List of Case Studies On Strategy (Catalogue IV)

S T R A T E G Y I S T R A T E G Y I S T R A T E G Y I S T R A T E G Y I S T R A T E G Y I
www.ibscdc.org
Turnaround R estructuring Turnaround Strategies
Low-Cost Airlines in India: Took off with Pride, Landed in Troubles

The primary objective of the case study is to analyse the sustainability of Low-Cost Carrier (LCC) model in Indian aviation industry. This case would enable a discussion on the factors that are critical for the successful functioning of LCCs; the factors that have led the Indian LCCs into trouble; and the sustainability of LCCs in the long run. Since 2003, when Air Deccan entered with its LCC model, Indian aviation was revolutionised. While with the increase in demand, opportunities increased, so did the threats with the increase in competition. In a span of 2 years, the industry witnessed 25% annual growth and the entry of four new players. It was estimated that by 2010, air passengers would increase to 50 million. However, instead of doing well, by 2007 Indian LCCs were bleeding. In 2007, Air Deccan merged with Kingfisher Airlines while, GoAir moved out of the LCC model, adding business class in its aircraft. With SpiceJet and IndiGo remaining as the only LCCs in India, the case delves into the reasons behind the failure of LCCs in India and enables an interesting discussion on what needs to be done to make the LCC model successful, given the potential demand. Pedagogical Objectives To understand the critical success factors for a LCC player globally and in India in particular To analyse the performance of LCCs in India and the reasons behind the failure of LCCs in the country To explore and evaluate various options to make Indian LCCs operations economically viable.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Aviation/Airlines RTS0189 2009 Available Available
turbulent times Wars, recessions and US Financial Crisis (2008). The current financial crisis has had crippling effects on luxury industry. The connotation of luxury is used in a very generic sense in this case study, symbolising all the ultra-premium and super premium goods. It also enables an interesting discussion on whether the industry succumbed to the troubled times business pressures or did it use those troubled times to come out with business and market innovations. This case study particularly looks at what happened to fashion brands as a result of US Financial Crisis. This case tries to resolve the following questions. Firstly, is luxury industry a recession-proof or a recession-prone industry? What made the luxury brands to hold back their expansion plans, lay off employees and set their minds on improvement of sales? How can luxury brands uphold their growth during turbulent times? Who can be their target customer and how should be their positioning strategy during crisis times? Pedagogical Objectives To analyse and understand the nature and business dynamics of luxury industry and to debate on whether luxury industry is recession-proof or recession-prone To examine the performance of luxury sector in the light of US Financial Crisis (2008) To analyse the ways in which luxury brands can sustain their growth when industry is engulfed by economic and financial crisis.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Luxury Goods RTS0188 2009 Available Available
and excitement through Revlons core products, nail colours and lipsticks. Despite the intense competition posed by players like LOreal, Estee Lauder and Procter & Gamble, Revlon emerged as a strong contender, becoming a multi-million dollar company in a short span of 6 years. However, trouble started brewing when the reigns of the company were passed on to Michel Bergerac, Charles handpicked successor, in 1975. With the companys focus shifting from its core beauty business towards diversified areas like healthcare, Revlon started succumbing to its competitors. Post acquisition in 1985, the company witnessed a series of efforts to restore its lost glory. But burdened under a debt-load of $2.9billion, and with the miserable failure of Vital Radiance, its latest product launch for women above 50, the dilemmas surrounding Revlon have increased greatly. Pedagogical Objectives To understand cosmetics industrys dynamics critical success factors, industry attractiveness, competitors analysis, etc. To analyse the reasons for Revlon losing its market share inspite of being an old player with formidable brands To discuss and debate the challenges facing the new CEO, David Kennedy and to explore all the possible ways and means for reviving Revlon.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Cosmetics RTS0187 2009 Available Available
Keywords Brands, Brandings, Positioning, Cosmetics, Consumer behaviour, Revlon, P&G, L'Oreal , Advertising, Marketing
Keywords Luxury Industry, US Financial Crisis, Luxury Brands, Premium Brands, Brand Loyalty, Recession, Purchasing Power, Disposable Income, Brand conscious customers, Conspicuous Consumption
Starbucks in US: Too Much Coffee Spilling All Over?

What helps retailers decide how much of a good thing is too much? This is the dilemma that Starbucks, the leading retailer, roaster and brand of specialty coffee is facing. Starbucks, with over 14,000 stores and $9.4 billion in sales worldwide, exemplifies how a commodity can be successfully converted into a premium brand. In about two decades, the company has grown from 17 to more than 10,000 stores in the US its largest market. However, now it is feeling the strains of rapid expansion with the same store sales in the US and the share price of the company declining. The situation has led to the reinstated CEO Howard Schultz ruing that in its efforts to grow; Starbucks has commoditised its brand. In the first
Keywords Industry analysis, Low Cost Carriers, Low Cost Carriers in India, Air Deccan, Aviation, Business Model, Positioning, CSFs, GoAir, Indigo, SpiceJet, Jet Airways, Kingfisher Airlines
Revlon's Revolving Fortunes: Resolving the 'Core' Brand Challenges

This case study, while providing a landscape of the cosmetics industry, offers scope to discuss the factors that enabled Revlon in becoming a global brand and why in spite of being such a renowned and popular brand, it lost out in the global cosmetics industry. It also enables to discuss the measures that the new CEO, David Kennedy, should take to rejuvenate Revlon. In the factory we make cosmetics; in the drugstore we sell hope, said Charles Revson, founder of Revlon. Guided by this principle, Charles had strived to promote glamour, fantasy
Luxury Industry in Turbulent Times

This case was primarily written to debate on how to manage troubled times for one of the highly recession-prone industries Luxury Industry. It captures the performance of luxury industry during
www.ibscdc.org
move at damage control, the company has announced that it would be closing 600 underperforming stores in the US. Will that be sufficient? What else should Schultz do to ensure that the Starbucks brand stands steady? This case study talks about how Starbucks converted the worlds second most traded commodity into a much sought-after luxury. The companys expansion strategy is dealt with in detail emphasising, how and why the company grew at the rate that it did. The data in the case study enables students to debate Starbucks position vis-vis its competitors. The changes that Starbucks made along the growth track are also mentioned along with how each change affected the company. Through the case students identify the brand dilemmas that Starbucks is facing and suggest alternatives for improvement. This case is best suited to understand how differentiation can increase consumer willingness to pay premium prices for a commodity item and how over-exposure can soon erode that same willingness, resulting in commoditisation of the brand. Pedagogical Objectives To understand the dynamics of the coffee industry especially the specialty coffee segment in the US To understand how a premium brand can be created around a commodity item To understand Starbucks growth strategy and debate whether growth and over expansion have led to the commoditisation of the niche brand To debate whether premium brands can grow big and ubiquitous without hurting their brand image To understand Starbucks position vis-vis its competitors and the brand dilemmas it faces.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Food and Beverages RTS0186 2009 Available Available
For one it was leadership in denial. Not willing to break the set precedents was another. The case also helps in debating how far was appointing Nardelli correct, given his background and precarious conditions of the company and the industry. Can he do a Lee Iacocca? Chrysler enjoyed iconic status at Detroit for a long time, but surrendered meekly to the European and Japanese automobile manufacturers. Guided by a prudent logic, the company teamed up with DaimlerBenz but the relation ended on a sour note. The private-equity firm, Cerberus Capital Management in a management buyout, took over Chrysler in 2007 for $7.4 billion. The underlying confidence stunned markets, automobile industry experts and analysts. Cerberus appointed Bob Nardelli to clear up the impending mess. Bob Nardelli, with his GE-background and turnaround experience at Home Depot, has chalked out a master plan to turnaround Chrysler. Lee Iacocca, for sure would be watching him over his shoulders. Any advice for Bob Nardelli? Pedagogical Objectives To understand and analyse the critical success factors and strategic inflection points of the auto industry To debate on the factors responsible for Chrysler's continuous failures What should Bob Nardelli do to revive the fortunes of one of the Detroits Big Three? To debate whether Bob Nardelli is the right person to lead Chrysler to its (un)known future.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile RTS0185 2009 Available Available
industry was searching for ways and means to deal with recession, Burger King had the additional burden of dealing with its internal problems. Meanwhile, the company witnessed a change in its leadership for the 17th time in 52 years as John Chidsey took over as the CEO of Burger King in April 2006. What strategies should John Chidsey implement to help the company survive in these difficult times? What impact would US recession have on the fast food industry? Will Burger King be able to survive in the industry? Pedagogical Objectives To understand the dynamics of the fast food industry To identify the factors that led to the growth of the US fast food industry To understand the impact of recession in the US economy on the performance of the industry in general and Burger King in specific To comprehend the challenges faced by Burger King in staying profitable in this industry and analyse the possible course of action for John Chidsey.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Fast Food Industry RTS0184 2008 Available Available
Keywords Burger; Burger King; Turnaround Strategies Case Studies; McDonald's; Fast Food; Fast Food Retailing; Obesity;Franchisee; Business Model; Leadership; Brands; Branding; Brand image
Xerox Corporation: A New Corporate Identity?

Xerox, synonymous with photocopying, evolved as a generic brand. Apart from providing document management systems, services, and supplies; it progressed into consulting and outsourcing services over the years. Feeling that the existing brand image was not portraying a wholesome picture of its businesses, the company decided to rebrand. In January 2008, it changed its logo, emphasising the customer-centric approach of the company with a stress on innovation. With the brand supposed to reflect its present stature and future prospects, it remained to be seen whether Xeroxs rebranding efforts will succeed. Pedagogical Objectives To analyse how Xerox Corporation (Xerox) had become a leader in its Document management Enterprise
Keywords Chrysler, Lee Iacocca, Robert Nardelli, US Automobile Industry, Daimler-Chrysler, Cerberus Capital Management, Big Three, Strategic Inflection Points, Total product Concept, Leadership, Detroit
Keywords Starbucks, Howard Schultz, Business Model, Differentiation, Expansion, Positioning, Founder/Outsider CEO, Branding, Business Environment, Competition, Industry Dynamics, Succession problems, International Business, Growth Strategies of Starbucks
Burger King's Troubled Times: The CEO's Turnaround Plans

The fast food industry, which phenomenally grew into a multibillion dollar industry, was being threatened by multiple factors like the US recession since 2006, obesity concerns, looming food prices, embargo on commodity exports, etc. This case study elucidates the growth of Burger King, worlds No. 2 fast food chain, and the impact that recession might have had on the company. While the US fast food
Bob Nardelli at Chrysler: Can he do a Lee Iacocca?

This case study helps in analysing the factors that led to the downfall of Chrysler.
www.ibscdc.org
To analyse the various portfolios of products and services offered by Xerox Corporation To analyse the need for the Rebranding of Xerox Corporation To analyse the implications Rebranding on Xerox of
Keywords eBay; John Donahoe; Revitalisation; ECommerce Business; Meg Whitman; Fraud sciences; Restructuring - Turnaround Strategies Case Studies; Revenue model; Revenue per unique Visitor; eBay business
GAP's Turnaround Strategies: Winning Back its Customers?

Gap Inc., leading retailer in the US, had ruled the apparel market since the 1960s. Gap offered garments for men, women and children, and by the end of 1990s, the company was operating in 42 countries around the globe. In the early 2000s, due to the changing fashion trends, Gap started loosing customers. Gaps customers moved away to other youth-oriented retailers. This posed a threat to Gaps market position. To gain its customers back and to sustain its market position, Gap started planning a turnaround under Paul S. Pressler that included brand differentiation, revamping of stores, promotions, and expansions. As a result, Gaps sales increased by 7% in 2004. However, from 2006 onwards, Gaps same-store sales started declining. Analysts felt that this was because Gap was unable to bring back its customers. To win back customers, Gap planned to incorporate store-expansion strategy as a part if its turnaround efforts. However analysts opined that it would take time for Gap to gain its customers back. Pedagogical Objectives To understand the changing fashion trends of the US Apparel industry To analyse the turnaround styrategies of an apparel retailer To analyse the importance of customer satisfaction parameter in a business turnaround.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Apparels and Accessories RTS0180B 2008 Available Available
To analyse whether the rebranding will be successful.

Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Document Management Enterprise RTS0183C 2008 Available Available
Lowe's Companies, Inc: Will its EPM Strategies Payoff in Canada?

Lowes Co., Inc. was a US-based chain of retail home improvement and appliance stores with 1,252 superstores across 49 states in the US. It decided to implement Enterprise Portfolio Management (EPM) in 2001 for better monitoring of its assets. EPM enabled Lowes to reevaluate new priorities against its current investment methods. It helped to enhance Lowes business from $ 22,111 million in 2001 to $ 43,243 million in 2005. When EPM was introduced in Lowes, the company was operating only in the US. When the company intended to enter Canada in 2006, it expected to implement the EPM strategies that it had employed in the US. Banking heavily on its US experience, Lowes was confident that it would succeed in Canada, but analysts felt that success in Canada would not be easy. They thought that Home Depot and RONA, the existing players in the Canadian home improvement market, would not make Lowes entry into Canada an easy one. They also felt that an expansion decision solely backed by duplication of efforts might be like playing with fire. Pedagogical Objectives To understand Lowes expansion in Canada To understand Enterprise Portfolio Management (EPM) To understand the competition in Canada To analyse whether Lowes will be successful in Canada.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Home Improvement Retailing RTS0181B 2008 Available Available
Keywords Xerox corporation; New Corporate identity; Xerox global Services; Rebranding; Document Management Enterprise; Restructuring / Turnaround Strategies Case Studies; Generic brand; Photocopying; Anne Mulcahy; Quality and innovation
Revitalisation of eBay under John Donahoe: Will it Work?

Internet auctioneer eBay Inc.had announced that John Donahoe would take over as eBay Chief Executive on March 31, 2008 from Meg Whitman who had been at the helm of affairs for 10 years since March 1998. John Donahoe said that his priority is to reinvigorate eBay. Although it still remains the dominant online auction site, it faces increased competition from other Internet retailers such as Amazon.com. The new CEO announced a series of measures to revive the company including changing the fee structure, which was at the core of eBays business model. He also proposed to improve trust and safety in its transactions. The case allows for discussion on whether the revitalisation process under John Donahoe would bring in the desired results Pedagogical Objectives To analyse the revenue model of eBay To analyse the impacts of the initiatives on eBay under Meg Whitman To analyse the revitalisation of eBay under John Donahoe To analyse the future of eBay.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Online Auctioneering RTS0182C 2008 Available Available
Keywords Restructuring / Turnaround Strategies Case Study; US Apparel Industry; Consumer Preferences; Growth of Apparel Industry; Competition; Performance; Turnaround Strategy; Store Sales; Millard Drexler; Paul S. Pressler; Customer satisfaction parameter; price comparison; brand differenttiation; Brand personality; Revamping stores
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 and non-IT decisions; Planning
Yum! Brand's Turnaround Strategy

Yum! Brands, Inc. (Yum!), one of the worlds largest restaurant companies based in Louisville, Kentucky, operated in more than 34,000 restaurants across 100 countries. In 2006, Yum! generated more than $9.5 billion in total revenues which included sales and franchise fees. But in 2007, disappointing performance in its US division, forced Yum! to re-look at its business. Changing consumers tastes with
www.ibscdc.org
increasing awareness towards health and obesity problems affected Yum!s performance in the US. To turnaround its US business, it decided to follow McDonalds business model. It decided to introduce new products like beverages and breakfast meals; and expanded value menus to offer healthier products in KFC, Taco Bell and Pizza Hut in the US. But, by following its competitors business model would it be able to turnaround its US business division, needs to be seen. Pedagogical Objectives To understand the dynamics of the US Quick Service Restaurant industry Changing consumer tastes and preferences and its impact on the fast food business Implications of changing business model for Yum! Brands To evaluate the importance of value proposition in fast food industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Quick Service Restaurants RTS0179A 2008 Available Available
Incredible India in 2002 a campaign aimed at building brand image of India in global tourism industry and to increase foreign exchange earnings. The tourism industry witnessed positive results of this campaign and now enjoying the fruits of Incredible India campaign. Pedagogical Objectives Growth of Indian Tourism Industry The dynamics of tourism industry in India To analyse the branding and positioning strategies by the Indian government To understand the reasons behind the success of Incredible India campaign.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Tourism Industry RTS0178A 2008 Available Available
To analyse whether Fiat can restore the past glory by introducing Fiat 500 amidst competition from the existing players like Toyota, Volkswagen, etc and adapt to the changing trends in the automobile industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile Industry RTS0177P 2008 Available Available
Keywords Fiat 500; Heritage Brand; Branding; Fiats Decline; Fiats Turnaround; Brand Nostalgia; Brand Revival; Automobile Industry; Sergio Marchionne; Restructuring - Turnaround Strategies Case Study; New Product Launch
Sanofi-Aventis: CEO Gerard Le Fur's Formula for Change

Sanofi-Aventis, the worlds third biggest pharmaceutical company, focuses mainly on prescription drugs and human vaccines. Ever since the companys establishment in 1973, the company had been following the inorganic growth strategy to mark its presence worldwide. Until recently, Sanofi remained reserved and never disclosed the details of the groups portfolio of experimental drugs, thereby raising shareholders concerns. In addition, the company is uptight with growing competition from generic drug-makers. In January 2007, Sanofi had a major management reshuffle wherein, the companys longest serving chairman and CEO Jean-Francois Dehecq, relinquished his CEO position to Gerard Le Fur while retaining chairmanship. Amid this situation, it remains to be seen whether Le Fur can sail the company through these troubled times. Pedagogical Objectives The case is structured to help the students understand: Critical success factors pharmaceutical industry in the
Keywords Indian Tourism Industry; India Tourism Development Board; Tourism Industry; Tourism Promotion Policy; Inbound Tourism; The Ministry of Tourism; Tourist arrivals in India; The Incredible India' Campaign; Rural Tourism and Adventure Tourism; Print and TV Campaign; Restructuring - Turnaround Strategies Case Study; The Medium Term Strategy; Five Year Plan; Foreign Turists to India
Keywords Turnaround Strategies Case Study; Fast food industry; US Quick service restaurant industry; Obesity; McDonalds Changing consumer taste; Value proposition in food industry; Value menus; Healthier products; Full-service restaurants Independent restaurants; Breakfast menus; Premium coffee Healthy foods; Trans-fats
New Fiat 500: Revival of a Heritage Brand

Fiat Auto, a leading player in the automobile industry, has lost market share and sustained losses between 1999 till 2003. Its new strategy enabled Fiat to turnaround its auto business and return to profitability in the fourth quarter of 2006. But the company feared a reversal of fortunes. Keeping in mind the changing market trends and consumer behavior, Fiat decided to broaden its product portfolio. It decided to relaunch its heritage brand Fiat 500. In addition to increasing its market share, the relaunch was also expected to secure its turnaround. Pedagogical Objectives To analyse and discuss heritage branding To discuss Fiats decline and its return to profitability in auto industry To discuss the challenges faced by Fiat in the process of reviving its Fiat 500 brand To understand the role of promotion and advertising while relaunching an erstwhile brand
Indian Tourism Turnaround: The Success Story of 'Incredible India' Campaign

India, one of the Asias most popular tourism destinations lured foreign tourists through its hills, rivers, plateaus, plains, beaches, deltas and deserts, many luxurious hotels and resorts, picturesque nature sites, and the architectural wealth. India delivered novelty in various categories of tourism like history tourism, adventure tourism, medical tourism like Ayurveda and other forms of Indian medications, spiritual tourism, business travels, holiday seekers, beach tourism, etc. The liberalisation of Indian economy in the 1990s attracted investment in the tourism sector and infrastructure development fostered the international tourist flow to India. But, between 2001 and 2002, the Indian tourism sector witnessed fall in foreign tourist arrivals due to the 9/11 incident in the US, Afghanistan war, and India-Pak border tension. To boost the tourists flow, Ministry of Tourism (MoT), launched
Value chain of the pharma industry Trends and challenges facing global pharmaceutical industry Sanofi-Aventis new CEO Gerard Le Furs initiatives Promoting a company insider vs appointing an outsider.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Pharmaceutical Industry RTS0176 2008 Available Available
www.ibscdc.org
Keywords
Global Pharmaceutical Industry; Critical Success Factors; Value Chain of the Pharma industry, Acquisitions and Joint Ventures, Trends and Challenges in the Pharma Industry; Product Lifecycle Management; Jean-Franois Dehecq; Organisational Transformational Strategies; Restructuring - Turnaround Strategies Case Study; Leading Transformation; Pfizer; Glaxosmithline; Novartis; Clinical Research Outsourcing (CRO); Blockbuster Drugs; Successors Dilemma; Generic Drugmakers; FDA Regulations
Hybrid Digital Radio, an Upgrade to Struggling Terrestrial Radio: Will it Bring Back the Listeners?
In 2004, the iBiquity Communications Corporation developed a new digital format for the terrestrial radio operators, which was called HD Radio with a view to bring back listeners to the radio. The HD radio alliance was created to market and attract listeners from the satellite and Internet radio and devices like iPods. Inspite of the massive marketing efforts the technology which needed radio receiver for its broadcast did not pick up among the consumers even 3 years after its launch. The Alliance members announced a new marketing campaign of $250 million in 2007 and were optimistic about reviving this new technology. But industry critics and analysts doubted if HD Radio was what the consumers really wanted and whether it had the potential to make the terrestrial radio's days greener. Pedagogical Objectives To understand the reasons for the decline in popularity of terrestrial Radio To understand the new forms of digital music media To understand the consumer preferences in the music industry To analyse the reasons for lack of acceptance of HD Radio by consumers To analyse whether HD Radio is a strategically correct product to entice customers.
Industry Radio Broadcasting and Programming RTS0174B 2008 Available Available
Private Equity Companies: The Strategic Shift

Kohlberg Kravis Roberts & Co. (KKR) and Texas Pacific Group, one of the leading private equity (PE) firms announced a $45 billion acquisition of Texan Energy Utility (TXU), an energy generation company in February 2007. In the past PE firms followed a strategy to buy loss-making businesses and sell them after exercising management and financial restructuring. The announcement made by KKR to produce energy without damaging the environment signaled a strategic shift in how private equity businesses operated. The case discusses the challenges raised by the environmental groups and the dynamics of private equity business as a whole. It also attempts to trace private equity companies' strategic shift in acquiring businesses. Pedagogical Objectives To understand dynamics of private equity business To evaluate the growth strategy of KKR To understand shift in strategy of private equity companies and it impact.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Private Equity RTS0175A 2008 Available Available
and promotion, organising training and cutting costs. Despite this, Circuit City was unable to gain back its position. To combat Best Buy and to regain its top position in the US consumer electronics market, Circuit City followed Best Buy's strategy of self-service store format and recruited a non-commissioned sales force. In 2005, though Circuit City witnessed initial sales growth, analysts were sceptical of longterm growth. Some of the industry observers opined that Circuit City lost productive sales men during this exercise where as some others felt that Circuit City was right in doing so and felt that Circuit City should also adopt Best Buy's strategy of storesegmentation. By the end of 2006 the company opened 59 stores in the different locations of the US and also planned to open 20 stores by 2007. But the question remained - Would imitating Best Buy help Circuit City in its turnaround effort and to gain back its position? Pedagogical Objectives To analyse the competitive strategies of the US consumer electronics market To analyse the turnaround strategies adopted by Circuit City To analyse how replication of a competitor's business strategy can be used as a tool for growth.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer Electronics and Appliances Retail RTS0173B 2008 Available Available
Keywords Circuit City; Restructuring - Turnaround Strategies Case Study; Best Buy; self-service store format; non-commissioned sales people; advertising; training; Wal-Mart; consumer behavior; hourly wage; business strategy; dynamics of consumer electronics market; Circuit City vs Best Buy; competitive differentiation
Reference No. Year of Pub. Teaching Note Struc.Assig.
Keywords HD Radio; Terrestrial Radio; Satellite Radio; Internet Radio; MP3 players; iPod; Marketing Myopia; Strategic Inflection Points; Industry Change; Changing Consumer habits and preferences; Digital media; Music; Restructuring - Turnaround Strategies Case Study; On-demand forces; iBiquity
Keywords Private Equity; Mergers and Acquisitions; Leveraged buy-outs; Kohlberg Kravis Roberts & Co. (KKR); Texan energy utility (TXU); Blackstone Group; Carlyle Group; Newbridge Group; Restructuring Turnaround Strategies Case Study; Private Equity Industry Guidelines Group; Securities and Exchange Commission; Barbarians at the Gate; Dynamics of Private Equity Business
European Railways Revamping Model to Combat Low-Cost Airlines: Will it Succeed?

Since 1990s, European Railways were facing stiff competition from discount airlines. While the Low-cost airlines achieved strong growth in all areas of Europe, the European Railways' market share declined from 8% in 2003 to 7.5% in 2004. In order to compete with Budget Airlines, European Railways reduced fares. However, low-cost carriers with a market share of 16.3% in 2006 still maintained a lead. To beat the competition, European Railways decided to form a new model of partnership - including seven European
Circuit City's Turnaround Strategies: Can the ex Numero Uno Bounce Back?
In the 1980s, Circuit City was the leading retailer in the US consumer electronics market. But by the mid 1990s Circuit City had lost its market position to Best Buy. To regain its position the company started its turnaround plan that included upgrading merchandising, improving its advertising
www.ibscdc.org
Rail companies and their subsidiaries named 'Railteam'. The Rail team initially planned to cover more than 100 cities and grow to 400 destinations covering 15000 km by 2020. The alliance aimed to reach 50% share of the travel market by 2020. However analysts were skeptical about the success of European Railways' new model over Low-cost airlines in Europe. Pedagogical Objectives To understand the operating structure of European Railways To understand the stiff competition faced by European Railways to discount airlines To understand the competitive strategy adopted by European railways.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Transport RTS0172B 2007 Available Available
Industry Reference No. Year of Pub. Teaching Note Struc.Assig.
Aviation RTS0171 2007 Available Available
Ford's New Turnaround Strategy: Will it Work?

In 2000s, Ford Motor Companys (Ford) US market share has been steadily declining. Since 2002, it has unsuccessfully launched two restructuring plans to reverse the declining trend. In September 2006, in the supervision of Fords new CEO, Alan Mulally, the third restructuring plan has been introduced. The case outlines the dynamics of the US automobile industry, its players, Fords early growth strategy and the reason behind its decline. It also analyses the third restructuring plan of the company. Pedagogical Objectives To analyse dynamics of US Automobile Industry To analyse causes for decline of Ford in Automobile Industry To analyse the third restructuring plan of the Ford Company.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile RTS0169P 2007 Not Available Not Available
Keywords LCC in the Indian market; Aircraft manufacturers; Airbus and ATR; Integration of two different identities; Restructuring / Turnaround Strategies Case Study; Revival Strategies; Rebranding Strategies; Competition; Operational efficiencies; Consolidation; Low Cost Model; Business Design
Maruti-Suzuki's Zen: Will the Legacy Last?

Maruti Udyog Ltd (Maruti) is one of India's leading automobile manufacturers in the car segment, with a market share of over 60% in the car industry in the country. The term Maruti, in popular Indian culture, is associated with the Maruti 800 model. Marutis product portfolio range from Zen, Alto, Wagon R, Gypsy, Esteem/ Swift, Versa and the Baleno, all backed by the inherent value proposition of high quality, fuel efficiency, and compared with the competition, low cost. Maruti Suzuki rank highest in customer satisfaction in India for a Seventh Consecutive Year, and also ranked at 91 in the Forbes' list of the World's Most Respected Companies. Zen was the second largest selling model of Maruti. Despite being the leader in B2 segment, Zen was losing market share in India due to increasing competition. Even after its re-launch, Zen sales continued to decline. To reverse the declining sales trend in the competitive market, the company decided to phase out Zen and launch a new version. The case talks about initiative taken by Maruti to reverse its declining sale. Pedagogical Objectives The automobile industry in India and its local players Product life cycle of Maruti Suzukis Zen Exit of Maruti Suzukis Zen Reincarnation of Maruti Suzuki Zen.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile RTS0170P 2007 Not Available Not Available
Keywords European Railways; Low-cost Airlines; operating cost structure; Restructuring / Turnaround Strategies Case Study; Operating cost analysis; Railwaysvs budget airlines; yield management system; Railteam; airline-style alliance; rail network; budget airlines; Eurostar; Yield Management system ingradients; marketing; business model; Reformation
Keywords Turnaround strategy; Automobile industry; Alan Mulally; restructuring plan; US automobile; growth strategy; Sport Utility Vehicles; fuel efficiency; Restructuring / Turnaround Strategies Case Study; consumer preferences; competing GM; Toyota; productivity; competitive costs
Air Deccan C: The Captain vs The Baron

Third in the 'Air Deccan series', this case study explores Kingfisher Airlines' capabilities - in terms of financial clout and operational efficiencies - to revive Air Deccan. It highlights the possibilities of synergising two divergent airlines - one that is positioned as a premium value carrier and the other that relies on significantly low fares and no-frills. Given the power and business experience of the UB group, participants can assess whether Air Deccan will exist as itself or will UB group's boss, Vijay Mallya integrate the ailing airline into his own. The case plays out a few 'emotive' and 'economic' issues in giving a new identity to Air Deccan - from Air Deccan's perspective as well as Kingfisher's. Pedagogical Objectives To discuss Kingfisher Airlines' business decisions about Air Deccan's revival To analyse the exclusive benefits of Air Deccan's equity dilution, for it as well as for Kingfisher Airlines To assess whether Air Deccan should continue operations in its own name or merge with Kingfisher Airlines.
British Broadcasting Corporation: Grim Future Ahead?

The British Broadcasting Corporation, once the pioneer in the broadcasting industry took a step-down in the wake of intense competition and technological change. BBCs licencing practice was subject to fierce debate among the public as well as among politicians. Deregulation of the broadcasting industry opened the gates to a number of competitors which shook BBCs position as the No: 1 broadcaster in the world. The technology shift from analog to digital also threw up new challenges to BBC. Decreasing viewership along with its outdated business model drew blood from BBC bottom line. This case discusses the problems that BBC faced in the 21st century and also the initiatives taken by BBC to fight back the competition. Pedagogical Objectives To discuss the reasons behind BBCs downfall.
Keywords Car industry; B2 segment; Sales; Hyundai; Re-launch; New design; Speed; Estillo; Tarun Tahiliani; Restructuring / Turnaround Strategies Case Study; Anti braking system; Attractive look; WagonR; Alto; New model; competition
www.ibscdc.org
To discuss the technological changes that happened in the UK broadcast industry.

Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Broadcasting Industry RTS0168B 2007 Available Available
Business Model; US Airways; Restructuring / Turnaround Strategies Case Study; Gerald Grinstein; LCCs
Boeing: Back on the Track?

The year 2006 had been a record-breaking year for Boeing Company which was also a year to remember as this accomplishment came after several setbacks since 2003 which resulted in Boeing losing its leadership to Airbus. The company received a record number of airplane orders, which surpassed that of its rival Airbus. Industry observers felt that several factors led to Boeings success. One of the reasons cited was the management strife and other problems at Airbus. Other reasons that contributed to Boeings increase in orders included Boeings product strategy and increasing fuel prices which made Boeings fuelefficient airplanes desirable. With a triumphant 2006, it remains to be seen if Boeing would regain its lost leadership and sustain the same. Pedagogical Objectives The case deals with the growth strategies of Boeing company The case analyses the challenges and problems encountered by Boeing The case examines the competitive stand-off between Boeing and Airbus The case analyses the different restructuring strategies of Boeing to combat its challenges The case deals with the product strategy of Boeing It analyses the various factors behind Boeings success It analyses whether the events of the year 2006 would help Boeing lead the market.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Aircraft Manufacturing RTS0166B 2007 Available Available
Keywords BBC; Royal charter; Technology; CNN; Restructuring / Turnaround Strategies Case Study; CableTV; Licence fee
Delta Air Lines: Flying out of Bankruptcy?

