...HARVARD CASES Case 14 WESCO Distribution, Inc. Synopsis In June 1997, Jim Piraino, VP of marketing for WESCO Distribution, Inc., is preparing for a yearly review meeting with WESCO CEO Roy Haley. Haley wants the firm to reach annual growth goals of 6% to 8% in revenues and 12% to 16% in profitability over the next five years. The centerpiece of this growth strategy is the National Accounts program, which WESCO has developed to serve its major industrial customers in response to recent changes they have made to their business processes. However, as of June 1997, the NA program has not delivered the expected increases in sales and profitability. Jim Piraino has to give Haley his recommendations for the future of the NA program, in particular, whether WESCO should continue to pursue NA business with the intensity it has in the past, or whether to assume a more reactive stance and offer the NA program only when it is requested by current customers. As well, he must account for how WESCO will achieve the desired increases in profitability and overall revenues when its current program already seems to be encountering difficulties in generating the desired numbers. Use Although the "customer" is at the heart of marketing strategy, "effective customer management" is still not a very well understood concept in industrial marketing practice. This case can be used to explore the difficulties encountered in developing and implementing new ways...
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...HARVARD CASES Case 14 WESCO Distribution, Inc. Synopsis In June 1997, Jim Piraino, VP of marketing for WESCO Distribution, Inc., is preparing for a yearly review meeting with WESCO CEO Roy Haley. Haley wants the firm to reach annual growth goals of 6% to 8% in revenues and 12% to 16% in profitability over the next five years. The centerpiece of this growth strategy is the National Accounts program, which WESCO has developed to serve its major industrial customers in response to recent changes they have made to their business processes. However, as of June 1997, the NA program has not delivered the expected increases in sales and profitability. Jim Piraino has to give Haley his recommendations for the future of the NA program, in particular, whether WESCO should continue to pursue NA business with the intensity it has in the past, or whether to assume a more reactive stance and offer the NA program only when it is requested by current customers. As well, he must account for how WESCO will achieve the desired increases in profitability and overall revenues when its current program already seems to be encountering difficulties in generating the desired numbers. Use Although the "customer" is at the heart of marketing strategy, "effective customer management" is still not a very well understood concept in industrial marketing practice. This case can be used to explore the difficulties encountered in developing and implementing new ways...
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...different from the customer value delivered by PROCEED? 5. What is a Trojan Horse? How does it facilitate customer acquisition and retention? 6. How will you price TH? 7. How do you think SaleSoft’s organization structure will affect its ability to sell PROCEED or TH? Case: WESCO Distribution Inc., HBS case No. 9-598-021 1. What is your action plan? Do you recommend that WESCO be proactive in managing its NA program or would you prefer that WESCO adopt a passive approach? 2. Where and how does WESCO add value to its suppliers? Its customers? 3. Why did WESCO start the NA program? What are its benefits to WESCO? 4. Why do you think the NA program is it not delivering on its promises? 5. What does Case Exhibit 5 tell us? Is there something that we can learn about the issues involved in implementing the NA program? 6. What about the NAM capacity issue? 7. Going ahead, what is going to happen? Can this NA program be sustained over time? What will happen if other competitors also develop NA programs? 8. How does all this attention being paid to the NA program affect WESCO's ability to serve its other customers? 9. What should WESCO do with the NA program? What are your recommendations? Eureka Forbes Ltd: Managing...
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...CASO WESCO DISTRIBUTION, INC 1. What is your action plan? Do you recommend that WESCO be proactive in managing its NA program or would you prefer that WESCO adopt a passive approach? R/ La recomendación para WESCO es re-estructurar su programa NA, definir los costos de atender a un clientes versus el volumen de ventas compra a la compañía, para tener una postura proactiva con aquellos clientes que son de gran importancia para la WESCO y son rentables, para construir relaciones a largo plazo. Por otro lado, los clientes que no tienen un volumen de compras deseado es conveniente asignarle otros vendedores (vendedores de la sucursal correspondiente y no el NAM), para hacerlos un poco mas rentables y poder obtener beneficios de dichos clientes. 2. Where and how does WESCO add value to its suppliers? Its customers? R/ El valor agregado que ofrecía WESCO eran 2 principalmente: reducción de existencias para el cliente – ahorro de energía con sus suministros y que los suministros los encontrara en tiendas WESCO. En la actualidad, el mercado esta exigiendo que las empresas de suministros eléctricos les brinden soluciones integrales, como tener un proveedor para todas la fabricas y que cumpla con todos los suministros. WESCO debe fortalecer sus relaciones con sus proveedores y lograr tener todos los suministros en todas sus sucursales, y además lograr relaciones efectivas con sus clientes y blindarse ante posibles competidores. 3. Why did WESCO start the NA program? What are...
