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Case Studies on Strategy S T R A T E G Y – II 1 www.ibscdc.org Business Divisions; Hanjin Group; declined by 5% from that of 2004. This Airfreight; Air Cargo; Corporate case looks into the difficulties that AOL Restructuring; Fatal Accidents - Safety faced due to its primarily subscription- Korean Air: Chairman/CEO Constraints; OECD; SkyTeam Alliance; based revenue model, and the reasons for Family-owned Business Conglomerates; this shift in strategy. Yang-Ho Cho’s Radical Cargo Shipping Transformation Pedagogical Objectives A series of fatal accidents, coupled with • To discuss the subscription based business operational inefficiencies snowballed Dell Back to the Future? model of AOL Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ On January 31st 2007, Dell announced the • The reasons behind declining revenues ransformation ransformation ransformation ransformation ransformation Chairman, Yang-Ho Cho undertook various resignation of Kevin Rollins (Rollins) as transformation initiatives - for instance, the CEO, and founder Michael Dell • Whether free services model can help improving service quality and safety (Michael) took over as the next CEO. the company revive? Since mid-2005, Dell had problems with standards, technology integration, Industry Entertainment customer service, quality and the upgrading pilot training, better business Reference No. COT0008K effectiveness of its direct sales model. focus; putting in place a professional Year of Pub. 2006 Lately, Hewlett Packard, a competitor to management team, improving corporate Teaching Note Not Available Dell, has gained on Dell and occupied the image through sponsorship marketing, etc. Struc.Assig. Not Available No.1 spot as a PC vendor. During Rollins' Corporate T Corporate T Corporate T He gave a new corporate direction in the Corporate T Corporate T form of '10,10,10' goal. However, Korean tenure Dell also faced investigations of the Keywords Air is held up by a slew of challenges. Among SEC for accounts irregularities. Michael America On-line (AOL); Corporate which are inefficiencies of - Chaebol system faced an uphill task to take the company Transformation Case Study; On-line of management, possible clash of its cargo to the No. 1 position, where it was when advertising; Subscription; Internet service business with its own shipping company, he had left. Analysts felt that it would not provider (ISP); Broadband; Dial-up; Media limited focus on the domestic market and be easy for Michael to comeback, although growing competition from LCCs. How they felt that he would be the only person would Korean Air manage growth as a who could revive Dell. family-owned conglomerate? The case The Downfall of Polaroid: offers enriching scope for analysing a Pedagogical Objectives Corporate Lessons(Part B) family business’s turnaround strategies, with • The kind of leadership traits essential all the legacy costs involved. In October 2001, Polaroid Corporation, to become successful in the competitive the pioneer of instant photography filed IT industry for federal bankruptcy protection under Pedagogical Objectives Chapter 11 bankruptcy protection. Though • How Michael Dell's strategies enabled it was a global brand name in 2007, the • To discuss the (operational) dynamics the company to become the top PC corporate entity of this pioneer got lost in of Korean Chaebols - their influence/ vendor effects on the country’s industrial sector the way. and the economy as a whole • The difference between the strategies Founded in 1937 by Edwin Land, Polaroid of Michael Dell and Kevin Rollins and entered the imaging industry in 1948 with • To analyse how family-owned businesses to understand the importance of advent of first ever instant camera. manage the transition phase - from a succession planning supplier-driven economy to a demand- Polaroid soon developed a cult status for driven economy • Whether Michael Dell will be able to instant cameras. But soon its golden years revive Dell with his new plans. got over. In late 1980s, the digital • To identify all the possible reasons for technology revolutionized the picture Korean Air’s turbulent times and Industry Personal Computers taking industry. Polaroid under the assessing whether they are controllable Reference No. COT0009B influence of its immensely valued core or not Year of Pub. 2007 business of instant photography could not Teaching Note Available anticipate magnitude of challenges from • To critically evaluate Korean Air’s Struc.Assig. Available transformation efforts - in terms of Digital evolution and it also entered in the growth, productivity and cost cuts, Keywords game late. The company not only failed especially the efficacy of '10,10,10' goal to position itself in digital imaging but also Michael