ecch the case for learning
best-selling cases
2012 edition
How to use the case bibliography
This bibliographical supplement presents the best-selling cases from the ecch
catalogue during 2011. 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
Reference number
Title
Rarick, CA
Barry University, Florida
Author(s)
Author’s institution
Dan and Melissa Woodruff, an American
couple, moved to Medellin, Colombia
when Dan is offered a position with his.....
Abstract
Colombia; Textiles; 275 employees;
2001
Kidnapped
Colombia
Political risk
9pp
Published sources
404-015-8 (4pp)
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.
Author’s 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.
i
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ii
ecch Case Awards 2012
Overall winner
510-077-1
RENOVA TOILET PAPER: AVANT-GARDE MARKETING IN A
COMMODITIZED CATEGORY
Yakov Bart, Pierre Chandon, Steven Sweldens and Raquel Seabra de Sousa
INSEAD
Economics, Politics and Business Environment
4269
UNITED CEREAL: LORA BRILL’S EUROBRAND CHALLENGE
Christopher A Bartlett and Carole Carlson
Harvard Business School
Entrepreneurship
9B10M067
LOUIS VUITTON IN JAPAN
Justin Paul and Charlotte Feroul
Nagoya University of Commerce & Business / Ivey Publishing
Ethics and Social Responsibility
709-018-1
MARKS & SPENCER: THE BUSINESS CASE FOR PLAN A
Heiko Spitzeck
Cranfield School of Management
Finance, Accounting and Control
109-029-1
MELTDOWN IN ICELAND: BIGGEST CASUALTY OF THE 2008 GLOBAL
FINANCIAL CRISIS
Vandana Guttal and Seshagiri Rao Chaganty
IBS Research Center
Human Resource Management / Organisational Behaviour
410-029-1
SONY CORPORATION – FUTURE TENSE?
Indu Perepu and Vivek Gupta
ICMR Center for Management Research
Knowledge, Information and Communication Systems Management
908-024-1
OFFSHORING AND INNOVATION AT GLOBALCO: NEGOTIATING A
WIN-WIN STRATEGY FOR THE OUTSOURCING RELATIONSHIP
Michael Barrett
Cambridge Judge Business School
Continued overleaf
iii
ecch Case Awards 2012 (continued)
Marketing
9-508-047
DOVE: EVOLUTION OF A BRAND
John Deighton
Harvard Business School
Production and Operations Management
GS65
ZAPPOS.COM: DEVELOPING A SUPPLY CHAIN TO DELIVER WOW!
Michael Marks, Hau Lee and David Hoyt
Stanford Graduate School of Business
Strategy and General Management
310-138-1
A GRAND ENTRANCE? LI NING’S EMERGENCE AS A GLOBAL,
CHINESE BRAND
Johannes Meuer, Barbara Krug, Tao Yue and Lori DiVito
Rotterdam School of Management, Erasmus University
Case writing competition 'Hot topic': Social Media and Change
9-712-434
ONE GAME TO RULE THEM ALL: LORD OF THE RINGS ONLINE AND THE
MMO MARKET
Hanna Halaburda, Ivan Nausieda, Robert McKeon and William Collis
Harvard Business School
Case writing competition: New case writer
11-116
MASSACHUSETTS GENERAL HOSPITAL'S PRE-ADMISSION TESTING AREA
(PATA)
Kelsey McCarty, Massachusetts General Hospital
Jérémie Gallien , London Business School
Retsef Levi, MIT Sloan School of Management
Outstanding contribution to the case method
James A Erskine, Michiel R Leenders and Louise A Mauffette-Leenders
Richard Ivey School of Business
For more information visit www.ecch.com/caseawards
iv
Case method and specialist management disciplines
9-694-046
BARILLA SPA (A)
Hammond, JH
Harvard Business Publishing
Barilla SpA, an Italian manufacturer that
sells to its retailers largely through thirdparty distributors, experienced widely
fluctuating demand patterns from its
distributors during the late 1980s. This
case describes a proposal to address the
problem by implementing a continuous
replenishment program, under which
the responsibility for determining
shipment quantities to the distributors
would shift from the distributors to
Barilla. Describes support and resistance
within Barilla’s different functional areas
and within the distributors Barilla
approached with the proposal.
Italy; 7,000 employees, $2 billion
revenues; 1990
Distribution planning
Order processing
Suppliers
Logistics
21 pp
Field research
5-695-063 (22pp)
United States; $82 million sales revenue;
1990
Cost analysis
Decision making
Pricing strategy
Game theory
Demand analysis
4 pp
Generalised experience
5-191-115 (5pp)
New Jersey; 5,300 employees, $604.4
million revenues; 2002
Innovation
Service management
22 pp
Field research
5-605-031 (26pp)
5-606-031 (30pp)
9-693-013
EURO DISNEY: THE FIRST 100 DAYS
9-673-057
BENIHANA OF TOKYO
Sasser Jr, WE
Klug, JR
Harvard Business Publishing
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)
9-191-058
BEAUREGARD TEXTILE COMPANY
Aguilar, FJ
Harvard Business Publishing
9-603-080
COMMERCE BANK
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 from the competitor’s point
of view. Finally, it poses a prisoner’s
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.
Frei, FX
Hajim, C
Harvard Business Publishing
Taught in the second module of a course
on Managing Service Operations, which
addresses the design of sustainable
service models . Commerce Bank has
become one of the fastest growing banks
in the country, despite having defied
conventional wisdom about how to grow
deposits. Banks historically have grown
either by competing on deposit rates or
through acquisitions that expand their
deposit base. Commerce has the lowest
deposit rates in each of the local markets
it serves and has acquired no other banks,
yet its growth rate is unparalleled. Its
secret? Commerce differentiates itself on
service. Explores the highly refined service
model that guides the design of its
operations and service features and
considers the trade-offs involved in
competing on service.
Schlesinger, L
Loveman, G
Anthony, RN
Harvard Business Publishing
The Walt Disney Co theme parks
historically have thrived on the basis of a
formula stressing excellent customer
service and a magnificent physical
environment. The formula has proven
successful in Japan, as well as the United
States. With the controversial opening of
Euro Disney in France, however, there has
become reason to doubt the
international appeal of the formula. The
case documents issues involved with
Euro Disney. Examines the transferability
of a successful service concept across
international boundaries.
France; 16,000 employees, $1 billion
revenues; 1992
International business
Service management
23 pp
Published sources
5-693-082 (12pp)
9-803-069
FOUR SEASONS GOES TO PARIS: ‘53
PROPERTIES, 24 COUNTRIES, 1
PHILOSOPHY’
Hallowell, R
Knoop, CI
Bowen, D
Harvard Business Publishing
Illustrates how Four Seasons manages
hotels in countries with strong and distinct
national cultures. Focuses on how the
chain meets its exacting service standards
in a variety of settings worldwide, with
special attention on France.
France; 2002
Organizational behavior
Globalization
Human resource management
Case method and specialist management disciplines
Values
Service management
Mexico, Canada, USA; Food and kindred
products; Large
Strategic alliances
Market analysis
Corporate strategy
Developing countries
24 pp
Field research
5-803-173 (9pp)
27 pp
8A96G03 (17pp)
Diverse protagonist, female
Diversity case
Management of service industries
Time series
Diversity
5 pp
Field research
UVA-QA-0389TN (9pp)
9A96G003
LABATT-FEMSA: AMIGOS FOR
GROWTH
UVA-QA-0389
MARRIOTT ROOMS FORECASTING
Fry, JN
Ager, D
Ivey Publishing
This case explores a proposal by Labatt
management to purchase a 22% interest
in a Mexican brewing business and strike
associated agreements for cooperative
activities throughout North America. An
evaluation of the deal requires an
assessment of the prospects of the
venture in the Mexican and US beer
markets, the potential for synergies in the
cooperative activities, and ultimately the
pricing and financing of an investment in
a developing economy. This case is
similar to‘Una Cerveceria Por Favor:
Labatt Buys Into Mexico’, in that it varies
primarily in the time perspective from
which the issues are addressed. Only one
of these cases is necessary in a course.
Bodily, SE
Weatherford, L
Darden Business Publishing
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, how many of the people holding
reservations will show up 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 billion in sales; 1988
Decision theory
Forecasting
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9-688-122
NATIONAL CRANBERRY
COOPERATIVE, 1996
Abridged version
Shapiro, RD
Harvard Business Publishing
Describes the continuous flow process
used to process cranberries into juice and
or sauce. Requires students to analyze
process flows to determine where the
bottlenecks are and to decide how, and
whether, to expand capacity. Original
version written by JG Miller and RP Olson.
Massachusetts; 1980
Co-operatives
Capacity analysis
Process analysis
Process flow
10 pp
Field research
5-677-197 (22pp)
9-683-068
SHOULDICE HOSPITAL LIMITED
Heskett, JL
Harvard Business Publishing
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 wellfocused, well-managed medical service
facility that may well point the way to
future economies in the field.
Ontario; 1982
Organizational behavior
Social enterprise
Market segmentation
Expansion
Quality management
Capacity planning
Word-of-mouth marketing
18 pp
Case method and specialist management disciplines
Field research
5-686-120 (16pp)
9-805-002
SHOULDICE HOSPITAL LIMITED
Abridged version
Hallowell, R
Heskett, JL
Harvard Business Publishing
A hospital specializing in hernia
operations is considering whether and
how to expand the reach of its services.
The teaching purpose is to teach in
service management, management of
operations, and business strategy courses.
Ontario; $12 million revenues; 2004
Organizational behavior
Social enterprise
Expansion
Capacity planning
14 pp
Field research
9-694-023
SOUTHWEST AIRLINES: 1993 (A)
Heskett, JL
Hallowell, R
Harvard Business Publishing
Southwest Airlines, the only major US
airline to be profitable in 1992, makes a
decision as to which of two new cities to
open, or to add a new long-haul route.
Provides windows into Southwest’s
strategy, operations, marketing, and culture.
Texas; 1993
Corporate strategy
Operations research
Service management
29 pp
Field research
9-910-419
SOUTHWEST AIRLINES: IN A
DIFFERENT WORLD
Heskett, JL
Sasser, E
Harvard Business Publishing
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 New York’s LaGuardia
airport, which does not fit the airline’s
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,
Southwest’s Chairman and CEO, Emeritus.
New York, Texas; 35,000 employees, gross
revenue $10 billion; 2008
Operations
Service management
16 pp
Field research
5-910-426 (10pp)
9-601-163
THE RITZ-CARLTON HOTEL COMPANY
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 stock’s 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)
Sucher, SJ
McManus, SE
Harvard Business Publishing
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 billion revenues; 2000
Organizational behavior
Innovation
Change management
Operations management
Human resource management
Brands
30 pp
Field research
5-602-113 (28pp)
UVA-QA-0453
WAITE FIRST SECURITIES
Bodily, SE
Darden Business Publishing
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
Economics, Politics and Business Environment
9-792-060
ACID RAIN: THE SOUTHERN
COMPANY (A)
Reinhardt, FL
Harvard Business Publishing
The Southern Co, an electric utility, is
planning its compliance with the 1990
amendments to the Clean Air Act. The
Act established a system of tradeable
permits for sulfur dioxide emissions. The
company must decide whether to install
pollution control equipment and
generate excess permits for sale to other
firms, or to emit larger quantities of sulfur
dioxide, save capital costs, and purchase
pollution permits. Can be used to teach
discounted cash flow analysis of a make
versus buy decision. Also raises issues of
expected cost minimization, questions of
economic and political uncertainty, and
the value of flexibility.
United States; Electric utilities; Large, $8
billion revenues; 1992
Buy or make decisions
Electric power
Environmental protection
Financial management
Financial planning
Pollution control
Public utilities
Rates of return
7 pp
Field research
5-794-043 (25pp)
9-711-016
ANGOLA AND THE RESOURCE CURSE
Musacchio, A
Werker, E
Schlefer, J
Harvard Business Publishing
Since emerging from decades of conflict
in 2002, Angola has been growing at a
scorching double-digit rate, led by its oil
industry. But the nation remains beset
with seemingly intractable problems:
immense inequality, low life expectancy,
a non-diversified economy, and constant
grumblings of corruption. The global
financial crisis and subsequent fall in
state oil revenue drives a loan-seeking
Angola towards either the IMF, who
demand extensive reforms, or the
Chinese, who seek to take a direct stake
in the nation’s recovery. The case explores
the dynamics of post-conflict recovery as
well as the challenges associated with a
reliance on oil wealth, including the
resource curse and Dutch disease.
China, Angola
Macroeconomics
24 pp
Published sources
9-703-027
BOTSWANA: A DIAMOND IN THE
ROUGH
Alfaro, L
Spar, DL
Dev, V
Allibhoy, F
Harvard Business Publishing
In the years since independence, tiny,
landlocked Botswana has gone from
being one of the world’s poorest nations
to becoming a stable, prosperous state,
blessed with the highest sustained
growth rate in the world. This case
highlights the role that foreign direct
investment (FDI) has played in this
success, as well as how strong local
institutions have helped to harness the
benefits that the foreign investor - here,
the giant De Beers company - has
brought. Also, examines how Botswana
was able to avoid the natural resource
curse that has haunted so many other
resource-abundant countries.
Africa; Natural resources; 1966-2003
Business & government relations
Economic development
Foreign investment
Developing countries
24 pp
Field research
5-703-036 (21pp)
9-201-046
COST OF CAPITAL AT AMERITRADE
Mitchell, M
Stafford, ER
Harvard Business Publishing
Ameritrade Holding Corp is planning
large marketing and technology
investments to improve the company’s
competitive position in deep- discount
brokerage by taking advantage of
emerging economies of scale. In order to
evaluate whether the strategy would
generate sufficient future cash flows to
merit the investment, Joe Ricketts,
chairman and CEO of Ameritrade, would
need an estimate of the project’s cost of
capital. There is considerable
disagreement as to the correct cost of
capital estimate. A research analyst pegs
the cost of capital at 12%, the CFO of
Ameritrade uses 15%, and some
members of Ameritrade management
believe that the borrowing rate of 9% is
the rate by which to discount the future
cash flows expected to result from the
project. There is also disagreement as to
the type of business that Ameritrade is in.
