Management Communication Case Studies

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Management Communication Case Studies
Baby’s Dream Furniture: A Small Company Faces Negative Media Attention
Cox, C.; Dixit, R.; Kuch, S.; and O’Rourke, J. S. (Editor)
Baby’s Dream Furniture is a small family owned and operated baby’s furniture company. The
company is known for its personal touch and strives to become part of the family by designing
high quality baby’s furniture. Baby’s Dream was thrust into the public spotlight after a local news
report stated that high levels of formaldehyde were found in their products. After further
investigation, there was a conflict of interest between the testing lab, Air Quality Sciences
(AQS), and the industry independent regulatory agency, GREENGUARD. With an angry
customer base and a declining public image, Baby’s Dream leadership must form a
comprehensive corporate communication strategy to satisfy multiple issues and stakeholders. 8
pp. Case #10-06
Motorola, Inc: Smartphones and the Android OS
Anderson, S.; Gilardi, J.; Sennett, M.; Westerhaus, J.; and O’Rourke J. S. (Editor)
Motorola, the producer of some of the most popular phones on the market, has recently fallen in
the public estimation. With their last success hailing back to 2004, the company hinges on its
newest product, the Android smartphone. With the right outlook and communication, could it be
the company's savior? 13 pp. Case # 10-05
The Management Communication case studies listed here are the copyrighted property of the Eugene D. Fanning
Center for Business Communication, Mendoza College of Business, University of Notre Dame. They are the
product of primary personal interviews and field research, as well as secondary library and data base research.
These cases are available for purchase directly from the Fanning Center. Each includes a Teaching Note and MS
PowerPoint presentation file. For additional information telephone 574.631.8397 or fax 574.631.5255. E-mail:
jorourke@nd.edu Visit the Fanning Center website at www.nd.edu/~fanning/cases for pricing and shipping details.
Kraft Foods: Krafting the Deal for Cadbury
Hsia, S.; Coyle, A.; Brummett, D; and O’Rourke, J.S. (Editor)
During a tumultuous time that began at the end of 2009, Perry Yateman of Kraft Foods led her
corporate communication team through two multi-billion dollar deals, including the hostile
takeover attempt of the iconic British brand Cadbury. The complexities of managing two crosscultural deals, while Jim Cramer places your CEO on his “Wall of Shame” and the world’s bestknown investor, Warren Buffett, releases personal statements against a possible merger, could
water down your message and take focus away from the main audience, the shareholders.
13 pp. Case #10-04
Google’s New Strategy in China: Principled Philosophy or Business Savvy?
Hayes, R.; Trezise, G.; Walther, N.; and O’Rourke, J. S. (Editor)
On January 12, 2010, Google posted a message on its Official Blog announcing that the company
would no longer cooperate with the Chinese government’s demands for limited censorship of
Internet searches on its Google.cn portal and that it may withdraw from the Chinese market
entirely. Has Google reversed its corporate position following its controversial 2006 entry into
the country? How do Google’s actions reconcile with its corporate motto, “Don’t Be Evil?”
What are the implications for Google’s future profitability? 10 pp. Case #10-03
Facebook: The Evolution of Privacy?
Desharnais, Y.; Jagadeesh, N.; and O’Rourke, J. S. (Editor)
On December 1st, 2009, Facebook CEO Mark Zuckerberg announced sweeping changes to the
site’s privacy controls. The result was strong criticism from advocacy groups, but general
ambivalence from end users. The question for Facebook is how to manage these different
stakeholders and remain at the forefront of society’s privacy norms. 8 pp. Case #10-02
Whole Foods Market: A CEO’s Public Opinion at Odds With a Key Demographic
Imtiaz, T.; Ji, J.; Mitchell, A.; and O’Rourke, J. S. (Editor)
In August of 2009, the founder and CEO of the successful natural & organic food company
Whole Foods Market published an op-ed in the Wall Street Journal espousing a position on the
highly contested health care debate that many perceived to be at odds with the company’s core
customer. In the midst of a slow news month, the media seized on the apparent contradiction,
and many diverse interests used the ensuing attention to further their own agendas.
13 pp. Case # 10-01
2
Domino’s “Special” Delivery: Going Viral Through Social Media
Peeples, A.; Vaughn, C.; and O’Rourke, J.S. (Editor)
On April 13, 2009, Tim McIntyre, VP of Corporate Communications at Domino’s Pizza,
received notification of the existence of a number of damaging videos that had been posted
online. The videos showed Domino’s employees taking inappropriate and illegal actions while
preparing food that was allegedly being served to customers. McIntyre knew that amateur videos
filmed in one store could seriously damage the entire Domino’s brand, not to mention put the
company at legal risk. The question for McIntyre is how to ensure that Domino’s responds in the
best way possible to mitigate the negative impact of this social media crisis. (A) Case, 9 pp. (B)
Case, 9 pp. Case #09-13. (2009)
Satyam Computer Services Ltd.: Accounting Fraud in India
Barton, M.; Bhutta, P.; and O’Rourke, J.S. (Editor)
On January 7, 2009, Ramalinga Raju resigned as chairman of Satyam Computer Services. This
resignation came as a result of the largest corporate fraud in India’s history. Questions remain for
Satyam executives about the company’s survival, as well as the reputational effect on
PriceWaterhouseCoopers offices in India. 12 pp. Case #09-12. (2009)
Nestlé Purina PetCare: Your Pet, Our Poison
Exten, L.; Gimenez, P.; Steinberg, J.; and O’Rourke, J.S. (Editor)
The pet food poisoning scare of 2007, in which numerous pet food products were contaminated
with melamine sourced from China, seriously damaged many of the afflicted firms’ reputations
for safety and customer concern. Pet food industry leader Nestlé Purina released two
unapologetic statements revealing limited information about the source of the problem and its
impact on consumers. Purina must recover its customers’ collective faith; a difficult task after
causing thousands of “deaths in the family.” It is also essential that Purina restructure its supply
chain to ensure that history does not repeat itself. 8 pp. Case #09-11. (2009)
Salesforce.com: The Dark Side of Cloud Computing
Delaney, B.; Lechova, M.; Zhang, O.; O’Rourke, J.S. (Editor)
Salesforce.com is the leading company in the Software-as-a-Service Customer Relationship
Management industry. On January 6, 2009, the company faced its most significant disruption in
its history: more than 177 million business transactions were suspended. In addition, Salesforce’s
service status dashboard was down, leaving its users completely in the dark. While the company
remained silent regarding the cause of the outage, customers became increasingly frustrated. (A)
Case, 8 pp. (B) Case, 1 p. Case #09-10. (2009)
3
General Motors Corporation: Communicating a New Vision for Survival
Sorenson, L.; Whitehead, T.; and O’Rourke, J. S. (Editor)
On November 19, 2008, General Motors Corporation presented an argument in the U.S. House of
Representatives to receive bridge loan funding. If the company could not convince the legislators
to assist the company through the economic downturn, then the company would soon be
bankrupt. The case explores the various causes of the General Motors predicament, the
communications strategy employed leading into the congressional hearings, as well as the
outcome. (A) Case, 13 pp. (B) Case, 3 pp. Case #09-09. (2009)
Caterpillar Inc.: Is the Corporation Responsible for End-User Actions?
