DOC

CISCO SYSTEMS FALL FROM GRACE

By Kyle Stevens,2014-03-26 16:27
7 views 0
Emanuel Medical Center (EMC) located in Turlock, California opened in 1917 and the traditional conceptual framework is not always applicable to small

    BROOKTROUT TECHNOLOGY, INC.

    Raymond M. Kinnunen, Northeastern University

    Case Objectives and Use

This case describes strategic and operating decisions facing a company producing electronic

    messaging systems for the fast-paced and competitive telecommunications industry. It explains

    Brooktrout Technology‟s history and its rapid and profitable growth up to 1999. It then

    documents the company‟s efforts to survive the “bursting of the telecom bubble” which has

    caused a major sales decline in 2001 and net losses in both 2000 and 2001. Students can analyze

    what is going on in the telecommunications industry and how this will affect the company.

Based on field research, Brooktrout Technology is appropriate for courses in strategic

    management/business policy, small business and entrepreneurship at undergraduate, graduate

    and executive levels.

    Case Synopsis

Brooktrout Tehcnology, Inc. is a high tech company founded in 1984 by Eric Giler, Dave

    Duehren and Pat Hynes. The company started out by applying its cutting-edge digital processing

    technology to voice messaging solutions for the telecommunications and networking

    environments. It subsequently expanded its product focus to include intelligent fax boards. In

    2002 Brooktrout is a leader in enabling hardware and software for the “New Network,” the

    convergence of the internet, telephone and wireless networks.

In 1984 Eric Giler set a goal of achieving $100 million in sales. But the company did not

    become profitable until 1990. After going public in 1992 (NASDAQ NM: BRKT), Brooktrout

    grew rapidly and in 1999 surpassed Giler‟s initial goal with sales of $128 million. Sales again

    increased in 2000 to $141.7 million and Giler set a new goal of $1 billion in sales and a vision to

    become the leading independent supplier of enabling technology to major telecom and computer

    manufacturers.

In the midst of the economic downturn and the bursting of the Telecom bubble, Giler in 2002 has

    to cope with major sales decline and two years of net losses. He aims to weather the storm,

    avoid layoffs and put the company in position to resume rapid growth once industry demand

    surges again. How well is Brooktrout Technology weathering the economic downturn? Given

    current industry conditions, how realistic is Giler‟s $1 billion goal and vision? Will he have to

    change his strategy?

     ___________________________________

    This case was prepared by Raymond Kinnunen, Northeastern University, and is intended to be used for class

    discussion rather than to illustrate either effective or ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the author and NACRA. ? 2003 by Raymond Kinnunen.

    CHARLES RIVER LABORATORIES

    Raymond M. Kinnunen, Northeastern University

    Case Objectives and Use

    The case introduces students to the life science industry that has gone through tremendous growth even during the “burst” of the tech bubble in Q1 of 2000. The case describes the company‟s history, a private company going public, then bought by Bausch & Lomb, followed

    by a management led leverage buyout (LBO), and again going public through a second initial public offering (IPO). The case pushes students to think about why Charles River Laboratories (CRL) was growing quickly and successfully. The students should analyze the issues going on in the pharmaceutical industry and how it has and will play an effect on CRL.

    Charles River Laboratories is appropriate for course in strategic management/ business policy, mergers and acquisitions, or entrepreneurship. It may be used at undergraduate, graduate, or executive levels.

    Case Synopsis

    Charles River Laboratories was founded in 1947 by Henry Foster the father of the current CEO James Foster. The company was developed to offer rodents to medical research and science for the study, testing, and development of new drugs. CRL supplies services primarily to pharmaceutical and biotechnology industries. They also supply hospitals, universities, and government markets. CRL as a company was privately held in 1947, went public in 1968, and was then bought by Bausch & Lomb in 1984. In 1999 the management led a leverage buyout and regained control of CRL for one year before taking it public once again. The life sciences industry has been growing at a phenomenal rate and pharmaceutical and biotechnology companies have continued to spend tremendous amounts in research and development due to the extremely large sum of money that it takes to bring a drug through trials and to the market. This continued growth in spending has directly supported the growth of CRL. With the demand on the industry to provide the testing support (via mice) CRL had grown through 21 acquisitions since 1994. CRL was the leader in their market in 2002 holding 46% of the market with the closest competitor holding only 11%.

