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Case Studies by Ludo Van der Heyden

22 case studies

published: 25 Mar 2019

  • Topic: Leadership & Organisations
  • Region: Europe

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Abstract:
The board of directors of a charity has to decide whether to give the acting CFO a permanent appointment. The decision is not a vital one but is so poorly managed that it leads to a blowout between the board members, such that the charity ultimately has to be wound up. The case thus illustrates the vital importance of maintaining positive dynamics among board members.

Pedagogical Objectives:
The objective is to demonstrate the negative consequences of poor handling of a board discussion. The case analyses the shortcomings of the vice-chair of the board using a framework called Fair Process Leadership (FPL), asking participants to estimate how far the precepts of FPL are adhered to. An interesting dimension is to illustrate the fundamental asymmetry of FPL whereby we minimize the unfair way in which we impose leadership on others, while magnifying the unfairness of their leadership when we have to submit to it. The case is typically used as a “practice” case on FPL before turning to more complex settings.

Keywords:
Corporate Governance, Board Dynamics, Fair Process Leadership, Group Decision Making, Not-For-Profit Organization, Non-Executive Directors

published: 27 May 2016

  • Topic: Strategy
  • Industry: Computers and printers
  • Region: North America

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Abstract:
The case presents describes the tumultuous leadership of Carly Fiorina at HP, from her nomination as CEO, then chair, and early attempts at strategic change (a move to buy PwC Consulting) to a major acquisition (Compaq) and ultimately her removal by a board coup. At the time she was fired (and replaced by Mark Hurd from NCR) the share price was rising and results were coming through. During that time, she had a major falling-out with Walter Hewlett, son of the founder and President of the Hewlett Foundation, which owed 10% of HP's stock. She also fell out with Dick Hackborn, the person who had hired her and then offered her the chair position despite doubting - he later admitted - her ability to turn around the company's fortunes.

Pedagogical Objectives:
The case charts the leadership path of Carly Fiorina at the helm of HP, first as CEO coming from Lucent, and soon after as CEO and chair. It can serve multiple purposes. One is to discuss the boardroom dynamics during her term and whether she failed more as CEO or as Chair. The case provides an illustration of the Fair Process Leadership framework, with the conclusion that she was not a fair process leader, and underlines the need to manage the board, particularly in turbulent times. It also allows discussion of the particular governance features of US listed companies. A final angle is whether HP was still a family firm, either in spirit or reality (it no longer was in a legal sense) even when ownership had been been transferred to the foundation.

Keywords:
Governance, Leadership, Ceo Succession, Board - Executive Dynamics, Strategy, M&a, Wicfe, Succession, Next Generation, Education, Entrepreneurship, Leadership, Governance, Parallel Planning, Strategy, Boards

published: 15 Mar 2002

  • Topic: Operations
  • Industry: Heavy Equipment
  • Region: Europe

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Abstract:
This exercise is designed to introduce students to (Q,R) inventory reorder policies, where Q is the order size and R the reorder point. The exercise is motivated by the issues faced by Caterpillar (CAT) in managing its parts warehouse in Europe. The Caterpillar example is based on information obtained from their website, but the numbers utilized in the exercises and assignment are fabricated to achieve the pedagogical objective.

Pedagogical Objectives:
At the end of this exercise, the student should have an understanding of: The issues faced by organizations such as Caterpillar in trying to manage independent-demand inventory systems Continuous-review inventory policies The Economic Order Quantity (EOQ) model (Q,R) inventory reorder policies

Keywords:
Inventory Reorder Policies, Continuous Review Inventory Policies, Economic Order Quantity, Spare Parts Management

published: 31 May 2019

  • Topic: Leadership & Organisations
  • Region: Asia

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Abstract:
This case describes the Tata Group’s governance and the role it played in overseeing 150 years of growth of the Tata empire of companies. The Tata Group is one of India’s premier and oldest industrial and services conglomerates in India. The Tata Trusts (charitable foundations) own two thirds of the Group; private investors own the rest of it. The Mistry family is the largest individual private shareholder. This case describes the evolution of the group’s governance and businesses leading up to the 2012 appointment of Cyrus Mistry, the first non-family group chairman, and the transformations he attempted during his four-year reign before he was suddenly fired by the previous group chairman, Ratan Tata, who continues to be chairman of the Tata Trusts.