Bradna, T.; Clark, A.; Sponsel, A.; and O’Rourke, J.S. (Editor)
Since 1967, the Israeli Defense Forces (IDF) have used modified Caterpillar bulldozers to
destroy thousands of Palestinian homes, injuring and even killing scores of individuals in the
process, including American peace activist Rachel Corrie. Rights groups have sent over 50,000
letters to Caterpillar executives, decrying the use of Caterpillar bulldozers to carry out human
rights abuses, and an activist group of shareholders has proposed an investigation into the
company’s military sales operation. Given the negative publicity and accusations, how should
Caterpillar respond to decrease the threats of activist divestiture and rebuild its damaged brand
reputation? 6 pp. Case #09-08. (2009)
Carat USA: An E-mail Gaffe and Reputational Furor
Husack, D.; Knoblauch, K.; Schwarber, C.; and O’Rourke, J.S. (Editor)
As Carat USA was in the process of implementing a restructuring plan, a top HR executive
accidentally forwarded the communication plan to the entire company via e-mail. The
confidential document included the firm’s messages to employees, clients, vendors and other
stakeholders. How can Carat USA recover from the mistake and restore its reputation? (A) Case,
7 pp. (B) Case, 2 pp. Case #09-07. (2009)
Cable News Network: CNN Apologizes to the Chinese People
Doi, T.; Morley, P.; Munkel, A.; and O’Rourke, J. S. (Editor)
On April 9, 2008, Jack Cafferty made comments concerning the United States’ relationship with
China. These comments included calling the Chinese “goons and thugs” and labeling Chinese
products “junk.” Over the next month and a half, thousands of Chinese Americans organized
outside of CNN studios across the U.S. demanding an apology from Cafferty and CNN. CNN
responded with silence, clarifying statements, and thin apologies, all of which served to fuel
negative opinion and ultimately elevate the story to international headlines. 9 pp. Case #09-06.
(2009)
DHL: Closing Operations in the United States
Herrman, R.; Nowak, J.; and O’Rourke, J.S. (Editor)
On November 10, 2008, DHL announced that it would shut down the operations of its domestic
shipping services in the United States. DHL must now communicate to its U.S. and international
customers the implications of this business decision and how DHL will be able to continue to
serve the needs of its customers. 7 pp. Case #09-05. (2009)
4
Apple, Inc.: Transparency in Corporate Statements About the CEO
Kim, P.; Lee, J.; Lee, S.; and O’Rourke, J.S. (Editor)
On January 14, 2009, Apple Inc.’s Steve Jobs announced he was taking a six-month medical
leave of absence, just nine days after he reassured the public that he would be continuing as
CEO. The media and public feel misled, and investors are wary of Apple’s post-Jobs future.
The issue for Apple is whether investors and the public are entitled to more information and, if
so, how much? 8 pp. Case #09-04. (2009)
The San Francisco Zoo: When Exhibits Attack
Pinnick, S.; Pisani, L.; and O’Rourke, J. S. (Editor)
On December 25, 2007, a tiger managed to escape its enclosure at the San Francisco Zoo and
attack zoo visitors, killing one and injuring two others, before it was shot and killed by police
officers. Management must decide how to address the public after the crisis. Beyond this, they
must ensure that they meet proper safety requirements and have effective controls in place to
handle crises. Also, they must deal with the injured persons. (A) Case, 6 pp. (B) Case, 3 pp.
Case #09-03. (2009)
Dell Inc.: Managing Reputation in the Blogosphere
Provenzano, N.; Pulscher, S.; Rand, C.; and O’Rourke, J.S. (Editor)
After deeming Dell’s customer service unsatisfactory, Jeff Jarvis, a well-known blogger, posted
an extremely critical open letter to the company’s CEO. Within a matter of days, Dell had a fullblown crisis on its hands and was forced to reconsider how to deal with emerging technological
platforms used by customers to communicate information and opinions. (A) Case, 6 pp. (B)
Case, 3 pp. Case #09-02. (2009)
Best Buy: Addressing Customer Concerns and Privacy Issues
O’Connor, B.; Owens, C.; Richards, P.; and O’Rourke, J.S. (Editor)
This case study focuses on Raelyn Campbell, a former Best Buy customer, who is suing the
company for $54 million. Campbell states Best Buy lost her laptop - while being serviced for
repairs - and tried to cover up its disappearance for more than five months. Additionally, Best
Buy failed to address her concerns about identity theft when she acknowledged that years worth
of tax returns were still on the missing laptop. The company must now decide how it will
manage its image in response to this allegation and devise a communication strategy to further
address customer concerns and privacy issues. 14 pp. Case #09-01. (2009)
5
FutureGen: The Case for Environmentally Friendly Coal
Hinckley, Jennifer E.; Gallo, Suzanne M.; Buflod, John G.; and O’Rourke, J. S. (Editor)
The FutureGen Alliance was formed to develop an environmentally-friendly coal plant as a joint
venture with the Department of Energy. As costs rose, the Department of Energy decided to
withdraw participation from the FutureGen project. This withdrawal happened quickly and
without prior knowledge from the FutureGen Alliance. The DOE also withheld the official
“Record of Decision,” which would have allowed FutureGen to begin construction. In the end,
what message should FutureGen CEO Michael Mudd take back to his consortium of investors?
10 pp. Case #08-13. (2008)
Xerox Corporation: Developing a New Image
Cooper, Sharita L.; Curry, Mary G.; Riemersma, Katherine E.; and O’Rourke, J. S. (Editor)
After an extensive study, Xerox decided to undergo a rebranding. After unveiling a new logo,
the challenge is to A) roll out the new logo, B) change perception that Xerox only makes copiers,
and C) demonstrate that the rebranding was worth the multimillion dollar investment. 8 pp. Case
#08-12. (2008)
Schering-Plough and Concerns about Vytorin®
Bhagwangar Dhanishtha Kika; Smith, Matthew R.; and O’Rourke, J. S. (Editor)
Clinical tests showed cholesterol drug Vytorin® was not living up to the claims of the producers,
Schering-Plough and Merck. Consumers could receive a virtually equivalent drug for one-third
of the cost. The problem facing Schering-Plough was to find the best methods to reach its
stakeholders and ensure them that their concerns will be addressed in a timely and effective
manner. This case has health, financial, and legal ramifications for stakeholders. 11 pp. Case
#08-11. (2008)
Pittsburgh International Airport: Battling Turbulence in the Airline Industry
Land, Hunter M..; Wentz, Matthew L.; and O’Rourke, J. S. (Editor)
Opened in 1992, the Pittsburgh International Airport midfield terminal complex was designed
and built for the hub operations of USAir. Fifteen years and two bankruptcies later, US Airways
has reduced what was its largest hub to a focus city with only 68 daily flights. As the airport sits
half abandoned, the Allegheny Country Airport Authority is working against an industry in
turmoil to rebuild service at the airport. 20 pp. Case #08-10. (2008)
6
Mattel, Inc.: Lead Contamination in Chinese-Manufactured Toys
Vahrenwald, J. and O’Rourke, J. S. (Editor)
In July 2007, a European toy retailer discovered lead paint on a Mattel toy manufactured in
China. The incident forced Mattel to shut down production at the plant responsible for making
the toy and issue a recall of nearly 1.5 million toys contaminated with lead paint. Just weeks
later, Mattel was forced to issue a second recall of Chinese-manufactured toys, this time
involving over 18 million toys. The Chinese contractors that manufactured the recalled toys
were among Mattel’s most trusted. Both manufacturers, however, used paint from suppliers that
Mattel had not certified as safe. In addressing the backlash that the recalls caused, Mattel was
faced with the task of informing customers and notifying the media about the recalls. Now
Mattel must weigh the costs and benefits of manufacturing in China. 11 pp. Case #08-09. (2008)
Macy’s Inc.: Redrafting the Brand Architecture
Lamb, Amanda M.; Elston, Lauren P.; and O’Rourke, J. S. (Editor)
Macy’s controversial conversion of Chicago’s State Street Marshall Field’s store is just one of
many branding and customer loyalty challenges facing Macy’s Inc. today. After converting over
800 stores nationwide, Macy’s focus is to remain relevant and competitive by managing
customer perception of quality as well as reinvigorating the department store experience. 12 pp.
