Describes the decision of a battery manufacturer to diversify into the computer field through acquisition and the development of a new product. Among the issues to be discussed are the company product fit, phases in new product introduction, product positioning, and distribution strategy.

Describes Sweco's decision about whether to enter the mud-processing equipment industry (used in oil well drilling). This is an internal entry decision, and the case describes Sweco's existing businesses as well as the mud-processing industry and competitors. The case contains enough data to calculate the costs of entry in the new industry, and to forecast the reactions of existing firms to the entry.

A large chemical manufacturer divests a plant that is acquired by a small specialty chemicals manufacturer. The acquisition decision is viewed from the vantage point of the small specialty chemicals manufacturer.

Supplements the (A) case. Designed as an in-class handout.

Gulf Oil was pressured into liquidation while under attack by Boone Pickens of Mesa Petroleum Co. Gulf management was unsure whether to sell out or take the firm private. A suitor, Standard Oil of California, tries to decide how much, if anything, to bid for the privilege of owning Gulf.

Mrs. Fields Cookies is a small company selling freshly baked goods through privately owned specialty stores (each store sells only Mrs. Fields products). The company has about 8,000 employees worldwide and less than 150 information systems people for a unique leverage of MIS resources. The company uses information systems extensively in its processing, communications, and other management functions, including operations of the stores and hiring s...

Describes the development of a successful corporate strategy based on the acquisition and subsequent consolidation of low-technology manufacturing companies. Starting with a company history and discussion of current business segments, the case goes on to detail the innovation of corporate headquarters in strategy formulation and operations. Highlights the synergistic possibilities in alike acquisitions and addresses the issue of long-term value c...

A California based security guard firm considers the acquisition of another security guard company. The value of the target firm and the financing of the acquisition are the key issues.

A U.S. trucking company is considering using debt for the first time to acquire another company. The directors of the company are divided in their opinion of the likely impact of leverage on Continental Carriers' performance. Their differences must be reconciled and a decision reached about whether to issue new debt or equity to fund the acquisition. Students are introduced to the impact of leverage on performance variables such as profits, growt...

Amoco Corp. is negotiating to sell a wholly-owned subsidiary, MW Petroleum, to Apache Corp. MW owns large reserves of oil and gas comprising many properties at different stages of engineering, development, and production. The proposed acquisition is a large one for Apache and poses several important financing and valuation problems. This case focuses primarily on valuation.