Premium Essay

Harvard Case

In: Business and Management

Submitted By wsm1012
Words 4152
Pages 17
4011
APRIL 7, 2009

CRAIG CHAPMAN

Biovail Corporation:
Revenue Recognition and FOB Sales Accounting
Background
Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted to make sure he was giving the best advice to his investment clients.
Biovail Corporation was one of Canada's largest publicly traded pharmaceutical companies.1 For many years, Biovail had applied advanced drug-delivery technologies to improve the clinical effectiveness of medicines. The company commercialized its products, both directly (in Canada) and through strategic partners (internationally). Historically, its main therapeutic areas of focus had been central nervous system disorders, pain management, and cardiovascular disease.
Biovail's core competency was its expertise in the development and large-scale manufacturing of pharmaceutical products. It leveraged this expertise by focusing on (1) enhanced formulations of existing drugs, (2) combination products that incorporated two or more different therapeutic classes of drugs, and (3) difficult-to-manufacture generic pharmaceuticals.
In the United States, Biovail distributed a number of pharmaceutical products. These included
Zovirax® ointment and cream (topical anti-viral drugs) and Cardizem® LA (for hypertension), which were marketed by strategic partners. In addition, Biovail distributed a number of branded off-patent products referred to as “Legacy” products. The Legacy products portfolio included the well-known brands Cardizem® CD, Ativan®, Vasotec®, Vaseretic®, and Isordil®. These products were not…...

Similar Documents

Premium Essay

Harvard Case

...The Harvard WrapItUP case studies presented in this reading including the ShareIt programs were very inviting to read about. The case study basically speaks about the founders of this company taking on an active role in day-to-day business and tightly controlling every aspect of the restaurant operation from hiring store managers to planning the menu. The young college students had to get the understanding of the power and risks of employee enfranchisement. Secondly, understand the importance of coordinating a human resource system within an operating system, and lastly, explore the role of a entrepreneur in an expanding business. This case allowed you to concentrate on multiple subjects covered in the class, such as Compensation, Incentives, Middle management, and Motivation. Please answer the following questions in the case study analysis within three pages. 1. What are the strengths and weaknesses of the ShareIt Program? a. Did it address the issues WrapItUp was experiencing? b. Was compensation really the root cause, or was the HR executive myopic in her focus? c. Was the plan itself structured correctly? 2. Why do you think Reyes made a personal visit to the store managers to discuss the program? 3. Consider the financial results achieved by the two pilot stores. Based on that alone, would you say that the plan succeeded in both pilots? Why or why not? Does your opinion change if you incorporate the customer service scores? ...

Words: 277 - Pages: 2

Premium Essay

Harvard Case-Nordstorm

...For the exclusive use of Z. YUAN Harvard Business School 9-191-002 Rev. October 15, 1999 Nordstrom: Dissension in the Ranks? (A) The first time Nordstrom sales clerk Lori Lucas came to one of the many “mandatory” Saturday morning department meetings and saw the sign—”Do Not Punch the Clock”—she assumed the managers were telling the truth when they said the clock was temporarily out of order. But as weeks went by, she discovered that on subsequent Saturdays the clock was always “broken” or the time cards were not accessible. When she and several colleagues hand-wrote the hours on their time cards, they discovered that their manager whited-out the hours and accused them of not being “team players.” Commenting on the variety of tasks that implicitly had to be performed after hours, Ms. Lucas said, “You couldn’t complain, because then your manager would schedule you for the bad hours, your sales per hour would fall, and next thing you know, you’re out the door.”1 Patty Bemis, who joined Nordstrom as a sales clerk in 1981 and quit eight years later, told a similar story: Nordstrom recruiters came to me. I was working at The Broadway as Estee Lauder’s counter manager and they said they had heard I had wonderful sales figures. We’d all heard Nordstrom was the place to work. They told me how I would double my wages. They painted a great picture and I fell right into it. . . The managers were these little tin gods, always grilling you about your sales. . . . You felt like your......

