Ecch Best 13

ecch the case for learning
2013 edition
best-selling cases
i
This bibliographical supplement presents the best-selling cases from the ecch
catalogue during 2012. It incorporates abstracts and full bibliographical details
such as setting, topics and details of any teaching note. Visit the ecch website at
www.ecch.com/bibs to view and download a pdf version of the bibliography.
Cases are listed under ten major subject categories, each with its own entry.
Within each subject category, cases appear alphabetically by title. Teaching
notes do not have separate entries. Their reference numbers and lengths
appear within the corresponding case entry.
Case entry:
404-015-1
KIDNAPPED IN COLOMBIA
Rarick, CA
Barry University, Florida
Dan and Melissa Woodruff, an American
couple, moved to Medellin, Colombia
when Dan is offered a position with his.....
Colombia; Textiles; 275 employees;
2001
Kidnapped
Colombia
Political risk
9pp
Published sources
404-015-8 (4pp)
Reference number
Title
Author(s)
Authors institution
Abstract
Setting
Topics
Length
Source
Teaching note (length)
Reference number
This is the number to use when ordering the item.
Title
Cases in a series are generally denoted by the use of (A), (B), (C) etc.
Author(s)
The individual(s) listed either wrote or supervised the writing of the case.
Authors institution
Where there are multiple institutions, their names will appear directly under the
corresponding author(s).
Abstract
The abstract summarises the content of the case and its teaching objectives.
Setting
This provides information on the geographical location of the subject of the case, the type
of industry, the size of the organisation and the year(s) of the case event.
Topics
These are key words, subjects and issues within the case which are supplied by the
author(s).
Length
The length is given either in pages or in minutes if a video; if the item is a CD-ROM this will
be indicated here; s/w means software.
Source
This relates to the main source of data:
Field research
Published sources
Generalised experience
Teaching note (length)
If a teaching note is available for the case its reference number will appear here followed
by its length in pages in brackets.
How to use the case bibliography
Visit our website at ecch.com
ii
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iii
ecch Case Awards 2013
Outstanding contribution to the case method
Peter Killing
IMD
Overall winner
309-038-1
STRATEGIC LEADERSHIP AND INNOVATION AT APPLE INC
Loizos Heracleous and Angeliki Papachroni
Warwick Business School
Economics, Politics and Business Environment
4357
LEVENDARY CAF: THE CHINA CHALLENGE
Christopher A Bartlett and Arar Han
Harvard Business School
Entrepreneurship
9-609-066
DESIGNTHINKING AND INNOVATION AT APPLE
Stefan Thomke and Barbara Feinberg
Ethics and Social Responsibility
710-030-1
BLUE MONDAY
Henri-Claude de Bettignies and Charlotte Butler
CEIBS and INSEAD
Finance, Accounting and Control
4212
NEW HERITAGE DOLL COMPANY: CAPITAL BUDGETING
Timothy Luehrman and Heide Abelli
Human Resource Management / Organisational Behaviour
ESMT-409-0100-1
DOYOU REALLY THINK WE ARE SO STUPID? A LETTER TOTHE CEO
OF DEUTSCHE TELEKOM
Konstantin Korotov, Urs Mller and Ulf Schfer
ESMT European School of Management and Technology
Knowledge, Information and Communication Systems Management
911-012-1
M-PESA (KENYA): MOBILE FINANCIAL SERVICES FOR THE FINANCIALLY
EXCLUDED IN SOCIETY
Tawfik Jelassi and Stephanie Ludwig
ENPC School of International Management
Continued overleaf
ecch Case Awards 2013 (continued)
iv
Marketing
510-015-1
FORD FIESTA MOVEMENT: USING SOCIAL MEDIA ANDVIRAL
MARKETINGTO LAUNCH FORD'S GLOBAL CAR INTHE UNITED STATES
Andrew T Stephen
INSEAD
Production and Operations Management
612-006-1
ZARA: STAYING FAST AND FRESH
Felipe Caro
UCLA Anderson School of Management
Strategy and General Management
311-020-1
RYANAIR - THE LOW FARES AIRLINE: WHITHER NOW?
Eleanor OHiggins
University College Dublin
Case writing competition hot topic: The Business of Sport
ESMT-713-0134-1
DEFININGTHE PURPOSE FOR BORUSSIA DORTMUND GMBH & CO. KGAA
Urs Mller and Ulrich Linnhoff, ESMT European School of Management and Technology
Bernhard Pellens, Ruhr-Universitt Bochum
Case writing competition: new case writer
612-006-1
ZARA: STAYING FAST AND FRESH
Felipe Caro
UCLA Anderson School of Management
Innovation in case teaching competition
TEACHINGTHE VIRTUALLY REAL CASE STUDY
Sabine Emad, Geneva School of Business Administration
Wade Halvorson, SP Jain School of Global Management
www.ecch.com/awardwinners2013
1
Case method and specialist management disciplines
The manager of a large downtown hotel
has to decide whether to accept 60
additional reservations or not. If she
accepts, she will be overbooked and face
certain costs if all the reservations show
up. She must forecast, based on historical
data, howmany of the people holding
reservations will showup and then
decide whether to take the additional
bookings after taking into account the
cost involved. The case is used to treat
seasonality and exponential smoothing
in time-series forecasting.
Large city; Hotel; $5 billioninsales; 1988
Decision theory
Forecasting
Diverse protagonist, female
Diversity case
Management of service industries
Time series
Diversity
5 pp
Field research
UVA-QA-0389TN (9pp)
4277
PORCINIS PRONTO: GREAT ITALIAN
CUISINE WITHOUTTHE WAIT!
Heskett, JL
Luecke, R
Harvard Business Publishing
Porcinis Inc operates a chain of 23
full-service restaurants located near
shopping malls and downtown areas in
the northeastern United States. Known
for providing excellent service, Porcinis
serves high-quality Italian cuisine made
fromfresh ingredients. Looking for
expansion opportunities, management
considers launching a newchain of
lower-cost, limited-menu restaurants
called Porcini Pronto. The newoutlets will
be located along busy interstate highway
exits in the region and will serve
outstanding Italian food at reasonable
prices to both travelers and local
residents. Management is concerned
that a poor customer experience at
Porcini Pronto could tarnish the
companys well-established and
successful restaurant brand. The
management teamasks the vice
president of marketing to develop the
concept and to create an operating
strategy for the newoutlets. The VP must
also analyze three alternative expansion
strategies before management will make
any commitments to the project. If
Porcinis builds and operates the new
restaurants, the company will maintain
Game theory
Demand analysis
4 pp
5-191-115 (5pp)
9-673-057
BENIHANA OF TOKYO
Sasser Jr, WE
Klug, JR
Discusses the development of a chain of
theme restaurants. The student is asked
to evaluate the current operating
strategy and suggest a long-term
expansion strategy.
1972
Corporate strategy
Expansion
Multinational corporations
17 pp
Field research
5-696-021 (10pp)
9-803-069
FOUR SEASONS GOES TOPARIS: 53
PROPERTIES, 24 COUNTRIES, 1
PHILOSOPHY
Hallowell, R
Knoop, CI
Bowen, D
Illustrates howFour Seasons manages
hotels incountries withstronganddistinct
national cultures. Focuses onhowthe
chainmeets its exactingservice standards
ina variety of settings worldwide, with
special attentiononFrance.
France; 2002
Organizational behavior
Globalization
Human resource management
Values
Service management
24 pp
Field research
5-803-173 (9pp)
UVA-QA-0389
MARRIOTT ROOMS FORECASTING
Bodily, SE
Weatherford, L
DardenBusiness Publishing
UVA-QA-0317
AMORE FROZENFOODS (A)
Pfeifer, PE
Amore must set the fill target for its
8-ounce macaroni-and-cheese pie. Unless
five sample pies takenevery 20 minutes
average over 8 ounces, the entire
20-minute batchmust be rejected. The
case provides enoughinformationtomake
aneconomic decisiononthe fill target. The
analysis requires the use of the normal
distributiontomeasure the probability that
the five sample pies will average 8 ounces.
The case may be usedtointroduce the
distributionof a sample average.
Cortland, NY; Frozenfood; 1984
Data analysis
Production control
Sampling
Statistics
8 pp
Field research
UVA-QA-0317TN (10pp)
9-191-058
BEAUREGARDTEXTILE COMPANY
Aguilar, FJ
The sales manager and controller have to
decide on a price for a textile that lost
significant market share as a result of a
recent price increase. Information on
manufacturing costs and on the pricing
behavior of Beauregard and its only
competitor are available for analysis. The
case provides an opportunity to practice
contribution analysis, considering fixed
and variable costs as reported in a typical
cost report. Also tests the students
ability to recognize the need to consider
the situation fromthe competitors point
of view. Finally, it poses a prisoners
dilemma for the two firms where each
would prefer a set of prices unfavorable
to the other so that prices are likely either
to be unstable or to be stable at a
suboptimal level for both parties. The
class can close with students attempting
to devise a pricing strategy that would
reach the optimal level.
UnitedStates; $82 millionsales revenue;
1990
Cost analysis
Decision making
Pricing strategy
2
Ontario; 1982
Social enterprise
Market segmentation
Expansion
Quality management
Capacity planning
Word-of-mouth marketing
18 pp
Field research
5-686-120 (16pp)
9-805-002
SHOULDICE HOSPITAL LIMITED
Abridged version
Hallowell, R
Heskett, JL
A hospital specializing in hernia
operations is considering whether and
howto expand the reach of its services.
The teaching purpose is to teach in
service management, management of
operations, and business strategy courses.
Ontario; $12 millionrevenues; 2004
Social enterprise
Expansion
Capacity planning
14 pp
Field research
9-910-419
SOUTHWEST AIRLINES: INA
DIFFERENT WORLD
Heskett, JL
Sasser, E
This is the fourth in a 35-year series of HBS
cases on an organization that has
changed the rules of the game globally
for an entire industry by offering both
differentiated and low-price service. The
focus of the case is on whether
Southwest Airlines should buy gates and
slots to initiate service to NewYorks
LaGuardia airport, which does not fit the
airlines profile for cost, ease of service,
and other factors. The bigger issue is how
the organization should deal with
competition that has successfully
emulated more and more of what it does
in an operating environment that has
changed significantly. Hence the subtitle,
which was suggested by Herb Kelleher,
Southwests Chairman and CEO, Emeritus.
5-year life. In addition, the company must
decide which of two offers to accept
fromlocal dealerships for heavy
equipment to support the newplant. The
case provides comparison of net present
value, internal rate of return, payback,
and profitability index as criteria for
making investment decisions.
Construction, materials
Decision theory
Valuation
Purchasing
3 pp
Published sources
9-683-068
SHOULDICE HOSPITAL LIMITED
Heskett, JL
Various proposals are set forth for
expanding the capacity of the hospital. In
assessing them, serious consideration
has to be given to the culture of the
organization and the importance of
preserving it in a service delivery system.
In addition to issues of capacity and
organizational analysis, describes a
well-focused, well-managed medical
service facility that may well point the
way to future economies in the field.
complete control of operations and the
customer experience but expansion will
take a very long time. Franchising and
syndication are two other options which
provide faster expansion but introduce
the risk of losing control of the brand.
The VP must analyze the options and
make his final recommendation.
UnitedStates; 2011
Franchising
Quantitative analysis
Performance measurement
Motivation
Syndication
Incentives
Consumer behavior
12 pp
4278 (14pp)
UVA-QA-0424
ROADWAY CONSTRUCTION
COMPANY
Schwartz, DL
Carraway, RL
A road construction company needs a
newasphalt plant and must decide
between two options: a drumplant with
a 10-year life or a batch plant with a
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3
850,000 employees, $4 billionrevenues;
1997-2005
Brand management
Brands
Expansion
International business
Multibranding
Operations
Service management
30 pp
Field research
5-606-108 (22pp)
9-605-054
ZIPCAR: INFLUENCINGCUSTOMER
BEHAVIOR
Frei, FX
Rodriguez-Farrar, H
At Zipcar, customers share the use of cars
and, as a result, rely on each other for
their service experience. Customers are
required to keep the car clean and the
gas tank full and to return the car on time.
Told fromthe perspective of two
customers: Sal Fishman, who has a car
and is running late at an interview, and
Anita Karr, who has just arrived at her
reserved cars empty parking spot.
UnitedStates; 22 employees; 2004
Operations management
Consumer behavior
Service management
8 pp
Published sources
5-606-032 (32pp)
5-608-041 (23pp)
5-602-113 (28pp)
UVA-QA-0453
WAITE FIRST SECURITIES
Bodily, SE
An account executive has the task of
calculating a beta value for three stocks
of interest to an important client, based
on five years of monthly total returns. The
client is interested in these beta values as
measures of the riskiness of the three
investments. The case is used near the
beginning of a module on regression. It
focuses on the simple linear regression
model relating equity returns to market
returns. This use of regression (to
calculate a stocks beta) is very common
in financial analyses and will be seen by
the students in other courses. The case
serves to clarify the distinction between
systematic and unsystematic risk and
between R-squared and the standard
deviation of residuals as measures of
forecasting uncertainty.
Diverse protagonist
Female
Portfolio management
Regression analysis
Risk analysis
Security analysis
Diversity case
Statistics
Diversity
8 pp
Published sources
UVA-QA-0453TN (14pp)
9-606-041
YUM! BRANDS, INC: A CORPORATE
DO-OVER
Frei, FX
Edmondson, AC
Weber, JB
Sherman, E
Describes the successful turnaround of
the restaurant company Yum! Brands
after its spin off fromPepsiCo and covers
howthe companys leadership planned
and executed on virtually every
dimension of the employee experience.
The main dilemma centers on what the
company should do in terms of
multi-branding - housing two brands in
one physical location.
NewYork, Texas; 35,000 employees, gross
revenue $10 billion; 2008
Operations
Service management
16 pp
Field research
5-910-426 (10pp)
9-800-355
THE COCA-COLA COMPANY (A): THE
RISE ANDFALL OF MDOUGLAS
IVESTER
Watkins, MD
Knoop, CI
Reavis, C
Chronicles MDouglas Ivesters 26-month
termas chairman and CEOof The
Coca-Cola Co, and howhe navigated the
company through a series of what some
consideredsmall crises.
$19 billionrevenues; 1997-1999
Succession planning
Decision making
Management styles
Leadership
Management performance
Organizational culture
19 pp
Published sources
5-904-088 (11pp)
9-601-163
THE RITZ-CARLTONHOTEL COMPANY
Sucher, SJ
McManus, SE
In just seven days, the Ritz-Carlton
transforms newly hired employees into
Ladies and Gentlemen Serving Ladies
and Gentlemen. The case details a new
hotel launch, focusing on the unique
blend of leadership, quality processes,
and values of self-respect and dignity, to
create award-winning service.
District of Columbia; 18,000 employees,
$1.5 billionrevenues; 2000
Innovation
Change management
Brands
30 pp
Field research
4
in 2002 and 10%in 2001. This case
discusses in detail the nature of call
centres in India and the various reasons
that have led to the high attrition. Call
centres in India is a nascent industry, but
has been experiencing robust growth
since the late 1990s. Revenues fromcall
centres have increased fromUS $90
million in 1999-2000 to about US $810
million in 2002-2003. This industry now
faces the problemof employee attrition,
which if left unchecked could seriously
affect Indias competitive advantage of
high quality, lowcost service offering.
This case allows scope for discussion in
the following areas: (1) the challenges
being faced by Indian call centres with
the emergence of attrition problems and
whether or not this would affect Indias
current competitive advantage; (2) the
issues related to compensational and
non-compensational factors of attrition
and which of these needs greater
attention; (3) if the inherent nature of the
job is causing attrition in call centres,
then what should be done by the
companies to reduce attrition; and (4)
whether the focus of retention strategies
should be more on compensational or
non-compensational factors.
India; Informationtechnology enabled
services (ITES); 2004
Information technology enabled
services in India
India BPO(business process
outsourcing) sector
Call centres in India
Employment in Indian call centres
Employee attrition in Indian call
centres
Reasons for attrition in Indian call
centres
The growth of call centres in India
Functions of a call centre
Categorisation of Indian call centres
Stress in Indian call centres
Work related disorders in Indian call
centres
13 pp
Published sources
204-132-8 (13pp)
9-704-040
JOURNEYTOSAKHALIN: ROYAL
DUTCH/SHELL INRUSSIA (A)
Abdelal, R
Operations of Royal Dutch/Shell in Russia
included a strategic alliance with
Gazprom, the countrys natural gas
9-700-047
HITTINGTHE WALL: NIKE AND
INTERNATIONAL LABOR PRACTICES
Spar, DL
Burns, JL
In the mid-1990s Nike, one of the worlds
most successful footwear companies, is
hit by a spate of alarmingly bad publicity.
After years of high-profile media attention
as the company that canjust do it, Nike is
suddenly being portrayed as a firmthat
relies on low-cost, exploited labor in its
overseas plants. Nike officials vigorously
deny the charges, claiming that Nike has
no control over the independent
contractors who manufacture Nike shoes.
But the activists will not retreat.
Eventually, Nike must learn to deal with
the activists claims and with the tangle of
conflicting data that surrounds the
concept of afair orliving wage.
UnitedStates, Vietnam, Indonesia; 16,000
employees, gross revenue: $9 billion
revenues; 1991-1999
Business &government relations
Business ethics
Activists
International operations
Wages &salaries
Labor relations
Working conditions
Developing countries
23 pp
Published sources
5-701-020 (13pp)
204-132-1
INDIANCALL CENTERS (A): RISING
EMPLOYEE ATTRITION
Ganesan, S
Malini, N
IBS Case Development Center
In 2004, call centres were the fastest
growing segment of the Indian
information technology enabled services
(ITES)-BPO(business process
outsourcing) sector with historic growth
rates of 112%in revenues and about 75%
in employees. The competitive
advantage that India enjoyed was the
combination of a huge pool of
technically qualified English speaking
graduates who were willing to work for
lower pay than their counterparts in the
US or the UK. However, the Indian
companies nowfaced the problemof
increasing attrition among its
workforce - 30-35%in 2003, from20-25%
9-797-085
ENRONDEVELOPMENT
CORPORATION: THE DABHOL POWER
PROJECT INMAHARASHTRA, INDIA(A)
Abridged version
Wells, LT
A large, lucrative power plant is
negotiated for construction/operation by
an American power company in Indias
evolving privatized power sector. The
process of incorporating the project is
captured in this case. The American
company will own and operate the plant
in India, which will sell power to India.
India; 1992-1995
Business &government relations
Market entry
Energy
Change management
Privatization
Negotiation
15 pp
Field research
9-181-027
FREEMARK ABBEYWINERY
Krasker, WS
Freemark Abbey must decide whether to
harvest in viewof the possibility of rain.