Case #08-08. (2008)
Facebook Beacon: Cool Feature or an Invasion of Privacy?
Borchers, B.; Lilley, B.; and O’Rourke, J.S. (Editor)
In November 2007, Facebook introduced Beacon, a feature designed to share a user’s online
activities with friends. With concerns for their privacy, outraged Facebook users began
expressing their negative feelings about Beacon. The feature soon become a privacy nightmare
for the public, instead of the beneficial addition Facebook envisioned it to be. Now the company
is left wondering how to handle its mistakes while maintaining a delicate balance between
revenue growth and user privacy. 8 pp. Case #08-07. (2008)
The Boeing Company: Take Off Delays for the 787 Dreamliner
Adair, Justin F.; Tipton, Rory M.; Marshall, John P.; and O’Rourke, J. S. (Editor)
This case will examine the complex challenges of a global business which must maintain healthy
communications with customers, investors, and suppliers. The Boeing 787 Dreamliner is by
most accounts a success story of modern innovation, yet its production delays present a unique
challenge for a corporate communication officer. 7pp. Case #08-06. (2008)
7
Apple, Inc.: Pricing the iPhone
Fischer, L.; Staffieri, A.; and O’Rourke, J. S. (Editor)
On September 5, 2007, Apple, Inc.’s Steve Jobs announced a 33% price decrease in his
company’s newest gadget, the iPhone. The announcement came only ten weeks after the phone’s
initial introduction in late June. Billed as a revolutionary product that would change the mobile
communications industry, the iPhone retailed at $599 in Apple and AT&T Wireless stores
throughout the country. Unfortunately, the initiative set off a wave of backlash as early iPhone
adopters flooded internet chatrooms and sent scathing emails to company executives exclaiming
their distaste for the company’s actions. Analysts and investors shared similar concerns as
Apple’s stock price dropped 6.1% on the date of the announcement amidst fears that the price
reduction was fueled by weakening demand for the company’s newest "blockbuster" product.
Going forward, Steve Jobs and his executive management team must develop a strategy that will
effectively respond to consumer complaints and simultaneously suppress investor concerns. (A)
Case, 14 pp. (B) Case, 3 pp. Case #08-05. (2008)
Johnson & Johnson vs. the American Red Cross
Galano, J., Schlax, C., Wang, A.; and O’Rourke, J.S. (Editor)
For over 100 years, J&J and the ARC had had a working agreement that gave J&J the right to use
the Red Cross symbol for commercial and for-profit products, while the ARC was allowed to use
the symbol in any way it wanted so long as it promoted its humanitarian and non-profit mission
given to the ARC by Congress. This all changed in 2004 when the ARC began licensing the
symbol out to manufactures to produce for-profit goods to be sold in big box retailers and other
stores. After attempts at mediation failed, J&J was left with no choice but to sue. The case will
promote discussion of how companies and organizations should react to lawsuits and what
communication channels need to be addressed by these groups under such circumstances. 7 pp.
Case #08-04. (2008)
Google Street View: Overstepping the Boundaries of Privacy and Security
Faillo, M.; Hughes, J.; and O’Rourke, J. S. (Editor)
Street View is a new Google application giving 360 degree panoramic views of select U.S. cities.
The media and Google users have voiced concerns about the images displayed on Street View.
Google must continue to develop new and innovative products to increase its user base without
over stepping the boundaries of individual privacy and security. 8 pp. Case #08-03. (2008).
Revised: 2009.
8
BP: Responding to Public Pressure
Couchman, K.; Johnson, H.; Miller, M.; and O’Rourke, J.S. (Editor)
British Petroleum (BP) applied for a permit in 2006 to expand its Indiana refinery and increase its
discharge of ammonia and suspended solids into Lake Michigan. The permit was approved by
the state and federal regulatory authorities. What followed was an outcry of public opinion
against this decision culminating in an article in the national media and speeches by presidential
candidate Barak Obama. Though BP had full regulatory approval to proceed with the expansion,
and the scientific consensus was that the increased discharge would not harm the Lake Michigan
ecosystem, BP decided not to use the new discharge permit in the face of intense public scrutiny.
However, this did not quell the negative media coverage regarding its discharge application. 13
pp. Case #08-02. (2008)
ABN AMRO: Activist Shareholders Among the Hedges
Maduro, L.; Paunescu, A.; and O’Rourke, J.S. (Editor)
On February 20, 2007, The Children’s Investment Fund sent a letter to the board of Dutch bank
ABN AMRO requesting that ABN AMRO explore options to merge, sell, or spin-off some of its
assets, or even the whole business. Never before had shareholder activism reached such a scale.
As turmoil reigned and speculation began, the largest bidding war in banking history began over
one of Europe’s largest and oldest banks. (A) Case, 6 pp. (B) Case, 2 pp. Case #08-01. (2008)
Amaranth Advisors LLC: Anatomy of a Hedge Fund Meltdown
Breslin, B.; Farivari, J.; Michalak, R.; Rasmussen, C.; and O’Rourke, J.S. (Editor)
On September 22, 2006, Nicholas Maounis, founder of Amaranth Advisors LLC, reported to
investors that his hedge fund had lost approximately 65% of its value (about $6.0 billion of $9.2
billion) since the end of August 2006. His hope was that, despite these losses, he would be able
to convince his investors to stay the course and not divest; if they divested, then Amaranth would
join the annals of hedge fund history as the largest financial meltdown ever. Looking beyond the
local travail of Amaranth to the potential global disruption of the world financial system, how
would the situation play out in the long term? 10pp. Case #07-09. (2007)
First Act, Inc. & Brook Mays Music
Freeman, J. and O’Rourke, J. S. (Editor)
First Act, Inc. & Brook Mays Music are two very different competitors fighting for a piece of the
school band instrument market. Brook Mays, in business for over 100 years, is a specialty
musical instrument retailer with over 60 locations, while upstart First Act designs and
manufactures instruments for sale in “big-box” retailers. First Act’s Concert Series instruments
have been built to provide a low-cost alternative to higher-priced band instruments commonly
found in stores like Brook Mays. In response to brisk sales of the Concert Series instruments,
Brook Mays has issued a letter to 8,000 music educators across the country, instructing them to
advise parents and students to avoid purchasing these instruments. Just months after the letter’s
issue, Concert Series sales have fallen, customers returns have skyrocketed, and First Act must
now decide how to respond and recover its lost business. 11 pp. Case #07-08. (2007)
9
Whole Foods Market: Being Green as a Way of Life
Cluver, M.; Arender, A.; Stacey, M.; and O’Rourke, J. S. (Editor)
This case explores the tension that can arise when a company tries to balance the competing
interests of all stakeholders. Questions arise regarding how the company communicates its
willingness to sacrifice short-term profits for a long-time growth strategy. And, in the case of
Whole Foods Market, is Corporate Social Responsibility a sustainable business model? 10 pp.
Case #07-07. (2007)
Turner Broadcasting: A Cartoon Promotion Brings Boston to a Standstill
Schank, E.; McCullough, K.; O’Brien, P.; Vahrenwald, J.; and O’Rourke, J. S. (Editor)
On January 31, 2007, several unknown, electronic “bomb-like” devices were discovered in
Boston, Massachusetts, causing chaos and posing a threat to national security. These devices
were later found to be part of a guerrilla marketing campaign gone awry. The campaign was
endorsing a cartoon, Aqua Teen Hunger Force, which airs on Turner Broadcasting’s Cartoon
Network. This incident has questioned the ethics and boundaries of guerrilla marketing as well
as the need for companies to complete their due diligence when hiring outside contractors.