Management insists that Ameritrade is a
brokerage firm, whereas some research
analysts and managers of other online
brokerage firms suggest that Ameritrade
is a technology/Internet firm. A two-day
case to estimate the cost of capital that
Ameritrade should employ in evaluating
the proposed large investments in
marketing and technology. The lesson
plan builds on the prior cases in the Risk
& Return module. Uses the capital asset
pricing model to estimate Ameritrade’s
cost of capital. Focus is on CAPM
variables such as the risk free rate, market
risk premium, and beta. Students will use
regression analysis to directly calculate
the beta estimates. Arguments will be
made as to which comparable firms
(brokerage firms or Internet firms) should
be used to obtain beta estimates.
Omaha, NE; Brokerage; Employees 500,
$77 million revenues; 1997
Capital budgeting
Capital costs
Capital markets
Financial services
Holding companies
Regression analysis
Valuation
24 pp
Field research
5-201-123 (10pp)
9-797-085
ENRON DEVELOPMENT
CORPORATION: THE DABHOL POWER
PROJECT IN MAHARASHTRA, INDIA (A)
Abridged version
Wells, LT
Harvard Business Publishing
A large, lucrative power plant is
negotiated for construction/operation by
an American power company in India’s
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.
Economics, Politics and Business Environment
India; 1992-1995
Business & government relations
Market entry
Energy
Change management
Privatization
Negotiation
15 pp
Field research
9-181-027
FREEMARK ABBEY WINERY
Krasker, WS
Harvard Business Publishing
Freemark Abbey must decide whether to
harvest in view of 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)
9-700-047
HITTING THE WALL: NIKE AND
INTERNATIONAL LABOR PRACTICES
Spar, DL
Burns, JL
Harvard Business Publishing
In the mid-1990s Nike, one of the world’s
most successful footwear companies, is
hit by a spate of alarmingly bad publicity.
After years of high-profile media attention
as the company that can‘just do it’, Nike is
suddenly being portrayed as a firm that
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 a‘fair’or‘living’wage.
United States, Indonesia, Vietnam; 16,000
employees, gross revenue: $9 billion
revenues; 1991-1999
Labor relations
Developing countries
Activists
International operations
Business ethics
Wages & salaries
Working conditions
Business & government relations
23 pp
Published sources
5-701-020 (13pp)
9-704-040
JOURNEY TO SAKHALIN: ROYAL
DUTCH/SHELL IN RUSSIA (A)
Abdelal, R
Harvard Business Publishing
Operations of Royal Dutch/Shell in Russia
included a strategic alliance with
Gazprom, the country’s natural gas
monopoly, the development of the
Salym oil 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 Russia’s
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 country’s tax and
license regimes for the life of the project governs Sakhalin II. Although Sakhalin II’s
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
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Economics, Politics and Business Environment
Energy
Strategic alliances
27 pp
Field research
9-200-007
LONG-TERM CAPITAL MANAGEMENT,
LP (A)
Perold, AF
Harvard Business Publishing
Long-Term Capital 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 - from six
months to two years or more - it adopted
a long - term financing structure
designed to allow it to withstand
short-term market fluctuations. In many
of its trades, the firm was in effect a seller
of liquidity. LTCM generally 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 fund’s positions
were diversified across many markets.
This case is set in September 1997, when,
after three and a half years of high
investment returns, LTCM’s fund capital
had grown to $6.7 billion. Because of the
limitations imposed by available market
liquidity, LTCM was 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
oil platform named‘Brent Spar’in the
North Sea to protest its scheduled
disposal in the Atlantic. This action took
the operator Shell Expro (a joint venture
between Shell and Esso) totally by
surprise, as this was the first protest of
any kind that Shell management had
encountered. The case describes the
reasons why Shell wanted to dispose of
the Brent Spar Platform in the deep sea
and why Greenpeace rejects these plans.
Boston, MA; Investment management;
Employees 133, $31 million revenues;
1994
Higher education
Investment management
Germany, UK, Netherlands; Oil;
Multinational; April 1995
Stakeholder management
Crisis management
Environment
208-014-1
THE NORDIC ECONOMIC MODEL
15 pp
Published sources
IMD-2-0070-T (8pp)
IMD-2-0071
THE BRENT SPAR PLATFORM
CONTROVERSY (B)
Steger, U
Killing, P
Schweinsberg, M
Winter, M
IMD
This is the second of a three-case series.
The protest of Greenpeace against the
deep-sea disposal of the Brent Spar leads
to a major consumer boycott against Shell.
Within weeks, Shell suffered a significant
loss of market share in Central Europe and
faced protests from the highest political
leaders across Europe. Despite all this Shell
continues towing the platform to its
planned disposal site in the Atlantic.
Meanwhile at sea strong fights are taking
place between Shell and Greenpeace.
Germany, UK, Netherlands; Oil;
Multinational; April 1995
Stakeholder management
Crisis management
Environment
13 pp
Published sources
IMD-2-0070-T (8pp)
IMD-2-0070
THE BRENT SPAR PLATFORM
CONTROVERSY (A)
Steger, U
Killing, P
Schweinsberg, M
Winter, M
IMD
This is the first of a three-case series. In
April 1995 Greenpeace boarded a Shell
9-295-024
THE HARVARD MANAGEMENT
COMPANY (1994)
Light, JO
Harvard Business Publishing
Harvard University decides upon the asset
allocation for its endowment, and the
mode in which it should be managed.
21 pp
Field research
George, SS
Govind, S
IBS Center for Management Research
The Nordic economic model,
characterised by market-based
economies and generous welfare
systems, seemed to be working well, with
the countries in the region figuring at the
top of various lists that ranked countries
on the basis of human development, per
capita income, economic freedom, etc.
The case discusses the history of the
Nordic economies over the years. It then
explains the main features of the Nordic
economic model and goes on to examine
some of the reasons behind the global
competitiveness of the Nordic
economies. The case also recounts some
challenges that these countries face as
well as the criticisms of the welfare model
adopted by these countries. The case
ends with a brief discussion on the
outlook for these countries. The teaching
objectives of this case are to: (1)
understand the evolution of Nordic
economies; (2) analyse the reasons
behind the competitiveness of the Nordic
economies; (3) evaluate the sustainability
of the welfare policies adopted by Nordic
economies; and (4) analyse the future of
the Nordic region in the light of
challenges such as aging populations,
globalisation, etc. This case is meant for
MBA / PGDBM students and is designed
to be part of the economics curriculum.
Nordic region; 1950-2007
Nordic economic model
Welfare state
Competitiveness of nations
Government policy
High tax rates and economic
growth
Pension reforms
Aging population
Denmark
Norway
Iceland
Economics, Politics and Business Environment
Sweden
Finland
19 pp
Published sources
208-014-8 (4pp)
4269
UNITED CEREAL: LORA BRILL’S
EUROBRAND CHALLENGE
Bartlett, CA
Carlson, C
Harvard Business Publishing
The case, set within the European
organization of a giant multinational
breakfast foods company, describes a
launch decision for a new cereal product.
As the case evolves, the decision has
major strategic and organizational
implications for Lora Brill, European VP.
The case focuses especially on two
important decisions facing Brill: Should
Healthy Berry Crunch become the
company’s first Eurobrand and be
introduced in a co-ordinated manner
Europewide? And, from an organizational
perspective, should she create Eurobrand
Teams to implement her proposed
Eurobrand concept?
how to 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 from a
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 and buses - US SIC: 371;
Volvo sales in 1999: 125,019 SEK; 2000
Mergers
Abuse of market power
Relevant market
Competition policy
Truck industry
Market share
16 pp
Generalised experience
Europe, West Germany; 2010
Subsidiaries
Organizational structure
Organizational design
Marketing strategy
Market entry
Multinational corporations
Strategy
10 pp
4270 (12pp)
203-006-1
VOLVO-SCANIA: MERGERS AND
COMPETITION POLICY
Traca, D
Strauss-Khan, V
Krinks, P
INSEAD
On March 2000, the European
Commission rejected Volvo’s 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)
Entrepreneurship
065-C00A
COVER-IT
Spinelli, S
Barrows, E
Stringfellow, S
Babson College
The founder of Cover-It, a business that
sells advertising space on free book
covers for high schools, is faced with the
fundamental question of whether to sell
his company when his main competitor
threatens to either squash him or buy
him, just as the company projects a major
improvement in sales and profits. The
case provides a captivating discussion on
the lifestyle, personality and business
techniques of a young entrepreneur who
perseveres in his quest to create his own
successful business. There are more
downs than ups during the company’s
early days. There are multiple examples of
creative resource marshaling, some of
which raise interesting ethical questions.
The owner experiences continuous
rejections from major corporations he is
trying to sell to, poor health and near
poverty before the tide turns and the
biggest business decision of his young
life is on the table.
Boston; Marketing; Start-up to early
growth; 1993-1998
Harvest
Buy-out
Advertising
Marketing
Partners
Resource marshaling
Entrepreneurship
13 pp
Field research
065-T00A (6pp)
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 knew it 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.‘We’ll beat them
on taste, and match them on price.’ But
the three friends’analysis now seemed to
show that if they stuck to those targets
they would struggle to meet a third, no
less crucial, objective.‘If you’re going to
survive you’ll need to hit gross margins of
40 percent - that’s the standard for the
FMCG (fast moving consumer goods)
sector,’ a senior colleague of Wright’s at
Bain, the management consultancy, had
told them early 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 them to
get this business off the ground?
UK; 1998
Entrepreneurship
Business plans
Entrepreneurial finance
Entrepreneurial marketing
20 pp
Field research
807-016-1
FRESH TRADING (A)
807-017-1
FRESH TRADING (B)
Bates, J
Mitchell, J
Rivers, O
London Business School
Bates, J
Mitchell, J
Rivers, O
London Business School
This is the first of a two-case series.‘Could
you turn the light on?’Adam Balon asked
his colleague Jon Wright. Wright, Balon
and their friend Richard Reed had
assembled in Balon’s office at Virgin Cola
to begin drafting the plan for their
business venture, a new brand of fresh
fruit smoothie drinks. It was a typical
English late summer afternoon - heavily
overcast, with the promise of rain. In the
steadily increasing gloom it was
This is the second of a two-case series. It
was early evening in December 1998,
and as the winter rain beat heavily
against the window of his Mayfair office,
Maurice Pinto leafed through a wellthumbed business plan that lay on the
desk before him. Fresh Trading Ltd was
the brainchild of three young
entrepreneurs, Adam Balon, Richard
Reed, and Jon Wright. They planned to
develop, market and distribute
smoothies, a new kind of fresh fruit drink
that had rapidly become extremely
popular in the US. The first UK brand of
smoothies, PJ, also seemed to be
performing well. Pinto had some
reservations about the proposal but had
been impressed by the three men and
had given an undertaking to raise
£235,000 from an angel syndicate to
invest in their business. Although there
were six others in the syndicate it was
Pinto who brought most of the deals to
the table. In the past, the others had
usually followed his lead. Having already
committed to make the investment,
Pinto now faced a dilemma. A number of
his partners had reviewed the business
and come back with a‘no’. Now Pinto was
faced with taking on the entire
investment personally. Should he
proceed with the investment, and on
what terms? Or should he go back to the
team and pull his offer?
UK; 1998
Entrepreneurship
Business plans
Entrepreneurial finance
Entrepreneurial marketing
8 pp
Field research
9-805-019
HOW VENTURE CAPITALISTS
EVALUATE POTENTIAL VENTURE
OPPORTUNITIES
Roberts, MJ
Barley, L
Harvard Business Publishing
Four venture capitalists from leading
Silicon Valley firms are interviewed about
the frameworks they use to evaluate
potential venture opportunities.
Questions include: How do you evaluate
the venture’s prospective business
model? What due diligence do you
conduct? What is the process through
which funding decisions are made? What
financial analyses do you perform? What
role does risk play in your evaluation? and
How do you think about a potential exit
route? Russell Siegelman, partner at
Kleiner Perkins Caufield & Byers; Sonja
Hoel, managing director at Menlo
Ventures; Fred Wang, general partner at
Trinity Ventures; and Robert Simon,
director at Alta Partners, are interviewed.
Silicon Valley; 2004
Financial analysis
Entrepreneurship
Entrepreneurship
Entrepreneurial finance
Risk assessment
Interviews
Business models
19 pp
Field research
5-805-055 (5pp)
Restructuring
Organisational change
17 pp
Published sources
806-057-8 (8pp)
603-C05
JIM POSS
806-057-1
HP’s STRATEGY AND OPERATIONS
UNDER CARLY FIORINA AND MARK
HURD
George, SS
Moganty, S
Regani, S
IBS Center for Management Research
The case discusses the changes Hewlett
Packard Co (HP) underwent under the
leadership of Carly Fiorina, who took over
as the company’s Chief Executive Officer
(CEO) in 1999. It talks about the various
decisions taken by Fiorina, prominent
among them being the company’s
merger with Compaq Computer
Corporation, which was one of the
reasons for its decline towards the early
2000s. The case then talks about the
measures taken by Mark V Hurd, who
replaced Fiorina as the company’s CEO in
March 2005, to improve the financial
conditions of the company. The case also
shows the difference between the
management style adopted by Fiorina
and Hurd in running HP. The teaching
objectives of this case are: (1) to
understand the role of a CEO in running
an information technology company; (2)
to understand the impact of change in
leadership on a company’s strategy; and
(3) to study the impact of change in
leadership style on organisational culture.
This case is meant for MBA / PGDBM
students and is designed to be part of the
leadership curriculum. The teaching note
includes the abstract, teaching objectives
and methodology, assignment questions,
feedback of case discussion and
additional readings and references.
