• Customer profitability analysis and value based management at Barclays Bank

      Slagmulder, Regine; Mukherjee, J. (2004)
      In response to the intensified competition in the banking industry, Barclays adopted a Value Based Management (VBM) programme to align decision making at all levels in the organisation with the interests of its shareholders. Under the umbrella of this VBM programme the Bank introduced a new approach to identifying and effectively managing its high-value customers. The case shows how the new customer value measurement tool had a significant impact on managerial decision making and how it was supported by value-based sales incentives. The purpose of the case is to provide an illustration of customer profitability analysis in the context of a 'managing for value' initiative at a leading European bank. The case shows how the Bank's external financial goal of top quartile shareholder return was translated into an internal focus on economic profit, which in turn was cascaded to the front line through value-based sales targets. The objective of the case discussion is to explore the benefits and challenges of adopting a value-aligned performance measurement tool to help the salesforce identify high-value customers and take action to boost customer profitability and create shareholder value.
    • Pine Products Inc: Value drivers and the balanced scorecard

      Slagmulder, Regine; Young, D. (2004)
      The case describes how Pine Products, a formerly state-owned company in the chemicals industry, transformed itself into a high-performance organisation following its privatisation. It highlights the need for the company to redesign its performance measurement and reward systems in line with the Value-Based Management (VBM) philosophy implemented by the holding company. The case centres on the issue of how the day-to-day operating activities of the business can be linked to the Group's value- creating mission through a set of actionable value drivers and performance indicators that tie into Economic Value Added. The primary purpose of the Pine Products case is to allow an informed discussion about how to design a performance management system that supports the implementation of VBM across all levels of the organisation and that focuses people's attention on the key drivers of economic profit. The broader purpose is to illustrate how aggressive implementation of the shareholder value-creation imperative under VBM can lead to radical corporate transformation.
    • Hewlett-Packard: Performance Measurement in the Supply Chain

      Slagmulder, Regine; Grottoli, D.; Van Wassenhove, L. (2004)
      This is a condensed version. In a maturing market, Hewlett-Packard's (HP) attention moved from Return on Sales to Return on Net Assets. Mismatches between demand and supply, aggrevated by a long supply chain, were a burden on profit. HP realised that conventional logistics costs (warehousing, inventories, transport) were only the tip of the iceberg. Hidden underneath were large costs due to price protection, material devaluation, returns and obsoletes (Inventory Driven Costs). Uncovering all true demand/supply mismatch costs allowed HP to redress the situation and restore competitiveness. The case aims to illustrate the strategic impact of supply chain management and the increasing cost of supply/demand mismatches. To enable sound decision making (eg in prioritising supply chain improvement projects), a clear link needs to be established between supply chain performance indicators and bottom-line impact.
    • Strategy and performance management at DSM

      Haspeslagh, Philippe; Slagmulder, Regine; Bloemhof, M. (2004)
      The case describes the strategic planning process and performance management system implemented at DSM, a global chemical company. In particular, it describes how the company's value based business steering system is designed to create alignment between strategy formulation and execution through strategic value contracts. The case illustrates the performance management process in action at one of the business groups. It highlights managers' dilemma between continuing to pursue the current business strategy which is in line with corporate strategy, versus responding to the financial pressures exerted by the new value based management approach which would require a radical change in strategy. The case allows students to discuss the various elements of DSM's value based management (VBM)-inspired strategy and performance management processes, and how they impact one of the business groups' efforts to improve performance. The class can analyse the strengths and weaknesses of the company's approach to aligning its strategic planning and financial management processes by introducing strategic value contracts. Finally, the case shows how DSM distinguishes between performance indicators to monitor strategy implementation, and value drivers to measure economic value creation.
    • Taking the commodity bull by the Horns: The Success of the PCBShop.com - Case Study

      Muylle, Steve; De Schryver, Veerle (2004)
      This case describes the entrepreneurial process, as it happened for a manufacturer of printed circuit boards. It exemplifies: (1) the interplay between lucrative opportunities, entrepreneurial team and resources, (2) addresses the role of the global marketplace for entrepreneurs, (3) highlights the successful shift by the manufacturer to electronic business to break the product commodity cycle, and (4) puts forward franchising as a potential growth strategy. The intended teaching objective of the case is to challenge students in framing and unravelling key issues involved in the start-up and growth years of an emerging venture. In doing this, the case makes students focus on entrepreneurship, while also addressing related issues in manufacturing, marketing, and electronic business. The teaching note was written by Steve Muylle and Dirk De Clercq.
    • Taking the commodity bull by the Horns: The Success of the PCBShop.com - Teaching Note