Delta Air Lines Inc., one of the leading carriers in the US, filed for Chapter 11 bankruptcy protection on September 14th 2005. Deltas bankruptcy was ascribed to a variety of factors ranging from September 11th 2001 terrorist attack on the US to soaring fuel prices. Delta, which had survived an initial takeover bid by US Airways earlier in November 2006, was optimistic about its future as an independent airline. On January 31st 2007, US Airways withdrew its subsequent $10.2 billion bid to take over Delta Airlines, after it failed to convince Deltas creditors. US Airways offer for Delta had been viewed by analysts as a deal that would set the tone for airline industry consolidation in the US. What are the implications of Deltas bankruptcy on the US airline industry? What does the future hold for Delta Airlines? Will the restructuring efforts of Delta be successful? Will Delta emerge out of bankruptcy and retain its independence? Pedagogical Objectives To understand the contribution of US airline industry to the overall economic performance of the country To provide an overview of the US airline industry and the competitive scenario To discuss about various factors that contributed to Delta Airlines bankruptcy To discuss how Delta is trying to emerge out of bankruptcy and its restructuring plans To analyse the scope and limitations of consolidation in the US airline industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Airline Industry RTS0167B 2007 Available Available
market, the second largest in the world, accounts for 130 trillion. It is characterised by a unique consumer behaviour, distribution system and increased retailer density. These challenges hamper the success of global retailers who tried to transplant the business model from their parent country into the Japanese market. Analysts attribute that lack of localisation and adoption of the cookie-cutter approach in foreign markets as the main reason for their failure. Wal-Mart, the worlds largest retailer has been daunted by the five consecutive years of losses since its entry into Japan in 2002.It entered Japan by acquiring Seiyu, a struggling Japanese retail chain. Despite implementing many strategies, Wal-Mart was not able to successfully execute its US model in Japan. By mid-2007, Wal-Mart had invested $1 billion in Japan and had made Seiyu its wholly owned subsidiary, by acquiring a 53% stake. The year 2007 was relatively better. The net loss for the first quarter of 2007 had declined to 4.4 billion compared to the net loss of 52.8 billion in the first quarter of the previous year. In spite of this positive trend, analysts suggest that Wal-Mart should sell Seiyu and give up its Japanese operations. Wal-Mart however is committed to Japan. Pedagogical Objectives To analyse the retail industry scenario in Japan To analyse Wal-Marts successful US retail model To compare and contrast the retail market characteristics in developed economies, viz. Japan and the US To analyse the strategies to be adopted by Wal-Mart for survival and growth in Japan.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Retailing RTS0165C 2007 Available Available
Keywords Wal-Mart; Japan; Retail; Retail Market Scenario in Japan; Keiretsu; Seiyu; Consumer Behaviour; Restructuring / Turnaround Strategies Case Study; Japanese Distribution System; Developed Economy; Business Environment; Survival Strategies; Localisation Strategies; Revenue Models; Strategy; Economics
Keywords Boeing;Airbus; Dreamliner; B-787; Commercial Aircraft; Miltray Aircraft; Restructuring / Turnaround Strategies Case Study; US Air Force; McDonnell Douglas; Defense; Lockheed Martin; Pentagon; Plastic Composites; Air Freight; Tankers; FAA
Keywords Delta Air Lines; Airline Industry; Legacy Carriers; Network Carriers; Bankruptcy; Turnaround Strategies; Chapter 11; Operating Cost; CASM; Deregulation;
Wal-Mart in Japan: Survival and Future of its Japanese Business

Localisation is the buzz word for a successful global business. Japans retail
Heineken's Amstel Light Struggles to Recoup its No. 1 Position in the US: Would its Strategy Work?
In the 1980s, with the increasing consumption of light beer in the US alcoholic beverage market, Heineken N.V.,
www.ibscdc.org
one of the worlds largest breweries in Amsterdam, introduced Amstel Light in the US. Amstel Light was the first imported light beer in the US beer industry. By the mid 1990s, Amstel Light contributed 75% of the total growth of Heinekens import segment in the US and became the No.1 importer in the US beer market. The Hispanic community grew and they demanded high quality beer for which they were willing to pay, high prices encouraged Mexican beer (Corona Light and Corona Extra Light) to enter and subsequently capture the US light beer market. By 2005, Corona Extra led the market whereas Heinekens Amstel Light had slipped to the No. 7 position in the US market for imported beer. To reclaim its No.1 position, the company launched a new light beer called Heineken Premium Light Lager. In addition to this, the company also tried to promote its Amstel Light through intensive promotional strategies. Pedagogical Objectives The case deals with the different dimensions of the beer industry. It analyses the competitive strategies of US beer category It deals with the importance of advertising and promotional strategy in alcoholic beverage industry. The case also analyses the concept of brand extension in beer industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Beverage Industry RTS0164B 2007 Available Available
of Lamborghini. Under the leadership of Audi, Lamborghini oversaw increased profits with the highest sales record in the history of the company in 2006. In 2007, Lamborghini is all set to outshine its immediate rival Ferrari, which had wider presence worldwide and made better sales than Lamborghini. The company is formulating various strategies to make its presence felt in different corners of the globe other than the US, which remains its most important market. However, the analysts believe that Lamborghini needs to balance higher sales with brand exclusivity. Pedagogical Objectives The case discusses Lamborghinis evolution over the years under changing owners The case comprehends Lamborghinis initiatives to widen and strengthen its brand awareness It analyses Lamborghinis strategies to outrival Ferrari It analyses whether Lamborghini would retain its luxury brand image in its race to increase sales.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Luxury Cars RTS0163B 2007 Available Available
Pedagogical Objectives
The business model of Tupperware How changing trends in the purchasing habits of customers affect a companys growth Tupperwares strategy to meet the increasing competion and to regain its lost market.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Food & Beverage RTS0162P 2007 Available Not Available
Keywords Direct selling; Premium Food storage products; Competition; Life time Guarantee products; Research and development techniques; Brownie Wise; Restructuring / Turnaround Strategies Case Study; Party Plan; Advertisements; Retail channel; Premium segment; Online selling; Kiosks; Target marketing; Incentive to sales force; Changing business model; Celebrity Advertising; Extending product line
Redefining Saks
Saks Inc was a $6.4 billion company and a leading player in the luxury retailing business with 359 department stores across 38 states in the United States. It operated through two business segments - Saks Department Store Group (SDSG) and Saks Fifth Avenue Enterprises (SFAE). SDSG operated branded stores like Younkers, Parisian, Herbergers, Carson Pirie Scott (Carsons), Bergners and Boston Store, and Club Libby Lu mall-based specialty stores. SFAE consisted of Saks Fifth Avenue (SFA) luxury department stores and Off 5th, a discount designer clothing store. Since 2000, Saks sales stagnated and its operating margins fell from 4% in 2004 to 2% in 2005. The company tried to consolidate its position and reinvent itself. This case study discusses the strategies adopted by Saks to transform itself. Pedagogical Objectives The case discusses strategies adopted by Saks to make over its losses and market position The case evaluates Saks marketing strategies, merchandising strategy and advertising campaigns to maintain its brand value The case also explores the challenges faced by Saks to improve its image and maintain its reputation for high quality in the competitive market.
Keywords Automobili Lamborghini; Luxury Passenger Cars; Brand Exclusivity; Bankruptcy; Volkswagan's Audi; Versace; Asus; Merchandising; Prestige Cars; Ferrari; Restructuring / Turnaround Strategies Case Study; Barnd awareness; Higher Sales; China; India; Lamborghini
Keywords Heineken's Premium Light; US Beverage Industry; Heineken's Foray in the US; The growth of Light beers; Amstel Light; Restructuring / Turnaround Strategies Case Study; Hispanic Community; Competition scenario in the US beer market; Corona beers; Corona Light; Corona Extra Light; Promotional Campaign; Advertising strategy; Brand Extension; Cannibalization
Tupperware Re-igniting Growth

In 2005, the $1.2 billion Tupperware Corporation (Tupperware) is one of the world's leading direct sellers, supplying premium food storage, preparation and serving items to consumers in more than 100 countries. Its products also include kitchen gadgets, childrens educational toys, microwave products, gift items, beauty and skin care products. Competitors like Gladeware and Rubbermaid were introducing low priced products and capturing market. To meet the market challenges, Tupperware is introducing new products, advertising through celebrities and launching several initiatives to rejuvenate its bottomline. The case discusses how Tupperware changes its business model to meet threats in the market.
Automobili Lamborghini: Growth after Bankruptcy

Though Lamborghini began outstandingly well in 1964, the leading player in market for sports cars, witnessed numerous ups and downs over the years. From the early 1970s until 1998 the companys underperformance resulted in change of ownership six times in a span of 16 years. And the company went bankrupt for four years between 1978 and 1981. Following the bankruptcy, in 1998, Audi AG, a subsidiary of Volkswagen became the owner
www.ibscdc.org
Retail RTS0161P 2007 Not Available Not Available
Keywords Saks Inc.; Saks Department Store group; Saks Fifth Avenue; Restructuring / Turnaround Strategies Case Study; Off 5th Stores; British American Tobacco Company; Investcorp International Inc.; Gap; JC Penny; Abercrombie & Fitch; Bloomingdale; Profitt; Versace; Helmutt Lang; Neiman Marcus; Nordstrom
of The Wall Street Journal (Journal), its flagship brand, which is dependent upon business-to-business advertising. The circulation and advertising revenue of The Journal has been steadily falling with the advent of internet. In 2007, it is being revamped and its business model is being overhauled to suit the changing market scenario. It will be the first major American paper to push significant portions of traditional newspaper functions onto the Web site, leaving the paper itself to focus more on news analysis. The case discusses the dynamics of the newsprint industry, The Journals competition and the changes in its strategy over the years. Pedagogical Objectives To discuss the dynamics of the newsprint industry To analyse Wall Street Journals competition and the changes in its strategy over the years.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Publishing Industry RTS0159P 2007 Not Available Not Available
To analyse Motorolas decline To analyse effectiveness of Motorolas revival strategy To understand the importance of new product development in Cellular / Mobile phone industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Telecommunication Industry RTS0158P 2007 Not Available Not Available
Keywords Motorola; US mobile phone industry; Ed Zander-new CEO; Razr; Krzr; Siv; Pebl; Rok; Motoslim; Restructuring / Turnaround Strategies Case Study; MOPtoMing; Motorola Q; Zander's new revival strategy for company; Step Revival Plan
Kodak's Turnaround Strategies

Kodak was a $8 billion company and a leading player in the imaging industry. It had four main businesses -- commercial digital imaging, film and photofinishing, health care and graphic communications. Its digital business offered digital cameras, software for organising and manipulating pictures, printer docks, and the Web-based EasyShare Gallery for buying and storing photos online. Since the 1990s Kodaks film-based business was a major revenue generator for Kodak. However, with the advent of digital photography, its based business suffered losses. This case study discusses Kodaks transition strategy from analog to digital technology and its attempts to regain market share. Pedagogical Objectives The case outlines Kodaks rise and its product portfolio in imaging industry The case discusses Kodaks new product launches and comparative performance of these products against the film based products It discusses the changeover strategy from analog to digital technology and its attempts to recapture the market share.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Imaging RTS0160P 2007 Not Available Not Available
Fiat's Turnaround Strategies

Fiat Auto, a leading player in the automobile industry, has been losing market share and sustaining losses since 1999. The case outlines the dynamics of the global auto industry, Fiats initial growth strategy, its problems, its early initiatives to stem the decline and its turnaround strategy. The turnaround strategy focuses on cost cutting, new product launches and revision of the companys advertising and marketing strategy. Pedagogical Objectives
Keywords Dow Jones; Restructuring / Turnaround Strategies Case Study; Business Model; Brand Revamp; Restructuring exercise; target audience; Business strategy; internet news
Motorola's Revival Strategy

The case study is about the revival strategy launched by the C.E.O. Ed Zander (Zander) of Motorola in 2006. The company designed manufactured and marketed cellular /mobile phones and was a leading US mobile player. In 2006, the company was experiencing growth in number of units sold and revenues as compared to the previous year but there was a decline in the profits of the company. To address drop in the profitability of the company, Zander was launching various initiatives. Zander unveiled a three-step revival plan which included rationalization of workforce - eliminating about 3500 jobs mostly in the middle management, thereby reducing costs by $400 million by the end of 2007. The second step required Motorola to become more selective about the markets in which the company planned enhancement in its market share. The third and final step involved new product development focused on consumer preferences and current market trends. Pedagogical Objectives An overview on changing trends in Cellular / Mobile phone industry
To analyse the dynamics of the global auto industry To understand the factors which led to decline of Fiat Auto To discuss the turnaround strategy of Fiat which focuses on cutting cost, launching new products and revising the companys advertising and marketing strategy.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Auto Industry RTS0157P 2007 Not Available Not Available
Keywords Kodak; EasyShare; Brownie camera; Fuji Photo Film CO.; Olympus; Nikon; Canon; Polaroid; Restructuring / Turnaround Strategies Case Study; Snapfish.com; Maytag; Hewlett-Packard; Xerox Corp; Cingular Wireless; Seiko Epson; NexPress
Keywords Fiat; Decline; revival; Sergio Marchionne; Turnaround Strategies; Automobile indistry; Restructuring / Turnaround Strategies Case Study
The Wall Street Journal: Changing with the Times

Dow Joness overall performance is largely dependent on the operating performance
Sony Electronics: The Turnaround Strategy

Sonys electronics division which accounted for the major share of Sonys overall revenue was making losses during the last three years (from 2004). This was
10
www.ibscdc.org
due to a decrease in revenues in the audio, video and the semiconductor products of the company. Sony faced challenges from companies across different product categories like Apples iPod and also from Sharp and Samsung in the LCD TV segment. Moreover, in August 2006, Dell announced a massive recall of Sonys batteries fitted in its laptop computers. In a turnaround strategy, Sir Howard Stringer, the CEO of the company, closed the money-losing divisions and undertook diversification strategies through technological innovations. The case gives an insight into Sonys history and the challenges that it faced from its major competitors. It also discusses the strategic initiatives taken by Sir Howard Stringer in order to turn the company around. Pedagogical Objectives To get a brief idea of Sonys inception and growth To discuss the challenges faced by Sony from its competitors To analyse the strategic initiatives taken by its CEO, Sir Howard Stringer to bring the company back to its growth trajectory To debate whether Sony would be able to turnaround or not.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer Electronics RTS0156K 2006 Not Available Not Available
will be able to survive the increased competition and tough market conditions. Pedagogical Objectives To understand the automobile market in Malaysia To analyse positioning Protons competitive
To debate on its decision to exit from both the countries.

Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Retail RTS0154K 2006 Not Available Not Available
Keywords Wal-Mart; Carrefour; Tesco; Aldi; Metro AG; South Korean retail industry; German retail industry; Discount store; Hypermarket; Departmental stores; Restructuring / Turnaround Strategies Case Study; Supermarket; Conventional stores; Convenience stores; E-Mart; Global retail industry
To discuss the causes for its poor performance To analyse the strategies adopted by Proton to overcome the challenges.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile RTS0155K 2006 Not Available Not Available
Keywords Car; Automobile; Malaysia; ASEAN (Association of Southeast Asian Nations); Restructuring / Turnaround Strategies Case Study; AFTA (ASEAN Free Trade Area); Trade; Market leader; Mitsubishi; HICOM (Heavy Industries Corporation of Malaysia); Assembly; Perodua; Inokom; Competition; Technology; Quality
Marvel Comics: Forward Integration into Movie-making

In April 2006, with a market-share of 43.93 percent, Marvel Comics was the leading publisher of comics, graphic novels and magazines in the US. Yet, it was not the contributions from its publication sector that had helped Marvel Entertainment Inc., to quadruple its profits over three years to $103 million by the end of 2005. It was the licensing of its comic characters for movies that had helped the company which was on the brink of bankruptcy in 1997, to achieve such a success. Avi Arad, Chief Executive of Marvel Entertainments Marvel Studio unit, was to a great extent, responsible for the revival of Marvels fortunes. It was under his leadership that the company licensed its characters to make movies. Till 2005, the company only licensed the characters to film studios like Fox and Sony who made the movies and cornered most of the profit. However, in 2006 the company decided to foray into movie making and was planning to set up its own independent film studio. Though Marvel was positive, analysts were skeptical of the companys move in this direction. The question is: will it succeed in its new venture? Pedagogical Objectives To understand the business model of Marvel Comics Marvel Comics business strategy of licensing of its comic characters to movies Revival strategies of Marvel Comics through Marvel Studio unit.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Entertainment Industry RTS0153B 2006 Not Available Not Available
Wal-Mart's Exit from South Korea and Germany: What Went Wrong
The worlds largest retailer, Wal-Mart was growing at a rapid pace with more than 6100 stores world wide, with net sales reached to more than 6100 stores globally, with the net sales reached to more than US$ 312.4 bn for the year ended Jan 31, 2006. Since 1990, the retailer was pursuing aggressive international expansion strategy across the globe, but the company failed miserably in Germany and Korea. WalMart exited from the both the two country by selling its under performing business divisions to other retail companies. Analysts perceived that the company failed to adapt its business model to both the countries, failed to understand the customers of the respective country and struggled hard to grab a significant market share in competitive German and SouthKorean Retail market. This case deals in detail with why Wal-Mart failed to replicate its successful business model in Germany and South Korea and its decision to exit from the two country was strategically correct or not. Pedagogical Objectives To understand the retail market both in Germany and South Korea To discuss about Wal-Marts strategic initiatives To analyse Wal-Marts failure in both the countries
Keywords Sony; Microsoft; Apple; Samsung; Sharp; Nokia; Walkman; LCD (liquid crystal display) TV; Plasma TV; Battery recall; Restructuring / Turnaround Strategies Case Study; Dell; Trinitron; Turnaround strategy; Playstation; Sir Howard Stringer
Proton: Way to Survive

Proton, the Malaysian national car company, had been the market leader in the Malaysian automobile market since its inception in 1983. During 2004, it witnessed a rapid slip of its market share from 74% in 1993 to 41% in 2005. Moreover, with the abolition of tariff barrier against foreign cars, Proton was exposed to stiff competition. In 1993, the members of Association of Southeast Asian Nations (ASEAN) agreed to cut tariffs on imported cars to 5% but Malaysia was the exception and was allowed to cut tariff rate to 20% in 2005 and to 0-5% in 2007. In 2005, The ASEAN Free Trade Agreement (AFTA) was promulgated, making Proton vulnerable to foreign competition. This case deals with the challenges facing Proton and tries to investigate whether Proton
www.ibscdc.org
11
Keywords
Marvel Entertainment Inc.; Comics; Avi Arad; movies; The Hulk; Spider-Man; bankruptcy; DC Comics; Perelman; characters; licensing; production; Restructuring / Turnaround Strategies Case Study; distribution; marketing; Blade
its image get tarnished? Could they turn around and run their stores as an on going concern after emerging from its bankrupt state? Pedagogical Objectives To understand the law that operates for retail bankruptcies in the US To understand how competition and complacency could lead to a bankruptcy To analyse how to overcome the vagaries of retail bankruptcy To comprehend financial, personnel, planning and strategies required during bankruptcy.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Retail-Grocery RTS0152B 2007 Available Available
Pedagogical Objectives To understand Volkswagens entry into China and its subsequent growth in the market To study the competition in the Chinese market To analyse Volkswagens restructuring measures and its strategy to face the competition To analyse whether Volkswagen would succeed in regaining its position in China.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile RTS0151B 2007 Not Available Not Available
Winn-Dixie Stores, Inc: Will it be able to Turnaround?

Commercial bankruptcies could have a big and devastating impact on an economy as a lot of money is at stake. In recent years, several high-profile corporations like Enron, WorldCom and the like have filed for bankruptcy. Businesses accounted for about 2% of all bankruptcy filings in the US in 2005.In the retail industry 10 companies in the US filed for bankruptcy in 2005, the same year that Winn-Dixie a grocery store chain filed for bankruptcy. Kmart another grocery store in 2002 filed for bankruptcy. What is of significance of Kmarts bankruptcy was that firstly they were able to turn around successfully and secondly it was believed that the bankruptcy was the biggest ever in the retail industry. Winn-Dixie a public limited company listed on the stock exchange was a Jacksonvillebased grocery store chain with 920 stores in eight southeastern states of the US and the Bahamas. On February 21st 2005, the company filed for Bankruptcy under chapter 11 in the U.S. Winn-Dixie was driven to file for bankruptcy as it fell back on its payments, which kept mounting and the company reached a stage when they just could not afford to take it forward financially. The company filed to help reorganize itself, improve its finances, reduce expenses and decide on how to use its assets to make its stores more productive. Under US bankruptcy laws, the company was allowed to function as it normally would, with a specified time limit to file what was called a Plan of reorganization. If the plan was not filed within the time stipulated, Chapter 11 would be converted to Chapter 7 which meant that the company was deemed insolvent. The events of the case happened in 2005/ 06, when competition in the supermarket grocery retail industry was at its peak. Every retailer was being wiped out with the omnipresent Wal-Mart. The bankruptcy process was lengthy and sometimes uncertain. How did Winn-Dixie cope with this difficult crisis? Chapter 11 gave Winn-Dixie some breathing space but what strategies need the company deploy to successfully emerge from its bankrupt state? What would be the perceptions of its customers? Would
Keywords China Automobile Industry; SW performance; Restructuring / Turnaround Strategies Case Study; FAW-VW Performance; Marketing programme; Strategy of Expansion; Training of local partners; cost-reduction; Stiff competition in the Chinese Automobile Industry; GM; Toyota; Hyundai; Honda; Olympic Program
Keywords USA; Retail; Grocery; Bankruptcy; Restructuring / Turnaround Strategies Case Study; Chapter11; Plan of Reorganisation; liquidity; Disclosure Statement; restructuring; Business Ethics; Legal; Winn-Dixie
The Changing Face of MTV Volkswagen: Turnaround in China?

In the 1980s, the open door policy of the Chinese government and the large market potential for the passenger car business in China encouraged the international automakers to invest in the Chinese automobile industry. Volkswagen was the first company which entered the Chinese market and dominated the market by using its most advanced manufacturing techniques, product technologies and high quality product lineup. In 2001, Chinas entry into the World Trade Organization (WTO), opened a gateway for a huge influx of new car imports and led to a greater competition in the Chinese car market. In order to compete with the new wave of competitive price imports, local manufacturers reduced the price of their vehicles. Price cuts by competitors and an increasing number of available models in the market posed a challenge for the market leader, Volkswagen, in China. In 2005, the market share of Volkswagen in China declined to less than 15% (13.6% market share in China in 2005). To combat competition and to regain its leading market position in China, Volkswagen group adopted a strategy in 2005, to restructure its Chinese market. This strategy was named Olympic Program, as it would get over in 2007, the same year that the Chinese were to host the Olympics. Would Volkswagen succeed? In the early 21st century, MTV (Music Television), a popular cable channel, faced threats from new entertainment options like online videos, podcasting and do-ityourself music mixes. These new forms of entertainment easily lured away young audience of MTV. After witnessing the loss of viewers, MTV realised the need to hold its audience. To make use of the growing popularity of digital entertainment and to increase its audience, MTV decided to transform itself to the needs of the digital age. As a major step in digitalizing the process, it collaborated with Microsoft in creating MTV Urge, to cater to the on-line music download market. It also launched MTV Flux which allowed viewers to choose the programmes that they wanted to watch. This helped MTV to integrate the traditional TV channel with the internet. For wider distribution of its content, MTV also forged alliances with mobile phone companies like Vodafone, Orange, and DoCoMo. It remained to be seen whether MTVs attempts to would raise the popularity and acceptance among the new age viewers. Pedagogical Objectives To understand the entertainment options emerging
To study MTVs growth over the years and its strategies to capture new markets
12
www.ibscdc.org
To analyse the competitive threat posed by the new age digital entertainment options to MTV To examine the strategies of MTV to adapt to the changing environment.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Entertainment-Music RTS0150B 2007 Not Available Not Available
Kodak: Rewriting Its Film Destiny?

Kodak was slowly burning its bridge and was mutating from analog to digital business since 2000. Kodak was no longer the market leader in film and cameras and the entry of digital cameras made most of Kodaks traditional products obsolete. Kodak was losing millions and selling off assets to repay its debts and to fund its digital business. Will Kodak regain its lost glory in the photography industry? Or will Kodak be just another page in the book of corporate history? This case details the circumstances that led to Kodaks forced transition to digital business, the problems Kodak was facing and its strategies to get back to the perch where it once was. Pedagogical Objectives To discuss about the US camera market
Keywords MTV; MTV Urge; MTV Flux; MySpace; MTVN; MTV Overdrive; VH1; Viacom; Restructuring / Turnaround Strategies Case Study; Atom Entertainment; Microsoft; Neopets; Vodafone; Nickelodeon; MTV digitalization process; Judy McGrath
Snags in Wendy's
In 2005, the fast food industry in the US witnessed 5% increase over that of the previous year. However, due to ineffective ads and stiff competition, Wendys incurred a loss of $29.1 million. Wendys was the third largest burger chain in the world after McDonalds and Burger King. Since 2002, due to the price war between McDonalds and Burger King and the death of Dave Thomas, the founder of Wendys, it witnessed a decline in its market share. After reviewing the market condition, the company came out with a turnaround plan. Wendys decided to reinvigorate its core products and to improve its service. It also planned to cut overhead costs by $100 million. With McDonalds introducing new products, analysts were skeptical about Wendys revamping plan. Would Wendys succeed in its endevors? Pedagogical Objectives To understand the fast food industry in US To understand Wendys growth in US To understand the challenges of the fast food industry in US To analyse whether Wendys turn around plan work.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Fast Food Industry RTS0149B 2006 Not Available Not Available
To understand the market performance of Kodak, its competitive strategy and various threats to it To assess the future of Kodak.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Photography/Digital Camera RTS0148B 2006 Not Available Not Available
at attractive prices. More importantly, in recent years, various fast-fashion brands were making strong inroads into the UK and French markets. Shoppers wanted to wear what the stars wore, and some fastfashion brands like Zara and Hennes & Mauritz (H&M), churned out fashionable and trendy, cut-price copies of catwalk pieces at lightning speed in less than two to four weeks after conception (hence called fast-fashion brands). Also, with the complete phasing out of the Multi-fiber Agreement from January 1, 2005, premium brands like those of Gap, became more vulnerable to low cost imports from developing countries. In this context, some analysts opined that Gap should revise its production, distribution and strategies so as to come up with trendier and cost effective styles at a very fast pace. At the same time, others pointed out that Gap could break free of low-cost competition by coming up with well-differentiated pinch-hitting styles along with good quality and pricing, so as to establish its brand reputation. This case highlights Gaps evolution, its sales decline during 20052006 - mainly in Europe, the companys response, the further threats that it was faced with and analysts views and opinions regarding the same. Pedagogical Objectives To analyse the competition in the Apparel industry worldwide and in Europe To discuss about various factor contributed to decline of Gap Inc and its production, distribution and strategies.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Apparel RTS0147B 2006 Not Available Not Available
Keywords Turnaround; Diversification; Kodak; digital camera segment; Eastman Kodak; Restructuring / Turnaround Strategies Case Study; US Camera Market; Film Sales; Fuji; Camera Phones; CMOS; Cannibalization; Competitive Strategy; Sony; Marketing; OLED; PhotoCD; Antonio Perez
Gap Inc.s Declining Apparel Sales in Europe: Style or Substance?

Gap Inc., the US-based global clothing retailer, had faced dwindling sales over the period 1999-2002. While closing underperforming stores, reducing excess inventory, etc., led to a temporary turnaround in 2003, sales declined once gain during the subsequent years. During the fiscal year ending January 2006, Gaps global sales fell by 1.5%, while the plunge was even sharper at 6.1% in its two European markets, Britain and France. The company identified that having an American look was the foremost reason behind the Europeans disinterest in its apparel. Hence, Gap Inc. aimed to add some local flavor to its European business, by establishing a design house in London. However, analysts judged it as an inadequate solution to the companys problems. Gap was facing enormous competition from supermarket chains like Wal-Mart and Tesco, which offered good quality clothing
Keywords Gap; Fashion Industry; Fast-fashion Brands; Restructuring / Turnaround Strategies Case Study; Inditex Zara; Multi-fiber Agreement; Clothing and Accessories; Apparels; Readymade Garments; Retailer Brands; Competition; Positioning; Fashion and Styles
Dell Inc: Time to Discard its Direct Selling Model?

Dell Inc., the worlds largest computer manufacturer achieved revenue of $55.9 billion (by January 2006) and it set the target of $80 billion revenue world-wide by 2010.Michael Dells innovative lowcost, direct-sales strategy had been successful in allowing his company to sell computers at lesser cost than its rivals. Dell held a leading 18.2% (in FY 2005-06) share of the world PC (personal computer) www.ibscdc.org
Keywords Origin of Wendy; System wide sales of Wendy's; Advertising awareness; Market share of Wendy's; Quality score of leading burger chain; Restructuring / Turnaround Strategies Case Study; Wendy's sales (20002005); Challenges; Competitors; Next Chapter of Wendy's; Wendy's turnaround plan; Moving ahead
13
market and grew much faster than competitors. However, according to the industry sources, it was the fourth time (Q4 of FY2005-06) Dell said the company could not achieve quarterly earnings or sales forecast since the beginning of financial year 2005.Its stock price decreased by nearly 10% to $19.91, the lowest in five years (FY 2001 - FY2006) which pushed down the stock prices of other computer companies bringing down NASDAQ to a 14-month low. In many fast-developing markets, including India and China, Dells market share had increased marginally over the past years (Up to 2005). In desktop and notebook PCs segment, which contributed 80% of sales world over, PC sales for Dell had slowed down. Repeated missing of targets, declining sales and decreasing share prices led industry analysts to raise questions about the business model followed by Dell Inc. Was the directsales model struggling for survival? Stock exchange of U.S.A. Pedagogical Objectives To understand how Dell had achieved growth through its unique business model To understand the supply chain process in Dell To understand the challenges to the direct-selling model To analyse the future of the model.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Personal Computer Industry RTS0146B 2006 Available Available
intensity performance culture, and social obligations were contributing to their dismal financial performance. The case highlights the trials and tribulations of MAS and efforts of Jala to improve efficiency and capabilities and turnaround the airline to profitability. Pedagogical Objectives To discuss the role of government in Malaysian Airlines System To understand the importance of management efficiency in the performance of a company To discuss and understand the turnaround strategies.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Aviation RTS0145A 2006 Not Available Not Available
operations with its key customer segment, and it ends with a debate whether Yahoos restructuring strategy would work in its favor? Pedagogical Objectives To analyse the significance of corporate restructuring strategy and performance of an SBU To examine the role of leadership role in the change management.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Internet Services RTS0144A 2006 Available Not Available
Keywords Corporate restructuring; Reorganization; Audience group; Advertisers & Publisher group; Technology Group; Strategy; Google Inc.; Restructuring / Turnaround Strategies Case Study; Share Price; YouTube; MySpace; Social Networking Websites; Search Engine industry; Web Portals
Keywords Malaysia Airline System (MAS); Business Turnaround Plan (BTP); Idris Jala; Management Restructuring; Cost Reduction; Strategy Overhaul; Restructuring / Turnaround Strategies Case Study; Schedule Optimization and Airline Revenue System (SOARS); Mutual Separation Scheme (MSS); Financial Process Exchange System (FPX); Competitive Scenario; Government Policy; AirAsia; Low Cost Carriers; Penerbangan Malaysia Berhad (PMB); Kaula Lampur International Airport (KLIA); Turnaround strategy; Fuel prices
Alan Mullaly, veteran from Boeing: Can he turn Ford around?