Rain could damage the crop but delaying
the harvest would be risky. On the other
hand, rain could be beneficial and greatly
increase the value of the resulting wine.
This decision is further complicated by
the fact that ripe Riesling grapes can be
vinified in two ways, resulting in two
different styles of wine. Their relative
prices would depend on the uncertain
preference of consumers two years later,
when the wine is bottled and sold.
California; 1980
Decision analysis
Decision trees
Managerial economics
Risk management
3 pp
Field research
5-895-053 (5pp)
5
9-707-038
DUTCH/SHELL INRUSSIA (C)
Supplement
Abdelal, R
Vandamme, MN
Must be used with the (A) case.
Energy
Foreign investment
Globalization
Strategic alliances
9 pp
Published sources
4357
LEVENDARY CAF: THE CHINA
CHALLENGE
Bartlett, CA
Han, A
Just weeks into her newjob, Mia Foster, a
first time CEOwith no international
management experience, is faced with a
major challenge at Levendary Caf, a $10
billion US-based fast food chain.
Strategically, many of her corporate staff
have become concerned that the
companys major expansion into China is
$10 billion, the second phase of Sakhalin
II would be the single largest investment
decision in the history of Royal
Dutch/Shell, as well as the single largest
foreign direct investment in Russias
history. Sakhalin II would also be the
largest integrated oil and gas project in
the world. The project, however, faces a
number of challenges, however. A
production sharing agreement (PSA) - a
commercial contract between the
foreign investor and a host government
that replaces the countrys tax and
license regimes for the life of the project -
governs Sakhalin II. Although Sakhalin IIs
PSA enjoys the status of Russian law,
other Russian laws conflict with the terms
of the PSA. PSAs have also become
controversial within Russia. After several
years of waiting in vain for legal
stabilization, Shell and SEIC executives
must decide whether the project should
go forward.
Energy
Foreign investment
Globalization
Strategic alliances
4 pp
Published sources
5-706-067 (20pp)
monopoly, the development of the
Salymoil fields in Siberia, and a small
retail refilling network in St Petersburg.
Focuses on the Sakhalin II project.
Sakhalin II is the reason for the existence
of the Sakhalin Energy Investment
Company (SEIC), owned by Royal
Dutch/Shell (55%), Mitsui (25%), and
Mitsubishi (20%). Worth approximately
$10 billion, the second phase of Sakhalin
II would be the single largest investment
decision in the history of Royal
Dutch/Shell, as well as the single largest
foreign direct investment in Russias
history. Sakhalin II would also be the
largest integrated oil and gas project in
the world. The project, however, faces a
number of challenges, however. A
production sharing agreement (PSA) - a
commercial contract between the
foreign investor and a host government
that replaces the countrys tax and
license regimes for the life of the project -
governs Sakhalin II. Although Sakhalin IIs
PSA enjoys the status of Russian law,
other Russian laws conflict with the terms
of the PSA. PSAs have also become
controversial within Russia. After several
years of waiting in vain for legal
stabilization, Shell and SEIC executives
must decide whether the project should
go forward.
Russia; 90,000 employees, $236 billion
revenues; 1991-2003
Foreign investment
Globalization
Energy
Strategic alliances
27 pp
Field research
9-706-013
DUTCH/SHELL INRUSSIA (B)
Supplement
Abdelal, R
Tarsis, I
Operations of Royal Dutch/Shell in Russia
included a strategic alliance with
Gazprom, the countrys natural gas
monopoly, the development of the
Salymoil fields in Siberia, and a small
retail refilling network in St Petersburg.
Focuses on the Sakhalin II project.
Sakhalin II is the reason for the existence
of the Sakhalin Energy Investment
Company (SEIC), owned by Royal
Dutch/Shell (55%), Mitsui (25%), and
Mitsubishi (20%). Worth approximately
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ecch connect
6
York was brought by Ken SaroWiwas
relatives for complicity in his detention,
trial and hanging, as well as related
human rights abuses in Ogoni land. The
case is set within the context of the
political economy of crude oil production
and trade in Nigeria. It examines the
dilemmas faced by companies caught in
the crossfire of demands for national
economic development, and sectional
struggles for political power and
socio-economic justice, as well as the
ethical demands of satisfying the
expectations for corporate social
responsibility within such a milieu.
Nigerias Niger Delta; Mining, petroleum;
Over 2,000 employees; 1958-2009
Business environment
Social responsibility
Human rights
Nigeria
Niger Delta
Ken SaroWiwa
Environment and development
Risk management
Mining
Oil joint ventures
Production sharing contracts
Politics
Ethics
Shell Petroleum
Multinationals and developing
countries
15 pp
Published sources
209-030-8 (5pp)
203-026-1
STARBUCKS INTERNATIONAL
OPERATIONS
Dutta, S
Subhadra, K
IBS Center for Management Research
The case gives an overviewof Starbucks
international operations. It explains why
Starbucks had to expand outside the US
and the entry strategies it adopted in
international markets. The case also
discusses the various risks faced by
Starbucks in international markets and
the effect of these risks on its revenues in
international markets. The case ends with
the future prospects of Starbucks in
international markets. The case is
developed to enable students to: (1)
understand the strategy consideration
behind entering international markets;
(2) examine the different modes of entry
in international markets across the
continents; (3) understand the problems
limitations imposed by available market
liquidity, LTCMwas considering whether
it was a prudent and opportune moment
to return capital to investors.
Connecticut; 1997-1998
Capital markets
Efficient markets
Investment management
Arbitrage
Risk management
23 pp
Field research
IMD-2-0121
PRODUCT STEWARDSHIP INTHE ICT
INDUSTRY: THE USE OF COLTANIN
MOBILE PHONES
Steger, U
Nick, A
Ionescu-Somers, A
IMD
The ICT (information and communication
technology) industry is using tantalum
fromCongo, namely Coltan, in its mobile
phones. Public attention has lost
momentumin the last years, yet the
problemis still very much on the table:
howto ensure that mobile phones are
not connected to the bloody war and
environmental destruction in the
Democratic Republic of Congo. And
further: should global business address
politically sensitive questions and aimfor
regulated Coltan mining and export?
WesternEurope, Democratic Republic of
Congo; Informationandcommunication
technology (ICT); Large multinational
company (disguised); 2005
Supply chain management
Corporate sustainability
management
Corporate social responsibility
Coltan
Congo
ICT (information and
communication technology)
5 pp
Field research
209-030-1
SHELL ANDTHE NIGER DELTA: INAND
OUT OF OGONI LAND
Ajai, O
Lagos Business School
A US federal judge has given leave for the
hearing to begin in the Wiwa & 3 ors vs
Shell case. The case against Shell in New
moving too far fromLevendarys
well-defined concepts of store design
and menu. Organizationally, Foster has
been frustrated by the apparent
unwillingness of Louis Chen, president of
Levendary China, to conformto the
companys planning and reporting
processes. Meanwhile, financial evidence
shows that Chens efforts have produced
strong results and suggests that he
knows China far better than US
headquarters does. The entrepreneurial
Chen has resisted attempts by Foster and
others to discuss corporate plans for
China. As Foster flies to China to meet
with Chen she faces a decision that will
determine the future of Levendary China
and perhaps the entire globalization
effort: can she manage Chen at all, and if
so, how?
2011
Foreign subsidiaries
International management
General managers
Globalization
Entrepreneurship
Strategic planning
Strategy
14 pp
4358 (10pp)
9-200-007
LONG-TERMCAPITAL MANAGEMENT,
LP (A)
Perold, AF
Long-TermCapital Management, LP
(LTCM) was in the business of engaging
in trading strategies to exploit market
pricing discrepancies. Because the firm
employed strategies designed to make
money over long horizons - fromsix
months to two years or more - it adopted
a long-termfinancing structure designed
to allowit to withstand
short-termmarket fluctuations. In many
of its trades, the firmwas in effect a seller
of liquidity. LTCMgenerally sought to
hedge the risk - exposure components of
its positions that were not expected to
add incremental value to portfolio
performance and to increase the
value-added component of its risk
exposures by borrowing to increase the
size of its positions. The funds positions
were diversified across many markets.
This case is set in September 1997, when,
after three and a half years of high
investment returns, LTCMs fund capital
had grown to $6.7 billion. Because of the
faced by companies while entering
international markets; (4) study the
problems faced by companies in
international markets both operational
and remote; (5) analyse the impact of
country and political risks on a
companys international operations; and
(6) explore the strategies that can be
adopted to improve performance in
international markets. The case is aimed
at MBS/PGBDA students and is intended
to be a part of the economics, politics
and business environment curriculum.
Global; Coffee retailing; Large; 1995-2003
Starbucks Corporation
Howard Schultz
Joint ventures
Wholly-owned subsidiaries
Licensing
Strategic risk
Operational risk
Political risk
Country risk
PepsiCo
McDonalds
Coca-Cola
Globalisation
16 pp
Published sources
203-026-8 (6pp)
C28-17-003
THE RWANDANGENOCIDE: A
CHALLENGE FORTHE UNITED
NATIONS
Prado Perez, E
Tecnologico de Monterrey
The case confronts the student with one
of the most significant decisions the UN
Security Council has taken, namely, how
to respond when genocide broke out in
Rwanda in April 1994. The case confronts
the Realist and Liberalist approaches of
international relations leading to the
debate on ethics and international affairs,
particularly regarding human rights and
national interest. It also examines how
decisions about international peace and
security are made and what factors may
influence these kinds of decisions.
1994
UNstructure/charter
Foreign policy decision making
Ethics in international affairs
16 pp
Published sources
NE28-17-003 (5pp)
4269
UNITEDCEREAL: LORA BRILLS
EUROBRANDCHALLENGE
Bartlett, CA
Carlson, C
The case, set within the European
organization of a giant multinational
breakfast foods company, describes a
launch decision for a newcereal product.
As the case evolves, the decision has
major strategic and organizational
implications for Lora Brill, EuropeanVP.
The case focuses especially on two
important decisions facing Brill: Should
Healthy Berry Crunch become the
companys first Eurobrand and be
introduced in a co-ordinated manner
Europewide? And, froman organizational
perspective, should she create Eurobrand
Teams to implement her proposed
Eurobrand concept?
West Germany, Europe; 2010
Organizational design
Organizational structure
Market entry
General management
International R&D
Marketing strategy
Strategy
Subsidiaries
10 pp
4270 (12pp)
203-006-1
VOLVO-SCANIA: MERGERS AND
COMPETITIONPOLICY
Traca, D
Strauss-Khan, V
Krinks, P
INSEAD
On March 2000, the European
Commission rejectedVolvos application
for competition clearance of the Scania
acquisition on the grounds that it would
give the merged firms a virtual monopoly
in Sweden and a clearly dominant
position in the Nordic area. Such a case
leads to the following questions: (1) why
is competition policy necessary? (2) how
do you measure market power? and (3)
howto define the market? The case
discusses the economic analysis of
mergers and the parameters of their
regulation. It allows the analysis of the
determinants of merger activity froma
corporate perspective. It also looks at the
theory and the practice of merger
regulation and aims at discussing the
main aspect of competition law, ie, the
abuse of a dominant position. A
particular emphasis is made on the
definition of the relevant market while
assessing market power abused.
Sweden; Trucks andbuses - US SIC: 371;
Volvosales in1999: 125,019 SEK; 2000
Mergers
Abuse of market power
Relevant market
Competition policy
Truck industry
Market share
16 pp
7
8
Entrepreneurship
9-809-093
EVANWILLIAMS: FROMBLOGGERTO
ODEO(B) Supplement
Wasserman, NT
Maurice, L
For several months, founder-CEOEvan
Williams has felt trapped, unable to
control Odeo and its strategic direction.
He longs for thesimple days of Blogger,
the previous venture he had co-founded.
Although his Blogger experiences had
included a major blow-up with his
co-founder that had resulted in legal
proceedings, a brush with near-
bankruptcy, and the laying off of his
entire team, Williams has become even
more disillusioned with his current
venture, Odeo. Odeo, a podcasting
pioneer, had debuted almost two years
before and had gotten off to a very
strong start, with a high-profile debut at a
prominent industry conference,
coverage on the front page of the New
York Times Business section, and the
raising of a large round of financing from
a top-tier venture capital firm. His
attempts to find an acquirer have failed,
layoffs have begun, and he is nowfacing
a meeting with an increasingly hostile
board of directors. At that meeting, he is
very tempted to resign so he can move
on to his next project and regain the thrill
of being an entrepreneur.
California; 1-14 employees, $1 million
revenue; 1999-2005
Tradeoff analysis
Financing
Entrepreneurship
Teams
Information technology
2 pp
Field research
807-016-1
FRESHTRADING(A)
Bates, J
Mitchell, J
Rivers, O
LondonBusiness School
Could you turn the light on? Adam
Balon asked his colleague JonWright.
Wright, Balon and their friend Richard
Reed had assembled in Balons office at
Virgin Cola to begin drafting the plan for
their business venture, a newbrand of
fresh fruit smoothie drinks. It was a typical
English late summer afternoon - heavily
overcast, with the promise of rain. In the
Effectuation
Hotel
Food
Beverage
Export
Innovation
4 pp
Published sources
UVA-ENT-0119TN (18pp)
9-809-088
EVANWILLIAMS: FROMBLOGGERTO
ODEO(A)
Wasserman, NT
Maurice, L
For several months, founder-CEOEvan
Williams has felt trapped, unable tocontrol
Odeoandits strategic direction. He longs
for thesimpledays of Blogger, the previous
venture he hadco-founded. Althoughhis
Blogger experiences hadincludeda major
blow-upwithhis co-founder that had
resultedinlegal proceedings, a brushwith
near-bankruptcy, andthe layingoff of his
entire team, Williams has become even
more disillusionedwithhis current venture,
Odeo. Odeo, a podcastingpioneer, had
debutedalmost twoyears before andhad
gottenoff toa very strongstart, witha
high-profile debut at a prominent industry
conference, coverage onthe front page of
the NewYorkTimesBusiness section, and
the raisingof a large roundof financing
froma top-tier venture capital firm. His
attempts tofindanacquirer have failed,
layoffs have begun, andhe is nowfacinga
meetingwithanincreasingly hostile board
of directors. At that meeting, he is very
temptedtoresignsohe canmove ontohis
next project andregainthe thrill of being
anentrepreneur.
California; 1-14 employees, $1 million;
1999 to2005
Tradeoff analysis
Financing
Entrepreneurship
Teams
Information &technology
14 pp
Field research
808-042-1
ALBERTOGONZALEZ (A)
Mullins, JW
Grant, A
It was 15 January 2000 and Alberto
Gonzalez, CEOof Belen Healthcare, knew
he had a crucial decision to make over
the next fewdays. As he headed over to
his offices across fromMadrids Retiro
Park, he reflected on the remarkable
events of the previous decade. Ten years
ago, he had known nothing about care
homes. NowBelen was one of the largest
care home operators in Spain, with a one
per cent share of this fragmented market.
The 1990s had been a remarkable
decade for Gonzalez. While there was
much to be proud of, he nowfound
himself at a crossroads. The sector, which
had been booming in the latter half of
the nineties, was nowin meltdown, with
no access to cash and littered with
casualties on both the operator and
property side. Belen still had its head
above water but Gonzalez was unsure for
howmuch longer. Should he continue as
an operator, roll up his sleeves and get
stuck into running his substantial
portfolio of homes? Or should he try to
exit this nowtroubled industry and hope
he could find a buyer for his company?
Spain; Healthcare
Entrepreneurship
Finance
Spain
15 pp
Field research
UVA-ENT-0119
COLDOPPORTUNITY (A): THE NILS
BERGQVIST STORY
Sarasvathy, S
Suitable for MBA and executive learners,
this case series presents an engaging
narrative that prompts students to
discuss entrepreneurial thinking. An
entrepreneur who loves his native
Swedish Lapland uses his natural gift for
effectuation to ask What? What next?
AndWhat now? As his ventures evolve,
students begin to ask themselves how
they would master similar challenges to
their own entrepreneurial plans and
expectations. The case can be taught in
either one or two sessions of a 90-minute
MBA course or a four-hour executive
education class.
9
Entrepreneurship
Values
Visionary management
20 pp
Field research
5-395-155 (15pp)
9B10M067
LOUIS VUITTONINJAPAN
Paul, J
Feroul, C
Ivey Publishing
This case study deals with the
opportunities and challenges of Louis
Vuitton, the leading European luxury
sector multinational firm, in Japan, taking
into account the unique features of
brand management, and integrating
culture and consumer behaviour in
Japan. In the last decade, Japan has been
Louis Vuittons most profitable market,
but it seems that the global economic
crisis has resulted in a decline in sales.
Facing a weak economy and a shift in
consumer preferences, Louis Vuitton has
been adapting its unique strategy in the
Japanese market. The days of relying on a
logo and charging a high price seemto
be gone as there is more interest in
craftsmanship and value for money. To
promote sales, the company has had to
launch less expensive collections made
with cheaper materials. The brand has
also been opening stores in smaller cities,
where the lure of the logo still works.
Over the years, Japanese consumers have
demonstrated fascination with and
passion for the iconic brand. What have
been the keys to Louis Vuittons
successful business model in the
Japanese market? This case was written
to help students develop their analytical
and strategic decision skills. The case
aims at helping in developing a business
model, adapting to a newcultural
environment, recommending a course of
action for further strategic moves,
identifying issues and eventually
enhancing multidisciplinary decision
making. This case can be used to discuss:
(1) the complexity of multinational
business, particularly the issues of brand
management, international marketing
and marketing strategy for succeeding in
East Asia; (2) consumer behaviour in
Japan and characteristic features of the
Japanese market; and (3) strategies to
succeed in a foreign country.
financial analyses do you perform? What
role does risk play in your evaluation? and
Howdo you think about a potential exit
route? Russell Siegelman, partner at
Kleiner Perkins Caufield & Byers; Sonja
Hoel, managing director at Menlo
Ventures; FredWang, general partner at
Trinity Ventures; and Robert Simon,
director at Alta Partners, are interviewed.
SiliconValley; 2004
Business models
Interviews
Entrepreneurial finance
Entrepreneurship
Risk assessment
Financial analysis
19 pp
Field research
5-805-055 (5pp)
9-390-132
INGVAR KAMPRADANDIKEA
Bartlett, CA
Nanda, A
Traces the development of a Swedish
furniture retailer under the leadership of
an innovative and unconventional
entrepreneur whose approaches redefine
the nature and structure of the industry.
Traces IKEAs growth froma tiny mail order
business to the worlds largest furniture
dealership. Describes the innovative
strategic and organizational changes
Kamprad made to achieve success. In
particular, focuses on his unique vision
and values and the way they have
become institutionalized as IKEAs
binding corporate culture. The trigger
issue revolves around whether this vital
corporate glue can survive massive
expansion into the United States and the
Eastern Bloc and Kamprads replacement
as CEOby aprofessional manager.
