainable growth plan.

Deutsche Bank: Ackermann’sRestructuring Formula

Josef Ackermann, the chief executive ofDeutsche Bank, had set a high target of a25% return on equity in 2005 in order totransform his institution into one of thebest banks in the world. Despite the bank’sfailed mergers with Citigroup, Germany’sPostbank and Credit Suisse First Bostonand its stock plunging by 6.9% in 2004,Ackermann was confident that the bankwould be able to deliver its set targets.


• To discuss the restructuring of theDeutsche Bank under the leadership ofAckermann.

Industry Money Centre BanksReference No. RTS0052Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Deutsche Bank; Josef Ackermann; Germanbanking industry; Restructuring strategies;Money machine; Investment banking;Universal bank; European banks; Euroeffect; Single market programme.

Thailand’s Siam Cement Group:The Conglomerate’s Resurgence

from the Asian CrisisSiam Cement Group (SCG), Thailand’slargest industrial conglomerate, is the Asianmarket leader in many diversifiedbusinesses. Siam Cement was establishedby King Rama VI in 1913 and since then it

has come a long way in shaping upThailand's industrial sector. The companywas on an expansion bid when the Asianfinancial crisis hit the region in 1997.Thailand, being one of the worst hitcountries, saw the devaluation of the baht,the Thai currency, and thereby the collapseof the economy. To survive the blow,Chumpol NaLamlieng, the President ofSiam Cement, formulated restructuringstrategies. Their implementation helpedthe company survive and gradually movetowards profits. By 2004, with a stableexternal economy and growing internalprofits, the company was moving aheadtowards achieving Chumpol's vision ofturning the company into a regional leaderand the ASEAN (Association of South EastAsian Nations) region into a leadingindustrialised area.


• To understand (1) the evolution of SCG(2) the impact of the Asian financialcrisis on Thai industries

• To discuss the competitive strategiesadopted by Chumpol NaLamlieng, andhis vision for the future of the company,Thailand and the ASEAN region.

Industry Cement, Paper andPetrochemicals


keywords

Siam Cement Group (SCG); The Asianfinancial crisis; Thailand; Industrialconglomerate; Restructuring strategies;Association of South East Asian Nations(ASEAN); Divestment of non-core business;Thailand’s ‘industrial powerhouse’; KingRama VI; A white elephant in a hexagon;Kingdom of Siam; Crown Property Bureau;Asian market leader; Chumpol NaLamlieng;Devaluation of baht.

Parker Hannifin Corporation:Donald Washkewicz’sTurnaround Strategies

Parker Hannifin Corporation is one of theworld's leading motion and controltechnologies and systems manufacturers.It provides precision-engineered solutionsto commercial, mobile, industrial andaerospace markets. When the industrialrecession set in during 2001, the companywas faced with huge amounts of excesscapacity and high costs. The company’schief executive officer, DonaldWashkewicz, introduced leanmanufacturing throughout the company.This helped it change its operationalstructure, resulting in decreased overheads,






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reduced inventory and shorter lead times,thereby ensuring enhanced teamwork andincreased profits.


• To discuss as to how parker HannifinCorporation converted adversities intoadvantages under the leadership ofDonald Washkewicz.

Industry Motion and Control SystemsReference No. RTS0050Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Parker Hannifin Corporation; Largestmotion and control systems company;Fluid system components; US economicrecession; Airconditioning systems; DonaldWashkewicz; Lean manufacturing system;Turnaround strategies; Win strategy;Industrial recession; Pricing strategy;Strategic procurement goal; Cellularmanufacturing; Competitive strategies;Precision-engineered solutions.

KARSTADTQUELLE: The GermanRetail Giant’s Restructuring

StrategiesKarstadtQuelle, one of Europe’s largestdepartment store and mail order groups,represented 50% of the German marketshare in this business. In 2000, thecompany shifted away from generalretailing towards more specialised sectorssuch as fashion apparel and sports to attractadditional foreign customers. It furtherdiversified into new businesses such asfinancial services, tourism and mail order.But mismanagement and weak consumerdemand in Germany began hurting thecompany’s core activities, resulting insevere structural problems and a collapsein earnings. To revive its fortunes,KarstadtQuelle began restructuring itsoperations.


• To discuss the reasons for the problemsfaced by KarstadtQuelle and therestructuring strategies it adopted toturnaround

• To discuss the challenges ahead for theretailing giant.

Industry RetailingReference No. RTS0049Year of Pub. 2005Teaching Note AvailableStruc.Assig. Not Available

keywords

KarstadtQuelle; German retail market;Europe’s largest department store chains;

Neckermann and Quelle brands;Reorganisation; Europe’s largest mail ordergroups; Restructuring strategies; Discountchains; Family-run business; Diversificationstrategy; Pricing strategy; The‘Intercontinental Department StoreGroup’; Mismanagement; Competitivestrategies; Turnaround.

Dell in China: The StrategicRethinking

Dell, the world’s largest computer seller,started focusing on China in 1998. Itsmarket share in China rose from less than1% in 1998 to 7.4% in 2004. Dell hasfocused on low-end PC’s and aggressivelytargeted state-owned large enterprises andindividual consumers, where profit marginsare typically lower, while other playersfocused on high-end PC’s and targetedcorporates and business consumers. But dueto heavy competition from the local PCvendors, Dell decided to change its strategyby shifting its focus from low-end consumerPC’s to high-end products like servers andstorage systems for corporates andbusinesses.


• To discuss the expansion strategies ofDell in Chinal

• To discuss the strategies it adopted whilefacing competition from the localplayers.

Industry PC and Software VendorReference No. RTS0048Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Dell Inc.; Michael Dell; China; World’slargest computer vendor; PC market share;Growth strategy; Chinese PC vendors; On-line sales; High-end PC market; Low-endPC market; Market share; Pricing strategy;Target consumers; Competitive strategies;Brand management.

Cazenove Group Plc.: BritishFinancial Firm's Restructuring

StrategiesCazenove Group Plc., the oldest and largestBritish financial services firm, serves aclient base comprising of top UK-basedcompanies. Since its inception in 1823, ithad operated independently and discreetly,much to the approval of its clientele,dealing with fund management andinvestment banking, besides providingcorporate finance advisory, securitiesdistribution and research services. The firmran into rough weather in 2003 due to the

stock market crash and corpus erosion inits fund management business. Thechanging circumstances and increasingcompetition required aggressive fundmanagement and innovative investmentbanking which further required expertiseand funds. Failing to generate enoughrevenue to attract fresh talent and structurenew products, Cazenove started lookingfor alliances which could provide therequired competence while preserving itsindependence. After some deliberationsCazenove formed a joint venture with JPMorgan, which was providing it with bothindependence and competence. But thedeal generated apprehension among itsclients and some of them werecontemplating severing long-standingrelationships with Cazenove.


• To highlight the journey of Cazenovein restructuring its operations

• To discuss whether the strategy hadadopted to overcome its problems was arational decision or a mistake committedin haste.

Industry Financial ServicesReference No. RTS0047Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Cazenove Group Plc.; David Mayhew;Financial advisory; Investment banking;Corporate broking; JP Morgan; LehmanBros; Restructuring strategies; Failed InitialPublic Offer (IPO); Mergers andacquisitions; Investment research; Foreignfinancial institutions; Britain’s blue-chipcompanies; Joint venture; Structuredfinance market.

McDonald’s “Plan To Win”Strategy: The Payoffs

McDonald’s had been recording decliningprofits since 2001. Although turnover wasincreasing, there was a continuous decreasein its operating profit and net profitmargins. To turnaround its fortune, thecompany adopted the “Plan To Win”strategy in 2003. The main purpose of thestrategy was to bring about improvementin the company’s performance by buildingit around five key drivers of customerexperience – People, Product, Price, Placeand Promotion; and by identifyingopportunities on the basis of the four basicaspects of its mission statement – Quality,Service, Cleanliness and Value. The strategywas also based on what McDonald’sconsidered as three essential componentsof success – Operational Excellence,Leadership Marketing and Innovation.

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• To discuss the efficacy of the “Plan toWin” strategy

• To discuss the solutions for challengesplaguing the fortunes of the firm.

Industry Fast Food RetailingReference No. RTS0046Year of Pub. 2005Teaching Note AvailableStruc.Assig. Not Available

keywords

McDonald’s Corporation; Plan to Win;Operational excellence; Innovation;Leadership marketing; People Vision;People Promise; Mission statement; Fastfood; Obesity; Jim Cantalupo; Charlie Bell;‘I’m lovin’ it’ ad campaign; Best QuickService Restaurant; McCafe.

Hynix: The South KoreanChipmaker’s Restructuring

StrategiesSouth Korean chipmaker, Hynix, wasseverely hit by the downturn in thecountry’s semiconductor market with adebt of six billion won in 2002. However,Hynix managed to extricate itself from itsfinancial troubles and restated profits inthe third quarter of 2003. Despite profits,Hynix was accused of various allegationsby competitors as they considered the bankbailouts being provided to the company asan unfair government subsidy.


• To discuss the restructuring strategiesadopted by the company and thechallenges being faced by it in thecompetitive market for semiconductors.

Industry Memory Chips and ModulesReference No. RTS0045Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Hynix; Hyundai Electronics Industries;South Korea DRAM (Dynamic RandomAccess Memory) market; Hynix bailoutpackages; LG Semicon; Hynix restructuringplan; Export duties on Hynix DRAM;World DRAM market; Hynix blue chiptechnology.

Delta Air Lines Inc.: RestructuringStrategies

Delta Air Lines, one of the largest airlinesin the world, with a vast domestic andinternational network is known for its safeand reliable transportation. The September11th 2001 terrorist attack on New York’s

World Trade Centre was a severe blow tothe entire airline industry, pushing manycompanies to the verge of bankruptcy.Delta was one such company which wasseverely affected, incurring losses for threesubsequent years – 2001, 2002 and 2003.The company was on the verge of filingfor Chapter 11 bankruptcy protection in2004. To save the struggling airline, thecompany’s new CEO, Gerald Grinsteinformulated ‘Delta solution’. But theimplementation of the solution dependson the cost concessions to be offered bythe Pilot Association and a host of otherfactors.