Pedagogical Objectives:
This case illustrates how a business is affected and shaped by its governance, whether by family owners, and family or charitable trusts. It shows how owners define and intervene forcefully in governance for better or for worse. The owners’ primary responsibility is to establish clearly articulated and understood mission, values and governance procedures. Any ambiguity in these vital issues presents a “governance risk” and potential value destruction. This case emphasizes the degree to which key family members, rather than the board, play a decisive role in governing family-run businesses.

Keywords:
Corporate Governance, Industrial Groups, Ownership, Value Creation, Governance Risk, Reputation Risk, Internationalization, M&a, Leadership

published: 15 Mar 2002

  • Topic: Operations
  • Industry: Heavy Equipment
  • Region: Europe

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Abstract:
Laurence & Ralph (L&R) is not a case, per se, but a note on the classical Newsboy Problem. This type of problem is exemplary in capacity or inventory economics. It occurs every time a product needs to be ordered or service capacity needs to be set when demand in the forthcoming sales or service period is uncertain. Fundamentally, the inventory decision is equivalent with a capacity decision, as inventory represents a capacity to sell product in the future, while capacity is a form of inventory for future service.

Pedagogical Objectives:
Although the topic is classical, the authors' approach is less so. They do not present the classic newsboy formula utilizing underage and overage costs (Cu and Co, respectively). Instead, they present a mathematically equivalent formula based on a real-option logic, where the cost of the option (C) is the amount that cannot be recovered if the unit is left unsold, (cost ( salvage). This is the capital "at risk" when the option is purchased "that is, when inventory is added. The value from exercising the option (V) is the revenue gained from the sale (revenue) less the exercise price of the option" that is, the salvage value forgone by selling the unit (salvage).

Keywords:
Newsboy Model, Newsperson Model, Independent Demand Inventory, Capacity, Inventory

published: 02 Jul 2002

  • Topic: Operations
  • Industry: Retail – Textile Apparel
  • Region: Global

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Abstract:
The case was written to illustrate the importance of business process design as a basis for competition in the textile industry. The case illustrates the impressive performance of Zara, the new fashion player from Spain, which has innovated in process design so as to deliver new collections in its stores with a lead-time of 5 to 7 days. The more traditional approach in textile retailing is illustrated here by Marks & Spencer (M&S), the well-known UK retailer. Notwithstanding M&S’s current problems, the case does not fall into an overly simple comparison between a young, innovative competitor and an aging glory.

Pedagogical Objectives:
The authors have taught this case both in executive education and in the MBA core class on process and operations management. There are four important concepts that we typically stress, more or less, depending on pedagogical objectives: - Newsvendor losses in the textile industry - The role of postponement in final design - The "lean enterprise" aspect of Zara - Process competition and innovation, embedded in technology evolution

Keywords:
Singapore, Process Competition, Operations Management, Supply Chain, Retail Apparel, Delayed Customisation, Delayed Customization, Time-Based Competition, Newsboy Model, Innovation, Services, Disruptive Technologies

Prizes won:
- 2018 Case Centre Best-selling Case in Production and Operations Management
- 2017 Case Centre Best-selling Case in Production and Operations Management
- 2016 Best Selling Cases In France, Production / Logistique
- 2016 Case Centre Best-selling Case in Production and Operations Management
- 2015 Case Centre Best-selling Case in Production and Operations Management
- 2014 Case Centre Best Selling Case in Production and Operations Management
- 2013 Case Centre Best Selling Case in Production and Operations Management
- 2012 ecch Best Selling Case in Production and Operations Management
- 2011 ecch Best Selling Case in Production and Operations Management
- 2010 ecch Best Selling Case in Production and Operations Management

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published: 28 Feb 2005

  • Topic: Operations
  • Industry: Retail – Textile Apparel
  • Region: Global

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Abstract:
This case was written to illustrate the importance of business process design as a basis for competition in the textile industry. The case illustrates the impressive performance of Zara, the new fashion player from Spain, which has innovated in process design so as to deliver new collections in its stores with a lead-time of 5 to 7 days. The more traditional approach in textile retailing is illustrated here by Marks and Spencer (M&S), the well-known UK retailer. Notwithstanding M&S's current problems, the case does not fall into an overly simple comparison between a young, innovative competitor and an ageing glory. The authors have taught this case both in executive education and in the MBA core class on process and operations management.