    Given the recent trend toward consolidation in the industry, and with a lessening number of quality acquisition candidates, how will CRL continue this growth to keep investors happy? Venturing out of the core business of supplying research models or expanding those services were possibilities. Other issues included retaining long-term employees that had recently become wealthy with the recent IPO.

     ___________________________________

    This case was prepared by Raymond Kinnunen, Northeastern University, and is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the situation.

    Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting, November 2003, Tampa, Florida. All rights reserved to the author and NACRA. ? 2003 by Raymond Kinnunen.

    CISCO SYSTEMS FALL FROM GRACE

    Rebecca Addison & Graham Mitenko

    University of Nebraska at Omaha

    Case Objectives and Use

    This case examines the competition in the computer and networking industry during the formative years in the industry. The players in the industry tried to position their companies to fill unique positions, however, as the competition grew fiercer, their original lines of delivery started to blur and crossover into each other‟s products. This combined with obsolescence factor in leading edge industries (and the subsequent inventory problems) present many different but interrelated problems to the student. The computer and networking industry was developed unlike any industry in our history up to that point in time. It is important for the students to discuss and understand the implications of product development in a fast changing environment. It is better to develop ones own products (as Bell Labs did) or to acquire new products through M&A as Cisco attempted to do?

    This case is suitable for graduate or upper division undergraduate courses in business strategy, marketing strategy, production and finance. It would be especially useful in modules dealing with cost/benefit analysis in relationship to mergers and acquisitions, management strategy and life cycle problems.

    Case Synopsis

    The case describes the management decision of Cisco Systems to pursue a mergers and acquisition approach to adding new products and new product lines as compared to their competitors, most of whom employed a developmental approach. The challenge during this time period was to bring new products to the market before your competition, thereby ensuring a lion‟s share of the market for the company. During the mid to late 90‟s most companies were purchasing anything brought to market, without thought of whether it was useful or cost effective, they were just worried about getting left behind.

    Late in 2000 there was a noticeable slow down in new applications and replacement technology, therefore causing the industry‟s cash flow to dry up. Post 2000 the industry became a different animal, one where spending was not as free flowing as it had been in the previous decade. The case also looks at and briefly compares the strategies of Cisco‟s competitors and shows where their different products are starting to cross compete.

     ___________________________________

    This case was prepared by Rebecca Addison and Graham Mitenko, University of Nebraska at Omaha, and is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the situation.

    Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting, November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Rebecca Addison and Graham Mitenko.

    EAST TENNESSEE FOUNDATION

    Sherry L. Williams & Mary Kay Sullivan

    Maryville College

    Case Objectives and Use

This case is appropriate for an undergraduate or MBA Strategic Management course. It could be

    used mid-way through the semester or at semester‟s end as a comprehensive overview of

    stakeholder analysis, organizational strengths and weaknesses, evaluation of threats and

    opportunities in the general environment, evaluation of the competitive environment, and a

    determination of what strategy would best give this organization a competitive advantage.

    Case Synopsis

In October, 2002, East Tennessee Foundation (ETF), a nonprofit community foundation, faced

    some serious challenges. To achieve its purpose of building permanent endowments and

    “enriching lives and strengthening communities” in its 24-county service area, ETF was

    dependent on the returns from its investment portfolio and from the contributions of donors. The

    48% stock market decline since its March 2000, peak, had reduced the value of invested assets

    held by the foundation and thus the payout from these investments was down. Donations to ETF

    declined significantly from 2000 to 2001. Future economic conditions were a serious concern

Also, community foundations were confronting increased competition from commercial financial

    institutions, especially large investment companies . These companies offered charitable giving

    programs with lower fees and greater use of technology to serve investors. Banks and colleges

    and universities were beginning to enter the field. ETF‟s 38-year-old President and CEO, Mike

    McClamroch, is a capable, enthusiastic leader who is committed to service to community. He

    considered his 11-person team to be very effective, but overworked. The staff has a number of

    ambitious initiatives underway in the service area and would like to increase undesignated funds

    to better serve needs that they see. The bulk (89.3%, not including supporting organizations) of

    ETF‟s grants distributed, however, came from donor-advised funds; these are designated by the

    donor to go to a particular charitable cause.