USA; Computers and information
technology; Large; 1999-2006
Carleton S Fiorina
Mark V Hurd
Hewlett Packard (HP) Co
Carly Fiorina
Management style
Celebrity chief executive officer
(CEO)
Compaq Computer Corporation
The HP way
Personal computer market
Bygrave, WD
Hedberg, C
Babson College
Jim Poss’s enterprise, Seahorse Power
Company (SPC), was an engineering
start-up that encouraged the adoption of
environmentally friendly methods of
power generation by designing products
that were cheaper and more efficient
than twentieth-century technologies.
Jim was sure that his first product, a
patent-pending solar-powered trash
compactor, could make a real difference.
After funding the product development
and testing, by May of 2004, the SPC had
a total of six team members. They had all
been given an equity stake in exchange
for their part-time services. Jim was
seeking funding to allow him to take the
business to the next level with a larger
production run with reduced
component costs and increased
production efficiencies. The case
chronicles the evolution of the company
and places Jim at the critical juncture of
deciding how best to deal with potential
investors and funding alternatives.
Entrepreneurship
Fabrication and prototype
development
Financing
Bootstrapping
Raising money
Venture capital and private equity
investors
Start-up and early expansion stage
Solar power
8 pp
Field research
603-T05 (11pp)
9-697-078
JIM SHARPE: EXTRUSION
TECHNOLOGY, INC (A)
Bowen, H
Feinberg, B
Harvard Business Publishing
Deals with lessons learned by Jim Sharpe
in operating small businesses within
large companies in preparation for
owning a small business.
Aluminum industry
Business models
Careers & career planning
Entrepreneurship
Management of change
Operations management
Pricing strategy
Small business
Technology
13 pp
Field research
5-806-175 (4pp)
9-697-079
JIM SHARPE: EXTRUSION
TECHNOLOGY, INC (B)
Bowen, H
Feinberg, B
Harvard Business Publishing
Looks at the small amount of information
that Jim Sharpe has about his new
company and what he must consider as
actions from day one forward.
Aluminum industry
Business models
Careers & career planning
Entrepreneurship
Management of change
Operations management
Pricing strategy
Small business
Technology
17 pp
Field research
5-806-175 (4pp)
9B10M067
LOUIS VUITTON IN JAPAN
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 Vuitton’s most profitable market,
but it seems that the global economic
crisis has resulted in a decline in sales.
Entrepreneurship
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 seem to
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 Vuitton’s
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 new cultural
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.
Japan, France; Leather and leather
products; Large; 2008-2009
International marketing
International business
Strategic management
Brand management
20 pp
Published sources
8B10M67 (8pp)
807-043-1
NEW BARN STUDIOS (A)
Mullins, JW
Grant, A
London Business School
This is the first of a two-case series. It was
1 November 2003, and the New Barn
Studios (NBS) team, led by Richard Duvall,
had reconvened to consider what to do
next. The previous evening it had hosted
a landmark event to which over 60
people had been invited, ranging from
leading bankers and venture capitalists
to retailers and thought leaders, from
think tanks to creative types and
entrepreneurs. The purpose of the event
was to unveil the team’s new world view,
introducing its take on the changing
macro-economic environment and the
technology revolution, coupled with the
emergence of a new consumer segment,
the freeformers, which was challenging
traditional ways of conducting business.
The event had been a great success with
some real buzz generated by the group’s
vision of where the freeformer
phenomenon might lead. Everyone had
found the group’s thoughts provocative.
If the NBS team was right, the trend away
from mass marketing - towards a
consumer culture in which more
individualised market segments of one,
underpinned and enabled by new
technology, were becoming more
important - had huge implications for the
current business infrastructure. It would
create a whole realm of opportunities as
new paradigms of conducting business
emerged. The question for Duvall and his
team was what to do next; grand
concepts were stimulating to talk about,
but exactly what might come of them
now? Duvall kicked off the morning
discussion with a question.‘Each of us
brings our own experience and
perspective to these issues. Shall we each
take a couple of hours and make some
notes to see if we can identify some
specific ideas that we might pursue?’
UK; On-line banking; Start-up; 2003-2004
On-line banking
e-Commerce
Effectual reasoning
Venture capital
Entrepreneurial finance
16 pp
Field research
807-043-8 (7pp)
802-014-1
PHARMA UK (A): THE TRANSDERMAL
TECHNOLOGY
free inspection copies &
instructor materials
Registered, approved educators
can access on-line inspection
copies and instructor materials
(presentations, teaching notes
etc) for free at ecch.com.
Register at www.ecch.com
Birkinshaw, J
London Business School
This is the first of a two-case series. This
case examines the decision by the UK
subsidiary of Pharma (a Swiss
pharmaceutical company) to develop a
new technology for transmitting drugs
through the skin, despite the absence of
support from the parent company’s 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 from HQ, or stop.
UK, Switzerland; Pharmaceutical; Large;
1993-1994
Multinational
Subsidiary
Entrepreneurship
7 pp
Published sources
Entrepreneurship
802-015-1
PHARMA UK (B): PROPOSAL TO THE
EUROPEAN MARKETING BOARD
Birkinshaw, J
London Business School
This is the second of a two-case series.
This case focuses on the European
Marketing Board of Pharma, and the
decision whether to approve
expenditure on the UK’s subsidiary’s
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
Harvard Business Publishing
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.
New York; $3 billion sales; 1984
Capital costs
Entrepreneurship
Development stage enterprises
18 pp
Field research
5-386-160 (4pp)
5-389-029 (6pp)
E322
REVOLUTION FOODS
Grousbeck, HI
Coates, BS
Stanford Business School
In April 2007, Kristin Richmond laced up
her sneakers and began the four mile run
to Kirsten Tobey’s house. It was a
Saturday morning, but the two cofounders of Revolution Foods
(RevFoods), a provider of healthy meals
and nutrition education to schools in
San Francisco and Los Angeles, felt
pressure to finalize a plan for effectively
managing their relationship with Maria
Nunez. Nunez, a sceptical and influential
food service administrator, had been
undermining the RevFoods program at
Green Academy, a charter school in
California’s Bay Area. Richmond and
Tobey believed that if they did not
address the issue now, their contract
with the school could be revoked, an
outcome that could threaten RevFoods’s
standing with other schools. As
Richmond jogged up the last hill before
reaching Tobey’s residence, she
wondered how best to turn their tense
relationship with Nunez into a
productive partnership.
North America
Revolution Foods
Public schools
Coates
Grousbeck
14 pp
Field research
E322TN (3pp)
9-803-096
ZIPCAR: REFINING THE BUSINESS
MODEL
Hart, MM
Roberts, MJ
Stevens, JD
Harvard Business Publishing
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 from the first few months of operations.
Students are called on to analyze the
underlying economics and business model
for the venture and to discover how these
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)
Ethics and Social Responsibility
9-104-071
ACCOUNTING FRAUD AT WORLDCOM
Kaplan, RS
Kiron, D
Harvard Business Publishing
The principal players in WorldCom’s
accounting fraud included CFO Scott
Sullivan, the General Accounting and
Internal Audit departments, external
auditor Arthur Andersen, and the board
of directors. The case provides sufficient
detail to allow for a full discussion of the
pressures that lead executives and
managers to‘cook 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 follow orders that they
know are wrong. Written from the public
record, the case contains numerous
quotes from an individual involved in the
WorldCom fraud that were reported by
the Investigative Committee and Wall
Street Journal articles about several of
the individuals caught up in the situation.
United States; 60,000 employees, gross
revenue: $30 billion revenues; 1999-2002
Organizational behavior
Accounting policies
Accounting procedures
Financial statements
Financial accounting
Auditing
Bankruptcy
Leadership
Corporate governance
Board of directors
Fraud
Business ethics
Organizational culture
18 pp
Published sources
710-030-1
BLUE MONDAY
de Bettignies, HC
Butler, C
China Europe International Business
School
Alex, an expatriate sales director for the
new Chinese subsidiary of a
multinational pharmaceutical company
is concerned about the poor sales figures.
Frustrated with his sales team he tries to
understand why. One of the sales reps,
Anita, speaks openly about the cause of
the company’s failing market share and
explains that local competitors pay
doctors financial kickbacks and that there
is no way around to do business in that
industry in China. Alex knows that this is
against the code of conduct and he has
to take a position to motivate his team.
China; Pharmaceutical; MNC; 2009
Leadership and values
China
Corruption
Change management
Ethics and values
Code of conduct
Kickbacks
Cultural conflict
5 pp
Generalised experience
710-029-1
BP’s CONTINUING SAFETY
PROBLEMS: THE GULF OF MEXICO
CRISIS
Syeda Qumer, M
Purkayastha, D
IBS Center for Management Research
This case is about the Gulf of Mexico oil
spill and the continuing safety
problems at BP, one of the largest oil
and gas producers in the world. The
British oil giant with a history of
repeated safety violations was held
responsible for the oil spill in the Gulf of
Mexico. The spill was caused by an
explosion aboard an offshore drilling rig
leased by BP. Eleven workers were
feared dead and fifteen injured in the
explosion. After the explosion, the rig
sank 5,000 feet to the ocean floor and
since then at least 210,000 gallons of oil
a day have been leaking into the Gulf.
The case describes in detail the
consequences of the oil spill,
considered to be the worst ever
environmental catastrophe in US
history caused by an industrial disaster.
According to experts, the oil spill would
adversely impact the environment as
well as human and marine life in the
Gulf region. The case highlights the
ethical issues involved in the disaster
and examines BP’s response to it.
Though the company accepted
responsibility for the explosion and was
making efforts to manage the oil spill, it
remained largely unsuccessful in
plugging the leak. As efforts to contain
the spill continued, critics alleged that
BP had put profits before safety and
developed an ‘unhealthy corporate
culture’ where cost-cutting was given
more priority than the safety of the
workers. The case will help the students:
(1) study the factors that led to the Gulf
of Mexico oil spill; (2) analyze the
responsibilities of BP in the event of the
spill; (3) understand the importance of
the safety culture and process safety
management; (4) understand the
effects of the oil spill on the company in
particular and the oil industry in
general; and (5) examine the approach
adopted by BP in managing the spill.
This case is meant for MBA/MS students
as part of the business ethics
curriculum. It can also be used in the
operations management curriculum.
The teaching note includes the
abstract, teaching objectives and
methodology, assignment questions,
feedback of case discussion, and
additional readings and references.
US; Petroleum; Very large; 2005-2010
Business ethics
Transnational aspect of the ethics
debate
Multinationals in transnational
accountability
Corporate social responsibility
Corporate accountability
Environmental disaster
Greenwashing
Environmental responsibility
US environmental and safety laws
Process failure
Cultural failure
Management failure
Gulf of Mexico
20 pp
Published sources
710-029-8 (5pp)
709-028-1
COCA-COLA INDIA’S CORPORATE
SOCIAL RESPONSIBILTY STRATEGY
Purkayastha, D
Faheem, H
IBS Center for Management Research
This case is about Coca-Cola’s corporate
social responsibility (CSR) initiatives in
India. It details the activities taken up by
Coca-Cola India’s management and
employees to contribute to the society
and community in which the company
operates. Coca-Cola India being one of
the largest beverage companies in India,
realised that CSR had to be an integral
Ethics and Social Responsibility
part of its corporate agenda. According
to the company, it was aware of the
environmental, social, and economic
impact caused by a business of its scale
and therefore, it had decided to
implement a wide range of initiatives to
improve the quality of life of its
customers, the workforce, and society at
large. However, the company came in for
severe criticism from activists and
environmental experts who charged it
with depleting groundwater resources in
the areas in which its bottling plants were
located, thereby affecting the livelihood
of poor farmers, dumping toxic and
hazardous waste materials near its
bottling facilities, and discharging waste
water into the agricultural lands of
farmers. Moreover, its allegedly unethical
business practices in developing
countries led to it becoming one of the
most boycotted companies in the world.
Notwithstanding the criticisms, the
company continued to champion
various initiatives such as rainwater
harvesting, restoring groundwater
resources, going in for sustainable
packaging and recycling, and serving the
communities where it operated.
Coca-Cola planned to become water
neutral in India by 2009 as part of its
global strategy of achieving water
neutrality. However, criticism against the
company refused to die down. Critics felt
that Coca-Cola was spending millions of
dollars to project a‘green’and
‘environment-friendly’image of itself,
while failing to make any change in its
operations. They said this was an attempt
at greenwashing, as Coca-Cola’s business
practices in India had tarnished its brand
image not only in India but also globally.
The case discusses the likely challenges
for Coca-Cola India as it prepares to
implement its new CSR strategy in the
country. This case is designed to enable
students to: (1) analyse the CSR strategy
adopted by Coca-Cola India; (2)
understand the issues and challenges
faced by Coca-Cola with regard to its
sustainability initiatives in India; (3)
analyse the underlying reasons for the
growing criticism against Coca-Cola in
India, and explore ways in which the
company can address this issue; and (4)
understand the concept of
greenwashing and discuss and debate
whether Coca-Cola is serious about its
water sustainability initiatives.
India; Consumer packaged goods,
beverages; Very large; 2002-2008
Corporate social responsibility
strategy
Environmental responsibility
Economic responsibility
Sustainability
Water sustainability
Water neutral
Water efficiency
pillar growth strategy
Stakeholder tension
Operations
Greenwashing
27 pp
Published sources
709-028-8 (12pp)
706-032-1
COCA-COLA’S BUSINESS PRACTICES:
FACING THE HEAT IN A FEW
COUNTRIES
USA, Colombia, India, Mexico; Beverage
(soft drink); Very large; 2001-2006
The Coca-Cola Company
Business ethics
Corporate social responsibility
(CSR)
University ban
Environment management
Labour practices
Colombia
India
Mexico
Public relations
Communication
Student Union
Trade Union
PepsiCo
22 pp
Published sources
706-032-8 (7pp)
Fernando, R
Tejomoortula, S
IBS Center for Management Research
The case discusses some of the alleged
controversial business and labour
practices of the Coca-Cola Company and
its bottlers in some countries. It discusses
in detail the allegations made against
Coca-Cola’s labour practices in Colombia,
environmental and product issues
pertaining to the company in India, and
its trade practices in Mexico. The case
also highlights the rise in consumer
activism and details the ban imposed on
Coca-Cola’s products by some
universities in the US and in Europe
following pressure from student unions
and other activist organisations.