      Muylle, Steve; De Clercq, Dirk (2004)
      This case describes the entrepreneurial process, as it happened for a manufacturer of printed circuit boards. It exemplifies: (1) the interplay between lucrative opportunities, entrepreneurial team and resources, (2) addresses the role of the global marketplace for entrepreneurs, (3) highlights the successful shift by the manufacturer to electronic business to break the product commodity cycle, and (4) puts forward franchising as a potential growth strategy. The intended teaching objective of the case is to challenge students in framing and unravelling key issues involved in the start-up and growth years of an emerging venture. In doing this, the case makes students focus on entrepreneurship, while also addressing related issues in manufacturing, marketing, and electronic business. The teaching note was written by Steve Muylle and Dirk De Clercq.
    • Royal Bank of Canada: Creating profitable relations with small business clients

      Slagmulder, Regine; Grottoli, D. (2005)
      Royal Bank of Canada or RBC, Canada's largest financial services group, is at the forefront of customer profitability analysis. The case illustrates how RBC uses customer profitability data to identify profit opportunities and make strategic decisions about its customer mix. In particular, it illustrates how the new customer-level information enabled RBC to recognise the untapped profit potential of its small business client portfolio. The purpose of this case is to illustrate how financial institutions like RBC can use customer profitability analysis to identify and enhance the profit potential of its various customer segments. The case describes the elements of RBC's customer value metric and how the bank reaped the benefits from targeted sales and marketing efforts informed by the customer-focused profitability analysis.
    • Causes of company failure and failure paths: The rise and fall of a producer of industrial foils and bags

      Ooghe, Hubert; Waeyaert, Nick (2005)
      One of the prevalent concerns in present times, for both management academics and practitioners, relates to the principles which determine corporate success and failure. Although many models discover early symptoms of failure by using financial information, there is a lack of a deeper insight into the real causes of company failure and into the way they influence each other. The symptoms one can discover in the annual accounts are the consequence of a process that generally started long before. This case study of IFoil, once a leading European producer of industrial foils, biodegradable packing materials and bin bags, describes the rise and fall of a firm with an ambitious but risky strategy. This strategy proceeded from a management buy-out in 1996 and ended with a failure in 2003. In the case, we aim to analyse and describe IFoil's causes of failure and failure path in detail.
    • Total Cost of Ownership of the procurement process at Hydrogen Cyanide Company

      Roodhooft, Filip; Van den Abbeele, Alexandra (2005)
      Hydrogen Cyanide Company is a company that is experiencing increasing costs. Management is convinced that a lot of money is spent on the procurement of catalysts for the production of hydrogen cyanide and that important savings can be made here. Therefore they want to re-evaluate their supplier selection process. Rationalising the procurement process is an increasingly important issue for companies today as purchasing plays a strategic role in a firm's profitability and enhanced shareholder value. This significance of purchasing makes it relevant for firms to understand which purchasing approaches are effective and efficient, and can thus contribute to their overall market success and profitability by cutting hidden costs of wastage, rework, returns, etc. Insights into this topic are important because purchasing professionals in many companies still need to demonstrate the contribution they make to the firm. This case study offers students the opportunity to gain these important insights. Students are challenged to compare traditional procurement practices, such as the weighted point method, with the more recently developed total cost of ownership method, which is based on activity-based costing.
    • Causes of company failure and failure paths: The rise and fall of a producer of industrial foils and bags - Teaching note

      Ooghe, Hubert; Waeyaert, Nick (2005)
      One of the prevalent concerns in present times, for both management academics and practitioners, relates to the principles which determine corporate success and failure. Although many models discover early symptoms of failure by using financial information, there is a lack of a deeper insight into the real causes of company failure and into the way they influence each other. The symptoms one can discover in the annual accounts are the consequence of a process that generally started long before. This case study of IFoil, once a leading European producer of industrial foils, biodegradable packing materials and bin bags, describes the rise and fall of a firm with an ambitious but risky strategy. This strategy proceeded from a management buy-out in 1996 and ended with a failure in 2003. In the case, we aim to analyse and describe IFoil's causes of failure and failure path in detail.
    • Total Cost of Ownership of the procurement process at Hydrogen Cyanide Company - Teaching note