ETF‟s fundamental strategic problem, although ETF has not defined it as such, is how to

    compete in an increasingly crowded field. ETF cannot be the low-cost provider, since

    commercial providers can offer lower fees. McClamroch must decide what ETF‟s competitive

    advantage is or could be.

     ___________________________________

    This case was prepared by Sherry L. Williams and Mary Kay Sullivan, Maryville College, and is intended to be used

    for class discussion rather than to illustrate either effective or ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Sherry L. Williams

    and Mary Kay Sullivan.

    ELEPHANT WALK THRU

    William J. Ritchi & Matthew S. Shell, Florida Gulf Coast University

    Ravi Corea & Chandeep Corea, Elephant Walk Thru

    Case Objectives and Use

Elephant Walk Thru (EWT) offers students an opportunity to apply environmental scanning

    concepts learned in a strategic management class to an international, non-profit organization.

    The case provides information regarding EWT‟s internal operations as well as selected external

    environmental factors providing an opportunity for the student to gather information from

    external sources as well.

The teaching note was written for application in an undergraduate Strategic Management course.

    This brief case is particularly appropriate for use early in the course during the introduction of

    the concept of environmental scanning since the case centers on identifying factors in the

    economic, political-legal, technological, and socio-cultural arenas. Ample opportunities exist for

    the student to uncover opportunities and threats in each of these domains.

    Case Synopsis

The case begins by providing general information relating to the origins of EWT and the

    realization by the leadership of the organization that an analysis of the external environment is

    needed to enhance future efforts in generating strategy. EWT is an organization in Sri Lanka,

    dedicated to melding the economic benefits of tourism and social awareness afforded by

    conservation activities. The organization is developing eco-friendly accommodations in a jungle

    habitat, allowing upscale adventure-seeking tourists the rare opportunity to observe elephants in

    their natural environment. Although the operational details of the project are in place, the

    administration of EWT is keenly aware of the fact that more information is needed relating to the

    external environmental influences on the project. The case provides information relating to all

    four external societal forces (e.g. political-legal, economic, technological, and socio-cultural).

     ___________________________________

    This case was prepared by William J. Ritchie and Matthew S. Shell, Florida Gulf Coast University, and Ravi Corea

    and Chandeep Corea, Elephant Walk Thru, and is intended to be used for class discussion rather than to illustrate

    either effective or ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by William J. Ritchie,

    Matthew S. Shell, Ravi Corea, and Chandeep Corea.

    EMANUEL MEDICAL CENTER: CRISIS IN THE HEALTHCARE INDUSTRY

    Randall D. Harris, California State University, Stanislaus

    Kevin D. Vogt, Emanuel Medical Center

    Case Objectives and Use

    The case was designed for courses in business policy/strategy and health care management. The

    case should provide a good illustration of the significant pressures faced by the management of a

    small not-for-profit healthcare facility. The case also attempts to expand the scope of discussion

    and illustrate the serious (some would probably argue critical) status of healthcare in the US.

    Case Synopsis

Emanuel Medical Center (EMC) located in Turlock, California opened in 1917 and consisted of

    150 acute care beds, 145 skilled nursing beds, a 49 bed assisted living facility, emergency

    services, ambulatory surgery, an outpatient diagnostic facility, home health, hospice and an

    occupational medicine clinic.

As of early 2002, Mr. Robert Moen, President and CEO, was experiencing a number of

    challenges. First, there had been negative publicity for EMC following newspaper accounts and a

    state investigation of the Haley Eckman incident. Second, the emergency room at Emanuel

    Medical Center was experiencing increasing pressure to deliver services in an increasingly

    difficult healthcare environment, particularly in light of federal EMTALA legislation. Third,

    reimbursements for services from HMOs and government programs had been drastically reduced,

    while paperwork and other regulatory burdens had increased. Fourth, for-profit managed care

    facilities were making significant incursions into EMC‟s service area. Fifth, EMC was beginning

    to experience labor shortages, particularly nurses, and this was driving up EMC‟s cost of

    operations.