Coca-Cola’s responses to these
allegations have also been presented.
The case will help the students to: (1)
understand the issues and allegations
faced by Coca-Cola in Colombia, India,
and Mexico; (2) understand the
challenges faced by multi-national
companies due to the rise in consumer
activism; (3) appreciate the importance
of communication and social
responsibility for multi-national
companies that operate across
geographic regions and cultures; and (4)
identify the linkage between operational
issues and brand equity. The case is
meant for MBA/MS students as part of the
business ethics / corporate social
responsibility / international business /
brand management curriculum.
The teaching note includes: (1) the
abstract; (2) teaching objectives and
methodology; (3) questions for discussion
and analysis; (4) case feedback; and (5)
additional readings and references.
JBEE1-1CS1
FROM GRACE TO DISGRACE: THE RISE
AND FALL OF ARTHUR ANDERSEN
Smith, NC
Quirk, M
NeilsonJournals Publishing
In June 2002, Arthur Andersen LLP
became the first accounting firm in
history to be criminally convicted. The
repercussions were immense. From a
position as one of the leading
professional services firms in the world,
with 85,000 staff in 84 countries and
revenues in excess of $9 billion, Andersen
effectively ceased to exist within a matter
of months. Although Andersen’s
conviction related specifically to a charge
of obstructing justice, public attention
focused on the audit relationship
between Andersen and its major client,
Enron Corporation, particularly the
actions (and inactions) that had allowed
Enron to post spectacular year-on-year
earnings and profit growth. As well as
examining events leading up to the
demise of Andersen, the case provides an
opportunity to consider the broader
controversy over accounting and
corporate governance practices and,
more generally, the pressures found
within organisations that can foster
unethical conduct. The case was
prepared from public sources. This case
has been peer reviewed by the editorial
board of the Journal of Business Ethics
Education (JBEE).
Accounting ethics
Auditing
Ethics and Social Responsibility
Conflicts of interest
Normative ethics
Ethical decision making
Corporate governance
Auditor role and responsibilities
24 pp
Published sources
JBEE1-1TN1 (12pp)
9-399-110
GUARANTY TRUST BANK PLC NIGERIA
(A)
Paine, LS
Hogan Jr, HF
Harvard Business Publishing
Fola Adeola, the CEO of Nigeria’s
Guaranty Trust Bank and one of its
founders in 1991, is considering what
should be done to maintain the bank’s
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 Adeola’s concerns is what to do
about employees’insistence on
underpaying their personal income taxes
- a practice he regards as inconsistent
with the bank’s mission of being a role
model for society. A rewritten version of
an earlier case.
Africa, Nigeria; Banking; 600 employees,
$200 million revenues; 1996-1998
Africa
Banking
Business and society
Business conditions
Corporate culture
Corporate responsibility
Developing countries
Ethics
Legal aspects of business
Organizational development
India, Sweden; 90,000 employees, US$1.2
billion revenues; 1995
Crisis management
Publicity
Developing countries
International management
International operations
Business ethics
Social enterprise
Human resource management
Values
Business growth
Outsourcing
Suppliers
Social responsibility
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 company’s 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
how to 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
supplier(s); (3) generating favourable
media publicity via low cost 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 company’s
decision to sell in branches of
McDonalds, what further steps should
the management team take to ensure
that its brand’s reputation survives intact?
708-041-1
INNOCENT DRINKS: VALUES AND
VALUE
Bartlett, CA
Dessain, V
Sjoman, A
Harvard Business Publishing
Soft drinks; 250+ employees; 1998-2008
Sustainability
Small business
Corporate responsibility
Entrepreneurship
Challenger brands
Viral marketing
Brand identity
Sustainability strategy
Corporate values
Entrepreneurs exiting their
business
Brown, R
Grayson, D
Cranfield School of Management
28 pp
Field research
708-041-8 (14pp)
Traces the history of IKEA’s response to a
television (TV) report that its Indian
The first part of this case deals with the
development and testing of a new
business idea - market research, written
15 pp
Field research
9-906-414
IKEA’S GLOBAL SOURCING
CHALLENGE: INDIAN RUGS AND
CHILD LABOR (A)
carpet suppliers were using child labor.
Describes IKEA’s growth, including the
importance of a sourcing strategy based
on its close relationships with suppliers in
developing countries. Details the
development of IKEA’s strong culture and
values that include a commitment‘to
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 grew to encompass a relationship
with Greenpeace and World Wildlife 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 IKEA’s 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
German TV producer who advises her
that he is about to broadcast an
investigative program documenting the
use of child labor in one of the company’s
major suppliers. How should she react to
the crisis? How should the company deal
with the ongoing issue of child labor in
the supply chain?
13 pp
Field research
5-907-407 (17pp)
Ethics and Social Responsibility
709-018-1
MARKS & SPENCER: THE BUSINESS
CASE FOR PLAN A
Spitzeck, H
Cranfield School of Management
Marks & Spencer (M&S) is one of the UK’s
leading retailers, with over 21 million
people visiting M&S stores around the
country every week. On the 15th of
January 2007 The Independent
published an article titled‘M&S to go
carbon neutral in ˙200 million green
initiative’announcing the now famous
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 raw materials; (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&S’s 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
Corporate responsibility
Sustainability
Ethics
Business case
Crisis
Reputation
Business in society
Waste
Supply chain
12 pp
Field research
709-018-8 (10pp)
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 new companies
would contain most of Marriott Corp’s
profitable management operations,
while the other would retain ownership
of its hotel properties as well as most of
its long-term debt.
United States; 202,000 employees, $8.3
billion revenues; 1992
Bonds
Financial strategy
Restructuring
Business ethics
18 pp
Published sources
5-395-188 (23pp)
in 1929 to his receipt of the Nobel Peace
Prize in 1964. It shows how his family
background, his mentors, and his
education in theology and philosophy
helped shape King's dream for black
equality through non-violence. This case
is one in a series illustrating a uses-ofhistory method of‘placing people.’ It may
be used in conjunction with‘Malcolm X’,
which chronicles the life of a
contemporary black leader who sought
similar ends through dissimilar means.
Together, these two cases demonstrate
how placing a person in historical context
deepens one's assessment of him or her
beyond immediate stereotypes.
26 pp
KSG0365.2 (8pp)
706-057-1
PROCTER & GAMBLE PUR PURIFIER
OF WATER (TM) (A): DEVELOPING THE
PRODUCT AND TAKING IT TO MARKET
KSG0365.0
MARTIN LUTHER KING
Billings-Yun, M
Neustadt, RE
Jones, M
John F Kennedy School of Government
This case traces the life of civil rights
leader Martin Luther King from his birth
into a black middle class family in Atlanta
Hanson, M
Powell, K
INSEAD
This is the first of a two-case series.
Procter & Gamble’s (P&G) PuR: Purifier of
Water, a household water treatment sold
in small sachets, was developed by P&G,
case writing competition
The annual ecch Case Awards
include two case writing
competition categories:
• Hot topic:
The Business of Sport
• New case writer:
for a first teaching case.
Submission deadline:
12 October 2012
9-394-085
MARRIOTT CORPORATION (A)
Paine, LS
Nichols III, CA
Harvard Business Publishing
Prize: €, per category
www.ecch.com/casecompetition
Marriott Corp’s chairman and CEO must
decide whether to recommend a
restructuring of the company to the
Ethics and Social Responsibility
in collaboration with the US Centers for
Disease Control (CDC), and targeted
‘bottom of the pyramid’(BOP)
households, where water treatment
facilities are often lacking. The product
was a technological and public health
success, but a commercial market failure
case (A). Internal stakeholders, however,
believed in the effort. They re-positioned
the initiative as a corporate social
responsibility (CSR) venture, and found
support within P&G’s corporate
organisation, where it ultimately became
a centerpiece of P&G’s global CSR
portfolio case (B). The case chronicles the
journey from product development for
the commercial market, to CSRsupported BOP partnerships with the
non-profit sector. A related case is
available, exploring P&G’s social
marketing partnership with the global
NGO (non-governmental organisation),
Population Services International (PSI):
‘Procter & Gamble and Population
Services International (PSI): Social
Marketing for Safe Water’. This case offers
a rich setting in which to explore the
management of CSR initiatives. It
illustrates the challenges and
opportunities that characterise
partnerships between business sector
and public sector actors in the context of
a product development effort targeted at
BOP markets. Unlike many BOP cases,
however, it is not all is sunshine and roses,
as the company fails to meet its initial
goals, in the face of a number of
unexpected challenges. The case
presents the ethical dilemma of a
company’s production of public health
goods, which are not market sustainable.
It discusses the aspirations that
ultimately salvaged the initiative and the
market model adjustments made to keep
the product alive.
Global; Consumer products; 110,000
employees, over 80 countries worldwide;
2000-2005
NGO (non-governmental
organisation)
Water sector
Non-profit
PuR
Social marketing
Bottom of the pyramid (BOP)
Public private partnership (PPP)
Corporate social responsibility
(CSR)
Procter & Gamble (P&G)
24 pp
Published sources
706-057-8 (9pp)
706-043-1
THE WAL-MART SUPPLY CHAIN
CONTROVERSY
Smith, NC
Crawford, RJ
London Business School
Having grown into one of the world’s
largest companies, Wal-Mart has become
the object of attack from many critics.
One of the principal areas of criticism
concerns the manner by which the
company manages its global supply
chain. The case begins with the example
of a lawsuit filed by an activist lawyer on
behalf of a number of plaintiffs from
various countries, which serves to
introduce the supply chain controversy.
As a background, the case examines
Wal-Mart’s business model in some
detail. The case then presents an
overview of the range of issues related to
Wal-Mart’s supply chain policies and
practices. The case concludes with a
description of the ways with which the
company is attempting to respond to its
critics, that is, with particular attention to
its code of conduct as well as its most
recent initiatives in the area. Key
questions for analysis and discussion are:
(1) given its business model, can WalMart change its corporate practices for
the better? (2) does it appear to be doing
the right thing with the various initiatives
it is undertaking? (3) what else might the
company do? and (4) what should it do?
Global; Retailing; Large; 2005-2006
Corporate responsibility
Business ethics
Retailing
Supply chains
Globalisation
Mainstreaming corporate
responsibility
Labour practices
Sweatshops
Environmental impacts
17 pp
Published sources
706-043-8 (4pp)
710-033-1
THE XI-CHEUNG PARTNERSHIP
de Bettignies, HC
Butler, C
China Europe International Business
School
The case describes a Chinese
entrepreneur Xi, who - for financial
reasons - partners with a more
experienced businessman, Cheung. They
open a factory for the manufacture of
textile dyes. The factory faces cost
overruns, low productivity, industrial
accidents and environmental concerns.
When handling these issues, Xi defers to
Cheung’s experience and shrewd
business skills. Not surprisingly, Cheung’s
unprincipled techniques fail and the
business goes bankrupt.
China; Industrial (dye making); Medium;
2002-2005
Business partnership
Values and decision making
Cultural differences
China leadership style
Corporate culture
Environmental concerns
Employee safety
5 pp
Generalised experience
Finance, Accounting and Control
9-197-047
ARCH COMMUNICATIONS GROUP INC
9-102-048
BOREALIS
Palepu, KG
Srinivasan, S
Harvard Business Publishing
Kaplan, RS
Jorgensen, BN
Harvard Business Publishing
The market values Arch differently from
analysts’values. Students are asked to
evaluate the investment potential of
Arch’s stock based on industry
fundamentals and analysts’forecasts.
When Borealis, a European producer of
plastics, used a traditional,
time- consuming budgeting process, the
budget was quickly out of date in a
competitive environment characterized
by continually changing input and
output prices and dynamic market
conditions. This case describes the
process that led Borealis to decide to
replace its budgets with four targeted
management tools: (1) rolling financial
forecasts; (2) Balanced Scorecard; (3)
activity based costing; (4) and investment
management. It also discusses the
process of implementing the new
measurement and control systems.
Communications equipment
Technology
Valuation
Company, stock valuation
28 pp
Published sources
9-292-140
ARUNDEL PARTNERS: THE SEQUEL
PROJECT
Luehrman, TA
Teichner, WA
Harvard Business Publishing
A group of investors is considering
buying the sequel rights for a portfolio of
feature films. They need to determine
how much to offer to pay and how to
structure a contract with one or more
major US film studios. The case contains
cash flow estimates for all major films
released in the United States during
1989. These data are used to generate
estimates of the value of sequel rights
prior to the first film’s release. Designed to
introduce students to real options and
techniques for valuing them. It clearly
illustrates the power of option pricing
techniques for certain types of capital
budgeting problems. Also illustrates the
practical limitations of such techniques.
California; $2.1 billion revenues; 1992
Decision trees
Managing uncertainty
Capital budgeting
Option pricing
Real options
Securities analysis
19 pp
Field research
5-295-118 (14pp)
Denmark; Plastics industry; 2000
Activity based costing
Balanced scorecard
Budgeting
Forecasting
Investment management
9-198-048
CITIBANK: PERFORMANCE
EVALUATION
Simons, RL
Davila, A
Harvard Business Publishing
Citibank has introduced a new,
comprehensive performance-scorecard
system. A regional president struggles
with a tough decision: how to 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
business’s strategy.
United States; 1996
Control systems
Performance appraisals
Performance measurement
Implementing strategy
Incentives
9 pp
Field research
5-199-047 (13pp)
17 pp
Field research
9-187-081
CODMAN & SHURTLEFF, INC:
PLANNING AND CONTROL SYSTEM
9-104-044
CAJA ESPANA: MANAGING THE
BRANCHES TO SELL (A)
Martinez-Jerez, Fd
De Albornoz, R
Harvard Business Publishing
Juan Luis Rojas, Commercial Planning
Manager of a Caja de Ahorros (savings
bank), faces the challenge to motivate
the branches to sell more long-term
mortgages and ponders whether to use
transfer prices to achieve his objective.