• To discuss the restructuring strategiesformulated by the CEO to save thecompany and its future that is danglingbetween bankruptcy and transformation.

Industry AirlinesReference No. RTS0044Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Delta Air Lines; Gerald Grinstein; CEWoolman; 9/11 attack on New York's WorldTrade Centre; Restructuring strategies; Deltasolution; Pilot concessions; Delta - ACES;Transformation plan; Chapter 11bankruptcy protection; ProfitImprovement Initiatives (PII); Airlineindustry; Strategic cornerstones; Hub andspoke system; The Airlines Pilot Association

A&M’s Turnaround Formula forInterstateBakeries Corporation:

The Testing TimesThe largest bakery company in the US,Interstate Bakeries Corporation (IBC) hadbeen operating successfully with popularbrands like Wonder Bread and Hostesscakes, since the late 1920s. However, IBChad been reporting stagnated sales and itsnet income had been falling since 1999owing to competition from manufacturersof low-carb food products like Atkins, andincreased operational costs. In 2004, thecompany filed for bankruptcy reporting adebt of $1.320 billion.


• To discuss the factors leading to IBC’stryst with bankruptcy

• To discuss the challenges faced by A&Min turning around IBC.

Industry Bakery ProductsReference No. RTS0043Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Available

keywords

Interstate Bakeries Corporation; Alvarez& Marsal; A&M’s turnaround formula;Tony Alvarez; Wonder Bread; Low carbfood products; Atkins; Extended shelf life;Interstate Bakeries filing for bankruptcy;Home Pride carb action; Hostess twinkies.

Televisa: The TurnaroundStrategies of Emilio Azcarraga

JeanWhen Emilio Azcarraga Jean took overthe reins of Mexico-based Grupo Televisa,the world’s largest Spanish-language mediaconglomerate, in 1997, investors raiseddoubts as to whether the then 29-year-oldscion would be able to carry on the dauntingtask of turning around the mediaconglomerate. At that time, the company'srevenues were stagnant, it was characterisedby a bloated management structure andintense competition. However, Jeanproved his critics wrong. By focusing onlowering costs, improving production andchanging the work culture, Jean, in a spanof six years returned the company toprofitability with revenues of $2.3 billionand profits to the tune of $350.


• To discuss the initiatives taken up byEmilio Azcarraga Jean to bring back thelost glory of Televisa

• To discuss the future plans of Jean forthe further growth of the company

• To discuss TTSL’s ambitions to becomea popular brand by focussing on thecompany’s initiatives towards offeringits subscribers more value and less costs.

Industry MediaReference No. RTS0042Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Televisa; Emilio Azcarraga Jean; Televisa2000; Univision Communications; EmilioAzcarraga Milmo; El Tigre; TV Azteca;Grupo Televicentro; Clear ChannelCommunications; InstitutionalRevolutionary Party; The tequila effect;Telemundo Communications Group Inc; USHispanic TV market; TelesistemaMexicana; Sky Entertainment Services.

Volkswagen: BerndPischetsrieder’s Turnaround

EffortsVolkswagen has been Europe’s leadingcarmaker with many successful models.However, the company seemed to be losing






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ground since 2002, witnessing stagnantsales and declining profits. The companyis besieged with problems on many fronts:(1) labour problems; (2) ageing models; (3)brand cannibalisation due to overlappingmodels; and (4) increased competition.Bernd Pischetsrieder, who succeededFerdinand Piech as chairman, initiatedefforts to turnaround the company.


• To discuss the reasons for the decline inthe company’s performance

• To discuss the turnaround efforts ofBernd Pischetsrieder.


keywords

Volkswagen; Bernd Pischetsrieder; Brandcannibalisation; Overlapping models;Ferdinand Piech; Labour problems; Ageingmodels; Turnaround.

Hindustan Lever Limited: TheOrganizational Restructuring

Hindustan Lever Limited (HLL), thelargest FMCG (Fast Moving ConsumerGoods) company in India, was strugglingto increase its business by the late 1990s.To kick-start growth, HLL trimmed itsbrand portfolio of 110 brands to 30,initiated new business ventures andrelaunched all its brands. But being caughtup in price wars with its arch rival Procter& Gamble negated the gains it achieved. InMarch 2004, HLL announced a major topmanagement reshuffle and reorganised itsbusiness portfolio under two divisions. Thecompany officials maintained that thestrategy was to provide a sharper focus onkey brands and categories and to simplifythe organisational structure.


• To discuss the organisationalrestructuring at HLL and whether HLLwould eventually pull itself out of thegrowth rut.

Industry Personal Care ProductsReference No. RTS0040Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Hindustan Lever Limited (HLL); Unilever;FMCG (Fast Moving Consumer Goods);Organisational restructuring;Organisational structure; Projectmillennium; e-Tailing; Power brands;

Competition; Rural marketing; Personalcare business; Business strategy; MalvinderSingh Banga; CK Prahalad; New businessinitiatives.

US Airways: The Tryst withBankruptcy

In 2004, following unsuccessfulnegotiations with labour unions on wageconcessions, US Airways, America’sseventh largest airline, filed for bankruptcyfor the second time since 2002. This time,the airline aims to repeat the success ofthe 2002 restructuring and emerging as alow-cost airline.


• To discuss the reasons for the bankruptcyof US Airways

• To discuss the restructuring strategies itadopted, to recover from its poorfinancial health.


keywords

The US Civil Aviation industry; Low-costcarriers in the US; The weak Americaneconomy after September 11th 2004; USAirways’ bankruptcies; Labour unions ofUS Airways; Negotiations with the labourunions of US airways; Key components ofthe transformation plan of US Airways;Airlines that have filed for bankruptcy post1978; Star Alliance network; US airways’successful recovery from the firstbankruptcy.

Tyco International Ltd.: TheRevival Strategies

Tyco International Limited (Tyco), oneof the 20 most valuable companies in theUS, was accused of corporate fraud in 2002.Its top management was accused ofmisusing the company’s loan system andmisrepresenting the company’s financialstatus. In the same year, the company’sstock lost a total of $90 billion.


• To discuss the revival strategies adoptedby Tyco to improve its operationalefficiency and reclaim its leadershipposition in the US market.

Industry Electronics, Security, PlasticsReference No. RTS0038Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Business segments of Tyco; Marketcapitalisation of Tyco; Accusations againstTyco; Losses of Tyco; Revival of Tyco;Timeline of Tyco International; Tyco’sgrowth through acquisitions; Divisionalstructure of Tyco International; Segmentwise revenues of Tyco; Debts of Tyco.

Matsushita Electric IndustrialCompany: The Restructuring

StrategiesBy the end of the 1990s, Matsushita ElectricIndustrial Company was hit by rapidchanges in the domestic as well as the globalelectronics market. In 2003, it had a lossof ¥19.5 billion. However, by 2004, thecompany had an operating profit of ¥195.5billion.


• To discuss the restructuring strategiesadopted by Matsushita that paved theway for the future growth of thecompany.


keywords

Global electronics manufacturers; Progress2000 plan; Value creation 21; CorporatePanasonic marketing division; Profile ofthe world electronic industry; China-Matsushita’s low-cost manufacturingdestination; Mergers and alliances ofMatsushita; Brands of Matsushita; Sales ofMatsushita products by category;Deconstruction and creation; New businesssegments of Matsushita; New consumersales structure of Matsushita in Japan;Matsushita’s concept of groupwide businessand organisational restructuring; Newmanagement structure of Matsushita.

Humana Inc.: Turnaround of aHealth Insurer

Louisville-based health managementcompany, Humana Inc., ran into difficultcircumstances in the late-1990s due to therising health care costs of its employees inthe US. The troubles were furtheraggravated as various class action lawsuitswere filed against it on the grounds thatthe company had misrepresented its healthcare plans to its customers. The arrival ofthe new CEO, Michael P. McCallister,marked a turnaround for Humana andearnings increased significantly in 2003.Humana chose a consumer-centricapproach and a strong IT infrastructure as

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the two growth drivers to ensure its successin commercial and government businesssegments.


• To discuss the different strategies adoptedby Humana to become the leading healthservices company in the competitive USmarket.

Industry Health Care InsuranceReference No. RTS0036Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Humana; Health MaintenanceOrganisations (HMO) in the US; Risinghealth costs in the US; SmartSuite; Personalnurse; TRICARE; HumanaCoverage-FirstPPO; Health care plans; Medicareadvantage; Smart Assurance; A competitivelandscape of the US HMO market;Potential of health insurance business inthe US; Difference between nursing homesand hospitals; Growth of the HMO industryin the US; Lawsuit allegation againstHumana.

Electrolux: ReinventingOperations in North America

In 1968, Electrolux AB had sold its USmanufacturing facilities and the rights touse the brand name in North America andCanada to Consolidated Foods. Since then,it had operated under a slew of other brandnames like Eureka, Frigidaire, White-Westinghouse and Weed Eaters, while thewell-known ‘Electrolux’ vacuum cleanersin the US were manufactured and marketedby a company called Aerus. In 2000, underits global strategy to integrate all its brandsunder the brand name of ‘Electrolux’,Electrolux AB bought back the rights touse its name in the US from Aerus, bypaying $50 million. But, there wasconfusion as to which were the realElectrolux AB brands and which were the‘Electrolux’ brands from Aerus.


• To discuss the branding and positioningchallenges faced by Electrolux AB as itreinvented its operations in NorthAmerica.

Industry Consumer Durables andAppliances


keywords

Electrolux AB; Global branding strategy;Branding strategy; Consumer durables and

appliances industry; Mergers andacquisitions; Eureka; Michael Treschow;Research and development; Marketingstrategy; Hans Straberg; White goodsproducers; Market segmentation.

BP: Organisational Restructuringand Evolution of a New

Corporate IdentityBy 2004, BP (British Petroleum) hadtransformed itself from a typically old-fashioned British company to an aggressivecorporate entity to become the secondlargest company in the world, withoperations in more than 70 countries. BP’stransformation into a successful energycompany in the 21st century can be tracedback to its restructuring in the 1990s underthe stewardship of its CEO, Lord DavidBrowne. Radical changes in BP’sorganisational culture, the knowledgesharing initiatives and its focus on beingan environmentally conscious energyprovider, have all contributed to thecorporate transformation.