One of the Big Three auto-makers in US, Ford Motor Company, manufactured and distributed automobiles in 200 markets across six continents. In August 2006, the sales in Fords home market, witnessed further fall compared to the previous year and the losses were $1.3 billion (680 million) in the first half of 2006. The US sales decreased by 12% in August 2006 due to sharp rise in petrol prices in the US. Ford announced its second restructuring plan in January 2006, entitled "The Way Forward". Bill Ford, the great grand son of Henry Ford stepped down as the CEO in September 2006, and announced Alan Mullaly, a veteran from aircraft manufacturing industry as the CEO. Since the time Bill Ford took up his job as CEO at Ford Motor Company (FMC) in 2001, he was trying to get successful auto industry veterans like Renault-Nissan CEO Carlos Ghosn and DaimlerChrysler Chairman Dieter Zetsche to take up his position as he felt he was not the right person. Unable to get either of them, Bill Ford looked outside the industry to choose right leader for his ailing family business. The decision raised a question in the industry - Can a non-car guy fix FMC? The case aims at discussing the challenges that lie ahead for Alan Mullaly to do his job at Ford and discuss the pros and corns of this decision taken by FMC.
Keywords Dell; Direct sales model; Restructuring / Turnaround Strategies Case Study; business model; Michael Dell; Supply chain; Challenges; Customer Centric
Corportate Restructuirng at Yahoo! Inc.

Yahoo! Inc., a leading global internet service provider, offered online products and services besides offering a full range of tools and marketing solutions for businesses to connect with internet users around the world. Its total revenue was $6.256 billion and it had around 11000 of total workforce in 2006. Google was a proven leader in search engine industry by 2006. With emergence of the social networking media such as MySpace and YouTube, Yahoo! was facing a tremendous pressure in its growth initiatives. Yahoo! was suffering from an identity crisis as a result of no clear focus or strategy. Amidst the crisis and after witnessing a decrease in quarterly profits by 38% to $158 million (84.4 million) and share price decrease of 2.1%, to $26.86. Yahoo decided to undertake the corporate restructuring initiative. Case details Yahoos reorganization of its structure and management to align its
Malaysian Airlines: A Turnaround Strategy

Malaysian Airlines System (MAS), incorporated in 1937, was one among the only four to be awarded 5star rating by Skytrax. MAS was characterized by government intervention and control. Due to this, fares charged in Malaysia were the lowest in the region. Foreign airlines were unable to compete at such a low fare which adversely affected the overall industry and also the profits of MAS. Moreover, rising fuel prices and poor management led to losses being incurred by the airline. Idris Jala was appointed as MD and CEO to overhaul the MAS operations. Poor pricing, rising cost structure, mismatch fleet, weak operational performance, low-
14
www.ibscdc.org
Pedagogical Objectives To discuss the Ford Motors Company as one of the big three auto giants in US To understand the strategies used by Ford Motors for restructuring during crisis To understand importance of new leadership in a family-owned company To study the role of leadership in a turnaround of a company.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile RTS0143A 2006 Not Available Not Available
Keywords Kraft Foods Inc.; Packaged food industry; Altria Group of Companies; Spin-off; Turnaround plan; Irene Rosenfeld; Roger Deromedi; Rrestructuring; Restructuring / Turnaround Strategies Case Study; Competitive strategies; managing brand portfolio; cost reduction; acquisitions; focused portfolio; declining financial performance
Business; Brand; Revival; Non-core Brands; Competitive Advantage; Global advantaged markets; Restructuring / Turnaround Strategies Case Study; Global Confectionery Industry; Global Beverage Industry; US Beverages Industry; Coca Cola; Pepsi; Nestle; Chocolate; Candy; Gum Markets; Carbonated Soft Drinks
AOL: The Strategic Shift, Will it Payoff

US based online service provider, AOL, had been the biggest service provider of the world. Traditionally, providing internet access to the paid subscribers had been the core business of AOL. However, over the time, due to drastic shift towards broadband from dial-up system and competition from free service providers AOL had been invariably losing its paying subscribers. To arrest its declining core business, on 2nd August, 2006, AOL, announced to reorganize its subscription-based business model and change it to one supported by advertisements. AOL repackaged itself, apart from the core business, as a free, advertising supported web destination. Nevertheless, to execute this strategic shift, AOL had to take restructuring route and lay-off around quarter of its employees around the world. But then AOL chief Jonathan Miller who brought the strategic shift was replaced by NBC veteran Randy Falco just three months after the introduction of new strategy. The case discusses the strategic shift and challenges ahead for AOL. Pedagogical Objectives To understand the concept challenges of strategic shift and
Corporate Restructuring at Cadbury Schweppes: Splitting US Beverages and Confectionery

In March, 2007 Cadbury Schweppes, the largest confectionary business in the world announced its decision to split its US beverages business, which owned famous brands such as Dr Pepper and Canada Dry, from the rest of the Cadbury Schweppes. The company had been under increasing pressure to split its business. The move, many analysts believed had come under a strong push from the Nelson Peltz, a US activist investor, who in March 2007 acquired almost 3% of the companys share. Further the company acknowledging the strong portfolio of brands for its confectionary business intended to revert to its origins as a core confectionary company in the global market. Although the strategic rationale was still misty, the split certainly would make the de-merged independent Cadbury Schweppes US beverages, an approximate 7.0 billion division, the third largest contender in the US soft drinks market after Coca-Cola and PepsiCo. The twintrack approach had a strong reaction from the credit rating agencies as it apparently expressed its intentions to downgrade Cadbury Schweppes ratings. The case ends on a debate whether the decision to split beverage business would prove a right one for Cadbury. Pedagogical Objectives Understanding Corporate Restructuring Strategies Discuss the Splitting off as a way of restructuring.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Confectionery & Beverages RTS0141A 2007 Available Available
Keywords Ford Motor Company; Bill Ford; Henry Ford; Restructuring / Turnaround Strategies Case Study; Alan Mullaly; Aircraft Veteran; Non-car guy; Leadership; Strategic management, turnaround; 2006 Crisis; Boeing; Challenges; Way Forward; Restructuring; Big Three; Leader
Kraft Foods Spin-Off: Will it help its Turnaround?

On June 26 2006, Kraft Foods Inc., (Kraft) the worlds second-largest consumer packaged-foods Company after Nestle announced the appointment of Irene Rosenfeld, as the new chief executive officer replacing Roger Deromedi. Irene previously was the chairman and chief executive officer at Frito-Lay, a division of PepsiCo. On January 31 2007, Krafts parent and 88% stake owner Altria Group Inc., one of the worlds famous tobacco corporations, announced the long awaited spin-off of its subsidiary Kraft, which would be completed by March 30 2007. It was an initial step of on-going restructuring exercise for creating shareholder value. On February 20 2007,Kraft announced a new phase of its turnaround plan to revitalize its falling sales. The case details about how Kraft will utilize its spin-off and various opportunities and challenges for a successful turnaround. Pedagogical Objectives To understand the corporate spin-offs and its impacts To study the challenges for a turnaround with new leadership To understand restructuring.
To analyse corporate restructuring at AOL To understand the rule of leadership in strategic shift and corporate restructuring.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Internet Services RTS0140A 2007 Not Available Not Available
Keywords AOL; Internet Service Provider (ISP); Business Model; Strategic Shift; Restructuring; Lay-offs; Restructuring / Turnaround Strategies Case Study; Leadership Change; Jonathan Miller; Randy Falco; Quantum Computer Services (QCS); Time Warner; Repositioning; Change in Business Model; Challenges of Strategic Shift; Competition
Keywords Cadbury Schweppes; Corporate Restructuring; Business Portfolio Management; Strategic Business Units; Business Acquisitions and Disposals; Business Strategy; Inorganic Growth; Organic Growth; Spin-off Strategy; Core
the
corporate
Packaged-Food RTS0142A 2007 Not Available Not Available
www.ibscdc.org
15
Carrefour S.A. - Jose Luis Duran's Turnaround Strategies

Carrefour S.A. is the world's leading retail supermarket chain. The company spans a wide network of hypermarkets, supermarkets, hard discounters, convenience stores and Cash & Cary outlets across 30 nations. France gives Carrefour nearly 50% of its revenues. But after it merged with Promodes in 1999, Carrefour's sales started stumbling. Its domestic market, France, became its biggest source of trouble as competitors ate into its market share. Till 2005, its sales went through a series of ups and downs. Carrefour's directors woke up to this sales chaos. And, in their plans to reorder the management, they promoted Jose Luis Duran as the new CEO. Pedagogical Objectives To analyse the factors responsible for the declining fortunes of Carrefour To understand the strategies undertaken by the new CEO, to turn the fortunes of Carrefour around To discuss whether Carrefour would be able to regain its lost market share, by beating its competitors.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Retail Industry RTS0139 2006 Not Available Not Available
Pedagogical Objectives To understand The concepts associated with business organisation of financial services companies The issues related to the leadership styles of the CEOs The issues related to legal and governance problems faced by a company The concepts associated with employee morale and motivation. The concepts decentralisation decision making associated with of authority and
radience; Charlie perfume; Mitchum; Almay; L'oreal; Cosmaceuticals; Colourstay; Cover girl
Volkswagens Turnaround Strategies

Volkswagen (VW), an automobile manufacturer based in Wolfsburg, Germany is a part of VW Group, one of the worlds four largest car producers. The group consisted of well known brands like Audi, Seat, Skoda, Lamborghini, Bentley and Bugatti. Since 2001, the company suffered losses in the North American market. In 2005, VWs sales fell sharply leading to a loss of roughly $1 billion for its operations in the (United States) US and Canada. Its sales fell from 356.000 units to 224.195 units. By 2005, its models were at the bottom of Consumer Reports and J.D. Power reliability rankings. This case study discusses the reasons behind VWs losses and its attempts for a turnaround. Pedagogical Objectives To understand the automobile industry scenario in the US To discuss Volkswagens strategy to make a turnaround.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Auto Industry RTS0136P 2006 Not Available Not Available
he pros and cons of revival initiatives launched by Morgan Stanleys new CEO John Mack
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Financial Services Industry RTS0138P 2006 Available Not Available
Keywords John Mack; Dean witter; Philip Puurcell; Restructuring / Turnaround Strategies Case Study; investment banking; equity underwriting; retail brokage; asset management
Keywords Hypermarkets; Restructuring / Turnaround Strategies Case Study; Supermarkets; Convenience stores; Cash & Carry; WalMart; Tesco; Brands; Auchan; Casino; E. Leclerc; Declining sales of Carrefour; Pricing strategy in retail industry
Turning Around Revlon

Revlon is a leading manufacturer of cosmetics, skin care, fragrance and personal care products based in the US. It is the third largest cosmetic company in the world, and owns global cosmetic brands like Revlon, Flex Almay, Ultima, Vital Radiance, Charlie and Mitchum. Since 1998, Revlon had been struggling to post a profit. It was unable to hold its ground in the face of intense competition and faced major setbacks in its core North American market. This case study discusses the reasons behind Revlons losses, rising competition in the cosmetic market and its attempts to make a comeback. Pedagogical Objectives To understand the global cosmetic industry scenario To discuss Revlons turnaround strategy.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Cosmetic Industry RTS0137P 2006 Not Available Not Available
Keywords Audi; Seat; Skoda; Jetta; Restructuring / Turnaround Strategies Case Study; Passat; Phaeton; Golf; project M; JD power survey
The Turnaround of Morgan Stanley

In 2005, the $52 billion Morgan Stanley was among the largest financial services companies in the world. It was also the 30th largest U.S. corporation with 53,760 employees across the globe. Morgan Stanley was popularly called the white shoe investment bank due to its association with major corporations and wealthy individuals. Since 2005, Morgan Stanley, once the leader in investment banking and public stock offering underwritings was losing its leadership position to other US financial services firms. CEO Philip Purcell (Purcell) had been asked to leave Morgan Stanley under a cloud of corporate mis-governance. John Mack was appointed as the new CEO in June 2005.The case talks about various initiatives launched by Mack to turnaround the company and improve its image.
Ahold: The Road to Recovery

Royal Ahold NV, the fourth-largest grocery retailer in the world, faced challenges since 2003, due to an accounting scandal that almost made the company bankrupt. In late 2003, Anders Moberg, the chief executive officer of the company, undertook a three-year finance and strategy plan, termed road to recovery, to restore its financial strength. In accordance with the plan, Ahold was able to cut costs and became financially solvent by the end of 2005. The case study highlights the strategies adopted by Ahold as a part of its revival plan, to recuperate from its financial downturn. Pedagogical Objectives To discuss the turnaround strategies of Ahold
Keywords Fiex Almay; Ultima; Restructuring / Turnaround Strategies Case Study; Vital
16
www.ibscdc.org
To analyse financial position of Ahold before and after the accounting scandal To understand the accounting norms accepted in the industry To discuss the control mechanisms required to maintain an optimum balance in the company To understand strategic concentration and divestment of resources to maximise revenue.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Grocery, Retail RTS0135K 2006 Not Available Not Available
To understand the concept of strategic concentration and divestment with reference to D&B.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Credit Reporting & Industry Information RTS0134K 2006 Not Available Not Available
To discuss the companys decision to enter into consumer electronics segment, strategy adopted by the company and apprehension among the analysts To discuss decision to electronics company to
whether the companys enter into the consumer market will help the turnaround or not.
Personal Computers RTS0133K 2006 Not Available Not Available
Keywords D&B; A.Z.Loren; Credit reporting; EPS; Turnaround; Reengineering.
Keywords
Dells Turnaround Strategy

During the late 1980s, Michael Dell and his company, Dell Inc., revolutionised the global PC market by the latters Dell Direct Business Model, where it eliminated all kinds of middlemen and directly supplied customised PCs to the customers. For the last two decades, the company continued to be the market leader in the small household PC segment. However, after enjoying the supremacy for two decades since 2005, it started facing competition. The company's revenue and profit failed to match the expectations. Besides, it had to write off US$450 million (mn) for the installation of defective capacitors in its computers and opt for workforce alignment. The analysts were thus,, sceptical about the future of the organisation. The company was termed as less innovative than its competitors as it failed to launch innovative products in the market. To be on the growth trajectory again, it planned to enter into the consumer electronics segment. But the analysts were doubtful about the success of Dells Direct Business Model in the consumer electronics segment. The case deals with Dells business model and its success in the consumer electronics segment. It provides a scope for discussing whether the turnaround strategy of Dell would be successful and about the scenario of global PC industry and global consumer electronics market. Pedagogical Objectives To discuss the idea of Direct Business Model which revolutionised the global PC market by eliminating all kinds of middleman and by supplying customised PCs to customers To discuss in details about trends and patterns of US and global PC industry To discuss the strategy adopted by Dell to become the market leader in household PC segment To discuss how the companys market share was eroded and the company started to face the heat due to aggressive marketing strategy of its competitors
Keywords Ahold; Road to recovery; Liquidity crisis; Bankruptcy.
Dell; Turnaround Strategy; Direct to order; JIT; Apple Computers.
Viacom Restructuring For Growth

Since early 2004, Viacom Inc., the third largest media company in the world, exhibited a massive drop in share prices, with growth investors being discouraged by presence of slow-growth businesses like broadcast TV and radio, and value investors being put-off by high risk business of cable networks. In order to restore growth in the company, Sumner M. Redstone, the chairman and CEO of Viacom decided to unlock value and split the company into a high-growth, high-risk division and a slow-growth division. The case, while highlighting on the different divisions of Viacom, also focuses on the restructuring of Viacom into two separate publicly traded companies. Pedagogical Objectives To understand the dynamics of business restructuring process To critically analyse the business model of Viacom and its sustainability in the long-run To understand how revenue maximisation is achieved by unlocking value To understand the optimum mix of business portfolio.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Television cable pay and Broadcast Network RTS0132K 2005 Not Available Not Available
D&B: The Turnaround Strategies

Dun & Bradstreet (D&B), the $1.4 billion company by 2005, dealt with global business data and provided business information, tools, and insights about various companies. Customers bought D&B products, such as business information reports and business to business marketing lists, to improve cash flows, mitigate risks and increase revenue. But, during the 1980s and 1990s, a series of acquisitions and divestitures diminished the performance and brand value of the company and by the late 1990s, it could no longer focus on its core performance areas. In 1999, D&B failed to meet its revenue and earning expectations, as a result of which, shareholders were furious, leading to the resignation of the CEO, Volney Taylor. The company had become an under-performer with under-leveraged assets. In May 2000, Allan Z. Loren joined D&B as the CEO. Under Lorens leadership, D&B devised a strategy to determine ways in which it could reclaim its position in the market place. Soon the company adopted a business model designed to increase its investments in its core competence areas. Further, it also sought to re-position itself for enhanced growth. Savings from re-structuring were re-invested, in order to expand the business and raise its Earnings Per Share (EPS). D&B also created a new culture of leadership, which Loren regarded as crucial, for sustaining any business. The Case discussed D&Bs crisis and its turnaround while raising a question of its sustainability. Pedagogical Objectives To understand the concept of revenue driver To analyse the business model with specific reference to D&B To understand and discuss turnaround strategies
Keywords Viacom; Restructuring; Media Industry; CBS.
www.ibscdc.org
17
Ford: Restructuring US Operations
Pedagogical Objectives To discuss the challenges faced by Intel To discuss the restructuring process To understand the chip industry To analyse the strategic initiatives taken by Intel.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Microprocessor & DSP RTS0130K 2006 Not Available Not Available
The North American operations of Ford Motor Company (Ford), the leading automobile manufacturer in the world, exhibited a sharp decline in profitability in 2005 with a decrease in production and factory usage rate. The total number of Ford models sold in the US till November 2005, was 2.7 million only, compared to 4 million in 1995. Ford models were losing market share while competing with its Japanese counterparts, like Honda, Nissan and Toyota. Its profit margins were further depleted by the huge burden of legacy costs and pension obligations, due to its contract with the United Auto Workers Union. The case highlights the restructuring initiatives undertaken by Ford, particularly the various cost-cutting measures, as a part of its revival plan to recuperate from its lost position in the automobile industry. Pedagogical Objectives To understand the dynamics of the US automobile industry To discuss the revival strategies of Ford to improve its profitability in the US To understand the impact of legacy costs in the business To discuss the transformation of a traditional company like Ford and the subsequent change in the product portfolio in accordance to the changing market demands in the US.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Auto Manufacturing RTS0131K 2006 Not Available Not Available
Teaching Note Struc.Assig.
Not Available Not Available
Keywords A V Birla Group; Corporate Restructuring; Birla Group; Turnaround Strategy.
Should Halliburton Drop its KBR Unit?

KBR, the engineering and construction unit of Halliburton was formed as a series of mergers between companies like Dresser industries, Brown & Root, and MW Kellogg. KBR enjoyed leadership status in many areas of its operations. But the lackluster financial performance of KBR along with different controversies resulted in Halliburton share trading much below expectations. The case analysed operational as well as financial synergies among the different units of Halliburton as well as the trade off between the positives and negatives of KBR. The case concluded with an open ended question; on whether Halliburton should divest KBR or function as a single entity? Pedagogical objectives To understand the concept of strategic alternatives with reference to Halliburton and KBR To discuss the tricks to analyse political environment and use the best of companies benefit.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Commercial and heavy construction RTS0128K 2006 Not Available Not Available
Keywords Intel; Micro processor; Semiconductor; Pentium; AMD.
A.V Birla Group: Corporate Restructuring and Growth

In October 1995, Kumar Mangalam Birla took charge of the INR 7, 200 crore AV Birla Group, after the death of his father Aditya Birla. Birla Junior inherited India's third-largest Indian business group, with a dominant presence in diverse businesses. He was just 27 at the time. Analysts were sceptical about the future of the group as the 27 year old Kumar Birla had little experience. But the performance of the group has proved everyone wrong. After his takeover, the group turnover has grown fourfold. Kumar Birla has revamped the business portfolio and started looking seriously at sunrise businesses like telecom, branded apparel, software, ITES (IT Enabled Services) and insurance through joint ventures and acquisitions. The group has also consolidated its competitive position in traditional businesses such as cement, aluminium, copper, VSF (Viscose Stable Fibre) and carbon black. Will the junior Birla be able to manage and consolidate the old businesses, and at the same time transform the new economy businesses from question marks into stars? Pedagogical Objectives To discuss corporate restructuring as a growth strategy To discuss how companies perform the restructuring exercises To discuss when companies plan to do the corporate restructuring exercises To discuss how corporate restructuring helps a company to grow and achieve success To discuss the problems associated with corporate restructuring programme.
Industry Reference No. Year of Pub. Conglomerate RTS0129K 2006
Keywords Ford; Employee separation plan; Restructuring; Cost-Cutting; US automobile market.
Keywords Halliburton; KBR; Cheney; Iraq problem; Petrobus.
Intel Chipped to Restructure

In the beginning of 2006, Intel, the world's largest chip maker, had started facing problems due to its declining market share. During this period, the sale of its microprocessors, chipsets, motherboard and flash memory had declined in all the major geographic segments. Moreover, the company faced stiff competition from AMD. Hence, Intel planned to restructure, resize and repurpose itself. The case gives an insight into Intels history and the competition that it faced from its major competitor AMD. It discusses the challenges faced by Intel and the strategic initiatives taken by it to mitigate those problems.
Reinventing Hewlett-Packard with Mark Hurd

Hewlett-Packards new CEO and president, Mark Hurd took charge in April 2005, replacing the ousted Carleton Fiorina. With Hurd HP was looking for a solid, staid personality who would take the company forward by bringing back lost market share in products and services, and drive the various business units to realise their high potential. The mandate given to Hurd by the board was to steer the sprawling computer and printer company into a more profitable and high-growth road. Industry watchers wondered if Hurds strategies could overcome the fallout of the $24 billion Compaq merger and help restructure HP to substantially improve bottom lines.
18
www.ibscdc.org
The case details HP under Fiorina, impact of the disastrous Compaq deal, the advent of Mark Hurd, and the restructuring that was put in place. It discusses the changes introduced by Hurd, the reorganisation of different units and the effect on the companys financial performance. Pedagogical Objectives SWOT Analysis to understand HPs position in the business world when new CEO Mark Hurd took over Evaluate Mark Hurds Strategy Plan for the future.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. IT RTS0127C 2006 Not Available Not Available
of Marketing the 4Ps and application of Porters Five Forces Model. Pedagogical Objectives To discuss Porters Five Forces Model through the case To discuss the 4Ps of the Marketing Mix through the case.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Traditional Toys and Games Market RTS0126C 2006 Available Not Available
building, financing, airframe and hangar maintenance etc., is considered as a tool for growth and dominance. Pedagogical Objectives The low-cost airlines industry in India in the backdrop of global LCAs Challenges faced by the low-cost airlines in India Survival strategies employed by them, specifically on cost-cutting Growth strategies adopted by them with an emphasis on participating in growing ancillary trades Analysing the future of the low-cost airlines in India.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Low-cost Airlines in India RTS0124C 2006 Available Not Available
Keywords Traditional toys and games; Mattel; Hasbro; Barbie; Video games; Bratz; Hotwheels; Fisher Price; American Girl; Kids Getting Older Younger; Brand building; Radica Games; Kids marketing; Tickle Me Elmo; Web page design.
Keywords Hewlett-Packard; Mark Hurd; Carly Fiorina; Compaq; Market leadership; Printing & Imaging; IT Services; Dell; Management Strategy; UNIX; IBM; Merger; Personal Systems Group; Offshoring; Decentralise.
Keywords
Low-Cost Airlines in India Emerging Trends and Survival Strategies

Indias low-cost airlines are transforming the way public have been traveling. The boom is associated with sustained economic growth, growth in disposable income and liberalisation of Indian governments aviation policies. But, as in the case of low-cost airlines world over, there are continued loss making. To compensate the growth in flying seat capacity, the low cost airlines are cutting fares and have started offering lakhs of seats at INR 1 and INR 100/-. As Boeings Keskar had observed, offering this low fares would benefit no one and would stop after few eliminations and consolidations. The challenges in Indian scene are many: rising ATF cost, internal competition, rivalry with Indian railways in short haul markets, shortage of trained and skilled manpower, increasing labour costs, infrastructural hurdles and deficiency of airports, airstrips etc. To survive the situation resulting from these challenges would be to minimise the operating cost, hedge the fuel pricing, improve load factor and absorb losses for a period of three years. To grow and expand the low-cost airlines are expected to tap potential markets by enlarging the size of air traveling segment by aggressive marketing, improving the ancillary revenues by in-flight marketing, selling advertising spaces on board and on flight body, selling packages with tours and hotels along with tickets. Being part of a growing technology trade related to aviation industry like IT service providing, manpower hiring and training, spare
Mattels Digital Makeover

Mattel, the largest traditional toys and games manufacturer in the US was a Fortune 416 company as of 2006. It had to its credit some of the renowned brands in the traditional toys and games markets like the Barbie, Hot Wheels, Matchbox and Fisher-Price to name a few. During the new millennium the fate of Mattel, whose main target customers were children, became questionable due to the change in their attitude toward traditional toys and games. Children were becoming more mature even at an early age due to their increased exposure to technology which made them skip traditional toys and games in favour of CDs, iPod, videogames and the not so childish products like makeup, jewellery, and body spray. To overcome this changing trend, Mattel adopted a number of strategies like diversifying into related and unrelated fields, introducing new technologies into its toys and launching the kids version of popular consumer electronics. Mattel also ventured into the World Wide Web and used the internet as a channel for brand building. In spite of its efforts the annual domestic revenues of Mattel fluctuated and did not result in significant top line growth. Added to these, Mattel also faced challenges from the traditional toys and games business. The case details the history of Mattel, the traditional toy and game market, Mattels strategies during the new millennium and also briefs the challenges facing Mattel. The case facilitates learning of the basics
Low-cost Airlines; Load Factor: Cost Efficiency in Low-cost Airlines; Airport Modernisation in India; Rise in ATF Cost; Rising personnel cost for Airlines; Air Deccan; Kingfisher Airlines; GoAir Survival; Strategies of Low-cost Airlines; Indigo Aircraft Leasing and Renting; Eticketing Inflight advertising Ancillary Revenue for Low-cost Airliness.
Boeing Lockheed Martin JV: Together to Survive

In June 2003, Lockheed Martin sued Boeing alleging that the company had resorted to industrial espionage in 1998 to win the EELV contract. It accused Boeing of possessing 25,000 of its classified documents. In July 2003, Boeing was penalised, with the Pentagon canceling $1 billion worth of rocket launch contracts only to award them to Lockheed. Boeing was also barred from bidding for rocket contracts for a 20-month period which expired in March 2005. By May 2005, both competitors in spite of pending legal disputes between them announced the joint venture. In early September 2005, it was reported that Boeing was negotiating a settlement with the US. Department of Justice in which it would pay up to $500 million to cover the espionage issue and the Darleen Druyun scandal. On May 2 nd 2005 Boeing and Lockheed Martin announced a 50:50 joint venture called the United Launch Alliance (ULA) by merging the operations and production of both their government space launch services. Boeing Integrated Defense Systems Delta IV and Lockheed Martin Space Systems Atlas V were both rocket
www.ibscdc.org
19
launchers developed for the Evolved Expendable Launch Vehicle (EELV) programme intended to provide the United States government with competitively priced private spaceflight and assured access to space. In September 2006, the Pentagon renewed its support for the ULA and the Federal Trade Commission (FTC) gave its anti-trust clearance on October 3 rd 2006. Operations of the new company officially began on December 1 st 2006. The case attempts to highlight the complex nature of the US Defense and Space launch missions and the highly competitive market of international space launches. The background of the partners, the US government, the competitors for these launch vehicles like Northrop Grumman and Space and situation analysis on the joint venture is also presented. Pedagogical Objectives To understand the space launch market in US To discuss Boeings and Lockheed Martins stature in space launch vehicle manufacturing To discuss US defence contract awarding mechanism To understand growing competition in global space launch business To understand various technologies in Boeing and Lockheed Martins space vehicles and To discuss the future of US space launch vehicles market and players.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Aerospace Industry in US RTS0123C 2006 Not Available Not Available
improve all aspects of customer experience. According to this plan, McDonalds had revamped its menu, advertising and promotions. Now McDonalds wanted to refurbish its stores to enhance customer experience. McDonalds felt that customer tastes and preferences had changed over the years and in order to cater to their needs, the store should upgrade its facilities and present a more trendy and modern look. McDonalds was however facing problems in implementing this plan. The franchisees were reluctant to invest in the makeover. There was also the fear of the brand losing its nostalgia. The case facilitates discussion on issues related to brand management. It also provides scope for discussion on chain store and franchisee management. Pedagogical Objectives Is the redesigning of McDonalds stores a right strategy? How would McDonalds convince the franchisees to adopt the store revamp? Will the new design of stores affect the McDonalds brand.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Fast Food Retail Chain RTS0122C 2006 Available Not Available
base, it did not result in more profits. Net profits were down by 98%. It remained to be seen whether McDonalds under Eikoh Harada, President and Chief Executive Officer, would increase sales and sustain adequate growth. The case allows discussion on how a company made a turnaround successfully from loss to recovery. It also analyses the strategies adopted by McDonalds in Japan to increase revenue turnover. Pedagogical Objectives To introduce to the students McDonalds operations in Japan To throw light on the strategies followed by McDonalds to introduce Western fast food culture in Japan To give an idea about the fast food industry in Japan To list the various challenges faced by McDonalds in Japan To detail the strategy used by McDonalds to face the challenges.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Fast-food retail chain RTS0121C 2006 Available Not Available
Keywords McDonalds; Retailing in Japan; Retail Chain; Fast food stores; Franchise; Branding; Makeover; Brand attributes Low price Strategy; Store Revamping; Brand Equity Target customer; Retailing.
Keywords McDonalds; Redesign; Retail Chain; Fast food stores Plan to Win; Repositioning; Franchise; Branding Makeover; Brand attributes; Target customer Retailing; Brand Equity; Store Revamping; Strategy.
Keywords Boeing Lockheed Martin Atlas V Delta IV Evolution of Expendable Launch Vehicle Integrated Defense systems NorthropGrummans satellites launches Space X and Falcon rockets DoD and NASA space launch contracts FTC pproval for Joint venture Heavy Payload lift rockets Commercial Space launch market Pentagons Role in Space joint venture Shavit;GSLV; H-2A; Ariane rockets DARPA funding for rocket development.
McDonalds in Japan: From loss to Recovery

McDonalds hamburgers had been part of the Japanese food cycle for 35 years. They accounted for about 65% of the domestic hamburger market and boasted the highest sales in the entire restaurant industry. McDonalds, after experiencing a bad phase in 2005, witnessed a robust growth in Japan during the second quarter of 2006. Annual sales had grown by 8.5% to US$2.8 billion, the same-store sales by 10.2% and percustomer spending by 8%. In 2002, McDonalds experienced its first loss in 29 years, mainly due to strategic mistakes on the part of the management. Fear of the outbreak of mad cow disease in Asia and deflation in Japan were some of the reasons for the poor performance of the company. McDonalds had to close down stores which were not making profits. In 2005 it introduced the strategy of the low-priced menu in order to attract customers and increase sales. Even though this strategy yielded an increased customer
Philips Strategy Shift The Turnaround and After

Royal Philips Electronics of the Netherlands, one of the worlds biggest electronics companies, and the largest in Europe, had over the years established itself as a leading player in the consumer electronics industry. The company witnessed a slump in the late 1990s. Gerard Kleisterlee (Kleisterlee) who was appointed the president and CEO, Royal Philips Electronics in 2002 was able to turnaround the company from its previous losses by introducing a number of strategic changes. Despite considerable success, Kleisterlee admitted that the company had not yet been fully transformed. Drafting plans for the future, Kleisterlee wondered if the changes he had introduced would continue to yield greater returns and what other strategic moves he should take, to make the company more profitable. This case offers scope for discussion on management strategy and various innovative management initiatives that companies adopt to achieve growth.
McDonalds Redesigning of Outlets Change for the Better?