Spain; Banking industry; 2,700
employees, 200 million euros; 2003
Branches
Commercial banking
Incentives
Organizational design
Performance measurement
Sales management
Transfer pricing
14 pp
Field research
5-105-020 (16pp)
Simons, RL
Harvard Business Publishing
Detailed description of the planning and
control systems in use at Johnson &
Johnson. Focuses on the actions of
managers in one subsidiary in revising
budget targets. Illustrates intensive
strategic planning and financial planning
process in a large, decentralized
company. Includes interviews with the
president and senior executives
concerning benefits of the system. Raises
issue of the role of formal control systems
in decentralized organizations.
New Jersey, Massachusetts; 75,000
employees; 1986
Planning systems
Control systems
Budgeting
Strategic planning
Decentralization
17 pp
Field research
5-188-029 (9pp)
Finance, Accounting and Control
9-200-069
DEBT POLICY AT UST INC
Mitchell, M
Harvard Business Publishing
UST, Inc is a very profitable smokeless
tobacco firm with low debt compared to
other firms in the tobacco industry. The
setting for the case is UST’s recent
decision to substantially alter its debt
policy by borrowing $1 billion to finance
its stock repurchase program.
dividend in several days despite a 47year streak of consecutive dividend
increases. In response to the
deregulation of the electric utility
industry, FPL has substantially revised its
competitive strategy over the past
several years. The analyst must decide
whether a change in dividend policy will
be a part of FPL’s financial strategy in this
deregulated environment.
Connecticut; 4,765 employees, gross
revenue: $1.4 billion revenues; 1999
Capital structure
Debt management
Long term financing
Taxation
Florida; 12,400 employees, $5.3 billion
revenues; 1994
Dividends
Financial strategy
Securities analysis
Deregulation
Electric power
Corporate strategy
14 pp
Published sources
5-201-002 (11pp)
17 pp
Published sources
5-296-072 (21pp)
9-295-059
DIVIDEND POLICY AT FPL GROUP, INC
(A)
Esty, B
Schreiber, CF
Harvard Business Publishing
A Wall Street analyst has just learned that
FPL (the holding company for Florida’s
largest electric utility) may cut its
9A95B029
LAURENTIAN BAKERIES
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.
ecch case awards 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
Renova Toilet Paper: Avant-garde
Marketing in a Commoditized
Category
Yakov Bart, Pierre Chandon,
Steven Sweldens and Raquel
Seabra de Sousa
INSEAD
(See page for abstract)
Students will have to understand the
process review for capital allocation in
this large corporation in order to make
their recommendation, as well as
complete a discounted cash flow.
Canada; Food and kindred products;
Large; 1995
Capital budgeting
Planning
14 pp
Field research
8A95B29 (9pp)
9-298-101
MARRIOTT CORPORATION: THE COST
OF CAPITAL
Ruback, RS
Harvard Business Publishing
Presents recommendations for hurdle
rates of Marriott’s divisions to select by
discounting appropriate cash flows by the
appropriate hurdle rate for each division.
1988
Cash flow
Capital costs
Capital structure
Valuation
11 pp
Field research
5-289-048 (20pp)
UVA-F-1353
NIKE, INC: COST OF CAPITAL
Bruner, RF
Chan, J
Darden Business Publishing
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 the‘mistakes’in the
analysis, which are designed to highlight
conceptual issues regarding WACC and
its components that are often
misunderstood by students.
US; Investment management; 2001
Cost of capital
Investment analysis
Valuation
www.ecch.com/caseawards
8 pp
Published sources
UVA-F-1353TN (5pp)
Finance, Accounting and Control
9-298-166
NOTE ON ALTERNATIVE METHODS
FOR ESTIMATING TERMINAL VALUE
Note
Clausen, H
Gollish, D
Koggersbol, N
INSEAD
Fruhan Jr, WE
Harvard Business Publishing
In October 1990, the Boeing company
announced that it was lauching a new
aircraft model, the 777. The task for
students in this case is to evaluate the
777 against a financial standard. The
students must estimate a weighted
average cost of capital (WACC) with
which to evaluate the project IRRs. The
general objective of this case is to
exercise students’skills in estimating a
weighted-average cost of capital and
cost of equity. The need for students to
estimate a segment WACC draws out
students’abilities to critique different
estimates of beta.
Reviews basic techniques for estimating
terminal value in the valuation of
businesses. Among the techniques
discussed are perpetuities, growing
perpetuities, use of multiples, and
liquidation value. A rewritten version of
an earlier note.
Present value
Cash flow
Forecasting
Valuation
8 pp
Published sources
9-191-006
SIEMENS ELECTRIC MOTOR WORKS (A)
Abridged version
Cooper, R
Wruck, KH
Harvard Business Publishing
Explores how a cost system can help
support a firm’s 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 from mass production
of specialty motors to the production of
small lots of custom motors. In doing so,
they found their old cost system led them
to poor decision making. By switching to
a simple activity-based system, more
accurate product costs were computed,
facilitating better divisional performance.
Germany; Light manufacturing; Large,
$400 million DM; 1988
Activity based costing
Cost accounting
Cost allocation
Cost systems
Germany
Strategy implementation
7 pp
Field research
294-009-1
THE BOEING 777
USA; Aircraft manufacture, Boeing; Large;
1990
Cost of capital
Capital budgeting
New product
27 pp
Generalised experience
294-009-8 (13pp)
9-101-092
WILKERSON COMPANY
Kaplan, RS
Harvard Business Publishing
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 organization’s
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
Generalised experience
5-104-002 (14pp)
Bruner, RF
Christey, P
Human Resource Management / Organisational Behaviour
ESMT-409-0100-1
‘DO YOU REALLY THINK WE ARE SO
STUPID?’: A LETTER TO THE CEO OF
DEUTSCHE TELEKOM (A)
Korotov, K
Mueller, U
Schaefer, U
ESMT European School of
Management and Technology
This is the first of a three-case series. This
three-part case-study illustrates key
concepts and lessons about leading
adaptive change in organisations in the
context of turning around Deutsche
Telekom, one of the world’s largest
telecommunication companies. The case
portrays some of the efforts undertaken
by Deutsche Telekom under the
leadership of Rene Obermann after his
ascent to the CEO position in that
organisation. The case illustrates the
challenges associated with resistance to
adaptive change, management of
expectations of organisational members
from their leaders, and the psychological
challenges of leading necessary, but
unpopular, change efforts under the
conditions of pressure from
organisational stakeholders, who
consciously or unconsciously attempt to
divert the change-oriented leader from
pushing the organisation forward. The
case serves as fruitful ground for
exploration of the theory of adaptive
change as put forward by Heifetz &
Linsky (2002), Heifetz, Grashow, & Linsky
(2009a, 2009b), discussion of the dangers
of leading (Heifetz & Linsky, 2002), and
psychological challenges of leading (Kets
de Vries, Korotov, & Florent-Treacy, 2007).
Germany; ICT (information and
communications technologies); 250,000
employees; 2007-2008
Adaptive change
Role of leadership
Communication of change
Resistance of change
Leadership and public relations
Change leadership
14 pp
Published sources
ESMT-409-0100-8 (13pp)
409-008-1
LEADING ACROSS CULTURES AT
MICHELIN (A)
Meyer, E
Gupta, S
INSEAD
This is the first of a three-case series.
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.
United States; 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)
409-009-1
LEADING ACROSS CULTURES AT
MICHELIN (B)
Meyer, E
Gupta, S
INSEAD
This is the second of a three-case series.
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.
United States; Tyres
Cross-cultural
Intercultural / inter-cultural
Multicultural / multi-cultural
Performance feedback
National culture
Leadership
Global leadership
International human resources
4 pp
Field research
409-008-8 (18pp)
409-010-1
LEADING ACROSS CULTURES AT
MICHELIN (C)
Meyer, E
Gupta, S
INSEAD
This is the third of a three-case series. 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.
United States; Tyres
Cross-cultural
Intercultural / inter-cultural
Multicultural / multi-cultural
Performance feedback
National culture
Leadership
Global leadership
International human resources
4 pp
Field research
Human Resource Management / Organisational Behaviour
499-021-1
LINCOLN ELECTRIC IN CHINA
Galunic, C
Bjorkman, I
INSEAD
This case looks at how Lincoln 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 company’s 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)
401-029-1
MANAGING A NEW STATE-OWNED
ENTERPRISE: A DARING EXPERIMENT
BY THE BEIJING CAPITAL GROUP
Chan, S
Ho, M
Wong, G
Asia Case Research Centre, The
University of Hong Kong
The Beijing Capital Group was one of the
most profitable and successful stateowned enterprises (SOEs) in China. Since
its foundation, the Group had been
making unrelenting efforts in promoting
reform, improving capital operation and
capitalising on the advantages of the
Group in terms of operational scale. All
these had helped it achieve success. The
employee turnover rate was low as the
staff had a sense of pride in being part of
a successful firm. For the immediate
future, however, the market environment
was expected to be increasingly tough.
Some of the important issues that the
President of the Group had to deal with
included how to sustain growth and
remain competitive following China’s
expected accession to the World Trade
Organisation. Given the structural and
institutional constraints inherited from
the socialist tradition, it was not easy for
the Group to overcome all the limits of
the system. At this point, the President
wondered whether he could find a way
to reform the Group’s human resources
system within the limits set by the state.
This case explores the human resources
practices in a socialist economy. It
demonstrates how a SOE in China
modified its human resources practices
in order to adapt to a market economy.
The case also allows for a discussion of
how human resources practices can
serve as a driving force for change in
business and management practices.
China; State-owned enterprise; 1995-2000
Human resources practices in a
socialist economy
funds at the firm, but many believed that
typical hedge fund manager pay (20% of
the upside) would harm the MFS culture,
which glorified‘star performance but not
star egos’. Describes the MFS
compensation philosophy and plan
(including the plan’s emphasis on
subjective compensation), the types of
people it attracted, the resulting culture,
and how the senior management team
approached the hedge funds question.
Includes side discussion on firm-specific
human capital. The teaching purpose is
to analyze the design of compensation
plans and the incentives created by a
plan emphasizing subjective
performance evaluations.
Compensation
Incentives
Investment management
Performance measurement
Portfolio management
13 pp
401-029-8 (6pp)
9-902-132
MASSACHUSETTS FINANCIAL
SERVICES
Lim, J
Hall, B
Harvard Business Publishing
Describes the compensation and
performance evaluations at an
investment management company. The
senior management team of
Massachusetts Financial Services (MFS)
Investment Management was
contemplating an introduction of hedge
26 pp
Field research
5-902-196 (21pp)
9-405-063
MESSIER’S REIGN AT VIVENDI
UNIVERSAL
Khurana, R
Beyersdorfer, D
Dessain, V
Harvard Business Publishing
free cases
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
Human Resource Management / Organisational Behaviour
Focuses on a crisis in the board at
Vivendi. Highlights the difficulties that
arise when dramatic pressure from
outside the boardroom affects
boardroom dynamics. In this case, there
are two events. The first is an
unexpectedly large financial loss and a
pending cash flow crisis that forces
Vivendi’s directors to deal with the issue
of dismissing their CEO (chief executive
officer). Whatever they decide, their
actions will be scrutinized by the press
and investors and will likely be revisited
in a legal environment. The second is
the board diagnosing its role in the
financial crisis by approving a series of
costly acquisitions in recent years that
led to the crisis.
France; 41,264 employees, 25.5 million
euros revenues; 1994-2002
Crisis management
Leadership
Corporate governance
28 pp
Published sources
5-407-098 (11pp)
9-400-087
REBIRTH OF THE SWISS WATCH
INDUSTRY - 1980-92 (A)
Tushman, M
Radov, DB
Harvard Business Publishing
The Swiss watch industry has been
devastated by new entrants from Asia 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 new strategy and structure for
the two Swiss giants, ASUAG and SSIH,
which have decided to merge. Ernst
Thomke, Managing Director of ASUAG’s
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 new company.
Topics to address include the
management of change and the
formulation of a detailed action plan to
make the new company succeed.
15,000 employees; $1 billion revenues;
1980-1983
Management of change
Organizational structure
Product development
Strategy implementation
Switzerland
Technological change
14 pp
Published sources
408-083-1
RICHARD MURPHY AND THE BISCUIT
COMPANY (A)
Jarrett, M
Ingram, K
London Business School
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 how traditions, 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; Food retail; 2,000 employees; 2002-2006
Change management
Resistance to change
Organisational politics
Stakeholder management
Organisational networks
Managing your boss
Influencing others
Organisational renewal
13 pp
Field research
408-083-8 (7pp)
9-498-054
ROB PARSON AT MORGAN STANLEY
(A)
Burton, MD
Harvard Business Publishing
Rob Parson was a star producer in
Morgan Stanley’s Capital Markets
division. He had been recruited from a
competitor the prior year and had
generated substantial revenues since
joining the firm. Unfortunately, Parson’s
reviews from the 360-degree
performance evaluation process revealed
that he was having difficulty adapting to
the firm’s culture. His Manager, Paul Nasr,
faces the difficult decision of whether to
promote Parson to Managing Director.
Nasr must also complete Parson’s
performance evaluation summary and
conduct Parson’s performance review.
2,000 employees, $1 billion revenues; 1995
Organizational behavior
Performance appraisals
Personal strategy & style
Employee promotions
Employee retention
Organizational culture
-degree feedback
Relationship management
16 pp
Field research
5-400-101 (18pp)
HR6A
SAS INSTITUTE (A): A DIFFERENT
APPROACH TO INCENTIVES AND
PEOPLE MANAGEMENT PRACTICES IN
THE SOFTWARE INDUSTRY
Pfeffer, J
Stanford Business School
The SAS Institute is a large, growing
software company headquartered in the
Research Triangle 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 phantom stock and not paying its
salespeople on commission. The CEO
and Vice President of Human Resources
must decide how well their current
management practices will continue to
serve them as the company gains greater
visibility and faces an increasingly
competitive labor market.