Europe, Global, Stockholm, Sweden,
Zurich; Furniture, retail industry; Large,
Business history
Catalogs
Corporate culture
Globalization
Growth
Management philosophy
Operations
Product design
Strategy
Succession planning
Suppliers
Trade associations
steadily increasing gloomit was
becoming impossible to read the mass of
data gathered on the desk in front of
them. You think we need to cast light on
the problem? joked Reed. In truth, each
of the three knewit would take more
than electricity to illuminate the
difficulties that confronted them. They
had been researching their idea for
almost six months, and at the outset they
had set themselves some ambitious
goals. The quality of our closest rivals
product is not as good as you would
make at home, nor as good as the
smoothies you can buy in the USA, they
had said to one another. Well beat them
on taste, and match themon price. But
the three friends analysis nowseemed to
showthat if they stuck to those targets
they would struggle to meet a third, no
less crucial, objective. If youre going to
survive youll need to hit gross margins of
40 percent - thats the standard for the
FMCG(fast moving consumer goods)
sector, a senior colleague of Wrights at
Bain, the management consultancy, had
told themearly on. But every time that
Wright had run a spreadsheet model, the
message had seemed to be the same:
they would not be able to achieve their
financial goals and remain true to their
other aspirations. This left the three with
some stark choices. Should they plan to
increase price, or lower quality? Or was
there another solution to enable themto
get this business off the ground?
UK; 1998
Entrepreneurship
Business plans
Entrepreneurial marketing
20 pp
Field research
9-805-019
HOWVENTURE CAPITALISTS
EVALUATE POTENTIAL VENTURE
OPPORTUNITIES
Roberts, MJ
Barley, L
Four venture capitalists fromleading
SiliconValley firms are interviewed about
the frameworks they use to evaluate
potential venture opportunities.
Questions include: Howdo you evaluate
the ventures prospective business
model? What due diligence do you
conduct? What is the process through
which funding decisions are made? What
Japan, France; Leather andleather
products; Large; 2008-2009
International marketing
Strategic management
Brand management
20 pp
Published sources
8B10M67 (8pp)
9-898-154
ONSET VENTURES
Roberts, MJ
Tempest, N
ONSET Ventures, is a venture capital firm
focused on seed-stage start-ups.
Describes the principles and strategies
the firmhas developed over its life. Also
presents an in-depth discussion of one of
the seed-stage companies ONSET has
been incubating.
California; 6 employees; 1997
Financing
Venture capital
30 pp
Field research
5-899-052 (5pp)
802-014-1
PHARMA UK (A): THE TRANSDERMAL
TECHNOLOGY
Birkinshaw, J
This case examines the decision by the
UK subsidiary of Pharma (a Swiss
pharmaceutical company) to develop a
newtechnology for transmitting drugs
through the skin, despite the absence of
support fromthe parent companys R&D
labs. The issue facing the managing
director of the UK subsidiary is whether
to continue with the project in the face of
resistance fromHQ, or stop.
UK, Switzerland; Pharmaceutical; Large;
1993-1994
Multinational
Subsidiary
Entrepreneurship
7 pp
Published sources
802-015-1
PHARMA UK (B): PROPOSAL TOTHE
EUROPEANMARKETINGBOARD
Birkinshaw, J
This case focuses on the European
Marketing Board of Pharma, and the
decision whether to approve
expenditure on the UKs subsidiarys
transdermal technology or not.
UK, Switzerland; Pharmaceutical; Large;
1993-1994
Multinational
Subsidiary
Entrepreneurship
2 pp
Published sources
9-386-019
R&R
Stevenson, HH
Jarillo Mossi, JC
Outlines alternative mechanisms for
getting into business. Shows the means
by which an experienced entrepreneur
can gain control over the necessary
resources in order to lower the fixed costs
of business entry. Provides a mechanism
for discussing the role of experience,
credibility, and contacts in the
development of a non-business venture.
NewYork; $3 billionsales; 1984
Capital costs
Entrepreneurship
Development stage enterprises
18 pp
Field research
5-386-160 (4pp)
5-389-029 (6pp)
811-036-1
RAINBOWANIMATION(A): THE
CHALLENGE OF SURVIVAL
Turconi, S
Hay, M
Iginio Straffi, a young and entrepreneurial
comic artist, was determined to set his
own childrens animation company. In
1995 he co-founded RainbowLtd, and
during the companys first three years, he
managed to secure contract work as well
as the funds necessary to produce
Tommy &Oscar - Rainbows first wholly
ownedTV series. In the wake of the Asian
Financial Crisis, however, Rainbows major
partner found itself in dire straits and
resolved to terminate their contract. Straffi
would have to overcome a seemingly
insurmountable combination of financial,
operational and commercial challenges if
he expected Rainbowto survive.
Entrepreneurship
Registered, approved educators
can access on-line inspection
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(presentations, teaching notes
etc) for free at ecch.com.
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10
11
Italy, Singapore; Mediaentertainment;
1995-1998
Entrepreneurship
Strategy
Newbusiness development
Value creation
Value appropriation
Media entertainment
Children animation
Global animation industry
Industry attractiveness
Value chain analysis
Cash management
Start-up funding
21 pp
Field research
807-034-1
SPREADSHIRT (A)
Mullins, JW
Rasmussen, B
It was late on a frosty February evening in
2004 in Leipzig, the largest city in the
federal state of Saxony in Germany. Lukasz
Gadowski, the Founder of Spreadshirt, had
just had dinner with his business partner
and CTO, (Chief Technology Officer)
Matthias Spiess, in the Panorama
restaurant on the top floor of the
142.5-metres-high City-Hochhaus.
Gadowski was standing on the terrace of
the restaurant, overlooking the myriad of
lights delineating the streets and
buildings of the medieval centre of Leipzig
and its surroundings. His conversation
with Spiess had left himdeep in thought.
Together, in 2002, Gadowski and Spiess
had founded Spreadshirt, a successful
on-line e-commerce company selling
customisedT-shirts and providing
software for website operators to set up
their own on-line merchandising shops.
They had outsourced the actual
production of theT-shirts to a small printer
in Leipzig, but Gadowski was increasingly
dissatisfied with this arrangement. We
described the relationship with the printer
as strategic in our business plan, Gadowski
had reminded Spiess during dinner, but in
real life it bears little resemblance to any
alliance. The cultures of a manufacturing
plant and an on-line business are simply
too far apart. There are no synergies.
Gadowski had suggested to Spiess that
they bring production in-house. Spiess
had hesitated. Our expertise is in on-line
marketing and e-commerce - not
old-fashioned manufacturing.
Germany; On-line marketing; Start-up;
2002-2004
Entrepreneurship
Internet
On-line marketing
e-Commerce
15 pp
Field research
9-803-096
ZIPCAR: REFININGTHE BUSINESS
MODEL
Hart, MM
Roberts, MJ
Stevens, JD
Zipcar is a start-up organized around the
idea of sharing car usage via a
membership organization. This case
describes several iterations of the Zipcar
business model and financial plan. These
iterations include a very early version and
a version developed just prior to the
launch of the business, as well as data
fromthe first fewmonths of operations.
Students are called on to analyze the
underlying economics and business
model for the venture and to discover
howthese assumptions are holding up
as the business is actually rolled out.
Massachusetts; 5 employees, $1 million
revenues; 1999-2000
Operating costs
Financing
Business models
Business plans
Entrepreneurship
Growth strategy
Wireless technologies
Women in business
Logos
20 pp
Field research
5-804-060 (17pp)
5-805-152 (10pp)
Entrepreneurship
12
KSG1219.0
A MEASURE OF DELIGHT: THE
PURSUIT OF QUALITY AT AT&T
UNIVERSAL CARDSERVICES (A)
Watkins, MD
Rosegrant, S
JohnF Kennedy School of Government
This total quality management case,
focused on one of the most successful
newinitiatives by a major firmin the US,
serves as a complement to the public
sector TQMcases. It describes the theory
and operations of the AT&T Universal card,
a credit card introduced successfully in
1990. Specifically, the case looks at
Universal Card divisions methods of
motivating and monitoring its frontline
telephone associates those who deal
with individual customers and who, the
firmhoped, would succeed in not just
serving butdelighting customers.
Customer service
Marketing
Total quality management (TQM)
27 pp
9-104-071
ACCOUNTINGFRAUDAT WORLDCOM
Kaplan, RS
Kiron, D
The principal players inWorldComs
accounting fraud included CFOScott
Sullivan, the General Accounting and
Internal Audit departments, external
auditor Arthur Andersen, and the board
of directors. The case provides sufficient
detail to allowfor a full discussion of the
pressures that lead executives and
managers tocook the books, the
boundary between earnings smoothing
or management and fraudulent
reporting, the role for internal control
systems and internal audit to prevent or
rapidly detect accounting fraud, the
expectations about governance
processes performed by external
auditors and the board of directors, and
the pressure and consequences when
middle managers followorders that they
knoware wrong. Written fromthe public
record, the case contains numerous
quotes froman individual involved in the
WorldComfraud that were reported by
the Investigative Committee andWall
Street Journal articles about several of
the individuals caught up in the situation.
UnitedStates; 60,000 employees, gross
revenue: $30 billionrevenues; 1999-2002
Business ethics
Financial statements
Accounting policies
Accounting procedures
Corporate governance
Fraud
Auditing
Bankruptcy
Leadership
Board of directors
Financial accounting
18 pp
Published sources
5-105-083 (9pp)
9-612-019
CHRIS ANDALISONWESTON(A)
Sucher, SJ
Moore, C
Chris and AlisonWeston describe how
they, a well-educated middle class
couple, ended up committing mail fraud,
for which they each served a year and a
half in federal prison. The case highlights
for students howotherwise upstanding
individuals much like themselves can
commit crimes without being truly aware
that they are doing It.
UnitedStates; 2002
Business ethics
Accountability
Values
Conflicts of interest
5 pp
Field research
9-612-020
CHRIS ANDALISONWESTON(B)
Supplement
Sucher, SJ
Moore, C
Chris and AlisonWeston describe their
trial process and time in prison.
UnitedStates; 2006
Business ethics
Accountability
Values
7 pp
Field research
9-612-021
CHRIS ANDALISONWESTON(C)
Supplement
Sucher, SJ
Moore, C
The Westons reflect on howthey have
changed and on the lessons they
have learned.
UnitedStates; 2002
Business ethics
Accountability
Values
3 pp
Field research
711-050-1
DESSO(A): TAKINGONTHE
SUSTAINABILITY CHALLENGE
Ioannou, I
Ody-Brasier, A
This case describes the strategic
transformation of DESSO, a Dutch
manufacturer of carpet tiles and flooring
solutions. The first part of the case
describes the difficult situation in which
the company found itself in the early
2000s, following a series of changes in
ownership. It focuses on the strategic
vision developed by Stef Kranendijk, the
companys new CEO, as he takes over the
company in 2007. An important element
of this vision is to make sustainability a
key driver of DESSOs innovation
strategy. The case highlights the process
that led DESSO to consider a Cradle to
Cradle(R) approach as well as the
potential issues this new orientation
raised for important stakeholders,
including employees, board members,
customers and suppliers.
Europe; Carpet tiles; 200,000 euros
operatingrevenues; 2007-2010
Sustainability strategy
Cradle to Cradle(R)
Innovation strategy
Management turnaround
Stakeholder management
Europe
Carpet tiles manufacturing
Strategic CSR
20 pp
Field research
The annual ecch Case Awards
include two case writing
competition categories:
Hot topic:
Crisis as opportunity
New case writer:
for a first teaching case.
Submission deadline:
11 October 2013
Prize: 1,500 per category
www.ecch.com/casecompetition
case writing competition
711-051-1
DESSO(B): GOINGFORWARD
Ioannou, I
Ody-Brasier, A
This case provides some updates as to
DESSOs situation in 2010. It describes the
short-termresults of Kranendijks strategic
vision and howit transformed DESSOs
business model. It also gives details on
the implementation of the newstrategy
and the challenges still ahead.
Europe; Carpet tiles; 200,000 euros
operatingrevenues; 2007-2010
Cradle to Cradle(R)
Innovation strategy
Management turnaround
Europe
Carpet tiles manufacturing
Strategic CSR
6 pp
Field research
9-399-110
GUARANTYTRUST BANK PLC
NIGERIA (A)
Paine, LS
Hogan Jr, HF
Fola Adeola, the CEOof Nigerias
Guaranty Trust Bank and one of its
founders in 1991, is considering what
should be done to maintain the banks
original vision and vitality in the face of its
rapid growth and success in the
marketplace. Known for its high ethical
standards, the bank is planning to
expand inside and outside Nigeria.
Among Adeolas concerns is what to do
about employees insistence on
underpaying their personal income taxes
- a practice he regards as inconsistent
with the banks mission of being a role
model for society. A rewritten version of
an earlier case.
Africa, Nigeria; Banking; 600 employees,
$200 millionrevenues; 1996-1998
Africa
Banking
Business and society
Business conditions
Corporate culture
Corporate responsibility
Ethics
Legal aspects of business
Organizational development
15 pp
Field research
9-906-414
IKEAS GLOBAL SOURCING
CHALLENGE: INDIANRUGS AND
CHILDLABOR (A)
Bartlett, CA
Dessain, V
Sjoman, A
Traces the history of IKEAs response to a
television (TV) report that its Indian
carpet suppliers were using child labor.
Describes IKEAs growth, including the
importance of a sourcing strategy based
on its close relationships with suppliers in
developing countries. Details the
development of IKEAs strong culture and
values that include a commitmentto
create a better everyday life for many
people. Describes how, in response to
regulatory and public pressure, IKEA
developed a set of environmental policies
that grewto encompass a relationship
with Greenpeace andWorldWildlife Fund
(WWF) on forest management and
conservation. Then, in 1994, Marianne
Barner, a newly appointed IKEA Product
Manager, is surprised by a Swedish
television documentary on the use of
child labor by Indian carpet suppliers,
including some that supply IKEAs rugs.
She immediately implements a strict
policy that provides for contract
cancellation if any IKEA supplier uses child
labor. Then Barner is confronted by a
GermanTV producer who advises her
that he is about to broadcast an
investigative programdocumenting the
use of child labor in one of the companys
major suppliers. Howshould she react to
the crisis? Howshould the company deal
with the ongoing issue of child labor in
the supply chain?
India, Sweden; 90,000 employees, US
Crisis management
Publicity
Business ethics
Social enterprise
Values
Business growth
Outsourcing
Suppliers
13 pp
Field research
5-907-407 (17pp)
13
supplier(s); (3) generating favourable
media publicity via lowcost shoestring
and viral marketing (labels, cause related
marketing, vans, jazz concerts, website,
blog); (4) responsible entrepreneurship
through proactive management of
environmental, social and ethical issues;
and (5) the role of challenger brands, and
the risks and opportunities when such
sustainability-based brands associate
with global brands are controversial for
their environmental and/or social
impacts. At the end of the case, innocent
faces an immediate issue: with rapid
growth in turnover and employee
numbers in the UK and Europe, and after
the furore caused by the companys
decision to sell in branches of
McDonalds, what further steps should
the management teamtake to ensure
that its brands reputation survives intact?
Soft drinks; 250+employees; 1998-2008
Sustainability
Small business
Entrepreneurship
Challenger brands
Viral marketing
Brand identity
Corporate values
Entrepreneurs exiting their
business
28 pp
Field research
708-041-8 (14pp)
709-018-1
MARKS & SPENCER: THE BUSINESS
CASE FOR PLANA
Spitzeck, H
Cranfield School of Management
Marks & Spencer (M&S) is one of the UKs
leading retailers, with over 21 million
people visiting M&S stores around the
country every week. On the 15th of
January 2007The Independent
published an article titledM&S to go
carbon neutral in 200 million green
initiative announcing the nowfamous
M&S Plan A. This initiative is an ambitious
environmental strategy incorporating
100 commitments in five key areas: (1)
climate change; (2) waste management;
(3) sustainable rawmaterials; (4) fairness;
and (5) health. Plan A includes aims for
M&S to become carbon neutral, send no
waste to landfill, be a fair trading partner
and help customers to live healthier
lifestyles. The Plan A strategy announced
in January 2007, envisaged that all these
100 targets would be realised by 2012,
and would require an investment of 200
million. This strategy goes to the core of
M&Ss identity. As the economic
downturn impacts on retail business,
Richard Gillies, head of Plan A, is asked to
create a business case for the different
initiatives forming Plan A to move
forward. Students are asked to analyse
Plan A initiatives on their business value
and to present their findings.
UK; Retail; 2,000 factories, 20,000 farms,
250,000 employees, sales 2007-2008
9 billion, profit 1 billion; 2008-2009
Sustainability
Ethics
Business case
Crisis
Reputation
Business in society
Waste
Supply chain
12 pp
Field research
709-018-8 (10pp)
9-394-085
MARRIOTT CORPORATION(A)
Paine, LS
Nichols III, CA
Marriott Corps chairman and CEOmust
decide whether to recommend a
restructuring of the company to the
board of directors. The proposal he is
considering would split the Marriott
Corp, a premier hotel developer, owner,
and manager, into two separate
companies by a stock dividend to
shareholders. One of the newcompanies
would contain most of Marriott Corps
profitable management operations,
while the other would retain ownership
of its hotel properties as well as most of
its long-termdebt.
UnitedStates; 202,000 employees,
Business ethics
Financial strategy
Restructuring
Bonds
18 pp
Published sources
5-307-015 (27pp)
5-395-188 (23pp)
14
9-906-415
IKEAs GLOBAL SOURCING
CHALLENGE: INDIANRUGS AND
CHILDLABOR (B) Supplement
Bartlett, CA
Dessain, V
Sjoman, A
Supplements the (A) case.
Crisis management
Publicity
Business ethics
Social enterprise
Values
Business growth
Outsourcing
Suppliers
17 pp
Field research
5-907-407 (17pp)
708-041-1
INNOCENT DRINKS: VALUES AND
VALUE
Brown, R
Grayson, D
Cranfield School of Management
The first part of this case deals with the
development and testing of a new
business idea - market research, written
business plan, credibility of start-up team
- enabled by raising 230,000 through
business angel financing, in return for
20%equity. The second part examines
the companys development of an open
management style, its responses to
environmental and social issues
(responsible entrepreneurship), the way
it built customer confidence in the brand
and resisted early equity market
floatation or trade sale. A further issue is
howto preserve the integrity and
authenticity of a brand whose
consumers feel themselves part of the
innocent family, with a stake in the
product, and are anxious to protect it.
