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Case Studies by Laurence Capron

15 case studies

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Abstract:
At the BMW Group, Gregor Gimmy, a serial entrepreneur and former consultant, introduces the Venture Client (VCL) model to engage with start-ups and boost corporate innovation. The case discusses its initial success at BMW and the rationale that drove Gimmy to establish a new model of external corporate venturing (ECV). It also provides background information on the key forces shaping the auto industry today, the challenges faced by legacy automakers as technological developments accelerate, and the emergence of new rules and new players.

Pedagogical Objectives:
The case can be used for many different audiences and contexts including MBA, executive MBA, undergraduate courses and executive programmes on Competitive Strategy, Innovation Strategy and Process, Digital Disruption, Digital Transformation, Customercentricity, Consumer Behaviour, Smart Ecosystems and Value Creation.

Keywords:
Competitive Strategy, Innovation Strategy, Innovation Process, Digital Disruption, Digital Transformation, Customercentricity, Consumer Behaviour, Smart Ecosystem, Value Creation, Bmw, Automanufacturing, Corporate Venture Capital, Start-Up, External Corporate Venturing

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published: 02 May 2019

  • Topic: Strategy
  • Region: Europe

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Abstract:
At the BMW Group, Gregor Gimmy, a serial entrepreneur and former consultant, introduces the Venture Client (VCL) model to engage with start-ups and boost corporate innovation. The case discusses its initial success at BMW and the rationale that drove Gimmy to establish a new model of external corporate venturing (ECV). It also provides background information on the key forces shaping the auto industry today, the challenges faced by legacy automakers as technological developments accelerate, and the emergence of new rules and new players.

Pedagogical Objectives:
The case can be used for many different audiences and contexts including MBA, executive MBA, undergraduate courses and executive programmes on Competitive Strategy, Innovation Strategy and Process, Digital Disruption, Digital Transformation, Customercentricity, Consumer Behaviour, Smart Ecosystems and Value Creation.

Keywords:
Competitive Strategy, Innovation Strategy, Innovation Process, Digital Disruption, Digital Transformation, Customercentricity, Consumer Behaviour, Smart Ecosystem, Value Creation, Bmw, Automanufacturing, Corporate Venture Capital, Start-Up, External Corporate Venturing

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published: 03 Jul 2017

  • Topic: Strategy
  • Industry: Telecom and networking equipment
  • Region: North America

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Abstract:
The case first describes the evolution of Cisco Systems of San Jose, California, from a narrowly-focused routing and switching equipment vendor, with a highly effective competitive strategy, into a diversified networking and IT giant. This growth was fuelled by many acquisitions, the rationale of which developed over time, in light of the growth opportunities and challenges which Cisco encountered. The events described in the case took place in early 2007, while Cisco was considering the acquisition of IronPort, a security software company. A decision to purchase IronPort would symbol a continual divergence from Cisco’s old and famous acquisition strategy of acquiring young entrepreneurial firms, to complement its internal development efforts and become a one-stop-shop for its networking customers. This divergence started a few years earlier, with the acquisition of large firms like Linksys and Scientific Atlanta, labeled by Cisco’s management as “platform” deals.

Pedagogical Objectives:
This case can be taught in courses on corporate strategy, mergers and acquisitions, and general management. It contains ample data to discuss Cisco?s strategy and its contingent approach towards acquisitions. It provides insights into implementation issues involving processes and routines underlying the various phases of the acquisition process from target selection to post-merger integration. In particular, this case can be taught with a specific focus on post-acquisition integration (providing an interesting setting to apply the Haslespagh and Jemison?s integration matrix- absorption, symbiosis and preservation).

Keywords:
Mergers and Acquisitions, Corporate Development, Post-Merger Integration, Corporate Strategy, High-Tech Acquisition

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published: 26 Sep 2016

  • Topic: Strategy
  • Industry: Two-wheeler market
  • Region: Asia

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Abstract:
This case provides an update of Hero Group and Honda Motor Company’s strategies in the two-wheeler market in India following the break-up of their joint venture. It enables the reader to understand the capability building approach for each partner post-alliance dissolution and to reflect on the dynamics of relationships between two former allies turned rivals. It is a good complement to earlier cases written during the life cycle of this 26-year alliance.