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...HARVARD CASES Case 14 WESCO Distribution, Inc. Synopsis In June 1997, Jim Piraino, VP of marketing for WESCO Distribution, Inc., is preparing for a yearly review meeting with WESCO CEO Roy Haley. Haley wants the firm to reach annual growth goals of 6% to 8% in revenues and 12% to 16% in profitability over the next five years. The centerpiece of this growth strategy is the National Accounts program, which WESCO has developed to serve its major industrial customers in response to recent changes they have made to their business processes. However, as of June 1997, the NA program has not delivered the expected increases in sales and profitability. Jim Piraino has to give Haley his recommendations for the future of the NA program, in particular, whether WESCO should continue to pursue NA business with the intensity it has in the past, or whether to assume a more reactive stance and offer the NA program only when it is requested by current customers. As well, he must account for how WESCO will achieve the desired increases in profitability and overall revenues when its current program already seems to be encountering difficulties in generating the desired numbers. Use Although the "customer" is at the heart of marketing strategy, "effective customer management" is still not a very well understood concept in industrial marketing practice. This case can be used to explore the difficulties encountered in developing and implementing new ways...
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...RELEVANT COST CASES: Problem 1: Judson Company Judson Company makes widgets and wangles, both of which use a polishing machine as part of production. The widgets and wangles have the following price and cost characteristics: | |Widgets |Wangles | |Annual Capacity |1,000 units |2,000 units | |Price per unit |$50 |$100 | |Variable Cost per unit |$20 |$50 | |Annual fixed costs |$10,000 |$10,000 | |Polishing machine hours per unit |1 hour |2 hours | The polishing machine can operate for a total of 3,000 hours during the year. a. What product mix creates the most profit for Judson Company, given all the constraints? b. If there were only machine hour constraints what product mix would create the greatest profit mix for Judson? Problem 2:News.com News.com is a Web site that offers users access to current national and international news stories. News.com doesn’t charge users...
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...Berkshire Hathaway Berkshire Hathaway is a holdings company operated by Warren Buffett and Charles Munger. The company was founded in the 1800’s as a textile mill, and through a series of mergers became known as Berkshire Hathaway. Buffett took control of the company in the 1960’s and transformed it from a failing textile mill into a very successful holdings company. Berkshire Hathaway’s main investments are insurance companies such as GEICO, financial institutions such as Wells Fargo, goods companies such as Coca-Cola, and newspapers such as The Washington Post. The company’s financial situation is very strong, with increasing assets, equity, and revenue. The company has several large competitors such as The Allstate Corporation and BlackRock, Inc., as well as many others. However, Berkshire constantly outperforms not only its competitors, but also the market. Berkshire Hathaway is a holdings company that owns businesses in a variety of business activities. The company was founded in 1839 as a textile mill known as The Valley Falls Company and through a series of mergers became known as Berkshire Hathaway. Warren Buffett, the world’s greatest investor, started buying stock in the company in 1962 (Finkle 2010). By the mid 1960’s, Buffett owned enough of the company to change the management and basically take control of the company. Buffett realized that the textile industry was in a decline, so he used the company as an investment vehicle in addition to its textile...
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...Strategic Audit of Harley-Davidson Current Situation A. Current Performance 2008 ❖ Revenue 2008 $5.59 billion down from $5.73 billion in ❖ Net Income $654.7 million down from $933.8 million i ❖ Earnings per stock share $2.70 down from $3.74 in 20 ❖ Motorcycles sold 303,470 down from 330,619 in 2007 http://investor.harley-davidson.com/ReleaseDetail.cfm?ReleaseID=360949 B. Strategic Posture * Mission ❖ We ride with our customers and apply this deep connection in every market we serve to create superior value for all of our stakeholders. * Objectives * We fulfill dreams inspired by the many roads of the world by providing extraordinary motorcycles and customer experiences. We fuel the passion for freedom in our customers to express their own individuality. * Strategies ❖ Get Cost structure correct ❖Obtain funding for Harley-Davidson Financial Services ❖Invest in the Harley-Davidson Brand ❖ Policies ❖Customers for life.... Harley-Davidson values the deep emotional connection that is created with our customers through our products, services and experiences. We are fueled by brand loyalty and trust that our customers place in us to deliver premium quality and the promise of a fulfilling lifetime ownership experience. We exemplify this commitment by embracing a culture of personal responsibility and stewardship for quality in everything we do. 2. Corporate Governance A. Bo DIRECTORS | JOB...