Turner is now faced with significant fines and needs to communicate its apologies to both a
terror-struck Boston and to the nation as a whole. 10 pp. Case #07-06. (2007)
Tiffany & Co.: Protecting Brand Image from Tarnish
LeBel, M.; Hoelscher, K.; Starita, L.; Teboek, M.; and O’Rourke, J. S. (Editor)
In 2004, Mike Kowalski, chief executive officer of Tiffany & Co., faced a major decision for the
future of the Tiffany brand and franchise. After three rounds of price hikes, the highly profitable
silver jewelry line, “Return to Tiffany,” witnessed price increases of 200% , which finally
resulted in a reduction in the demand for Tiffany silver by the upper-middle-class consumer. The
popular silver line had increased sales as well as equity for the shareholders, but at the same
time, it was eroding the brand in the eyes of the core luxury consumer. Tiffany is left with the
juxtaposition between increased profits and a tarnished brand image. 10 pp. Case #07-05. (2007)
Taco Bell: How Do We Know It’s Safe To Eat?
Fromm, K.; Howenstein, S.; Johnson, A.; VanDerWerff, D; and O’Rourke, J. S. (Editor)
On November 30, 2006, Taco Bell closed one of its restaurants in South Plainfield, New Jersey,
in response to nine individuals who allegedly contracted the potentially deadly E. coli bacteria
from the Taco Bell restaurant. As time went on, more and more cases of E. coli related to Taco
Bell were unveiled. Taco Bell continued to lose revenue as consumer confidence in its food
quality and safety was significantly affected as a result of the E. coli outbreak. Ultimately, the
source of the E. coli was linked to Taco Bell’s lettuce and was determined to be infected with the
bacteria prior to its distribution to Taco Bell’s some 5,800 restaurants nationwide. Thus, the crux
of the business problem is imbedded within Taco Bell’s supply chain. Now Taco Bell must deal
with restoring its image, rebuilding trust with its consumers, and preventing future outbreaks.
13 pp. Case #07-04. (2007)
10
Scotts Miracle-Gro: Mandatory Employee Wellness Programs
Berry, K. and O’Rourke, J. S. (Editor)
Executives at Scotts Miracle-Gro, a Massachusetts lawn and garden products manufacturer, had a
passion for employee wellness, and all employees, from the CEO to front-line workers were
required to participate. In September of 2006, one month ahead of a transition to a smoke-free
environment in all Scotts’ facilities, employee Scott Rodrigues was fired. His offense? Smoking
on his own time, at home. Even though the company violated no labor laws, the move
jeopardized both employee morale and the company’s hard-earned reputation as a great place to
work. Communication officials must determine how to deal with the resulting damage. 7 pp.
Case #07-03. (2007)
RadioShack Corporation: You’ve Got Mail!
Frankart, A. and O’Rourke, J. S. (Editor)
Following a period of instability in the executive leadership of RadioShack Corporation, Julian
Day was brought on board as chief executive in July of 2006 to turn the electronics retailing giant
around and restore profitability. Day quickly announced a turnaround plan designed to increase
average unit volume, lower overhead costs and grow profitable square footage. As a part of that
plan, RadioShack reduced its support staff in the headquarters by 450 positions. What bothered
employees and critics alike was not the force reduction, but the fact that those who lost their jobs
were notified by e-mail. 5 pp. Case #07-02. (2007)
Pfizer Inc.: The Torcetrapib Failure and the Future of the World’s Largest Drug
Manufacturer
Du, Y.; Mitchell, J.; Simpson, M.; and O’Rourke, J. S. (Editor)
In December 2006, Pfizer announced the halt of the Torcetrapib clinical trial, a once very
promising drug in the fight against coronary artery and heart disease. At the same time, Pfizer
announced its initial plans of layoffs and cost reductions would be expedited as a result of the
trials. With the loss of patent protections for a series of drugs including Lipitor, the cancellation
of Bextra, and the black label warning on Celebrex tablets, how does Pfizer seek continued
success while appeasing shareholders? 9 pp. Case #07-01. (2007)
The Coca-Cola Company: Allegations of Pesticides in Soft Drinks in India
Erdman, M.; Kelly, S.; Lerum, E.; and O’Rourke, J. S. (Editor)
This case highlights the history of the development of the carbonated beverage industry in India
by the Coca-Cola Company and recent allegations made by a non-governmental organization,
The Center for Science and Environment, of pesticides found in Coca-Cola’s soft drinks. The
case is intended to encourage discussion on how the key players in this event used
communication and the media to further their interests on the local and international levels and to
examine what Coca-Cola might do to protect its reputation and brand image.
21 pp. Case #06-21. (2006)
11
The Boeing Company: The WTO Dispute with Airbus
Adhikary, A.; Englehart, B.; and O’Rourke, J. S. (Editor)
This case study examines a long-standing dispute regarding fair competition and government
subsidies between The Boeing Company and Airbus Industries. Boeing claims that it is being
subjected to an unfair competitive disadvantage because the European Union provided Airbus
soft loans in the form of launch aid. This case reviews communication strategy, the potential
impact on suppliers and communities, and the upcoming WTO dispute and possible outcomes.
10 pp. Case #06-20. (2006)
Hewlett-Packard: Corporate Spy Games
Vander Griend, R. L.; Morelli, J. T.; and O’Rourke, J. S. (Editor)
In September of 2006, Hewlett-Packard Company submitted a filing to the Securities and
Exchange Commission revealing boardroom intrigue and a corporate spy scandal. Responding to
information leaks from within the board of directors, board chairwoman Patricia Dunn had
authorized an internal investigation using illegal investigation techniques to gain access to the
confidential phone records of board members and several news media reporters. HewlettPackard, once a well-respected technology corporation, now faces chaos in its boardroom,
challenges to its ethical values, and various government investigations. As the company picks up
the pieces, it must find a way to restore customer and employee confidence in its commitment to
security and the right to privacy. 12 pp. Case #06-19. (2006)
Dell Inc.: An Evolving Reputational Crisis
Bueso, P.; Falgiani, J. and O’Rourke, J.S. (Editor)
Over the past six quarters, it has not been business as usual at Dell Inc., the world’s largest
computer manufacturer. Growth rates at Dell have slowed tremendously, the company’s
earnings and stock price have plummeted, customer satisfaction levels have declined, and the
relevancy of its Direct Business Model – the driver of the company’s success for the past 20
years – has come into question, given changing market conditions and increasing competition in
the computing industry. If Dell Inc. is to maintain its position as a leader in the computing
industry, founder Michael Dell and his senior management team must find a way to overcome
these problems and adapt to the changing market conditions. 8 pp. Case #06-18. (2006)
12
Bristol-Myers Squibb
Carter, M.; McHale, M.; Triscari, T., and O’Rourke, J. S. (Editor)
In September 2006, Bristol-Myers Squibb announced that it had fired CEO Jim Dolan, who had
led the company since 2001. Dolan’s termination was the result of a failed patent protection
agreement with Canadian generic pharmaceutical company, Apotex. The agreement was
designed to prevent Apotex from releasing a generic version of Plavix, Bristol-Myers Squibb’s
blockbuster blood thinner medication that had revenues of $5.9 billion and accounted for 30% of
Bristol-Myers’ total sales. Federal regulators refused to sign off on the deal and started an
investigation into the agreement. Meanwhile, Apotex released its generic Plavix and quickly
gained 75% market share of new prescriptions. The failed agreement was the second major
problem that occurred during the tenure of Dolan: due to an accounting scandal, Bristol-Myers
was forced to restate earnings for 2001, 2000 and 1999, which caused the company to pay fines
of over $800 million. During Dolan’s time as CEO, Bristol-Myers’ stock price declined by 60%.