North Carolina; Software; 5,000
employees, $750 million annual gross
revenues; 1997
Incentives
Corporate culture
Human resources management
Management philosophy
Human Resource Management / Organisational Behaviour
Computer software
Organizational behaviour
17 pp
Field research
HR1A
SOUTHWEST AIRLINES (A)
O’Reilly III, CA
Pfeffer, J
Stanford Business School
In 1994 both United Airlines and
Continental Airlines launched low cost
airlines within an airline, to compete with
Southwest Airlines. From 1991 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 United States; Airlines; 12,000
employees, $2.2 billion revenues; 1994
Human resources management
Strategy
Strategy implementation
Organizational behavior
27 pp
Field research
401-020-1
THE COLLAPSE OF BARINGS (A): THE
EVENTS
Soane, E
Nicholson, N
Audia, PG
London Business School
This is the first of a two-case series. In
1995 Barings, one of Britain’s 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. Leeson’s
use of a secret account which enabled
him to hide his huge trading losses from
his managers was a key factor in his
successful deception. Despite mounting
concern about Leeson’s 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 Singapore’s
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 Leeson’s
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.
behavior impacts Brodsky’s poor
performance. This case is a modernized
revision of the popular case Wolfgang
Keller at Konigsbrau-Hellas.
Europe; US$100 million sales
Superior & subordinate
Management styles
Leadership
Performance appraisals
Human resource management
18 pp
Field research
5-400-069 (20pp)
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
WOLFGANG KELLER AT
KONIGSBRAU-TAK (A)
Gabarro, JJ
Harvard Business Publishing
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 from Keller.
Furthermore, Brodsky’s 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 review and how his own
Knowledge, Information and Communication Systems Management
9-801-199
ADOBE SYSTEMS, INCORPORATED
Tripsas, MP
Harvard Business Publishing
Examines Adobe’s battle with Microsoft
to establish de facto standards in the
emerging eBook space.
California; 2000
Information technology
Standardization
Applications
29 pp
Field research
5-801-375 (13pp)
9-710-467
APPLE INC IN 2010
Yoffie, DB
Kim, R
Harvard Business Publishing
On 4 April 2010, Apple Inc launched the
iPad, the company’s third major
innovation released over the last decade
under its iconic CEO Steve Jobs. Apple’s
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
below 5%. Growth in iPod sales was
slowing down. iPhone faced increasing
competition in the smartphone industry.
And would Apple’s 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)
SI-0167-E
APPLE’S IPHONE: CALLING EUROPE
OR EUROPE CALLING?
Sieber, S
Valor, J
Mitchell, J
IESE Business School
Apple needs little introduction. After the
launch of the highly successful iPod in
2001, Apple has been on an aggressive
growth path (revenues have increased
by a compound annual growth rate
(CAGR) of 31% and net income surged
ahead at a CAGR of 128%). In 2007,
Apple declared that they would once
again change yet another industry mobile telephony - with the iPhone. The
iPhone was heralded as an immediate
success in the US, selling one million
units in a record 74 days (the iPod took
two years to reach the million unit
mark). Apart from the high sales and the
positive technological reviews, what
surprised many was the revenue sharing
model that Apple had negotiated with
mobile carriers, who had traditionally
not given up a part of their subscription
revenues to handset manufacturers. The
case is set as of 9 November 2007 on the
morning that the iPhone is released in
the UK with Telefonica’s O2. Students
must determine whether the deal will
prove advantageous to Telefonica’s O2
and the longer-term effects on the
industry structure.
United Kingdom; 2007
Industry analysis
Technological change
International expansion
Innovation
Information systems
Competitive advantage
26 pp
Generalised experience
SIT-0013-E (11pp)
9-301-099
CISCO SYSTEMS ARCHITECTURE: ERP
AND WEB-ENABLED IT
Nolan, RL
Porter, K
Akers, C
Harvard Business Publishing
In a seven-year process, Cisco built its
strategic I-Net. Beginning in 1994, Cisco
completely replaced its back-office legacy
systems. At that time, the company
standardized Internet protocols. In
addition, the company shifted strategic
focus from IT back-office applications to
front-office applications. After ERP
(enterprise resource planning), the
company spent the next two years
electronically connecting with customers.
A rewritten version of two earlier cases. A
consolidated version of the Cisco Systems
ERP and Cisco Systems Web-enablement
cases. Designed to be taught in one class
session (if two class sessions are available,
it is recommended that Cisco ERP
Systems be used for one session followed
by Cisco Systems Web-enablement).
California; 2000-2001
Technological change
Information technology
ERP
23 pp
Field research
5-301-143 (15pp)
5-301-145 (3pp)
9-399-150
GE’S TWO-DECADE
TRANSFORMATION: JACK WELCH’S
LEADERSHIP
Bartlett, CA
Harvard Business Publishing
GE is faced with Jack Welch’s impending
retirement and whether anyone can
sustain the blistering pace of change and
growth characteristic of the Welch era.
After briefly describing GE’s heritage and
Welch’s transformation of the company’s
business portfolio of the 1980s, the case
chronicles Welch’s revitalization initiatives
through the late 1980s and 1990s. It
focuses on six of Welch’s major change
programs: The‘Software’Initiatives,
Globalization, Redefining Leadership,
Stretch Objectives, Service Business
Development, and Six Sigma Quality.
United States; 293,000 employees, Gross
revenue: $100 billion revenues; 1981-1998
Leadership
Change management
Organizational development
Business policy
Executives
Organizational culture
Corporate strategy
Organizational change
Conglomerates
Implementing strategy
24 pp
Published sources
5-300-019 (16pp)
9B10E011
GOOGLE IN CHINA (B)
Compeau, D
Fang, Y
Yin, M
Ivey Publishing
The case describes the circumstances
surrounding Google’s reconsideration of
its China strategy. Google officially
Knowledge, Information and Communication Systems Management
announced in January 2010 that its
Chinese website, Google.cn, experienced
cyber attacks from within China. Google
further announced that, as a result, it had
decided to reconsider its approach to
China, including the option of a
complete exit from the Chinese market.
The case presents Google’s performance
in China, the details of the cyber attack
and the heated public discussion
following Google’s announcement.
Students are asked to consider actions
that Google should take and the
corresponding, underlying rationale.
United States, China; Miscellaneous
services; Medium; 2010
Ethical issues
Management in a global
environment
Information systems
Government and business
11 pp
Published sources
8B10E11 (6pp)
909-018-1
KNOWLEDGE MANAGEMENT
INITIATIVES AT IBM
Gupta, V
Perepu, I
Govind, S
IBS Center for Management Research
This case examines the knowledge
management (KM) practices at IBM. The
company’s KM initiatives 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
system to determine compensation.
IBM’s 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 KM at IBM
was communities of practice, which were
self-organised communities, through
which employees with similar job
functions and interests came together.
IBM used several tools like K Portal, ICM
AssetWeb, On Demand Workplace, Blue
Pages, Collaboration Forums, to capture,
share and manage knowledge. The case
concludes by examining the challenges
IBM faced in its KM journey. 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
IBM to 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.
The teaching note includes: (1) the
abstract; (2) the teaching objectives and
methodology; (3) assignment questions;
(4) feedback of the case discussion; and
(5) additional readings and references.
USA; Information technology; Very large;
1994-2009
IBM
Knowledge management
Learning organisation
Information sharing
Wikis
Intellectual Capital Management
Programme
Communities of practice
K Portal
ICM AssetWeb
On demand Workplace
Blue Pages
Collaboration Forums
Knowledge networks
Knowledge café
Knowledge cockpit
21 pp
Published sources
909-018-8 (4pp)
907-024-1
LASTMINUTE.COM
Aga, S
Buhalis, D
Faculty for Business, Economics and
Law, University of Surrey
Tourism requires accurate, timely and
comprehensive information, often for
places that are thousands of miles apart.
The Internet facilitates these
communications. The Internet has
changed the structure of tourism and
travel, by enabling organisations to use
dynamic mechanisms to reach
customers efficiently and cost effectively.
It has become a virtual market place for
both tourists and travel companies.
Therefore, the Internet opened a new
business world for travel and tourism
industries facilitated by e-Business /
e-Tourism and e-Trade. The Internet
brought two conflicting trends in the
marketplace. On the one side
disintermediation, where suppliers could
go directly to the consumers and on the
other side re-intermediation, where new
intermediaries emerged to support
transactions in cyberspace. This case
study celebrates one of the most well
known Internet companies,
Lastminute.com. In 1998, Hoberman and
Lane Fox created Lastminute.com as a
unique and different travel website
lifestyle portal. They realised the future
benefits of the Internet for the tourism
and leisure industries. They launched
their Lastminute.com website as a
mechanism to distribute distressed travel
inventory to consumers that would like
instant response to their needs rather
than plan their holidays months in
advance. In seven years, they achieved
incredible success and growth. However,
it was not enough to survive in the
competitive travel industry. The
competitors in the travel industry were
strong and powerful in terms of the
financial and global perspective.
Fourteen acquisitions helped gain scale
and presence as well as differentiating
Lastminute.com from its competitors,
thereby building an enviable market and
customer base. Travelocity saw the
uniqueness of Lastminute.com and
bought the company with its entire
network of acquired business. After
combining Travelocity and
Lastminute.com a number of markets,
technological and cultural challenges
emerged. Nevertheless the combined
Travelocity / Lastminute.com will be
gaining a more powerful place in the
European travel market.
Tourism
Intermediation
Strategic marketing
31 pp
Field research
907-024-8 (12pp)
9-991-021
MERCK & CO, INC (A)
Hanson, KO
Bollier, D
Weiss, S
Harvard Business Publishing
Knowledge, Information and Communication Systems Management
Researchers at Merck & Co. believe that a
drug they had developed for animals
might be an effective treatment for
human river blindness, a debilitating
illness that affects hundreds of thousands
of poor people in the Third World. The
process of development and testing,
however, will be enormously costly.
Should the company devote critical
resources to developing the drug,
knowing that, even if it were medically
successful, it would yield little financial
return? The case presents background on
economic and scientific constraints that
shape the pharmaceutical industry. It
provides a framework for discussing
ethical aspects of product innovation
and the risks and benefits of investments
in research. It may be used in Strategic
Management, Business and Society, and
Ethics courses.
New Jersey; Pharmaceuticals
Business ethics
Health
Management philosophy
Management styles
Social enterprise
Social responsibility
5 pp
908-024-1
OFFSHORING AND INNOVATION AT
GLOBALCO: NEGOTIATING A WIN-WIN
STRATEGY FOR THE OUTSOURCING
RELATIONSHIP
Partnership
Competitive advantage
10 pp
Field research
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, North America; Telecoms; 60,000
employees; Mid-1990s to mid-2000s
Offshoring
Innovation
Outsourcing relationship
Negotiations
9A98E036
OHIO POLYMER 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 Polymer’s senior management is
looking for advice on how much gas they
should try to obtain and what price they
should be willing to pay.
USA; Chemicals and allied products;
Large;
Simulation
Negotiation
Manufacturing capacity
Spreadsheet application
6 pp
Published sources
8A98E36 (5pp)
910-003-1
OPEN SOURCE INNOVATION AT
MOZILLA CORPORATION
case method training
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for further details.
Gupta, V
Prasad, VN
IBS Center for Management Research
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
Knowledge, Information and Communication Systems Management
manage open source projects; and (3)
recognize the nuances of marketing
open source software products. This case
is designed for MBA / PGDBM students
and is meant for the knowledge,
information and communication systems
curriculum. The teaching note includes
the abstract, teaching objectives and
methodology, assignment questions,
feedback of the case discussion, and
additional readings and references.
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)
904-020-1
QUADREM: E-PROCUREMENT FOR
THE MINING INDUSTRY
Koen, K
Townsend, S
Wits Business School - University of the
Witwatersrand
By 2003, Quadrem, a global
e-marketplace that facilitated electronic
transactions between buyers and suppliers
from the mining, metals and minerals
industry, was in its third year of operation.
While some of the regions such as North
America, Australasia and South Africa
managed to operate profitably on a
regional level, Quadrem as a whole was not
yet profitable mainly because of its high
fixed centralised costs. The shareholders
however, expected Quadrem to break even
by the end of the second quarter in 2004.
The case study revolves around Quadrem
Africa, based in South Africa, and its
dilemma to increase its growth to help
Quadrem break even globally.
South Africa; Mining; Medium; 2003
e-Commerce
e-Procurement
Internet strategy
25 pp
Field research
9B05E019
RJ THOMPSON DATA SYSTEMS, INC
Schatzberg, L
Ivey Publishing
RJ Thompson Data Systems sells,
implements and maintains management
information systems. The president of the
company receives a call from a potential
client to demonstrate a system that they
had rejected earlier. The company would
benefit from a large sale, however, the
president reflects on the experience from
the last presentation to this company; RJ
Thompson Data Systems spent
considerable time preparing the
presentation, only to be treated poorly
and to have the offer rejected. He must
decide if he should rally the team again.
Canada; Business services; Small; 2005
Enterprise resource planning
Management information systems
Computer system implementation
Customer relations
6 pp
Field research
8B05E19 (5pp)
9-904-060
STRATEGY AND POSITIONING IN
PROFESSIONAL SERVICE FIRMS
Nanda, A
Harvard Business Publishing
This case provides a definition of strategy,
distinguishes between corporate and
practice strategy, and discusses how and
why developing and implementing
strategy for professional service firms is
different from developing and
implementing strategy for commercial
firms. The case discusses how practice
strategy involves positioning the practice
on a spectrum of services and aligning
the organization and its professionals to
the position. Practices are subjected
continuously to forces that move their
positioning. To be successful, practices
must dynamically reposition or realign
themselves. The case concludes with a
discussion of the corporate strategy
challenges facing multipractice
professional service firms.