    The net effect of all of these factors combined put ever-increasing pressure on the profitability of EMC. EMC‟s operating margins had been negative for some time. Moen was beginning to realize that the pressures being exerted on the hospital by its many stakeholders potentially

    threatened its survival as on ongoing operation.

     ___________________________________

    This case was prepared by Randall D. Harris, California State University, Stanislaus, and Kevin D. Vogt, Emanuel

    Medical Center, and is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Randall D. Harris and

    Kevin D. Vogt.

     HORIZON WIRELESS (A) AND (B)

    Julia A. Carson, Donald B. Boldt, & Ira Len Rhodes

    East Carolina University

    Case Objectives and Use

This case illustrates how a small business is successful in changing strategy and then evaluating

    the strategy to fit the needs of its customers. It may be used in assessing entrepreneurial

    opportunities or in identifying competitive advantage.

The Horizon Wireless case can be used at the graduate and undergraduate levels in strategy,

    management/business policy, small business and entrepreneurship.

    Case Synopsis

Horizon Wireless, a small company started in 1997 by M.A. and Alexandria Peterson, was an

    independent agent for US Cellular, a wireless services provider. The young couple worked from

    their home using an innovative marketing technique that targeted area businesses and the

    employees of these businesses. This approach was very successful as they reported increased

    revenues for each month they were open for business. By October of 1999, sales and net income

    before tax for the year was $545,490 and $257,427.

In order to grow the business and respond to the competitive pressures evolving in the

    marketplace, the next logical move for Horizon Wireless was to open a retail store. US Cellular

    was also putting pressure on the business to have a retail location or acquire one of theirs. The

    strategy had worked well for the business, and some ideas for expanding the sales territory were

    also considered as an alternative to a store.

In the A case, M.A. and Alexandria had to decide if they should open a retail store.

    The B case was set 15 months later. Horizon Wireless was faced with pressures from US

    Cellular to become an exclusive agent, or face reductions in the commissions for each sale as

    well as other changes in their business relationship.

     ___________________________________

    This case was prepared by Julia A Carson, Donald B. Boldt and Ira Len Rhodes, East Carolina University, and is

    intended to be used for class discussion rather that to illustrate either effective or ineffective handling of the situation.

    Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Julia A. Carson, Donald B. Boldt, and Ira Len Rhodes.

    KMART: THE STRUGGLE TO REORGANIZE

    Bobby Bizzell, University of Houston-Downtown

    Robert McGlashan, University of Houston-Clear Lake

    Case Objectives and Use

The case allows the students to follow the chronology of Kmart through the maze of

    reorganization until it was granted relief from the courts. The objectives of the case are as

    follows:

    1. To allow students to see the path to bankruptcy after the decision to enter into this legal

    action has been established.

    2. The students should be able to establish a dialogue within the class concerning the roles

    played by current management, interim management, suppliers, external funding sources,

    and major competitors. The timeliness of the case will generate a need to develop external

    information sources to be current in the news of the firm‟s potential for success.

    3. The class should also have a lively discussion of the personal and professional agendas of

    all of the players in the case.

The case is an excellent vehicle for discussion of reforming the strategy of a firm after

    bankruptcy or any other major external forces as presented. As a result the case is highly useful

    for a Business Strategy Course, a Legal Environment Course, or a Marketing Management

    Course at the undergraduate level.

    Case Synopsis

The case follows the actions of Kmart from early 2002 until June 2003 through its struggles to

    wind it‟s way though the reorganization maze following the filing of bankruptcy proceedings.

    The case does not go into the reasons for the firm reaching the position requiring the entry of

    Chapter 11 proceedings. These events are chronicled in some depth in a previous case on Kmart

    (NACRA Proceedings 2002). Rather this case looks into actions of management, the courts, and

    the suppliers and to a lesser extent the major competitors of Kmart.

The case allows the development of a comprehensive strategy for future survival after the firm

    has gotten out of the bankruptcy courts. The events, as listed, show how management used the

    company for its agendas, how external holding companies and hedge funds played a role in

    restructuring the firm‟s finances, and how the company looked at itself at the time of the case.

