Case Questions
BU481 W 2011
Case 1: ABS Global-Canada
Kenneth Harling
Steve Fried became general manager of ABS Global-Canada with the task of turning
around sales of its principal product, bovine semen, used to artificially inseminate cows.
He made organizational changes and introduced a marketing approach when, in May
2003, a beef cow in Alberta was discovered with Bovine Spongiform Encephalopathy
(BSE). As sales of semen collapsed, he had to decide whether to maintain the priorities of
his turnaround program.
The preparation questions for the case are:
1. Is there a market opportunity for RMS in Canada? Does it provide a sustainable
competitive advantage?
2. If you were Fried, would you have taken the job of Canadian General Manager
for ABS?
3. How well has Fried done taking charge of ABS-Global (Canada)
4. As Fried, what would you tell the board of directors meeting in August 2003?
Case 2: SciCan Scientific Inc.: Sell-Out or Persist?
Sofy Carayannopoulos
SciCan operated within the scientific glassware industry, producing disposable laboratory
glassware. Paul Richards, the President of SciCan Scientific Inc., had struggled since
1972 to make the company a success, but the combination of lost business and union
conflicts brought him to the point where he wondered if he should close down the
company or sell it--Chase Scientific had approached him several times in the past to buy
the company.
The preparation questions for the case are:
1. Describe the strategy diamond of the company
2. What are the implications of the environment in which SciCan competes
3. How serious is the union problem in SciCan?
4. What do you recommend that Richards do?
Case 3: Chateau des Charmes Wines Ltd.
Ruth Cruikshank and Kenneth Harling
Paul Bosc Senior is the founder and principle owner of the boutique winery, Chateau des
Charmes. He wants to replace the current winery with a new chateau “in the French
style”. He asked his son, Paul Bosc Junior, to assess whether the new winery should be
built. In making a recommendation, the son must consider the management, marketing,
production, and financial implications of building the chateau.
The preparation questions for the case are:
1. What is the strategy of the company?
2. Is the expansion decision a strategic decision? Why or why not?
3. Address the resource issues you think Paul Jr. should consider as he evaluates the
expansion decision?
4. What should Paul Jr. recommend to his father?
Case 4: Mactara Limited and the Wood Products Industry in Nova Scotia
Julia Sagebien and Rick Shaver
Rick Shaver is controller of MacTara Limited was the largest wood products company in
Nova Scotia. He was leading the strategic planning committee as it considered what to do
given the increasing competitive pressure on the Canadian lumber industry. MacTara
was vertically integrated corporation so making changes in one business would affect its
other businesses.
The preparation questions for the case are:
1. What are the political, economic, ecological, social and technological forces
affecting the industry?
2. What are the strategic options open to the business?
3. What should the planning committee recommend that the company should do?
Case 5: Plant Nutrients Inc.
Tom Funk and Kenneth Harling
Brian Dunwoodie was the general manager of Plant Nutrients Inc., a medium-sized
retailer of crop supplies. He had to prepare a budget that reflected increased revenue of
two per cent while maintaining the required 13 per cent on investment in business.
Alternatives he was considering were getting better utilization of fertilizer blending
capacity, adding a new line of seed, adding precision agriculture services, and simply
raising prices.
The preparation questions for the case are:
1. How well is the business performing
2. What should Dunwoodie do to achieve the performance desired.
3. Given the specific changes you recommend, project the impact on performance of
the business
Case 6: H&R Sewing Machine Co.
Stephen Hummel and Kenneth Harling
H&R distributes sewing equipment across Canada. Its future is in jeopardy because the
relaxation of in trade barriers for textiles and garments have produced fundamental
changes in the global sewing industries. While H&R's performance has declined, the
management of this family-owned company had trouble seeing the challenge because of
past success. Now Andrew Rosenfeldt, from the third-generation and new manager of the
business, has to decide what to do to save the company.
The preparation questions for the case are:
1. What is the outlook for the Canadian industries using sewing technology and what
are the implications for their suppliers?
2. What is happening to manufacturers of sewing machines? What are the
implications for the firms that distribute this technology to users, such at H&R
and its competitors?
3. What are the strengths and weaknesses of H&R’s management preferences,
organization, and resources?
4. Which of the three options would you choose and why? If there is another option,
what is it and why is it superior?
Case 7: Gammon Lake Resources Inc.