• To discuss BP’s restructuring initiativesto bring about a change in its corporateidentity.

Industry Energy and UtilitiesReference No. RTS0034Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

BP (British Petroleum); Organisationalrestructuring; Corporate culture;Organisation culture; Change in corporatestructure; Work culture; BP identity; BPtransformation; Change in culture;Knowledge management; Green image.

America Online: TheRestructuring Strategies

In the early 21st century, the technologysector experienced a significant number ofmergers and acquisitions among the old andnew economy companies. The merger ofAmerica Online (AOL), America’s largestInternet service provider with the mediagiant Time Warner, in 2001, was consideredas one of the largest mergers in thetechnology sector. However, the mergerfailed to deliver the desired synergies. AOL,one of the subsidiaries of the merged entity,Time Warner, was the worst affected andit continued to experience a decline in thecustomer base. Jonathan F. Miller, whotook over as CEO in August 2002, the thirdin a period of four months, implementedcertain measures to revive the company.


• To understand the reasons for the failureof the two companies in realising theexpected synergies of the merger

• To discuss the restructuring initiativesof John F. Miller to revive the company’sfortunes.

Industry Media and TelecommunicationsServices


keywords

America Online, Time Warner;Restructuring strategies; US Securities andExchange Commission (SEC); Mergers andacquisitions; Inorganic growth; Media andtelecommunications services; Internetservice providers; Growth strategies;Premium narrowband, broadband service;Jonathan Miller; Robert Pittman; Marketcapitalisation; Competitive strategy.

AirTran Airways: The TurnaroundAirTran, which was started in Orlando in1994, started reeling under losses after theAtlanta-based low cost airways ‘ValuJet’,acquired it in 1997. In 1998, it incurredlosses of $41 million and failed to competewith traditional carriers like Delta and USAirways. By January 1999, the airline hadonly $10 million that could keep it afloatfor a few weeks. However, under newmanagement, AirTran saw significantgrowth and was named as the ‘best lowfareairline’ in 2004 by the Entrepreneurmagazine.


• To discuss the revival strategies ofAirTran airways between 1999 and 2004under the leadership of its CEO, JoeLeonard.


keywords

AirTran; ValuJet; Low cost airlines in theUS; Cost management at AirTran; Keysuccess factors of low-cost airlines;Employee management at AirTran;Advertising strategy of AirTran;Marketing strategies of AirTran;Multitasking at AirTran; Differentiationstrategies of AirTran; Joe Leonard; Marketshare of major US airlines.





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AirTran Airways: Leonard’s FutureGrowth Plan

AirTran Airways was the second-largestlow-cost, lowfare airline in the US (afterSouthwest) and was one among the fewthat was profitable even after September11. While the majors collectively lost $5billion in 2003, AirTran increased its profitsfrom $10 million in 2002 to $100 millionin 2003. Unlike most other prominentLow Cost Carriers (LCC) such as Southwestand JetBlue, AirTran targeted businesstravellers with business class seats, andoperated via a hub and spoke system.


• To discuss the genesis of the airline, thestrategies employed for growth, and thefuture amid increasing competitivepressures

• To discuss the following points: (1) theunique model employed by AirTran forits growth and the difference betweenits model and that of the majors and theLCC; (2) the product developmentstrategy used by AirTran to attractbusiness travellers; and (3) the challengesthat might be faced by AirTran due toits fast growth and the nature ofcompetition.


keywords

AirTran; US airline industry; ValuJet;Joseph Leonard; Low-cost carriers; Point-to-point flights; Hub and spoke model;Deep discount fares; A-Plus rewardsprogrammes; Product improvements.

Mazda’s Magical TurnaroundMazda, Japan’s fifth-largest automaker,witnessed a consistent decline in its revenuein the 1990s. During 2000-2001, its losstouched a record $1.2 billion due to anoversized workforce, unsuccessful growthinitiatives and a blurred brand image.


• To discuss the strategies that Mazdaadopted to put itself on the path tosustainable profitability and stage aremarkable comeback.


keywords

Japanese automobile manufacturers;Honda; Toyota; Nissan; Mazda’s sports carheritage; Millennium plan of Mazda;Domestic sales of Mazda; New models fromMazda; History of Mazda; Brand strategyof Mazda; Mazda’s turnaround.

Janus Capital Group: TheRevival of the American Mutual

Fund CompanyWith the revelation of the mutual fundscandal in the US in 2003, Janus CapitalGroup, a major player who had half of theUS total investments in growth funds, washit hard with huge fund outflows.Moreover, Janus was also charged withunethical and illegal trade practices.Although it spent $226 million to settlethe charges, investors had lost their faithin the company. To rebuild its brand image,the leadership of the company was handedover to Steven L. Scheid and Gary Black,two veterans from the financial servicesindustry.


• To discuss the strategies adopted by JanusCapital Group to win back investorconfidence in the backdrop of the mutualfund scandal in the US.

Industry Mutual Fund ManagementReference No. RTS0029Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Mutual fund industry in the US; Mutualfund scandal in the US; Janus Capital Group;Market timing; Late trading; CanaryCapital; Mutual Fund Reform Act; StilwellFinancial; Morningstar ratings; Winninginvestor confidence in mutual funds; Noload funds; Growth of mutual funds in theUS; Investment Companies Act of the US.

Fiat Auto: Turning Around theTurnaround Strategies?

Fiat Auto, the $24 billion flagship companyof Italy's largest industrial group FabbricaItaliana Automobili Torino (FIAT), hasaccumulated $9.3 billion in net losses from1999 to 2003, and the Fiat group isstruggling to turnaround its auto business.Fiat was established in 1899 and the group’score business is automobile manufacturing.Over the years, Fiat Auto has producedsome very popular passenger car modelsbut the company’s profits have been on adecline since 1995. The company’sproblems stem from inflexible productionlines producing only one model, hugeproduction overheads, and unyielding

labour unions leading to constantgovernment intervention and a lack of anyresearch and development and innovationpolicy.


• To discuss the reasons for the decline ofthe company and the turnaroundstrategies that have been implementedsince 1999

• To understand the various factors thathave resulted in the failure of theturnaround strategies.


keywords

Agnelli family; Diversification of the FiatGroup; Bankruptcy; Luca DiMontezemolo; Inflexible production lines;Dependence on single model; Governmentintervention; Turnaround efforts.

Delta Air Lines: Grinstein’sRestructuring Challenge

During 2001-2003, Delta Air Lines (Delta)had cumulatively lost $3.3 billion, in syncwith industry losses of $21 billion. Deltahad laid off 16,000 employees and had cutcapacity by 16%. To improve revenues,Delta had strengthened its alliances withits regional Delta Connection partners andinternational partners through 'SkyTeam'.The airline had also leveraged technologythrough its Delta Nervous System (DNS)to cut costs and improve productivity. Inaddition, to compete with the Low CostCarriers (LCC), the company had launchedSong, a low cost subsidiary in select markets.In spite of these initiatives, it posted lossesof $383 million in the first quarter of 2004due to high labour costs as its pilots werethe highest paid in the airline industry.Having failed to get the requiredconcessions from the pilots, Leo Mullin,the CEO of Delta, resigned and GeraldGrinstein took over in January 2004. Aftertaking over, Grinstein announced acomplete strategic assessment of theairline.


• To discuss the various problems facedby the company and the choices it needsto make a return to profitability

• To discuss the strategies adopted by Deltato lower its costs and the advantage itderives from DNS

• To discuss the challenges Delta faces dueto its high labour costs and increasingdebt

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• To discuss the challenges posed by therapid growth of LCC and the strategicimportance of Song in the long run

• To discuss the merits and demerits ofthe regional and international alliancesfor Delta

• To discuss the ways in which Deltamainline can optimise and streamlineits operations

• To discuss the possible outcomes of thestrategic assessment and the pros andcons associated with them.


keywords

Network carriers in the US; Businesssegments of Delta Airlines; History of DeltaAirlines; Leo Mullin’s revival plan for DeltaAirlines; Employee involvementprogramme at Delta; Delta Airlines’business alliances; Cost management atDelta Airlines; Productivity enhancementsat Delta Airlines; Delta Nervous System(DNS); Song; Delta expansion initiative.

Lucent Technologies: TheResurrection

By the turn of the 21st century, LucentTechnologies, which was one of the leadingproviders of carrier network equipmentsin the world in the 1990s, was on the brinkof disaster. Due to heightened competitionin an already saturated global telecommarket, Lucent witnessed a sharp declinein its revenues and even its survival becameuncertain.


• To discuss the strategies that enabledLucent to bounce back from its neardeath experience

• To discuss Lucent’s plans for a long-termprofitable future.

Industry Wireless Telecom EquipmentsReference No. RTS0026Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

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Carrier network equipments manufacturers;Competition in the global telecom market;Patricia Russo; AT&T; Bell Labs; AvayaIncorporated; Troubled times for LucentTechnologies; Strategies of revival ofLucent; Lucent as a telecom serviceprovider; Top 10 telecom manufactures inthe world; Products from Lucent.

Reinventing the Buick MagicBuick, one of the oldest and premium brandsof GM (General Motors), has beenwitnessing a rapid decline in sales andmarket share since the mid-1980s. Despitetwo reorganisation efforts in 1985 and1992, GM failed to reduce Buick’s costsand revive its sagging production lines.


• To discuss GM’s efforts since 2001 torevitalise Buick to achieve sales of halfa million cars per annum.

Industry Automobile ManufacturingReference No. RTS0025Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

GM (General Motors); The history of theBuick brand; Buick city; GMs NorthAmerican Operations (NAO); The lighttruck boom in the US; Buick’s salesproblems; Buick rendezvous; Buick ‘bengalconcept’ vehicle; Harvey Earl campaign;Park Avenue Ultra; J.D. Power andAssociates; Buick Velte concept; ChangingBuick’s image; Attracting younger buyersfor Buick.

