Posted by & filed under Strategy.

SUMMARY: Christian Lacroix, famed Parisian designer of haute couture, has seen change. Eleven chief executive officers could not manage Lacroix’s creativity to a profit. After 22 years in the fashion industry, Lacroix’s future is in doubt. His company, part of the Moet Hennessy Louis Vuitton S.A. conglomerate, filed for bankruptcy protection in May. Whether a buyer will emerge or not, one thing is certain – the “business as usual” mentality must go.

QUESTIONS:

  1. How well did LVMH (Moet Hennessy Louis Vuitton S.A.) handle the strategic management of Christian Lacroix?
  2. Identify the grand or master strategy employed by Christian Lacroix. How might this be a problem in the fashion industry?
  3. Assume the company will emerge from bankruptcy. What strategic changes would you make if you were running this company? Why?

SOURCE: M. Colchester, “The Fall of Christian Lacroix,” Wall Street Journal (Retrieval online at http://online.wsj.com/article/SB10001424052970204619004574318400611353392.html)

Posted by & filed under Video Report.

eBay CEO says that the payment site’s revenue will eclipse that of the online auction site soon.

Source: CNNMoney.com

Date: 7/24/2009

Keys: Strategy, planning, growth, organization structure, innovation, global dimensions

Linkhttp://money.cnn.com

Questions for discussion:

  • Explain why PayPal is expected to grow larger than eBay?
  • Given this change, what are the implications for management over the next five years in terms of organization structure, HR, etc.?
  • What other strategic growth opportunities do you envision emerging from these operations or changes in the business environments? How would suggest management plan for them? Explain your thinking.

Posted by & filed under Print Report.

Female managers just might have an edge in a rotten economy, says the author of a new book. Here’s why, and how men and women can learn from each other’s strengths.

Source:  CNNMoney.com

Date: 7/23/2009

Keys: HR, motivation, teams

Link: http://money.cnn.com

Questions for discussion:

  • Summarize the differences between men and women managers that are presented in this article. Which do you agree with? Disagree with?
  • Do you believe there is any advantage or disadvantage to a firm with more managers of one gender than another? Explain your thinking.
  • What are the implications for team building in a firm?
  • Do you think any gender differences between men and women managers would be of greater importance for a profit-oriented organization – in comparison to say, not-for-profit or governmental organizations? Explain your thinking.

Posted by & filed under Print Report.

International Business Machines Corp plans to buy technology services company SPSS Inc for about $1.2 billion in cash, the companies said on Tuesday.

Source:  Reuters.com

Date: 7/28/2009

Keys: Strategy, planning, mergers & acquisitions, organization structure

Link: http://www.reuters.com

Questions for discussion:

  • Organizations can grow through mergers with and the acquisitions of other organizations. This strategy works best when there is synergy between the two. Explain why IBM would choose to grow by acquiring the operations of SPSS.
  • Given this acquisition, what are the implications for management of both firms over the next five years in terms of organization structure, HR, etc.?
  • What other strategic growth opportunities do you think would work well for IBM?
  • Identify one opportunity which would not work well. Explain your thinking.

Posted by & filed under Print Report.

Many executives and business owners are gradually realizing that employee wellness programs that help workers lose weight or quit smoking, for instance, also create robust return-on-investments. Two speakers at an upcoming conference being held in DeKalb, Ill., believe these programs are not only good for workers; they are good for business, too.

Source: Illinois State Council for the Society for Human Resource Management

Date: 7/24/2009

Keys: HR, motivation, teams

Link: http://news.prnewswire.com

Questions for discussion:

  • Summarize the facts concerning wellness programs presented at this conference.
  • Are you surprised by the costs and benefits results presented? Explain your thinking.
  • What does this article suggest to managers considering their involvement with wellness programs?
  • How would you respond to the offer of a wellness program at your place of work?