After the failed patent agreement and accounting scandals, Bristol-Myers was faced with an
upcoming Plavix patent protection trial. The company must find a way to regain stockholder
trust. 10 pp. Case #06-17. (2006)
Blurred Vision for Bausch & Lomb
Curry, J.; Ratliff, J; and O’Rourke, J. S. (Editor)
On March 3, 2006, Bausch & Lomb received a phone call from New Jersey ophthalmologist Dr.
David S. Chu regarding three patients afflicted with a serious fungal condition known as
fusarium keratitus. These patients all were contact-lens wearers, and had used Bausch & Lomb’s
ReNu with MoistureLoc lens solution. This telephone call started a chain of events, accusations,
and CDC investigations that eventually led to a recall by Bausch & Lomb in the U.S. and
overseas, but not before the crisis had threatened to damage not only sales of its popular lens
solution, but also Bausch & Lomb’s reputation. 18 pp. Case #06-16. (2006)
American Girl: A Protest Over Corporate Philanthropy
Murphy, K.; Halvorsen-Ganepola, M.; and O’Rourke, J. S. (Editor)
In November of 2005, just prior to the Christmas shopping season, the Pro-Life Action League
and the American Family Association announced a boycott of the popular doll line American
Girl®, citing outrage at American Girl’s® charitable support of Girls, Inc., which they accuse of
supporting abortion and promoting lesbianism. The two special interest groups staged the
boycott after failed attempts during the month preceding it to influence American Girl® to cut the
“I CAN” promotion. The groups felt that the company would respond to the challenge of the
campaign because they claimed to be representative of the primary consumer segments of the
American Girl® dolls, with which they historically held shared family values. The boycott lasted
through the Christmas season, and the “I CAN” promotion ended the day after Christmas, as
scheduled. 6 pp. Case #06-15 (2006)
13
BP America, Inc.: The Prudhoe Bay Oil Spill and a Commitment to “Being Green”
Hermo, J. and O’Rourke, J. S. (Editor)
On March 2, 2006, as work crews shoveled through the heavy snow blanketing the Prudhoe Bay
oil fields of northern Alaska, they spotted a small hole of no more than a quarter of an inch along
the pipeline. As BP America, the company in charge of the oil fields, quickly learned, this tiny
hole would prove to be the source of the worst oil spill ever – some 270,000 gallons of crude oil
– on the North Slope of Alaska. BP America and its parent company, BP, soon discovered that
their enormous re-branding efforts and carefully cultivated image for being environmentally
friendly would be challenged by the reality of extracting petroleum in Alaska’s harsh northern
environment. 8 pp. Case #06-14. (2006)
Kraft Foods, Inc.: The Cost of Advertising on Children’s Waistlines
Hwa, P.; Housman, T.; and O’Rourke, J. S. (Editor)
Kraft is known for providing quality in food and beverage products to more than 99% of U.S.
households, but today, with health conscious consumers who blame the rise in children’s obesity
on food marketing, Kraft is under fire for making less healthy foods and promoting them to
children. The challenge for Kraft is to communicate a commitment to a healthy lifestyle and to
stricter marketing standards for children while maintaining profitability. 6 pp. Case #06-13.
(2006)
Sony BMG Corporation: Digital Rights Management
Butcher, K.; Curry, J.; and O’Rourke, J. S. (Editor)
On October 31, 2005, computer programmer Mark Russinovich wrote in his online blog that
listening to his new Sony BMG CD on his computer had turned into more of a trick than treat.
Russinovich discovered that the anti-piracy software on his Sony CD had installed a hidden
program that made his computer vulnerable to potential viruses. Within hours, Russinovich’s
article became a hot topic across the web. Hundreds of other sites linked to his blog and the
security hole created by Sony’s software became a headline in major U.S. and British
newspapers. Sony BMG initially rejected the uproar against the software as technobabble, and
the digital rights management issue quickly turned into a public relations and legal nightmare.
Since CD copy protection is still an experiment in progress, Sony must balance its desire to
protect its intellectual property with consumer rights concerns. 10 pp. Case #06-12. (2006)
Target Corporation: Pharmacists’ Acts of Conscience and the “Plan B” Pill
Cox, J. L.; Berry, K. M.; and O’Rourke, J. S. (Editor)
In September 2005, Rachel Pourchot entered a Target store in Fenton, Missouri, intending to fill
prescriptions for Ortho TriCyclen, a common hormonal contraceptive, and for Levonorgestrel, an
emergency contraceptive known as the “Plan B” pill. Target’s pharmacist, however, told her that
he would not fill the prescription for Levonorgestrel on moral and religious grounds. As
competitors Walgreen’s and Wal-Mart made their positions clear on the issue of pharmacists’
acts of conscience, Target Corporation struggled with an appropriate response that would satisfy
the needs of its customers and its employees, while protecting the reputation of the firm at the
same time. 6 pp. Case #06-11. (2006)
14
Google, Inc.: Entrance Into the Chinese Market and Government Censorship
Harris, B.; Ogilvy, A.; and O’Rourke, J. S. (Editor)
On January 25, 2006, the leading U.S. internet search engine Google, Inc. announced that it
would be locating a new server inside China in order to provide Chinese citizens with their own
portal, Google.cn. Locating the server inside China would allow for faster service than the
Chinese version of the U.S. site was able to provide, and would give Google a greater chance at
capturing China’s estimated 111 million regular internet users. Locating the server in China also
meant that the company had agreed to censor its search results in compliance with the laws of the
Chinese government. The U.S. media and several human rights groups brought the issue to the
public’s attention, and Google’s reputation and share price were severely damaged. The
company now faces the challenge of rebuilding its reputation and balancing its idyllic corporate
philosophy with the need to grow and capture market share. 19 pp. Case #06-10. (2006)
A Philosophy of Dress: Rebuilding Trust in the Brooks Brothers Brand
Johnson, J.; Stevenson, C.; and O’Rourke, J. S. (Editor)
Founded by Henry Sands Brooks in 1818, Brooks Brothers' business was built on relationships
maintained over generations with employees, suppliers, and customers. Once the most admired
retailer in the country, Brooks Brothers lost its corporate identity and consequently, broke the
trust of one of America’s most loyal base of customers. During the 1980s and 1990s, three
companies took ownership of the nation’s oldest, and for much of its history, most profitable
men’s retailer. In 2001, Brooks Brothers was sold to Retail Brand Alliance for $225 million.
RBA CEO Claudio Del Vecchio was determined to save Brooks Brothers. Mr. Del Vecchio
tailored a turnaround plan stitched with a communication strategy for Brooks Brothers’
stakeholders. (A) Case, 8 pp. (B) Case, 7 pp. Case #06-09. (2006)
Guidant Corporation: Heart Implants and Patient Trust
Anderson, J.; Eggleton, L.; and O’Rourke, J. S. (Editor)
On June 17, 2005, medical device maker Guidant Corporation announced a recall of 50,000
implantable cardioverter defibrillators due to flaws in the devices. These devices are designed to
correct a chaotic and deadly type of heart rhythm. This recall was expanded to include 109,000
ICDs and another recall affected Guidant’s pacemaker products. These problems brought an
impending acquisition by Johnson & Johnson into question, and created patient concerns about
the integrity and honesty of the company. 8 pp. Case #06-08. (2006)
15
ChoicePoint: Personal Data and a Loss of Privacy
Bailey, Q.; Gilfillan, B.; and O’Rourke, J. S. (Editor)
On September 27, 2004, ChoicePoint, a company that stores and sells critical personal
information, discovered possible fraudulent activity within its network of databases. On further
investigation, ChoicePoint security officials realized that they may have allowed identity thieves
in Los Angeles, who acted as legitimate business clients, to access more than 110.000 people’s
personal information. CEO Derek Smith and Communications Chief James Lee are faced with
explaining the loss to clients, the press, the public, and those who may have been compromised.