Toshiba: Restructuring to Sustainits Leadership

By the end of the 1990s, ToshibaCorporation was finding it difficult tomaintain its leadership position in thearena of PCs, laptops and dynamic randomaccess memory, due to fierce competitionfrom Dell, International Business MachinesCorporation (IBM), Hewlett-Packard(HP), and scores of others. The ongoingrecession in the Japanese economy andreduced consumer spending also added toits woes. Toshiba now looks set to regainits lost advantage through its fine-tunedrestructuring strategies.


• To discuss Toshiba’s restructuringstrategies

• To discuss whether the strategies adoptedby Toshiba would help it to regain itslost advantage.


keywords

Toshiba Corporation; In-house companysystem; Mid-term business plan; 2001action plan; Restructuring strategy; iValuecreation company; Toshiba value created;

Dell PCs; Management innovation 2001;Inter-company value chain; Procurementinnovation division; PC and peripherals;Notebooks; Dynamic random accessmemory.

Daewoo Corporation: CorporateRestructuring Success

Daewoo, which in Korean stands for ‘greatuniverse’, was Korea’s second-largestconglomerate and one of the world’sleading automobile companies. Belying theKorean belief, ‘the chaebols are too big tofail’, Daewoo was declared bankrupt by thegovernment of Korea in 2000.


• To discuss the restructuring efforts ofthe affiliate companies of the Daewooempire against the backdrop of Daewoo’srise and fall.


keywords

Daewoo; Restructuring; Kim Woo Choong;Chaebol; Workout; General Motors; Debtrestructuring; South Korea; Asian financialcrisis; Big deals; Turnaround; Electronics;Korean economy; Hyundai.

Korea’s Kookmin Bank:Restructuring Strategies

The Asian crisis of 1997 had a devastatingeffect on the economies of the southeastAsian countries. The majority of the loansextended by the countries’ financialinstitutions to prime sectors includingmanufacturing and real-estate sectors, wentbust. Kookmin, the largest commercialbank of South Korea was no exception.Kookmin under the leadership of Jung TaeKim, who was named the ‘best CEO’ in2001 by the Korean Stock Exchange, forhis leadership and governance practices,adopted various restructuring strategies toretain its profitability.


• To discuss Kookmin Bank’s restructuringstrategies

• To discuss the contributions of KookminBank’s CEO, Jung Tae Kim.

Industry Banking and FinancialServices







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Korea’s Kookmin Bank; Restructuringstrategy; Asian financial crisis; Jung TaeKim; Kookmin Interbank Payment Service(KIPS); Customer RelationshipManagement (CRM); Risk managementgroup; South Korean chaebol; Risk AdjustedPricing System (RAPS); Basel II capitalaccord; Financial leverage; Housing andCommercial Bank (H&CB); Privatecommercial bank; South Korean financialsystem; Chip-based mobile banking.

Tata Tele Services Ltd.: Setting upa New Connection

Tata Tele Services Ltd. (TTSL) a part ofthe Tata Group of companies, and one ofIndia's biggest business conglomerates,spearheads the group’s presence in thetelecom sector. TTSL was incorporated in1996 and in spite of being an early entrantin the Indian telecom market, it hadacquired the image of a laggard. Thecompany however, is trying very hard tobecome a major player and has come upwith a series of initiatives to improve itsmarket share.


• To discuss the strategies taken up bymanagement to turnaround the company

• To discuss the factors that drive theIndian telecom sector and how TTSL istrying to increase its customer base byoffering better services

• To discuss TTSL’s ambitions to becomea popular brand by focusing on thecompany’s initiatives towards offeringits subscribers more value and less costs.

Industry Telecom IndustryReference No. RTS0021Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Tata Tele Services Limited; Tata Group;Bharti Telecom; Reliance Infocomm;Hutchinson Essar; GSM (global system formobiles); CDMA (Code Division MultipleAccess system); (GPRS) General PacketRadio Switching; Data based services; Push-to-talk; Distribution network.

Nissan and Mitsubishi: A Tale ofTwo Turnarounds

In the late 1990s, when Renault andDaimlerChrysler took up the challenge ofturning around ailing Japanese carmanufacturers Nissan and Mitsubishirespectively, observers were sceptical oftheir chances. Both the Japanese car

manufacturers were plagued with similarproblems like huge debt and slumping sales.While Renault’s turnaround man CarlosGhosn nicknamed ‘le cost killer’ provedthe sceptics wrong by successfully turningaround Nissan within a short period of time,DaimlerChrysler’s Rolf Eckrodt’s attemptto revive Mitsubishi did not yield desiredresults.


• To discuss the situations that led to thetroubled times at Nissan and Mitsubishi

• To discuss why Renault andDaimlerChrysler picked up a stake inthe ailing Japanese auto manufacturers

• To discuss the turnaround efforts ofGhosn and Eckrodt

• To discuss why Nissan could be turnedaround while Mitsubishi could not.

Industry Auto ManufacturingReference No. RTS0020Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

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Nissan and Mitsubishi turnaround; Renaultand DaimlerChrysler; Carlos Ghosn; RolfEckrodt; Cross functional teams; Nissanrevival plan; Keiretsu; Common supplierMitsubishi Motors Corporation (MMC)operating system; Nissan’s 3-3-3programme; Cost-cutting at Nissan;Mitsubishi triple-zero scheme.

Sony’s Cost-Cutting StrategiesSince its inception in 1946, SonyCorporation has been known for itsinnovation and product quality. However,since the late 1990s, due to highcompetition from domestic andinternational players, recession in theJapanese economy and quality concernsof its gadgets, Sony has been facingstagnant growth and decreased profitability.With its core business of consumerelectronics witnessing stagnated growth,Sony under its CEO, Nobuyuki Idei, initiateda massive restructuring plan in 1999, whichwas primarily aimed at cutting costs andregaining the company’s competitive edge.


• To discuss the restructuring strategies ofSony

• To discuss the company’s‘transformation 60’ initiative .


keywords

Sony; Restructuring; Cost Cutting;Consumer Electronics.

Philips: Restructuring to MakeThings Better

Since the mid-1980s, Philips, one of thelargest consumer electronics companies inthe world had been witnessing losses inmany of its fourteen divisions, includingits core business – consumer electronics.Cheaper products from Japanese andKorean companies flooded Europe, whichwas the niche market for Philips. The1990s were no different for Philips and itcontinued to reel under losses andstagnating growth.


• To discuss how Philips, under CEOGerard Kleisterlee with his ‘towards onePhilips’ philosophy, has been able torecover itself and is preparing itself fora profitable future.


keywords

Philips; Restructuring; Towards onePhilips; Gerard Kleisterlee; Consumerelectronics; Corporate strategy; Lets makething better; DVD recorders; Compact disc;Strategic conversations; Recovery plan ofPhilips; Change at Philips; Sony;Semiconductors; Medical systems.

Kellogg’s: Reclaiming its LostLeadership

Kellogg’s, an American icon for breakfastcereals, had been facing stagnating growthsince the early 1990s. With its focus onselling high volumes, Kellogg’s offered highdiscounts to clear its stocks, which resultedin the reduction of profitability. Further,in 1999, Kellogg’s lost its leadershipposition in breakfast cereals in the USmarket to General Mills.


• To discuss the restructuring strategiesadopted by Kellogg’s under the leadershipof its new CEO, Carlos M Gutierrez, toonce again become the biggest breakfastcereal maker in the US.

Industry Pastas and CerealsReference No. RTS0017Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

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Breakfast cereal makers in USA; GeneralMills; Ready-to-eat cereals market in USA;Restructuring at Kellogg’s; Lender’s Bagels;Country Inn Specialities; Ernie; Tony thetiger; Toucan Sam; Kellogg’s Special ‘K’brand; Branding strategies of Kellogg’s;Kellogg’s sales by the turn of the century.

Cisco’s Turnaround: John T.Chambers’ Strategy

Cisco had outperformed the market’sexpectations for 43 years consecutivelyand had overlooked the increasing problemthat the company was facing. It alsounderestimated the effects of a majoreconomic recession and was soon facingfinancial crisis. At such trouble time thecompany found in John T. Chambers avisionary leader that could turn thecompany around to a profitable future.


• To discuss that ‘nothing is certain inbusiness’ and also that it requires aneffort of three gorges magnitude to saveoneself from 100 years flood (suddenand steep recession)

• To discuss Chamber’s leadership style

• To discuss Cisco’s turnaround strategy.


keywords

Cisco Systems turnaround; John TChamber’s strategy; Mergers andacquisitions; Industry-wide networkprotocols; Enterprise resource planning(ERP); Mike Volpi, Lary Carter, Ed Kozel;Eye of the Storm; Dotcom bust;Telecommunications; Virtual close; Vendorfinancing model; E-customer; Internetcapabilities review; Networking equipment;American hardware industry.

VIP: The Indian LuggageCarrier’sTurnaround Strategies

VIP Industries (VIP) is India’s largestmanufacturer of luggage carriers, and overthe years, has become a generic name forluggage for the Indian traveller. Set up in1971, VIP emerged as a popular brandduring the 1980s and the 1990spredominantly due to innovative productsbacked by successful brand buildinginitiatives. However, in the new millenniumthe company experienced decreasing salesand had to struggle with several challengesdue to stiff competition from

multinational brands and the presence of ahuge unorganised sector that offeredcheaper imitations.


• To discuss the strategies taken up by themanagement to turnaround the company

• To discuss how VIP changed its retailingstructure to provide a better service tothe consumers and its efforts toreposition itself as a stylish and modernbrand

• To discuss VIP’s ambitions to become apopular global brand by focussing on theVIP’s international acquisitions and tie-ups.

Industry Luggage IndustryReference No. RTS0015Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

VIP Industries; Dilip Piramal group;Samsonite Corporation; CarltonInternational; Nitol Motors PVT Limited;Cheaper Chinese imports; Unorganisedsector; Delsey; Improved retailingambience; Advertising; Acquisitions and tie-ups.

Restructuring Efforts at CadburySchweppes

In 2003, Cadbury Schweppes, the globalbeverages and confectionery manufacturerand retailer, saw its profits slipping despitea rise in its overall sales. An increase in rawmaterials and employee costs increased itsoperating costs and reduced its pre-taxprofits.


• To discuss the ‘fuel for growth’ initiativeof Cadbury Schweppes through which thecompany aims to cut down on its costsand reorganise itself over a four-yearperiod.