Pedagogical Objectives:
The purpose of the case is to illustrate: (a) the challenges of managing post-alliance break up and building up capabilities (b) to reflect on the challenging of managing challenges in alliances in emerging markets -when used a complement with former cases (c) the different challenges of closing resource gaps with external partners

Keywords:
Alliance Dynamics and Termination, Post-Alliance Break-Up, Capability Building

published: 25 Mar 2013

  • Topic: Strategy
  • Industry: Construction and Engineering
  • Region: Global

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Abstract:
AMEC is a UK stock listed company, specialized in engineering services, and globally active. Between 2005 and 2010 it divested half of its business and doubled its value. Under pressure from the financial markets, AMEC needs to decide what to do next.

Pedagogical Objectives:
1. To examine the drivers of portfolio restructuring. 2. To examine the influence of the financial markets on a firm's corporate strategy. 3. To examine the trade-offs between a focused or expansive portfolio.

Keywords:
Corporate Strategy, Mergers and Acquisitions, Scope of the Firm, Value Creation, Vertical Integration, Dividend Policy, Market Pressure, Construction and Engineering

published: 28 Jan 2013

  • Topic: Economics & Finance
  • Industry: Telecom
  • Region: North America

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Abstract:
Bell Canada, a publicly listed Canadian telecom firm, receives takeover offers from LBO (leveraged buyout) firms. A strategic acquirer, Telus, is also potentially interested. The case describes the synergies and efficiency gains available to both types of acquirer, which allows for a discussion about the respective contributions that a financial buyer (PE/LBO firm) and a strategic acquirer could bring to the target firm.

Pedagogical Objectives:
(1) To examine the rationale for firms to go through an LBO – industry, financial, resource-based drivers. (2) To compare and contrast the sources of value creation generated by financial vs. strategic buyers. (3) To examine the strategy, notably the internal restructuring actions, that a target can deploy when facing an LBO “threat”. (4) To perform a financial valuation of BCE: (i) as a stand-alone firm (DCF); (ii) with a strategic buyer (DCF); (iii) with a financial buyer (APV). (5) To discuss the role of the different stakeholders (shareholders, managers, bondholders) and how they capture value through an LBO.

Keywords:
Lbo, Financial Buyers, Strategic Buyers, Value Creation in M&as, Financial Restructuring, Synergies, Bondholders, Governance, Corporate Governance, Value Creation, Strategy and Implementation

published: 30 Jan 2012

  • Topic: Strategy
  • Industry: Financial services
  • Region: Europe

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Abstract:
After the transformation of Lloyds Bank from an unfocused and underperforming group to a focused highly-performing bank under Brian Pitman (1983-1996), the incoming CEO takes on the challenge of redefining the bank’s strategy and operations, facing difficult choices regarding the firm’s scope and internationalization. Ultimately, Lloyds’s board of directors end up facing significant corporate governance issues with long-term implications for the future of the company.

Pedagogical Objectives:
1.To examine the transformation of a business portfolio and the drivers of portfolio choices - financial, resource-based and industry-based criteria. 2.To examine the role of corporate parents in defining a) the overarching governing principle, b) the corporate domain, c) the value creation logic, d) the organizational context of their company. 3.To discuss the role of the CEO in shaping corporate strategy, capability development, and organizational and cultural fit. 4.To examine the role of value-based management in shaping corporate strategy. 5.To examine the tensions between managers and shareholders, notably in mature markets, between short-term and long-term objectives, as well as between exploitation and exploration. 6.To discuss the role of the board of directors in managing the tension inherent between finding and sustaining a profitable growth path on the one hand, and the risk parameters posed by overly aggressive growth plans on the other.

Keywords:
Corporate Strategy, Value-Based Management, Corporate Governance, Diversification Strategy, Financial Services, Leadership, Corporate Governance, Value Creation, Strategy and Implementation, European Competitiveness, Europe

Related:

published: 30 Jan 2012

  • Topic: Strategy
  • Industry: Financial services
  • Region: Europe

Show details ...

Abstract:
After the transformation of Lloyds Bank from an unfocused and underperforming group to a focused highly-performing bank under Brian Pitman (1983-1996), the incoming CEO takes on the challenge of redefining the bank’s strategy and operations, facing difficult choices regarding the firm’s scope and internationalization. Ultimately, Lloyds’s board of directors end up facing significant corporate governance issues with long-term implications for the future of the company.