McDonalds, the worlds largest hamburger chain, was redesigning its stores worldwide. It was the first time in 30 years that McDonalds had undertaken a major revamp of its store. This initiative was in continuation of the Plan to Win strategy, which it undertook in 2003, to
20
www.ibscdc.org
Pedagogical Objectives To discuss management strategies for growth To discuss turnaround strategies and measures to be taken to sustain the same.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Electronics sector RTS0120C 2006 Not Available Not Available
Profitability; Business Strategies; Operational strategies; HR Strategies Rebel attacks on Sri Lanka; Tsunami impact on airline industry; Peter Hill; Low cost carriers; Sri Lankan political environment; Tourism Industry.
Sonys Return to Glory?
SUN in 2006: Changing Business Model

Sun Microsystems (Sun), a US-based leading computer company followed a vertically integrated business model wherein it provided the entire range of hardware and software requirements including computer chips, computers, operating system and programming language. Sun also put a strong emphasis on Research and Development (R&D). The business model had enabled Sun to maintain its lead in innovation and deliver many technological breakthroughs over the years. But since 2002, Sun had recorded losses for four consecutive years. To turn the company around, Scott McNealy (McNealy), CEO of Sun, had launched several initiatives, but the situation continued to worsen. In 2005, Suns losses amounted to $10.7 million on revenues of $11 billion. The case discusses the relevance of Suns business model in changing face of the computer industry in the US. Pedagogical Objectives To discuss the present/existing business model of Sun To compare the business models of the other leading US computer companies with that of Sun To discuss the relevance of Suns business model in the changing face of the computer industry in the US To discuss the pros and cons of the initiatives adopted by Sun to bring about a change in its business model
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Software (IT) industry RTS0118P 2006 Not Available Not Available
Keywords Philips; Strategy; One Philips; Design; Innovation; Turnaround strategies; Partnership with competitors; Consumer Electronics; Medical Equipment; Lighting; Joint Ventures; Corporate Culture; Competition; Chinese Medical Exports; Partnerships.
Once an unassailable brand, Sony has fallen behind in critical product segments, such as flat-screen TVs, DVD players, and portable digital music players. Faced with falling electronics prices, tough competition from other manufacturers, and increased restructuring costs, Sony is also heading for its first ever loss in a decade. In March 2005, Sony has appointed its first non Japanese CEO, Howard Stringer, to turn the ailing company around. The case outlines Sonys rise, its decline and Stringers turnaround strategy. Stringer mercilessly cuts costs while unifying the rank-and-file, and curbing the internal rivalry among engineers that had led to a confusing line-up of products, and the diminution of the once wanted brand. He believes that high-definition products are the key to Sonys future success. He also launches a makeover of the SonyStyle.com web site and bets on electronic iPod like books for future success. Pedagogical Objectives The case traces Sonys growth strategy It highlights the reasons behind its stagnation It outlines Sonys rise, its decline and Stringers turnaround strategy.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer Goods RTS0117P 2006 Not Available Not Available
Sri Lankan Airlines The Turnaround Story and After

Sri Lankan Airlines, the national carrier of Sri Lanka, made a record profit of Sri Lankan Rupees 5.6 billion in 2004 becoming the most profitable public sector organisation during the year. However, the airline was in deep trouble since inception. Inspite of being known for its courteous customer service and fairly good in-flight facilities, the company faced many problems such as old fleet, high fuel costs, labor problems and delayed flights. Sri Lankan Airlines was in great need of new investments to solve its problems. Sri Lankan government decided to invite Dubai based Emirates Airlines to acquire 30% stake in 1999. The stake was increased to 43% in 2001. Emirates Airline was cash rich to make investments and used its expertise to bring the turnaround of the Sri Lankan Airlines. The case discusses the challenges faced by Sri Lankan airlines and the strategies adopted by Emirates management to make the airlines profitable. The ongoing and future problems that might impact the airlines profitability are also discussed. Pedagogical Objectives To discuss how Sri Lankan Airlines made profits amidst lot of challenges To discuss ongoing future problems that may affect airlines profitability.
Industry Reference No. Year of Pub. Teaching Note Struc.Assign. Automobiles RTS0119C 2006 Not Available Not Available
keywords Sony Corporation; Howard Stringer; Consumer electronics market; Turning around Sony; Nintendo; Problems at Sony; sonystyle.com; Sony Reader; Network Walkman; Mora; iTunes; iPod.
Burger King: Will it regain market Share?

$11 billion-Burger King (BK) was also the second-largest burger chain in the world with 11,220 outlets in 61 countries. A privately-owned company, In addition to its popular Whopper sandwich, the chain offered a variety of burgers, chicken sandwiches, salads, and breakfast items. In 2004, the chain enjoyed 14.2% share of the fast food market in the world. BK had changed hands five times since its inception. The frequent change in management and their respective strategies had taken a toll on the company. BKs revenue had been declining steadily since 1999. The company had lost nine CEOs since 1999. In August 2004, Greg
keywords Sun Microsystems; Software(IT) industry; Vertical business model; Strong R&D emphasis; competitors namely Dell; IBM; Intel; Microsoft; Competitors strategies and business models; Suns earlier strategies; Suns decline; Razor and Blades (R&B) revival strategy launched by Sun CEO Scot McNealy; Effects of R&B strategy; CEO change at Sun in 2006.
Keywords Sri Lankan Airlines; Turnaround strategies; Emirates Airlines; Asian Airline industry;
www.ibscdc.org
21
Brenneman (Greg) was appointed as the 10 th CEO. The case discuss about Greg strategies to turn around the ailing company. Pedagogical Objectives To discuss the dynamics of the fast food industry To understand the factors leading to the downfall of Burger King To discuss the attempts made by Greg to make a turnaround.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Restaurant RTS0116P 2006 Not Available Not Available
Work Culture; Streamlining Product Line; Time to Market; Product Development Strategy; Empowering Design Department; Most Powerful Brand.
Pedagogical Objectives To discuss about how theme parks were performing in the US To understand the background of Six Flags and its turnaround plan.
Reinventing Samsung
Samsung wants to become the most powerful consumer brand in the world. The case outlines Samsungs R&D initiatives, global marketing strategy and holistic brand campaign to reinvent brand Samsung. Samsung has changed the processes and procedures in its design department and given its designers more power to influence not just how products look but also the products functionality and application. The case traces brand Samsungs emergence as the worlds most powerful brand. Pedagogical Objectives The case outlines Samsungs R&D initiatives, global marketing strategy and holistic brand campaign to reinvent brand Samsung. Samsung has changed the processes and procedures in its design department and given its designers more power to influence not just how products look but also the products functionality and application The case traces brand Samsungs emergence as the worlds most powerful brand.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer Electronics RTS0114P 2006 Not Available Not Available
Entertainment RTS0113B 2006 Available Not Available
keywords Amusement; Theme Park; Struggle; Turnaround; US Amusement Park Industry; Marketing Strategy; Cross Promotions; Acquisition; Discounts; Credit Card Programmes; Competition; Debt.
keywords Whooper; Drive Thru; Take outs; Changing Management; Strategies; Greg Benneman; Broiler; competitors; Market Share; Have it your way; Enormous omelets; Morale Boosting; Service-quality good; Liquidity & IPO; Investors.
Levi Strauss in the US (Part B): The Great Turnaround Plan

Levi Strauss, the original blue jeans manufacturer, has been steadily losing market share in the US. since 1996. When the industry trend was to move manufacturing facilities to developing economies in order to save on labor costs, Levi dragged its feet. It was also said to have been sloppy in terms of keeping up with the latest trends in fashion and hence lost its market leader position to Tommy Hilfiger, VF, Gap and a whole lot of new entrants in the industry. Part A of the case talks about this phase of Levi, from its birth. The issue here is: How will Levi stem the decline in its sales and catch up with the industry trends? In the 21 st century the company has initiated a series of comeback efforts aimed at recapturing its lost glory. Levis president and CEO, Phil Marineau, who joined the company in 1999, has engineered The Great LS & Co. Turnaround Plan, to revive the company. Part B of the case details these efforts by Levi and tries to answer the questions raised in Part A. Levi expected 2003, its 150th anniversary year, to be a significant year in the Plan. But due to the declining market, deflating prices and tax return errors, the company suffered a setback in its efforts. Since then it looks like the company is plodding on determinedly on its comeback trail. Pedagogical Objective To understand the importance of keeping in pace with the changing trends in business.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Apparel Industry RTS0112B 2006 Not Available Not Available
Rejuvenating Samsung
In 2001, Samsung is not content with being one of Koreas most successful companies, or even with outsmarting its Japanese rivals. It wants to become Koreas first great global company. CEO Jong-Yong Yun (Yun) is trying to put in place international systems and practices to transform Samsung into a global company. Yun realises that Samsung can no longer succeed by gaining market share at the expense of profits. He departs from the companys traditional Japanese business philosophy of life-time employment and respect for seniority. Samsungs turnaround strategy is based on providing leading-edge, stylish products that can be sold for a premium. To make itself look and operate more like a Western-style multinational, Samsung opens its operations to foreigners. Yun realises that profits in the Digital Age were directly linked to being first to market. The case outlines Samsungs initiatives to become a global brand. Pedagogical Objective The case outlines Samsungs initiatives to become a global brand.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer electronics RTS0115P 2006 Not Available Not Available
keywords Global Branding Strategy; Global Marketing; Product Design; Innovation; R&D; Restructuring; Advertising Strategy; Work Culture; Streamlining Product Line; Time to Market; Product Development Strategy; Empowering Design Department; Most Powerful Brand.
Six Flags: The Turnaround Management

Six Flags headquartered at New York, owned and operated a chain of amusement and theme parks in the US. Since 2001, the company had posted annual losses and around $2.6 billion was lost during the years. It was cited that heavy expansion and improper marketing insight were the causes for the losses. So in order to revive back its position, the new management took several initiatives to turnaround Six Flags. There was a mixed reaction in the industry and analysts opined that restructuring would be a costly affair. The case focuses on the management turnaround at Six Flags.
keywords Global Branding Strategy; Global Marketing; Product Design; Innovation; R&D; Restructuring; Advertising Strategy;
22
www.ibscdc.org
keywords Branded Apparel Industry; Levi Jeans; Dockers; Levi Strauss Signature; Phil Marineau; Tommy Hilfiger; VF Corporation; The Great Turnaround Plan; The LS & Co. Way; Red Wire DLX Jeans; iPod; Levis Red Tab; Outsourcing; Leadership; Global Sourcing Guidelines.
Levi Strauss in the US (Part A): Fading Denim?

Levi Strauss, the original blue jeans manufacturer and largest apparel manufacturer till the 1990s, has been steadily losing market share in the US since 1996. Levi was also said to have been sloppy in terms of keeping up with the latest trends in fashion and hence was taken over by competitors such as Tommy Hilfiger, VF, Gap art A of the case talks about this phase of Levi, from its birth. The case highlights the period in Levis history from the 1980s since when Robert Haas, great-great-grand nephew of the founder has been at the helm of affairs. It is his Utopian management style which experts have pointed out as the reason for the fading of the brand. Will Levi be able to stem the decline in its sales and catch up with the industry trends? Pedagogical Objectives To understand how Levi had become the largest apparel manufacturer To understand the effectiveness of Utopian management style on business.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Apparel RTS0111B 2006 Available Not Available
took over as a CEO in 1998, gave equal emphasis to both chemical and life science businesses unlike other players in the industry like Monsanto, Novartis etc. DuPont has emerged as a vertically integrated LSC after divesting its interests in energy, pharmaceuticals and textiles and forming strategic alliances with Bunge Limited and Tate and Lyle. Analysts were wondering how the new gamble would take off. Pedagogical Objectives Reinvention initiatives of Chad Holliday Operational details of a life science conglomerate like DuPont Vertical and horizontal integration using joint ventures and alliances Impact of long-term strategies on a companys finance.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Life science RTS0110B 2005 Not Available Not Available
keywords Wal-Mart; Germany; Retail Industry of Germany; The Act against Restraints of Competition; The Commercial Asct; Euro; Singles' Shopping; German Management; Private lables; Smart Price; Hard discout stores; Aldi; Price cuts; Government regulations; Wertkauf; Interspar.
Wal-Mart in Germany (Decline): Part (A)

In 2005, Wal-Mart was the leading retailer of consumer goods and groceries worldwide. It entered Germany in 1997 by the acquisition of two local hypermarket chains, Wertkauf and Interspar. Ever since its entry, Wal-Mart made losses in Germany and its business declined steadily due to a host of reasons. The case discusses on the reasons behind its failure. The revamp strategies of Wal-mart in Germany has been highlighted in Part (B) of this case. Pedagogical Objectives Retailing in Germany Entry of Wal-Mart in Germany Decline of Wal-Mart in Germany Reasons for decline of Wal-Mart in Germany Government regulations in German retail industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Retailing RTS0108B 2005 Not Available Not Available
keywords Life science industry; Conglomerates; DuPont; Chad Holiday Business Strategy; Sustainable growth strategy; Reinvention strategy; Renewable energy; Bio-based products; Polymers; Joint ventures; Acquisitions and divestitures; Marketing and distribution strategies; Vertical and Horizontal integration; Product diversification.
Wal-Mart in Germany (Revamp Strategies) Part (B)

In 2005, Wal-Mart, the leading retailer of consumer goods and groceries worldwide reported a steady decline ever since its entry to Germany, way back in 1997. (The reasons behind the decline has been discussed in detail in Part (A) of this case.) Wal-Mart tried to revamp itself by the introduction of a series of initiatives, backing on which it planned to break-even in Germany by 2005. However, it was highly sceptical whether they would finally emerge as winners in Germany. Pedagogical Objectives Government regulations in German retail industry Reasons for decline of Wal-Mart in Germany Revamp strategies of Wal-Mart in Germany.
Industry Reference No. Year of Pub. Retailing RTS0109B 2005
keywords Branded Apparel Industry; Levi Jeans; Dockers; Slates; Levis 501 jeans; Lee; Wrangler; Levi Strauss; Roberts Haas; LBO; Benevolent management style; jeans market; Supply Chain Initiative; Leadership; Global Sourcing Guidelines.
keywords Branded Apparel Industry; Levi Jeans; Dockers;Levi Strauss Signature; Phil Marineau; Tommy Hilfiger; VF Corporation; The Great Turnaround Plan; The LS & Co. Way; Red Wire DLX Jeans; iPod; Levis Red Tab; Outsourcing; Leadership; Global Sourcing Guidelines.
Reinventing DuPont
DuPont, the leading US-based Life Science Conglomerate (LSC) was founded in 1802. After nearly 100 years in the explosives business, the company realigned its focus on chemicals, banking on its polymer innovations. But with decline in profitability in the chemical business, DuPonts focus shifted to a sustainable growth strategy aimed at increasing the use of renewable energy and raw materials, and moving away from depletable resources like petrochemicals. Chad Holliday, who
Sony Corporation: Turning Around the Television Business

Since 1968, Sony Corporation (Sony) had dominated the television industry with its Trinitron Technology. Television, which is part of the electronics segment, contributed 18%-20% to the groups revenue. However, the company faltered during the transition from the analog to digital technology. While competitors such as Sharp, Samsung, Philips and LG invested heavily in the commercialization of Flat Panel Display (FPD) televisions, Sony www.ibscdc.org
23
continued investing in the Cathode Ray Tube (CRT) technology. With the demand for FPD TV displacing CRT TV and average selling price of tube TV declining rapidly, the companys operating margins declined from around 10% in 1991 to a meagre 1.5% in 2004. In a bid to consolidate its position, the company, in December 2004, announced its exit from the Plasma Display Panel TV market paying more attention to the LCD and rear projection TV business. Pedagogical Objectives To discuss about the missteps taken by the management at Sony over the years which led to the company losing its market leadership position in the television segment To highlight the corrective measures taken by the company to improve its product mix in a bid to increase revenues and profitability.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer Electronics RTS0107B 2005 Not Available Not Available
Year of Pub. Teaching Note Struc.Assig.
2006 Not Available Not Available
keywords Avon; Direct selling; cosmetics; Anew; Restructuring; Makeover; Mark; Andrea Jung; De-layering; Organisation structure; Make-up; solutions; color; LOreal; Procter & Gamble.
keywords RadioShack; US; Electronic retailer; 2006; Turaround strategy; business model; Solution strategy; business;store rationalisation; turaround plan; resume scandal; Best Buy; slow moving inventory; Circuit City; Tandy Radio.
Transnet, The State-owned South African Transport and Logistics Group: Maria Ramos Turnaround Strategies
Transnet is a transport and logistics company controlled by the South African government. Started in the late 1850s as a railway system, it got the company status in 1990. Being a government organisation, it suffered from inefficiency, bureaucracy and over staffing. In January 2004, Maria Ramos took over as the chief executive of the Transnet group. She implemented a four-point turnaround strategy for the revival of Transnet. She is overhauling South Africas largest transport company, which controls the countrys rail and port operations, divesting non-core assets, including South African Airways, embarking on a major capital expenditure program and improving customer service. Profits were up 57%, to $1.3 billion, for the fiscal year that ended March 31st 2006, on a revenue of $4.1 billion. Pedagogical Objectives To understand the problems affecting the financial health of Transnet To analyse the strategies implemented by Maria Ramos to turn Transnet around To debate whether disinvestments and laying off employees are always the most useful tools to revive a company To understand and analyse how a government-controlled company, if enthused and imbued with professional management, can be turned around into a profitable venture.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Logistics and Transport RTS0104 2006 Not Available Not Available
Avon gives itself a Makeover

Avon Products, Inc. (Avon) is a leading global beauty company, with over $8 billion in annual revenue in 2005. As the worlds largest direct seller, Avon marketed to women in 143 countries through five million independent Avon Sales Representatives. Avon product lines included popular brand names such as Avon Color, Anew, Skin-So-Soft, Mark, Avon Solutions and also an extensive line of fashion jewelry and apparels. Although revenues increased in 2003, 2004 and 2005, its net income was $848 million in 2005. There was stiff competition in the US market from other cosmetic companies. To hold its feet in the US and also to focus in other countries, especially China, the company announced changes to its global operating structure to bring senior management closer to its key business geographies, strengthen global integration, speed information flow and position the company for sustainable growth. Avon expected to incur costs to implement these initiatives over the next several years, with a significant portion of the total costs to be incurred during 2006. The company expected that benefits from restructuring would help to fund a significant increase in consumer investment as well as improve the competitiveness of its direct selling opportunity. Avon expected to increase investment in advertising, marketing intelligence, consumer research and product innovation. These actions were expected to improve growth prospects beginning in 2007. It remains to be seen whether Avon would be successful in its makeover plans. Pedagogical Objectives To elucidate about the US cosmetic market To understand how Avon was restructuring to maintain its position in the global cosmetic market.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Cosmetics RTS0105B 2006 Not Available Not Available
keywords Sony; Trinitron; WEGA; Sony TV; Digital Transmission; LCD TV; Television market; CRT TV; Sharp; Samsung; Television business; HD TV; Sony Style Stores.
RadioShacks Revival Plan: Way to Success?

RadioShack was one of the leading consumer electronics retailers in the world which had more than 7,460 outlets in and around the US. In the early 2000, the company witnessed decline in its sales due to unsuccessful products and new ventures. In 2005, in order to revive the struggling company, its CEO, Edmondson formulated a revitalisation plan. Before the company started working on its revival plan, Edmondson had to resign and this resulted in uncertainty in the entire organisation. Though the new CEO, Claire Babrowski started working on the turnaround plans, analysts were sceptical about the companys ability to rejuvenate itself amidst its challenges. Pedagogical Objectives To understand about the consumer electronic market in the US To discuss about the need for innovation to survive in business To understand how Radio Shack achieved growth and what led to its turnaround.
Industry Reference No. Electronics RTS0106B
keywords Public sector enterprise; South African Railways; South African Railways and Harbour (SAR&H); Metrorail; Overstaffing; Spoornet; National Ports Authority; Restructuring; Spin offs; The Blue Train; Revival strategies; Worker opposition.
Tyco International Ltd. in 2006

In 2006, Tyco International Limited (Tyco) was a US$40 billion diversified
24
www.ibscdc.org
manufacturing and services company which operated in four business segments: Fire and security, Electronics, Healthcare and Engineered products and services. Tyco shifted its operations to Bermuda while operated from New Jersey with its administrative and executive functions were conducted from New York and New Hampshire. Tyco had operations in more than 100 countries and employed 260,000 people worldwide in 2006. Dennis Kozlowski (Dennis) became CEO in 1992 and left the company in 2002 as was charged of unethical accounting practices, governance issues and fraud against companys shareholders. In August 2002, Edward Breen (Breen) became the CEO and brought about major changes at Tyco. He rescued the company from liquidity crisis and reduced the debt to US$ 10 billion in Jan, 2006 from US$28 billion in 2002. He brought the turnaround of company by improving efficiency of operations through Six Sigma and closed the unproductive units. The case discusses why a conglomerate restructured itself through spin off strategy to focus on its core business and increase its stock price by gaining the investors confidence. The case highlights whether a three way split was the solution for the Tycos operational problems and will it make job easier for the company. The leadership of Breen and strategies adopted by him would help to overcome the financial crisis. The emphasis of company had changed to have more focus to achieve core competence. Pedagogical Objectives To discuss on the appropriateness of the restructuring efforts undertaken by Tyco To debate on the success of the split To discuss the mergers and acquisitions strategies followed by Tyco.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Diversified Services RTS0103A 2006 Not Available Not Available
material costs by $6 billion and revive its money-losing North America auto operations to profitability by 2008. Ford also planned to make significant changes in its global operations and product engineering that would make new product development more efficient and economical. Would Ford be able to make its presence felt in the market as before? Pedagogical Objectives To discuss the restructuring efforts of Ford to tackle problems like unimpressive revenue growth, mounting losses and damaged brands To discuss the turnaround strategies followed by Ford.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile Industry RTS0102A 2006 Not Available Not Available
To investigate the challenges faced by Sanyo To debate whether Sanyo evolution project and other structural reforms would help in Sanyos turnaround To discuss the restructuring strategies of Sanyo.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer Electronics RTS0101A 2006 Not Available Not Available
keywords Sanyo; Japan; Consumer Electronics; Semiconductor plant; Sanyo evolution project; Think GAIA; structural reforms; management reforms; workforce reduction; scaling operations; core businesses; changing focus; turnaround.
keywords Ford Motors; Automobile Industry; North America; Bill Ford; Mark Fields; US; United Auto Workers (UAW); Employee pricing for everyone; Crossover; Special Utility Vehicle (SUV); minivans; Big Three; General Motors; Strategy; Restructure; Product Design; Marketing; Brand; Management.
Restructuring at Merck
In 2005, Merck was the worlds sixthlargest global pharmaceutical company. In November 2005, Merck announced a global cost-cutting campaign. Several factors prompted this move, including uncertainty in its discovery pipeline and the loss of sales revenue from the pain-reliever Vioxx, which was recalled in September 2004. Tens of billions of dollars in potential liability arose from the recall of Vioxx. Moreover, the companys top-selling product, Zocor, would lose patent rights in mid-2006. When the flow of new medicines from Mercks research and development pipeline dried up, analysts criticised the company for concentrating too much effort on a limited range of cures. The case discusses the restructuring plan of a pharmaceutical company which is facing problems like unimpressive growth in R&D, blockbuster product recall, loss on patent rights on its top selling drugs. Pedagogical Objectives To discuss the restructuring plan of a pharmaceutical company which is facing problems like unimpressive growth in R&D, blockbuster product recall, loss on patent rights on its top selling drugs To understand the structure Pharmaceutical industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Pharmaceutical Industry RTS0100A 2006 Not Available Not Available
Restructuring at Sanyo
In 2005, Japans third-largest consumer electronics maker, Sanyo Electronic Co., Ltd., (Sanyo) faced a crisis. The company was making losses in its home appliance business and faced sluggish growth in its digital camera and mobile phone business. To add to its woes, in October 2004, an earthquake measuring 6.8 on the Richter scale caused extensive damage to its semiconductor manufacturing facility in Nigata. For the year ended March 31 st 2005, Sanyo reported its biggest ever loss of US$1.1 billion and the company expected yet another loss of US$1.24 billion for the year ending March 31st 2006 In September 2005, it announced the Sanyo evolution project under which the company planned to initiate company wide structural reforms. It included a massive reduction in workforce, closing down some manufacturing facilities, scaling down the unprofitable businesses and other significant measures over a period of time. The top management at Sanyo aimed at shifting the focus of Sanyo from a general consumer electronics manufacturer towards one focused on cutting edge environment and energy products and services. Would these reforms help in turning around Sanyo?
keywords Tyco International; Manufacturing and Services Company; Fire and security; Electronics; Healthcare; Engineered products and services; Bermuda based conglomerate; unethical accounting practices; Governance issues and fraud; Liquidity.
of
Ford Restructuring in 2006

In January 2006, Ford Motor Co. (Ford), one of the Big Three in automobile industry worldwide, announced to close 14 factories and trim as many as 30,000 jobs by 2012. The company planned to cut
keywords Merck; Pharmaceutical Industry; North America; Restructuring; cost-cutting; www.ibscdc.org
25
Vioxx; Zocor; Gardasil; Rotateq; Zostavax; Patent; Rofecoxib; FDA; Research and Development; Downsizing; Drug Development; Pre-clinical test; Product Recall; Prescribed Drug; Generic Drug.
EMC Corp.: The Turnaround

Started in 1979 as an agency to sell office furniture, EMC Corp. had been the leading producer of disc storage devices in the 1990s. However, the company was hit hard by technology bubble burst in 2000 and for the first time in its history it incurred losses in 2001. The same year, Joseph Tucci took over as the CEO and president of EMC and to revive the company he acquired many small and start-up software firms, which would help the company to diversify into the software business. By diversifying its business portfolio, EMC returned to profitability in 2003 and in July 2006, with revenues of $9.6 billion, it was ranked No. 249 in the Fortune magazines list of Americas largest industrial corporations. Pedagogical Objectives To understand the factors that enabled EMC to become the biggest manufacturer of disc storage devices in the world To analyse the reasons for EMCs losses after the technology bubble burst in 2000 To discuss how the acquisitions of many small software firms enabled EMC to come out of spiralling losses To analyse how EMCs transformation from being a hardware manufacturer to a complete solution provider in information management and security helped it to revive its fortunes.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Magnetic Disk Storage RTS0099 2006 Not Available Not Available
had been its major market and it had invested heavily to increase production expecting an open market across Europe. Due to rising debts, despite divesting many of its businesses, Chiquita filed for bankruptcy in 2001. In March 2002, Cyrus Freidheim was appointed as the CEO and under his leadership, the company underwent a restructuring to reduce its debts and increase its revenues. However, Chiquita still faces the challenge of the new banana import regulations in Europe, which has been implemented since January 2006. Pedagogical Objectives To highlight the factors that enabled Chiquita to become one of the largest food companies in the world To analyse the reasons that forced the company to file for bankruptcy in 2001 To discuss the various strategies implemented by Cyrus Freidheim that revived Chiquita To debate on the future challenges of Chiquita and whether the transformation plan would enable the company to overcome them.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Fresh Fruit & Vegetable Production RTS0098 2006 Not Available Not Available
incurred losses to the tune of $543 million in financial year 2005-2006 in its digital camera division. Pedagogical Objectives To understand the reasons that prompted Konica Minolta to close down its global camera and colour film business To discuss the restructuring strategies adopted by the company to turn its fortunes around To debate whether Konica Minolta would be able to reinvent itself from a highly regarded camera manufacturer to a provider of multifunction products.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Printing & Imaging Equipment RTS0097 2006 Not Available Not Available
keywords Konica Minolta; Sony; Digital camera market; Commoditisation; Digital SingleLens Reflex (SLR) cameras; Growth of camera phones; Prosumer cameras; Minilabs; Revamp of management structure; Restructuring strategies; Digital multi-function products.
Sony: Sir Howard Stringers Strategic Choices

Since the late 1990s, Sony Corporation, known for its pioneering products like the Walkman, the compact disc and the PlayStation, had been witnessing fierce competition from companies like Apple Computer, Matsushita Electric, Sharp and Samsung. Further, due to several unrelated diversifications, Sonys shares lost twothirds of their value since 2000. Despite several cost-cutting measures initiated by the former chairman, Nobuku Idei, Sony failed to contain declining sales and operating losses. In June 2005, Sir Howard Stringer, the then chairman of Sony America, was appointed as the new chairman of Sony Corporation (the first ever non-Japanese to be Sonys CEO) and was handed over the mantle to steer the company out of the financial crisis. Pedagogical Objectives To analyse the reasons behind the decline of Sony from a global consumer electronics behemoth to trail behind other competitors like Samsung, LG and Apple To discuss the cost-cutting and restructuring strategies at Sony and why they failed to turn Sony around To debate on the strategies announced by Sir Howard Stringer and whether they
keywords Banana fruit company; Environment pollution; Rain Forest Alliance; EU Regulations; Quota Restrictins; Corporate Social responsibility; Core Values; Code of Conduct; SA8000 Labour Standards; Social Accountability International; United Fruit Company; Banana exports.
Konica Minolta: The Restructuring Strategies

On January 19 th 2006, Konica Minolta announced that it would withdraw from the global camera and colour film business. It also decided to divest a plant, intellectual property rights and customer service operations of its cameras and other assets of digital SLR cameras to Sony for an undisclosed amount and discontinue production of its compact cameras by March 2006. Konica Minolta decided to focus on areas that did not directly cater to individual consumers but to offices and other organisations, such as digital Multifunction Products (MFPs), laser printers, colour office copiers, liquid crystal display materials, medical equipment and optical devices. These decisions were taken after the company
keywords Magnetic Storage Devices; Joe Tucci; Mergers and Acquisitions; Technology Companies; 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 the largest producers and distributor of bananas in the world. In the 1990s, the EU regulations restricting banana imports into Europe hit the company hard as Europe
26
www.ibscdc.org
would enable Sony to regain its leadership in the global market.

Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer Electronics RTS0096 2006 Not Available Not Available
To debate whether the new restructuring strategies of Brenda Barnes would be able to turn Sara Lees fortunes around.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Food and Beverages RTS0095 2006 Not Available Not Available
keywords Consumer electronics; Walkman; Compact disc; Mobile communication; Global TV market; Digital camera; Cost restructuring; Supply chain management; Internet ready devices; Silo organisational structure; Product interoperability; Structural reorganisation; Group convergence strategy; Middleware; Profit structure.
keywords Steven McMillan; John Bryan; Sara Lees restructuring strategies; Divestiture; Jimmy Dean; De-verticalisation; New vision; Bill Mar; Senseo; Acquisition of Earthgrain; Listeorisis controversy; Sara Lee Bakery Group (SLBG); Consolidated Food Corporation.
adopted the Hunter strategy to expand beyond its domestic market. Based on McKinseys recommendations, Swissair expanded its operations by acquiring stakes in different airlines. However, the strategy failed with mounting debt and continuous losses resulting in liquidity crunch. Liquidity crisis finally led to the grounding of the Swissair fleet on October 2nd 2001. Based on the events on the last days of the airline, a movie named Grounding: Last days of Swissair was made in Switzerland. The movie, which has brought alive the national disaster, not only raises the question about whose was responsible for the grounding of Swissair but has once again brought into the forefront the issue of corporate governance. Pedagogical Objectives To discuss Swissairs Hunter strategy and its failure which resulted in the grounding of Swissair To discuss Swissairs restructuring efforts to revive its operations To discuss the corporate lessons to be learnt from the movie Grounding: Last days of Swissair.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Aviation RTS0093 2006 Available Not Available
Sara Lee: CEO Brenda Barnes Restructuring Strategies

By the turn of the 21 st century, Sara Lee Corp., which started as a food products manufacturing company in the US in 1939, had transformed into a $20 billion conglomerate of diversified businesses ranging from Jimmy Dean sausages, Kiwi shoe polish, Hanes undergarments to Ambi pure air freshener and Sara Lee bakery. However, a series of expensive but unyielding acquisitions, lack of investment in new product innovation, negligible expenditure on advertising and the declining returns from its unrelated businesses started affecting the bottom line of Sara Lee. The problem was further compounded by rising commodity prices, sluggish European and US economies, increasing bargaining powers of mega discount stores like WalMart, fluctuating exchange rates and the company itself was mired a series of controversies. Although the company endeavoured to address the situation through several restructuring measures under different CEOs, it failed to overcome its challenges. In February 2005, Brenda Barnes took over as the CEO of Sara Lee and embarked upon one of the biggest restructuring tasks in the US corporate history to revive the fortunes of the company. Pedagogical Objectives To comprehend how Sara Lee had grown as a market leader in the US by focusing on coherent business expansions To discuss the factors that prompted Sara Lee to foray into several un-related businesses in the mid-1990s and the challenges that are faced by companies with diversified business portfolios To analyse the reasons behind the failure of various restructuring initiatives undertaken by different CEOs to boost the sagging financial health of the company
Burger Kings Turnaround: Courtesy the Private-equity Firms

The worlds second-largest fast food restaurant has been facing declining profits and market share since the late 1990s. In 2002 three private-equity firms bought Burger King and turned the companys operations around. In 2006 the privateequity firms announced their exit through an IPO. These events have brought to the fore the concerns whether the company has been actually turned around, and whether IPO is the appropriate exit strategy. Pedagogical Objectives To discuss Burger Kings turnaround To understand the various exit strategies available to the private-equity firms To analyse whether IPO is the right exit strategy for the owners of Burger King.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Fast Food RTS0094 2006 Not Available Not Available
keywords Switzerland; Deregulation; Aviation; Hunter strategy; Qualiflyer alliance; Grounding: Last days of Swissair; Mario Corti; Brand image; Corporate governance; Crisis management; Business ethics; Bankruptcy; Growth strategy; Restructuring.
Japan Airlines Losses Mount: The Restructuring Strategies

Japan Airlines Corporation (JAL), founded in 1952, was the oldest airline company of Japan. JAL had been running its business as a monopoly in an environment highly regulated by the Japanese government. However, with the subsequent deregulation of the Japanese Aviation industry in 1985, it had to face competition from other airlines. A series of highly publicised safety gaffes forced its customers to switch to competitors services, endangering JALs survival. An internal power struggle, which had been brewing for some time, coupled with harsh media-led criticism eventually led to a change of leadership in the company. Though the new leadership formulated a restructuring package, scepticism run high about the success of the restructuring process.
keywords Private-equity firms; Initial Public Offer (IPO); Customisation; Customer Relationship Management (CRM); Franchisee relationship management; Exit strategy for private equity firms; Troubled times; Positioning strategy; Marketing; Culture; Customer centric approach; Restaurant design.
Swissairs Hunter Strategy and the Grounding: The Lessons

With Switzerland rejecting the membership to European Economic Area, Swissair encountered restriction to operate in other European countries. Swissair, known for its quality, reliability and innovations,
www.ibscdc.org
27
To discuss the effects that change in environment has on a corporations fortunes To discuss the management problems that government-owned companies face post privatisation To discuss the evolution of the Japanese Aviation industry and the competitive environment that ensued subsequent to deregulation of the industry To discuss problems that JAL was facing and their causes To discuss JALs restructuring strategy and its potential success.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Aviation Industry RTS0092 2006 Not Available Available
To debate whether Volkswagen would be able to continue its success in the future also.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile Manufacturing RTS0091 2006 Not Available Not Available
Retail RTS0090 2006 Available Not Available
keywords Ahold; Anders Moberg; Re-engineering; Value chain; Financial crisis; Corporate governance; Turnaround strategies; Supply chain and logistics; Road to recovery programme; Divestments; Business model; Cost-cutting measures; Crisis management; Accounting scandal.
keywords Restructuring strategies; Dr. Bernd Pischetsrieder; Cost cutting; Platform sharing; Cannibalisation; US automobile market; Legacy costs; Volkswagen; Ferdinand Piech; Formotion programme; Comparative labour costs.
Motorolas Turnaround: Ed Zanders Culture Strategy

Initially founded as the Galvin Manufacturing Corporation in 1928, Motorola was known for being the first to manufacture the hand-held radio and pager. It was the leading manufacturer of cellular handsets and semiconductor chips. But the early 1990s brought in a number of challenges for the company. The company did not envision the surge in demand for digital products. Although the then CEO Christopher Galvin made attempts to revive the company, the results were not visible. Edward Zander (Zander) was appointed as the CEO in 2003 to bring a new perspective into the company. Zander reorganised the various units and increased the focus on the development of new products. His strategies worked and the company climbed to the number two spot in the cellular handset market with the introduction of the Razr V3 handset. However, questions remain about the companys turnaround and the tough obstacles that Zander could face in the future. Pedagogical Objectives To highlight how a market leader, if it reads the market wrong, can be forced to be a follower To understand Motorolas strategic missteps if any To discuss the need for the turnaround at Motorola To underscore the importance of leadership in managing troubled times To discuss the effectiveness of Edward Zanders strategies to turn the company around To debate on further steps to be taken to defend and enhance Motorolas market position.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Telecommunication RTS0089 2006 Available Available
Anders Moberg at Ahold: Turnaround Strategy with Re-engineering the Value Chain
In February 2003, Ahold, the largest retailer in the Netherlands, was charged with significant accounting irregularities. The company was accused of overstating its revenues and certain illegal transactions. The company also went through liquidity crisis and was on the verge of bankruptcy. To turn Aholds fortunes around, Anders Moberg (Moberg), the ex-IKEA executive, was appointed as the CEO in May 2003. To stabilise the company, Moberg introduced a three-year Road to recovery programme. This involved a major restructuring process at Ahold through 2003 to 2005. The programme brought stability to the company, and for 2006 Moberg planned to improve the companys profitability through effective reengineering of the value chain. However, there are many challenges ahead and unless they are addressed quickly and effectively, Ahold could become a soft target for takeover. Pedagogical Objectives To understand the crisis at Ahold due to a major accounting scandal To understand the Road to recovery programme introduced by Moberg to bring in stability to the company To discuss the relevance of Mobergs turnaround strategy, which included reengineering the value chain, to improve the companys profitabilty To discuss how divestments, logistics and supply chain savings, efficient business model, cost-cutting measures and private labelling of brands can become effective strategies To debate whether Mobergs strategies would be able to save the company from becoming a takeover target.
keywords Japan Airlines; Civil aviation industry in Japan; Civil Aeronautics Law; International carrier; 45-47 framework; Deregulation; Freedom rights; Aggregate cost formula; Zonal airfare system; Flag carrier; Japan Airlines Corporations (JALs) safety record; Restructuring strategies; Bureaucratic culture; Power struggles; Cost cutting measures.
Volkswagen: The (Proactive?) Restructuring Strategies

Volkswagen, the leading German carmaker, produced better financial results for 2005 compared to the year before. The company attributed this success to its restructuring programme, Formotion which was started in 2004 and continued through 2005, for the reduction of costs in the manufacturing processes. Despite the good results, the company planned to continue with its restructuring plans, as the company officials felt that in the long run its cost structure was still not justifiable. Being the largest carmaker in Europe, Volkswagen was also targeting the North American market where it has been facing severe competition from major carmakers like GM, Ford and Toyota. Pedagogical Objectives To understand the Formotion programme initiated at Volkswagen to reduce the costs associated with the companys manufacturing process To discuss the reasons behind Volkswagens continuation of its restructuring process To discuss the strategies being contemplated by Volkswagen for its US operations
28
www.ibscdc.org
keywords Motorola; Edward Zander; Razr V3; Cellular handsets; Iridium; Pebl; Slvr; Culture; Strategy; Semiconductor business; Seamless mobility; Apple iTunes.
Daimler-Chrysler to DaimlerChrysler: Dieter Zetsches (The New CEO) Restructuring Strategies

Daimler-Benz and Chrysler Corporation merged to form DaimlerChrysler in May 1998. The merger was considered an historical merger of mass with class. However, soon after the merger, the Chrysler division of the company began to incur losses and this in turn had an adverse effect on the Mercedes division, which meanwhile had begun to witness quality problems. DaimlerChryslers other initiatives of acquiring a stake in Japanese automaker Mitsubishi and the two car units Smart and Maybach, failed to deliver profits. This led to increasing discontentment towards the leadership of Jurgen Schrempp, the former CEO and the prime architect of the merger. On January 1st 2006, Dieter Zetsche, the former CEO of the Chrysler Division, who had successfully turned Chryslers American operation around, replaced Schrempp as the new CEO of the company. Zetsche announced a restructuring plan on January 24 th 2006 that mainly focuses on integrating the Mercedes and Chrysler divisions to increase the profitability of DaimlerChrysler. Pedagogical Objectives To highlight the reasons behind the merger of Daimler-Benz and Chrysler To focus on the reasons behind the poor performance of DaimlerChrysler after the merger To provide a scope to discuss the restructuring plan of Zetsche and whether it would be able to turn DaimlerChrysler around To debate whether the new CEO can integrate two opposing cultures.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobiles RTS0087 2006 Available Not Available
SABMillers Miller Brand in USA: The Turnaround

South African Breweries (SAB), a beer and other cold beverages manufacturer, has a near total monopoly in its domestic market. SAB commenced its global expansion only in the mid-1990s after the installation of a democratic government in South Africa. While making efforts to gain a foothold in the US, the world's most profitable beer market, SAB acquired the countrys second-largest beer maker, Miller, in 2002. Miller was a declining US brand having continuously lost market share to its competitor and market leader Anheuser-Busch throughout the 1990s. The new company SABMiller, brought in Norman Adami, a veteran SAB executive from South Africa to revive the Miller brand. Pedagogical Objective To discuss the turnaround strategies of SABMiller under Norman Adami.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Beverages RTS0086 2006 Not Available Not Available
The Fiat Group: Rebuilding its Car Business

Fiat Auto, the auto division of the Italian conglomerate Fiat Group, had gained huge success during the 1980s and 1990s. But with increasing competition the companys as well as the groups fortune started declining and for three years 2001, 2002 and 2003, the group reported negative profits. To turn the fortunes around, Sergio Marchionne (Marchionne) was appointed the CEO in 2004. Marchionne brought changes in the management structure and introduced new car models. In August 2005, he introduced a new three-year industrial plan to re-launch the entire Fiat Group and bring recovery to the auto division of the group. The success of the plan was seen at the end of 2005, when the financial results of the group showed profits. But critics were doubtful whether this success would continue in the coming years in the face of competition from other car manufacturers. Pedagogical Objectives To understand the problems being faced by Fiat Group, especially its auto division To discuss the underlying reasons behind such problems To discuss the appropriateness or otherwise of CEO Sergio Marchionnes strategies to turn the fortunes of the auto division and the group around To debate what is the likely future of the group, especially the auto division To debate what are those practices that must be institutionalised independent of the CEO.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Auto manufacturing RTS0088 2006 Not Available Not Available
keywords Turnaround strategies; Norman Adami; Anheuser-Busch; Brand image; Brand building; Organisation culture; Marketing strategies; Philip Morris Altria Group; South African Breweries (SAB); Miller Lite; Bud Light Budweiser; Beer market in the US; Promotion and distribution strategies.
Lear: The US Automobile Parts Makers Restructuring Strategies

Southfield (Michigan)-based Lear Corporation, one of the worlds largest suppliers of automotive interior components and systems, provides complete seating systems, interior trim products and electrical & electronics systems. Since 2000, the company has been witnessing flat sales and increased raw material costs. Further, it has also been hit by declining business from its major customers like GM and Ford that have reduced production in the face of stiff competition from Asian carmakers. To minimise its losses, Lear has announced a global restructuring plan in June 2005, which includes factory closures in North America and Western Europe apart from transferring some of its manufacturing facilities to low-cost regions like Eastern Europe and Asia. Pedagogical Objective To discuss the restructuring strategies of Lear while highlighting the perils of over www.ibscdc.org
keywords Mergers in global automobile industry; Cross cultural mergers; Mercedes-Benz; Chryslers financial downturn; Restructuring strategies; Leadership issues at DaimlerChrysler; Culture change at DaimlerChrysler; Turning around Chrysler; New management model at DaimlerChrysler; Synergies of mergers in the automobile industry.
keywords Fiat Group; Fiat Auto; Business diversification; Sergio Marchionne; General Motors; Put-out option; Industrial plan; Customer preferences; Joint ventures; Foreign competition; Government protection schemes; Restructuring programme; Organisational change; Capacity utilisation.
29
dependency of any supplier on a handful of major customers.

Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Auto Parts Manufacturing RTS0085 2006 Available Not Available
keywords Lear Corporation; Automobile parts manufacturing market; Automobile interior manufacturers; 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 Asian Business

Merrill Lynch & Co. was the first US brokerage firm to start its operations in Japan. Since the late 1960s, Merrill Lynch played a significant role in the development of the capital markets in the Asia-Pacific region. It also became the first US financial management and advisory company to open an office in China. However, after the dotcom burst in the late 1990s followed by the September 11 th 2001 terrorist attacks in the US, Merrill Lynch was forced to streamline its international operations significantly in the Asia-Pacific region. Since 2004-2005, it has again started looking out for more business partnerships to revive its fortunes in Asia. Pedagogical Objectives To highlight the growth as well as the subsequent decline of Merrill Lynch in Asia To discuss the revival strategies of Merrill Lynch for its Asian business.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Retail Brokerages RTS0084 2006 Not Available Not Available
has transformed into a large chain of 420 stores worldwide by the early 21st century. However, the low-carbohydrate craze in the US coupled with the companys overdependence on doughnuts led to its first quarterly loss in May 2004 and its shares declined by 29.2% to $22.51. Further, many of its franchisees went bankrupt and the company was forced to re-acquire them. However, the shareholders alleged that the company had misreported its profits and had also failed to issue a profit warning when it knew that its prediction for the quarter earnings would fall short. This was followed by a Securities and Exchange Commission (SEC) enquiry in July 2004. Under such circumstances, the chief executive officer, Scott Livengood, stepped down in January 2005 and Stephen Cooper, a renowned turnaround specialist, was appointed to turn the company around and refurbish its declining image. Pedagogical Objectives To highlight the troubled times at Krispy Kreme and the turnaround strategies initiated by Scott Livengood To discuss whether Stephen Cooper along with Scott Livengood revive the sagging fortunes of the American doughnut icon.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Specialty Eateries RTS0083 2006 Not Available Not Available
Pedagogical Objectives To analyse the reasons behind Goodyears slack market performance To discuss the restructuring strategies adopted by Robert Keegan and the probability of a successful turnaround.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Rubber and Plastic Product Manufacturing RTS0082 2006 Not Available Not Available
keywords Restructuring strategies; Turnaround strategies; Management change; Dealer relationships; New product developments; Tyre industry; Acquisition strategy; Management restructuring; Organisational change; Assurance tyre line.
GM's Growing Troubles: Rick Wagoners Restructuring Strategies and the Challenges
General Motors (GM) incurred losses to the tune of $1.6 billion in the third quarter of 2005 mainly arising from its North American operations. Rick Wagoner, Chief Executive Officer (CEO) of GM, announced that the company would eliminate 30,000 jobs and close down four of its 20 assembly plants in North America by the end of 2006. The management cited rising health care and labour costs as major reasons for the losses. But the United Auto Workers (UAW) felt that the vehicle design, product development and foreign competition were the major reasons for the companys poor performance. The opposing stands taken by the management and the labour union had stalled negotiations concerning reduction of health care costs, job cuts, outsourcing and sub-contracting. Finally on October 17 th 2005, GM announced its deal with the UAW, which agreed to reduce its health care costs for retirees by $15 billion and its annual employee health care expenses by $3 billion a year. Other than reducing costs, GM has also planned to increase its revenues by refocusing on sales, marketing and development of new models. It even planned to sell a majority of its stake in the profit-making General Motors Acceptance Corporation. Despite this, in December 2005, S&P (Standard & Poors) slashed GM]s credit rating to junk, from BB to B, and expressed concern about the turnaround efforts. It also said that bankruptcy was a distinct possibility in the near future. Pedagogical Objectives To provide an insight on the historical perspective about the legacy costs at GM
keywords Turnaround strategies; Reasons for business failure; Stephen Cooper; Scott Livengood; Troubled times at Krispy Kreme; Carver Rudolph; Low carbohydrate craze in US; Accounting controversies; Securities and Exchange Commission enquiry in Krispy Kreme; Warehouse management; Acquisitions and partnerships; Restaurants and cafes business in US; Restructuring strategies; Cost-cutting strategies; Expansion through franchisee.
keywords Merrill Lynch; Goldman sachs; Growth strategies; Competition; Morgan Stanley; Lehman Brothers; Charles Schwab; Revival strategies; Financial market in Asia; Online trading; Acquisitions and partnerships; Brokerage scandals; Investors; Restructuring strategies; Challenges for Merrill Lynch.
Goodyears Troubles: CEO Robert Keegans Restructuring Strategies

In the 1990s, Goodyear, the iconic US tyre manufacturer witnessed a decline in its profits. Its debts increased as Goodyear faced successive years of recession, rising raw material costs and overcapacity in the market. After several unsuccessful attempts to turn the company around, Robert Keegan, a former Kodak executive, was appointed as the chief executive officer and chairman of the company. Robert Keegan launched a detailed restructuring plan to turn the financially troubled company around.
Krispy Kreme Doughnuts Inc.: Turning the Turnaround Strategies Around?

Since its inception in 1933 as a small doughnuts store in the US, Krispy Kreme
30
www.ibscdc.org
To discuss whether Rick Wagoner could turn around the company by bringing down the legacy costs while highlighting the possible effects of bankruptcy on its suppliers, customers, creditors andinvestors.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile RTS0081 2006 Not Available Not Available
Turnaround strategies of Acer.
Siemens AGs Troubles: Klaus Kleinfelds (The New CEO) Restructuring Strategies
In January 2005, Klaus Kleinfeld (Kleinfeld) succeeded Heinrich von Pierer as the 11th CEO of Siemens AG. Although, under the tenure of Heinrich von Pierer, Siemens had achieved significant sales and profits, the operating profit margin of the company was only 5% as compared to 11% achieved by its competitor, General Electric. Further, the increasing unemployment and labour cost in Germany coupled with several loss-making units in Siemens were also among the major problems being faced by the company. Kleinfeld, known for his successful turnaround of the ailing Siemens unit in the US, is expected to restructure Siemens AG. However, analysts were sceptical about Kleinfelds US style of management. Pedagogical Objectives To highlight the problems faced by Siemens To discuss the strategies adopted by Kleinfeld in reviving Siemens AG.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Not Applicable RTS0079 2005 Not Available Not Available
enough of a measure to regain Teltra's lost glory in the light of competitive pressures in the Australian telecommunications industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Telecommunication RTS0078 2005 Not Available Not Available
keywords Telstra Corporation; Sol Trujillo; Australian telecommunications industry; Privatisation; Transformational strategic plan; Integrated company; Cost structure; Retrenchments; 3G Networks; Internet services; Cost-effective services; Government regulations.
keywords General Motors; Rick Wagoner; US car industry; Toyota; Competition; Labour; Health care costs; Suppliers; Customers; Creditors; UAW (United Automobile Workers); Contracts; Negotiations; Alfred P Sloan Jr; Delphi.
Acer Co. Ltd.: The Corporate Turnaround

In 2005, Acer had become the worlds fourth-largest branded personal computer vendor, with a market share of 4.4% taking it to the same league as Dell, HP and Lenovo. In 1999, Acer had withdrawn from the US computer market in the wake of huge losses and in turn underwent restructuring, spinning off several different business divisions. Acer succeeded in all the major markets of the world by embracing traditional marketing channels in an age when its competitors were following direct selling methods. Restructuring had paid off and the PC (Personal Computer) division retained the brand name Acer and is currently challenging the bigwigs of the business. Acers achievement is rated to be a remarkable turnaround, considering its miserable performance at the turn of the 21 st century. Acer has set a goal of becoming the third-largest company, and aims to surpass Lenovo by 2008. If the company achieves its goal, it would be a fitting culmination to the turnaround efforts. Pedagogical Objective To discuss whether the turnaround strategies of Acer would enable the company to surpass Lenovo to become the third-largest PC vendor by 2008.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Computer Hardware RTS0080 2006 Not Available Not Available
The Power of Spin-offs:The Case of Motorolas Freescale

There are varied reasons as to why companies opt for spinning-off their business divisions or subsidiaries. Sometimes spin-offs unlock hidden shareholder value or they are merely a means to separate a troubled unit from the parent company. In a competitive landscape, for a spun-off company to succeed as an independent entity, the timing of the spin-off and the status of the spin-off's relationship with its former parent company are important factors. Corporate history is replete with examples of spin-offs that have spectacularly failed to achieve their touted potentials. At the same time, there are those that have performed far beyond market expectations. Pedagogical Objective To highlight the reasons as to why companies opt for spinning-off their business divisions or subsidiaries.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Semiconductors RTS0077 2005 Not Available Not Available
keywords Siemens; Klaus Kleinfeld; BenQ; General Electric; Leadership style; Restructuring strategy; Germany; Europe; US; Turnaround; Management style.
Telstra, the Australian Telecommunications Company: CEO Sol Trujillos Transformational Strategic Plan
After holding a major share in the local telecommunications market in Australia, Telstra started facing competition from other mobile phone operators. To counter competition the government decided to privatise Telstra. Solomon Trujillo was appointed as the new chief executive officer of the company in July 2005 to formulate a strategy, which could enable Telstra to regain its market position. But the strategic plan announced by Trujillo was met with scepticism from analysts and politicians. Analysts were doubtful whether Telstra could accomplish the targets it set for itself. Pedagogical Objective To discuss whether the plan of action announced by Solomon Trujillo is
keywords Spin-offs, Equity carve-outs, Tracking stock; Restructuring through spin-offs; General Motors, Ford, Delphi, Visteon; AT&T, General Electric, Genpact; Strategic Rationale; Operational and financial transparency; Accountability and incentives; Shareholder value; Semiconductor Products Sector (SPS); Asset light strategy; Branding strategy; Product development strategy; Michel Mayer; Merck, Medco, McDonalds; Cendant, Viacomm.
keywords Global PC (Personal Computer) manufacturers; PC manufacturers from Taiwan; Cost control at Acer; Acer s acquisitions; Acer s international operations; Original equipment manufacturers; Asian financial crisis;
www.ibscdc.org
31
John Swainsons Turnaround of Computer Associates International Inc.: Setting IBM Standards?
In 2000-2001, Computer Associates, the third-largest independent software company in the world, was involved in a $2.2 billion accounting scandal, which led to the resignation of its Chief Executive Officer (CEO). John Swainson, an IBM veteran, was appointed as the CEO of Computer Associates in November 2004. Following a change in the name of the company to CA, with an improvement in customer relations and enhanced focus on research and development, the company witnessed an increase of 9% in its revenue for the quarter ending September 2005. Pedagogical Objectives To discuss the reasons behind the slack performance of the company and discus the accounting scandal To discuss various strategies implemented by John Swainson to turn Computer Associates around and overhaul its tainted image.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Storage and Systems Management Software RTS0076 2006 Not Available Not Available
Pedagogical Objectives To highlight the rationale behind the spin-off of Novelis from Alcan To discuss the competitive strategies of Novelis in the global rolled products business.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Aluminium Production RTS0075 2006 Not Available Not Available
turnaround would bring profits for the fashion house.

Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Fashion Retail RTS0074 2005 Not Available Not Available
keywords PPR (Pinault-Printemps-Redoute); Gucci; Balenciaga; Fashion retail industry; Tom Ford; Domenico De Sole; Nicolas Ghesquiere; Competition; Acquisitions; Expansion strategies; LVMH (Louis Vuitton Moet Hennessy).
keywords Alcan; Novelis; Spin-off; Competitive strategy; Flat-rolled aluminium market; Aluminium production; US; GM (General Motors); Mercedes; Jaguar Cars Limited; Metal price ceiling; Canada.
International Paper: John Faracis Restructuring Strategies

New York-based International Paper is the world's largest paper, and forest products company and is the worlds second-largest private landowner. However, since the early 21st century, it has been witnessing weaker demand, falling prices and its debts have increased. Despite many revival initiatives, in 2004, it incurred a loss of $35 million. In July 2005, John Faraci, the Chief Executive Officer (CEO) of International Paper announced a broad restructuring plan to boost profits and reduce debts by focusing on core businesses. Pedagogical Objective To discuss the restructuring strategies adopted by John Faraci to revive the loss making international paper.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Paper and Paper Product Manufacturing RTS0073 2005 Not Available Not Available
PPRs Balenciaga Brand: The Turnaround

Pinault-Printemps-Redoute (PPR), a multinational holding company is a major player in the French luxury goods industry. With a unique combination of various businesses, PPR emerged as a global player in the business segment. The company includes retail companies such as Printemps, Redcats, Fnac, Conforama and 10 luxury brands under the Gucci Group: (1) Gucci; (2) Yves Saint Laurent; (3) YSL Beaute; (4) Balenciaga; (5) Sergio Rossi; (6) Boucheron; (7) Bottega Veneta; (8) Bedat & Co.; (9) Alexander McQueen; and (10) Stella McCartney. It acquired Gucci in 1999, after a legal battle with Gucci's competitor LVMH (Louis Vuitton Moet Hennessy). In 2001, Gucci acquired the Balenciaga Fashion House, which was in losses then. The company was in crisis when its Creative Director Tom Ford and Chief Executive Officer (CEO) Domenico De Sole quit the company after the parent group PPR refused to grant them managerial autonomy. In 2004, the company appointed Robert Polet as Gucci's new CEO. Polet formulated a three-year strategic plan to revive the companys lossmaking brands such as Balenciaga, Yves Saint Laurent and Alexander McQueen. The company appointed Nicolas Ghesquiere as Balenciagas Creative Director. The Spring/Summer 2006 collections of Ghesquiere, were appreciated by the media as well as the fashion world. The company is expected to undergo a turnaround with profit generation and revival by 2007. Pedagogical Objectives To highlight the problems of PPR, the crisis in Gucci and the efforts of Balenciaga to revive its fashion house To discuss Balenciagas sustained efforts to gain recognition and whether this
keywords CA (Computer Associates); Computer software market; Acquisitions and licensing agreement; Accounting scandal; Sanjay Kumar; John Swainson; Turnaround strategies; US Securities and Exchange Commission; Employee compensation plan; Accounting practices; Customer relations; Global distribution and service networks; Licensing of software products; Corporate governance; Bureaucracy.
keywords International Paper; European and US economy; US dollar decline; Consumer demand; Restructuring plan; Troubled times; Competition; Competitive advantage; High material cost; Diversification; Mergers and acquisitions; Fluctuated income; Product innovations; Future of International Paper; John Faraci.
Novelis, Alcans Spin-off: Staying Competitive?

In January 2005, Alcan, the Canadian aluminium company, spun-off its rolled products business into an independent company, Novelis. The spin-off was required for Alcan to receive an antitrust approval from the European Union after its acquisition of a French company, Pechinery. Novelis supplies rolled products for use in food and beverage, can production, food packaging foils as well as automotive parts. In 2004, with customers like Jaguar, Ford, Mercedes, Reaxam and Kodak Polychrome Graphics, Novelis generated sales of $7.8 billion. However, it is mired with problems like a debt of $2.95 billion, rising energy costs and metal price ceilings in some of its sales contracts.
Canon: Fujio Mitarais Restructuring Strategies

From the early 1990s Canon, a leading manufacturer of copying machinesand cameras, witnessed a decline in its fortunes. The profitability of the company declined with several of its divisions reporting losses. To turn the fortunes of the company around, Fujio Mitarai (Mitarai) was appointed as Canon's president in 1995 and then as its CEO in 1997. Mitarai
32
www.ibscdc.org
undertook restructuring strategies, which led to Canon turning its fortunes around. Pedagogical Objectives To discuss the evolution of Canon over the years, the decline in the companys fortunes and the restructuring strategies adopted by Mitarai to turn Canons fortunes around To discuss whether Canon under Mitarai would be able to face future challenges successfully.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Printing and Imaging Equipment RTS0072 2004 Not Available Not Available
business model; Turnaround strategies; Restructuring; Competitive strategies; Peer-to-Peer (P-to-P).
To comprehend the reasons behind GMs declining fortunes To discuss whether the turnaround strategies devised by Wagoner ensure the companys survival.
ITCs Acquisition of WIMCO: The Turnaround Challenges

Indian Tobacco Company, popularly known as ITC, is the market leader in the tobacco industry in India. Ever since its inception, it focused on diversifying into other unrelated businesses that further intensified in the mid-1990s as a result of growing awareness among consumers about the harmful effect of tobacco and cigarettes. As a part of its diversification strategy, ITC also made its entry into the matchstick industry in 2002; and acquired the West Indian Match Company (WIMCO), the Indian subsidiary of Swedish Match AB, which was the largest mechanised manufacturer of match boxes in India with a market share of 13%. But during the time of acquisition, WIMCO was in losses. This helped ITC in acquiring WIMCO at a lower price than the industry expectations. However, after the acquisition, ITC is confronted with the issue of turning around WIMCO. Pedagogical Objectives
keywords General Motors (GM); Turnaround strategies; Rick Wagoner; Legacy costs; Sports utility vehicle (SUV); Cash flow negative; Non-investment negative; United Automobile, Aerospace and Agricultural Implement Workers of America (UAW); Product differentiation; Brand image; Value pricing.
keywords Cannon Inc.; Fujio Mitarai; Restructuring strategies; Economic environment; Consolidated accounting system; Conveyor belt system of manufacturing; Excellent global corporation plan; Cash flow management; Cell production system; Profit maximisation; Cost reduction; Prototype-less design; Stereolithography.
Charles Schwab: Schwabs Turnaround Strategies

Brokerage firm Charles Schwab witnessed a decline in its fortune since 2000 as a result of the companys dependence on the brokerage business for its revenues. To find new sources of revenue, the company diversified into new businesses under its then Chief Executive Officer (CEO) David Pottruck. But it continued to struggle and founder Charles Schwab was recalled to lead the company. After taking over as the CEO, Schwab undertook major restructuring steps to improve profitability. Pedagogical Objectives To discuss the strategies of Schwab in turning around the company To highlight the challenges faced by the company for sustaining its successful turnaround.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Capital Market RTS0068 2005 Not Available Available
Warner Music Group: Edgar Bronfman Jrs Turnaround Strategies

For the year 2003, Warner Music Group (WMG) reported a loss of $239 million, which the management attributed to the changed dynamics of the music industry and the resultant competition and largescale piracy. In March 2004, Seagram scion Edgar Bronfman Jr. bought WMG from Time Warner for $2.6 billion. After taking over the company, Edgar who was known for his business acumen and strategies, turned around the company in a period of just 10 months and WMG recorded a profit of $36 million for the first quarter of 2005. Pedagogical Objectives To understand the challenges faced by WMG in the highly competitive music industry To discuss the turnaround strategies of Edgar Bronfman Jr. and whether these strategies would enable WMG to show outstanding performances in the future.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Music Industry RTS0071 2005 Not Available Not Available
To focus on the business diversification strategies of ITC and its entry into the match stick industry To discuss the challenges faced by ITC in turning around WIMCO.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Matchstick Industry RTS0070 2005 Not Available Not Available
keywords Indian matchstick industry; Indian Tobacco Companys (ITC) acquisition of West Indian Match Company (WIMCO); Turnaround challenges; ITCs diversification; Synergies of acquisition.
GMs Turnaround Strategies: Will they Ensure its Survival?

Continued losses at its core North American operations had called into question the very survival of General Motors (GM). The giant automobile manufacturer was rapidly losing ground in the North American market to its nimble competitors and its brands were losing their popularity. The company also had huge legacy costs. But the companys management, led by chairman Rick Wagoner, was confident that their turnaround strategies would be successful in ensuring the survival of GM.
keywords Charles Schwab; David Pottruck; Discount brokerage; Mutual funds; Restructuring; Turnaround strategies; Growth strategies; Institutional investing; Diversification; Leadership; Competition; Cyclical revenues.
keywords Warner Music Group (WMG); Edgar Bronfman Junior; Music piracy; Music industry; On-line digital music; On-line
ABB: Fred Kindles Restructuring Strategies

From being on the brink of failure, Asea Brown Boveri Limited (ABB) was slowly turning around its fortunes. Industry experts www.ibscdc.org
33
were of the opinion that it was the companys chief executive officer, Fred Kindles (Kindle) restructuring strategies that were responsible for this turnaround. They were confident that ABB had left its troubled times behind and was on the path to healthy growth. Nevertheless, some experts believed that the company may face many troubles ahead and it was too early to conclude Kindles success. Pedagogical Objectives To highlight the turning around of ABB Ltd. from failure To discuss whether Kindle would sustain its successful turnaround in the future.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Engineering RTS0067 2005 Not Available Not Available
Millard Drexler: Turning Around J. Crew Inc.