Industry Beverages and ConfectioneryManufacturing


keywords

Global confectionery and beverage business;Adams; Global sugar confectionery brands;Cadbury; Dr. Pepper; Europeanconfectionery business; Fuel for growth;Restructuring activities at CadburySchweppes; Schweppes; Halls; Trident;Dairy Milk brand of Cadbury; Globalchocolate market; Berkshire Hathaway

investment fund; Global non-carbonatedbeverages market.

NOKIA: Restructuring StrategiesSince its entry into the new millennium,Nokia, the global leader in digitaltechnologies and telecommunications, hasbeen witnessing stagnating revenues. Withthe saturation of the European mobilephone market (Nokia’s major market)coupled with strong competition fromAsian manufacturers like Samsung, LGElectronics and TCL Holdings, Nokia’ssales growth is below the global average.Besides, with the consumer preferenceshifting towards higher end phones withcolour screens and imaging capabilities,Nokia is failing to achieve the desired salesvolume as it continues producing its utilityhandsets for the lower end mass markets.


• To discuss the recovery strategiesadopted by Nokia to sustain its globalleadership in the mobiletelecommunications market.

Industry Wireless Telephone HandsetsReference No. RTS0013Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Digital telecommunication business; Thirdgeneration (3G) mobile phones; GlobalSystem for Mobile Communications (GSM);Nokia mobile phones; Nokia networks;Nokia ventures; Digital subscriber linenetworking equipment; High capacityInternet security appliances; Samsung; LGElectronics; TCL Holdings; Ningbo Bird;N-gage; Code division multiple access(CDMA); Sony.

Gateway’s RestructuringStrategies

Gateway Inc., the computer manufacturerfamous for its cow-spotted boxes grewquickly to become a multi-billion dollarcompany. By the year 2000, the companystarted losing its market share. Growingoperating costs of the company coupledwith the fall in demand for computers in2001 drove the company into losses.


• To discuss the company’s growth as abrand until 2000

• To discuss the factors that not onlyimpeded the growth of the companypost-2000 but also made it lose a hugechunk of its domestic and internationalmarket resulting in huge losses






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• To discuss the restructuring steps takenby the company to come out of the redand how these measures were getting itback on track.


keywords

Gateway Incorporated; The Rolls Royceof laptops; Beyond the box products;Consumer electronic products;Information Technology Association ofAmerica; Non-PC products; Lowoperational costs; eMachines; Mergers andacquisitions; Cost of Goods Sold (COGS);Restructuring strategy; Low-costdistribution model; Supply chainmanagement; Tedd Waitt; Cow-spottedboxes.

Turning Around PorscheFailures teach better lessons than successes.This was true with Porsche, one of thefinest carmakers in the world. Since the1960s, the Japanese carmakers, with theirunprecedented production acumen werebecoming a real threat to Porsche.Porsches’ decision to take on thecompetition head on only with increasedproduction, proved fatal as it jeopardisedits technical innovation, which Porschehad long been known for. The new CEO,Wendelin Wiedeking, who took over thereins of the loss making Porsche in 1993,initiated the turnaround at Porsche.


• To analyse the turnaround strategies ofPorsche under the leadership of WendelinWiedeking.

Industry Auto ManufacturingReference No. RTS0011Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Porsche; Wendelin Wiedeking; GreatDepression; Volkswagen; 356 Roadster;Peugeot; Porsche 911; Formula 1 racing;Lean production; Just-in-timemanufacturing; Zero defect manufacturing;Porsche improvement process; Boxter;Toyota; Sports Utility Vehicle.

Shinsei Bank: A TurnaroundThe Long Term Credit Bank (LTCB) wasone of the institutions that fuelled thepost-World War Japanese economicrevival. The bank’s core business area wasin long-term debenture lending where the

banks were expected to play a social roleby catering to the financing needs of thecorporate sector. The growing proximitybetween the bank and the corporate sectorresulted in ‘profit-motive’ taking abackseat and throwing up drasticconsequences after the Nikkei-crash in1990. The bank faced a rising proportionof bad loans in its lending portfolio due toits exposure in real estate. The Japanesegovernment introduced the FinancialRehabilitation Law in 1998 under whichLTCB was nationalised on October 23rd

1998. After being sold to RipplewoodHolding Inc., a US-based private equityinvestor group, in 2000, the bank was re-christened as Shinsei Bank. The new entitycombined the best practices of the Westand the existent structure of its predecessorto carve out one of the most spectacularturnarounds.


• To understand the effect of ‘social role’of banks in the Japanese banking systemand how it resulted in disastrousconsequences

• To discuss how an effective restructuringexercise can go a long way to revitaliseoperations, promote synergies inprofitability, technology and businessaspects, and achieve and sustain acompetitive advantage.



keywords

Shinsei Bank turnaround; Long Term CreditBank (LTCB); Ripplewood HoldingsIncorporated; Nationalisation of LongTerm Credit Bank; Japanese bankingsystem; Corporate restructuring; Effect ofNikkei crash on Japanese banking; Law forthe emergency measure to revitalisefinancial functions; Foreign investors inJapan; Restructuring; Masamoto Yashiro;FlexCube; PowerFlex account; Capitaladequacy ratio; Japanese economy.

Deustche Telekom: ATurnaround

In the late 1990s and the early 21st century,Deutsche Telekom, a German telecommajor and one of the largest integratedtelecommunications service providers inthe world, faced falling revenues in its corebusinesses. This was as an aftermath of theliberalisation of the telecom market inEurope and the company faced anunenviable task of being a regulated playerin an inflexible labour market. In 1999,Deutsche Telekom restructured its board

and reorganised itself into four divisions,T-Mobile, T-Systems, T-Com and T-Online.


• To discuss the various strategic initiativesthat were taken at Deutsche Telekomto make a turnaround.

Industry Telecommunications ServicesReference No. RTS0009Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Deutsche Telekom turnaround;Liberalisation of the telecom industry; 6+6point cost cutting programme; T-Systems;T-Com; T-Mobile; T-Online; Publicswitched telephone network; Kreditanstaltfur wiederaufbau; 3G mobile networks; T-Nova Deutsche Telekominnovationsgesellschaft; Growth strategy;Deregulation of the telecom market;European telecom industry; RegulatoryAuthority for Telecommunications andPosts.

Infineon: Signs of a RecoveryInfineon Technologies AG was one of thetop 10 semiconductor companies in theworld. In the late 1990s, the globalsemiconductor industry went into arecession. Further, the downturn in theglobal PC business in early 2000 led to adrastic fall in the Dynamic Random AccessMemory (DRAM) prices. Infineon, oneof the leading DRAM manufacturers, wascompelled to sell its chips at prices belowits manufacturing cost. This resulted in hugelosses for the company. Ulrich Schumacher,the CEO, took certain measures to regainthe profitability of the company.


• To discuss Infineon’s strategy ofsurviving the economic recession in anailing semiconductor industry

• To discuss the problems faced by theDRAM industry and Schumacher’s rolein the revival of Infineon.

Industry SemiconductorReference No. RTS0008Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Semiconductor industry; Infineonturnaround; IMPACT programme; ACTprogramme; Ulrich Schumacher; Agenda5-to-1 programme; Siemenssemiconductor; Joint ventures and mergers;Dynamic random access memory industry;Entrepreneurship; Wafer technology;

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Micron; Restructuring; Personal computerindustry.

Indian Bank’s TurnaroundStrategy

Indian Bank is one of the oldestnationalised banks of India. In 1992, theprudential norms related to assetclassification, income recognition andprovisioning were introduced, which madethe bank’s Non-Performing Assets (NPAs)clearly visible. These NPAs were graduallyincreasing because of the bank's methodsand systems. In 1999, a ManagementAdvisory Group, appointed by the ReserveBank of India, reported that Indian Bankwas a weak bank, as its accumulated lossesexceeded its capital and reserves. In 2000,Ranjana Kumar was appointed theChairperson and Managing Director andshe proposed a restructuring plan for athree-year period from 2000 to 2003 toturnaround the bank.


• To discuss the banking scenario in Indiaand various opportunities and threatsfaced by Indian Bank

• To discuss various strategiesimplemented by Indian bank to comeout of its losses.


Reference No. RTS0007Year of Pub. 2004Teaching Note AvailableStruc.Assig. Not Available

keywords

Indian banking industry; Indian bankturnaround; Ranjana Kumar; Non-Performing Assets (NPA); Restructuringplan; Mitr shared service; Capital adequacyratio; Vision 2010; Asset recoverymanagement; Provisioning; Assetclassification; Indbank merchant bankingservices; Income recognition; Public andprivate sector banks; Credit management.

EMC’s RestructuringFounded in 1979, EMC Corporation(EMC) became the world’s leading providerof high-end enterprise data storage systemsin the early 1990s. EMC provided storagesolutions to the world’s largest banks,airlines, Internet providers andgovernment agencies. Between 1997 and2000, EMC’s sales doubled every year.However, due to economic recession andincreased competition from establishedstorage vendors like IBM and Hewlett-Packard, EMC’s revenues have begun toslide since 2001.


• To discuss the events that led to thesudden decline of EMC’s revenues andsome of the initiatives taken by its newCEO Joseph Tucci to reverse thecompany’s fortunes.

Industry Magnetic Disk StorageReference No. RTS0006Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Not Available

keywords

EMC Corporation; Software storagemarket; Storage vendors; Hardware storage;SAN, NAS and DAS; Joseph Tucci’sinitiatives; IBM mainframe storage; EMChistory and Robert Egan; EMC revivalstrategies; EMC culture and sales tactics;EMC competitors; Data storagetechnology; Information life stylemanagement; Storage architectures; EMCSymmetrix product line.

Reinventing Chrysler: DieterZetsche’s Strategy

There had been times in Chrysler’s historywhen the future of the company was inserious doubt. Leaders such as Lee Iacoccawere successful in turning the companyaround from deep troubles in the past. Asimilar situation arose in 2000 after themerger with Daimler-Benz. Dieter Zetsche,considered a turnaround specialist, cameto the helm and made some strategic movesto put Chrysler back on track. The mostnotable steps that he took wererationalisation of the work force and hivingoff redundant plants and operations. Interms of product development his‘disciplined pizzazz’ approach was the mostnotable.