Pedagogical Objectives:
1.To examine the transformation of a business portfolio and the drivers of portfolio choices ? financial, resource-based and industry-based criteria. 2.To examine the role of corporate parents in defining a) the overarching governing principle, b) the corporate domain, c) the value creation logic, d) the organizational context of their company. 3.To discuss the role of the CEO in shaping corporate strategy, capability development, and organizational and cultural fit. 4.To examine the role of value-based management in shaping corporate strategy. 5.To examine the tensions between managers and shareholders, notably in mature markets, between short-term and long-term objectives, as well as between exploitation and exploration. 6.To discuss the role of the board of directors in managing the tension inherent between finding and sustaining a profitable growth path on the one hand, and the risk parameters posed by overly aggressive growth plans on the other.

Keywords:
Corporate Strategy, Value-Based Management, Corporate Governance, Diversification Strategy, Financial Services, Leadership, Corporate Governance, Value Creation, Strategy and Implementation, European Competitiveness, Europe

Related:

published: 30 Jan 2012

  • Topic: Strategy
  • Industry: Financial services
  • Region: Europe

Show details ...

Abstract:
After the transformation of Lloyds Bank from an unfocused and underperforming group to a focused highly-performing bank under Brian Pitman (1983-1996), the incoming CEO takes on the challenge of redefining the bank’s strategy and operations, facing difficult choices regarding the firm’s scope and internationalization. Ultimately, Lloyds’s board of directors end up facing significant corporate governance issues with long-term implications for the future of the company.

Pedagogical Objectives:
1.To examine the transformation of a business portfolio and the drivers of portfolio choices ? financial, resource-based and industry-based criteria. 2.To examine the role of corporate parents in defining a) the overarching governing principle, b) the corporate domain, c) the value creation logic, d) the organizational context of their company. 3.To discuss the role of the CEO in shaping corporate strategy, capability development, and organizational and cultural fit. 4.To examine the role of value-based management in shaping corporate strategy. 5.To examine the tensions between managers and shareholders, notably in mature markets, between short-term and long-term objectives, as well as between exploitation and exploration. 6.To discuss the role of the board of directors in managing the tension inherent between finding and sustaining a profitable growth path on the one hand, and the risk parameters posed by overly aggressive growth plans on the other.

Keywords:
Corporate Strategy, Value-Based Management, Corporate Governance, Diversification Strategy, Financial Services, Leadership, Corporate Governance, Value Creation, Strategy and Implementation, European Competitiveness, Europe

Related:

published: 25 Mar 2010

  • Topic: Strategy
  • Industry: Telecom and networking equipment
  • Region: North America

Show details ...

Abstract:
The case first describes the evolution of Cisco Systems of San Jose, California, from a narrowly-focused routing and switching equipment vendor, with a highly effective competitive strategy, into a diversified networking and IT giant. This growth was fuelled by many acquisitions, the rationale of which developed over time, in light of the growth opportunities and challenges which Cisco encountered. The events described in the case took place in early 2007, while Cisco was considering the acquisition of IronPort, a security software company. A decision to purchase IronPort would symbol a continual divergence from Cisco’s old and famous acquisition strategy of acquiring young entrepreneurial firms, to complement its internal development efforts and become a one-stop-shop for its networking customers. This divergence started a few years earlier, with the acquisition of large firms like Linksys and Scientific Atlanta, labeled by Cisco’s management as “platform” deals.

Pedagogical Objectives:
This case can be taught in courses on corporate strategy, mergers and acquisitions, and general management. It contains ample data to discuss Cisco?s strategy and its contingent approach towards acquisitions. It provides insights into implementation issues involving processes and routines underlying the various phases of the acquisition process from target selection to post-merger integration. In particular, this case can be taught with a specific focus on post-acquisition integration (providing an interesting setting to apply the Haslespagh and Jemison?s integration matrix- absorption, symbiosis and preservation).

Keywords:
Mergers and Acquisitions, Corporate Development, Post-Merger Integration, Corporate Strategy, High-Tech Acquisition

Prizes won:
- 2015 Case Centre Best-selling Case in Strategy and General Management

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