The case highlights: (1) the importance of
proving opportunity through good
market research and consumer; (2)
maintaining majority equity share
holding in the hands of the
entrepreneurs by reducing the start-up
capital needed through sub-contracting
expensive manufacturing to proven
9-704-476
MATCHINGDELL (B): 1998-2003
Rivkin, JW
Giorgi, S
Supplements the (A) case.
13 pp
5-706-482 (9pp)
CG4A
ORACLES HOSTILE TAKEOVER OF
PEOPLESOFT (A)
Daines, R
Nair, V
Drabkin, D
Stanford Business School
In June of 2003, PeopleSoft management
announced a merger with JDEdwards.
Within hours of the announcment,
Oracle had launched an hostile takeover
attempt of PeopleSoft. Oracles bid raised
enormously difficult questions for the
PeopleSoft board. Oracles bid raised
questions about whether PeopleSoft
products would continue to be
supported and customers became
reluctant to buy PeopleSoft software.
Managers were therefore faced with a
decision about howto respond to the
bid and the uncertainty it created. To
regain customer and analyst confidence,
PeopleSofts board considered adopting
a Customer Assurance Programin which
customers would receive a cash payment
in the event of a takeover. This promise
of a cash payment would encourage
customers to invest in PeopleSoft
productions, but also created a liability
that might be large enough to derail
Oracles takeover attempt altogether. The
board therefore had to consider the
implications of a Customer Assurance
Programfor the welfare of the firm, its
customers and its duties to shareholders
faced with a tender offer.
Enterprise software
Acquisitions
Takeover
Board of directors
Software
Product market competition
Market for corporate control
Fiduciary duties
24 pp
Published sources
15
16
9-197-047
ARCHCOMMUNICATIONS GROUP INC
Palepu, KG
Srinivasan, S
The market values Arch differently from
analysts values.
Valuation
Technology
28 pp
Published sources
5-104-035 (12pp)
9-292-122
BETA MANAGEMENT CO
Edleson, ME
Amanager of a small investment company
has beensuccessfully usingindex funds for
limitedmarket timing. Growthhas allowed
her tomove intopickingstocks. She is
consideringtwosmall andhighly variable
listedstocks, but is concernedabout the
risk that these investments might addto
her portfolio. Provides a lead-intothe
CAPM. Students learnabout total risk,
non-diversifiable or portfoliorisk, and
(CAPM) beta, andcalculate variability of
the stocks separately, andportfolio
variance withandwithout the stocks, to
see howanextremely risky (but low-beta)
stock actually reduces risk; andcalculate
stock betas.
1991
Regression analysis
Efficient markets
Risk assessment
Diversification
5 pp
5-294-113 (10pp)
9-158-001
BIRCHPAPER COMPANY
Rotch, W
Harlan, N
Involves transfer pricing among three
divisions of a company.
Cost analysis
Transfer pricing
Decentralization
2 pp
Field research
5-199-057 (9pp)
9-102-048
BOREALIS
Kaplan, RS
Jorgensen, BN
WhenBorealis, a Europeanproducer of
plastics, useda traditional, time-consuming
budgetingprocess, the budget was quickly
out of date ina competitive environment
characterizedby continually changing
input andoutput prices anddynamic
market conditions. This case describes the
process that ledBorealis toreplace its
budgets withfour targetedmanagement
tools: rollingfinancial forecasts, Balanced
Scorecard, activity basedcosting, and
investment management. It alsodiscusses
the process of implementingthe new
measurement andcontrol systems.
Denmark; 2000
Activity based costing
Forecasting
Balanced scorecard
Budgeting
17 pp
Field research
9-198-048
CITIBANK: PERFORMANCE
EVALUATION
Simons, RL
Davila, A
Citibank has introduced a new,
comprehensive performance-scorecard
system. A regional president struggles
with a tough decision: howto evaluate
an outstanding branch manager who has
scored poorly on an important customer
satisfaction measure. This case provides a
scoring sheet to be completed by the
reader and an explanation of the
ramifications of the decision for the
businesss strategy.
UnitedStates; 1996
Control systems
Performance appraisals
Implementing strategy
Incentives
9 pp
Field research
5-199-047 (13pp)
9-197-085
COMPAGNIE DUFROID, SA
Simons, RL
Davila, A
The owner of an ice creamcompany
must evaluate the performance of three
regional businesses. To do the analysis,
students must flex the budget by
seasonal temperature; calculate revenue,
volume, price, and efficiency variances;
analyze the effects of transfer prices; and
calculate return-on-investment. In
addition, the owner considers howto set
strategic boundaries and howto
compensate his managers.
France; Gross revenue: $34 million; 1996
Return on investment
Profitability analysis
Variance analysis
Budgeting
Incentives
11 pp
5-198-035 (22pp)
9-200-069
DEBT POLICY AT UST INC
Mitchell, M
UST, Inc is a very profitable smokeless
tobacco firmwith lowdebt compared to
other firms in the tobacco industry. The
setting for the case is USTs recent
decision to substantially alter its debt
policy by borrowing $1 billion to finance
its stock repurchase program.
Connecticut; 4,765 employees, gross
revenue: $1.4 billionrevenues; 1999
Capital structure
Debt management
Long termfinancing
Taxation
14 pp
Published sources
5-201-002 (11pp)
9-295-059
DIVIDENDPOLICY AT FPL GROUP,
INC (A)
Esty, B
Schreiber, CF
AWall Street analyst has just learnedthat
FPL (the holdingcompany for Floridas
largest electric utility) may cut its dividend
inseveral days despite a 47-year streak of
consecutive dividendincreases. In
response tothe deregulationof the electric
utility industry, FPL has substantially revised
its competitive strategy over the past
several years. The analyst must decide
whether a change individendpolicy will be
a part of FPLs financial strategy inthis
deregulatedenvironment.
Florida; 12,400 employees, $5.3 billion
revenues; 1994
Dividends
Financial strategy
Securities analysis
Deregulation
Electric power
Corporate strategy
17 pp
Published sources
5-296-072 (21pp)
Initial public offerings
Valuation
26 pp
Published sources
8A98N01 (20pp)
9A95B029
LAURENTIANBAKERIES
Foerster, SR
Barbara, R
Ivey Publishing
The vice-president of operations must
submit a valuation and recommendation
to expand his plant to handle a doubling
of sales over the next three years.
Students will have to understand the
process reviewfor capital allocation in
this large corporation in order to make
their recommendation, as well as
complete a discounted cash flow.
Canada; Foodandkindredproducts;
Large; 1995
Capital budgeting
Planning
14 pp
Field research
8A95B29 (9pp)
UVA-F-1353
NIKE, INC: COST OF CAPITAL
Bruner, RF
Chan, J
This case is intended to serve as an
introduction to the weighted average
cost of capital (WACC). Although the case
already provides a WACC calculation, it
has been intentionally designed to
mislead students. As such, their task is to
identify and explain themistakes in the
analysis, which are designed to highlight
conceptual issues regardingWACC and
its components that are often
misunderstood by students.
US; Investment management; 2001
Cost of capital
Investment analysis
Valuation
8 pp
Published sources
UVA-F-1353TN (5pp)
ecch Case Awards are presented
annually to recognise worldwide
excellence in case writing and to
raise the profile of the case
method of learning.
Overall winner
Strategic Leadership and
Innovation at Apple Inc
Loizos Heracleous and
Angeliki Papachroni
(See page 39 for abstract)
www.ecch.com/caseawards
ecch case awards 2013
9A98N001
HUANENGPOWER INTERNATIONAL
INC: RAISINGCAPITAL INGLOBAL
MARKETS
Foerster, SR
White, J
Karolyi, A
Ivey Publishing
Huaneng Power International (HPI), an
independent power producer in the
Peoples Republic of China (PRC), is in the
process of executing a global equity issue
to raise funds for the construction of new
power plants. The company is planning
to list the newshares through an
American Depositary Receipt program
on the NewYork Stock Exchange. The
company has recently reduced the price
of the issue due to poor market
conditions and investor resistance to the
price range stated in the preliminary
prospectus. HPIs management must
decide whether the newoffer price and
choice of listing exchange is reasonable
in light of recent market events and the
political, economic, social and
technological environment in the PRC.
China; Electric, gas andsanitary services;
Large
Finance
International finance
17
9-299-004
PENELOPES PERSONAL POCKET
PHONES
Gompers, PA
Provides students with an opportunity to
use simple real options analysis to value a
startup. Penelope Phillips is deciding
whether to start a company to make
wireless phones. Students get experience
using traditional discounted cash flow
valuation and a real options approach.
Real options
Valuation
Entrepreneurs
Entrepreneurship
2 pp
5-299-070 (15pp)
9-191-006
SIEMENS ELECTRIC MOTORWORKS
(A) Abridged
Cooper, R
Wruck, KH
Explores howa cost systemcan help
support a firms decision to change
strategies. In the process, the students
are introduced to a simple activity-based
cost system. Siemens Electric Motor
Works found itself facing an increasingly
competitive environment and so made a
decision to move frommass production
of specialty motors to the production of
small lots of custommotors. In doing so,
they found their old cost systemled
themto poor decision making. By
switching to a simple activity-based
system, more accurate product costs
were computed, facilitating better
divisional performance.
Germany; Light manufacturing;
$400 millionDM; 1988
Activity-based costing
Cost accounting
Cost allocation
Cost systems
7 pp
Field research
5-189-127 (10pp)
9-201-096
VODAFONE AIRTOUCHS BIDFOR
MANNESMANN
Kedia, S
Vodafones bid for Mannesmann was
the largest ever cross-border hostile bid.
This case examines the economic,
financial, and corporate governance
issues in the deal.
England; 5,000 employees, $13 billion
revenues; 1999
Acquisitions
Negotiation
20 pp
Published sources
5-202-087 (15pp)
9-101-092
WILKERSONCOMPANY
Kaplan, RS
The president of Wilkerson, faced with
declining profits, is struggling to
understand why the company is
encountering severe price competition
on one product line while able to raise
prices without competitive response on
another product line. The controller
proposes that the company develop an
activity-based cost model to understand
better the different demands that each
product line makes on the organizations
indirect and support resources. A
rewritten version of an earlier case.
Florida; 1989
Profitability analysis
Activity-based costing
Cost accounting
Cost allocation
Cost analysis
Cost systems
Pricing
4 pp
5-104-002 (14pp)
18
9-494-005
ERIK PETERSON(A)
Gabarro, JJ
Describes the problems facing a recent
MBA graduate in his job as general
manager of a mobile cellular company
owned by a parent corporation. Raises
issues of corporate divisional
relationships and the difficulties facing an
inexperienced manager who seems to
be receiving little support. A redisguised
version of an earlier case.
UnitedStates
Interpersonal relations
Superior and subordinate
Subsidiaries
Leadership
Organizational design
18 pp
Field research
5-496-046 (10pp)
409-008-1
LEADINGACROSS CULTURES AT
MICHELIN(A)
Meyer, E
Gupta, S
INSEAD
A French executive with Michelin is
expatriated from Clermont Ferrand to
South Carolina. Initially confident in his
leadersthip skills, the protagonist learns
quickly that many aspects of leading a
team are quite different in the American
environment. Although he ultimately
succeeds, Chalon initially struggles to
understand the different culture in
which he is working and adapt his style
accordingly. The teaching objectives are:
(1) to help participants of any nationality
understand the complexity of leading in
a multi-cultural environment; (2)
establish that ideas about key
leadership elements such as providing
constructive feedback and motivating
employees may vary dramatically from
one cultural environment to another;
and (3) identify and develop strategies
for maximising success when leading in
a cross-cultural environment.
UnitedStates; Tyres
Cross-cultural
Intercultural/inter-cultural
Multicultural/multi-cultural
Performance feedback
National culture
Leadership
Global leadership
International human resources
7 pp
Field research
409-008-8 (18pp)
499-021-1
LINCOLNELECTRIC INCHINA
Galunic, C
Bjorkman, I
INSEAD
This case looks at howLincoln Electric, the
US-based company renowned for its
compensation scheme, tried to
implement its human resource policies
globally, and particularly in China. The
objective is to expose readers to some of
the difficulties and myths of pushing
well-worn ideas overseas. The case ends
off with an important question regarding
the companys future, one that depends
on its overseas strategy, of which HR is key.
China, USA, Europe; Manufacturing;
1998-1999
Compensation
Cross-culture
International expansion
China
Incentives
20 pp
Field research
499-021-8 (11pp)
9-496-047
MANAGINGXEROXS
MULTINATIONAL DEVELOPMENT
CENTER Abridged version
Ibarra, H
Describes a managers role in developing
a staff group responsible for enhancing
the efficiency of Xeroxs worldwide
logistics and inventory management
systems. Illustrates a range of
management strategies for upward and
lateral influence in a complex
organizational context, as well as the use
of a number of innovative human
resource management techniques. If used
with John AClendenin it allows for the
discussion of career development issues.
Rochester, NY; Copiers; Fortune 500; 1988
Careers and career planning
Group behavior
Leadership
Line and staff management
Management of professionals
Office equipment
Teams
15 pp
Field research
9-902-132
MASSACHUSETTS FINANCIAL
SERVICES
Hall, BJ
Lim, JP
This case describes the compensation
and performance evaluations at an
investment management company. The
senior management teamof
Massachusetts Financial Services (MFS)
Investment Management was
contemplating an introduction of hedge
funds at the firm, but many believed that
typical hedge fund manager pay (20%of
the upside) would harmthe MFS culture,
which glorifiedstar performance but not
star egos.The case presents the MFS
compensation philosophy and plan
(including the plans emphasis on
subjective compensation), the types of
people it attracted, the resulting culture,
and howthe senior management team
approached the hedge funds question. It
includes side discussion on firm-specific
human capital.
Massachusetts; 2,800 employees; 2001
Compensation
Incentives
26 pp
Field research
5-902-196 (21pp)
9-405-063
MESSIERS REIGNAT VIVENDI
UNIVERSAL
Khurana, R
Beyersdorfer, D
Dessain, V
Focuses ona crisis inthe boardat Vivendi.
Highlights the difficulties that arise when
dramatic pressure fromoutside the
boardroomaffects boardroomdynamics.
Inthis case, there are twoevents. The first is
anunexpectedly large financial loss anda
pendingcashflowcrisis that forces
19
Vivendis directors todeal withthe issue of
dismissingtheir CEO(chief executive
officer). Whatever they decide, their actions
will be scrutinizedby the press and
investors andwill likely be revisitedina
legal environment. The secondis the board
diagnosingits role inthe financial crisis by
approvinga series of costly acquisitions in
recent years that ledtothe crisis.
France; 41,264 employees, 25.5 million
euros revenues; 1994-2002
Crisis management
Leadership
28 pp
Published sources
5-407-098 (11pp)
A15-04-0008
ORGANIZATIONAL ALIGNMENT:
MANAGINGGLOBAL ANDLOCAL
INTEGRATION
Siehl, CJ
Speetzen, M
Thunderbird School of Global
Management
This case is set in the finance operation of
a $1.4 billion aerospace company with
global operations. The protagonist is the
leader of this 90-person group, the
director of finance. He is faced with
immediate issues of missed financial
targets, $20,000,000 in accounting
write-offs, and finance employees
violating company policy. He is grappling
with howto drive an integrated financial
approach in a complex global
environment with significant cultural
differences. The leader faces several
options, including address the symptoms,
dig in and understand the underlying
issues, or do nothing and hope for
isolated corrective actions. The case is
intended for use in an MBA-level course
on global management or an executive
education programfor middle managers.
The case highlights both the challenges
and the opportunities for leading from
the middle of a large, global business.
US, Germany; Aerospace;
General management
4 pp
C15-04-0008 (4pp)
9-400-087
REBIRTHOF THE SWISS WATCH
INDUSTRY - 1980-92 (A)
Radov, DB
Tushman, ML
The Swiss watch industry has been
devastated by newentrants fromAsia in
the low-and mid-priced watch segments.
Japanese and Hong Kong firms have used
quartz technology to lower costs
dramatically. Nicolas Hayek, President of a
Swiss consulting firm, is asked to help
design a newstrategy and structure for
the two Swiss giants, ASUAGand SSIH,
which have decided to merge. Ernst
Thomke, Managing Director of ASUAGs
manufacturing arm, also figures
prominently. The case outlines options for
the positioning of the new, inexpensive
Swatch brand as well as a number of
other flagship Swiss brands. Focuses on
alignment of strategy with the structure
of the newcompany. Topics to address
include the management of change and
the formulation of a detailed action plan
to make the newcompany succeed.
Switzerland; 15,000 employees; $1 billion
revenues; 1980-1983
Organizational structure
Change management
Technological change
Product development
14 pp
Published sources
408-083-1
RICHARDMURPHY ANDTHE BISCUIT
COMPANY (A)
Jarrett, M
Ingram, K
This case describes the successful journey
of organisational renewal and change for
a food company facing a changing world
of consumer tastes and fierce
competition. The first part of the case
shows howtraditions, a strong founding
leader and a previously successful
operational formula can lead to a
competency trap and organisational
inertia. The main part of the case focuses
on the years 2002-2006, the challenges of
managing change and the role of a new
Marketing Director, Richard Murphy. He is
tasked with making the company market
orientated over its current model of
production schedules and efficiencies.
The case reveals the important role of
understanding and tackling resistance to
change, managing multiple and diverse
stakeholders, engaging customers and
personal resilience in leading change. The
case also highlights that change takes
time and that paying attention to political
and social networks is as important as the
content of the change itself.
UK; Foodretail; 2,000 employees;
2002-2006
Change management
Resistance to change
Organisational politics
Our growing collection of free
cases is a useful resource,
encouraging more teachers
worldwide to try teaching with
cases. It has been made possible
through the generous
collaboration of the authors and
their schools.
www.ecch.com/freecases
free cases
20
Organisational networks
Managing your boss
Influencing others
Organisational renewal
13 pp
Field research
408-083-8 (7pp)
9-498-054
ROB PARSONAT MORGAN
STANLEY (A)
Burton, MD
Rob Parson was a star producer in
Morgan Stanleys Capital Markets
division. He had been recruited froma
competitor the prior year and had
generated substantial revenues since
joining the firm. Unfortunately, Parsons
reviews fromthe 360-degree
performance evaluation process revealed
that he was having difficulty adapting to
the firms culture. His manager, Paul Nasr,
faces the difficult decision of whether to
promote Parson to Managing Director.
Nasr must also complete Parsons
performance evaluation summary and
conduct Parsons performance review.
2,000 employees, $1 billionrevenues;
1995
360-degree feedback
Employee promotions
Employee retention
Personal strategy &style
Relationship management
16 pp
Field research
5-400-101 (18pp)
HR6A
SAS INSTITUTE (A): A DIFFERENT
APPROACHTOINCENTIVES AND
PEOPLE MANAGEMENT PRACTICES IN
THE SOFTWARE INDUSTRY
Pfeffer, J
The SAS Institute is a large, growing
software company headquartered in the
ResearchTriangle in North Carolina.