• To discuss the strategies adopted byDieter Zetsches to put Chrysler back ontrack.

Industry Automobiles IndustryReference No. RTS0005Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Dieter Zetsche; Turnaround; Daimler-Benz; Chrysler; Cost cutting; Mercedes;Auto industry; Jurgen Schrempp; Suppliercost reduction effort; General Motors;Toyota; Ford; Quality gates; Disciplinedpizzazz; Mergers and acquisitions.

LNM: Turning Around Sick SteelPlants

Laxmi Niwas Mittal (Mittal), who startedwith a rod mill in Indonesia in 1976, hadforeseen, as early as the 1980s, the changesthat the global steel industry would undergo.Starting from the late 1980s, Mittalacquired and turned around a host of steelplants in ten countries across the world.


• To discuss how Mittal, by turning aroundsick steel plants worldwide, made hisgroup (LNM) the second-largest steelproducer in the world in 2003.

Industry SteelReference No. RTS0004Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Not Available

keywords

LNM; Ispat International; Laxmi N Mittal;Turnaround strategies of Mittal; Europeansteel industry; Direct Reduced Iron; DRI;Acquisitions of Mittal; Ispat Mexicana andIspat Karmet; LNM and global steelindustry; LNM and loss-making steelplants; Mittal’s management; Mittal’s costmanagement; Mittal the turnaroundspecialist; Largest steel companies in theworld.

Turnaround Efforts at FordIn 2003, when Bill Ford took over as CEOof the Ford Motor Company, he did notinherit the most profitable company inthe world. The unintended consequencesof Ford’s ex-CEO, Jacques Nasser'sinitiatives continued to affect theperformance of the company. Thecompany that posted a net income of $7.2billion in 1999 incurred a loss of $5.5 billion(including a one time write off of $4.1billion in restructuring costs) in 2001. BillFord, faced with the onerous task of puttingthe company back on track, had initiatedsome concrete measures amidst scepticismabout his abilities to turn the companyaround.


• To discuss the reasons for the financiallosses of the Ford Motor Company andthe steps that Bill Ford has taken toovercome the same.

Industry Automotive and TransportReference No. RTS0003Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Not Available






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Turnaround; Bill Ford; Jacques Nasser;Restructuring; Ford Motor; Internalproblems; Cost cutting; Layoffs at Ford;Management overhaul; Premier AutoGroup.

Turnaround Efforts at SunMicrosystems

Sun Microsystems is having a tough timewith increasing competition in the servermarket. It has become ‘defensive’, withthe likes of Dell, Microsoft and Intelencroaching the low-end and companieslike IBM and HP-Compaq giving it a torridtime in the high-end of its market. Despitesuch obstacles, Scott McNealy, CEO of Sun,refused to make products that could workin tandem with other companies’technologies and stuck to his originalstrategy of making all the components inhouse, which included its own chips, theSPARC microprocessors, and its operatingsystem, the Solaris.


• To understand the competitive scenarioin the global server market

• To analyse Scott McNealy’s strategiesto turnaround Sun Microsystems andwhether the company needs to changeits course and partner with itscompetitors.


keywords

Turnaround; Restructuring; Scott McNealy;Sun Microsystems; Price wars; Wintel;Competition; Network computing;Technology; Server market; Solaris;Revival plan; Linux; Java; Network 1.

Restructuring Initiatives at AlstomAlstom, the French multinationalengineering group that is considered a globalicon of French technological prowess, isin deep trouble, burdened with huge debts.The French government bailed it out witha package of •3.4 billion.


• To discuss the reasons that contributedto the colossal downturn at Alstom

• To discuss the efficacy of the Frenchgovernment’s bailout of a public limitedcompany.

Industry Electrical ProductsReference No. RTS0001Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Alstom; Government bailout; RestructuringAlstom; Alstom’s financial troubles; EUCommission; EU competition laws; France;Layoffs; Patrick Kron; Turnaround;Alstom’s bailout; Turnaround specialist;French Government and Alstom; Frenchengineering company; Alstom PowerDistribution.

Motorola's Spin-off Decision:What's the Spin?

Lucent from AT&T, Delphi from GM,BenQ from Acer, Novelis from Alcan andmany others are examples of companiesspinning off a major part of their businessinto a new business. Spin-offs areincreasingly being used by companies as amethod of restructuring in order to increaseshareholder value and to improve focus ontheir core business. In the wake of thesedevelopments, Motorola, the third largestmobile phone manufacturer announced thespin-off of its handset business. This casestudy sheds light on the role played by spin-offs in improving the performance of acompany. It also focuses on circumstanceswhich led Motorola to consider the spin-off decision. What are the possible reasonsfor the spin-off announcement? Whatimpact does it have on Motorola? WillMotorola’s handset business be able tosurvive without the Motorola brand name?


• To analyse the reasons underlying a spin-off decision, when does it make sense tospin-off one of the existing businesses,what kind of business (a business doingwell or a business doing badly) should bespun-off, etc.

• To understand and debate on theimplications of a spin-off for the parentcompany’s bottom line and theconsequent structural changes warranted

• To debate on the pros and cons ofMotorola’s decision to spin-off, whatcan it expect from this spin-off, whowould be the beneficiaries, etc.

Industry Telecommunication IndustryReference No. SPN0001Year of Pub. 2009Teaching Note AvailableStruc.Assig. Available

Keywords

Motorola, Spin-off, Divestiture, Mobilephone, Handset business, Brand, Branding,Brand Image, Moto Razr, Edward Zander,Carl Icahn, Culture, Product development

Slumdog Millionaire (A):Accolades and Acrimonies

This case study, the first in the three-partseries, captures the various perspectivestowards Slumdog Millionaire. While themovie has invited much criticism for itsaudacious representation of poverty inIndia, the popularity of the movie is clearlyvisible in terms of its search ranking(84,100,000), which is just less than thekey search of the world’s most popularbook – Bible (125,000,000). This casestudy is primarily aimed at delving intomany other such perspectives on the DannyBoyle-directed movie Slumdog Millionaire.While the movie has given oodles of hopeand optimism for a few to sustain even inthe direst of situations, for others themovie has been nothing else but areiteration of the age old perception ofthe West towards East. In the backdrop ofthe new and emerging hybrid model ofIndian and Western cinema, the case studyexplores issues such as – the collaborativejourney of Indian cinema hand in glovewith the Westerners, the factors thatassisted in the corporatisation of the Indiancinema in the 21st century, the emergingtrends in the global cinema industry andfinally the reactions of the various sectionsof the society towards Slumdog Millionaire.


• This case study aims at achieving thefollowing pedagogical objectives: Toanalyse and examine perceptions of theWest towards East and how theyinfluenced the Indian cinema industry

• To assess the emerging hybrid model ofcinema through partnerships andalliances and the rationale behindHollywood and UK film industry to forgetie-ups with Bollywood

• To debate upon Slumdog Millionaire’scontroversial success and the futureprospects of the evolving hybrid model.

Industry EntertainmentReference No. SCJ0026Year of Pub. 2009Teaching Note AvailableStruc.Assig. Available

Keywords

Slumdog Millionaire, Danny Boyle, A RRehman; Hollywood, Bollywood, Oscars,

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P&G's Logistics Revolution Co-creating Value

Proliferation of products, brands,companies and even distribution channelsand media, have necessitated consumergoods industry giants to shift their attentionfrom brand marketing and positioningtowards a cross-functional focus. Whilemanufacturers vied for significant shelfspace, retailers competed for winningcustomer attention and loyalty. However,their inability in rightly assessing consumerdemand created market imbalance in theform of either excessive stocks or stockouts. The need to produce and deliver goodsbased on real demand made bothmanufacturers and retailers rethink/reviewtheir business relationships and co-createvalue for each other. This involvedintegration of their operations across thesupply chain and delivery of the right goodsto the right place at the right time withthe right operational costs. P&G was oneamong the first consumer goods companiesthat realised the significance of shelf spaceand the need to lure customers at the pointof sale. It initiated customer-driven supplychain management, wherein starting fromcustomer decision at the store shelf, itworked backwards to production. Thisrequired P&G to assess product demandbased on customers’ purchase decisions andbuying behaviour and this in turnnecessitated collaboration with retailers.In this context, P&G’s tie-up with Wal-Mart exemplified the success ofmanufacturer-retailer relationships. Theycollaborated with each other to trackcustomer buying behaviour with the helpof a sophisticated technology andaccordingly assess the demand for theirproducts. The case study highlights variousaspects like the need for conducivemanufacturer-retailer relationships in co-creating value, viewing supply chain as aprofit centre rather than as a cost centre,supply chain as a source of competitiveadvantage in ensuring top-line growth aswell as bottom-line performance,customer-driven supply chain - shift fromforecast-based to demand-based and betterinventory management by attainingbalance between stock-outs and excessinventory. However, sustainability andextendibility of P&G’s collaborationacross Wal-Mart's other stores as well asother retailers - in both developed anddeveloping countries - remains to beanswered.


• To discuss the trends and changingcompetitive dynamics of the globalconsumer packaged goods industry –developed vs developing markets

• To understand the role and importanceof supply chain management in aconsumer packaged goods company likeP&G

• To debate on the possibilities of supplychain management becoming acompetitive advantage and contributingto top-line growth as well as bottom-line performance

• To analyse and debate on the possiblesynergies between Delta Air Lines andNorthwest Airlines

• In a consolidating and troubled industry,which is the ideal company to be takenover – a strong player or a weak player?

