• Cadbury Schweppes (C): The performance management process

      Haspeslagh, Philippe; Slagmulder, Regine; Bloemhof, M. (2003)
      This is the third of a three case series. The (A) case describes the situation of Cadbury Schweppes (CS) and its sugar confectionery business, in a state of 'satisfactory underperformance' in which past strategies and practices make it hard for new management to initiate change in this widely respected company. The (B) case shows how from 1997 to 1999 John Sunderland, the new CEO and a new divisional manager used value based management (VBM) as a vehicle for transforming respectively the company and the sugar confectionery division with strong emphasis on people and leadership practices. The (C) case describes how CS' performance management system was redesigned in line with the Managing for Value (MfV) philosophy. It illustrates the new management performance process in action in the beverages business in Spain, where the country manager is faced with major competitive challenges. The immediate purpose of the Cadbury Schweppes series is to allow an informed discussion on the use and implementation of value based management, from a broader managerial rather than the typical financial perspective. The broader purpose is to illustrate how VBM can lead to corporate transformation and a sharpening of leadership practices in large firms. The series further describes how the design of the performance management system supports the implementation of MfV.
    • 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.
    • 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.
    • 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.
    • 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.
    • Royal Biscuits Inc

      Roodhooft, Filip; de Vlieger, An-Katrien (2008)
      Royal Biscuits Inc is a British manufacturing company of fine biscuits. They have a highly respected product portfolio of 3 fine biscuits: Supreme crisps (R), Tropical chocolates (R) and Sublime rolls (R).The turnover of Royal Biscuits Inc is steadily increasing, but margins are dropping significantly due to increased purchase prices of ingredients. In order to adjust the selling prices and thus improve the margins, the company urgently needs to know how much it costs to produce the biscuits. Therefore, they decide to set up a new straightforward costing system. The company opts for a standard costing system that allows them to recognise the generated costs upfront. By analysing this case, students are familiarised with a traditional standard costing system. The students are required to calculate standard costs and actual costs. A variance analysis helps them to draw conclusions. In addition, the students should build up an income statement using standard and actual costing.
    • Sainsbury's (A): Transforming the supply chain

      Slagmulder, Regine; Grottoli, D.; Corsten, D. (2003)
      This is the first of a two-case series (603-020-1 and 103-057-1). In 2000, under increasing competitive pressure from other major UK retailers, J Sainsbury's Supermarkets embarked on a radical transformation of its supply chain. The case study describes the challenges involved in rejuvenating the firm's supply chain infrastructure, systems, processes, and skill sets as part of an 'all-or-nothing' strategy to regain a leadership position in the marketplace. The teaching objectives are: (1) to learn about recent developments in supply chain configuration and information systems in the retail industry, and (2) to assess the opportunities and risks associated with major investments in supply chain restructuring.
    • Sainsbury's (B): Supply Chain Performance Measurement

      Slagmulder, Regine; Grottoli, D.; Corsten, D. (2003)
      This is the second of a two-case series (603-020-1 and 103-057-1). The (B) case focuses on the performance measurement tools that Sainsbury's has implemented to improve the efficiency and effectiveness of its supplier relations. It describes the internal information system that provides up-to-date performance data on suppliers as well as an Internet- enabled system aimed at sharing daily supply chain information with suppliers. The case also demonstrates how a performance assessment tool called the Global Scorecard helps Sainsbury's and its suppliers identify opportunities for jointly improving their interface. The teaching objectives are: (1) to illustrate state-of-the-art information systems aimed at measuring and managing supplier performance in a retail context, and (2) to discuss how retailers and suppliers can work together to improve the efficiency of their interface and strengthen their relationship.
    • Sodexho (A): Creating strategic alignment with the balanced scorecard

      Slagmulder, Regine; Van Wassenhove, L.; Zingales, F. (2007)
      The case puts the students in the role of a member of a management team trying to create a strategy map and balanced scorecard, in an attempt to ensure alignment about strategic objectives and how to reach them. The teaching objecties are: (1) to show the usefulness of strategy maps (to create a balanced scorecard) as a tool to create alignment between the members of an executive committee, and (2) letting the students discover the process through a role-playing exercise.
    • Sodexho (B): Balanced Scorecard and Performance Indicators

      Slagmulder, Regine; Van Wassenhove, L.; Zingales, F. (2007)
    • 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.
    • The Scotts Company (A): Transforming the European supply chain

      Van Wassenhove, L.; Slagmulder, Regine; Vaysman, M. (2002)
      This is part of a case series. Case (A) describes how a major player in the agricultural chemicals industry struggles to transform a fragmented group of newly acquired businesses into an integrated supply chain. The case highlights the firm's operational and organizational problems from the perspective of the European supply chain manager, whose primary objective is to streamline operations and cut costs.
    • The Scotts Company (B): Developing a supply chain balanced scorecard

      Van Wassenhove, L.; Slagmulder, Regine; Vaysman, M. (2002)
      This is part of a case series. The case briefly outlines the European strategy for a major player in the agricultural chemicals industry. This description provides the basis for developing a Balanced Scorecard program to help align the firm's European supply chain operations with the company's strategic goals. Case (B) is designed to allow students to develop some hands-on experience in building a balanced scorecard that addresses the supply chain issues discussed in the (A) case. The case demonstrates how a supply chain scorecard provides a framework for improving operational efficiency as well as long-term value creation.
    • Time-driven activity based costing at Corelio printing

      Roodhooft, Filip; de Vlieger, An-Katrien; Joren, Luc (2006)
      Corelio Printing is the printing division of Corelio, a large Belgian multimedia news business. This division struggles with its costing system, a traditional method where overhead costs are allocated based on direct costs. This costing system may have been appropriate in the past, today however, it is not. The division suffers under-capacity, while the market situation is characterized by declining margins and increased service offered to the customers. Accurate cost control is hence crucial! In order to improve the costing system, Time-Driven Activity Based Costing (ABC) is presented as an alternative to the current system. By analyzing the case, students are familiarized with Time-Driven Activity Based Costing. They are encouraged to apply this new approach of ABC to a real business case in the printing business and to think about the pros and cons of this new method.
    • Time-driven activity based costing at Corelio printing - Teaching Note

      Roodhooft, Filip; de Vlieger, An-Katrien; Joren, Luc (2006)
    • 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.
    • 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.
    • Value creation through total cost of ownership in the extended supply chain

      Muylle, Steve; Roodhooft, Filip; de Vlieger, An-Katrien (2007)
      Europal is a family-owned medium sized company supplying packaging logistics solutions to customers in Europe. The company originally focused on the manufacture and selling of corrugated board packaging, but decided in the year 2000 to grow from a mere vendor towards a trusted partner accommodating the packaging logistics needs of its customers. Daikin Europe, the leading manufacturer and seller of air conditioning units, was the first company with whom Europal Logistics developed a close partnership. Thanks to the success of its value-added partnership with Daikin Europe, Europal was able to acquire the confidence of various companies such as Atlas Copco, Barco, Baxter, Mutoh and Tyco, and roll out similar collaboration initiatives at these organisations.