They also face the daunting task of restoring confidence in the company. (A) Case, 7 pp. (B)
Case, 6 pp. Case #06-07. (2006)
KPMG: Running for Shelter
Ragsdale, M.; Bucholz, E.; and O’Rourke, J. S. (Editor)
Beginning in the late 1990’s, public accounting firm KPMG marketed and sold tax shelters
specifically designed to help clients evade taxes. When the IRS challenged these tax shelters,
KPMG resisted its investigation. In the face of mounting evidence against the firm, KPMG
eventually realized it had no choice but to cooperate with the Justice Department and try to save
itself from criminal indictment. Late in the summer of 2005, KPMG reached a settlement with
the Department of Justice, which required KPMG to make a public admission of wrongdoing.
This admission paved the way for the Justice Department to file suit against former KPMG
employees involved with the tax shelters. Some argue that KPMG betrayed its former
employees. With the risk of criminal indictment abated, now KPMG must turn its attention to
rebuilding the trust of its partners and its clients. 12 pp. Case #06-06. (2006)
Amtrak Acela: The Challenge of High-Speed Passenger Rail Service
Benson, A.; Hermo, J.; and O’Rourke, J. S. (Editor)
In August of 2002, maintenance workers find fractured locomotive brackets and brake discs on
Amtrak’s high-speed Acela line between Washington and Boston. As a result, the Acela is taken
out of service for three years and Amtrak continues to lose money and struggle with funding for
everything from infrastructure maintenance to passenger service amenities. CEO David Gunn is
faced with the most critical circumstances in the 34-year history of the troubled passenger rail
service. While Japanese and European high-speed train services continue their profitable
operations, the United States has yet to devise a model that works. Brand strategy and building
trust are at the center of the challenge for Amtrak. 9 pp. Case #06-05. (2006)
16
Citigroup: Restoring Ethics and Image Before Growth
Lee, D.; Ratliff, J.; and O’Rourke, J. S. (Editor)
The new CEO of Citigroup, Charles Prince, proposes a Five Point Ethics Plan in an attempt to
change the ethics, culture and operations of the company. The plan is a response to significant
regulatory scrutiny, paying out massive legal settlements and a Federal Reserve announcement
requiring the company to refrain from mergers and acquisitions until it has cleaned up internal
controls. His plan includes expanded training, enhanced focus on talent, balanced performance
appraisals, improved communications and strengthened compliance controls. As current key
executives leave the company and experts in ethics are skeptical, many wonder if Citigroup will
be able to successfully communicate this program while it holds back on growth to implement
this new culture. 11 pp. Case #06-04. (2006)
McDonald’s Corporation: Regilding the Golden Arches
Kays, C.; Kimmet, M.; and O’Rourke, J. S. (Editor)
Faced with its first quarterly loss in company history, McDonald’s corporation enacted a strategy
to improve its declining profitability. Unfortunately, McDonald’s profitability problems were
multi-layered and required the company to reevaluate both its current business model and
strategy. Links to obesity, negative customer perceptions, and decreased same-store sales were
all to blame for the current situation. For a successful turnaround, McDonald’s must recognize
its inefficiencies and devise an integrated operational and communication plan to reverse its
slide. 11 pp. Case #06-03. (2006)
Northwest Airlines: Labor Relations a Turbulent Industry
Durkalski, D.; Peer, C.; Sawyer, A.; and O’Rourke, J. S. (Editor)
On September 14, 2005, Northwest Airlines filed for Chapter 11 bankruptcy. During the weeks
leading up to the decision, Northwest was burning through $4 million in cash a day, carried $8.1
billion in long-term debt, and had pension plans underfunded by $3.8 billion. With fuel prices
increasing at record rates, a shortage for demand in the airline industry, and a mechanics strike
leaving unfruitful negotiations, something had to be done. Under the protection of bankruptcy,
CEO Douglas Steenland, believes that Northwest can settle labor issues and reorganize the firm’s
cost structure to compete with discount airlines. Steenland hopes Northwest can emerge from
the bankruptcy stronger than ever. Critics wonder what tactics Northwest might employ to
survive this turbulent industry. 8 pp. Case #06-02. (2006)
Wendy’s International: Pointing a Finger at Fraud
Gaumond, C.; Kim, H.; and O’Rourke, J. S. (Editor)
On March 22, 2005, a woman discovers a human finger in her chili while dining at a Wendy’s
restaurant in San Jose, California. As widespread and strongly negative media coverage
surrounds the event, sales figures begin to plummet. Wendy’s executives are under intense
pressure to discover what really happened in their restaurant while they try to repair the damage
done to their once well-respected brand. 6 pp. Case #06-01. (2006)
17
Chicago Sun-Times: When Truth-Tellers Lie
Morales, S. M.; and O’Rourke, J. S. (Editor)
While conducting an internal audit, David Cruickshank, the newly-hired publisher of the Chicago
Sun-Times, was faced with a chilling reality about how his newspaper was operating.
Cruickshank uncovered data proving that the Sun-Times circulation figures – the lifeline of the
paper’s advertising revenues – had been inflated for nine years. The credibility of one of the
nation’s top publications was on the line, and Cruickshank needed to decide how to communicate
this to his staff and, more importantly, to the world. 7 pp. Case #05-07. (2005)
The Walt Disney Company: Launch of a Hong Kong Theme Park
Baldwin, J. L.; Liu, A.; Suzuki, H.; and O’Rourke, J. S. (Editor)
In September 2005, the Walt Disney Company announced the opening of its third theme park
outside of the United States, and the second in Asia. Hong Kong Disneyland would become one
of the most ambitious, expensive, and difficult ventures in the company’s history, and – if the
company’s experience in Europe were any guide – it would have just one chance to get it right.
Unlike the Disney experience in Tokyo, a theme park in Hong Kong would prove culturally
challenging for a number of reasons, including language, food, souvenirs, entertainment,
environmental concerns, contract relationships, local employees, cultural sensitivities, and the
Chinese central government. Public Affairs VP Irene Chan is faced with enormous challenges as
the company prepares for the park’s opening day. 17 pp. Case #05-06. (2005)
CBS News: Challenging the Authenticity of a News Source
Stevenson, C.; Suhanic, K.; and O’Rourke, J. S. (Editor)
Just weeks before the tightly contested 2004 presidential election, the CBS television network
aired a feature story alleging that President George W. Bush received preferential treatment while
in service to the Texas Air National Guard. At the center of the story are photocopies of memos
supporting the allegations. Almost immediately following the broadcast, bloggers and news sites
begin to question the authenticity of these memos. The maelstrom that ensues questions CBS’
and Dan Rather’s motives, and both the credibility and the role of broadcast media in the internet
age. 9 pp. Case #05-05. (2005)
Procter & Gamble: Confrontation with People for the Ethical Treatment of Animals
Dillon, P.; Paxton, J.; and O’Rourke, J. S. (Editor)
On March 25, 2003, People for the Ethical Treatment of Animals (PETA) revealed an
undercover investigation of alleged abuses in Procter & Gamble subsidiary The Iams Company’s
independent research facilities. Iams, a company of self-described animal lovers, responded
quickly to evolve testing procedures to better conditions for study animals. Intense media
coverage of PETA’s aggressive protests, however, has generated many questions about whether
Iams is concerned about profits to the detriment of its customers’ pets. 8 pp. Case #05-04.