Words: 7737 - Pages: 31

Premium Essay

Classic Harvard Case

...MKTG 489 Harvard Case Study Classic Knitwear, Inc. Gross margin is defined by dictionary.com as “margin of profit: the ratio gross profits divided by net sales.” In order for a company to increase marginal profit, more units need to be sold. Situation Analysis Classic Knitwear, Inc. (Classic) is a publicly traded company that was established in 1995 as a manufacturer/distributor of unbranded casual knit apparel. In 2005 Classic reported revenues of $550 million in it’s U.S. domestic sales, however in September 2006 Chief Marketing Officer Brandon Miller released Classic’s plan to introduce a new line of insect repellent clothing in order to increase gross margins. After conducting a SWOT analysis with the information provided, some of the following strengths of Classic’s were identified; - Classic is identified as the #2 player in casual knitwear sector w/ 16.5% market share. - Low production cost w/ offshore production - Moderate cost advantage over U.S. w/ high volume low-SKU production *more strengths listed in the appendix. Having such a strong and stable stance in the knitwear market is a huge benefit for Classic, and will only increase the chances for success when introducing their new line of insect repellant clothing. Although Classic has many strengths, one of the companies weaknesses is that CEO Robert Ortiz “perceived too much risk in foreign markets. “ pg 1. This fear of expanding the company may prove detrimental to the launch and success of...

Words: 722 - Pages: 3

Premium Essay

Harvard Mba Cases

...2003年1月2日,亚历山大和他的一些亲戚、朋友共同创建了化学灯公司。他们总共发 行了500,000股股票,其中亚历山大凭他的专利占有125,000股,剩余的股票以每股1美元的 价格卖给了其他投资者。从2003年1月2日到2003年6月30日,化学灯公司发生了以下开支: 1月15日,支付7,500美元的律师费、注册手续费以及与公司成立相关的印刷费。 6月15日,花费62,500美元购置了一台设备,用来生产第一批化学灯样品。 6月24日,购买了价值75,000美元的塑料和化学原料,用于生产上市销售的化学灯。 6月底, 在化学灯公司主要负责管理的亚历山大和公司其他股东会面, 提交了一份报告, 并讨论了公司今后的营销战略。他希望公司能在8月底开始生产化学灯。亚历山大的一个朋 友苏姗·彼得森(Susan Peterson)在公司投入了可观的资金。她在会上提出,她已经接到 一个汽车配件分销商的订货要求及其希望得到的价格。那个分销商想购买大量的化学灯, 以配合他高速公路安全的推广活动,而且他有兴趣创建自己的私人品牌。 会议至此,一位几乎没有任何商业经验,甚至也不太懂财务报表的股东——拉森 (Larson)先生插话说:“我们将要讨论的这个议题很好,但是,我所看到的事实是:6个 月以前我们有375,000美元, 而现在只有230,000美元。 据我估算, 6个月来, 我们失去了145,000 本案例由访问教授 David A. Wilson 完成,并经 Charles Christensen 教授修订。 本案例仅用于课堂讨论, 而不作为正式文件、基本数据来源以及管理活动是否有效的证明。 本案例中文翻译经哈佛商学院授权,由清华大学经济管理学院组织完成。 1976 年哈佛大学版权所有。如需订购或请求复制许可,请致电话 1-800-545-7685,或致信 Harvard Business School Publishing,Boston,MA02163,或访问网址 http://www.hbsp.harvard.edu。未经哈佛商学院 的许可,禁止将本案例复制,在检索系统中储存,在表格中引用,或以任何形式或方法传播——包括电子 版,印刷,复印,录音等等。 177-078 化学灯公司 美元,却没有取得显著的成效。” 一些股东表示同意拉森的观点。事实上,从1月2日到6月30日,公司的银行存款余额从 375,000美元下降到了230,000美元。另一名股东得克鲁斯(D’Cruz)女士指出,因为公司的 经营尚未进入成熟阶段,所以这些前期开支可能更应该被视作是对公司的投资,而不是亏 损。 经过大量深入讨论, 股东们决定于2004年1月初再召开一次会议, 共同探讨公司的状况。 大家普遍认为,到那时公司的运营应该已经全面展开,现在所讨论的试运营阶段所出现的 问题在年底将会得到解决。 2003年下半年,化学灯公司确实进入了达产阶段。为了准备2004年1月初的股东大会, 公司新雇用的会计比尔·默雷(Bill Murray)列出了下列资料: 1、 2003年7月初, 一名顾问工程师交来了改进型化学灯原型, 公司共付给他23,750美元。 2、 从2003年7月到12月的6个月中,公司化学灯的销售额为754,500美元。最大的客户, 也就是那个与彼得森谈判的汽车配件经销商还欠公司69,500美元。其他客户的账款 在年底均已付清。 3、 购买了价值175,000美元的化学原料和塑料,进货均以现金付款。 4、......