Pedagogical Objectives:
There are four important concepts that are stressed, more or less, depending on pedagogical objectives: (1) newsvendor losses in the textile industry; (2) the role of postponement in final design; (3) the 'lean enterprise' aspect of Zara; and (4) process competition and innovation, embedded in technology evolution.

Keywords:
Process Competition, Operations Management, Supply Chain, Retail Apparel, Delayed Customisation, Time-Based Competition, Newsboy Model, Innovation

Related:

published: 01 Dec 2002

  • Topic: Operations
  • Industry: Retail – Textile Apparel
  • Region: Global

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Abstract:
El caso fue redactado para mostrar la importancia del diseño de los procesos de negocio como base para la competencia en el sector textil. El caso muestra los magníficos resultados de Zara, el nuevo actor de la moda en España, que ha innovado de tal forma el diseño de procesos que llega a exponer nuevas colecciones en sus tiendas en un tiempo máximo de 5 a 7 días. El enfoque tradicional en la distribución textil está representado por Marks & Spencer (M&S), la conocida empresa británica. A pesar de los problemas por los que está pasando M&S, el caso va más allá de una simple comparación entre el competidor joven e innovador y la vieja gloria.

Pedagogical Objectives:
Los autores han analizado este caso tanto en educación ejecutiva como en la asignatura común sobre gestión de procesos y operaciones del MBA. Hay cuatro conceptos importantes en los que hacemos hincapié, en mayor o menor medida, dependiendo de los objetivos pedagógicos: - Las pérdidas “del vendedor de periódicos” (Newsvendor problem) en el sector textil - El papel del aplazamiento en el diseño final - La cualidad de Zara como “empresa ágil” - Competencia e innovación de procesos, integradas en la evolución tecnológica

Keywords:
Competencia De Procesos, Gestión De Las Operaciones, Cadena De Aprovisionamiento, Venta De Ropa, Personalización Retrasada, Competencia Por Tiempo, Modelo De Vendedor De Periódicos, Innovación

Prizes won:
- 2016 Case Centre Best-selling Case in Production and Operations Management
- 2015 Case Centre Best-selling Case in Production and Operations Management
- 2014 Case Centre Best Selling Case in Production and Operations Management
- 2013 Case Centre Best Selling Case in Production and Operations Management
- 2012 ecch Best Selling Case in Production and Operations Management

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published: 21 Oct 1999

  • Topic: Strategy
  • Region: Europe

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Abstract:
One observes that despite the continued application of superior personal strategies and leadership throughout Napoleon’s lifetime, success eluded him in the end. A pattern is observed of meteoritic rise in the early stages (victories in the battle of Lodi, Marengo, Austerlitz) and a downfall later (Russian invasion, Waterloo). What is behind this rise and fall? Can any reasonable explanations be found? Exploring these questions is the motivation of this case.

Pedagogical Objectives:
The ultimate aim of the case is to realize that a good strategy should have both good content and good execution. To produce a good strategy, a proper interaction with people or more accurately, a proper decision-making process, during the strategy formulation is critical.

Keywords:
Corporate Governance, Value Creation, Strategy and Implementation

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published: 31 Oct 2008

  • Topic: Strategy
  • Region: Europe

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Abstract:
Alguém observou que, para além da execução contínua de estratégias pessoais superiores e da liderança exercida por Napoleão ao longo da sua vida, no final, o sucesso acabara por lhe escapar. Assim, num primeiro momento, iremos observar o exemplo de uma ascensão meteorítica (vitórias das Batalhas de Lodi, de Marengo e de Austerlitz) e, posteriormente, da sua queda (invasão Russa, Batalha de Waterloo). O que está por detrás desta ascensão e queda? Será que podemos encontrar uma explicação sensata? São estas as questões que motivaram a elaboração deste caso.

Pedagogical Objectives:
Nesse sentido, o objectivo final do caso é o de levar a entender que uma boa estratégia deve conter dois componentes: um bom conteúdo e uma boa execução. A formulação da estratégia é algo de essencial para produzir uma boa estratégia, uma interacção mais adequada com as pessoas ou, mais concretamente, para fomentar um processo de tomada de decisão mais adequado.

Keywords:
Equidade Do Processo, Estratégia, Estratégia Militar, Gestão Dos Conhecimentos, Napoleão Bonaparte, Inovação Do Valor, Estratégia Europeia, Regras Processuais

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