Erna van Duren
In 2006, Gammon Lake was a mid-tier mining company engaged in the exploration and
development of gold and silver deposits in Mexico. That year Fred George, its chairman
and president set about evaluating the value of the company in light of changes made
with the acquisition of Mexgold in 2006 and updated results on reserve following the
2004 and 2005 exploration drilling program.
The preparation questions for the case are:
1. Describe Gammon Lake’s strategy.
2. How have past economic and political events influenced the mining industry in
Mexico? As a result, how could Gammon Lake’s current prospects be affected?
How do current political and economic factors affect the company’s strategy?
3. What challenges do you anticipate Gammon Lake’s management will face as they
make the transition from exploration to development and production?
4. Using Table 6 as a guide, develop an optimistic and negative scenario that
Gammon Lake management Note: this requires you to identify factors of
influence
5. What should Gammon Lake do going forward?
Case 8: Super AM Food Markets
Kenneth Harling
Ted Edwards was the general manager of Super-AM Food Markets, a banner of EXPOAM. The banner’s business model, which had been used successfully in England, was
adjusted and introduced in Rochester, Massachusetts. After failing to produce expected
results, Edwards was asked to prepare a turnaround plan for the banner after it has shown
poor performance.
The preparation questions for the case are:
1. Does the Super AM concept make sense for the Rochester market?
2. What explains the performance of the concept in the Rochester market? Make
sure that you consider both internal and external factors.
3. What should Edwards recommend to top management regarding Super AM?
Case 9: NuComm International: Making a Call on China
Detlev Nitsch and Tupper Cawsey
NuComm provided call center services for other companies. It was headquartered in St.
Catharines, Ontario and had established its first offshore operation in Manila in 2007.
Then Real Bergevin, the CEO, considered further expansion into China. Decisions
included selecting a location (Beijing, Dalian, Hong Kong, or Shanghai), as well as a
mode and scale of entry. Meanwhile the financial situation of the company was
deteriorating.
The preparation questions for the case are:
1. Is Duncan Cowie right in his view that China is an “ideal market” for NuComm?
Is this the right time to enter?
2. Assess Cowie’s five-step entry strategy for China. Does the sequence make
sense?
3. What are the risks facing NuComm in entering China at this time?
4. Which of the possible Chinese locations should the company choose, and what
should be the mode of entry?
Case 10: Novelis, Alcan's Spin-off: Staying Competitive?
Shalini and Sumit Kumar Chaudhuri
Novelis was created in 2004 when Alcan, a Canadian aluminium company,spun off its
rolled products business as a separate business. This became necessary so Alcan could
satisfy European Union after its acquisition of Pechiney. a French aluminium company.
Novelis then found itself struggling to stay competitive as it found itself saddled $2.95
billion in debt, rising energy costs, and metal price ceilings.
The preparation questions for the case are:
1. What is the rationale behind the Spin off of Novelis from Alcan?
2. How can Novelis compete in the global rolled products business?
Case 11: Ganong Bros. Limited
Vanessa M. Strike and Eric Morse
David Ganong was president of Ganong Bros. Limited, a fifth-generation family
chocolate company in located in St. Stephen, New Brunswick. For two successive years
the company had lost money. After the first year David had told the board that he had a
plan for turning around performance. With losses for a second year it is imperative that
David present the board with a revised plan that will create profits.
The preparation questions for the case are:
1. As David Ganong, what is your analysis of the situation?
2. What key “historic” considerations need to be considered in your business
planning?
3. What is your best strategic option and why?
4. What are you going to tell the board?
5. What are your options if the board does not support your proposal?
Case 12: Zarlink Semiconductor Inc.
Kenneth Harling and Stephen Hummel
Zarlink, which began history as Mitel, had been struggling since the telecom crash of
2001.
In 2008 dissident shareholders challenged the existing board and management. They
argued for major changes in both. The conflict came to a head with a shareholders’ vote
to determine whether change would occur.
The preparation questions for the case are:
1. What is the strategy of the business and how has it changed over time? Why has it
changed over time?
2. How well has the business performed over time?
3. Is the board well set up to oversee governance of the management of the
company? Explain your view
4. Has the board done a good job of governing the management of the business?
5. Are you going to vote in favour of the incumbent management and board or in
favour of the proposal by the incumbents. Provide your justification for your
vote.