Industry Consumer Packaged GoodsReference No. SCM0001Year of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Supply chain; Logistics; Customer-drivensupply chain; Demand-driven supply chain;Wal-Mart; Keith Harrison; Supply chainintegration; Manufacturer-retailerCollaboration; Consumer Packaged Goods;Wal-Mart Retail Link; Inventorymanagement; Balancing stock-outs andexcess stocks; Top-line growth and bottomline performance; Continuousreplenishment process; Categorymanagement

Tata Group's Strategy: RatanTata's Vision

The Tata Group is one of India' largestbusiness conglomerates established byJamshedji Tata (Jamshedji) in the secondhalf of the 19th century. Jamshedji's visionfor the Group was in line with nationalistgoals and ideals then, and envisaged tomake India self-reliant. After Jamshedji,Jehangir Ratanji Dadabhoy Tata (JRD)became the Chairman of the Tata Groupand played a significant role in continuingthe vision of the group. Tata's assets climbedfrom INR 620 million in 1939 to INR 100billion in 1990. Tata Motors had increasedits sales to INR 1 million in the year 1991and it had rolled out 3 million vehicles inthe same year. In 1991, Ratan Naval Tata(Ratan Tata/Ratan) took over theChairmanship from JRD Tata. Althoughhe was initially criticized for his poorperformance, over the years, Ratan Tatadisproved his critics. He restructured Tata

Group's business operations and made theGroup compete globally. Under RatanTata's chairmanship, Tata ConsultancyServices went public and Tata Motors waslisted in the New York Stock Exchange.Starting from the late 1990s, Ratanrevamped the operations of Tata Steel andmade it one of the lowest-cost steelproducers in the world. However, as theTatas lacks an heir who can succeed Ratan,the group is at cross-roads to decide whowill be the next chairman. After RatanTata's retirement who would succeed himand carry the vision of the Group is adilemma.


• To understand the vision that has driventhe Tata group till Ratan Tata joined

• To analyse the contribution made byRatan Tata to the Tata Group

• To analyse if conglomerates can bedriven by leaders' vision and notnecessarily by a strategy

• To analyse the leadership style of RatanTata

• To analyse the succession dilemma atthe Tata Group

• To analyse what kind of leadership isrequired for Tata Group after Ratan Tatasteps down.

Industry Business ConglomerateReference No. VMG0015CYear of Pub. 2008Teaching Note AvailableStruc.Assig. Available

Keywords

Tata Group; Succession Dilemma; RatanNaval Tata; Organisation Transformation;Tata Business Excellence Model; TotalQuality Management Services; Ratan Tata'sVision; HR Revamp; Vision, Mission andGoals Case Study; Leadership Style; Futureof Tata Group; Jehangir Ratanji DadabhoyTata; Jamshedji Tata

MindTree Consulting: Designingand Delivering its Mission and

VisionMindTree Consulting is an internationalIT consulting company with revenues ofabout $103 million in 2006, an increase ofover 85% from the previous year’s revenueof $55 million. Besides, MindTree hadseveral laurels to its credit. It was the world’syoungest company to be assessed at Level5 in both CMMI and P-CMM. Thecompany was ranked among the top fiveGreat Places to Work in 2004 in a studyconducted by Grow Talent Company andBusinessworld and rated as one of the BestEmployers in India in 2004 by HewittAssociates.

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When MindTree was established in 1999,the founders had set a clear Mission andVisions keeping in mind a timeframe of2005. The company had almost reachedthe Vision parameters. It went on to setbigger Vision targets for the future.However, there were questions raisedwhether a mid-sized IT firm like MindTreecan battle the big players like Wipro,Infosys, Satyam and TCS. At the sametime, it was also important how thecompany would keep its core values andculture which formed the foundation ofthe company from getting diluted as thecompany grew bigger in size. With hurdlesto cross, would MindTree achieve its Visionfor the future?


• To understand the analysis behind settingup of a company’s Mission and Visionstatements

• To analyse how a mid-sized IT firmachieved its Vision within a short spanof time

• To study the various challengesMindTree would face in its pace ofgrowth in the future

• To analyse how MindTree would achieveits set goals in the midst of competitionfrom other mid-sized IT firms and theIT giants in India.

Industry Information TechnologyReference No. VMG0014BYear of Pub. 2007Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

MindTree Consulting; Subroto Bagchi; IT;Vision, Mission & Goals Case Study;Infosys; Wipro; Satyam; TCS; Mission;Vision; Global Outsource; Offshore;Software Solutions; IT-ITES; Mid-size

Nestle’s Strategic transformation:Will it be successful?

Nestlé S.A., was one of the world's topfive, most respected, food and beveragescompany. Besides being the world's no.1food company in terms of sales, Nestlewas also the world leader in coffee(Nescafe), food and nutrition. Thecompany’s international Research &Development network supported productsmade in more than 500 factories in over84 countries.

Most food companies worldwide werefocusing on catering to health consciousconsumers and increase their reach intohealth care segments. On the samepremises, Nestlé acquired the medicalnutrition business of Swiss pharmaceuticalmajor, Novartis International AG in 2007,striving to reposition itself as nutrition,

health and wellness company. With thisacquisition, Nestle moved from being aminor player in healthcare nutritionsegment to world number two player inthe nutrition, health and wellness industry.Nestle aimed at becoming the leader of theindustry with the combined strengths ofthe two companies.

The case focuses on the strategictransformation initiatives undertaken atNestle. It analysis the acquisition and itsimpact and ends on the debate whetherstrategic transformation process will helpNestle achieve its long term objectives ofbeing a leader in nutrition, health andwellness?


• To understand the changing trends inhealth and wellnessindustry

• To discuss the takeover of medicalnutrition business of NovartisInternational AG by Nestlé and itsimplications

• To discuss the strategic transformationof Nestlé from a food company tonutrition, health and wellness company

• To discuss the future growth strategiesof Nestlé to achieve the goal ofbecoming the leader of the industry.

Industry Food & BeveragesReference No. VMG0013AYear of Pub. 2007Teaching Note AvailableStruc.Assig. Not Available

Keywords

Nestlé; Strategic transformation; NestleNutrition; Healthcare Nutrition Market;Vision, Mission & Goals Case Study; Foodand Beverage; Health and Nutrition Foods;Novartis Medical Nutrition; Synergy;Strategic fit; Nutrition; Health andWellness industry

Insurance Australia Group:Expansion Strategies

Insurance Australia Group Limited (IAGL)faced with competition back homerecognized the need to generate scale inAustralia and New Zealand and diversifythe Group’s business by geography, productand distribution channels to spread its risksand ensure sustainable profitability. TheGroup also planned to expandinternationally to achieve its targeted GrossWritten Premium growth rates over a longterm and with UK purchase the group wasexpecting GWP growth rates at the higherend of the range.

To be successful and remain profitable overa long period of time in the generalinsurance business and be able to generateannual compounding double-digit growth

rates in both Premium Income and Profit,IAGL planned to achieve through bothorganic as well as through acquisition. Butfollowing Tort Law reforms, fallingpremiums due to reducing claims costs, inaddition to smash repairer disputes,competitive pressures IAGL’s organicgrowth rate was affected.

IAGL had set a clear aim to increase topand bottom line performance by an average15% a year over the next 10 years. Butthe Australian insurance market was onlygrowing between 4% and 6% a year. WouldIAGL be able to outgrow the risk andachieve its financial goals and enhanceshareholder value?


• To discuss the expansion strategies ofInsurance Australia Group Limited(IAGL)

• To discuss the strategic fit between UKinsurance industry and IAGL

• To analyse the acquisition decision ofIAGL.

Industry InsuranceReference No. VMG0012AYear of Pub. 2007Teaching Note AvailableStruc.Assig. Available

Keywords

Insurance Australia Group Limited; Vision,Mission & Goals Case Study; IGA; AustraliaPrudential Regulatory Authority (APRA);Insurance Industry; Carbon Credit; CarbonNeutral; UK insurance market; MotorInsurance; General Insurance; MarketShare; Claims; Risks; Managing Costs;International Regulations; FinancialServices Authority [FSA]; Strategy;Sustainability; Mission; Vision; Acquisition;Gross Written Premiums; Segments ofInsurance Business; Social Security;Community; Peripheral vision; shareholdervalue

Lego Toys: A Makeover inCorporate Philosophy

The LEGO® Group is the sixth-largest toymanufacturer of the world. Although theGroup was a great toy maker, it was not agreat toy company. In the 1990s,children’s interest in toys had graduallyshifted from traditional toys to video gamesand Xbox’s, but LEGO stuck to its oldphilosophy of creating traditional toys. Asa result, the company faced huge financiallosses in 2003 and 2004. However, thingschanged for the better in 2004, whenJorgen Vig Knudstorp took over as CEO ofthe company, and in 2005, the companysaw its profits grow. The case discusses thevarious restructuring strategies undertakenby Jorgen. It also discusses his greatest

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contribution of transforming the corporateculture of a “do good” company to onethat was more focused on profitability andsustainability in the long run.


• To discuss the corporate restructuringstrategies of Lego

• To discuss the Change managementstrategies of Lego’s top management.

Industry ToyReference No. VMG0011KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Lego Toys; Change Management;Leadership.

The Changing Face of IntelIntel, the undisputed leader in themicroprocessor industry faces slowdown ingrowth in its biggest market, the personalcomputer (PC); even as cellphones andhandheld assume greater importance inpeople's lives. Paul Otellini (Otellini),Intel’s new CEO tries to reinvent Intel.Otellini has created business units for eachproduct area – home, enterprise, mobilityand digital health, and scattered theprocessor experts among them. He intendsto set up a fifth division that will focus oncustomising products for particularcountries or regions. Otellini has decidedto pay greater emphasis on marketing,realising that the only way Intel cansucceed in new markets is bycommunicating more clearly what thetechnology can do for customers. Toredefine the Intel brand, Otellini hasdropped its famous tagline and launched anew logo. It has entered into partnershipswith top corporate like Apple, Nokia andSamsung among others. He has reorganisedthe company from top to bottom,assigning new tasks to most of Intel’s98,000 employees. Most of the executiveshave been recruited from outside thecompany and include software developers,doctors, sociologists, and ethnographers.Is Otellini’s new strategy the right pathfor Intel?


• The case outlines Intel’s growth strategy.Its old marketing strategy, its newbranding strategy and its new businessmodel.

Industry Microprocessor IndustryReference No. VMG0010PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Microprocessor; Pentium; Paul Otellini;integrated circuit; Centrino; mature PCmarket; dual-core; innovation; businessmodel; product line-up; Core; ingredientbrand; Andy Grove; Moore’s Law; Intel.