     ___________________________________

    This case was prepared by Bobby Bizzell, University of Houston-Downtown, and Robert McGlashan, University of

    Houston-Clear Lake, and is intended to be used for class discussion rather than to illustrate either effective or

    ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Bobby Bizzell and

    Robert McGlashan.

    LEVI STRAUSS & CO.: FROM RAGS TO RICHES TO RAGS

    Barry Allen Gold, Pace University

    Case Objectives and Use

The teaching objectives for this case are to: (1) identify the key topics in the management of

    organization change; (2) understand the benefit of using a theory to analyze organization change;

    (3) know why managers have to learn about complex change processes to manage them

    successfully; (4) recognize that knowledge of organization change is important for successful stmanagement careers in the 21 century, and (5) understand the new paradigm of organization change.

Particular emphasis is on the use of theory to understand organization change and ways to

    manage it. In addition, the overall objective is to generate discussion of the various approaches

    to change and if, in fact, there is a new paradigm for organization change in the 21st century.

This case is for use by advanced undergraduates and MBA students. A primary reason for

    selecting Levi Strauss & Co. is that it is a company that all students are familiar with and can

    easily understand. More importantly, Levi Strauss & Co. experienced a type of change that is

    common to many types of organizations even those in high tech industries.

    Case Synopsis

Levi Strauss & Co is one of the most recognized companies in the world. It has been in business

    for 150 years and until recently dominated the global casual apparel market with its signature

    denim blue jeans. In 1996 Levi had sales of $7.1 billion but two years later its revenue had

    dropped to $6 billion. This dramatic decline in revenues precipitated major changes at the

    company including the departure of Robert Hass the family owner of Levis and the appointment

    of an outsider to be CEO. Other important changes included a search for new products because

    sales of Levi's traditional blue jeans declined in the face of new styles including baggy and

    distressed jeans. Among the issues that the company faces as it struggles to regain its market

    share is: Has it managed to significantly change? Will it be able to sustain the changes it

    instituted?

     ___________________________________

    This case was prepared by Barry Allen Gold, Pace University, and is intended to be used for class discussion rather

    than to illustrate either effective or ineffective handling of the situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the author and NACRA. ? 2003 by Barry Allen Gold.

    MOO ROO, LLC

    Robert L. Anderson, College of Charleston

    Kathleen P. Anderson, BARK, LLC

    Case Objectives and Use

This case study about a company that produces expensive ladies‟ handbags was developed to

    give students the opportunity to create long-term strategy for a relatively new business. Students

    should analyze the various options Moo Roo, LLC has and then decide which ones, if not all, are

    in the company‟s best interest. For example, should the company relocate, should it expand its

    product line, can its target market be expanded, can it develop relationships with large

    department stores, and should the company go public? Hopefully, students would come to the

    conclusion that all of the opportunities suggested in the case are actually necessary for Moo

    Roo‟s continued growth and profitability.

    Case Synopsis

One night Mary Norton, a stay-at-home mother of two girls had a dream about flower covered

    handbags. Needing to do something to fill some of the time on her hands, Mary decided to make

    the bags she had seen in the dream. Three bags were sold at a spa where her baby sitter worked

    and many other customers expressed interest in the bags. In fact, the three bags generated so

    many requests from friends and spa customers for similar purses that Mary decided to start a

    business. She would design and produce elegant handbags that would complement the evening

    attire of smartly attired women. These women became what Mary called her “luxury women.”

Mary‟s dream in 1998 of flowered handbags led to the creation of a company that has produced

    handbags for celebrities and other women around the world. Moo Roo bags are now available at

    more than four hundred boutiques worldwide, and the prospects for continued growth are very

    positive. Moo Roo, LLC is expected to generate nearly $10 million of revenue by 2006. To

    realize this level of income, the company will expand geographically, add new products to the

    existing line, and open more company-owned retail outlets.

     ___________________________________

    This case was prepared by Robert L. Anderson, College of Charleston, and Kathleen P. Anderson, BARK, LLC, and

    is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of the

    situation.

Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting,

    November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ? 2003 by Robert L. Anderson

    and Kathleen P. Anderson.

Report this document

For any questions or suggestions please email
cust-service@docsford.com