Professional, scientific & technical
services
Business policy
Corporate strategy
Leadership
Strategy formulation
13 pp
Marketing
9-599-110
ANALYZING CONSUMER
PERCEPTIONS
Note
Dolan, RJ
Harvard Business Publishing
Describes the perceptual mapping
techniques in a non-technical fashion.
The procedure is useful for the depiction
of the structure of the market. Discusses
alternative methods, presents examples
of each, and shows how the maps can be
used in marketing decision making.
Market research
Consumer behavior
Consumers
Market structure
13 pp
Published sources
9-502-030
AQUALISA QUARTZ: SIMPLY A
BETTER SHOWER
Moon, Y
Herman, K
Harvard Business Publishing
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 from both
consumers and plumbers alike. However,
early sales of the Quartz have been
disappointing. Rawlinson is now faced
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.
9-504-048
BURBERRY
Moon, Y
Herman, K
Kussmann, E
Penick, E
Wojewoda, S
Harvard Business Publishing
In 2003, Rose Marie Bravo, Burberry’s CEO
is debating how to 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 new product categories to
enter; (2) how to deal with the
appropriation of the brand by nontarget
customers; and (3) how prominent the
company’s famed‘check’pattern should
be in its advertising and clothing.
United Kingdom; Fashion; 2003
Advertising
Market positioning
Market segmentation
Marketing strategy
Target markets
Process analysis
Brand management
20 pp
Field research
5-505-007 (18pp)
9-508-047
DOVE: EVOLUTION OF A BRAND
Deighton, J
Harvard Business Publishing
United Kingdom; £8 million revenue; 2001
Consumer behavior
Consumer marketing
Marketing channels
Marketing strategy
Market entry
Market positioning
Product positioning
Product development
Product introduction
Examines the evolution of Dove from
functional brand to a brand with a point
of view after Unilever designated it as a
masterbrand, and expanded it’s portfolio
to cover entries into a number of sectors
beyond the original bath soap category.
The development causes the brand
team to take a fresh look at the cliches of
the beauty industry. The result is the
controversial Real Beauty campaign.
As the campaign unfolds, Unilever learns
to use the Internet, and particularly
social network media like YouTube, to
manage controversy.
18 pp
Field research
5-503-058 (23pp)
United States; $50 billion revenues; 2007
Networking
Marketing
Internet
Branding
13 pp
Field research
510-015-1
FORD FIESTA MOVEMENT: USING
SOCIAL MEDIA AND VIRAL
MARKETING TO LAUNCH FORD’S
GLOBAL CAR IN THE UNITED STATES
Stephen, AT
INSEAD
The Ford Fiesta movement was a social
media campaign run by Ford in the US
during 2009 to generate buzz for the
upcoming launch of the 2011 Fiesta
sub-compact car. This case examines the
campaign’s performance and asks what
marketers should do there after to
convert interested consumers into
buyers. The case can be used as an
introduction to social media and viral
marketing as tools for launching new
products, specifically, to: (1) discuss
appropriateness of different criteria for
evaluating campaign performance; and
(2) consider what marketers should do
after a campaign to leverage the brand
awareness generated and convert sales.
Motor vehicles and passenger car bodies;
2009-2010
Social media
Viral marketing
Buzz marketing
Ford Motor Company
New products
Twitter
Facebook
Word of mouth
12 pp
Published sources
503-082-1
FORD KA: THE MARKET RESEARCH
PROBLEM (A)
Christen, M
Soberman, D
Chung, SW
Cothier, G
INSEAD
This is the first of a three-case series. In
response to changes in the European
small car market and the success of the
Renault Twingo, Ford decided to launch a
new small car, the Ford Ka. Before Gilles
Moynier can get to the specifics of the
Marketing
marketing strategy to launch the Ford Ka,
he needs to decide how to segment the
market and who to target. The market
research firm has conducted a series of
studies among potential small car buyers
and now the 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 unique‘hands
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
503-082-8 (21pp)
9-599-078
GOING TO MARKET Note
Dolan, RJ
Harvard Business Publishing
Describes the major issues in deciding
how to reach the market.
Covers issues of channel design and
channel management.
Marketing channels
Marketing management
10 pp
Published sources
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 salesman’s 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)
9-598-061
NOTE ON MARKETING STRATEGY
Note
Dolan, RJ
Harvard Business Publishing
Describes the major elements of
marketing strategy: the decisions to be
made and the underlying analysis to
support that decision making.
Decision making
Marketing strategy
17 pp
Published sources
9-505-038
PRODUCT TEAM CIALIS: GETTING
READY TO MARKET
Ofek, E
Harvard Business Publishing
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
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 Cialis’s
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)
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IMD-5-0395
MEDIQUIP SA (R)
Kashani, K
IMD
Marketing
505-098-1
RED BULL: THE ANTI-BRAND BRAND
Kumar, N
Tavassoli, N
Linguri Coughlan, S
London Business School
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 Bull’s 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
Generation Y-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 like‘liquid 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
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 them promoted 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 mainstream approach
fundamentally destroy Red Bull’s
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
RENOVA TOILET PAPER: AVANTGARDE MARKETING IN A
COMMODITIZED CATEGORY
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 grow and remain
independent, CEO Paulo Pereira da Silva
is considering three options: (1) private
label manufacturing; (2) new functional
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 how Renova 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: DELIVERING CUSTOMER
SERVICE
Moon, Y
Quelch, JA
Harvard Business Publishing
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-ofservice. However, the impact of the plan
(which would cost $40 million annually)
on the company’s bottom line is unclear.
United States; 60,000 employees, gross
revenue: $3.3 billion revenues; 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
INTIMACY WITH A KEY CUSTOMER
Kashani, K
Shaner, J
IMD
This is the first of a four-case series. The (A)
case of this series describes a failed
attempt to sell new packaging machinery
to a key Italian customer facing declining
sales and profits in its milk business. Tetra
Pak’s analysis leads them to propose a new
product strategy that is summarily rejected
by the customer. The case raises the issue
of Tetra Pak’s strategy in the Italian milk
market and the wisdom of its proposed
customer strategy. The broader question is
whether the company is serving the best
interest of its key accounts.
Italy and international markets;
Packaging systems; 7 billion euros, 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
Marketing
Field research
IMD-5-0604-T (44pp)
504-009-1
UNILEVER IN BRAZIL (1997-2007):
MARKETING STRATEGIES FOR LOWINCOME 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 from its premium brands 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
new brand; and (3) what price, product,
promotion, and distribution strategy
would allow Unilever to deliver value to
low-income consumers without
cannibalising its own premium brands
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 and personal care; US$56
billion; 1996-2004
Marketing
Branding
Low-income consumers
Poverty
New product introduction
Break-even analysis
Advertising
Pricing
23 pp
Field research
504-009-8 (34pp)
Production and Operations Management
UVA-OM-0836
BEAU TIES LTD OF VERMONT
Weiss, EN
Shepherd, S
Darden Business Publishing
Bill Kenerson, the owner-operator of a
retail bow-tie business, faces two
decisions. The first is whether to bring
production of bow ties in-house. The
second concerns his telephone-orderentry system. Students must calculate
the capacity of the production facility
and determine the appropriate staffing
plan for telephone operators.
Middlebury,VT;Retail;$0.75-1.0million;1996
Capacity planning
Entrepreneurship
Make, buy, or lease
Queuing
Small business
Waiting-line analysis
Agency management
Diverse protagonist
12 pp
Field research
UVA-OM-0836TN (1pp)
600-003-1
DRAGONFLY: DEVELOPING A
PROPOSAL FOR AN UNINHABITED
AERIAL VEHICLE (UAV)
Loch, CH
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) how to focus
improvement efforts.
UK; Aerospace; 1999
9 pp
Published sources
600-003-8 (23pp)
GS3A
HEWLETT-PACKARD CO: DESKJET
PRINTER SUPPLY CHAIN (A)
Kopczak, LR
Lee, HL
Stanford Business School
This case describes a challenge facing
Hewlett-Packard’s (HP) Vancouver
Division in 1990. Although its new inkjet
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
GS3B
HEWLETT-PACKARD COMPANY:
DESKJET PRINTER SUPPLY CHAIN (B)
SUPPLEMENT
Kopczak, LR
Lee, HL
Stanford Business School
Supplements the (A) case.
case development
scholarships
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 €,
and the student attends an ecch
case writing workshop at no charge.
Find out more at
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Global supply chain
2 pp
Field research
606-012-1
IDEO: SERVICE DESIGN (A)
Sosa, ME
Bhavnani, R
INSEAD
This is the first of a two-case series. This
case describes how IDEO adapts its
famed innovation process (developed to
design new products) to the
particularities of services and their
design. The case series describes four
service design projects to show how
IDEO has developed and codified a series
of design methods, which constitute a
toolbox from which teams can pick and
choose depending on the innovation
project. The case study aims to: (1)
Production and Operations Management
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 IDEO methods 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+ em ployees; 1999-2005
Innovation management
New product and service
development
Brainstorming
Prototyping
Knowledge brokering
23 pp
Field research
606-012-8 (15pp)
602-010-1
MARKS & SPENCER AND ZARA:
PROCESS COMPETITION IN THE
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 from Spain, which has
innovated in process design so as to
deliver new collections 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&S’s 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
Operations management
Supply chain
Retail apparel
Delayed customisation
Time-based competition
Newsboy model
Innovation
17 pp
Published sources
602-010-8 (37pp)
UVA-OM-1022
OCEANCOVE
Ramdas, K
Leong, J
Darden Business Publishing
Rakesh Gupta sits in his new office at
Nariman Point, Mumbai contemplating
the future of OceanCove, which in the
last two years has grown from a single
seafood restaurant to a chain of five
restaurants. Aware that aggressive
expansion is planned in 2002 and
worried about the recent proliferation of
moderately expensive restaurants
serving international cuisine in India,
Gunta must consider a proposal to
increase the size of the existing
restaurants from 120 seats to 160 seats.
His immediate concern is whether
accepting this proposal will necessitate
changing OceanCove’s operating
processes. The case is accompanied by a
queuing simulation of the restaurant
operation, implemented in Flash.
Students can observe Little’s Law in
action and develop intuition about the
operational impact of a change in
demand or a change in processing rates
within the restaurant.
Process analysis
Little’s Law
12 pp
Published sources
UVA-OM-1022TN (14pp)
608-038-1
PIONEERING HEALTHY 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, how it has developed its site
choice policy, how customers 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 quality.
UK, Europe; Restaurant, food service; £50
million turnover; June 2007-2008
Operations strategy
Process profiling
Customer analysis
Quality management
Capacity
30 pp
Field research
608-038-8 (12pp)
OSA1
RED BRAND CANNERS
Wilson, RB
Stanford Business School
Presents a simple example of a
production planning problem amenable
to analysis using linear programming.
California; Canning; 1965
Production planning
4 pp
Generalised experience
UVA-OM-0661
SILKO-SCALESE MACHINING
CORPORATION
Weiss, EN
Gursahaney, NK
Darden Business Publishing
Alan Silko must decide whether to invest in
seven statistical-process-control (SPC)
Production and Operations Management
stations in order to increase his chances of
becoming a‘select supplier’for a large
computer company. The student must do
a discounted-cash-flow/decision-tree
analysis of the option. The student is also
given the opportunity to construct x-bar
and range charts and to do an SPC analysis.
Baltimore,MD;Machining;$1.6million;1989
Decision making
Investment analysis
Process management
Quality
Statistics
Supplier relations
10 pp
Field research
UVA-OM-0661TN (9pp)
9-602-096
STORE24 (A): MANAGING EMPLOYEE
RETENTION
Frei, FX
Campbell, D
Harvard Business Publishing
Used as part of the third module of a
course on Managing Service Operations,
which addresses how managers can
inform their decisions with customer
data. Provides a retailing context in which
employee retention strategies are
explored through analyzing detailed
store-level data.
United States; 800 employees,
$84,767,816 revenues; 2000-2001
Employee retention
Service management
5 pp
Field research
5-606-036 (11pp)
5-606-107 (35pp)
UVA-OM-1351
SUPPLY-CHAIN MANAGEMENT AT
W’UP BOTTLERY (A)
Ramdas, K
Darden Business Publishing
At the W’Up Bottlery in Uttar Pradesh,
India, Rajat Mehra, Director of
supply-chain management, mused over
the W’Up plant’s supply-chain
performance over the peak summer
period that had just ended. The W’Up
Bottlery, which was a wholly-owned
subsidiary of Hindustan Coca-Cola
Beverages Private Limited (HCCBPL),
made Coca-Cola and other soft drinks for
several regions within the Uttar Pradesh
market. While inventories had gone
down and fill rates had improved relative
to the previous peak-sales season, Mehra
was looking for ways to improve
performance dramatically. Mehra had
heard about the concept of vendormanaged inventory (VMI) that was
gaining popularity in the West.
Implementing VMI would involve
moving away from the current situation
in which independent distributors
placed orders for replenishment to the
W’Up plant, to one in which distributors
would instead report their inventory
levels directly to the W’Up supply-chain
management group. Managers in this
group would then decide how much
stock to send out to each distributor.
Mehra and his team wondered how this
idea might be applied to HCCBPL’s highly
fragmented supply chain, covering
regions where IT infrastructure was
sparse or non-existent.
Supply chain
11 pp
Published sources
9-692-011
TOMBOW PENCIL CO LTD
Mishina, K
Harvard Business Publishing
Tombow Pencil Co Ltd, one of Japan’s
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 company’s new
president and grandson of the founder,
must evaluate the performance of
Tombow’s 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; Writing instruments; Midsize, employees 600, $116 million
revenues; 1991
Japan
Product lines
Production controls
Suppliers
Vertical integration
19 pp
Field research
5-693-027 (23pp)
9-693-019
TOYOTA MOTOR MANUFACTURING,
USA, INC
Mishina, K
Harvard Business Publishing
On 1 May 1992, Doug Friesen, Manager
of assembly for Toyota’s Georgetown,
Kentucky, plant, faces a problem with the
seats installed in the plant’s sole product
- Camrys. A growing number of cars are
sitting off-line with defective seats or are
missing them entirely. 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 Toyota’s
famed production system (TPS), Friesen is
determined that, if possible, the situation
will be resolved using TPS principles and
tools. Students are asked to suggest what
action(s) Friesen should take and to
analyze whether Georgetown’s current
handling of the seat problem fits within
the TPS philosophy.