Founded more than 25 years ago, it has
evolved a unique approach, given its
industry, to developing and retaining
talent including using no stock options
or phantomstock and not paying its
salespeople on commission. The CEO
andVice President of Human Resources
must decide howwell their current
management practices will continue to
serve themas the company gains greater
visibility and faces an increasingly
competitive labor market.
NorthCarolina; Software; 5,000
employees, $750 millionannual gross
revenues; 1997
Incentives
Corporate culture
Human resources management
Management philosophy
Computer software
Organizational behaviour
17 pp
Field research
410-029-1
SONY CORPORATION: FUTURE
TENSE?
Perepu, I
Gupta, V
Sony, the Japan-based multinational
conglomerate, is one of the leading
manufacturers of consumer electronics
devices and information technology
products. Sony was responsible for
introducing path breaking products like
the Walkman, the Discman, and the
PlayStation gaming console, among
others. But in the late 1990s, it lost its
leadership position in many product lines
in which it was operating. Analysts
attributed this to the silo culture
prevailing in the organisation. Each of the
departments functioned like different
fiefdoms, hardly co-operating with each
other, even when it was necessary.
Moreover, Sonys growing complacency
led to its failing to recognise the growing
popularity of newtechnologies and
digital products and the company
choosing to stick to its proprietary
formats. Sony was caught off-guard and
tried to revive itself under the guidance
of its first non-Japanese head Howard
Stringer, who took over as the CEOin
2005. For a couple of years, Sony
appeared to be on the path to revival.
However, for the fiscal year ending March
2009, the company reported a loss.
Sonys failure to bring out innovative
products in spite of having the required
competencies was one of the main
reasons for the companys problems, and
analysts attributed it to the existing
culture in the company. In February 2009,
with the aimof addressing the issue of its
silo culture, Stringer announced a
reorganisation that involved changes in
the organisation structure. Through this
reorganisation, he sought to transform
Sony into an innovative and agile
company. However, it remains to be seen
whether the reorganisation can bring
Sony out of its problems. The case aims to
achieve the following teaching
objectives: (1) to examine the challenges
faced by Sony in a competitive global
business environment; (2) to understand
the importance of organisational culture
in effectively executing an organisations
strategy; (3) analyse howSony can make
its products competitive and foster
innovation; (4) examine the efficacy of
the reorganisation programinitiated by
Stringer in turning around Sony and
solving its problemrelating to the silo
culture; and (5) analyse other measures
that need to be taken by Stringer to
restore the profitability of Sony. The case
is intended for MBA/PGDBA students and
can be used in human resource
management as well as strategy and
general management curriculum.
Japan; Consumer electronics; Very large;
2005-2009
Sony Corporation
Organisational restructuring
Reorganisation
Silo Culture
Organisation structure
Howard Stringer
Cross-functional teams
Organisation chart of Sony
Innovation
Leadership
Co-ordination among product
divisions
Corporate communication
Corporate culture
Connect
Empowerment
20 pp
Published sources
410-029-8 (18pp)
HR1A
SOUTHWEST AIRLINES (A)
OReilly III, CA
Pfeffer, J
In 1994 both United Airlines and
Continental Airlines launched lowcost
airlines within an airline, to compete with
21
Southwest Airlines. From1991 until 1993
Southwest had increased its market share
of the critical West Coast market from
26%to 45%. This case considers how
Southwest had developed a sustainable
competitive advantage and emphasizes
the role of human resources as a lever for
the successful implementation of
strategy. This case asks whether
competitors can successfully imitate the
Southwest approach.
Southwest UnitedStates; Airlines; 12,000
employees, $2.2 billionrevenues; 1994
Human resources management
Strategy
Strategy implementation
27 pp
Field research
401-020-1
THE COLLAPSE OF BARINGS (A): THE
EVENTS
Soane, E
Nicholson, N
Audia, PG
In 1995 Barings, one of Britains oldest
private banks, collapsed after losses of
830 million caused by the actions of
Singapore-based trader Nick Leeson.
Case study (A) examines the
psychological and organisational factors
that contributed to the collapse. Leesons
use of a secret account which enabled
himto hide his huge trading losses from
his managers was a key factor in his
successful deception. Despite mounting
concern about Leesons trading activities
and the discovery of significant
unexplained transactions, it was not until
an earthquake in the city of Kobe which
caused the Japanese market to fall to low
levels that Leeson realised he could no
longer sustain his position. His unhedged
bets on the Nikkei index had led to losses
so great that Leeson fled his job and his
home. Leeson was arrested on his way
back to the UK, subsequently tried and
spent several years in Singapores
Changhi prison. The combination of an
individual seeking to build his reputation
and driven to appear successful with an
organisation that sought to expand its
derivatives business, had unclear lines of
management and communication, and
was willing to overlook some of Leesons
misdemeanours because of his apparent
success, is critical to Barings downfall. The
(B) case summarises the aftermath of the
collapse. The penalties for the individuals
involved are presented. Two similar
events, at Daiwa Bank and the Sumitomo
Corporation, are outlined.
Singapore/London; Finance; Large;
1989-1995
Organisational culture
Reward and bonus systems
Organisational strategy
Psychological factors
Managerial control and command
Agency issues
Prospect theory: the influence of
loss and gain decision making
Escalating commitment
12 pp
Published sources
401-020-8 (5pp)
9-498-045
WOLFGANGKELLER AT
KONIGSBRAU-TAK (A)
Gabarro, JJ
Wolfgang Keller, manager of the
Ukrainian subsidiary of a German beer
company, faces a managerial dilemma.
His subordinate, Dmitri Brodsky, is a
talented and experienced commercial
director who is not meeting his goals
expediently and often requires
considerable assistance fromKeller.
Furthermore, Brodskys style is causing
conflict with clients, other staff members,
and with Keller himself. Keller must
decide the best course of action to take
with this difficult employee in an
environment in which the industry is
rapidly changing and growing and the
war for talent is strong. He must also
consider what comprises an effective
performance reviewand howhis own
behavior impacts Brodskys poor
performance. This case is a modernized
revision of the popular caseWolfgang
Keller at Konigsbrau-Hellas (A).
Europe; US$100 millionsales
Management styles
Superior &subordinate
Leadership
18 pp
Field research
5-400-069 (20pp)
22
9-699-022
CISCOSYSTEMS, INC:
IMPLEMENTINGERP
Austin, RD
Nolan, RL
Cotteleer, MJ
Reviews Cisco Systems approach to
implementing Oracles Enterprise
Resource Planning (ERP) software
product. This case chronologically
reviews the diverse, critical success
factors and obstacles facing Cisco during
its implementation. Cisco faced the need
for information systems replacement
based on its significant growth potential
and its reliance on failing legacy systems.
Case discussion focuses on where
management was particularly savvy in
contrast to where it was the beneficiary
of good fortune.
SiliconValley; 2,500 employees, $8 billion
revenues; 1993-1995
Enterprise systems
Information technology
ERP
Information age
Applications
19 pp
Field research
5-602-076 (21pp)
5-699-031 (9pp)
909-002-1
DIARY OF ANIT PROJECT LEADER: A
CASE STUDY ONPROJECT
MANAGEMENT LEADERSHIP
Pendse, PH
Welingkar Institute of Management
Development &Research
This case is about the challenges faced in
development and deployment of a large
manufacture resource planning (MRP) II/
enterprise solution for Major Insulators
Ltd, a leading insulator manufacturing
company in India. The case has been
presented in the formof a diary of a
project manager - wherein he narrates
howthe project unfolds on a week by
week basis. Participants are able to find
parallels to the situations described in the
case in their own work area. After
discussing issues and possible solutions/
best practices, the case expects the
participants to work out a fresh project
plan, including a profit and loss account
for the project. The purpose of the case is
to sensitise/highlight to participants: (1)
the issues faced in managing large IT
deployments; (2) project management
and leadership behaviours for the
success of IT projects; (3) the business
and monetary implications of project
related decisions; and (4) the breadth and
depth of thought required while
planning a project. The case has been
successfully used for training: (1) project
leaders, project managers, transition
managers; (2) business analysts and
functional consultants; (3) senior
developers and domain experts making
a transition to the above roles; and (4)
students of MBA, MCA, MSc/BSc
(computer science/IT) etc. The case can
be used in workshop mode for half-day
(discussion only) to full-day (including
newproject plan preparation) under any
of the following situations: (1) software
development companies or end user IT
departments; (2) companies at any level
of maturity as per the capability maturity
model framework; and (3) any large IT
application in any domain.
India; IT inmanufacturing/MRP II/ERP
implementation; Any medium-sized
manufacturingcompany; Post 2000
Project leadership
Enterprise systems
Manufacture resource planning
(MRP) II
Enterprise resource planning (ERP)
solutions
Project management
IT project management
Project leadership behaviours
Business analysis
Issues in software projects
10 pp
909-002-8 (19pp)
912-023-1
DIGITAL MARKETINGAT NIKE: FROM
COMMUNICATIONTODIALOGUE
Purkayastha, D
Rao, AS
This case is about the digital marketing
strategies of leading sportswear and
apparel company, Nike, aimed at
reaching its target audience. Nike, which
is regarded as a marketing powerhouse,
started its digital marketing initiatives
when it first launched its website
Nike.com in 1996 and its online store in
1999. Nike launched a service called
NikeiD in 2005 which allowed its
customers to design their own shoes
online. The company then delivered
these shoes to them. Nike later expanded
its presence across social networking
sites which were increasingly being used
by its core customer base. It even
launched its own social networking
service called Nike+ in 2006. Customers
could share their data regarding running
records and other health statistics with
other users through Nike+. In 2010, Nike
launched a newbusiness division called
Nike Digital Sport (NDS). The objective of
NDS was to develop devices and
technologies which would allowits users
to track their performance while helping
the company get a hold over some vital
consumer data. NDS released a new
product calledFuelBand which could
track the energy output of the wearer of
the band when he/she was exercising.
Over time, Nike reduced its focus on
traditional marketing strategies and
increased its spending on digital
marketing. This case is meant for
MBA/MS students as a part of the
Information and Communication
Technology/Marketing
Communications/Brand Management
curriculum. This case is designed to
enable students to: 1) Understand the
growing importance of digital marketing
in the marketing mix for companies
around the world; 2) Analyze the reasons
behind the growing clout of social media
in marketing communications; 3) Discuss
and debate the advantages that Nike has
enjoyed by being an early adopter of
digital marketing strategies; 4) Discuss
whether Nike is following the correct
strategy in reducing its focus on
traditional marketing strategies and
increasing its focus on digital marketing;
5) Explore the ways in which Nike can
further use its digital marketing strategies
to reach its target customer base; 6)
Appreciate the merits of modern digital
marketing when compared with the
traditional marketing strategies.
Global; Sportswear andapparel; Very
large; 2004-2012
Information and communication
technology
Social media
Communication
Marketing communications
Digital marketing strategies
Brand management
Brand evolution
Online communities
Social network
Ambush marketing
Social Brand Score
23
Facebook brands
Brand value
17 pp
Published sources
912-023-8 (4pp)
908-001-1
ERP IMPLEMENTATIONFAILURE AT
HERSHEY FOODS CORPORATION
Gupta, V
Perepu, I
This case examines in detail, the reasons
behind the failure of enterprise resource
planning (ERP) implementation at the US
based Hershey Foods Corporation. In late
1996, Hershey began modernising
hardware and software systems in the
company. The company was running on
legacy systems, and with the impending
Y2K problems, it chose to replace those
systems and shift to a client / server
environment. As per the original plan, it
was to switch over to the newERP
systemby April 1999. It chose three
software vendors: SAP, Manugistics and
Siebel for implementing different
software modules. The project was
running to schedule until January 1999
and when it came to the last leg of
implementation, the company faltered
and was only able to switch over to the
newsystemin July 1999. Hard pressed for
time, Hershey went in for Big Bang ERP
implementation, which led to several
problems pertaining to order fulfilment,
processing and shipping. The retailers
who ordered Hersheys products could
not get themon time, even though the
company had ample supplies stocked at
its warehouses. Hersheys revenues
dropped by 12%during the third quarter
of 1999 compared to the third quarter of
1998. This case is designed to enable
students to: (1) understand the process of
ERP implementation in a large
organisation; (2) study the circumstances
that led to ERP implementation failure at
Hershey; (3) evaluate the role played by
top management in ERP
implementation; and (4) examine the
factors that led to success or failure of
ERP projects. The case is aimed at MBA/
PGDBA students as part of the IT and
systems and enterprise resource
planning curriculum.
US; Confectionery; Very large; 1997-2002
Hershey Foods
Enterprise resource planning
Enterprise-wide information system
mySAP.com
Legacy systems
Enterprise 21 project
Manugistics
SAP modules
Big Bang approach
SAP R/3 software
Inventory problems
Integration issues
Programme management
Executive leadership
Testing and training plan
15 pp
Published sources
908-001-8 (4pp)
9-399-150
GEs TWO-DECADE
TRANSFORMATION: JACKWELCHS
LEADERSHIP
Bartlett, CA
Wozny, M
GE is faced with Jack Welchs impending
retirement and whether anyone can
sustain the blistering pace of change and
growth characteristic of the Welch era.
After briefly describing GEs heritage and
Welchs transformation of the companys
business portfolio of the 1980s, the case
chronicles Welchs revitalization initiatives
through the late 1980s and 1990s. It
focuses on six of Welchs major change
programs: TheSoftware Initiatives,
Globalization, Redefining Leadership,
Stretch Objectives, Service Business
Development, and Six Sigma Quality.
UnitedStates; 293,000employees, Gross
revenue: $100billionrevenues; 1981-1998
Business policy
Organizational change
Organizational development
Corporate strategy
Change management
Leadership
Executives
Conglomerates
24 pp
Published sources
5-300-019 (16pp)
OIT20
GLOBAL FINANCIAL CORPORATION
Bonini, CP
Global Financial, a subsidiary of a major
heavy equipment manufacturer, makes
loans to customers for purchases of the
parent company equipment. Global
Financials loan application process is the
major subject of this case. Customers are
unhappy with the slowness of the
process, and a major competitor
promises to process loans much faster.
The details of the processing system,
including historical data, are included.
This allows examination of bottlenecks in
the system, and suggestions for possible
systemdesign changes.
California, USA; Financial; 1997
Operations
Information and technology
9 pp
Published sources
912-003-1
GOOGLE +: GOOGLES ULTIMATE
ATTEMPT AT SOCIAL NETWORKING?
Purkayastha, D
Telang, A
The case is organized into different
sections. The first section is about the
background and history of Google and
the introduction of Google +. The next
section is about the social networking
market and the top players in it, followed
by Googles previous attempts at social
networking. It then talks about the
various features of Google +, the initial
response to it, and the response by the
competitors. The case focuses on
understanding the growing importance
of social networking websites for the
advertisers as well as their growing
popularity among people over the world
using the story of Google - the search
engine and Internet giant as a struggling
player in the social networking arena,
trying to compete against established
players like Facebook andTwitter. The
case also highlights the previous
unsuccessful attempts by Google with its
Buzz andWave, to understand why they
did not do well. The questions that this
case puts forward are whether Google
has a real chance of succeeding this time
with its Google + and whether it had
finally got its attempt right.This case is
designed for MBA level students, and is
intended to be part of the IT &
systems/services marketing curriculum.
This case is also suitable for strategy. This
case is designed to enable students to: 1)
Understand the scene of social
24
networking websites and the
competition existing there; 1)
Understand the issues and challenges in
managing networked businesses; 2)
Understand whether social networks are
awinners take all market; 3) Understand
hownetwork markets are different from
other markets; 4) Discuss the strategies of
Google regarding entry into the field of
social networking and howthey learned
fromtheir previous mistakes; 5) Compare
Google + with existing players to
understand where it is better or worse; 6)
Discuss the chances of Googles success
with Google + and its possible future.
Teaching note does not have an analysis
of the case.
Global; Informationtechnology; Large;
2010-2011
Competition
Managing networked businesses
Strategy
Social networking
Social media
Microblogging
Google +
Facebook
Linkedin
Twitter
Orkut
Wave
Buzz
16 pp
Published sources
912-003-8 (6pp)
912-013-1
KITCHENANDINFOSYSTEMS - ROLE
INFOSYSTEMS, SELLER: CASE (B)
Aba, O
Groupe Grenoble Ecole de
Management
This case covers a two-party negotiation
between the representatives of two
European companies: Kitchen and Info
Systems. This is part of a case series.
Kitchen is a very successful, growing
mediumsized French manufacturer and
distributor of professional kitchens.
Kitchen is in the process of migrating its
IT to client/server architecture and taking
that opportunity to look at alternative IT
equipment suppliers. Info Systems is a
small and independent organization,
based in France, focused on the resale of
high-tech IT equipment, and providing
related services (training, support &
consulting). Kitchens IT manager called
Info Systems a fewdays ago to request an
urgent quotation for four servers. A
meeting has been arranged to discuss a
possible deal. The case can be used in
Masters, MBA negotiation courses and
executive education programs. It serves
the following main objectives: (1)
understand and manage the preparation
of negotiations: the context, interests and
objectives for both sides, the alternatives
and BATNA (both sides), determining the
strategy (distributive or integrative), the
questions to ask, the information to
provide, identify opportunities for value
creation; (2) understand the differences
between distributive and integrative
negotiation; (3) and understand the
negotiation process, management of
communication and relationship; (4)
provide an opportunity to reflect on the
negotiation, its process, results, and the
related learning. This is a challenging,
quantitative, and, at first view, distributive
negotiation. However, if properly
analyzed by taking a more global view, it
can lead to an integrative negotiation
andexpansion of the pie, using
packages. The case provides a very
extensive and detailed teaching note
together with a preparation sheet and
post negotiation sheet that can be be
used for the negotiation preparation and
the analysis of the negotiation results and
process. These two documents can be
used as assignment and support for the
negotiation case.
WesternEurope; Informationsystems,
appliances; SMEs
Negotiation
Multi-issue negotiation
Distributive negotiation
Integrative negotiation
6 pp
912-012-8 (14pp)
912-012-1
KITCHENANDINFOSYSTEMS - ROLE
KITCHEN, BUYER: CASE (A)
Aba, O
Groupe Grenoble Ecole de
Management
This case covers a two-party negotiation
between the representatives of two
European companies: Kitchen and Info
Systems. Kitchen is a very successful,
growing mediumsized French
manufacturer and distributor of
professional kitchens. Kitchen is in the
process of migrating its IT to client/server
architecture and taking that opportunity
to look at alternative IT equipment
suppliers. Info Systems is a small and
independent organization, based in
France, focused on the resale of high-tech
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25
IT equipment, and providing related
services (training, support & consulting).