Words: 269 - Pages: 2

Premium Essay

Harvard Case Lego

...Case Assignment #6 – LEGO Group Henry Surya Jaya #57424103 Question 1: How much know-how should LEGO share with its tool suppliers? How practical is it in reality to prevent knowledge spillovers? From the case, we learned that LEGO place an important value on ensuring the quality of its manufacturing process. Tool suppliers were selected by the LEGO on the basis of their patent position on the methods and reputation, and these suppliers undoubtedly played an important role in helping LEGO achieve better quality assurance. At the end of the day, these suppliers were the ones responsible to make all the tools necessary to build the LEGO products, hence information sharing between LEGO and their tool suppliers should be sufficient enough as not to limit the suppliers’ ability to make great tools. Unless LEGO could make tools on their own, it is almost impossible to prevent knowledge spillovers. Instead of worrying about potential steal of knowledge, LEGO could work to strengthen their relationship with their tool suppliers, which could ultimately lead to building trust. Preventing knowledge spillovers is hardly practical. Employees who left a company carried knowledge in their heads with them, so they posed a spillover risk, especially in the emerging market where loyalty to a firm was low and multiple companies set up manufacturing plants within small geographical regions. Even if it were possible, the cost would be really high. In this case, it might involved......

Words: 661 - Pages: 3

Premium Essay

Biopure Harvard Business Case

... Marketing Strategy: The product should be advertised in vet journals and trade shows as these are taken seriously and are treated as valued source of information. A strong network should be formed with the distributors with a mindset that Hemopure is the main target for release. Finally, I would conclude that Oxyglobin should be released soon to the market by distinguishing Oxyglobin and Hemopure as two independent products. Hemopure should be marketed on the brand established by Oxyglobin and should be compared with other human blood substitutes for pricing. Appendix Assumptions: * Here we are doing analysis for price per unit as $150 and $200. * We are considering distribution cost as 15% of Total Sales (Table C of case description, considering only local distributors). * Additional distribution cost due to “Manufacturer Direct”= $15 per unit (optional) Total Revenue: Estimated price per unit | $150 | $200 | Maximum number of units per year | 300,000 | 300,000 | Maximum expected sales revenue | $45,000,000 | $60,000,000 | Fixed Cost: Distribution Cost | $4,500,000 | $6,000,000 | Overall Production Cost | $15,000,000 | $15,000,000 | Total Fixed Cost | $19,500,000 | $21,000,000 | Contribution Margin: Cost of raw material per unit | $1.5 | $1.5 | Additional distribution cost | $15 | $15 | Contribution Margin per unit | $133.5 | $183.5 | Contribution Margin: Contribution Margin per unit = Estimated price......

Words: 738 - Pages: 3

Premium Essay

Harvard Case

...“THE QUALITY IMPROVEMENT CUSTOMERS DIDN’T WANT” Situation Analysis The case is about a health maintenance organization named ‘Quality care’ and the dilemma that it is facing whether to consider technology over human touch or not ? Allan moulter, the CEO of quality care, isn’t sure if he wants to invest in the computerized reception system that the consultant Jack Zadow has presented to him. The thing which was impossible to ignore is that Quality care’s rivals ‘Health care one’ and ‘Medicenters’ have already invested in similar systems or are planning to do so. The new system provides a self service option to the customers which collects and records the data electronically making it sharply accurate and saving time. The staff will be able to devote more energy to make sure that each customer receives personal attention. So, it promises to be a very beneficial move but Allan is quite confused about this transition. On the other hand, the CIO of the company, Pat penstone is clearly in favour of this idea as she thinks that by not adopting this new technique their customers would think that they are not high tech. Also, she is of the idea that sooner or later, they would have to install a system like this, so why not now. Allan now moves on to Ginger rooney, the VP(marketing) and turns out that she is completely against it as she didn’t like the idea of having the first person the customers meet when they come in the......