Kentucky; 4,000 employees, $1-5 billion
revenues; 1992
International operations
Process analysis
Quality control
Production controls
Suppliers
22 pp
Field research
5-693-046 (25pp)
603-002-1
ZARA
Ferdows, K
Georgetown University
Domiguez Machuca, JA
University of Sevilla
Lewis, M
Warwick Business School
Production and Operations Management
The case offers an illustration of a fastresponse 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, MBA’s and
undergraduate business students. It can
be used in a remarkably wide range of
courses - from a 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. The
teaching note includes several
photographs from Zara’s operations in La
Coruna, and the appendices are available
as PowerPoint files as the teaching note
supplement. This case was the winner of
the 2003 Indiana University Center for
International Business Education and
Research (CIBER)-sponsored Production
and Operations Management Society
(POMS) International Case Competition.
This case was sponsored by the Indiana
University CIBER Case Collection.
Spain and global; Fashion apparel; Large
multinational; 2002
Global supply chain
Design-product-distribution-retail
integration
Fast-response networks
Fashion retailing
Queuing and inventory models
Manufacturing-marketing interface
Time-based competition
Mechanising
15 pp
Field research
603-002-8 (21pp)
Strategy and General Management
9-796-128
AFRICAN COMMUNICATIONS GROUP
McGahan, A
Coxe, DO
Harvard Business Publishing
Describes the opportunities that
confront the African Communications
Group, an entrepreneurial organization
that plans to introduce a wireless
pay-phone system in Tanzania. Provides a
foundation for the analysis of value
creation and of value capture. The
possibility of entry by other companies,
the presence of a large supplier, and
uncertainties about demand all create
important tradeoffs for the new venture.
Used in an advanced course in
competition and strategy to introduce a
framework for evaluating a new business
based on existing technologies. Principal
concepts include value creation and
capture, competitor analysis, supplier
evaluation, and financial forecasting.
Africa
Competition
Decision analysis
Entrepreneurship
Industry structure
Telecommunications
20 pp
Field research
5-797-029 (29pp)
301-078-1
CEMEX IN ASIA
Williamson, P
Butler, C
INSEAD
The case is set in the context of the
restructuring of the cement industry in
SE Asia, post-crisis. Western cement
giants had long had ambitions to gain a
foothold in this highly profitable
industry as part of their globalisation
strategy. The 1997 currency crisis gave
them the opening they had been
waiting for, and the case describes the
battle waged by Cemex and its
competitors to acquire these assets. The
case describes the acquisition strategy
of a western global company put into
practice in SE Asia. It allows discussion
on the acquisition process, from the
initial setting of attractive investment
targets, through research, negotiation
to due diligence, and post-merger
integration. It also gives an overview of
the wider competitive context.
SE Asia, Mexico; Cement; 1998
Cement industry
Re-structuring
Mergers and acquisitions
Globalisation
Industry consolidation
Competitive analysis
26 pp
Field research
IMD-3-0873
EASYJET: THE WEB’S FAVOURITE
AIRLINE
Kumar, N
Rogers, B
IMD
Stelios Haji-Ioannou, the 32-year-old Chief
Executive Officer and founder of easyJet
airlines, achieved profitability for the first
time in 1999, almost 4 years after
launching his London-based low cost
carrier. The concept behind easyJet was
‘to offer low cost airline service to the
masses’, and the airline accomplished this
by adopting an efficiency-driven
operating model, creating brand
awareness, and maintaining high levels of
customer satisfaction. A key issue in the
case is whether the airline will continue to
grow and survive in the highly
competitive low cost segment of the
market. In 2000, Stelios was anxious to try
his hand at launching other businesses,
so he started a chain of Internet cafes.
Some questioned whether Stelios would
be able to successfully transfer his low
cost business model to Internet cafes.
Undeterred, Stelios moved ahead with his
plan to create easyEverything, with the
belief that he could make a profit by
encouraging customers to surf the
Internet, send e-mail and shop on-line.
Instructors should note that‘easyJet’is the
first case in a series that includes
‘easyEverything: The Internet Shop’ and
‘www.easyrentacar. com’.
Europe; Airline; 1,000 employees, US$125
million turnover; 2000
Marketing strategy
Industry analysis
Service management
22 pp
Field research
IMD-3-0873-T (19pp)
301-056-1
FORMULA ONE CONSTRUCTORS:
COMBINED CASE
Jenkins, M
Cranfield School of Management
This is a revised and combined version of
the Formula One Constructors case
series. This case is used to address the
issues of achieving competitive
advantage in a highly competitive,
technological and international context.
The introduction outlines the
competitive nature of Formula 1 and the
fact that this is an industry of
sophisticated multi-million pound
organisations competing at the highest
international level. The case then focuses
on a constructor who achieved sustained
competitive advantage in a particular
period. The case is used to illustrate a
number of principles relating to the
resource-based view of strategy, such as
defining sources of competitive
advantage; the problems of imitation
and appropriation of key resources; and
the idiosyncratic and path-dependent
nature of sources of advantage.
Global; Motorsport, Formula One; Large;
1950-2003
Sustained competitive advantage
Resource based view
Core competence
Distinctive capabilities
Strategy
Formula F
16 pp
Field research
399-001-8 (8pp)
9-910-036
GOOGLE INC
Edelman, B
Eisenmann, TR
Harvard Business Publishing
Describes Google’s history, business
model, governance structure, corporate
culture, and processes for managing
innovation. Reviews Google’s recent
strategic initiatives and the threats they
pose to Yahoo, Microsoft, and others.
Asks what Google should do next. One
option is to stay focused on the
company’s core competence, ie,
developing superior search solutions and
monetizing them through targeted
advertising. Another option is to branch
into new arenas, for example, build
Google into a portal like Yahoo or MSN;
Strategy and General Management
extend Google’s role in e-commerce
beyond search, to encompass a more
active role as an intermediary (like eBay)
facilitating transactions; or challenge
Microsoft’s position on the PC desktop by
developing software to compete with
Office and Windows.
20,100 employees, $22 billion revenue; 2010
Business models
Corporate governance
Corporate strategy
Entrepreneurship
Competition
Network effects
Search engines
21 pp
Published sources
5-910-050 (28pp)
9-384-049
HONDA (A)
Christiansen, ET
Pascale, RT
Harvard Business Publishing
Describes the history of Honda Motor
Company from its beginning through its
entry into and subsequent dominance of
the US market. The history is explained
primarily in terms of strategic factors and
quoted from two sources: an earlier case
and Boston Consulting Group report on
the motorcycle industry. Should be used
with Honda (B).
United States, 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)
Christiansen, ET
Pascale, RT
Harvard Business Publishing
(A) and (B) are designed to be used
together to contrast two differing views
of major events in a company’s history,
both of which are important for a general
manager to understand.
United States, Japan; 1948-1974
Management styles
Change management
Business policy
Corporate strategy
United States; 20,000 employees, $2
billion revenues; 1996-1997
Competition
Internet
19 pp
Published sources
5-798-119 (15pp)
9-396-357
MCKINSEY & COMPANY: MANAGING
KNOWLEDGE AND LEARNING
9 pp
Field research
5-386-034 (7pp)
5-704-022 (27pp)
Bartlett, CA
Harvard Business Publishing
9-798-063
LEADERSHIP ONLINE (A): BARNES &
NOBLE VS AMAZON.COM
Ghemawat, P
Baird, B
Harvard Business Publishing
Describes the attempt of a traditional
retailer, Barnes & Noble, to counter the
challenges posed by an Internet-based
start-up, Amazon.com.
This case is accompanied by a Video
Short for Premium Educators to show in
class. To watch the video or display to
students, click on the video icon.
Describes the development of McKinsey
& Co as a worldwide management
consulting firm from 1926 to 1996. In
particular, it focuses on the way in which
McKinsey has developed structures,
systems, processes, and practices to
help it develop, transfer, and
disseminate knowledge among its 3,800
consultants in 69 offices worldwide.
Concludes by focusing on three young
consultants operating in each
dimension of the firm’s organization the local office, the industry practice,
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Describes the history of Honda Motor
Company from its beginning through its
entry into and subsequent dominance of
the US market as seen through the eyes
of Honda executives. The history of
Honda’s successful entry into the US
market is viewed as highly adaptive and
fraught with error and serendipity. Honda
Strategy and General Management
and the firm’s competence center.
Managing director, Rajat Gupta,
wonders if the changes he has made are
sufficient to maintain the firm’s vital
knowledge development process.
6,000 employees, $1.8 billion revenues; 1996
Innovation
Business policy
Knowledge management
Knowledge transfer
Managing professionals
Multinational corporations
20 pp
Field research
5-398-065 (16pp)
IMD-3-1335
NESTLÉ’S GLOBE PROGRAM (B): JULY
EXECUTIVE BOARD MEETING
Killing, P
IMD
This is the second of a three-case series.
This short case continues the GLOBE story
and is intended as an in-class handout to
be used during the discussion of the (A)
case. It documents some of the
GLOBE-related discussion at Nestlé’s July
2000 Executive Board meeting, which
raises fresh issues for Chris.
Global; Food and beverage; Large; 2000
Change management
2 pp
Field research
IMD-3-1334-T (13pp)
IMD-3-1336
NESTLÉ’S GLOBE PROGRAM (C):
‘GLOBE DAY’
Killing, P
IMD
This is the third of a three-case series. This
final case in the GLOBE series is set
approximately 18 months after the Bcase. The setting is a meeting of Nestlé’s
market heads who are participating in a
daylong event to bring them up to date
on the progress of GLOBE. The morning
has been difficult for Chris Johnson - full
of criticism - and the question is how he
should handle the afternoon.
Global; Food and beverage; Large; 2001
Change management
4 pp
Field research
309-038-1
STRATEGIC LEADERSHIP AND
INNOVATION AT APPLE INC
Heracleous, L
Papachroni, A
Warwick Business School
This case begins by describing Apple’s
near bankruptcy during the 1990s, and its
remarkable turnaround under Steve Jobs
since 1997. The competitive landscape in
the PC industry is outlined and Apple’s
key strategic decisions during the 1990s,
including Jobs’key strategic actions to
accomplish Apple’s turnaround are
noted. Apple’s culture, approach to
strategic human resource management,
and innovative capacity are explored,
including Apple’s approach of‘deep
collaboration’. A key strategic issue noted
in the case is Apple’s strategy of
maintaining a proprietary, integrated
system of 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 Apple’s strategic challenges
during 2009. The teaching objectives for
this case are: (1) understand industry
structure and how an 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 how it 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 billion revenues; 1985-2009
Strategic leadership
Strategic innovation
Strategic alignment
Industry analysis
Strategic thinking
Corporate governance
25 pp
Published sources
309-038-8 (17pp)
307-149-1
THE BATTLE FOR MARKS & SPENCER:
SIR PHILIP GREEN’S UNSUCCESSFUL
TAKEOVER ATTEMPT
Moeller, S
Prodan, M
Cass Business School
Developed in co-operation with UKbased retailer Marks & Spencer and
containing quotes and information
directly from Stuart Rose, the Chief
Executive Officer of Marks & Spencer, this
case looks at the build-up to the
unsuccessful hostile takeover attempt by
Sir Philip Green in 2004. This case is
organised chronologically and sets out
the principal tactics used by both Green
on the bidder side and Rose for the
successful defence. Financial and
shareholder information for Marks &
Spencer is also provided. The case ends
with the withdrawal of Green’s hostile
bid. It is designed to be used in a mergers
and acquisitions or corporate finance
class at the post-graduate (MSc or MBA)
level. A teaching note is available which
discusses each of the offensive and
defensive tactics and their success. The
teaching note also includes suggestions
for use in the classroom.
United Kingdom; Retail; £8 billion; 2004
Mergers and acquisitions
Takeover
Hostile bid
Defence (Defense)
Philip Green
Stuart Rose
Marks & Spencer (Marks and
Spencer)
Retail
Advisors
Lawyers
Arcadia
Investment banking
15 pp
Field research
307-149-8 (11pp)
302-057-1
THE EVOLUTION OF THE CIRCUS
INDUSTRY (A)
Kim, WC
Mauborgne, R
Bensaou, BM
Williamson, M
INSEAD
This is the first of a two-case series.
Cirque du Soleil very successfully
entered a structurally unattractive circus
Strategy and General Management
industry. It was able to reinvent the
industry and created a new market
space by challenging the conventional
assumptions about how to compete. It
value innovated by shifting the buyer
group from children (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 new set 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 new market
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 new
market space.
about the proper boundaries of the firm,
and about what Disney’s strategy should
be beyond 2001.
United States; Entertainment industry;
110,000 employees, $25.4 billion
revenues; 1923-2000
Competitive advantage
Corporate strategy
Diversification
Strategy formulation
Strategy implementation
27 pp
Published sources
5-705-495 (12pp)
Canada, USA, Europe; Circus; 2001
Circus and live entertainment
industry
Value innovation
Strategy
Blue Ocean Strategy
Creating new market space
Redefining industry boundaries
Competition
7 pp
Field research
302-057-8 (24pp)
9-701-035
THE WALT DISNEY COMPANY: THE
ENTERTAINMENT KING
Rukstad, MG
Collis, DJ
Levine, T
Harvard Business Publishing
The first ten pages of this case are
comprised of the company’s history, from
1923 to 2001. The Walt years are
described, as is the company’s decline
after his death and its resurgence under
Eisner. The last five pages are devoted to
Eisner’s strategic challenges in 2001: (1)
managing synergy; (2) managing the
brand; and (3) managing creativity.
Students are asked to think about the
keys to Disney’s mid-1980s turnaround,
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