Kitchens IT manager called Info Systems a
fewdays ago to request an urgent
quotation for four servers. A meeting has
been arranged to discuss a possible deal.
The case can be used in Masters, MBA
negotiation courses and executive
education programs. It serves the
following main objectives: (1) understand
and manage the preparation of
negotiations: the context, interests and
objectives for both sides, the alternatives
and BATNA (both sides), determining the
strategy (distributive or integrative), the
questions to ask, the information to
provide, identify opportunities for value
creation; (2) understand the differences
between distributive and integrative
negotiation; (3) and understand the
negotiation process, management of
communication and relationship; (4)
provide an opportunity to reflect on the
negotiation, its process, results, and the
related learning. This is a challenging,
quantitative, and, at first view, distributive
negotiation. However, if properly
analyzed by taking a more global view, it
can lead to an integrative negotiation and
expansion of the pie, using packages.
WesternEurope; Informationsystems,
appliances; SMEs
Negotiation
Multi-issue negotiation
Distributive negotiation
Integrative negotiation
7 pp
912-012-8 (14pp)
909-018-1
KNOWLEDGE MANAGEMENT
INITIATIVES AT IBM
Gupta, V
Perepu, I
Govind, S
This case examines the knowledge
management (KM) practices at IBM. The
companys KMinitiatives date back to the
early 1990s, when the company was
reorganised under Louis Gerstner. Before
that, the company was running as silos
due to which information sharing was
limited. Then, Gerstner included
information sharing as one of the
parameters in the performance appraisal
systemto determine compensation.
IBMs initial efforts in managing
knowledge focused on providing
information about co-workers and work
to enable reuse of the same. This effort
started with the asset reuse programme,
which was formalised as the Intellectual
Capital Management programme. The
next stage in the evolution of KMat IBM
was communities of practice, which were
self-organised communities, through
which employees with similar job
functions and interests came together.
IBMused several tools like K Portal, ICM
AssetWeb, On DemandWorkplace, Blue
Pages, Collaboration Forums, to capture,
share and manage knowledge. The case
concludes by examining the challenges
IBMfaced in its KMjourney. This case is
designed to enable students to: (1)
understand the importance of
knowledge management in enhancing
the competence of an organisation; (2)
study the tools and techniques used by
IBMto capture and disseminate
knowledge; (3) examine the role played
by top management to develop a
knowledge management framework in
an organisation; and (4) evaluate the
ways in which reuse of knowledge can
be encouraged in an organisation. This
case is meant for MBA/MS students as
part of the information technology/
knowledge management curriculum.
USA; Informationtechnology; Very large;
1994-2009
IBM
Knowledge management
Learning organisation
Information sharing
Wikis
Intellectual Capital Management
Programme
Communities of practice
K Portal
ICMAssetWeb
On demandWorkplace
Blue Pages
Collaboration Forums
Knowledge networks
Knowledge cafe
Knowledge cockpit
21 pp
Published sources
909-018-8 (4pp)
908-024-1
OFFSHORINGANDINNOVATIONAT
GLOBALCO: NEGOTIATINGA
WIN-WINSTRATEGY FORTHE
OUTSOURCINGRELATIONSHIP
Barrett, M
Cambridge Judge Business School
In recent years, the evolution of IT
offshoring relationships has been
marked by a gradual shift away from
their traditional focus on low cost and
labour arbitrage. Instead, with the
relationship evolving to new levels of
global collaboration, the perceived role
of vendors is shifting to one of
partnership and as a key source of
innovation. This case examines the
challenges and opportunities of a
multinational firm and its Indian vendors
in developing its offshoring relationship
over time. It also raises the crucial
question as to how key Indian and North
American firms can transition their
offshoring relationship to one of
partnership driving business innovation.
India, NorthAmerica; Telecoms; 60,000
employees; Mid-1990s tomid-2000s
Offshoring
Innovation
Outsourcing relationship
Negotiations
Partnership
Competitive advantage
10 pp
Field research
9A98E036
OHIOPOLYMER INC
Bell, PC
Ivey Publishing
Ohio Polymer is about to negotiate a
contract with ProBut Hydrocarbon, Inc for
the purchase of ethylene gas. The contract
will require Ohio to purchase a fixed daily
quantity of the gas at a set price per ton.
Ohio Polymers senior management is
looking for advice on howmuch gas they
should try to obtain and what price they
should be willing to pay.
USA; Chemicals andalliedproducts;
Large
Simulation
Negotiation
Manufacturing capacity
Spreadsheet application
6 pp
Published sources
8A98E36 (5pp)
26
9-911-033
ONLINE MARKETINGAT BIGSKINNY
Edelman, B
Kominers, SD
This case describes a wallet makers
application of seven Internet marketing
technologies: display ads, algorithmic
search, sponsored search, social media,
interactive content, on-line distributors,
and A/B testing. It provides concise
introductions to the key features of each
technology, and asks which forms of
online marketing the company should
prioritize in the future. Also discusses
similarities and differences between
on-line and off-line marketing, as well as
issues of marketing campaign evaluation.
UnitedStates; 2010
Advertising campaigns
Marketing
Internet
Internet marketing
Web-based technologies
13 pp
Field research
5-911-034 (16pp)
910-003-1
OPENSOURCE INNOVATIONAT
MOZILLA CORPORATION
Gupta, V
Prasad, VN
This case examines the open source
innovation process at Mozilla
Corporation, the company that
introduced the second most popular
internet browser - Firefox. The case begins
explaining the way Mozilla came into
existence. Later, it discusses the manner in
which the company managed its various
projects that had an active contribution
to the developing community, both in
strategic decision making and project
execution. The case also discusses in
detail, the marketing efforts of Mozilla to
promote the open source software
products. The case concludes by
providing a glimpse into the future
prospects of the company and the
competition it faces. The teaching
objectives of this case are to: (1)
understand the open source innovation
process at a software company; (2)
identify the kind of leadership required to
manage open source projects; and (3)
recognize the nuances of marketing open
source software products. This case is
designed for MBA/PGDBMstudents and
is meant for the knowledge, information
and communication systems curriculum.
US; IT - software; Large; 2002-2010
Mozilla Corporation
Firefox
Open source innovation
Software development
Project management
Netscape communications
Open source community
Mozillazine.com
Mozilla value network
SeaMonkey
Software release cycle
User-perceptible performance
metrics
20 pp
Published sources
910-003-8 (4pp)
905-019-1
TAL APPAREL LIMITED: STEPPINGUP
THE VALUE CHAIN
Farhoomand, A
Ho, P
Asia Case ResearchCentre, The
University of Hong Kong
The global apparel industry is known to
be a buyer-driven industry, led by the
retailers, marketers and branded
manufacturers. In the United States, in
particular, the industry is dominated by a
handful of giant retailers (Walmart, Sears,
Kmart, Dayton Hudson, JC Penney), which
account for over two thirds of all apparel
sales. In recent years, these companies
have increasingly deployed information
technologies (IT) to gain market
knowledge, streamline their value chain,
and manage their extensive global
sourcing networks. In response to market
demand, TAL Apparel Limited (TAL), a
no-name Hong Kong-based garment
manufacturer, has developed a
sophisticated information management
systemto manage the supply chain for its
retailer customers, thus solidifying its
position in the apparel value chain. By
taking ownership of customer ordering,
inventory management and shipment
dispatch functions, the manufacturer has
gained valuable access to real-time
market information, allowing it to venture
into the design and test marketing
business. This case explores howa
traditionally weak member in the apparel
industry uses IT to gain competitive
advantage in the intensely competitive
global marketplace, thus upgrading itself
in the economic value chain.
HongKong, East Asia; 2004
Strategic use of information
technology
Competitive advantage
Economic value chain
Buyer-supplier relationship
11 pp
Field research
905-019-8 (9pp)
27
9-502-030
AQUALISA QUARTZ: SIMPLY A
BETTER SHOWER
Moon, Y
Herman, K
Harry Rawlinson is Managing Director of
Aqualisa, a major UK manufacturer of
showers. He has just launched the most
significant shower innovation in recent
history: the Quartz shower. The shower
provides significant improvements in
terms of quality, cost, and ease of
installation. In product testing, the Quartz
shower received rave reviews fromboth
consumers and plumbers alike. However,
early sales of the Quartz have been
disappointing. Rawlinson is nowfaced
with some key decisions about whether
to change his channel strategy,
promotional strategy, and the overall
positioning of the product in the context
of his existing product line.
UnitedKingdom; 8millionrevenue; 2001
Consumer behavior
Consumer marketing
Marketing channels
Marketing strategy
Market entry
Market positioning
Product positioning
Product development
Product introduction
18 pp
Field research
5-503-058 (23pp)
9-504-048
BURBERRY
Moon, Y
Herman, K
Kussmann, E
Penick, E
Wojewoda, S
In 2003, Rose Marie Bravo, Burberrys CEO
is debating howto maintain the currency
and cachet of the brand across its broad
customer base, while entering new
product categories and expanding
distribution. In the past five years, the
brand has become one of the hottest
luxury brands in the world. But Bravo now
faces a number of key decisions, including:
(1) which newproduct categories to
enter; (2) howto deal with the
appropriation of the brand by nontarget
customers; and (3) howprominent the
companys famedcheck pattern should
be in its advertising and clothing.
UnitedKingdom; Fashion; 2003
Advertising
Market positioning
Market segmentation
Marketing strategy
Target markets
Process analysis
Brand management
20 pp
Field research
5-505-007 (18pp)
504-007-1
DIESEL FOR SUCCESSFUL LIVING:
BRANDINGSTRATEGIES FOR AN
UP-MARKET LINE EXTENSIONINTHE
FASHIONINDUSTRY
Chandon, P
Grigorian, V
INSEAD
Renzo Rosso, the president and founder
of Diesel SpA, the innovative Italian
casual wear company famous for its
controversial For Successful Living
advertising campaign, is pondering how
to brand its newupscale line of clothing:
StyleLab. The objectives set for StyleLab
are: (1) to enter the newand attractive
high casual wear market; (2) to create an
aura of prestige for the core D-Diesel line;
and (3) to provide Diesels designers with
the opportunity to experiment with new
cuts and fabrics, which may eventually
trickle down to the main D-Diesel brand.
The case focuses on the selection of the
branding strategy for StyleLab: should it
be an independent brand with no link to
Diesel, a sub-brand of Diesel, or an
independent brand endorsed by Diesel?
It can also be used to discuss critical
issues in the marketing of fashion and
luxury brands. In particular, it illustrates
howDiesel has managed to grow
without losing its core identity. The main
objectives of the case are to develop an
understanding of the key issues involved
in managing a portfolio of brands and to
evaluate alternative branding strategies
for launching a newbrand using a
structured approach and tools. The case
also illustrates critical issues in the
marketing of fashion and luxury brands,
most notably brand extensions. This case
has been successfully taught in an MBA
course on brand management. It can
also be used in a session on branding in a
marketing management course. The
large corpus of Diesels controversial print
and television advertisements also make
the case suitable for an advertising
course or the advertising module of a
marketing management course. Finally,
the case can also be used in a market
research course to illustrate the value of
experimental methods for studying the
effects of branding.
WesternEurope; Fashion; 1,000
employees, 260 millioneuros turnover;
1999
Branding
Marketing
Brand management
Brand extension
Fashion
Luxury goods
Advertising
Logos
24 pp
Field research
504-007-8 (22pp)
504-007-9
599-038-1
FORDKA (A): BREAKINGNEW
GROUNDINTHE SMALL CAR MARKET
Christen, M
Soberman, D
Cothier, G
INSEAD
In response to the changes in the
European small car market, Ford decided
to launch a second small car, the Ford Ka.
The Ford Ka has already been developed,
the production capacity determined, and
the launch set for October 1996 in
France. Before Gilles Moynier can get to
the specifics of the marketing strategy,
he must decide who the target customer
for the Ford Ka should be. The (B) case
reveals that Ford chose an attitudinal
segmentation and presents initial sales
results. The change in the segmentation
approach made it difficult to assess the
success of the launch and to determine
what needed to be done next to
continue to build the brand. The Ford Ka
case introduces students to the
fundamental marketing problemof
market segmentation and target
selection. Fords situation does not fit the
textbook model exactly and thus, the
case is an opportunity for students to see
howtheory is applied in the real world.
Fords problemis not unique. Often firms
want to introduce an existing product to
a newmarket. At a more detailed level,
the case can be used to highlight the
difference between segment formation
28
Marketing
and segment identification and the
importance of considering
implementation issues of a marketing
strategy. The case also exposes students
to typical market research tools used for
market segmentation.
France; Automobile; Sales FF18 billion
(1995); 1996-1997
Segmentation
Segment identification
Target selection
Product introduction in new
markets
Internal marketing
33 pp
Field research
599-038-8 (17pp)
503-082-1
FORDKA: THE MARKET RESEARCH
PROBLEM(A)
Christen, M
Soberman, D
Chung, SW
Cothier, G
INSEAD
In response to changes in the European
small car market and the success of the
Renault Twingo, Ford decided to launch a
newsmall car, the Ford Ka. Before Gilles
Moynier can get to the specifics of the
marketing strategy to launch the Ford Ka,
he needs to decide howto segment the
market and who to target. The market
research firmhas conducted a series of
studies among potential small car buyers
and nowthe data must be analysed and
interpreted. This case series introduces
students to strategic, conceptual and
information issues of market
segmentation and target selection - the
core concept of marketing theory. The
modular nature of the case allows the
instructor to focus either on individual
issues or on the process of market
segmentation and marketing strategy
development. The market research data
enables students to get uniquehands
on experience in dealing with market
research data and a wide range of
statistical tools (cross-tabulations, cluster
analysis, multi-dimensional scaling,
regression analysis).
France; Automobiles; Large; 1996
Multimedia
CD-ROM
Interactive exercise
Market research
Marketing strategy
Attitudinal segmentation
Cluster analysis
MDS
Qualitative data interpretation
Automobiles
Quantative data analysis
Marketing process
Market segmentation
26 pp
Field research
503-082-0
503-082-8 (21pp)
9-509-049
HUBSPOT: INBOUNDMARKETING
ANDWEB 2.0
Steenburgh, T
Avery, J
Dahod, N
This case introduces the concept of
inbound marketing, pulling customer
prospects toward a business through the
use of Web 2.0 tools and applications like
blogging, search engine optimization,
and social media. Students follow the
growth of HubSpot, an entrepreneurial
venture which, in its quest for growth,
faces significant challenges including:
developing market segmentation and
targeting strategies to decide which
Marketing
29
customer to serve and which to turn
away, configuring pricing strategies to
align with the value delivery stream
customers experience, and determining
whether inbound marketing programs
can generate enough scale or whether
traditional outbound marketing
methods need to be employed to
accelerate growth.
Massachusetts; 40 employees, $5,000,000
Social media
Market segmentation
Internet marketing
Entrepreneurship
Customer relationship
management
Web technology
Pricing policies
21 pp
Field research
5-510-043 (17pp)
IMD-5-0679
LOGITECH: LEARNINGFROM
CUSTOMERS TODESIGNA NEW
PRODUCT
Deschamps, JP
Berg, M
IMD
In 2005 Logitech launched a newand
improved cordless presenter which was
This free service gives details of
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the next generation product of its
presentation device line. The entire
process to launch was unusual for
Logitech as the following factors took
place: a director of engineering played a
key marketing role, a newmethod of
customer feedback and research was
used to decide on product features and
the entire project was outsourced to a
firminTaiwan - which was a first for this
product unit. The case goes over the
issues and challenges that were faced
along the way and howmarketing and
engineering had to work together in an
unusual pairing in order to get to a
successful product launch.
Switzerland, Taiwan, California;
Technology products; 6,000 employees,
US $1.35 billioninannual revenues;
January 2004 toJanuary 2005
Product development
Customer feedback
Customer research
Project development
Product launch
Technology
Innovation
Marketing
Engineering
28 pp
Field research
IMD-5-0679-T (18pp)
IMD-5-0395
MEDIQUIP SA (R)
Kashani, K
IMD
The case describes the selling activities of
a sales engineer with respect to a key
account. The loss of the order for a
CT-Scanner provides the background for
analyzing the dynamics of the buying
situation and the salesmans handling of it.
The issues raised are: Who are the cast of
characters influencing the buying
decision? What seems to motivate them?
What sales strategy would be appropriate.
Germany; Medical diagnostic equipment
Corporate buying
Industrial selling
9 pp
Field research
IMD-5-0395-T (13pp)
9-505-038
PRODUCT TEAMCIALIS: GETTING
READYTOMARKET
Ofek, E
Lilly and ICOS are preparing for the
launch of a new drug, Cialis, to compete
against Viagra. To position against the
incumbent firm Pfizer, which developed
Marketing
30
and markets Viagra, and other
newcomers into the erectile dysfunction
market, they must determine how best
to segment the market and which target
market to focus on. The marketing plan
should take advantage of Cialiss
medical profile. In particular, they must
pay special attention to the
communication strategy to patients,
physicians, and partners. The analysis,
plan, and action should take into
account extensive market research and
recent competitive developments.
2002
Market research
Market segmentation
Marketing planning
Communication strategy
Competition
Target markets
Product positioning
26 pp
Field research
5-505-060 (15pp)
505-098-1
REDBULL: THE ANTI-BRANDBRAND
Kumar, N
Tavassoli, N
Linguri Coughlan, S
Founded in Austria in 1984, Red Bull was
credited with creating the energy drinks
category. In 2004, the worldwide energy
drinks category was worth 2.5 billion
euros and Red Bull commanded a 70%
market share. Sold in over 100 markets,
Red Bull was the market leader in the
USA as well as in 12 of the 13 West
European markets where it was present.
Central to Red Bulls success was the use
of word-of-mouth or buzz marketing.
Through its sponsorship of youth culture
and extreme sports events, it developed
a cult following among marketing-wary
GenerationY-ers, (18- to 29-year olds)
who perceived it as an anti-brand. While
it purported to be a sports drink, Red Bull
was mostly sold in clubs and bars as an
alcohol mixer, where its caffeine doses
helped revive clubbers into the early
morning hours. By playing on
associations with energy, danger and
youth culture, Red Bull carefully
cultivated its mystique, which earned it
nicknames likeliquid cocaine. The
company used additional non-traditional
marketing techniques, such as consumer
education teams who drove around
handing out free cans of Red Bull to
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Marketing
31
those in need of energy, and student
brand managers who promoted the
product on university campuses. In 2004,
Red Bull found itself at a crossroads,
challenged with defending its market
share. It faced a maturing market and an
onslaught of competitive brands, some
of thempromoted by beverage industry
giants such as Coca-Cola and Pepsi,
others as private labels by mass retailers
such as Asda (part of Wal-Mart). Red Bull
needed to determine whether it was
outgrowing its anti-establishment status.