Millard Drexler took over as the chief executive officer of J. Crew Inc. in 2003, amidst a declining market share and quality of merchandise at the stores. After he took over, Drexler withdrew all non-J.Crew merchandise from the stores and focused on repositioning the brand, targeting 2545 year olds, instead of teenagers. A premium pricing strategy was employed, which was considered a bold move in the midst of the gloomy situation. For the fourth quarter of 2004, the store sales of J. Crew increased by 17% and operating income rose to $20 million from $1 million in the last quarter of 2003. Pedagogical Objectives To discuss the reasons for the decline in sales of J. Crew To discuss the turnaround strategies adopted by Millard Drexler to revive the store sales.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Apparel Retailing RTS0064 2005 Not Available Not Available
keywords Viacom Inc. (Viacom); Media movies and broadcasting services; Largest media conglomerate; Split-up and reversal of merger; Combined entity market power synergies; Tom Freston and Leslie Moonves; Columbia Broadcasting System (CBS); CBS Corporation and Viacom merger; MTV networks and Nickelodeon; Acquisitions takeovers and mergers; Comcast, NBS Corporation, Time Warner; Sumner Redstone; Media industry deconsolidation; Opportunities and challenges; Enhanced value for investors.
PEMEX: The Mexican Oil Giants Restructuring Strategies

Petroleos Mexicanos (PEMEX) is the national oil company of Mexico, and seventh-largest oil producer and tenth largest gas producer in the world. PEMEX accounts for one-third of the Mexican governments revenues and 7% of its export earnings. But due to rampant corruption, lack of investment and political exploitation, PEMEX started losing its financial stability since 2000, despite the record-high energy prices and increasing world appetite for oil. To revive its fortunes, in mid-2003, PEMEX implemented several restructuring strategies. But the companys future is still uncertain due to its falling output, increasing debt and costs. Pedagogical Objectives To provide insights into the troubles faced by PEMEX and the restructuring strategies undertaken to overcome them To discuss the efficacy of PEMEXs restructuring strategies and its future.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Oil and Gas RTS0065 2005 Not Available Not Available
keywords Asia Brown Boveri Ltd. (ABB); Fred Kindle; ABBs restructuring; Fred Kindles strategies; ABB and the asbestos lawsuit; ABBs problems; ABB in China India and other Asian countries; ABBs corporate culture; ABB in US; Former chief executive officers of ABB, Percy Barnevik, Lindahl, Centermann, Dormann; ABBs acquisitions; ABBs turnaround; ABB in 2005.
keywords J Crew Inc.; Millard Drexler; Premium pricing strategy; Conservative inventory management; Speciality retailing; GAP Inc.; Turnaround strategies.
The Viacom Inc. Split-up: Opportunities and Challenges

Viacom Inc., one of the worlds largest media conglomerates, was built over the years through several acquisitions. One of the biggest acquisitions in the company's history was the acquisition of Columbia Broadcasting System (CBS) by Viacom in 1999. However, in mid-2005, the company decided to split up into two separate entities owing to the stagnating stock price that has been affecting the company since May 2000. Though the split-up of the conglomerate is offering potential benefits like enhanced value of the new entities, ability to acquire high growth assets and better investment opportunities for investors, it is also posing challenges like loss of market power and synergies achieved as a combined entity. Pedagogical Objectives To highlight the growth and the split-up of Viacom To discuss the viability of split-up as an option for growth for conglomerates.
Industry Reference No. Year of Pub. Media Movies and Broadcasting RTS0066 2005
Italys Electricity Giant, Enel: Paolo Scaronis Turnaround Strategies

Enel, Italys state-owned power utility, was the worlds second largest electric company in terms of installed capacity and number of consumers. It monopolised the Italian electricity markets until the deregulation of Italys power sector in the 1990s. Franco Tato, the then Chief Executive Officer (CEO) of Enel, envisaged a multi-utility company with diversified interests. With this vision, he acquired businesses in gas, water, real estate, waste treatment and telecom sectors, none of which were related to Enels core business of power generation and distribution. Franco Tato failed to extract synergies from the companys varied businesses. The results were falling share prices, and declining profit margins for Enel, and rising cost of electricity for consumers in Italy. Paolo Scaroni, architect of the turnaround at loss making British glassmaker, Pilkington PLC., was appointed the CEO of Enel in 2002. Under Scaronis leadership, Enel executed an about-turn from Tatos multi-utility strategy, divesting all non-core activities, and concentrating on electricity and gas.
keywords Petroleos Mexicanos (PEMEX); Restructuring strategies; Corruption, privatisation, liberalisation; Investment, joint venture, partnership; Reserve Replacement Ratio (RRR); Loss-making debts and costs; Crude oil production refining transport; Natural gas, oil and gas reserves; Political posturing; Incompetent managers and poor decisions; Financial stability, lack of investment; Troubled times declining revenues; Mexicos natural oil company; Taxation and economic reforms; Mexican debt crisis, Pemexgate.
34
www.ibscdc.org
Pedagogical Objectives To discuss the diversification strategies employed by Enel under Franco Tato and their effects To discuss the turnaround strategies employed by Paolo Scaroni for the companys profitability and to redefine its strategic focus.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Electricity and Power Services RTS0063 2005 Not Available Not Available
consumers; Restructuring plans and strategies; Acoustic lenses; Focused product design and marketing; Overcrowded competition; Revolutionary products with simple functionality; The Archimedes Project; B1 exclusive B&O franchisees; Technology sharing partnership; Dismal financial performance; Ineffective distribution channels; National custom design programme; Outreach Customers & Partners Programme.
To provide an insight into the reasons behind the downfall of the Japanese video game publishers To discuss the turnaround strategies being under taken by the Japanese video game publishers and whether they would be able to regain their leadership.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Video Games RTS0060 2005 Not Available Not Available
keywords Ente Nazionale per lEnergia Ellettrica (Enel); Electricity generation and distribution; Monopoly and state owned company; Turnaround strategies; Restructuring plan; Franco Tato and Fulvio Conti; Unrelated diversifications and expansions; Paolo Scaroni; Electricity, water, gas, telecommunications; Lost business focus and poor decisions; Troubled times and leadership change; Mergers and acquisitions; Liberalisation and deregulation; Turnaround specialist; Divestments and spin-offs.
Piaggio: The Italian Scooter Manufacturers Turnaround Strategies

After a spate of losses since 2000, Piaggio recorded its first net profit in 2004. Under Roberto Colaninno, who took over as the Chairman in October 2003, Piaggio implemented radical cost-cutting measures, and along with the introduction of new products, the company was able to mark a recovery in almost all its markets across the globe. Pedagogical Objective To highlight the strategies adopted by Piaggio to recuperate from its financial downturn and claim its lost business in the global two wheelers market.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Motorcycle and Other Small Engine Vehicle Manufacturing RTS0061 2005 Not Available Not Available
keywords Japanese video game publishers; Nintendo; Electronic Arts Inc.; Leading video game publishers; Turnaround strategies; Falling fortunes; Video game industry; Loss of market share; Video game console; Sony PlayStation; Arcade games; Console games; Profile of average gamers; Mergers and acquisitions; Video games for mobile phones.
Electronic Data Systems Corp. (EDS): Turnaround Strategies

Electronic Data Systems Corporation (EDS), was the second-largest global provider of information technology and Business Process Outsourcing (BPO) services in diverse fields such as financial services, manufacturing, healthcare, communications, energy, transportation, consumer and retail industries. However, since 2001 the company has been experiencing fall in profits due to lossmaking mega contracts, increased competition, reduced number of new contracts and a Securities and Exchange Commission investigation. To turnaround the company, the new Chief Executive Officer (CEO), Michael Jordan, initiated several strategies. Pedagogical Objectives
Bang & Olufsen: The Danish Highend Audio Makers Restructuring Strategies
Bang & Olufsen (B&O) is a Denmark-based high-end audio-video equipment maker. From a humble beginning in 1925, B&O has grown into an international company known for its high quality and innovative products. But during the 1980s, rising competition coupled with inefficient management and economic crisis resulted in severe loss in the revenues and market share of the company. A restructuring plan implemented in the early 1990s did not achieve the desired results. In 2001, the new Chief Executive Officer, Sorensen, initiated another restructuring plan based on global expansion, focused product design and aggressive marketing strategy. Pedagogical Objectives To highlight the rise and fall of B&O over the decades To discuss the restructuring strategies of B&O and whether these strategies would ensure a successful future for B&O.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Audio Video Electronics RTS0062 2005 Not Available Not Available
keywords Piaggio; Vespa; Roberto Colaninno; Turnaround; Recession; Morgan Grenfell Private Equity; Immsi; Debt-for-equity; Chongqing Zongshen Motorcycle Group; Piaggio Vehicles; Aprilia; Rocco Sabelli.
Falling Fortunes of Japanese Video Game Publishers: The Turnaround Strategies

Ever since Nintendo launched its family computer for the US market in 1985, the Japanese video game publishers had dominated the global video game industry. But since the late 1990s, they had been losing market share to their western counterparts, especially in the crucial US market. To turn around their fortunes, the Japanese publishers have initiated several steps since 2003. Pedagogical Objectives To understand the profile of the video game industry and the evolution of the Japanese video game industry
To provide insights into the reasons behind EDS troubles and highlight the efforts of the new CEO in turning around the company To discuss the efficiency of the strategies and the potential threats faced by the company.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Information Technology Services RTS0059 2005 Not Available Not Available
keywords Electronic Data Systems Corp. (EDS); Information technology services; Business process outsourcing services; Turnaround strategies; Restructuring plan; Michael Jordan and Richard Brown; EDS Agility www.ibscdc.org
keywords Bang & Olufsen (B&O); High-end audiovideo equipment maker; Fashion conscious
35
Alliance; AT Kearney and Tower Perrin; Loss-making mega contracts; Incompetent managers and poor decisions; General Motors; Structural problems and cultural clashes; Computer services and software; Turnaround specialist divestments and spinoffs.
(Chief Executive Officer) Brenda Barnes announced a major restructuring strategy. Pedagogical Objectives To highlight the diversification strategies of Sara Lee, by shifting consumer preference towards low price and low-calorie foods, and increasing the trend of private label brands To understand the reasons for the failure of Sara Lees previous restructurings and its future challenges.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Food and Apparel RTS0057 2005 Not Available Not Available
Airlines (4) the leadership of Herb Kelleher (5) and the employee empowerment of Southwest Airlines in achieving success in the highly competitive Airlines industry To discuss the changing cost structure and corporate culture of Southwest Airlines.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Airlines RTS0056 2005 Available Available
Siemens: The Challenges of Leadership Change

After 12 years at the helm of affairs of Siemens AG, Heinrich von Pierer, who was considered one of Germanys top managers and was credited with transforming the 157-year-old electronics and electrical engineering conglomerate into a powerful global player, stepped down from the chief executive position in January 2005. In place of Heinrich von Pierer, Klaus Kleinfeld, CEO (Chief Executive Officer) of Siemens US unit, was appointed as the new CEO of the company. Though the company was in a good financial state, some of its prominent business units like the mobile handset unit and Siemens Transportation Systems were incurring heavy losses. Pedagogical Objectives To understand the leadership styles of Heinrich von Pierer and Klaus Kleinfeld To discuss as to which approach would be adopted by Kleinfeld, the American approach or the consensus-driven German management style in turning around Siemens AG.
keywords Southwest Airlines; Leading low-cost airline; FORTUNEs most admired companies; Triple Crown award; Herb Kelleher; Strategic advantages; Business model; Hub-and-spoke system; Point-topoint airline network; Corporate culture; The Southwest Airlines way; Competitive advantage; Lowest cost structure; LUV airline; Changing employee attitude.
keywords Sara Lee Corporation; Restructuring strategies; Diversification strategies; Brenda C Barnes; Branding strategies; Brand portfolio; Brand extension; Apparel industry; Food and beverage industry; Loss of focus on key brands; Huge portfolio of brands; Consumer behaviour; Global conglomerate; High-quality branded products; Continuous restructuring programmes.
NVIDIA: The Graphic Chipmakers Turnaround Strategy

NVIDIA Corporation (NVIDIA), a global leader in manufacturing graphic processors, failed to deliver its most ambitious graphic processing unit, NV30, to the market as per schedule in 2002. Besides, NVIDIAs tussle with Microsoft and an accusation against NVIDIAs employees of insider trading added to the companys woes. From $11 billion in January 2002, NVIDIAs market value fell to $1 billion by October 2002. However, having learnt from its mistakes and with a focused turnaround plan, NVIDIA was back into its leadership status by early 2005. Pedagogical Objective To highlight NVDIAs turnaround strategy to emerge as a leader in the global chip market.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Graphics, Video Chips and Boards RTS0055 2005 Not Available Not Available
Southwest Airlines: The Changing Cost Structure and Corporate Culture

Southwest Airlines, the largest domestic passenger airline with the highest market capitalisation in the US airline industry, has been the only airline in American history to have recorded profits for 32 consecutive years since its inception in 1971. Southwest relied on a unique business model of low cost no frills high customer service and leveraged its human resources effectively to achieve extraordinary success. Southwest had been in the top ten list of FORTUNEs Most Admired Companies every year since 1998. Southwest had sustained the success and its position even when the whole airline industry plunged into losses after the 9/11 terrorist attacks and also withstood the competition from a horde of airlines, which tried to replicate its strategies and business model. But since 2002, Southwest also had been caught up with the general troubles associated with the other airlines higher cost structure, changing consumer attitude, infrastructure bottlenecks, and changing corporate culture. Pedagogical Objectives To understand (1) the evolution of Southwest as successful airline in America (2) The business model of Southwest Airlines (3) the strategic and competitive advantages of Southwest
keywords Siemens; Klaus Kleinfeld; Heinrich von Pierer; Top or time-optimised processes; 10-point Programme; Siemens under Heinrich von Pierer; Operation 2003; Siemens Management System; USmanagement style; Siemens Transportation Systems; Telecommunications unit; Medical solutions; Leadership change; American leadership style; Challenges of leadership change.
Sara Lee Corporation: Brenda C Barnes Restructuring Strategies

Sara Lee is a global manufacturer and marketer of high-quality, high-profile branded consumer products. But the company had been recording flat growth since the early 1990s. Continuous restructuring to revive its fortunes had failed. In February 2005, its new CEO
keywords NVIDIA; NVIDIAs GPU (Graphic Processing Unit); NVIDIAs product cycle; Worldwide graphic chip market; Microsofts Xbox; NVIDIAs price dispute with Microsoft; NVIDIAs challenges; NVIDIAs turnaround plan; Jen-Hsun Huang; NVIDIAs competitors; NVIDIAs market share; Insider trading.
36
www.ibscdc.org
Nestle: The Organizational Transformation

In nearly 140 years of existence, Nestle had grown from a small baby food manufacturing house in Vevey, Switzerland, to the worlds largest food company, operating in 86 countries and with more than 500 factories spread across the globe. Nestle owns some of the world's best selling brands in instant coffee (Nescafe), baby food (Cerelac), bottled water (Perrier) and pet care (Friskies). The company's growth strategy through acquisitions resulted in an unwieldy empire, lower profit margins and a negative response from stock markets. To accelerate profits without a slow down in growth, chief executive officer, Peter Brabeck, initiated a transformation of the organisation, which analysts felt was akin to moving a mountain. Pedagogical Objectives To understand the business model of Nestle and the conditions in which its organisational transformation took place To discuss as to how and whether Nestle could be transformed.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Food and Beverages RTS0054 2005 Not Available Not Available
Pedagogical Objectives To discuss the restructuring activities adopted by Deromedi to make Kraft competitive To discuss the opportunities and challenges faced by Kraft in the changing food market.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Food RTS0053 2006 Not Available Not Available
keywords Kraft Foods Inc.; Private label brands; Roger K Deromedi; Low price; Low calorie foods; Philip Morris Companies (Altria Group); Restructuring; Nabisco Holdings; Food and beverages business; Competitive advantage; Product innovations; Diversification; Oscar Mayer meat brand; Marketing and promotion strategy; Sustainable growth plan.
has come a long way in shaping up Thailand's industrial sector. The company was on an expansion bid when the Asian financial crisis hit the region in 1997. Thailand, being one of the worst hit countries, saw the devaluation of the baht, the Thai currency, and thereby the collapse of the economy. To survive the blow, Chumpol NaLamlieng, the President of Siam Cement, formulated restructuring strategies. Their implementation helped the company survive and gradually move towards profits. By 2004, with a stable external economy and growing internal profits, the company was moving ahead towards achieving Chumpol's vision of turning the company into a regional leader and the ASEAN (Association of South East Asian Nations) region into a leading industrialised area. Pedagogical Objectives To understand (1) the evolution of SCG (2) the impact of the Asian financial crisis on Thai industries To discuss the competitive strategies adopted by Chumpol NaLamlieng, and his vision for the future of the company, Thailand and the ASEAN region.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Cement, Paper and Petrochemicals RTS0051 2005 Not Available Not Available
Deutsche Bank: Ackermanns Restructuring Formula

Josef Ackermann, the chief executive of Deutsche Bank, had set a high target of a 25% return on equity in 2005 in order to transform his institution into one of the best banks in the world. Despite the banks failed mergers with Citigroup, Germanys Postbank and Credit Suisse First Boston and its stock plunging by 6.9% in 2004, Ackermann was confident that the bank would be able to deliver its set targets. Pedagogical Objective To discuss the restructuring of the Deutsche Bank under the leadership of Ackermann.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Money Centre Banks RTS0052 2005 Not Available Not Available
keywords Nestle; Largest food company; Nescafe; Cerelac; Decentralised operational model; Organisational transformation; Business model; Nestle empire; Mergers and acquisitions; Peter Brabeck; Henri Nestle; Misguided diversification; Food industry consolidation; Centralised management model; Global Business Excellence Resource Planning System (GLOBE)
keywords Siam Cement Group (SCG); The Asian financial crisis; Thailand; Industrial conglomerate; Restructuring strategies; Association of South East Asian Nations (ASEAN); Divestment of non-core business; Thailands industrial powerhouse; King Rama VI; A white elephant in a hexagon; Kingdom of Siam; Crown Property Bureau; Asian market leader; Chumpol NaLamlieng; Devaluation of baht.
Kraft Foods in Crisis: Roger K Deromedis Restructuring Strategies

Kraft Foods Inc. is a leading confectionery, food and beverage company. Since 2001, it has been losing out to cheaper store brands, private label brands and competitors, due to consumer preference towards low-priced and low calorie foods. A lack of new products, the exit of top executives and a failure to supply what retailers wanted were also troubling the company. The parent company, Philip Morris, began pressurising Kraft Foods for a possible spin-off. In January 2004, chief executive officer Roger K Deromedi announced a restructuring plan aimed at trimming non-core brands, focusing only on blockbuster brands and re-fashioning the product line up.
keywords Deutsche Bank; Josef Ackermann; German banking industry; Restructuring strategies; Money machine; Investment banking; Universal bank; European banks; Euro effect; Single market programme.
Parker Hannifin Corporation: Donald Washkewiczs Turnaround Strategies

Parker Hannifin Corporation is one of the world's leading motion and control technologies and systems manufacturers. It provides precision-engineered solutions to commercial, mobile, industrial and aerospace markets. When the industrial recession set in during 2001, the company was faced with huge amounts of excess capacity and high costs. The companys chief executive officer, Donald Washkewicz, introduced lean manufacturing throughout the company. This helped it change its operational structure, resulting in decreased overheads,
Thailands Siam Cement Group: The Conglomerates Resurgence from the Asian Crisis
Siam Cement Group (SCG), Thailands largest industrial conglomerate, is the Asian market leader in many diversified businesses. Siam Cement was established by King Rama VI in 1913 and since then it
www.ibscdc.org
37
reduced inventory and shorter lead times, thereby ensuring enhanced teamwork and increased profits. Pedagogical Objective To discuss as to how parker Hannifin Corporation converted adversities into advantages under the leadership of Donald Washkewicz.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Motion and Control Systems RTS0050 2005 Not Available Not Available
Neckermann and Quelle brands; Reorganisation; Europes largest mail order groups; Restructuring strategies; Discount chains; Family-run business; Diversification strategy; Pricing strategy; The Intercontinental Department Store Group; Mismanagement; Competitive strategies; Turnaround.
Dell in China: The Strategic Rethinking

Dell, the worlds largest computer seller, started focusing on China in 1998. Its market share in China rose from less than 1% in 1998 to 7.4% in 2004. Dell has focused on low-end PCs and aggressively targeted state-owned large enterprises and individual consumers, where profit margins are typically lower, while other players focused on high-end PCs and targeted corporates and business consumers. But due to heavy competition from the local PC vendors, Dell decided to change its strategy by shifting its focus from low-end consumer PCs to high-end products like servers and storage systems for corporates and businesses. Pedagogical Objectives To discuss the expansion strategies of Dell in Chinal To discuss the strategies it adopted while facing competition from the local players.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. PC and Software Vendor RTS0048 2005 Not Available Not Available
keywords Parker Hannifin Corporation; Largest motion and control systems company; Fluid system components; US economic recession; Airconditioning systems; Donald Washkewicz; Lean manufacturing system; Turnaround strategies; Win strategy; Industrial recession; Pricing strategy; Strategic procurement goal; Cellular manufacturing; Competitive strategies; Precision-engineered solutions.
stock market crash and corpus erosion in its fund management business. The changing circumstances and increasing competition required aggressive fund management and innovative investment banking which further required expertise and funds. Failing to generate enough revenue to attract fresh talent and structure new products, Cazenove started looking for alliances which could provide the required competence while preserving its independence. After some deliberations Cazenove formed a joint venture with JP Morgan, which was providing it with both independence and competence. But the deal generated apprehension among its clients and some of them were contemplating severing long-standing relationships with Cazenove. Pedagogical Objectives To highlight the journey of Cazenove in restructuring its operations To discuss whether the strategy had adopted to overcome its problems was a rational decision or a mistake committed in haste.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Financial Services RTS0047 2005 Not Available Not Available
KARSTADTQUELLE: The German Retail Giants Restructuring Strategies

KarstadtQuelle, one of Europes largest department store and mail order groups, represented 50% of the German market share in this business. In 2000, the company shifted away from general retailing towards more specialised sectors such as fashion apparel and sports to attract additional foreign customers. It further diversified into new businesses such as financial services, tourism and mail order. But mismanagement and weak consumer demand in Germany began hurting the companys core activities, resulting in severe structural problems and a collapse in earnings. To revive its fortunes, KarstadtQuelle began restructuring its operations. Pedagogical Objectives To discuss the reasons for the problems faced by KarstadtQuelle and the restructuring strategies it adopted to turnaround To discuss the challenges ahead for the retailing giant.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Retailing RTS0049 2005 Available Not Available
keywords Cazenove Group Plc.; David Mayhew; Financial advisory; Investment banking; Corporate broking; JP Morgan; Lehman Bros; Restructuring strategies; Failed Initial Public Offer (IPO); Mergers and acquisitions; Investment research; Foreign financial institutions; Britains blue-chip companies; Joint venture; Structured finance market.
keywords Dell Inc.; Michael Dell; China; Worlds largest computer vendor; PC market share; Growth strategy; Chinese PC vendors; Online sales; High-end PC market; Low-end PC market; Market share; Pricing strategy; Target consumers; Competitive strategies; Brand management.
McDonalds Plan To Win Strategy: The Payoffs

McDonalds had been recording declining profits since 2001. Although turnover was increasing, there was a continuous decrease in its operating profit and net profit margins. To turnaround its fortune, the company adopted the Plan To Win strategy in 2003. The main purpose of the strategy was to bring about improvement in the companys performance by building it around five key drivers of customer experience People, Product, Price, Place and Promotion; and by identifying opportunities on the basis of the four basic aspects of its mission statement Quality, Service, Cleanliness and Value. The strategy was also based on what McDonalds considered as three essential components of success Operational Excellence, Leadership Marketing and Innovation.
Cazenove Group Plc.: British Financial Firm's Restructuring Strategies

Cazenove Group Plc., the oldest and largest British financial services firm, serves a client base comprising of top UK-based companies. Since its inception in 1823, it had operated independently and discreetly, much to the approval of its clientele, dealing with fund management and investment banking, besides providing corporate finance advisory, securities distribution and research services. The firm ran into rough weather in 2003 due to the
keywords KarstadtQuelle; German retail market; Europes largest department store chains;
38
www.ibscdc.org
Pedagogical Objectives To discuss the efficacy of the Plan to Win strategy To discuss the solutions for challenges plaguing the fortunes of the firm.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Fast Food Retailing RTS0046 2005 Available Not Available
keywords McDonalds Corporation; Plan to Win; Operational excellence; Innovation; Leadership marketing; People Vision; People Promise; Mission statement; Fast food; Obesity; Jim Cantalupo; Charlie Bell; Im lovin it ad campaign; Best Quick Service Restaurant; McCafe.
World Trade Centre was a severe blow to the entire airline industry, pushing many companies to the verge of bankruptcy. Delta was one such company which was severely affected, incurring losses for three subsequent years 2001, 2002 and 2003. The company was on the verge of filing for Chapter 11 bankruptcy protection in 2004. To save the struggling airline, the companys new CEO, Gerald Grinstein formulated Delta solution. But the implementation of the solution depends on the cost concessions to be offered by the Pilot Association and a host of other factors. Pedagogical Objective To discuss the restructuring strategies formulated by the CEO to save the company and its future that is dangling between bankruptcy and transformation.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Airlines RTS0044 2004 Not Available Not Available
keywords
Interstate Bakeries Corporation; Alvarez & Marsal; A&Ms turnaround formula; Tony Alvarez; Wonder Bread; Low carb food products; Atkins; Extended shelf life; Interstate Bakeries filing for bankruptcy; Home Pride carb action; Hostess twinkies.
Televisa: The Turnaround Strategies of Emilio Azcarraga Jean

When Emilio Azcarraga Jean took over the reins of Mexico-based Grupo Televisa, the worlds largest Spanish-language media conglomerate, in 1997, investors raised doubts as to whether the then 29-year-old scion would be able to carry on the daunting task of turning around the media conglomerate. At that time, the company's revenues were stagnant, it was characterised by a bloated management structure and intense competition. However, Jean proved his critics wrong. By focusing on lowering costs, improving production and changing the work culture, Jean, in a span of six years returned the company to profitability with revenues of $2.3 billion and profits to the tune of $350. Pedagogical Objectives To discuss the initiatives taken up by Emilio Azcarraga Jean to bring back the lost glory of Televisa To discuss the future plans of Jean for the further growth of the company To discuss TTSLs ambitions to become a popular brand by focussing on the companys initiatives towards offering its subscribers more value and less costs.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Media RTS0042 2004 Not Available Not Available
Hynix: The South Korean Chipmakers Restructuring Strategies

South Korean chipmaker, Hynix, was severely hit by the downturn in the countrys semiconductor market with a debt of six billion won in 2002. However, Hynix managed to extricate itself from its financial troubles and restated profits in the third quarter of 2003. Despite profits, Hynix was accused of various allegations by competitors as they considered the bank bailouts being provided to the company as an unfair government subsidy. Pedagogical Objective To discuss the restructuring strategies adopted by the company and the challenges being faced by it in the competitive market for semiconductors.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Memory Chips and Modules RTS0045 2004 Not Available Not Available
keywords Delta Air Lines; Gerald Grinstein; CE Woolman; 9/11 attack on New York's World Trade Centre; Restructuring strategies; Delta solution; Pilot concessions; Delta - ACES; Transformation plan; Chapter 11 bankruptcy protection; Profit Improvement Initiatives (PII); Airline industry; Strategic cornerstones; Hub and spoke system; The Airlines Pilot Association
A&Ms Turnaround Formula for InterstateBakeries Corporation: The Testing Times

The largest bakery company in the US, Interstate Bakeries Corporation (IBC) had been operating successfully with popular brands like Wonder Bread and Hostess cakes, since the late 1920s. However, IBC had been reporting stagnated sales and its net income had been falling since 1999 owing to competition from manufacturers of low-carb food products like Atkins, and increased operational costs. In 2004, the company filed for bankruptcy reporting a debt of $1.320 billion. Pedagogical Objectives To discuss the factors leading to IBCs tryst with bankruptcy
keywords Televisa; Emilio Azcarraga Jean; Televisa 2000; Univision Communications; Emilio Azcarraga Milmo; El Tigre; TV Azteca; Grupo Televicentro; Clear Channel Communications; Institutional Revolutionary Party; The tequila effect; Telemundo Communications Group Inc; US Hispanic TV market; Telesistema Mexicana; Sky Entertainment Services.
keywords Hynix; Hyundai Electronics Industries; South Korea DRAM (Dynamic Random Access Memory) market; Hynix bailout packages; LG Semicon; Hynix restructuring plan; Export duties on Hynix DRAM; World DRAM market; Hynix blue chip technology.
Delta Air Lines Inc.: Restructuring Strategies

Delta Air Lines, one of the largest airlines in the world, with a vast domestic and international network is known for its safe and reliable transportation. The September 11th 2001 terrorist attack on New Yorks
To discuss the challenges faced by A&M in turning around IBC.

Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Bakery Products RTS0043 2004 Not Available Available
Volkswagen: Bernd Pischetsrieders Turnaround Efforts

Volkswagen has been Europes leading carmaker with many successful models. However, the company seemed to be losing
www.ibscdc.org
39
ground since 2002, witnessing stagnant sales and declining profits. The company is besieged with problems on many fronts: (1) labour problems; (2) ageing models; (3) brand cannibalisation due to overlapping models; and (4) increased competition. Bernd Pischetsrieder, who succeeded Ferdinand Piech as chairman, initiated efforts to turnaround the company. Pedagogical Objectives To discuss the reasons for the decline in the companys performance To discuss the turnaround efforts of Bernd Pischetsrieder.
Competition; Rural marketing; Personal care business; Business strategy; Malvinder Singh Banga; CK Prahalad; New business initiatives.
keywords Business segments of Tyco; Market capitalisation of Tyco; Accusations against Tyco; Losses of Tyco; Revival of Tyco; Timeline of Tyco International; Tycos growth through acquisitions; Divisional structure of Tyco International; Segment wise revenues of Tyco; Debts of Tyco.
US Airways: The Tryst with Bankruptcy

In 2004, following unsuccessful negotiations with labour unions on wage concessions, US Airways, Americas seventh largest airline, filed for bankruptcy for the second time since 2002. This time, the airline aims to repeat the success of the 2002 restructuring and emerging as a low-cost airline. Pedagogical Objectives To discuss the reasons for the bankruptcy of US Airways To discuss the restructuring strategies it adopted, to recover from its poor financial health.
Matsushita Electric Industrial Company: The Restructuring Strategies

By the end of the 1990s, Matsushita Electric Industrial Company was hit by rapid changes in the domestic as well as the global electronics market. In 2003, it had a loss of 19.5 billion. However, by 2004, the company had an operating profit of 195.5 billion. Pedagogical Objective To discuss the restructuring strategies adopted by Matsushita that paved the way for the future growth of the company.
keywords Volkswagen; Bernd Pischetsrieder; Brand cannibalisation; Overlapping models; Ferdinand Piech; Labour problems; Ageing models; Turnaround.
Hindustan Lever Limited: The Organizational Restructuring

Hindustan Lever Limited (HLL), the largest FMCG (Fast Moving Consumer Goods) company in India, was struggling to increase its business by the late 1990s. To kick-start growth, HLL trimmed its brand portfolio of 110 brands to 30, initiated new business ventures and relaunched all its brands. But being caught up in price wars with its arch rival Procter & Gamble negated the gains it achieved. In March 2004, HLL announced a major top management reshuffle and reorganised its business portfolio under two divisions. The company officials maintained that the strategy was to provide a sharper focus on key brands and categories and to simplify the organisational structure. Pedagogical Objective To discuss the organisational restructuring at HLL and whether HLL would eventually pull itself out of the growth rut.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Personal Care Products RTS0040 2004 Available Available
keywords The US Civil Aviation industry; Low-cost carriers in the US; The weak American economy after September 11 th 2004; US Airways bankruptcies; Labour unions of US Airways; Negotiations with the labour unions of US airways; Key components of the transformation plan of US Airways; Airlines that have filed for bankruptcy post 1978; Star Alliance network; US airways successful recovery from the first bankruptcy.
keywords Global electronics manufacturers; Progress 2000 plan; Value creation 21; Corporate Panasonic marketing division; Profile of the world electronic industry; ChinaMatsushitas low-cost manufacturing destination; Mergers and alliances of Matsushita; Brands of Matsushita; Sales of Matsushita products by category; Deconstruction and creation; New business segments of Matsushita; New consumer sales structure of Matsushita in Japan; Matsushitas concept of groupwide business and organisational restructuring; New management structure of Matsushita.
Tyco International Ltd.: The Revival Strategies

Tyco International Limited (Tyco), one of the 20 most valuable companies in the US, was accused of corporate fraud in 2002. Its top management was accused of misusing the companys loan system and misrepresenting the companys financial status. In the same year, the companys stock lost a total of $90 billion. Pedagogical Objective To discuss the revival strategies adopted by Tyco to improve its operational efficiency and reclaim its leadership position in the US market.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Electronics, Security, Plastics RTS0038 2004 Not Available Not Available
Humana Inc.: Turnaround of a Health Insurer

Louisville-based health management company, Humana Inc., ran into difficult circumstances in the late-1990s due to the rising health care costs of its employees in the US. The troubles were further aggravated as various class action lawsuits were filed against it on the grounds that the company had misrepresented its health care plans to its customers. The arrival of the new CEO, Michael P. McCallister, marked a turnaround for Humana and earnings increased significantly in 2003. Humana chose a consumer-centric approach and a strong IT infrastructure as
keywords Hindustan Lever Limited (HLL); Unilever; FMCG (Fast Moving Consumer Goods); Organisational restructuring; Organisational structure; Project millennium; e-Tailing; Power brands;
40
www.ibscdc.org
the two growth drivers to ensure its success in commercial and government business segments. Pedagogical Objective To discuss the different strategies adopted by Humana to become the leading health services company in the competitive US market.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Health Care Insurance RTS0036 2004 Not Available Not Available
appliances industry; Mergers and acquisitions; Eureka; Michael Treschow; Research and development; Marketing strategy; Hans Straberg; White goods producers; Market segmentation.
To understand the reasons for the failure of the two companies in realising the expected synergies of the merger To discuss the restructuring initiatives of John F. Miller to revive the companys fortunes.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Media and Telecommunications Services RTS0033 2004 Not Available Not Available
BP: Organisational Restructuring and Evolution of a New Corporate Identity

By 2004, BP (British Petroleum) had transformed itself from a typically oldfashioned British company to an aggressive corporate entity to become the second largest company in the world, with operations in more than 70 countries. BPs transformation into a successful energy company in the 21st century can be traced back to its restructuring in the 1990s under the stewardship of its CEO, Lord David Browne. Radical changes in BPs organisational culture, the knowledge sharing initiatives and its focus on being an environmentally conscious energy provider, have all contributed to the corporate transformation. Pedagogical Objective To discuss BPs restructuring initiatives to bring about a change in its corporate identity.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Energy and Utilities RTS0034 2004 Not Available Not Available
keywords Humana; Health Maintenance Organisations (HMO) in the US; Rising health costs in the US; SmartSuite; Personal nurse; TRICARE; HumanaCoverage-First PPO; Health care plans; Medicare advantage; Smart Assurance; A competitive landscape of the US HMO market; Potential of health insurance business in the US; Difference between nursing homes and hospitals; Growth of the HMO industry in the US; Lawsuit allegation against Humana.
keywords America Online, Time Warner; Restructuring strategies; US Securities and Exchange Commission (SEC); Mergers and acquisitions; Inorganic growth; Media and telecommunications services; Internet service providers; Growth strategies; Premium narrowband, broadband service; Jonathan Miller; Robert Pittman; Market capitalisation; Competitive strategy.
AirTran Airways: The Turnaround

AirTran, which was started in Orlando in 1994, started reeling under losses after the Atlanta-based low cost airways ValuJet, acquired it in 1997. In 1998, it incurred losses of $41 million and failed to compete with traditional carriers like Delta and US Airways. By January 1999, the airline had only $10 million that could keep it afloat for a few weeks. However, under new management, AirTran saw significant growth and was named as the best lowfare airline in 2004 by the Entrepreneur magazine. Pedagogical Objective To discuss the revival strategies of AirTran airways between 1999 and 2004 under the leadership of its CEO, Joe Leonard.
Electrolux: Reinventing Operations in North America

In 1968, Electrolux AB had sold its US manufacturing facilities and the rights to use the brand name in North America and Canada to Consolidated Foods. Since then, it had operated under a slew of other brand names like Eureka, Frigidaire, WhiteWestinghouse and Weed Eaters, while the well-known Electrolux vacuum cleaners in the US were manufactured and marketed by a company called Aerus. In 2000, under its global strategy to integrate all its brands under the brand name of Electrolux, Electrolux AB bought back the rights to use its name in the US from Aerus, by paying $50 million. But, there was confusion as to which were the real Electrolux AB brands and which were the Electrolux brands from Aerus. Pedagogical Objective To discuss the branding and positioning challenges faced by Electrolux AB as it reinvented its operations in North America.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer Durables and Appliances RTS0035 2004 Not Available Not Available
keywords BP (British Petroleum); Organisational restructuring; Corporate culture; Organisation culture; Change in corporate structure; Work culture; BP identity; BP transformation; Change in culture; Knowledge management; Green image.
America Online: The Restructuring Strategies

In the early 21st century, the technology sector experienced a significant number of mergers and acquisitions among the old and new economy companies. The merger of America Online (AOL), Americas largest Internet service provider with the media giant Time Warner, in 2001, was considered as one of the largest mergers in the technology sector. However, the merger failed to deliver the desired synergies. AOL, one of the subsidiaries of the merged entity, Time Warner, was the worst affected and it continued to experience a decline in the customer base. Jonathan F. Miller, who took over as CEO in August 2002, the third in a period of four months, implemented certain measures to revive the company.
keywords AirTran; ValuJet; Low cost airlines in the US; Cost management at AirTran; Key success factors of low-cost airlines; Employee management at AirTran; Advertising strategy of AirTran; Marketing strategies of AirTran; Multitasking at AirTran; Differentiation strategies of AirTran; Joe Leonard; Market share of major US airlines.
keywords Electrolux AB; Global branding strategy; Branding strategy; Consumer durables and
www.ibscdc.org
41
AirTran Airways: Leonards Future Growth Plan

AirTran Airways was the second-largest low-cost, lowfare airline in the US (after Southwest) and was one among the few that was profitable even after September 11. While the majors collectively lost $5 billion in 2003, AirTran increased its profits from $10 million in 2002 to $100 million in 2003. Unlike most other prominent Low Cost Carriers (LCC) such as Southwest and JetBlue, AirTran targeted business travellers with business class seats, and operated via a hub and spoke system. Pedagogical Objectives To discuss the genesis of the airline, the strategies employed for growth, and the future amid increasing competitive pressures To discuss the following points: (1) the unique model employed by AirTran for its growth and the difference between its model and that of the majors and the LCC; (2) the product development strategy used by AirTran to attract business travellers; and (3) the challenges that might be faced by AirTran due to its fast growth and the nature of competition.
keywords Japanese automobile manufacturers; Honda; Toyota; Nissan; Mazdas sports car heritage; Millennium plan of Mazda; Domestic sales of Mazda; New models from Mazda; History of Mazda; Brand strategy of Mazda; Mazdas turnaround.
labour unions leading to constant government intervention and a lack of any research and development and innovation policy. Pedagogical Objectives To discuss the reasons for the decline of the company and the turnaround strategies that have been implemented since 1999 To understand the various factors that have resulted in the failure of the turnaround strategies.
Janus Capital Group: The Revival of the American Mutual Fund Company
With the revelation of the mutual fund scandal in the US in 2003, Janus Capital Group, a major player who had half of the US total investments in growth funds, was hit hard with huge fund outflows. Moreover, Janus was also charged with unethical and illegal trade practices. Although it spent $226 million to settle the charges, investors had lost their faith in the company. To rebuild its brand image, the leadership of the company was handed over to Steven L. Scheid and Gary Black, two veterans from the financial services industry. Pedagogical Objective To discuss the strategies adopted by Janus Capital Group to win back investor confidence in the backdrop of the mutual fund scandal in the US.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Mutual Fund Management RTS0029 2004 Not Available Not Available
keywords Agnelli family; Diversification of the Fiat Group; Bankruptcy; Luca Di Montezemolo; Inflexible production lines; Dependence on single model; Government intervention; Turnaround efforts.
Delta Air Lines: Grinsteins Restructuring Challenge

During 2001-2003, Delta Air Lines (Delta) had cumulatively lost $3.3 billion, in sync with industry losses of $21 billion. Delta had laid off 16,000 employees and had cut capacity by 16%. To improve revenues, Delta had strengthened its alliances with its regional Delta Connection partners and international partners through 'SkyTeam'. The airline had also leveraged technology through its Delta Nervous System (DNS) to cut costs and improve productivity. In addition, to compete with the Low Cost Carriers (LCC), the company had launched Song, a low cost subsidiary in select markets. In spite of these initiatives, it posted losses of $383 million in the first quarter of 2004 due to high labour costs as its pilots were the highest paid in the airline industry. Having failed to get the required concessions from the pilots, Leo Mullin, the CEO of Delta, resigned and Gerald Grinstein took over in January 2004. After taking over, Grinstein announced a complete strategic assessment of the airline. Pedagogical Objectives To discuss the various problems faced by the company and the choices it needs to make a return to profitability To discuss the strategies adopted by Delta to lower its costs and the advantage it derives from DNS To discuss the challenges Delta faces due to its high labour costs and increasing debt
keywords AirTran; US airline industry; ValuJet; Joseph Leonard; Low-cost carriers; Pointto-point flights; Hub and spoke model; Deep discount fares; A-Plus rewards programmes; Product improvements.
keywords Mutual fund industry in the US; Mutual fund scandal in the US; Janus Capital Group; Market timing; Late trading; Canary Capital; Mutual Fund Reform Act; Stilwell Financial; Morningstar ratings; Winning investor confidence in mutual funds; No load funds; Growth of mutual funds in the US; Investment Companies Act of the US.
Mazdas Magical Turnaround

Mazda, Japans fifth-largest automaker, witnessed a consistent decline in its revenue in the 1990s. During 2000-2001, its loss touched a record $1.2 billion due to an oversized workforce, unsuccessful growth initiatives and a blurred brand image. Pedagogical Objective To discuss the strategies that Mazda adopted to put itself on the path to sustainable profitability and stage a remarkable comeback.
Fiat Auto: Turning Around the Turnaround Strategies?

Fiat Auto, the $24 billion flagship company of Italy's largest industrial group Fabbrica Italiana Automobili Torino (FIAT), has accumulated $9.3 billion in net losses from 1999 to 2003, and the Fiat group is struggling to turnaround its auto business. Fiat was established in 1899 and the groups core business is automobile manufacturing. Over the years, Fiat Auto has produced some very popular passenger car models but the companys profits have been on a decline since 1995. The companys problems stem from inflexible production lines producing only one model, huge production overheads, and unyielding
42
www.ibscdc.org
To discuss the challenges posed by the rapid growth of LCC and the strategic importance of Song in the long run To discuss the merits and demerits of the regional and international alliances for Delta To discuss the ways in which Delta mainline can optimise and streamline its operations To discuss the possible outcomes of the strategic assessment and the pros and cons associated with them.
Reinventing the Buick Magic

Buick, one of the oldest and premium brands of GM (General Motors), has been witnessing a rapid decline in sales and market share since the mid-1980s. Despite two reorganisation efforts in 1985 and 1992, GM failed to reduce Buicks costs and revive its sagging production lines. Pedagogical Objective To discuss GMs efforts since 2001 to revitalise Buick to achieve sales of half a million cars per annum.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile Manufacturing RTS0025 2004 Not Available Not Available
Dell PCs; Management innovation 2001; Inter-company value chain; Procurement innovation division; PC and peripherals; Notebooks; Dynamic random access memory.
Daewoo Corporation: Corporate Restructuring Success

Daewoo, which in Korean stands for great universe, was Koreas second-largest conglomerate and one of the worlds leading automobile companies. Belying the Korean belief, the chaebols are too big to fail, Daewoo was declared bankrupt by the government of Korea in 2000. Pedagogical Objective To discuss the restructuring efforts of the affiliate companies of the Daewoo empire against the backdrop of Daewoos rise and fall.
keywords Network carriers in the US; Business segments of Delta Airlines; History of Delta Airlines; Leo Mullins revival plan for Delta Airlines; Employee involvement programme at Delta; Delta Airlines business alliances; Cost management at Delta Airlines; Productivity enhancements at Delta Airlines; Delta Nervous System (DNS); Song; Delta expansion initiative.
keywords GM (General Motors); The history of the Buick brand; Buick city; GMs North American Operations (NAO); The light truck boom in the US; Buicks sales problems; Buick rendezvous; Buick bengal concept vehicle; Harvey Earl campaign; Park Avenue Ultra; J.D. Power and Associates; Buick Velte concept; Changing Buicks image; Attracting younger buyers for Buick.
keywords Daewoo; Restructuring; Kim Woo Choong; Chaebol; Workout; General Motors; Debt restructuring; South Korea; Asian financial crisis; Big deals; Turnaround; Electronics; Korean economy; Hyundai.
Lucent Technologies: The Resurrection

By the turn of the 21 st century, Lucent Technologies, which was one of the leading providers of carrier network equipments in the world in the 1990s, was on the brink of disaster. Due to heightened competition in an already saturated global telecom market, Lucent witnessed a sharp decline in its revenues and even its survival became uncertain. Pedagogical Objectives To discuss the strategies that enabled Lucent to bounce back from its near death experience To discuss Lucents plans for a long-term profitable future.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Wireless Telecom Equipments RTS0026 2004 Not Available Not Available
Toshiba: Restructuring to Sustain its Leadership

By the end of the 1990s, Toshiba Corporation was finding it difficult to maintain its leadership position in the arena of PCs, laptops and dynamic random access memory, due to fierce competition from Dell, International Business Machines Corporation (IBM), Hewlett-Packard (HP), and scores of others. The ongoing recession in the Japanese economy and reduced consumer spending also added to its woes. Toshiba now looks set to regain its lost advantage through its fine-tuned restructuring strategies. Pedagogical Objectives To discuss Toshibas restructuring strategies To discuss whether the strategies adopted by Toshiba would help it to regain its lost advantage.
Koreas Kookmin Bank: Restructuring Strategies

The Asian crisis of 1997 had a devastating effect on the economies of the southeast Asian countries. The majority of the loans extended by the countries financial institutions to prime sectors including manufacturing and real-estate sectors, went bust. Kookmin, the largest commercial bank of South Korea was no exception. Kookmin under the leadership of Jung Tae Kim, who was named the best CEO in 2001 by the Korean Stock Exchange, for his leadership and governance practices, adopted various restructuring strategies to retain its profitability. Pedagogical Objectives To discuss Kookmin Banks restructuring strategies To discuss the contributions of Kookmin Banks CEO, Jung Tae Kim.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Banking and Financial Services RTS0022 2004 Not Available Not Available
keywords Carrier network equipments manufacturers; Competition in the global telecom market; Patricia Russo; AT&T; Bell Labs; Avaya Incorporated; Troubled times for Lucent Technologies; Strategies of revival of Lucent; Lucent as a telecom service provider; Top 10 telecom manufactures in the world; Products from Lucent.
keywords Toshiba Corporation; In-house company system; Mid-term business plan; 2001 action plan; Restructuring strategy; iValue creation company; Toshiba value created;
www.ibscdc.org
43
keywords
Koreas Kookmin Bank; Restructuring strategy; Asian financial crisis; Jung Tae Kim; Kookmin Interbank Payment Service (KIPS); Customer Relationship Management (CRM); Risk management group; South Korean chaebol; Risk Adjusted Pricing System (RAPS); Basel II capital accord; Financial leverage; Housing and Commercial Bank (H&CB); Private commercial bank; South Korean financial system; Chip-based mobile banking.
manufacturers were plagued with similar problems like huge debt and slumping sales. While Renaults turnaround man Carlos Ghosn nicknamed le cost killer proved the sceptics wrong by successfully turning around Nissan within a short period of time, DaimlerChryslers Rolf Eckrodts attempt to revive Mitsubishi did not yield desired results. Pedagogical Objectives To discuss the situations that led to the troubled times at Nissan and Mitsubishi To discuss why Renault and DaimlerChrysler picked up a stake in the ailing Japanese auto manufacturers To discuss the turnaround efforts of Ghosn and Eckrodt To discuss why Nissan could be turned around while Mitsubishi could not.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Auto Manufacturing RTS0020 2004 Not Available Not Available
keywords Sony; Restructuring; Consumer Electronics. Cost Cutting;
Philips: Restructuring to Make Things Better

Since the mid-1980s, Philips, one of the largest consumer electronics companies in the world had been witnessing losses in many of its fourteen divisions, including its core business consumer electronics. Cheaper products from Japanese and Korean companies flooded Europe, which was the niche market for Philips. The 1990s were no different for Philips and it continued to reel under losses and stagnating growth. Pedagogical Objective To discuss how Philips, under CEO Gerard Kleisterlee with his towards one Philips philosophy, has been able to recover itself and is preparing itself for a profitable future.
Tata Tele Services Ltd.: Setting up a New Connection

Tata Tele Services Ltd. (TTSL) a part of the Tata Group of companies, and one of India's biggest business conglomerates, spearheads the groups presence in the telecom sector. TTSL was incorporated in 1996 and in spite of being an early entrant in the Indian telecom market, it had acquired the image of a laggard. The company however, is trying very hard to become a major player and has come up with a series of initiatives to improve its market share. Pedagogical Objectives To discuss the strategies taken up by management to turnaround the company To discuss the factors that drive the Indian telecom sector and how TTSL is trying to increase its customer base by offering better services To discuss TTSLs ambitions to become a popular brand by focusing on the companys initiatives towards offering its subscribers more value and less costs.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Telecom Industry RTS0021 2004 Not Available Not Available
keywords Nissan and Mitsubishi turnaround; Renault and DaimlerChrysler; Carlos Ghosn; Rolf Eckrodt; Cross functional teams; Nissan revival plan; Keiretsu; Common supplier Mitsubishi Motors Corporation (MMC) operating system; Nissans 3-3-3 programme; Cost-cutting at Nissan; Mitsubishi triple-zero scheme.
keywords Philips; Restructuring; Towards one Philips; Gerard Kleisterlee; Consumer electronics; Corporate strategy; Lets make thing better; DVD recorders; Compact disc; Strategic conversations; Recovery plan of Philips; Change at Philips; Sony; Semiconductors; Medical systems.
Sonys Cost-Cutting Strategies

Since its inception in 1946, Sony Corporation has been known for its innovation and product quality. However, since the late 1990s, due to high competition from domestic and international players, recession in the Japanese economy and quality concerns of its gadgets, Sony has been facing stagnant growth and decreased profitability. With its core business of consumer electronics witnessing stagnated growth, Sony under its CEO, Nobuyuki Idei, initiated a massive restructuring plan in 1999, which was primarily aimed at cutting costs and regaining the companys competitive edge. Pedagogical Objectives
Kelloggs: Reclaiming its Lost Leadership

Kelloggs, an American icon for breakfast cereals, had been facing stagnating growth since the early 1990s. With its focus on selling high volumes, Kelloggs offered high discounts to clear its stocks, which resulted in the reduction of profitability. Further, in 1999, Kelloggs lost its leadership position in breakfast cereals in the US market to General Mills. Pedagogical Objective To discuss the restructuring strategies adopted by Kelloggs under the leadership of its new CEO, Carlos M Gutierrez, to once again become the biggest breakfast cereal maker in the US.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Pastas and Cereals RTS0017 2004 Not Available Not Available
keywords Tata Tele Services Limited; Tata Group; Bharti Telecom; Reliance Infocomm; Hutchinson Essar; GSM (global system for mobiles); CDMA (Code Division Multiple Access system); (GPRS) General Packet Radio Switching; Data based services; Pushto-talk; Distribution network.
Nissan and Mitsubishi: A Tale of Two Turnarounds

In the late 1990s, when Renault and DaimlerChrysler took up the challenge of turning around ailing Japanese car manufacturers Nissan and Mitsubishi respectively, observers were sceptical of their chances. Both the Japanese car
To discuss the restructuring strategies of Sony discuss the companys To transformation 60 initiative .
44
www.ibscdc.org
keywords Breakfast cereal makers in USA; General Mills; Ready-to-eat cereals market in USA; Restructuring at Kelloggs; Lenders Bagels; Country Inn Specialities; Ernie; Tony the tiger; Toucan Sam; Kelloggs Special K brand; Branding strategies of Kelloggs; Kelloggs sales by the turn of the century.
multinational brands and the presence of a huge unorganised sector that offered cheaper imitations. Pedagogical Objectives To discuss the strategies taken up by the management to turnaround the company To discuss how VIP changed its retailing structure to provide a better service to the consumers and its efforts to reposition itself as a stylish and modern brand To discuss VIPs ambitions to become a popular global brand by focussing on the VIPs international acquisitions and tieups.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Luggage Industry RTS0015 2004 Not Available Not Available
investment fund; Global non-carbonated beverages market.
NOKIA: Restructuring Strategies

Since its entry into the new millennium, Nokia, the global leader in digital technologies and telecommunications, has been witnessing stagnating revenues. With the saturation of the European mobile phone market (Nokias major market) coupled with strong competition from Asian manufacturers like Samsung, LG Electronics and TCL Holdings, Nokias sales growth is below the global average. Besides, with the consumer preference shifting towards higher end phones with colour screens and imaging capabilities, Nokia is failing to achieve the desired sales volume as it continues producing its utility handsets for the lower end mass markets. Pedagogical Objective To discuss the recovery strategies adopted by Nokia to sustain its global leadership in the mobile telecommunications market.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Wireless Telephone Handsets RTS0013 2004 Available Available
Ciscos Turnaround: John T. Chambers Strategy

Cisco had outperformed the markets expectations for 43 years consecutively and had overlooked the increasing problem that the company was facing. It also underestimated the effects of a major economic recession and was soon facing financial crisis. At such trouble time the company found in John T. Chambers a visionary leader that could turn the company around to a profitable future. Pedagogical Objectives To discuss that nothing is certain in business and also that it requires an effort of three gorges magnitude to save oneself from 100 years flood (sudden and steep recession) To discuss Chambers leadership style To discuss Ciscos turnaround strategy.
keywords VIP Industries; Dilip Piramal group; Samsonite Corporation; Carlton International; Nitol Motors PVT Limited; Cheaper Chinese imports; Unorganised sector; Delsey; Improved retailing ambience; Advertising; Acquisitions and tieups.
Restructuring Efforts at Cadbury Schweppes

In 2003, Cadbury Schweppes, the global beverages and confectionery manufacturer and retailer, saw its profits slipping despite a rise in its overall sales. An increase in raw materials and employee costs increased its operating costs and reduced its pre-tax profits. Pedagogical Objective To discuss the fuel for growth initiative of Cadbury Schweppes through which the company aims to cut down on its costs and reorganise itself over a four-year period.
Industry Beverages and Confectionery Manufacturing RTS0014 2004 Not Available Not Available
keywords Digital telecommunication business; Third generation (3G) mobile phones; Global System for Mobile Communications (GSM); Nokia mobile phones; Nokia networks; Nokia ventures; Digital subscriber line networking equipment; High capacity Internet security appliances; Samsung; LG Electronics; TCL Holdings; Ningbo Bird; N-gage; Code division multiple access (CDMA); Sony.
keywords Cisco Systems turnaround; John T Chambers strategy; Mergers and acquisitions; Industry-wide network protocols; Enterprise resource planning (ERP); Mike Volpi, Lary Carter, Ed Kozel; Eye of the Storm; Dotcom bust; Telecommunications; Virtual close; Vendor financing model; E-customer; Internet capabilities review; Networking equipment; American hardware industry.
Gateways Restructuring Strategies

Gateway Inc., the computer manufacturer famous for its cow-spotted boxes grew quickly to become a multi-billion dollar company. By the year 2000, the company started losing its market share. Growing operating costs of the company coupled with the fall in demand for computers in 2001 drove the company into losses. Pedagogical Objectives To discuss the companys growth as a brand until 2000 To discuss the factors that not only impeded the growth of the company post-2000 but also made it lose a huge chunk of its domestic and international market resulting in huge losses
VIP: The Indian LuggageCarriers Turnaround Strategies

VIP Industries (VIP) is Indias largest manufacturer of luggage carriers, and over the years, has become a generic name for luggage for the Indian traveller. Set up in 1971, VIP emerged as a popular brand during the 1980s and the 1990s predominantly due to innovative products backed by successful brand building initiatives. However, in the new millennium the company experienced decreasing sales and had to struggle with several challenges due to stiff competition from
Reference No. Year of Pub. Teaching Note Struc.Assig.
keywords Global confectionery and beverage business; Adams; Global sugar confectionery brands; Cadbury; Dr. Pepper; European confectionery business; Fuel for growth; Restructuring activities at Cadbury Schweppes; Schweppes; Halls; Trident; Dairy Milk brand of Cadbury; Global chocolate market; Berkshire Hathaway
www.ibscdc.org
45
To discuss the restructuring steps taken by the company to come out of the red and how these measures were getting it back on track.
keywords Gateway Incorporated; The Rolls Royce of laptops; Beyond the box products; Consumer electronic products; Information Technology Association of America; Non-PC products; Low operational costs; eMachines; Mergers and acquisitions; Cost of Goods Sold (COGS); Restructuring strategy; Low-cost distribution model; Supply chain management; Tedd Waitt; Cow-spotted boxes.
banks were expected to play a social role by catering to the financing needs of the corporate sector. The growing proximity between the bank and the corporate sector resulted in profit-motive taking a backseat and throwing up drastic consequences after the Nikkei-crash in 1990. The bank faced a rising proportion of bad loans in its lending portfolio due to its exposure in real estate. The Japanese government introduced the Financial Rehabilitation Law in 1998 under which LTCB was nationalised on October 23 rd 1998. After being sold to Ripplewood Holding Inc., a US-based private equity investor group, in 2000, the bank was rechristened as Shinsei Bank. The new entity combined the best practices of the West and the existent structure of its predecessor to carve out one of the most spectacular turnarounds. Pedagogical Objectives To understand the effect of social role of banks in the Japanese banking system and how it resulted in disastrous consequences To discuss how an effective restructuring exercise can go a long way to revitalise operations, promote synergies in profitability, technology and business aspects, and achieve and sustain a competitive advantage.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Banking and Financial Services RTS0010 2004 Not Available Not Available
and reorganised itself into four divisions, T-Mobile, T-Systems, T-Com and TOnline. Pedagogical Objective To discuss the various strategic initiatives that were taken at Deutsche Telekom to make a turnaround.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Telecommunications Services RTS0009 2004 Not Available Not Available
keywords Deutsche Telekom turnaround; Liberalisation of the telecom industry; 6+6 point cost cutting programme; T-Systems; T-Com; T-Mobile; T-Online; Public switched telephone network; Kreditanstalt fur wiederaufbau; 3G mobile networks; TNova Deutsche Telekom innovationsgesellschaft; Growth strategy; Deregulation of the telecom market; European telecom industry; Regulatory Authority for Telecommunications and Posts.
Turning Around Porsche

Failures teach better lessons than successes. This was true with Porsche, one of the finest carmakers in the world. Since the 1960s, the Japanese carmakers, with their unprecedented production acumen were becoming a real threat to Porsche. Porsches decision to take on the competition head on only with increased production, proved fatal as it jeopardised its technical innovation, which Porsche had long been known for. The new CEO, Wendelin Wiedeking, who took over the reins of the loss making Porsche in 1993, initiated the turnaround at Porsche. Pedagogical Objective To analyse the turnaround strategies of Porsche under the leadership of Wendelin Wiedeking.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Auto Manufacturing RTS0011 2004 Not Available Not Available
Infineon: Signs of a Recovery

Infineon Technologies AG was one of the top 10 semiconductor companies in the world. In the late 1990s, the global semiconductor industry went into a recession. Further, the downturn in the global PC business in early 2000 led to a drastic fall in the Dynamic Random Access Memory (DRAM) prices. Infineon, one of the leading DRAM manufacturers, was compelled to sell its chips at prices below its manufacturing cost. This resulted in huge losses for the company. Ulrich Schumacher, the CEO, took certain measures to regain the profitability of the company. Pedagogical Objectives To discuss Infineons strategy of surviving the economic recession in an ailing semiconductor industry To discuss the problems faced by the DRAM industry and Schumachers role in the revival of Infineon.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Semiconductor RTS0008 2004 Not Available Not Available
keywords Shinsei Bank turnaround; Long Term Credit Bank (LTCB); Ripplewood Holdings Incorporated; Nationalisation of Long Term Credit Bank; Japanese banking system; Corporate restructuring; Effect of Nikkei crash on Japanese banking; Law for the emergency measure to revitalise financial functions; Foreign investors in Japan; Restructuring; Masamoto Yashiro; FlexCube; PowerFlex account; Capital adequacy ratio; Japanese economy.
keywords Porsche; Wendelin Wiedeking; Great Depression; Volkswagen; 356 Roadster; Peugeot; Porsche 911; Formula 1 racing; Lean production; Just-in-time manufacturing; Zero defect manufacturing; Porsche improvement process; Boxter; Toyota; Sports Utility Vehicle.
Deustche Telekom: A Turnaround

In the late 1990s and the early 21st century, Deutsche Telekom, a German telecom major and one of the largest integrated telecommunications service providers in the world, faced falling revenues in its core businesses. This was as an aftermath of the liberalisation of the telecom market in Europe and the company faced an unenviable task of being a regulated player in an inflexible labour market. In 1999, Deutsche Telekom restructured its board
keywords Semiconductor industry; Infineon turnaround; IMPACT programme; ACT programme; Ulrich Schumacher; Agenda 5-to-1 programme; Siemens semiconductor; Joint ventures and mergers; Dynamic random access memory industry; Entrepreneurship; Wafer technology;
Shinsei Bank: A Turnaround

The Long Term Credit Bank (LTCB) was one of the institutions that fuelled the post-World War Japanese economic revival. The banks core business area was in long-term debenture lending where the
46
www.ibscdc.org
Micron; Restructuring; Personal computer industry.
Pedagogical Objective To discuss the events that led to the sudden decline of EMCs revenues and some of the initiatives taken by its new CEO Joseph Tucci to reverse the companys fortunes.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Magnetic Disk Storage RTS0006 2003 Not Available Not Available
LNM: Turning Around Sick Steel Plants

Laxmi Niwas Mittal (Mittal), who started with a rod mill in Indonesia in 1976, had foreseen, as early as the 1980s, the changes that the global steel industry would undergo. Starting from the late 1980s, Mittal acquired and turned around a host of steel plants in ten countries across the world. Pedagogical Objective To discuss how Mittal, by turning around sick steel plants worldwide, made his group (LNM) the second-largest steel producer in the world in 2003.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Steel RTS0004 2003 Not Available Not Available
Indian Banks Turnaround Strategy

Indian Bank is one of the oldest nationalised banks of India. In 1992, the prudential norms related to asset classification, income recognition and provisioning were introduced, which made the banks Non-Performing Assets (NPAs) clearly visible. These NPAs were gradually increasing because of the bank's methods and systems. In 1999, a Management Advisory Group, appointed by the Reserve Bank of India, reported that Indian Bank was a weak bank, as its accumulated losses exceeded its capital and reserves. In 2000, Ranjana Kumar was appointed the Chairperson and Managing Director and she proposed a restructuring plan for a three-year period from 2000 to 2003 to turnaround the bank. Pedagogical Objectives To discuss the banking scenario in India and various opportunities and threats faced by Indian Bank To discuss various strategies implemented by Indian bank to come out of its losses.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Banking and Financial Services RTS0007 2004 Available Not Available
keywords EMC Corporation; Software storage market; Storage vendors; Hardware storage; SAN, NAS and DAS; Joseph Tuccis initiatives; IBM mainframe storage; EMC history and Robert Egan; EMC revival strategies; EMC culture and sales tactics; EMC competitors; Data storage technology; Information life style management; Storage architectures; EMC Symmetrix product line.
keywords LNM; Ispat International; Laxmi N Mittal; Turnaround strategies of Mittal; European steel industry; Direct Reduced Iron; DRI; Acquisitions of Mittal; Ispat Mexicana and Ispat Karmet; LNM and global steel industry; LNM and loss-making steel plants; Mittals management; Mittals cost management; Mittal the turnaround specialist; Largest steel companies in the world.
Reinventing Chrysler: Dieter Zetsches Strategy