Dell; Kevin Rollins; Dell in a family-run business lost its drive for instant photography. Corporation; Direct Sales Model; PC • To identify various challenges to Korean Market; AMD processor; Corporate In spite of being a research-and- Air in sustaining growth and finding ways Transformation Case Study; Intel development-driven company, Polaroid to overcome them. processor; HP; Dell 2.0; Acer; Dell Connect; could not save its technology driven core Entrepreneur; Supply Chain; Laptop business of instant cameras. In October Industry Aviation 2001, the corporation after bankruptcy Reference No. COT0010 sold most of the business (including the Year of Pub. 2007 “Polaroid” name itself and non-bankrupt Teaching Note Available AOL: The Shift Towards Free foreign subsidiaries) to One Equity Partners Struc.Assig. Available Services (OEP), a partner of Bank One Corporation. Although OEP Imaging Keywords In a conference call held in August, 2006, Corporation changed its name to Polaroid America Online (AOL) announced that it Holding Company (PHC), the original Chaebols System; Civil Aviation; South would make most of its premium services Polaroid Corporation changed its name to Korea; '10,10,10' Goal; Growth, available free of cost. The company had Primary PDC Inc. In April 2005, Petters Productivity and Cost Cuts; Corporate lost 2.8 million subscribers in US in 2005, Group Worldwide (PGW) announced its Transformation Case Study; Cross- while its revenue in the same year had shareholdings; Clash of Interests in acquisition of PHC for US$426 million. 2 www.ibscdc.org The case details the evolution and growth foreign subsidiaries) to One Equity Partners • To understand the competitors S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G S T R A T E G Y – II of Polaroid as a corporation and a brand. (OEP), a partner of Bank One marketing strategies S T R A T E G Y – II It ends on a debate over a question of Corporation. Although OEP Imaging Polaroid's success as a brand vs its failure Corporation changed its name to Polaroid • To analyse HP’s marketing campaign in as a corporate entity. Holding Company (PHC), the original comparison to its competitors Polaroid Corporation changed its name to • To analyse HP’s focus on Integrated Pedagogical Objectives Primary PDC Inc. In April 2005, Petters Marketing. Group Worldwide (PGW) announced its • To understand the importance of acquisition of PHC for US$426 million. Industry Personal Computers peripheral vision Reference No. COT0005K The case details the evolution and growth Year of Pub. 2006 • The importance of innovation in a of Polaroid as a corporation and a brand. Teaching Note Not Available dynamic industry like imaging It ends on a debate over a question of Struc.Assig. Not Available • To discuss why Polaroid a globally Polaroid's success as a brand vs its failure successful brand failed as a corporate as a corporate entity. Keywords entity. Pedagogical Objectives HP; PC; Dell; IBM; Canon. Industry Photographical & Digital Equipments • To understand the importance of Reference No. COT0007A peripheral vision ABB India: Gaining Power Year of Pub. 2007 Teaching Note Not Available • The importance of innovation in a The top line of ABB India, a 52% subsidiary Struc.Assig. Not Available dynamic industry like imaging of ABB Global, Switzerland, was Rs. 8068 million in the year 2000. However, it was Keywords • To discuss why Polaroid a globally successful brand failed as a corporate struggling to grow both in terms of revenues Polaroid; Corporate Transformation Case entity. and profits, and at the same time its parent Study; Instant Photography; Edwin Herbert was in trouble with constant restructuring. Land; Innovation; Core Business; Business Industry Photography ABB India at that time was required to Strategy; Patents; Product Development; Reference No. COT0006A contribute more to the groups bottom-line Product Positioning; Technological Year of Pub. 2007 and hence in September 2001, Jurgen Change; Change Management; Teaching Note Available Dormann, CEO, ABB Global brought back Organisational Inertia; 'Chapter 11' Struc.Assig. Not Available Ravi Uppal from Volvo India to become Bankruptcy; Takeover and Acquisitions; the country head for ABB India. This case Leadership Styles; Financial Restructuring; Keywords details the leadership style of Ravi Uppal Digital Imaging and Competition; Kodak and the restructuring initiatives he started Polaroid; Instant Photography; Edwin at the company. This case takes an inside Herbert Land; Innovation; Core Business; look at ABB’s unprecedented Business Strategy; Patents; Product transformation under Ravi Uppal. ABB The Downfall of Polaroid: Development; Product Positioning; India was focusing on extensive use of Corporate Lessons(Part
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