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The learning outcomes of this paper is as follows: to give faculty the opportunity to illustrate the strategist’s and marketer’s toolbox, namely, tools and frameworks such as the McKinsey 7S model. Porter’s generic marketing strategies. Strengths, weaknesses, opportunities and threats analysis. Political, economic, social and cultural, technological, environment and legal – external macro analysis. The case is intended for use in MBA and Executive education courses in strategy, marketing and leadership. The case offers relevant experiences and instructive lessons in formulating and implementing business strategies. The case highlights the importance of contextual leadership intelligence and competence in enabling entrepreneurial business activities. The case gives students the opportunity to apply a strategic framework to marketing communications, competitive analysis and branding with a new brand and a new name in a first world economy. The case helps students understand that: successful companies are a success because of their people and leadership, proactive thinking and constantly looking for new opportunities will make you a leader in the market, up-to-date competitor and market analysis are paramount in making the winning decision, staying true to one’s business philosophy and company values build a reputable organization, the importance of creating partnerships and healthy relationships with the distribution channel, the concept of competitive advantage, the concept of differentiation, focus and cost leadership and the concept of value and understanding customer needs.

The Egan’s Whiskey case offers students a unique opportunity to discover the important, yet grass-root, strategic decisions made by a high-quality alcohol product in a very competitive, well-known brand dominated the market, the USA. The case focuses specifically on issues related to strategic choices and implementation, brand, reputation, leadership, strategic marketing decision-making, customer/retail relationships, customer value and the importance of good marketing intelligence. There are some good examples of out-of-the-box thinking. History reveals that companies with the strongest brands, most proactive leadership, innovative marketing ideas, superb marketing intelligence and deepest relationships with their consumers are the pillars of success. The very assets that define these leading companies provide benchmarks for upcoming organizations. Being complacent and having poor leadership and vision in an ever-demanding customer-driven and competitive environment is a recipe for failure. Organizations and their leadership teams need to start thinking systematically, proactively and strategically about their place in competitive markets and take quick actions to mitigate risks and miss opportunities before they become reality. This case reveals the importance of understanding your strategic landscape, your market, your competitors, your customers, quick thinking and actions and having a rolling strategic plan, which is adaptable.

The case is intended for use in MBA and Executive education courses in strategy, marketing and leadership.

Teaching Notes are available for educators only.

CSS 11: Strategy.

In April 1992, this multinational consumer foods and beverages company is the focus of takeover rumors, which have prompted an assessment of the firm's returns. The student must choose among the principal methods of estimating the weighted-average cost of capital (WACC) for GrandMet and its three main business segments, and must then produce WACC estimates in order to evaluate the firm's performance.

Grocery store chain Winn-Dixie had rapidly expanded in an effort to become a national retailer, and by 1999 it had more than 1,000 stores. The company began manufacturing its own products, reasoning that by owning more of the supply chain, it could offer the customer less expensive options. With its new geographic focus and manufacturing facilities, Winn-Dixie attempted to secure a position as a low-cost provider with a national presence. Instead of improving the company's position in the market, however, this strategy crippled both the short- and long-term prospects for Winn-Dixie. The company paid a high premium to expand and increased its leverage without ever realizing the purposed synergies. In fact, there were dis-economies of scale because the distribution, marketing, and administrative costs had risen along with the increased revenue. The expansion and inefficient manufacturing added complexity to its distribution network, and with a greater debt load and less cash, the company was unable to reposition itself in the market when its low-cost provider strategy failed. Not only was the company unable to pursue other opportunities but it also did not have the cash to properly maintain many of its existing stores, which quickly became run down. Winn-Dixie was stuck as a general grocer with few options at a time when the industry was rapidly evolving. Following faulty strategies of expansion, supply chain changes, and increased debt, Winn-Dixie declared bankruptcy. Students will take the view that Paul “Flip” Huffard, lead consultant from Blackstone LP, had in determining the valuation and new capital structure of the company. These decisions would be critical, as they affected what each creditor class would receive and whether Winn-Dixie could emerge from bankruptcy.

Students will: 1. Assess the importance and negative financial impact of past strategic moves, and suggest possible future strategic directions and the expected benefits of such changes. 2. Learn quantitative valuation methods for a company in Chapter 11 and their effects on stakeholders. 3. Learn the elements of a plan of reorganization, including the capital structure, treatment of multiple creditor groups, and management compensation. 4. Discuss sources and uses of capital during a Chapter 11 turnaround.