Words: 314 - Pages: 2

Premium Essay

Harvard Business Case: Options

...futures price. In order to make a profit, one has to "buy low, sell high". As Ft(t,T) = $312.30 < Fa(t,T) = $313.55 Jim should short March'86 MMI futures contracts. Thereby, he can buy them at the theoretical price of $312.30 and sell them at $313.55. To short the futures, Jim has to buy the underlying. Therefore, he has to invest some money. Part of it will be the company’s own funds; the major part comes from borrowed funds. Jim can have a total position of $5,000,000. Jim has the restriction that 10% of this amount must be kept as margin. Therefore, he would borrow $4,999,516.42 from the bank at a borrowing rate of 8%. The cost of capital for company funds is expected to be higher. However, as this number is not explicitly given in the case, we assume that it is 8% too. The total price for the index is adjusted by a mark-up of 0.0025% for a round-trip impact. As he cannot buy partial stocks, he will only make use of $4,999,516.42 (see Figure 1). Jim will use this amount to buy 3628 shares of the index (more precise, shares of each component stock) on February 26th. Moreover, he shorts 64 contracts of March '86 futures. The number of contracts is rounded 64 as 4999516.42/(313.55*250). The cost for that at t is zero. To calculate the return at T, several calculations have to be performed. The following formula is applied to calculate the future value of the loan taken, in other words, what Jim has to buy back at T: 〖FV〗_l (T)=〖PV〗_l (t)e^r(T-t) with 〖PV〗_l (t) =......

Words: 1074 - Pages: 5

Premium Essay

Harvard Graduate Case Analysis

...Situation: Harvard University owns a huge property which is not developed in Allston, across the Charles River and most of it in the University campus. The main motto of the Allston initiative is to focus on the growth of number of students who can rent these undeveloped properties from Harvard. The mission of HRES now is to create and design a survey by drawing lessons from a 2001 survey. These lessons will deliver information which helps in deciding on how well these undeveloped properties can attract Harvard students and how well they will be able to compete with the private homes. Problem: The challenge for HRES is on how to create and design a campus housing survey for graduate students that optimizes an equilibrium of price, locality and community space. It is also very difficult to foresee and predict future desirable homes by using a current student survey. Analysis: The capability of getting a high response rate is the key challenge for HRES survey. However the 2001 survey has a few pros and cons which are as follows: The survey leaves a first impression that it is too long, though it is rationally perfect. The aim of the survey was to include each and every situation, but it becomes very specific and comparatively takes more time than “20 minutes” as mentioned in the survey instrument. For questions which are too specific and particular to answer, students should concentrate more, read those options carefully and check the difference. For instance the question......

Words: 836 - Pages: 4

Free Essay

Piaggio Harvard Case Study

...PIAGGIO (A) By: Elena Bueso #10297661 This case study case will be addressing three main topics of discussion regarding Giovanni Agnelli’s strategy for growth as Piaggio’s CEO. The topics are the following: 1. Is Piaggio’s decision about building a new “green” engine manufacturing facility to be a strategic one? Why or why not? 2. The comparison and contrast of the strategies chosen by Piaggio, Yamaha, and Aprilia for competing in the PTW market. What are the relative strengths and weaknesses of each? 3. State whether or not Giovanni Agnelli should build the new engine facility First, I do not think that manufacturing a "green" engine is a good strategy. It is a good initiative but we cannot disregard that fact that ultimately, generating profits are the main goal of any company. Yes, they are looking into the future and planning ahead how to adapt to upcoming regulations on new environmental standards, but instead they should think outside the box, and come up with different possible solutions to ensure and to make this market breakthrough a success. I think they are under looking the possibility of having "green" engine external suppliers. Even though this may contradict their manufacturing standards, there are many hidden benefits. They could do a pilot of this genius idea without putting at stake the company's well being and further more take as an example Aprilia's recipe for success. This should give them a more broad range of possibilities and help them......

Words: 1072 - Pages: 5

Premium Essay

Harvard Case

...Colorado Height University Case study of Marketing Chateau Margaux Xuan Mai Le IBS400 Château Margaux had entered the Mentzelopoulos family in 1977 when Andre Mentzelopoulos, the owner of a French supermarket chain, bought it for about €12 million. It located in Bordeaux region, which produces the most prestigious wine in France. The Bordeaux wine community was initially shocked to see it “fall in the hands of a Greek.” However, they gained confidence in Mentzelopoulos as they saw the complete overhaul of the vineyards with better drainage and new plantings. Château Margaux was part of the French elite of wines known as first growths, five specific wines from the Bordeaux region. Wine critic Robert Parker had recently described Château Margaux as a “brilliantly consistent wine of stunning grace, richness and complexity.” It was often called the most seductive and elegant of all Bordeaux wines. Château Margaux officially classified in 1855 as a "first-growth" (one of only five in the Bordeaux region). A critic commented, “The Château Margaux 1953 is considered a superstar among wines. It just improves in power, elegance and charm with age. Andre's first vintage in 1978 was seen as one of the best Bordeaux wines of the year. Unfortunately, he died suddenly in 1980 before he could see the full transformation of the château. Corine is his daughter inherited the estate. She is 27 years old, high educated and work in the marketing but she does not know anything about wine......