‘Global Vision 2010’: Toyota’sStrategic Initiatives

In 2002, Toyota Motor Corporation, theNo.2 carmaker in the world, released its‘Global Vision 2010’, in which ithighlighted, among others, its concern forenvironmental protection. AlthoughToyota has been criticised for representinga false environmental friendly image,Toyota has constantly been involved inactivities like initiating environmentprotection plans and manufacturing hybridcars. The company believes that throughthis it would be able to achieve its aim ofbecoming the No.1 carmaker in the worldand occupy 15% of the global automobilemarket.


• To highlight Toyota’s efforts towardsenvironmental protection as part of itsglobal vision

• To discuss whether Toyota would achieveits goal of becoming the leadingcarmaker in the world by 2010 byestablishing itself in difficult markets.

Industry Automobile ManufacturingReference No. VMG0009Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Vision; Business ethics; Hybrid cars; Globalexpansion of Toyota; General Motors;Ford; Market positioning; Marketleadership; Corporate image; Socialresponsibility of an organisation; Productdifferentiation.

Running a Board: The Reuters’Way

For long, Reuters had made its reputationas a reliable news agency with its speed,accuracy and impartiality. But it earnedmuch of its revenue by transmittingfinancial information like share quotes,currency values and commodity prices withthe same efficacy as its news. Since itsinception in 1849 through to the 1990s ithad a formidable presence in the financialinformation providing business. In the1990s, it lost to the start-ups, which usedinformation technology, the Internet inparticular, effectively, seized the businessfrom Reuters and grew big right under itsnose. The board and the senior executive

team were accused of failure in directingthe company in the informationtechnology age. In 2001, under compulsionto change, Reuters had appointed TomGlocer, a lawyer and software developer asChief Executive Officer (CEO), a non-journalist for the first time in thecompany’s history. In 2004, NiallFitzgerald, former chairman of Unilever,was appointed as the chairman to theReuters board. Niall Fitzgerald took upinitiatives to make the board competentto lead the company in the 21st century.


• To highlight the failure of Reuters infacing competition

• To discuss the changes initiated by NiallFitzgerald to make the board competentto lead the company in the 21st century.

Industry Information Collection andDelivery

Reference No. VMG0008Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Reuters Group Plc.; Tom Glocer; NiallFitzgerald; Bloomberg; Board of directors;Financial information providing business;Running a board; Competency of board.

Semiconductor Industry:Samsung’s ‘BHAG’

Intel is the number one company in thesemiconductor industry, with a marketshare twice that of its nearest competitor,Samsung. However, a turnover rate muchhigher than that of Intel’s encouragedSamsung to announce its big, hairy andaudacious goal (BHAG) of becoming theleader in the global semiconductor industry.


• To discuss the strategies of Samsung tobecome an industry leader

• To discuss whether Samsung wouldachieve its goal (BHAG) by competingwith the other players of thesemiconductor industry.

Industry Semiconductors,Microprocessors, Chips

Reference No. VMG0007Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Samsung Electronic Co. Ltd.;Semiconductors industry; Microprocessorsand memory chips; Semiconductor IndustryAssociation; Intel Corporation; Flat panelLCD (liquid crystal display) televisions and

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display products; Big, hairy and audaciousgoal (BHAG); Digital convergencetechnology; Growth rate; Industry boom;Digital appliances; DRAM (dynamicrandom access memory) chips; Strategicalliances; Technology developmentpartnership; Competitive strategies.

PwC's Ulysses Programme:Preparing Future Leaders

Through CSRPricewaterhouseCoopers (PwC), one ofthe world’s big four accounting firms,introduced a unique training programmecalled ‘Ulysses’, for preparing future leadersfor running its global business in the 21st

century. The programme focuses onnurturing leadership skills in executivesthrough corporate social responsibility(CSR) initiatives, working in partnershipwith non-governmental organisations(NGO’s) and the local communities in thedeveloping world.


• To discuss as to how PwC’s Ulyssesprogramme, makes a case for leadershipdevelopment, ethics and socialresponsibility, and business strategy.

Industry Financial Consulting ServicesReference No. VMG0006Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

PricewaterhouseCoopers (PwC); PwC’sUlysses programme; Corporate socialresponsibility (CSR); Leadershipdevelopment programme; Culturallydiverse global business environment;Responsible and sustainable business;Thought leadership; Action learning;United Nations Development Programme(UNDP); Mergers and acquisitions; CSR andsustainability; Community-basedorganisations; Small enterprisedevelopment; Business in the 21st century.

Hewlett Packard’s BiggestThreat: Its Corporate Clarity

By the turn of the 21st century, the UScomputer behemoth had probably bittenoff a little more than it could chew. It wasinto everything which sounded digital -from providing billion-dollar tech servicesto manufacturing $100 cameras. In all itsbusiness segments, except for its printingand imaging business, it was competingagainst focused competitors.


• To discuss on how and why HP (Hewlett-Packard) has subscribed to its strategy

of being present in all segments of thedigital market and how far the strategyis relevant in today’s fiercelycompetitive world.

Industry Printing and ImagingEquipment

Reference No. VMG0005Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Hewlett-Packard (HP); Corporate clarity;Corporate identity; Carleton S Fiorina;Printing and imaging equipment; Computerindustry; Hardware industry; Compaq; ITsolutions providers; The HP way;Decentralisation; Agilent Technologies;Corporate restructuring; HP and Compaqmerger; Dell and IBM (InternationalBusiness Machines Corporation).

Infosys: Moving up the ValueChain

In April 2004, India-based InfosysTechnologies Limited became the firstlisted IT (information technology)company to record annual revenues of $1billion. Since its inception in 1981, thecompany has constantly moved up thevalue chain - from custom softwaredevelopment to standardised products, tobusiness process outsourcing and IT andbusiness consulting. However, major rivalIndian companies such as TCS, Wipro,Satyam etc., are also following similarbusiness models and moving into IT andbusiness consulting. Competition was alsointensifying from global majors such asIBM (International Business MachinesCorporation), EDS (Electronic DataSystems Corporation), Accenture, HP(Hewlett-Packard), etc.


• To discuss the evolution of Infosys overthe years and its future plans

• To discuss the changes in Infosys’organisation setup aimed at meetingbusiness and client needs

• To discuss the pros and cons of the globaldelivery model, and if any changesneeded to be made, considering that themodel can be replicated

• To discuss Infosys’ main focus on bankingproducts and if they need to expand theirproduct portfolio

• To discuss the company’s foray intobusiness process outsourcing when it hadalready established itself as a dominantplayer in high end services

• To discuss the opportunities and risksthat Infosys would face in the IT andbusiness consulting services

• To discuss the company’s acquisitionstrategy in Australia and China.

Industry Information Technology (IT)Reference No. VMG0004Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Infosys; Global delivery model; IT(information technology) consultingservices; NR Narayana Murthy; NandanNilekani; Moving up the value chain;Infosys’ enhanced service delivery model.

Microsoft Under Steve BallmerRiding on the personal computer (PC)revolution of the 1980s, Microsoft hasemerged to become the reckoning force ofthe global tech industry. But in the late-1990s, Microsoft had a huge challenge –the Internet. Many felt the company hadmissed the boat due to its belligerent attitudeabout its future. Microsoft’s woes becamenoticeable in 1997 when it came under thelegal scanner for antitrust violations.Incidentally, when Bill Gates named SteveBallmer as the CEO of Microsoft in January2000, many felt the move would usher in anew era of leadership for the company. SteveBallmer, who was known for his ‘bulldogdemeanour’, was also popular for his steelydiscipline and marketing blitzkrieg.


• To understand the need for changing thecompany’s mission statement as a partof reorganisation at Microsoft

• To understand the leadership style ofSteve Ballmer.

• To discuss Ballmer’s initiatives to bringin widespread changes at Microsoft andin steering and orchestrating thecompany’s activities.

Industry Computer SoftwareReference No. VMG0003Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Steve Ballmer; Microsoft’s antitrustviolations; Microsoft’s mission statement;Microsoft's vision Version 2.0; Microsoft’sre-organisation; Richard Belluzzo;Microsoft’s stock options; Microsoft’sbusiness division.

Harley-Davidson: Making of theCult Brand and After

Schoolmates Arthur Davidson and WilliamS Harley shared a passion for mechanics,especially for motorcycle engines. Both

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longed to join the ranks of motorcyclepioneers. By 1901 they had designed fourmotorcycle engines ready to be fitted intobicycle frames. With time, Harley-Davidson emerged as a cult brand.


• To discuss the making of this cult bike.

Industry Automotive and TransportReference No. VMG0002Year of Pub. 2005Teaching Note AvailableStruc.Assig. Available

keywords

Harley-Davidson; Cult brand; Babyboomers; Motorsport; Outlaw image; Hell’sAngels; Harley Owners Group; Open roadtour; Brand loyalty; Brand extension; Cultbranding; Linux; Apple computer;Customer communities; Business life cycle.

The Strategic Initiatives at HBSHarvard Business School (HBS),throughout its 95-year-old history hasalways been a pioneer in managementeducation and practices, nurturing futureCEOs for generations. Throughout the1990s, several socio-political events likethe collapse of the old communisteconomies, the rise of the Europeancommon markets and the rise of freemarket economies in many countries dueto globalisation, changed the dynamics ofbusiness worldwide. All these changescoupled with a slowdown in the USeconomy in the 1990s, caused a dip in HBS’revenues. To stay tuned with the latesttrends in world business and to shore up itsrevenues, HBS embarked on a three-pronged strategy in the late 1990s.


• To discuss the strategic initiativesundertaken by HBS and its plans togenerate the funds required by theseinitiatives ‘to educate leaders who makea difference in the world’.

Industry Management EducationReference No. VMG0001Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Available

keywords

History of HBS; Case studies from HBS;Entrepreneurship programmes at HBS;Capital campaign at HBS; Strategicinitiatives of HBS; Revenue and expensesof HBS; Harvard Business Review; Messagesof Kim B Clark; HBS Press; HarvardUniversity; Technology initiatives at HBS;Global research centres of HBS;Endowment funds of HBS; Alumni of HBS;Financials of HBS.


Documents

List of Case Studies on Strategy(Catalogue IV)