As a mature brand, it needed to assess
whether the time had come to transition
to a more traditional marketing
approach. But this raised a critical
question: would this move toward a
more mainstreamapproach
fundamentally destroy Red Bulls
anti-brand mystique?
Europe, USA; Energy drinks; 1.26 billion
euros sales; 1982-2004
Buzz marketing
Distribution
Growth
Brand building
Guerilla marketing
Energy drinks
Integrated marketing
communications
Advertising
Product-life cycle
Non-traditional marketing
14 pp
Published sources
505-098-8 (10pp)
510-077-1
RENOVATOILET PAPER:
AVANT-GARDE MARKETINGINA
COMMODITIZEDCATEGORY
Bart, Y
Chandon, P
Sweldens, S
Seabra de Sousa, R
INSEAD
Renova, a Portuguese toilet paper
manufacturer, is battling to survive in a
stagnant, commoditised market
dominated by international giants and
private labels. To growand remain
independent, CEOPaulo Pereira da Silva is
considering three options: (1) private
label manufacturing; (2) newfunctional
innovations, and (3) launching a black
toilet paper. What should he do? And how
should the chosen strategy be
implemented? In exploring the
challenges facing small players in
stagnant commodised categories where
international giants and private labels
dominate, this case provides detailed
information on consumer behaviour,
competition, and the company (including
the brand and past communication
campaigns). It accounts for the success of
private labels and explains when it makes
sense to produce for a private label. It
illustrates the key role of marketing and
branding, showing howRenova
differentiated on hedonic and symbolic
benefits in a category that was thought to
be hopelessly commoditized.
Disposable paper; 2005-2010
Marketing
Brand
Private label
Luxury
Consumer goods
Blue Ocean
Innovation
Advertising
23 pp
Field research
510-077-8 (16pp)
9-504-016
STARBUCKS: DELIVERINGCUSTOMER
SERVICE
Moon, Y
Quelch, JA
Starbucks, the dominant specialty-coffee
brand in North America, must respond to
recent market research indicating that
the company is not meeting customer
expectations in terms of service. To
increase customer satisfaction, the
company is debating a plan that would
increase the amount of labor in the stores
and theoretically increase speed-of-
service. However, the impact of the plan
(which would cost $40 million annually)
on the companys bottomline is unclear.
UnitedStates; 60,000 employees, gross
revenue: $3.3 billionrevenues; 2002
Market research
Profitability
Customer retention
Customer service
20 pp
Field research
5-504-089 (19pp)
IMD-5-0604
TETRA PAK (A): THE CHALLENGE OF
INTIMACYWITHA KEY CUSTOMER
Kashani, K
Shaner, J
IMD
The (A) case of this series describes a
failed attempt to sell newpackaging
machinery to a key Italian customer
facing declining sales and profits in its
milk business. Tetra Paks analysis leads
themto propose a newproduct strategy
that is summarily rejected by the
customer. The case raises the issue of
Tetra Paks strategy in the Italian milk
market and the wisdomof its proposed
customer strategy. The broader question
is whether the company is serving the
best interest of its key accounts.
Italy andinternational markets;
Packagingsystems; 7 billioneuros,
22,000 employees; 2000-2002
Industrial marketing
Key account marketing
Customer orientation
Value chain marketing
Customer satisfaction surveys
Marketing implementation
Management of change
14 pp
Field research
IMD-5-0604-T (44pp)
504-009-1
UNILEVER INBRAZIL (1997-2007):
MARKETINGSTRATEGIES FOR
LOW-INCOME CONSUMERS
Chandon, P
Pacheco Guimaraes, P
INSEAD
Unilever is a solid leader in the Brazilian
detergent powder market with an 81%
market share. Laercio Cardoso must
decide: (1) whether Unilever should divert
money fromits premiumbrands to target
the lower-margin segment of low-income
consumers; (2) whether Unilever can
reposition or extend one of its existing
brands to avoid launching a newbrand;
and (3) what price, product, promotion,
and distribution strategy would allow
Unilever to deliver value to low-income
consumers without cannibalising its own
premiumbrands too heavily. This case
deals with the question of whether
marketing and branding create value for
really poor consumers. It can therefore be
used in an MBA, executive education or
undergraduate core course on marketing
management to illustrate the value of
marketing and the marketing approach,
or in a brand management course to
explore the frontiers of branding. This
case can also be used in a consumer
behaviour course to examine the
motivations and decision-making process
of low-income consumers. Alternatively, it
can be used in a global marketing or
global strategy and management course
to study the way multinational
companies adapt their strategy to
compete in emerging countries.
Brazil; Home andpersonal care; US
$56 billion; 1996-2004
Marketing
Branding
Low-income consumers
Poverty
Newproduct introduction
Break-even analysis
Advertising
Pricing
23 pp
Field research
504-009-8 (34pp)
504-009-9
IMD-5-0702
XIAMETER: THE PAST ANDFUTURE
OF ADISRUPTIVE INNOVATION
Kashani, K
Francis, I
IMD
The case study is about a successful
strategy formulated at DowCorning for
marketing commodity silicones, a
chemical used in diverse applications. It
deals with important issues in B2B
marketing: refocusing on user needs and
developing aneeds-based
segmentation of industrial customers;
bundling and de-bundling of technical
services; branding of commodity
chemicals; web-based lowprice/no-frills
value proposition; making money with
commodities. The case also describes a
tipping point in DowCornings history
and strategy where their leadership in
the silicone business was at stake;
management had to chart radically new
ways to compete in commoditized
markets - what they call their disruptive
innovation. At the end the students are
asked to look at the success of Xiameter
(the companys web-based brand) and
decide its future. The choices are:
maintain status quo; incrementally fine
tune the strategy; go for a major
overhaul. Xiameter case can be used to:
(1) showan example of turning customer
insights into successfully re-defining
business and marketing strategies; (2)
address issues of segmentation, value
proposition and branding in industrial
marketing; (3) demonstrate howtwo
contrasting value propositions could be
offered to industrial customers under
different brands; (4) discuss value
innovation in B2B markets; (5) examine
and analyze elements of a successful
web-based business model; (6) learn
howadversity can challenge an
organisation to re-define its business and
marketing strategies for future success.
International, global; Silicones; US
$4 billion; 2001-2006
Marketing industrial commodities
Strategic innovation
e-Commerce
Industrial segmentation
Dual branding
21 pp
Field research
IMD-5-0702-T (20pp)
Marketing
32
33
9-694-046
BARILLA SPA (A)
Hammond, JH
Barilla SpA, anItalianmanufacturer that sells
toits retailers largely throughthird-party
distributors, experiencedwidely fluctuating
demandpatterns fromits distributors
duringthelate1980s. This case describes a
proposal toaddress theproblemby
implementinga continuous replenishment
program, under whichtheresponsibility for
determiningshipment quantities tothe
distributors wouldshift fromthe
distributors toBarilla. Describes support
andresistancewithinBarillas different
functional areas andwithinthedistributors
Barilla approachedwiththeproposal.
Italy; 7,000 employees, $2 billion
revenues; 1990
Distribution planning
Order processing
Suppliers
Logistics
21 pp
Field research
5-695-063 (22pp)
600-003-1
DRAGONFLY: DEVELOPINGA
PROPOSAL FOR ANUNINHABITED
AERIAL VEHICLE (UAV)
Loch, C
De Meyer, A
Kavadias, S
INSEAD
IACo is an aerospace company,
developing UAVs (Uninhabited Aerial
Vehicles). The case describes the project
of developing a bid for a large contract
under severe time pressure. The case
discusses project planning for rapid
time-to-market. The case discusses
project management problems occuring
during the development of a new
product. The main objectives are to
illustrate: (1) the different ways of
representing project activities; (2) the
traditional project management
techniques (CPM, Gantt Chart); (3)
extensions of the critical path approach
(to account for time uncertainty, loops
and rework); and (4) howto focus
improvement efforts.
UK; Aerospace; 1999
9 pp
Published sources
600-003-8 (23pp)
GS3A
HEWLETT-PACKARDCO: DESKJET
PRINTER SUPPLY CHAIN(A)
Kopczak, LR
Lee, HL
This case describes a challenge facing
Hewlett-Packards (HP) Vancouver
Division in 1990. Although its newinkjet
printers were selling well, inventory levels
worldwide were rising as sales rose. In
Europe, high product variety was making
inventory levels especially high. HP
considered several ways to address the
inventory issue: air freighting printers to
Europe, developing more formalized
inventory planning processes, or building
a factory in Europe. The teaching purpose
is to discuss inventory analysis and/or to
discuss the organizational challenges
companies face in implementing supply
chain solutions.
Global supply chain
12 pp
Field research
9-600-143
IDEOPRODUCT DEVELOPMENT
Thomke, S
Describes IDEO, the worlds leading
product design firm, and its innovation
culture and process. Emphasis is placed
on the important role of prototyping and
experimentation in general, and in the
design of the very successful PalmV
handheld computer in particular. A
studio leader is asked by a business
start-up (Handspring) to develop a novel
hand-held computer (Visor) in less than
half the time it took to develop the Palm
V, requiring several shortcuts to IDEOs
legendary innovation process. Focuses
on: 1) prototyping and experimentation
practices at a leading product developer;
2) the role of playfulness, discipline, and
structure in innovation processes; and 3)
the managerial challenges of creating
and managing an unusually creative and
innovative company culture.
California; 300 employees, $50 million
revenues; 1998
Organizational management
Prototypes
Outsourcing
Creativity
Each year, up to ten Philip Law
scholarships are available to
research students at ecch member
institutions to develop teaching
cases based on original field
research carried out during their
studies.
Each scholarship is worth 1,300
and the student attends an ecch
case writing workshop at no charge.
Find out more at
www.ecch.com/scholarships
case development
scholarships
Design
Product development
21 pp
Field research
5-602-060 (16pp)
606-012-1
IDEO: SERVICE DESIGN(A)
Sosa, ME
Bhavnani, R
INSEAD
This case describes howIDEOadapts its
famed innovation process (developed to
design newproducts) to the
particularities of services and their
design. The case series describes four
service design projects to showhow
IDEOhas developed and codified a series
of design methods, which constitute a
toolbox fromwhich teams can pick and
choose depending on the innovation
project. The case study aims to: (1)
reinforce the notion of the five-step
innovation process that can be used for
any design project, whether it is a service
or a product. (The five steps of the IDEO
process are: (i) observe; (ii) synthesise; (iii)
generate ideas; (iv) refine; and (v)
implement); (2) highlight the differences
between product and service design,
and the subtle differences in the
respective processes; (3) introduce the
notion of IDEOmethods as a set of
interchangeable tools to be used
according to the type of project being
worked on, and identify when is it best to
use them; and (4) introduce the concept
of knowledge brokering and examine
the ways in which the transfer of
knowledge is carried out across a
distributed organisation.
USA, UK; Consulting(transportation,
banking, telecommunications, health
care); 300+employees; 1999-2005
Innovation management
Newproduct and service
development
Brainstorming
Prototyping
Knowledge brokering
23 pp
Field research
606-012-8 (15pp)
602-010-1
MARKS & SPENCER ANDZARA:
PROCESS COMPETITIONINTHE
TEXTILE APPAREL INDUSTRY
Pich, M
Van der Heyden, L
Harle, N
INSEAD
This case was written to illustrate the
importance of business process design as
a basis for competition in the textile
industry. The case illustrates the
impressive performance of Zara, the new
fashion player fromSpain, which has
innovated in process design so as to
deliver newcollections in its stores with a
lead-time of 5 to 7 days. The more
traditional approach in textile retailing is
illustrated here by Marks and Spencer
(M&S), the well-known UK retailer.
Notwithstanding M&Ss current
problems, the case does not fall into an
overly simple comparison between a
young, innovative competitor and an
ageing glory. The authors have taught
this case both in executive education and
in the MBA core class on process and
operations management. There are four
important concepts that we typically
stress, more or less, depending on
pedagogical objectives: (1) newsvendor
losses in the textile industry; (2) the role
of postponement in final design; (3) the
lean enterprise aspect of Zara; and (4)
process competition and innovation,
embedded in technology evolution.
UK; International, retail, textile apparel;
Large; 1998-2001
Process competition
Supply chain
Retail apparel
Delayed customisation
Time-based competition
Newsboy model
Innovation
17 pp
Published sources
602-010-8 (37pp)
602-010-9
E602-010-1
MARKS & SPENCER ANDZARA:
PROCESS COMPETITIONINTHE
TEXTILE APPAREL INDUSTRY
Spanish language
Harle, N
Van der Heyden, L
Pich, M
INSEAD
This is a Spanish version of the case.
This case was written to illustrate the
importance of business process design as
a basis for competition in the textile
industry. The case illustrates the
impressive performance of Zara, the new
fashion player fromSpain, which has
innovated in process design so as to
deliver newcollections in its stores with a
lead-time of 5 to 7 days. The more
traditional approach in textile retailing is
illustrated here by Marks and Spencer
(M&S), the well-known UK retailer.
Notwithstanding M&Ss current
problems, the case does not fall into an
overly simple comparison between a
young, innovative competitor and an
ageing glory. The authors have taught
this case both in executive education and
in the MBA core class on process and
operations management. There are four
important concepts that are stressed,
more or less, depending on pedagogical
objectives: (1) newsvendor losses in the
textile industry; (2) the role of
postponement in final design; (3) the
lean enterprise aspect of Zara; and (4)
process competition and innovation,
embedded in technology evolution.
UK, international; Retail, textile apparel;
Large; 1998-2001
Process competition
Supply chain
Retail apparel
Delayed customisation
Newsboy model
Innovation
18 pp
Published sources
602-010-8 (37pp)
602-010-9
34
Used as part of the third module of a
course on Managing Service Operations,
which addresses howmanagers can
informtheir decisions with customer
data. Provides a retailing context in which
employee retention strategies are
explored through analyzing detailed
store-level data.
UnitedStates; 800 employees,
$84,767,816 revenues; 2000-2001
Employee retention
Service management
5 pp
Field research
5-606-036 (11pp)
5-606-107 (35pp)
9-692-011
TOMBOWPENCIL COLTD
Mishina, K
Tombow Pencil Co Ltd, one of Japans
two premier pencil manufacturers, has
been using a subcontractor network in
order to respond to changing market
conditions. The system currently faces a
new challenge as Tombow moves to
address a volatile business market for
promotional pencils: an expanding
market demanding novel products,
short delivery lead time, and large
quantities. To overcome growing
stockouts and inventory problems,
Yohei Ogawa, the companys new
president and grandson of the founder,
must evaluate the performance of
Tombows subcontractor-based
production system and formulate a plan
of action. Introduces students to the
subcontractor-based production
system, a system prevalent in certain
parts of the world outside the United
States, and allows them to analyze its
performance for simple products with
which they are all familiar. The analysis
poses profound questions about ways
to manage it more effectively and its
future potential as an alternative to
vertically integrated operations.
Tokyo, Japan; Writinginstruments;
Mid-size, employees 600, $116 million
revenues; 1991
Japan
Product lines
Production controls
Suppliers
Vertical integration
19 pp
9B10D005
OPERATIONS STRATEGY AT GALANZ
Ng, S
Li, B
Zhao, X
Xu, X
Lei, Y
Ivey Publishing
Starting froma humble beginning of
being a manufacturer of down feather
products owned by ShundeTownship,
Galanz Enterprises Group Co Ltd (Galanz)
had transformed itself into a world class
manufacturer of microwave ovens
producing about 50 per cent of the
global output in 2003. This case describes
the competitive and operational
strategies that Galanz used to achieve
such a meteoric growth. The company
started out with a clear competitive
strategy based on cost leadership. It
designed and implemented operations
systemto help achieve lower cost
through economy of scale, the transfer of
production capacity fromdeveloped
countries and full utilization of the
available production capacity. The case
aims to: (1) introduce students to the
concepts of order winner, order qualifiers,
operations priorities/objectives; (2) show
howoperations priorities should reflect
customer requirements and affect the
way a company wants to compete; (3)
demonstrate howa company can gain
competitive advantages through low
cost strategy and howto support
business strategy using operations
strategy and capabilities; (4) show
students howa company can build
multiple capabilities over time and howa
companys strategy and operational
capabilities can change over time; (5)
provide students with the opportunity to
analyze trade-offs involved in making
strategic, operational and marketing
decisions as a business expands fromthe
domestic to the global market and from
OEMto ODMand OBM; (6) challenge
students to develop coherent action
plans that address future growth
objectives; and (7) help understand the
tremendous opportunities and
challenges of managing operations and
supply chain activities in China.
China; Electric andelectronic equipment
supplies; Large; 2003
Competitive strategy
Operations strategy
17 pp
Field research
8B10D05 (20pp)
608-038-1
PIONEERINGHEALTHY QUICK
SERVICE FOOD: THE CASE OF YO!
SUSHI
Day, M
Henley Business School
This case study focuses on the growth of
Yo!Sushi, a small but expanding chain of
restaurants that serve Japanese-style
food using a conveyer belt restaurant
design. The case covers the history of the
business, howit has developed its site
choice policy, howcustomers are served
through the process, and the importance
of service quality in generating repeated
customer returns. The case study nicely
highlights the importance of the key
tenets of a good operations strategy: (1)
understanding your different types of
customers intimately; (2) being able to
shape the design of a process to meet
different customer demands; and (3)
measuring those aspects of the
operation that relate to satisfying service.
UK, Europe; Restaurant, foodservice;
50 millionturnover; June 2007-2008
Operations strategy
Process profiling
Customer analysis
Quality management
Capacity
30 pp
Field research
608-038-8 (12pp)
608-038-9
OSA1
REDBRANDCANNERS
Wilson, RB
Presents a simple example of a
production planning problemamenable
to analysis using linear programming.
California; Canning; 1965
Production planning
4 pp
9-602-096
STORE24 (A): MANAGINGEMPLOYEE
RETENTION
Frei, FX
Campbell, D
35
Field research
5-693-027 (20pp)
9-693-019
TOYOTA MOTOR MANUFACTURING,
USA, INC
Mishina, K
On 1 May 1992, Doug Friesen, Manager
of assembly for Toyotas Georgetown,
Kentucky, plant, faces a problemwith the
seats installed in the plants sole product
- Camrys. A growing number of cars are
sitting off-line with defective seats or are
missing thementirely. This situation is
one of several causes of recent overtime,
yet neither the reason for the problem
nor a solution to it is readily apparent. As
the plant is an exemplar of Toyotas
famed production system(TPS), Friesen is
determined that, if possible, the situation
will be resolved usingTPS principles and
tools. Students are asked to suggest what
action(s) Friesen should take and to
analyze whether Georgetowns current
handling of the seat problemfits within
theTPS philosophy.