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...CHAPTER - XIII POWER SECTOR REFORM IN ORISSA: A CASE STUDY IN RESTRUCTURING As per our Constitution, power industry is the combined responsibility of the Central Government and the State Governments. The ESA (Electricity Supply Act) envisaged three kinds of entities in the power-sector: State Electricity Boards (SEBs), generating companies, and licensees. SEBs are allowed to generate, transmit, and distribute electricity within a state; they enjoy all the powers of a licensee. They account for 65 per cent of the power generated in the country. Generating companies are responsible for supplying power to the grid without the specific responsibility of retail distribution. Major players in this category are NTPC (National Thermal Power Corporation), NHPC (the Hydro-electric analogue of NTPC), and NPCIL (Nuclear Power Corporation of India Limited). Though ESA allowed only the governments to set up generating companies till 1991, thereafter it was de-reserved. Independent Power Producers (IPPs) now fall under this category. Existing licensees are private-sector utilities licensed by a State Government for power generation, distribution, or both within a specified area. For example, Gujarat Industrial Power Corporation is only into generation and Central Electricity Supply Corporation (in Orissa) is confined to distribution, whereas Bombay Suburban Electric Supply Limited (BSES) and Tata Electric Company (TEC) are involved both in generation and distribution. The...
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...India Power Sector Reforms Update ____________________________________________________________ __________________________ India Power Sector Reforms Update Issue IV August 2002 (Updates in the period: June 2002 to August 2002) India power sector reforms update is a joint initiative of Prayas, an Indian NGO based in Pune, working on power sector issues for a decade and Public Services International (PSI) which is an international trade union federation, uniting public sector workers in more than 500 trade unions in over 140 countries. Our aim is to monitor the power sector developments in three Indian states of Orissa, Andhra Pradesh and Uttar Pradesh. This is the fourth issue of the update covering three months period from June 2002 to August 2002. First issue was a detailed historical overview covering up to October 2001; second update covered the period from October 2001 to January 2002 while the third update covered February 2002 to May 2002. For better understanding it would be desirable if readers also read the earlier updates. Please direct your suggestions and comments to PSI at psiru@psiru.org. Contents Part I: Overview of the Indian Power Sector Part II: Orissa 1. 2. 3. 4. State Overview Regulatory Intervention Private Sector Generation Private Sector Distribution Part III: Andhra Pradesh 1. 2. 3. 4. 5. State Overview Regulatory Intervention State and Central Utilities Private sector Generation Employees and CSIs Part IV: Uttar Pradesh 1. State...
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...Warren Buffett is Born Warren Edward Buffett was born on August 30, 1930 to his father Howard, a stockbroker-turned-Congressman. The only boy, he was the second of three children, and displayed an amazing aptitude for both money and business at a very early age. Acquaintances recount his uncanny ability to calculate columns of numbers off the top of his head - a feat Warren still amazes business colleagues with today. a fierce critic of the interventionist New Deal domestic and foreign policy, and his wife Leila (née Stahl). Buffett's DNA report revealed that his paternal ancestors hail from northern Scandinavia, while his maternal ancestors hail from Iberia (present-day Spain[15]) or Estonia.[16] It's been also reported that Warren is not related to Jimmy Buffett despite the same surname.[15] Buffett began his education at Rose Hill Elementary School in Omaha. In 1942, his father was elected to the first of four terms in the United States Congress, and after moving with his family to Washington, D.C., Warren finished elementary school, attended Alice Deal Junior High School, and graduated from Woodrow Wilson High School in 1947, where his senior yearbook picture reads: "likes math; a future stockbroker" At only six years old, Buffett purchased 6-packs of Coca Cola from his grandfather's grocery store for twenty five cents and resold each of the bottles for a nickel, pocketing a five cent profit. While other children his age were playing hopscotch and jacks, Warren was making...
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...[pic] General Electric’s Operations Management & its Competitive Advantage in the Global Environment Executive Summary “GE works on things that matter. The best people and the best technologies take on the toughest challenges. Finding solutions in energy, health, home, transportation, and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE Works.” (GE’s company statement)[i] This report will analyze GE’s management of its operations by first listing the various products and services within their operational infrastructure and by breaking down GE’s competitive environment. It will then describe GE’s operational processes. The operational management analysis includes research into product/process designs, outsourcing, quality management, and the role of employees. The impact of GE’s Operations Management Leadership program will also be discussed. This report will conclude with how the management of these processes contributes to the firm’s overall strategy. With its beginnings tracing back to Thomas Edison, General Electric (GE) was founded in 1892. It is the only company that was listed in the Dow Jones Industrial Index both in the late 1800’s and now. At the end of 2011, GE was #6 on the list of Fortune 100 companies with over $125 million in annual revenues. Headquartered in Fairfield, Connecticut and operating in over 100 countries, GE employs...