      Roodhooft, Filip; Van den Abbeele, Alexandra (2005)
      Hydrogen Cyanide Company is a company that is experiencing increasing costs. Management is convinced that a lot of money is spent on the procurement of catalysts for the production of hydrogen cyanide and that important savings can be made here. Therefore they want to re-evaluate their supplier selection process. Rationalising the procurement process is an increasingly important issue for companies today as purchasing plays a strategic role in a firm's profitability and enhanced shareholder value. This significance of purchasing makes it relevant for firms to understand which purchasing approaches are effective and efficient, and can thus contribute to their overall market success and profitability by cutting hidden costs of wastage, rework, returns, etc. Insights into this topic are important because purchasing professionals in many companies still need to demonstrate the contribution they make to the firm. This case study offers students the opportunity to gain these important insights. Students are challenged to compare traditional procurement practices, such as the weighted point method, with the more recently developed total cost of ownership method, which is based on activity-based costing.
    • CRM excellence at KLM Royal Dutch Airlines

      Viaene, Stijn; Cumps, Bjorn (2005)
    • Stamypor

      Van Wely, Marijke; Leuverink, Inge; Van Hoven, Femke; Vanhaverbeke, Wim (2005)
      The New Business Development unit is part of DSM, a Dutch globally operated chemical company. The unit looks for promising new ideas to develop into start-up businesses. Stamypor is a new project that the New Business Development unit is working on and the team leader of the project must decide if it should be developed into a start-up company. Students will apply their knowledge about new product development, new product evaluation, the stage-gate process, customer value, business models and corporate venturing.
    • Inneco NV

      De Zutter, Stijn; Vanhoucke, Mario (2006)
    • Belgacom: IT project selection 2005

      Viaene, Stijn; Fagan, Simon; Almeida, Sergio (2006)
    • ING direct: Rebel in the banking industry - Teaching Note

      Verweire, Kurt; Van den Berghe, Lutgart (2006)
      ING DIRECT is one of the six business lines of integrated financial services provider ING Group and active in 9 different countries. The case describes how ING DIRECT USA has become the largest Internet-based bank in the United States, and one of the thirty largest banks of any sort in the country. In particular attention is paid to the strategic positioning of ING DIRECT in the US retail banking industry, and what strategic actions the bank has undertaken to achieve and maintain the unique position the bank has achieved so far. The case depicts how it all started, but also sheds a light on the future challenges of the company. Key Words Strategy, strategic positioning, strategy formulation, strategy implementation, US banking industry, on-line banking
    • Leading the Broadband Access Market in EuropeProduct Strategy Formulation at Alcatel - Teaching Note

      Muylle, Steve; Geeraerts, Pieter (2006)
      As the undisputed market leader in the broadband access market, Alcatel has consistently focused on offering Digital Subscriber Line (DSL) technology and equipment to incumbent telecom operators in Europe. Clearly, Alcatel closely monitors any change in the broadband access market to anticipate and drive consequent changes in its product strategy. While continuous price erosion and Chinese competition are significant factors, developments in the areas of customer (telecom operators) and end customer needs (residential and (small) business customers), technologies (copper, fibre, wireless), regulation, and new entrants may present new opportunities. Given these developments, Alcatel needs to decide whether and how to adjust its product strategy. . Key Words Product strategy, disruptive innovation, market leadership
    • ING direct: Rebel in the banking industry

      Verweire, Kurt; Van den Berghe, Lutgart (2006)
      ING DIRECT is one of the six business lines of integrated financial services provider ING Group and active in 9 different countries. The case describes how ING DIRECT USA has become the largest Internet-based bank in the United States, and one of the thirty largest banks of any sort in the country. In particular attention is paid to the strategic positioning of ING DIRECT in the US retail banking industry, and what strategic actions the bank has undertaken to achieve and maintain the unique position the bank has achieved so far. The case depicts how it all started, but also sheds a light on the future challenges of the company. Key Words Strategy, strategic positioning, strategy formulation, strategy implementation, US banking industry, on-line banking