Real World Case 4 Clark Retail and Others: Evaluating Operating System Upgrades

1. Real World Case 4Clark Retail and Others: Evaluating Operating System Upgrades Group 2: Ashley Elinburg Dirk Lange Charlotte Prévost Eric Gosselin Luke Duffner

2. Overview of Clark Retail • President & CEO – Brandon K. Barnholt • Currently in Chapter 11 bankruptcy • Primary Competitors:

3. 1932 – Emory Clark, a general contractor, opened first Clark gasoline station in Milwaukee, WI • Built up the Clark brand name during the middle of the century throughout the upper Midwest • Purchased first refinery in 1945 and purchased a second in 1967 • 1981 – Apex Oil Co. purchased Clark – shifted away from retail focus and on to supply and trading activities

4. 1988 – Horsham Corp. purchased Clark from Apex and changed management • 1993 – the new management’s assessment was complete, Clark got a new logo and a new direction – focus was returned to retail operations – they operated under the name Clark Refining & Marketing Inc. • During 1990’s, Clark transformed its image from an old, tired look, to a new, vibrant, customer-friendly image – adopted the On The Go marketing program • 1997 – The Blackstone Group purchased Clark from Horsham

5. 1999 – Apollo Management L.P. purchased the Clark assets from Blackstone, the name Clark Retail Enterprises Inc. is established – the entrepreneurial spirit from its founding was revitalized • Clark acquired White Hen Pantry in 2000 – focus was to be the best value leader in the retail gasoline and convenience store industry • 2001 – Clark expanded its market coverage by purchasing 78 retail locations from Wareco Service and 84 retail locations from Minit Mart Foods

6. 2002 – Clark filed for reorganization under Chapter 11 of the US Bankruptcy Code http://www.ilnb.uscourts.gov/chapter11/0240045.htm • 2003 – Clark began liquidating assets through an auction bid process • Present – Clark is still liquidating their remaining assets but still owns brand rights to over 550 Clark brand licensed stores that are independently owned and operated – most of the branded jobber stores are located in Illinois, Michigan, Ohio, Indiana, Wisconsin, Missouri, Iowa, and Louisianna

7. CASE SUMMARY • The reluctance for companies to switch their old Windows versions to newest ones. • Many corporate users are still putting off plans to migrate to Microsoft Corp.’s nearly 1 year-old desktop operating system. • Reasons? The lack of a pressing business need, the cost of upgrading, and the small perceived value. • However, some companies think that vendors who make the applications that corporate users run will no longer be supporting the previous versions.

8. CASE SUMMARY • Large companies have difficulties in upgrading because of the sheer volume of PCs involved. • Microsoft is having a hard time in trying to convince managers to use Windows XP. • Companies have invested in applications in the long run, and they are not willing to switch to what they view as marginal improvements.

9. Question 1 • Why do many companies have no plans to switch to Windows XP? • Some users who are holding back on XP cited costs, the lack of a pressing business need, and recent Windows 2000 rollouts. • Many view Windows XP as an incremental release over Windows 2000 • Large companies face bigger obstacles to upgrading because of the sheer volume of PCs involved. • Some companies are content with their current operating system.

10. Question 2 • What is a business case for switching to Windows XP? • vendors start to develop and offer only new software applications for Windows XP and not anymore for Windows 95, 2000, NT, ME etc. ”leapfrogging” of vendors • Microsoft does not anymore support Windows ME and Windows 98

11. Question 3 • What are several improvements you would like to see Microsoft make in the next version of Windows? Visit the Windows XP website at www.microsoft.com/windowsxp to help you answer. • A finished version. • A unique version. • A version which takes into account new use. • A secure version. • A non-bug version.