(2005)
18
Google, Inc.: Responding to Scrutiny Surrounding its Initial Public Offering
Ellescas, S. D.; Gonzales, J. C.; and O’Rourke, J. S. (Editor)
Since deciding to go public, Google’s once lauded unique and innovative culture has become
problematic for the former internet start-up. Unorthodox management practices, lack of
corporate governance, increased competition, and regulatory issues hobbled Google’s IPO and
continue to plague the company. Additionally, Google’s policy of secrecy leaves its stakeholders
with no guidance as to future plans to confront their concerns. Despite its rising stock price since
going public, these problems cast doubt on Google’s future business viability. CEO Dr. Eric E.
Schmidt and Corporate Marketing VP Cindy McCaffrey must decide how to proceed in the face
of mounting criticism and lurking competition. 10 pp. Case #05-03. (2005)
Starbucks Corporation: Can Customers Breastfeed in a Coffee Shop?
Bailey, J.; McHale, C.; Rainer, S.; and O’Rourke, J.S. (Editor)
A customer complaint prompts an increasingly powerful special interest group to target
Starbucks as its next corporate victim. Led by Lorig Charkoudian, a “nurse-in” staged outside of
a Maryland Starbucks forces the company to address the complex issue of public breastfeeding.
Varying constituent views and changing state legislation regarding breastfeeding complicates the
situation even further. As a corporation that prides itself on diversity, Starbucks must decide
how to satisfy its most profitable customer segments without discriminating against others or
violating the law. 9 pp. Case #05-02. (2005)
Merck & Co., Inc.: A Recall of Vioxx®
Bartucci, G.; Gust, A.; and O’Rourke, J. S. (Editor)
Influenced by the preliminary results of an internal clinical trial, Raymond Gilmartin, CEO of
Merck, announced that the company was pulling its blockbuster arthritis drug Vioxx® from the
worldwide market on September 30, 2004. Merck & Company, Inc., once the world’s largest
pharmaceutical company, saw its stock price plummet 27% after the recall announcement.
Facing recent sales declines, a barrage of lawsuits, and two separate government investigations,
Merck is losing its once-stellar reputation in the pharmaceutical industry. (A) Case, 10 pp. (B)
Case, 5 pp. Case #05-01. (2005)
Alaska Airlines: Navigating through Crisis toward an Uncertain Future
Hein, C.; Tipps, T.; and O’Rourke, J. S. (Editor)
On January 31, 2000, an Alaska Airlines MD-80 crashed in the Pacific off the coast of
California. A company with a sense of independence and strong culture, Alaska Airlines
responded quickly to the NTSB investigation of the accident and the media assault that focused
on Alaska’s sloppy maintenance records as a contributing factor to the crash. Brand equity,
employee morale, and stockholder confidence emerged essentially unscathed as a result. A little
more than one year later, though, the entire airline industry was forced to deal with the
consequences of the 9/11 tragedy. Today, Alaska Airlines is among the most recognized for
service and quality in the industry, but is facing financial challenges as the industry moves
toward a low-cost model. The company must now decide how to strengthen its financial position
without sacrificing its service and quality. 10 pp. Case #04-09. (2004)
19
Wal-Mart Stores, Inc: Image Issues for the World’s Largest Retailer
Katcherian, A. L.; Blazek, M. F.; and O’Rourke, J. S. (Editor)
Federal immigration agents’ raids on Wal-Mart stores, referred to simply as “Operation
Rollback,” raises some concerns for the world’s largest retailer, especially in light of the negative
media exposure the company receives largely due to its massive size and expansionist efforts
throughout the globe. Criticisms of Wal-Mart’s non-union stance and its controlling relationship
with suppliers continue to surround the publicity of “Operation Rollback,” transforming the raids
into a symbol of the effects of the company’s low cost business model and unbeatable low prices.
12 pp. Case #04-08. (2004)
De Beers Ltd.: Polishing Up Its Brand For the U.S. Market
Davgun, A.; McDaniel, H.; Thomas, M.; and O’Rourke, J. S. (Editor)
In order to be permitted to enter the United States retail market, De Beers Ltd. is expected to
plead guilty to a lawsuit accusing them of price fixing. While trying to present itself as the
conscientious leader of an otherwise sordid, often dangerous diamond business, the company
finds itself facing the daunting task of balancing an admission of guilt and the negative media
attention it may draw with an unpredictable American diamond consumer. 20 pp. Case #04-07.
(2004)
JetBlue: Balancing Passenger Privacy and Airline Security
Morales, S. M.; Somerville, N. R.; and O’Rourke, J. S. (Editor)
In the aftermath of the 9/11 attacks, security on the nation’s commercial airlines becomes a
significant issue for the government, carriers, and passengers who fly each day. In response to a
request from a U.S. Defense Department contractor, JetBlue turns over detailed information
about passengers traveling on the discount carrier, including travel dates, destinations, home
addresses and credit card numbers. After initially denying the charge, JetBlue officials later
defend their actions. Privacy advocates, homeland security officials, and other commercial
airlines wait for public reaction to JetBlue’s actions and statements. 9 pp. Case #04-06. (2004)
The New York Times and Jayson Blair: All the News That’s Fit to Print?
Smeraglinolo, M.; Wehmer, J.; and O’Rourke, J. S. (Editor)
A promising young reporter is given an unprecedented opportunity to move up quickly through
the ranks of The New York Times. Questions about the accuracy of his reporting and the source
of his material, however, soon turn his case into a referendum on the leadership of Executive
Editor Howell Raines and Managing Editor Gerald Boyd. Reporters soon begin taking sides as a
credibility crisis and loyalty rift develop among the Times staff. (A) Case, 9 pp. (B) Case, 2 pp.
Case #04-05. (2004)
20
Mothers Work, Inc.: Brand Image and Accusations of Employment Discrimination
Billick, C.; Wong, L.; and O’Rourke, J. S. (Editor)
The nation’s largest retailer of maternity wear is accused of employment discrimination over the
dismissal of a manager attempting to return from maternity leave. President and COO Rebecca
Matthias and Communications Chief Mona Liss find themselves confronted with charges of
discriminating against a young mother and press reaction ranging from shock to disbelief. A
thorough review of the Family Medical Leave Act (FMLA) and Pregnancy Discrimination Act
(PDA) of 1978 are included. 7 pp. Case #04-04. (2004)
The New York Stock Exchange: An Identity in Jeopardy
Abdalla, S. A.; Sanderson, S. J.; and O’Rourke, J. S. (Editor)
A crisis of leadership and brand image is precipitated by the revelation of a compensation
package for NYSE Chairman Richard Grasso. Critics and insiders alike regard the level of
compensation as exorbitant and call for Grasso’s resignation. Far more serious than the loss of a
capable chief executive, however, is the growing sentiment that the exchange chairman may be
unfit to regulate the board members who vote on his compensation. Aggressive competition
from electronic trading systems such as the NASDAQ threaten the very existence of the NYSE
market-maker model and the system which governs it. 33 pp. Case #04-03. (2004)
GlaxoSmithKline: Executive Compensation and a Shareholder Revolt
Eklund, J.; Frymoyer, S.; Yamabayashi, K.; and O’Rourke, J. S. (Editor)
A series of controversies and market reversals begin to affect one of the world’s largest
pharmaceutical firms. As share price tumbles and market share erodes, CEO J.P. Garnier is
awarded a very large compensation package early in 2003. Shareholders revolt, voting down the
executive compensation package, and threaten to take down the management team. GSK
Chairman Lord Christopher Hogg and Communications VP Jennie Younger must decide how to
proceed in the face of mounting criticism and public outrage. 13 pp. Case #04-02. (2004)
L’Oreal USA: Do Looks Really Matter in the Cosmetics Industry?