Words: 1291 - Pages: 6

Premium Essay

Bailla Harvard Case Solution

...Reduced inventory carrying costs o Improvement in case fill rate for the retail stores Drawbacks:      Requires implementation of a sophisticated planning system; may require heavy investment Shifts the responsibility of the service in stores completely to Barilla The JITD is not supported by a JIT manufacturing which might lead to a shit of inventory to Barilla from the DOs JITD will reduce inventory in the system, and consequently increases the risk of business disruption in case of any issues in the supply chain Internal and External Conflict (Discussion in question 2 & 3) Question 2: What conflicts or barriers internal to Barilla does the JITD program create? What causes these conflicts? As Giorgio Maggiali, how would you deal with these? The implementation of JITD will see many barriers from the internal teams.   Conflict with Sales & Marketing teams: o Sales teams will see a reduction in responsibilities and also a cut in the number of sales force personnel required as a portion of their job is to help the distributors place orders and manage inventories. o The current incentives of the sales team are based on the volumes sold to the customers. With Barilla deciding the shipments the control over sales management would be reduced dramatically. o The sales team will not be able to rely on promotions to push stock into trade. o Increased risk of business disruption/share loss in case of any issues in the supply chain Conflict......

Words: 1304 - Pages: 6

Premium Essay

Harvard Case

...For exclusive use at ESADE, 2015 W14540 DISRUPTING WALL STREET: HIGH FREQUENCY TRADING 1 Brad Evans wrote this case under the supervision of Professor Derrick Neufeld solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-10-29 The day after the public release of the book Flash Boys, on April 1, 2014 CNBC invited Michael Lewis (New York Times best-selling author of Moneyball and The Blind Side), 2 along with Brad Katsuyama (chief executive officer [CEO] and co-founder of the new Investors Exchange or IEX) and Bill O’Brien (president of BATS Global Markets, Inc.), to talk about high frequency trading (HFT). The ensuing debate was explosive. O’Brien opened the interview with the following charge,...

Words: 4306 - Pages: 18

Premium Essay

Harvard Business Case

...Harvard Business Case 10-16-07 The Overhead Reduction Task Force: A Case Analysis The Facts Central Foods Corporation just hired a new General Manager, Georgia Dixon, to run the deteriorating Countertop Appliances Division. This new division was formed after Central Foods acquired Kitchen Help, Inc. six years ago. With sales decreasing quite dramatically over the past three years and overhead costs at their peak, Dixon is in charge of implementing positive changes in her department. For one of her first moves she appointed Larry Williams as head of the new Overhead Reduction Task Force. This task force is being formed to decrease overhead costs by 20% in the next four months while also increasing sales. External Factors Affecting CFC There are three main external factors that are influencing the overall sales production in this case. First off, one of CFC’s major competitors introduced a new household coffee maker that sold at the same retail price as CFC’s coffee maker, but CFC did not have the same innovation incorporated into their product. Secondly, another main competitor of CFC launched a new and improved microwave oven, which severely hurt Countertop’s sales of the same product. CFC’s product line still has not made a comparable substitute for this newly designed microwave oven. Finally, competitors’ pricing of the kitchen products was 10% lower than CFC’s pricing for the same products. CFC believed that these competitors would eventually have to......

Words: 2152 - Pages: 9

Free Essay

Harvard Housing Case

...Harvard Graduate Student Housing Survey The purpose of the 2001 survey is to obtain useful quantified information that would influence future design and marketing decisions as well as influence and change the dynamics of thinking at Harvard housing, to make it more centered on demand. In section A “Current Housing”, there are five sub-sections, which are “What type of housing do you live now”, location, rent, “How do you know the current housing” and the housing features. In section B, the “Ideal Housing” section, the sub-sections are features of housing, type of housing, roommate preferences, marketing channel of housing, and “importance of the housing when first come to the University.” Section C is “Transportation” section, which is divided into two subsections, namely form of transportation and time of arrival and leaving. For the section D, the “Housing Features”, there are three sub-sections, including “neighborhood features,” “building features,” and “unit feature”. In section E, the “About Yourself” section, the sub-sections are academic and demographic information. The last section is “About Your preference,” whose sub-sections are preference of room type, “comparison among time, living space and rent”, “how to spend your time” and rent. The sections of the survey are in the order of current housing, ideal first year housing, transportation, housing features, demographic, preference on housing and further comments. Looking at this survey, it is not in a logical......

Words: 637 - Pages: 3