At the time of his appointment, the U.S. economy was in a recession with unemployment at an all-time high. In addition, interest rates were high and the dollar was strong. Despite all these obstacles, Welch stepped into the role of CEO and immediately began implementing changes that he felt would elevate GE to the next level. One of the first tasks was to access the environment of the company and look at ways to improve it. He set his vision for GE by setting the standard that each business unit set the goal of becoming #1, #2 or disengage (fix, sell or close).
Case 1 Write-up. Mark Hurd at HP: Driving Strategic Execution It was not easy decision for HP and candidacy of Mark Hurd might be seemed weak concerning of his personality as a CEO. However ex-post I would conclude, that it was a successful choice, made by HP board. I would like to mention the pros and cons of this choice, which are better to analyze in table below: pros | cons | * Hurd had experience of being CEO of NCR * He implemented serious of managing decisions: cost cutting, sales increase, etc., which improved busines * During his brief tenure as a CEO NCR’s stock gained more than 300% increase, company had sales growth and business increase | * NCR was quite smaller than HP * Hurd was CEO only about 2 years, when he was hired by HP * HP is integrated company with different directions, when NCR has simple business structure | Mark showed a good result at NCR. I suppose that was a key trigger, which helped him to take CEO position in HP were his previous results.
The 1990s proved to be an excellent decade for WorldCom, particularly after the 1997 purchase of MCI, which was the largest national long-distance phone carrier at the time, and resulted in the largest corporate merger in the history of the United States. Bernard Ebbers was credited with saving the fledgling company and the stock became extremely valuable. Much of the increase in stock value can be attributed to the creative accounting practices of Scott Sullivan, chief financial officer of WorldCom. Mr. Sullivan's methods were designed to increase the company's value and stock price though a series of acquisitions. The methods utilized gave the shareholders the image that WorldCom was a growing company with steadily-rising income that was reliable and would offer a large return for their investment (Boatright, p.44).
GLOBALIZATION APPROACH OF SAATCHI & SAATCHI The ability to launch “global” advertising campaigns was among the foremost capability building measures that were to be implemented in order to develop a globalization strategy for the company. Though the Saatchi brothers, Maurice and Charles had always been inclined towards the very idea of global marketing but finally it became incumbent upon the new CEO Louis-Dreyfus to implement the strategy as a part of measures to bring the company out of the crisis. The concept of global marketing had been developed by the ace management guru Theodore Levitt of the Harvard Business School and it essentially meant that the cultures around the world are becoming so similar and homogeneous in nature that marketing of the products can be done in similar or rather same ways everywhere in varied geographical locations. The specific approach that Louis-Dreyfus adopted towards this global marketing idea was in principle different from the one imagined by the Saatchi brothers. He agreed regarding the vitality of the idea and believed that it would be apt to expand into different markets in order to cater to the needs of the multinational clients but he specifically cautioned against over generalization and said, “Creativity isn’t the same everywhere.
Recommendation Calveta Dining Service should acquire Great Southwest Dining Service (GSD) and restructuring the organization in future to fulfill Antonio’s requirement which want Frank to double the company’s revenues within five years and can maintain the special company cultures. When Frank have decide to acquire GSD there have several advantages that can be achieve by Calveta. In the case given, Frank has been done some financial calculation using various growth projections for both GSD and Calveta over the next three years. After calculation, Frank perceived the opportunity to meet or at least come close to the revenue goals his father had set. Therefore, this is the best opportunity to Frank to build strategy in order to meet his father requirement.
In 1997 they made one of the first important moves which were selling of their shares from which they earned money that gave them opportunity to expand. This strategic move latter lead to increasing number of customers and advantage over their competitors. In the same time they focused on establishment of the executive team. This included employing of the former Wall Mart Vice President who had huge experience in merchandising and logistics, supply chain systems, international retailing and merchandising systems and commercial decisions support and data mining systems that all together helped them in gaining better position on the market. One more driving force that made them gain more customers was lowering prices of their products.
The company needed an operations-oriented leader who could restore the company. It was necessary that this person be capable of handling the business size while generating an attractive return on investment. Jim Burton was appointed to take on the company’s issues and implement a strategy worthy enough to see the company make a turn around. A strategy was launched that would help reshape the business internally mainly with its executives. It was significant for them to understand executing the strategy of key processes and value creation.
At the time, the 41,000-employee HCL enterprise had $3.7 billion in revenues and a market capitalization of $5.1 billion. While it was growing at a cumulative average growth rate of 35% (including inorganic growth), this was due largely to the momentum of the past. Like many of his competitors, Vineet hoped to move his company up the value chain. At HCL, the plan was to accomplish this goal by providing clients with innovative, integrated services that would impact and even redefine their core businesses (see Exhibit 1). To fulfill this vision, Vineet had devised a three-part transformation strategy.
Also, the financial manager learns how to work in a stable environment, plan in detail, set up control systems, and seeks to achieve objectives. On the other hand, a CEO needs to be a person that is able to seek change at any given moment, has a long term time horizon, and has a direct vision. That is why the finance department trains its personnel to have a horizon of the financial year. So, what it boils down to is, the finance manager typically uses logic and formal authority to seek its action. A companies CFO possesses so many significant advantages as well as disadvantages if they are chosen to become a company’s CEO.
It became a publicly traded company in 1983 and was deemed as one of the highly traded and recommended stock by Wall Street. Shortly after becoming public, Miniscribe began to experience financial losses. There were speculations that the company was experiencing difficulties in cash flow and inventories. The company hired QT Wiles, a well-known turnaround specialist to serve as Miniscribe’s Chief Executive Officer and chairman of the board, thus, his main task was to help correct the Company’s financial position. It was during his leadership that Miniscribe introduced several new product lines in the market which was generally accepted and led to high sales record for Miniscribe.