There had been times in Chryslers history when the future of the company was in serious doubt. Leaders such as Lee Iacocca were successful in turning the company around from deep troubles in the past. A similar situation arose in 2000 after the merger with Daimler-Benz. Dieter Zetsche, considered a turnaround specialist, came to the helm and made some strategic moves to put Chrysler back on track. The most notable steps that he took were rationalisation of the work force and hiving off redundant plants and operations. In terms of product development his disciplined pizzazz approach was the most notable. Pedagogical Objective To discuss the strategies adopted by Dieter Zetsches to put Chrysler back on track.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobiles Industry RTS0005 2003 Not Available Not Available
Turnaround Efforts at Ford

In 2003, when Bill Ford took over as CEO of the Ford Motor Company, he did not inherit the most profitable company in the world. The unintended consequences of Fords ex-CEO, Jacques Nasser's initiatives continued to affect the performance of the company. The company that posted a net income of $7.2 billion in 1999 incurred a loss of $5.5 billion (including a one time write off of $4.1 billion in restructuring costs) in 2001. Bill Ford, faced with the onerous task of putting the company back on track, had initiated some concrete measures amidst scepticism about his abilities to turn the company around. Pedagogical Objective To discuss the reasons for the financial losses of the Ford Motor Company and the steps that Bill Ford has taken to overcome the same.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automotive and Transport RTS0003 2003 Not Available Not Available
keywords Indian banking industry; Indian bank turnaround; Ranjana Kumar; NonPerforming Assets (NPA); Restructuring plan; Mitr shared service; Capital adequacy ratio; Vision 2010; Asset recovery management; Provisioning; Asset classification; Indbank merchant banking services; Income recognition; Public and private sector banks; Credit management.
EMCs Restructuring
Founded in 1979, EMC Corporation (EMC) became the worlds leading provider of high-end enterprise data storage systems in the early 1990s. EMC provided storage solutions to the worlds largest banks, airlines, Internet providers and government agencies. Between 1997 and 2000, EMCs sales doubled every year. However, due to economic recession and increased competition from established storage vendors like IBM and HewlettPackard, EMCs revenues have begun to slide since 2001.
keywords Dieter Zetsche; Turnaround; DaimlerBenz; Chrysler; Cost cutting; Mercedes; Auto industry; Jurgen Schrempp; Supplier cost reduction effort; General Motors; Toyota; Ford; Quality gates; Disciplined pizzazz; Mergers and acquisitions.
www.ibscdc.org
47
keywords
Turnaround; Bill Ford; Jacques Nasser; Restructuring; Ford Motor; Internal problems; Cost cutting; Layoffs at Ford; Management overhaul; Premier Auto Group.
Electrical Products RTS0001 2003 Not Available Not Available
Keywords Motorola, Spin-off, Divestiture, Mobile phone, Handset business, Brand, Branding, Brand Image, Moto Razr, Edward Zander, Carl Icahn, Culture, Product development
keywords Alstom; Government bailout; Restructuring Alstom; Alstoms financial troubles; EU Commission; EU competition laws; France; Layoffs; Patrick Kron; Turnaround; Alstoms bailout; Turnaround specialist; French Government and Alstom; French engineering company; Alstom Power Distribution.
Turnaround Efforts at Sun Microsystems

Sun Microsystems is having a tough time with increasing competition in the server market. It has become defensive, with the likes of Dell, Microsoft and Intel encroaching the low-end and companies like IBM and HP-Compaq giving it a torrid time in the high-end of its market. Despite such obstacles, Scott McNealy, CEO of Sun, refused to make products that could work in tandem with other companies technologies and stuck to his original strategy of making all the components in house, which included its own chips, the SPARC microprocessors, and its operating system, the Solaris. Pedagogical Objectives To understand the competitive scenario in the global server market To analyse Scott McNealys strategies to turnaround Sun Microsystems and whether the company needs to change its course and partner with its competitors.
Slumdog Millionaire (A): Accolades and Acrimonies

This case study, the first in the three-part series, captures the various perspectives towards Slumdog Millionaire. While the movie has invited much criticism for its audacious representation of poverty in India, the popularity of the movie is clearly visible in terms of its search ranking (84,100,000), which is just less than the key search of the worlds most popular book Bible (125,000,000). This case study is primarily aimed at delving into many other such perspectives on the Danny Boyle-directed movie Slumdog Millionaire. While the movie has given oodles of hope and optimism for a few to sustain even in the direst of situations, for others the movie has been nothing else but a reiteration of the age old perception of the West towards East. In the backdrop of the new and emerging hybrid model of Indian and Western cinema, the case study explores issues such as the collaborative journey of Indian cinema hand in glove with the Westerners, the factors that assisted in the corporatisation of the Indian cinema in the 21st century, the emerging trends in the global cinema industry and finally the reactions of the various sections of the society towards Slumdog Millionaire. Pedagogical Objectives This case study aims at achieving the following pedagogical objectives: To analyse and examine perceptions of the West towards East and how they influenced the Indian cinema industry To assess the emerging hybrid model of cinema through partnerships and alliances and the rationale behind Hollywood and UK film industry to forge tie-ups with Bollywood To debate upon Slumdog Millionaires controversial success and the future prospects of the evolving hybrid model.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Entertainment SCJ0026 2009 Available Available
Motorola's Spin-off Decision: What's the Spin?

Lucent from AT&T, Delphi from GM, BenQ from Acer, Novelis from Alcan and many others are examples of companies spinning off a major part of their business into a new business. Spin-offs are increasingly being used by companies as a method of restructuring in order to increase shareholder value and to improve focus on their core business. In the wake of these developments, Motorola, the third largest mobile phone manufacturer announced the spin-off of its handset business. This case study sheds light on the role played by spinoffs in improving the performance of a company. It also focuses on circumstances which led Motorola to consider the spinoff decision. What are the possible reasons for the spin-off announcement? What impact does it have on Motorola? Will Motorolas handset business be able to survive without the Motorola brand name? Pedagogical Objectives To analyse the reasons underlying a spinoff decision, when does it make sense to spin-off one of the existing businesses, what kind of business (a business doing well or a business doing badly) should be spun-off, etc. To understand and debate on the implications of a spin-off for the parent companys bottom line and the consequent structural changes warranted To debate on the pros and cons of Motorolas decision to spin-off, what can it expect from this spin-off, who would be the beneficiaries, etc.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Telecommunication Industry SPN0001 2009 Available Available
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 Alstom

Alstom, the French multinational engineering group that is considered a global icon of French technological prowess, is in deep trouble, burdened with huge debts. The French government bailed it out with a package of 3.4 billion. Pedagogical Objectives To discuss the reasons that contributed to the colossal downturn at Alstom To discuss the efficacy of the French governments bailout of a public limited company.
Keywords Slumdog Millionaire, Danny Boyle, A R Rehman; Hollywood, Bollywood, Oscars,
48
www.ibscdc.org
Golden Globes, Collaboration, Strategic Alliances, Mumbai, Dharavi, UK Film Industry, Poverty, Globalisation, Simon Beaufoy
Pedagogical Objectives To discuss the trends and changing competitive dynamics of the global consumer packaged goods industry developed vs developing markets To understand the role and importance of supply chain management in a consumer packaged goods company like P&G
P&G's Logistics Revolution Cocreating Value

Proliferation of products, brands, companies and even distribution channels and media, have necessitated consumer goods industry giants to shift their attention from brand marketing and positioning towards a cross-functional focus. While manufacturers vied for significant shelf space, retailers competed for winning customer attention and loyalty. However, their inability in rightly assessing consumer demand created market imbalance in the form of either excessive stocks or stock outs. The need to produce and deliver goods based on real demand made both manufacturers and retailers rethink/review their business relationships and co-create value for each other. This involved integration of their operations across the supply chain and delivery of the right goods to the right place at the right time with the right operational costs. P&G was one among the first consumer goods companies that realised the significance of shelf space and the need to lure customers at the point of sale. It initiated customer-driven supply chain management, wherein starting from customer decision at the store shelf, it worked backwards to production. This required P&G to assess product demand based on customers purchase decisions and buying behaviour and this in turn necessitated collaboration with retailers. In this context, P&Gs tie-up with WalMart exemplified the success of manufacturer-retailer relationships. They collaborated with each other to track customer buying behaviour with the help of a sophisticated technology and accordingly assess the demand for their products. The case study highlights various aspects like the need for conducive manufacturer-retailer relationships in cocreating value, viewing supply chain as a profit centre rather than as a cost centre, supply chain as a source of competitive advantage in ensuring top-line growth as well as bottom-line performance, customer-driven supply chain - shift from forecast-based to demand-based and better inventory management by attaining balance between stock-outs and excess inventory. However, sustainability and extendibility of P&Gs collaboration across Wal-Mart's other stores as well as other retailers - in both developed and developing countries - remains to be answered.
To debate on the possibilities of supply chain management becoming a competitive advantage and contributing to top-line growth as well as bottomline performance To analyse and debate on the possible synergies between Delta Air Lines and Northwest Airlines In a consolidating and troubled industry, which is the ideal company to be taken over a strong player or a weak player?
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Consumer Packaged Goods SCM0001 2008 Available Available
Group's business operations and made the Group compete globally. Under Ratan Tata's chairmanship, Tata Consultancy Services went public and Tata Motors was listed in the New York Stock Exchange. Starting from the late 1990s, Ratan revamped the operations of Tata Steel and made it one of the lowest-cost steel producers in the world. However, as the Tatas lacks an heir who can succeed Ratan, the group is at cross-roads to decide who will be the next chairman. After Ratan Tata's retirement who would succeed him and carry the vision of the Group is a dilemma. Pedagogical Objectives To understand the vision that has driven the Tata group till Ratan Tata joined To analyse the contribution made by Ratan Tata to the Tata Group To analyse if conglomerates can be driven by leaders' vision and not necessarily by a strategy To analyse the leadership style of Ratan Tata To analyse the succession dilemma at the Tata Group To analyse what kind of leadership is required for Tata Group after Ratan Tata steps down.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Business Conglomerate VMG0015C 2008 Available Available
Keywords Supply chain; Logistics; Customer-driven supply chain; Demand-driven supply chain; Wal-Mart; Keith Harrison; Supply chain integration; Manufacturer-retailer Collaboration; Consumer Packaged Goods; Wal-Mart Retail Link; Inventory management; Balancing stock-outs and excess stocks; Top-line growth and bottom line performance; Continuous replenishment process; Category management
Keywords Tata Group; Succession Dilemma; Ratan Naval Tata; Organisation Transformation; Tata Business Excellence Model; Total Quality Management Services; Ratan Tata's Vision; HR Revamp; Vision, Mission and Goals Case Study; Leadership Style; Future of Tata Group; Jehangir Ratanji Dadabhoy Tata; Jamshedji Tata
Tata Group's Strategy: Ratan Tata's Vision

The Tata Group is one of India' largest business conglomerates established by Jamshedji Tata (Jamshedji) in the second half of the 19th century. Jamshedji's vision for the Group was in line with nationalist goals and ideals then, and envisaged to make India self-reliant. After Jamshedji, Jehangir Ratanji Dadabhoy Tata (JRD) became the Chairman of the Tata Group and played a significant role in continuing the vision of the group. Tata's assets climbed from INR 620 million in 1939 to INR 100 billion in 1990. Tata Motors had increased its sales to INR 1 million in the year 1991 and it had rolled out 3 million vehicles in the same year. In 1991, Ratan Naval Tata (Ratan Tata/Ratan) took over the Chairmanship from JRD Tata. Although he was initially criticized for his poor performance, over the years, Ratan Tata disproved his critics. He restructured Tata
MindTree Consulting: Designing and Delivering its Mission and Vision

MindTree Consulting is an international IT consulting company with revenues of about $103 million in 2006, an increase of over 85% from the previous years revenue of $55 million. Besides, MindTree had several laurels to its credit. It was the worlds youngest company to be assessed at Level 5 in both CMMI and P-CMM. The company was ranked among the top five Great Places to Work in 2004 in a study conducted by Grow Talent Company and Businessworld and rated as one of the Best Employers in India in 2004 by Hewitt Associates. www.ibscdc.org
49
Vision, Mission and Goals
When MindTree was established in 1999, the founders had set a clear Mission and Visions keeping in mind a timeframe of 2005. The company had almost reached the Vision parameters. It went on to set bigger Vision targets for the future. However, there were questions raised whether a mid-sized IT firm like MindTree can battle the big players like Wipro, Infosys, Satyam and TCS. At the same time, it was also important how the company would keep its core values and culture which formed the foundation of the company from getting diluted as the company grew bigger in size. With hurdles to cross, would MindTree achieve its Vision for the future? Pedagogical Objectives To understand the analysis behind setting up of a companys Mission and Vision statements To analyse how a mid-sized IT firm achieved its Vision within a short span of time To study the various challenges MindTree would face in its pace of growth in the future To analyse how MindTree would achieve its set goals in the midst of competition from other mid-sized IT firms and the IT giants in India.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Information Technology VMG0014B 2007 Not Available Not Available
health and wellness company. With this acquisition, Nestle moved from being a minor player in healthcare nutrition segment to world number two player in the nutrition, health and wellness industry. Nestle aimed at becoming the leader of the industry with the combined strengths of the two companies. The case focuses on the strategic transformation initiatives undertaken at Nestle. It analysis the acquisition and its impact and ends on the debate whether strategic transformation process will help Nestle achieve its long term objectives of being a leader in nutrition, health and wellness? Pedagogical Objectives To understand the changing trends in health and wellnessindustry To discuss the takeover of medical nutrition business of Novartis International AG by Nestl and its implications To discuss the strategic transformation of Nestl from a food company to nutrition, health and wellness company To discuss the future growth strategies of Nestl to achieve the goal of becoming the leader of the industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Food & Beverages VMG0013A 2007 Available Not Available
rates in both Premium Income and Profit, IAGL planned to achieve through both organic as well as through acquisition. But following Tort Law reforms, falling premiums due to reducing claims costs, in addition to smash repairer disputes, competitive pressures IAGLs organic growth rate was affected. IAGL had set a clear aim to increase top and bottom line performance by an average 15% a year over the next 10 years. But the Australian insurance market was only growing between 4% and 6% a year. Would IAGL be able to outgrow the risk and achieve its financial goals and enhance shareholder value? Pedagogical Objectives To discuss the expansion strategies of Insurance Australia Group Limited (IAGL) To discuss the strategic fit between UK insurance industry and IAGL To analyse the acquisition decision of IAGL.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Insurance VMG0012A 2007 Available Available
Keywords Insurance Australia Group Limited; Vision, Mission & Goals Case Study; IGA; Australia Prudential Regulatory Authority (APRA); Insurance Industry; Carbon Credit; Carbon Neutral; UK insurance market; Motor Insurance; General Insurance; Market Share; Claims; Risks; Managing Costs; International Regulations; Financial Services Authority [FSA]; Strategy; Sustainability; Mission; Vision; Acquisition; Gross Written Premiums; Segments of Insurance Business; Social Security; Community; Peripheral vision; shareholder value
Keywords Nestl; Strategic transformation; Nestle Nutrition; Healthcare Nutrition Market; Vision, Mission & Goals Case Study; Food and Beverage; Health and Nutrition Foods; Novartis Medical Nutrition; Synergy; Strategic fit; Nutrition; Health and Wellness industry
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
Nestles Strategic transformation: Will it be successful?

Nestl S.A., was one of the world's top five, most respected, food and beverages company. Besides being the world's no.1 food company in terms of sales, Nestle was also the world leader in coffee (Nescafe), food and nutrition. The companys international Research & Development network supported products made in more than 500 factories in over 84 countries. Most food companies worldwide were focusing on catering to health conscious consumers and increase their reach into health care segments. On the same premises, Nestl acquired the medical nutrition business of Swiss pharmaceutical major, Novartis International AG in 2007, striving to reposition itself as nutrition,
Insurance Australia Group: Expansion Strategies

Insurance Australia Group Limited (IAGL) faced with competition back home recognized the need to generate scale in Australia and New Zealand and diversify the Groups business by geography, product and distribution channels to spread its risks and ensure sustainable profitability. The Group also planned to expand internationally to achieve its targeted Gross Written Premium growth rates over a long term and with UK purchase the group was expecting GWP growth rates at the higher end of the range. To be successful and remain profitable over a long period of time in the general insurance business and be able to generate annual compounding double-digit growth
Lego Toys: A Makeover in Corporate Philosophy

The LEGO Group is the sixth-largest toy manufacturer of the world. Although the Group was a great toy maker, it was not a great toy company. In the 1990s, childrens interest in toys had gradually shifted from traditional toys to video games and Xboxs, but LEGO stuck to its old philosophy of creating traditional toys. As a result, the company faced huge financial losses in 2003 and 2004. However, things changed for the better in 2004, when Jorgen Vig Knudstorp took over as CEO of the company, and in 2005, the company saw its profits grow. The case discusses the various restructuring strategies undertaken by Jorgen. It also discusses his greatest
50
www.ibscdc.org
contribution of transforming the corporate culture of a do good company to one that was more focused on profitability and sustainability in the long run. Pedagogical Objectives To discuss the corporate restructuring strategies of Lego To discuss the Change management strategies of Legos top management.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Toy VMG0011K 2006 Not Available Not Available
keywords Microprocessor; Pentium; Paul Otellini; integrated circuit; Centrino; mature PC market; dual-core; innovation; business model; product line-up; Core; ingredient brand; Andy Grove; Moores Law; Intel.
Global Vision 2010: Toyotas Strategic Initiatives

In 2002, Toyota Motor Corporation, the No.2 carmaker in the world, released its Global Vision 2010, in which it highlighted, among others, its concern for environmental protection. Although Toyota has been criticised for representing a false environmental friendly image, Toyota has constantly been involved in activities like initiating environment protection plans and manufacturing hybrid cars. The company believes that through this it would be able to achieve its aim of becoming the No.1 carmaker in the world and occupy 15% of the global automobile market. Pedagogical Objectives To highlight Toyotas efforts towards environmental protection as part of its global vision To discuss whether Toyota would achieve its goal of becoming the leading carmaker in the world by 2010 by establishing itself in difficult markets.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automobile Manufacturing VMG0009 2006 Not Available Not Available
team were accused of failure in directing the company in the information technology age. In 2001, under compulsion to change, Reuters had appointed Tom Glocer, a lawyer and software developer as Chief Executive Officer (CEO), a nonjournalist for the first time in the companys history. In 2004, Niall Fitzgerald, former chairman of Unilever, was appointed as the chairman to the Reuters board. Niall Fitzgerald took up initiatives to make the board competent to lead the company in the 21st century. Pedagogical Objectives To highlight the failure of Reuters in facing competition To discuss the changes initiated by Niall Fitzgerald to make the board competent to lead the company in the 21st century.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Information Collection and Delivery VMG0008 2005 Not Available Not Available
Keywords Lego Toys; Leadership. Change Management;
The Changing Face of Intel

Intel, the undisputed leader in the microprocessor industry faces slowdown in growth in its biggest market, the personal computer (PC); even as cellphones and handheld assume greater importance in people's lives. Paul Otellini (Otellini), Intels new CEO tries to reinvent Intel. Otellini has created business units for each product area home, enterprise, mobility and digital health, and scattered the processor experts among them. He intends to set up a fifth division that will focus on customising products for particular countries or regions. Otellini has decided to pay greater emphasis on marketing, realising that the only way Intel can succeed in new markets is by communicating more clearly what the technology can do for customers. To redefine the Intel brand, Otellini has dropped its famous tagline and launched a new logo. It has entered into partnerships with top corporate like Apple, Nokia and Samsung among others. He has reorganised the company from top to bottom, assigning new tasks to most of Intels 98,000 employees. Most of the executives have been recruited from outside the company and include software developers, doctors, sociologists, and ethnographers. Is Otellinis new strategy the right path for Intel? Pedagogical Objective The case outlines Intels growth strategy. Its old marketing strategy, its new branding strategy and its new business model.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Microprocessor Industry VMG0010P 2006 Not Available Not Available
keywords Reuters Group Plc.; Tom Glocer; Niall Fitzgerald; Bloomberg; Board of directors; Financial information providing business; Running a board; Competency of board.
Semiconductor Industry: Samsungs BHAG

Intel is the number one company in the semiconductor industry, with a market share twice that of its nearest competitor, Samsung. However, a turnover rate much higher than that of Intels encouraged Samsung to announce its big, hairy and audacious goal (BHAG) of becoming the leader in the global semiconductor industry. Pedagogical Objectives To discuss the strategies of Samsung to become an industry leader To discuss whether Samsung would achieve its goal (BHAG) by competing with the other players of the semiconductor industry.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Semiconductors, Microprocessors, Chips VMG0007 2005 Not Available Not Available
keywords Vision; Business ethics; Hybrid cars; Global expansion of Toyota; General Motors; Ford; Market positioning; Market leadership; Corporate image; Social responsibility of an organisation; Product differentiation.
Running a Board: The Reuters Way

For long, Reuters had made its reputation as a reliable news agency with its speed, accuracy and impartiality. But it earned much of its revenue by transmitting financial information like share quotes, currency values and commodity prices with the same efficacy as its news. Since its inception in 1849 through to the 1990s it had a formidable presence in the financial information providing business. In the 1990s, it lost to the start-ups, which used information technology, the Internet in particular, effectively, seized the business from Reuters and grew big right under its nose. The board and the senior executive
keywords Samsung Electronic Co. Ltd.; Semiconductors industry; Microprocessors and memory chips; Semiconductor Industry Association; Intel Corporation; Flat panel LCD (liquid crystal display) televisions and www.ibscdc.org
51
Vision, Mission and Goals
display products; Big, hairy and audacious goal (BHAG); Digital convergence technology; Growth rate; Industry boom; Digital appliances; DRAM (dynamic random access memory) chips; Strategic alliances; Technology development partnership; Competitive strategies.
of being present in all segments of the digital market and how far the strategy is relevant in todays fiercely competitive world.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Printing and Imaging Equipment VMG0005 2004 Available Available
To discuss the companys acquisition strategy in Australia and China.

Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Information Technology (IT) VMG0004 2004 Not Available Not Available
keywords Infosys; Global delivery model; IT (information technology) consulting services; NR Narayana Murthy; Nandan Nilekani; Moving up the value chain; Infosys enhanced service delivery model.
PwC's Ulysses Programme: Preparing Future Leaders Through CSR

PricewaterhouseCoopers (PwC), one of the worlds big four accounting firms, introduced a unique training programme called Ulysses, for preparing future leaders for running its global business in the 21st century. The programme focuses on nurturing leadership skills in executives through corporate social responsibility (CSR) initiatives, working in partnership with non-governmental organisations (NGOs) and the local communities in the developing world. Pedagogical Objective To discuss as to how PwCs Ulysses programme, makes a case for leadership development, ethics and social responsibility, and business strategy.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Financial Consulting Services VMG0006 2005 Not Available Not Available
keywords Hewlett-Packard (HP); Corporate clarity; Corporate identity; Carleton S Fiorina; Printing and imaging equipment; Computer industry; Hardware industry; Compaq; IT solutions providers; The HP way; Decentralisation; Agilent Technologies; Corporate restructuring; HP and Compaq merger; Dell and IBM (International Business Machines Corporation).
Microsoft Under Steve Ballmer

Riding on the personal computer (PC) revolution of the 1980s, Microsoft has emerged to become the reckoning force of the global tech industry. But in the late1990s, Microsoft had a huge challenge the Internet. Many felt the company had missed the boat due to its belligerent attitude about its future. Microsofts woes became noticeable in 1997 when it came under the legal scanner for antitrust violations. Incidentally, when Bill Gates named Steve Ballmer as the CEO of Microsoft in January 2000, many felt the move would usher in a new era of leadership for the company. Steve Ballmer, who was known for his bulldog demeanour, was also popular for his steely discipline and marketing blitzkrieg. Pedagogical Objectives To understand the need for changing the companys mission statement as a part of reorganisation at Microsoft To understand the leadership style of Steve Ballmer. To discuss Ballmers initiatives to bring in widespread changes at Microsoft and in steering and orchestrating the companys activities.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Computer Software VMG0003 2004 Not Available Not Available
Infosys: Moving up the Value Chain

In April 2004, India-based Infosys Technologies Limited became the first listed IT (information technology) company to record annual revenues of $1 billion. Since its inception in 1981, the company has constantly moved up the value chain - from custom software development to standardised products, to business process outsourcing and IT and business consulting. However, major rival Indian companies such as TCS, Wipro, Satyam etc., are also following similar business models and moving into IT and business consulting. Competition was also intensifying from global majors such as IBM (International Business Machines Corporation), EDS (Electronic Data Systems Corporation), Accenture, HP (Hewlett-Packard), etc. Pedagogical Objectives To discuss the evolution of Infosys over the years and its future plans To discuss the changes in Infosys organisation setup aimed at meeting business and client needs To discuss the pros and cons of the global delivery model, and if any changes needed to be made, considering that the model can be replicated To discuss Infosys main focus on banking products and if they need to expand their product portfolio To discuss the companys foray into business process outsourcing when it had already established itself as a dominant player in high end services To discuss the opportunities and risks that Infosys would face in the IT and business consulting services
keywords PricewaterhouseCoopers (PwC); PwCs Ulysses programme; Corporate social responsibility (CSR); Leadership development programme; Culturally diverse global business environment; Responsible and sustainable business; Thought leadership; Action learning; United Nations Development Programme (UNDP); Mergers and acquisitions; CSR and sustainability; Community-based organisations; Small enterprise development; Business in the 21st century.
Hewlett Packards Biggest Threat: Its Corporate Clarity

By the turn of the 21 st century, the US computer behemoth had probably bitten off a little more than it could chew. It was into everything which sounded digital from providing billion-dollar tech services to manufacturing $100 cameras. In all its business segments, except for its printing and imaging business, it was competing against focused competitors. Pedagogical Objective To discuss on how and why HP (HewlettPackard) has subscribed to its strategy
keywords Steve Ballmer; Microsofts antitrust violations; Microsofts mission statement; Microsoft's vision Version 2.0; Microsofts re-organisation; Richard Belluzzo; Microsofts stock options; Microsofts business division.
Harley-Davidson: Making of the Cult Brand and After

Schoolmates Arthur Davidson and William S Harley shared a passion for mechanics, especially for motorcycle engines. Both
52
www.ibscdc.org
longed to join the ranks of motorcycle pioneers. By 1901 they had designed four motorcycle engines ready to be fitted into bicycle frames. With time, HarleyDavidson emerged as a cult brand. Pedagogical Objective To discuss the making of this cult bike.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Automotive and Transport VMG0002 2005 Available Available
keywords Harley-Davidson; Cult brand; Baby boomers; Motorsport; Outlaw image; Hells Angels; Harley Owners Group; Open road tour; Brand loyalty; Brand extension; Cult branding; Linux; Apple computer; Customer communities; Business life cycle.
The Strategic Initiatives at HBS

Harvard Business School (HBS), throughout its 95-year-old history has always been a pioneer in management education and practices, nurturing future CEOs for generations. Throughout the 1990s, several socio-political events like the collapse of the old communist economies, the rise of the European common markets and the rise of free market economies in many countries due to globalisation, changed the dynamics of business worldwide. All these changes coupled with a slowdown in the US economy in the 1990s, caused a dip in HBS revenues. To stay tuned with the latest trends in world business and to shore up its revenues, HBS embarked on a threepronged strategy in the late 1990s. Pedagogical Objective To discuss the strategic initiatives undertaken by HBS and its plans to generate the funds required by these initiatives to educate leaders who make a difference in the world.
Industry Reference No. Year of Pub. Teaching Note Struc.Assig. Management Education VMG0001 2003 Not Available Available
keywords History of HBS; Case studies from HBS; Entrepreneurship programmes at HBS; Capital campaign at HBS; Strategic initiatives of HBS; Revenue and expenses of HBS; Harvard Business Review; Messages of Kim B Clark; HBS Press; Harvard University; Technology initiatives at HBS; Global research centres of HBS; Endowment funds of HBS; Alumni of HBS; Financials of HBS.
www.ibscdc.org
53

List of Case Studies On Strategy (Catalogue IV)

Uploaded by

Copyright:

Available Formats

List of Case Studies On Strategy (Catalogue IV)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

List of Case Studies On Strategy (Catalogue IV)

Uploaded by

Copyright:

Available Formats

S T R A T E G Y I S T R A T E G Y I S T R A T E G Y I S T R A T E G Y I S T R A T E G Y I

Turnaround R estructuring Turnaround Strategies

Low-Cost Airlines in India: Took off with Pride, Landed in Troubles

Starbucks in US: Too Much Coffee Spilling All Over?

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

Luxury Industry in Turbulent Times

Xerox Corporation: A New Corporate Identity?

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

Bob Nardelli at Chrysler: Can he do a Lee Iacocca?

Turnaround R estructuring Turnaround Strategies

GAP's Turnaround Strategies: Winning Back its Customers?

To analyse whether the rebranding will be successful.

Lowe's Companies, Inc: Will its EPM Strategies Payoff in Canada?

Revitalisation of eBay under John Donahoe: Will it Work?

Yum! Brand's Turnaround Strategy

Sanofi-Aventis: CEO Gerard Le Fur's Formula for Change

New Fiat 500: Revival of a Heritage Brand

Indian Tourism Turnaround: The Success Story of 'Incredible India' Campaign

Turnaround R estructuring Turnaround Strategies

Private Equity Companies: The Strategic Shift

Reference No. Year of Pub. Teaching Note Struc.Assig.

European Railways Revamping Model to Combat Low-Cost Airlines: Will it Succeed?

Industry Reference No. Year of Pub. Teaching Note Struc.Assig.

Aviation RTS0171 2007 Available Available

Ford's New Turnaround Strategy: Will it Work?

Maruti-Suzuki's Zen: Will the Legacy Last?

Air Deccan C: The Captain vs The Baron

British Broadcasting Corporation: Grim Future Ahead?

Turnaround R estructuring Turnaround Strategies

To discuss the technological changes that happened in the UK broadcast industry.

Boeing: Back on the Track?

Delta Air Lines: Flying out of Bankruptcy?

Wal-Mart in Japan: Survival and Future of its Japanese Business

Tupperware Re-igniting Growth

Automobili Lamborghini: Growth after Bankruptcy

Turnaround R estructuring Turnaround Strategies

Industry Reference No. Year of Pub. Teaching Note Struc.Assig.

Retail RTS0161P 2007 Not Available Not Available

Kodak's Turnaround Strategies

Fiat's Turnaround Strategies

Motorola's Revival Strategy

The Wall Street Journal: Changing with the Times

Sony Electronics: The Turnaround Strategy

To debate on its decision to exit from both the countries.

Marvel Comics: Forward Integration into Movie-making

Proton: Way to Survive

Turnaround R estructuring Turnaround Strategies

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

The Changing Face of MTV Volkswagen: Turnaround in China?

Kodak: Rewriting Its Film Destiny?

Gap Inc.s Declining Apparel Sales in Europe: Style or Substance?

Dell Inc: Time to Discard its Direct Selling Model?

Turnaround R estructuring Turnaround Strategies

Alan Mullaly, veteran from Boeing: Can he turn Ford around?

Corportate Restructuirng at Yahoo! Inc.

Malaysian Airlines: A Turnaround Strategy

AOL: The Strategic Shift, Will it Payoff

Corporate Restructuring at Cadbury Schweppes: Splitting US Beverages and Confectionery

Kraft Foods Spin-Off: Will it help its Turnaround?