Kentucky; 4,000 employees, $1-5 billion
revenues; 1992
Process analysis
Quality control
Production controls
Suppliers
22 pp
Field research
5-693-046 (23pp)
GS65
ZAPPOS.COM: DEVELOPINGA
SUPPLY CHAINTODELIVERWOW!
Marks, ME
Lee, HL
Hoyt, DW
Zappos was founded in 1999, during the
Internet boom, to sell shoes on-line. The
companys founding premise was to
provide the ultimate in selection to its
customers - all brands, styles, sizes, and
colors. Zappos organized all aspects of its
business (including recruiting, culture, call
center, inventory, website, and supply
chain) to provide the best possible service
- it wanted towow everyone who
interacted with the company, from
customers to employees to corporate
The case offers an illustration of a
fast-response global supply, production,
and retail network. In 2002 Zara,
operating out of La Coruna in north-west
Spain, was the only retailer that could
deliver garments to its 507 stores in 33
countries in just fifteen days after they
were designed. Its unique systems for
product design, order administration,
production, distribution and retailing
were behind this astonishing capability.
Its unconventional approach provides
interesting opportunities for discussion
and learning. The case is quite popular
with executives, MBAs and
undergraduate business students. It can
be used in a remarkably wide range of
courses - froma core operations
management course to electives focused
on international operations, operations
strategy, global logistics, distribution,
retailing, as well as in specialised and
general executive programmes. This case
was sponsored by the Indiana University
CIBER Case Collection.
Spainandglobal; Fashionapparel; Large
multinational; 2002
Global supply chain
Design-product-distribution-retail
integration
Fast-response networks
Fashion retailing
Queuing and inventory models
Manufacturing-marketing interface
Mechanising
15 pp
Field research
603-002-8 (21pp)
603-002-9
partners. Zappos grewrapidly, and by
2008 was profitable with net sales (after
returns) of about $650 million. The
company faced a number of issues as it
looked forward. While it had penetrated
only about 3 percent of the US market for
shoes, Zappos had expanded its product
lines to items such as camping gear and
video games. It needed to determine
those elements of its strategy had
contributed to its success in shoes, and
whether it would be able to duplicate that
success in other product lines. It also
needed to determine howit could scale
its business - much of the effort it had
made towow its customers was labor
intensive and expensive - could this be
scaled to a company with revenues of tens
of billions? Finally, the economic
landscape changed dramatically in late
2008, with the financial market collapse
and recession. The service-intensive
Zappos.combusiness was based on sales
at little to no discount, unlike many
websites that relied on selling at the
lowest possible price. Would the company
need to make changes to respond to the
changed economic environment, and if
so, what were those changes? The case
provides an opportunity to evaluate the
core competences of an Internet retailer
that has experienced rapid, initial success.
The case enables students to consider
supply chain issues, which are critical to
the companys success, in the broader
context of the business: the bases of
Zappos success, its core competencies,
culture, and competitive environment.
USA; Retail; 2009
Supply chain
Consumer goods
Retailing
Inventory management
Corporate culture
Customer service
Internet marketing
Logistics
Shoe retailing
28 pp
Field research
GS65TN (12pp)
603-002-1
ZARA
Ferdows, K
GeorgetownUniversity
Domiguez Machuca, JA
University of Sevilla
Lewis, M
36
9-710-467
APPLE INC IN2010
Yoffie, DB
Kim, R
On 4 April 2010, Apple Inc launched the
iPad, the companys third major
innovation released over the last decade
under its iconic CEOSteve Jobs. Apples
strategy of shifting its business into
non-PC products had thrived so far,
driven by the smashing success of the
iPod and the iPhone. Yet challenges
abounded. Macintosh sales in the
worldwide PC market still languished
below5%. Growth in iPod sales was
slowing down. iPhone faced increasing
competition in the smartphone industry.
And would Apples latest creation, the
iPad, take the company to the next level?
California; 36,800 employees, gross
revenue: $43 billion; 1976-2010
Market positioning
Strategic planning
Competition
Technology
25 pp
Published sources
5-710-484 (11pp)
9-700-115
DOGFIGHT OVER EUROPE:
RYANAIR (A)
Rivkin, JW
In April 1986, the Ryan brothers announce
that their fledging Irish airline Ryanair, will
soon commence service between Dublin
and London. For the first time, Ryanair will
face formidable competitors such as Aer
Lingus and British Airways on a major
route. Students are asked to assess
Ryanairs entry and anticipate the
response of incumbent carriers.
Ireland; 10 employees; 1986
Cost analysis
Industry analysis
Market entry
Competition
8 pp
Field research
5-701-090 (24pp)
9-701-132
DUCATI
Gavetti, G
Focuses on the turnaround and strategic
repositioning of Ducati, an Italian maker
of high-end sport motorcycles, and
describes the current concerns with the
growth prospects of the company.
Federico Minoli, the CEOand strategic
mind behind the turnaround, knewthat
Ducati could not growindefinitely in its
current niche. One alternative was to
attack Harley Davidsons niche with a
Ducati interpretation of a cruiser.
Italy
Strategy formulation
Competition
25 pp
Field research
5-705-489 (12pp)
302-058-1
EVENA CLOWNCANDOIT: CIRQUE
DUSOLEIL RECREATES LIVE
ENTERTAINMENT CASE B
Kim, WC
Mauborgne, R
Bensaou, BM
Williamson, M
INSEAD
Cirque du Soleil very successfully entered
a structurally unattractive circus industry.
It was able to reinvent the industry and
created a newmarket space by
challenging the conventional
assumptions about howto compete. It
value innovated by shifting the buyer
group fromchildren (end-users of the
traditional circus) to adults (purchasers of
the traditional circus), drawing upon the
distinctive strengths of other alternative
industries, such as the theatre, Broadway
shows and the opera, to offer a totally
newset of utilities to more mature and
higher spending customers. The case
series is designed to serve a variety of
purposes in the value innovation and
creating newmarket space teaching
module of an MBA strategy course or
executive education programme. The
case series can be equally used
individually in a standalone module on
value innovation or as part of a sequence
of three to four sessions. In both
instances, the instructor can best use it to
cover the following topics: (1) the value
innovation logic (as compared to industry
and competitive analysis); (2) the concept
of value curve; and (3) the six paths
analysis for creating newmarket space.
Europe; Entertainment, circus; 2001
Circus and live entertainment
industry
Value innovation
Strategy
Blue Ocean Strategy
Creating newmarket space
Redefining industry boundaries
Competition
9 pp
302-057-8 (24pp)
9-384-049
HONDA (A)
Christiansen, ET
Pascale, RT
Describes the history of Honda Motor
Company fromits beginning through its
entry into and subsequent dominance of
the US market. The history is explained
primarily in terms of strategic factors and
quoted fromtwo sources: an earlier case
and Boston Consulting Group report on
the motorcycle industry. Should be used
with Honda (B).
UnitedStates, Japan; 1948-1974
Business policy
Learning curves
Competition
Corporate strategy
9 pp
Published sources
5-386-034 (7pp)
5-704-022 (27pp)
9-384-050
HONDA (B) Supplement
Christiansen, ET
Pascale, RT
Describes the history of Honda Motor
Company fromits beginning through its
entry into and subsequent dominance of
the US market as seen through the eyes
of Honda executives. The history of
Hondas successful entry into the US
market is viewed as highly adaptive and
fraught with error and serendipity. Honda
(A) and (B) are designed to be used
together to contrast two differing views
of major events in a companys history,
37
both of which are important for a general
manager to understand.
UnitedStates, Japan; 1948-1974
Management styles
Change management
Business policy
Corporate strategy
9 pp
Field research
5-386-034 (7pp)
5-704-022 (27pp)
9-798-063
LEADERSHIP ONLINE (A): BARNES &
NOBLE vs AMAZON.COM
Ghemawat, P
Baird, B
Describes the attempt of a traditional
retailer, Barnes & Noble, to counter the
challenges posed by an Internet-based
start-up, Amazon.com.
$2 billionrevenues; 1996-1997
Competition
Internet
19 pp
Published sources
5-798-119 (15pp)
309-059-1
MCDONALDS ANDKFC: RECIPES FOR
SUCCESS INCHINA
Szulanski, G
Chen, W
Lee, J
INSEAD
McDonalds is the undisputed global
leader of quick service restaurants. In
China, however, it has less than half the
number of outlets and significantly lower
profit margins than KFC. Why is KFC
seemingly winning in China? Howcan
McDonalds leverage its global acumen
to catch up with KFC? This case studies
cross border transfer of business models
between two very different institutional
contexts. It discusses howmultinational
firms replicate their proven successful
business model and underlying practices
fromUSA to China, a country that is
deemed very different in operating
environment and consumer behaviour. If
local adaptation seems inevitable, then
what has to be changed and when?
China; Quick service restaurants and
franchise; McDonalds market cap, US
$60 billion(2008); 1987-2008
Adaptation
Replication
Transfer of best practice
Global strategy
Business model
China
Franchise
Emerging market
Restaurant chain
31 pp
Published sources
9-396-357
MCKINSEY & COMPANY: MANAGING
KNOWLEDGE ANDLEARNING
Bartlett, CA
Describes the development of McKinsey &
Coas a worldwide management
consultingfirmfrom1926 to1996. In
particular, it focuses onthe way inwhich
McKinsey has developedstructures,
systems, processes, andpractices tohelpit
develop, transfer, anddisseminate
knowledge amongits 3,800 consultants in
69 offices worldwide. Concludes by
focusingonthree youngconsultants
operatingineachdimensionof the firms
organization- the local office, the industry
practice, andthe firms competence center.
Managingdirector, Rajat Gupta, wonders if
the changes he has made are sufficient to
maintainthe firms vital knowledge
development process.
6,000 employees, $1.8 billionrevenues;
1996
Innovation
Business policy
Managing professionals
Knowledge management
Knowledge transfer
20 pp
Field research
5-398-065 (16pp)
303-046-1
NISSANS U-TURN: 1999-2001
Condensed version
Manzoni, JF
Hughes, K
Barsoux, JL
INSEAD
When Renault sent Carlos Ghosn to
turnaround its alliance partner Nissan,
observers were sceptical of his chances.
ecch provides a range of support
services to case authors:
global distribution
case writing workshop
awards
competitions
scholarships.
Find out more at
www.ecch.com/registeracase
do you write cases?
38
After soliciting recommendations from
the employees, he unveiled a three-year
plan involving plant closures, job cuts,
and a refocus on design. Within two
years, the company had achieved a
dramatic recovery, posting record
profits and proposing a dazzling array of
new models. Case (A) covers the
dynamics of taking charge and case (B)
the process of leading change. The
combined and condensed version is for
instructors wishing to cover the material
in a single session. The cases raise a
number of themes to do with how an
incoming leader establishes credibility,
builds a case for painful change, gathers
support, provides constant and
consistent communication, sells growth
as well as cuts, enforces accountability,
measures progress, and sustains
momentum for change.
Japan(andFrance); Automobile sector,
NissanandRenault; Over 130,000
employees; 1999-2001
Automobile, cars
Alliance
Transformation and turnaround
Restructuring, change and revival
Fair process and credibility
Cultural differences
Strategy
Vision and leadership
Cost cutting and plant closures
Empowerment
Product development and
productivity
Cross-functional teams
Design and purchasing
Trust
Growth
24 pp
Published sources
303-046-8 (15pp)
311-020-1
RYANAIR - THE LOWFARES AIRLINE:
WHITHER NOW?
OHiggins, E
University College Dublin(UCD) College
of Business &Law
Ryanair was the first budget airline in
Europe, modelled after the successful US
carrier, Southwest Airlines. It was Europes
largest airline by passenger numbers and
market capitalisation in 2010. It had
enjoyed remarkable growth and success
but faced various issues in 2010/11,
notably the global economic recession
and uncertainty about oil prices. What
strategy should Ryanair use to weather
this storm? Would the crisis produce a
long-termchange in industry structure?
Could Ryanair take advantage of the
situation as it had in the past, by growing
when others were cutting back? A
predicament of its own making was
Ryanairs 29.8 percent shareholding in
Aer Lingus, the Irish national carrier,
following an abortive takeover attempt.
The case concentrates on howto analyse
industry environments, and internal
resources / capabilities of companies. It
illuminates howa strategy that is
grounded in the best deployment of
assets / resources / competencies, whilst
adding perceived value to customers,
delivers sustainable strategic advantage.
But the case also illustrates the difficulties
and obstacles that stand in the way of
achieving and retaining such advantage.
Evaluation of the Aer Lingus bid involves
issues of corporate level strategy, as well
as of strategic change, and there is also
the scope to appraise issues of strategic
leadership by analysing the role of CEO
Michael OLeary in Ryanair.
Europe; Airline; Turnover approx 3 billion
euros; Primarily 2009, 2010, 2011
Airline industry
Budget airlines
Sustainable competitive advantage
Lowest cost strategy
SWOT analysis
Strategic development
Corporate strategy
Leadership
36 pp
Published sources
311-020-8 (27pp)
309-038-1
STRATEGIC LEADERSHIP AND
INNOVATIONAT APPLE INC
Heracleous, L
Papachroni, A
This case begins by describing Apples
near bankruptcy during the 1990s, and its
remarkable turnaround under Steve Jobs
since 1997. The competitive landscape in
the PC industry is outlined and Apples
key strategic decisions during the 1990s,
including Jobs key strategic actions to
accomplish Apples turnaround are
noted. Apples culture, approach to
strategic human resource management,
and innovative capacity are explored,
including Apples approach of deep
collaboration. A key strategic issue noted
in the case is Apples strategy of
maintaining a proprietary, integrated
systemof hardware and software which
is in contrast with the approach of most
other technology firms. The case ends
with a forward-looking section, and by
reiterating Apples strategic challenges
by 2012. The teaching objectives for this
case are: (1) understand industry
structure and howan organisation might
successfully try to negotiate the forces;
(2) explore the nature of strategic
leadership through Steve Jobs leadership
at Apple Inc; (3) explore the nature of
successful innovation and howit might
be accomplished; (4) raise some
corporate governance issues; and (5)
engage students in strategic analysis and
strategic thinking. The target audiences
for this case are: (1) advanced strategy,
leadership or innovation students (MBAs
and MScs); and (2) executive education
participants in strategy, leadership or
innovation courses.
US; Computers, consumer electronics;
$32.4 billionrevenues; 1997-2012
Strategic leadership
Strategic innovation
Strategic alignment
Industry analysis
Strategic thinking
35 pp
Published sources
309-038-8 (19pp)
302-057-1
THE EVOLUTIONOF THE CIRCUS
INDUSTRY (A)
Kim, WC
Mauborgne, R
Bensaou, BM
Williamson, M
INSEAD
Cirque du Soleil very successfully entered
a structurally unattractive circus industry.
It was able to reinvent the industry and
created a newmarket space by
challenging the conventional
assumptions about howto compete. It
value innovated by shifting the buyer
group fromchildren (end-users of the
traditional circus) to adults (purchasers of
the traditional circus), drawing upon the
distinctive strengths of other alternative
industries, such as the theatre, Broadway
shows and the opera, to offer a totally
newset of utilities to more mature and
higher spending customers. The case
series is designed to serve a variety of
purposes in the value innovation and
39
creating newmarket space teaching
module of an MBA strategy course or
executive education programme. The
case series can be equally used
individually in a standalone module on
value innovation or as part of a sequence
of three to four sessions. In both
instances, the instructor can best use it to
cover the following topics: (1) the value
innovation logic (as compared to industry
and competitive analysis); (2) the concept
of value curve; and (3) the six paths
analysis for creating newmarket space.
Canada, USA, Europe; Circus; 2001
Circus and live entertainment
industry
Value innovation
Strategy
Blue Ocean Strategy
Creating newmarket space
Redefining industry boundaries
Competition
7 pp
Field research
302-057-8 (24pp)
9-794-024
WAL-MART STORES, INC
Bradley, SP
Ghemawat, P
Foley, S
Focuses on the evolution of Wal-Marts
remarkably successful discount
operations and describes the companys
more recent attempts to diversify into
other businesses. The company has
entered the warehouse club industry
with its Sams Clubs and the grocery
business with its Supercenters, a
combination supermarket and discount
store. Wal-Mart experienced a drop in the
value of its stock price in early 1993,
which it still has not made up. Explores
the issue of sustaining competitive
advantage. Wal-Mart has advantages
over its competitors in areas such as
distribution, information technology, and
merchandising, to name a few.
$68 billionrevenues; 1994
Competition
Strategy formulation
Industry structure
22 pp
Published sources
5-395-225 (7pp)
305-308-1
ZARA: RESPONSIVE, HIGHSPEED,
AFFORDABLE FASHION
Kumar, N
Linguri Coughlan, S
In 1975, the first Zara store was opened in
La Coruna, in Northwest Spain. By 2005,
Zaras 723 stores had a selling area of
811,100 m2 and occupied privileged
locations of major cities in 56 countries.
With sales of 3.8 billion euros in financial
year 2004, Zara had become Spains
best-known fashion brand and the
flagship brand of 5.7 billion euros holding
group Inditex. Inditexs stock market
listing in 2001 had turned Amancio
Ortega, its founder and a self-made man,
into the worlds 23rd richest man, with a
personal fortune that Forbes magazine
estimated at US$12.6 billion. Zara strived
to deliver fashion apparel, often
knock-offs of famous designers, at
reasonable costs to young,
fashion-conscious city-dwellers. Zara
used in-house designers to present new
items of clothing to customers twice a
week, in response to sales and fashion
trends. Thus the merchandise of any
particular store was fresh and limited. To
produce at such short notice required
that Zara maintain a vertically integrated
supply chain that distributed the clothes
through a single state-of-the-art
distribution centre. Unlike its
competitors, 70-80%of Zara garments
were manufactured in Europe. In 2005,
Pablo Isla was appointed the newInditex
Chief Executive. With plans to double the
number of its stores by 2009, the rapid
pace of growth was necessitating
changes. First, Zara had opened a second
distribution centre to increase capacity.
Second, expanding into more distant
markets meant that the number of items
carried had increased to 12,000. Would
Zaras business model be able to scale
up? Or would the resulting complexity
compromise its speed advantage? Would
Pablo Isla be able to maintain the focus
that Zara had established?
Global; Retail; 3.8 billioneuros;
1975-2005
Brand management
Newproduct development
Supply chain
Retailing
Vertical integration
Scalability
Business models
Value chain analysis
Outsourcing
Segmentation
Staples vs fashion
Private label
Gross margin return on investment
(GMROI)
Atmospherics
20 pp
Published sources
305-308-8 (21pp)
40
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