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...Buffett worked from 1951 to 1954 at Buffett-Falk & Co. as an investment salesman; from 1954 to 1956 at Graham-Newman Corp., as a securities analyst; from 1956 to 1969 at Buffett Partnership, Ltd. as a general partner and beginning in 1970 as Berkshire Hathaway Inc Chairman and CEO. By 1950, at 20, Buffett had made and saved $9,800 (over $96,000 inflation adjusted for the 2014 USD[22]).[23] In April 1952, Buffett discovered that Graham was on the board of GEICO insurance. Taking a train to Washington, D.C. on a Saturday, he knocked on the door of GEICO's headquarters until a janitor admitted him. There he met Lorimer Davidson, Geico's Vice President, and the two discussed the insurance business for hours. Davidson would eventually become Buffett's lifelong friend and a lasting influence,[24] and would later recall that he found Buffett to be an "extraordinary man" after only fifteen minutes. Buffett wanted to work on Wall Street, however, both his father and Ben Graham urged him not to. He offered to work for Graham for free, but Graham refused.[25] Buffett returned to Omaha and worked as a stockbroker while taking a Dale Carnegie public speaking course.[26] Using what he learned, he felt confident enough to teach an "Investment Principles" night class at University of Nebraska-Omaha. The average age of his students was more than twice his own. During this time he also purchased a Sinclair Texaco gas station as a side investment. However, this was not successful.[citation...
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...Buffett Essays Summary Ch1 Corporate Governance 2 Ch2 Finance and Investing 5 Ch3 Investment alternatives 8 Ch4 Common stock 11 Ch5 Mergers and acquisitions 14 Ch6 Valuation and accounting 17 Ch7 Accounting shenanigans 19 Ch8 Accounting policy 21 Ch9 Tax matters 23 Ch1 Corporate Governance Mr. Buffett mentioned some problems existing in annual meetings and possible causes. In most situations, annual meetings are a kind of time waste for shareholders and management, because managers don’t want to express actual accounting conditions to others. Contrary to it, Berkshire’s meetings are different because many thoughtful questions would emerge and are valued to be answered. However, many people won’t be honest in these situations. Companies that provide information also hope to obtain information from other companies. There’s no doubt that people wish enough financial details to make some predictions. But more and more corporate choose “selective disclosure”, which is corrupt behavior about accepted by the whole America. Chairman Levitt cracked down on this kind of behavior. At the same time, Mr. Buffett doesn’t agree that CEO should make too many efforts to make too often predictions, which may cause trouble. For one thing, a much too high growth rate would spread unwarranted optimism. For another, announcing such a high rate might force companies to make some unwise decision. Three advices are provided to investors. Many occupations have their own standard...
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...9-205-056 REV: APRIL 26, 2006 MIHIR A. DESAI VINCENT DESSAIN ANDERS SJÖMAN Nestlé and Alcon—The Value of a Listing Wolfgang Reichenberger, Chief Financial Officer (CFO) at Swiss food giant Nestlé, and Francisco Castañer, Executive Vice President (EVP), stepped into the offices of Peter Brabeck-Letmathe, Chief Executive Officer (CEO). On this day in early September 2001, they had important business to discuss with the company’s CEO. As EVP, Castañer was responsible for the non-food business of the Nestlé Group worldwide. Although Nestlé was primarily known for its food brands—such as Nescafé, Perrier and Buitoni—the company had some select activities in other sectors. Its two largest non-food holdings were in fullyowned eye-care company Alcon, a producer of ophthalmic drugs, equipment for ocular surgery, and contact lens solutions, and a large stake in cosmetics giant L'Oréal. For a while now, Nestlé had discussed carving out a part of Alcon for a public listing. The larger question then, that Reichenberger and Castañer wanted to discuss with Brabeck, was what effect a carve-out would have on Nestlé’s overall valuation. Assuming further that they did list Alcon, two other questions followed suit. First, how should they arrive at an appropriate valuation of Alcon? Second, on what stock exchange should they list their Texas-based, but Switzerland-incorporated, subsidiary: in New York or Zürich? Nestlé, The World’s Largest Food Company At the beginning of the new millennium...
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