Petty, A. A.; Reimer, C. G.; Swanes, R. and O’Rourke, J. S. (Editor)
When a L’Oreal executive walks through a West Coast department store and demands that a
sales representative be dismissed solely because of her appearance, lower-ranking managers
resist. After the dismissal of a manager who defended the productive, but apparently
unglamorous sales clerk, L’Oreal executives face charges of improper termination and
employment discrimination. Title VII of the U.S. Civil Rights Act comes into play as
Communications EVP Rebecca Caruso works to defend the image of the world’s largest
cosmetics retailer. 7 pp. Case #04-01. (2004)
21
Taco Bell Corporation: Public Perception and Brand Protection
Hall, J.; Viola, M.; and O’Rourke, J. S. (Editor)
Fears regarding the introduction of genetically modified foods into the commercial food market
have grown steadily since the mid-1990s. In the autumn of 2000, Taco Bell Corporation found
itself caught between Friends of the Earth, a not-for-profit environmental advocacy group, and
Kraft Foods Corporation, a business partner that manufactured and marketed grocery store
products under the Taco Bell brand name. When environmental advocates claimed that
genetically modified corn had somehow found its way into Taco Bell corn tortillas manufactured
by Kraft, both companies were faced with important accusations about food safety and threats to
brand image. (A) Case, 10 pp. (B) Case, 5 pp. Case #03-07. (2003)
McDonald’s Corporation: Who Is Responsible for America’s Obesity?
Wysocki, J.; Denhardt, A.; and O’Rourke, J. S. (Editor)
McDonald’s Corporation, the leader among U.S. franchise quick-service restaurants, found in
2002 that its reputation for steady growth and strong profitability were slipping. At the same
time, much of the market for fast food in North America began migrating to lower-calorie,
healthier alternatives. Fast food and social trend critics began blaming quick service restaurants
for a wide range of health problems, including obesity and weight-related illnesses. New York
attorney Samuel Hirsch filed a class action suit on behalf of obese and overweight children
against McDonald’s, alleging that the fast-food chain “negligently, recklessly and/or
intentionally” marketed food products that are “high in fat, salt, sugar, and cholesterol” while
failing to warn of those ingredients’ links to “obesity, diabetes, coronary heart disease, high
blood pressure, strokes, elevated cholesterol intake, related cancers,” and other conditions.
McDonald’s reputation, profitability, and future are at stake as it prepares in 2003 to defend
itself, its products, and its business. 10 pp. Case #03-06. (2003)
Wyeth Pharmaceuticals: Premarin®, Prempro® and Hormone Replacement Therapy
Huang, K. I. C.; Vanaelstyn, M; and O’Rourke, J. S. (Editor)
Millions of women worldwide between the ages of 45 and 55 experience the effects of
menopause and have sought both treatment and relief in the form of hormone replacement
therapy. Wyeth Pharmaceuticals, a division of Wyeth, Inc., is the market leader in prescription
drug treatment for menopause with Premarin®, a blend of natural estrogens (for women who have
had a hysterectomy), and Prempro®, a one-tablet hormone replacement therapy consisting of
natural estrogens plus progestin. A stunning set of results from the Women’s Health Initiative,
released in the summer of 2002, however, challenges conventional approaches to treatment and
poses a significant threat to Wyeth share price and market leadership. (A) Case, 12 pp. (B)
Case, 4 pp. Case #03-05. (2003)
22
The Soul of Dell: The Value of Corporate Philosophy Statements
Escamilla, E.; Celada, C.; and O’Rourke, J. S. (Editor)
Few companies have come to dominate a market segment the way Dell Computer Corporation
has made its imprint on desktop and notebook computers. While growing revenues from $6 in
1985 to $33.7 billion in 2002, Michael Dell could never completely shake the sensation that he
and his business partners had yet to “define their soul.” What he wanted, more than growth or
innovation, was a statement of corporate philosophy that would define for the world who Dell
Computers was and would hope to become. This case explores the process by which Michael
Dell and Kevin Rollins, his president and COO, would draft and communicate their values. 7 pp.
Case #03-04. (2003)
Hershey Foods: It’s Time to Kiss and Make Up
McCoy, M. M.; Castrillo, L. A.; and O’Rourke, J. S. (Editor)
No firm is more closely identified with a single product than Hershey Foods is with chocolate.
Founded in 1905, and located in rural Hershey, Pennsylvania, the legendary confectioner found
itself for sale in the summer of 2002. The Hershey Trust Company, which owns nearly a third of
all Hershey Foods stock and controls three-quarters of the voting stock, elected to re-balance its
portfolio and sell the firm to either a Nestle / Cadbury / Schweppes consortium or The Wm
Wrigley Company. Caught in the middle are The Milton S. Hershey School, employees, and
generations of Hershey residents and retirees. A classic struggle for control of the company plays
out in public. 13 pp. Case #03-03. (2003)
Augusta National Golf Club: Membership for Women or Staying the Course?
Swart, R. B.; Singh, A. K.; Nelson, A.; and O’Rourke, J. S. (Editor)
Professional golf’s most prestigious venue and most storied tournament come under fire as the
National Council of Women’s Organizations attacks Augusta National Golf Club for its
exclusionary membership practices. The Club, which annually sponsors The Masters Golf
Tournament, has no women members and balks at the idea of being told who it must include as
members. A very public tussle ensues, involving the CBS Television Network, the Professional
Golfers Associations, several prestigious sponsors, and the business organizations of the club’s
members. Both sides resolve to stand their ground. 12 pp. Case #03-02. (2003)
JetBlue: Competing for Marketshare in a Turbulent Industry
Kellman, J.; Archer, T.; Beal, M.; and O’Rourke, J. S. (Editor)
In the face of declining revenues throughout the airline industry, a struggling economy, and an
overcrowded marketplace, David Neeleman decided in early 2000 to launch an entirely new
airline. With $130 million in venture funding, JetBlue began daily operations from JFK in New
York to Florida, California, Colorado, and Las Vegas. After September 11, 2001, industry
analysts were asking whether a discounter who promised first-class service could sustain the
brand promise. 12 pp. Case #03-01. (2003)
23
Martha Stewart Living Omnimedia, Inc.: An Accusation of Insider Trading
Westby, A.; Moulton, M. P.; and O’Rourke, J. S. (Editor)
Domestic advice and home products maven Martha Stewart is accused of selling nearly 4,000
shares of ImClone Systems, Inc. stock shares, just ahead of a public announcement that the
company’s promising new drug, Erbitux, has failed FDA clinical testing. Accusations of insider
trading, based on her special relationships with ImClone CEO Samuel Waksal and Merrill Lynch
broker Peter Bacanovic, threaten her own company’s reputation, share price, and market position.
Can Martha Stewart Living Omnimedia survive accusations of misconduct or the downfall of its
namesake? (A) Case, 16 pp. (B) Case, 5 pp. Case #02-15. (2002 & 2004)
Deloitte & Touche Consulting: Should Accountants Be Allowed to Consult Their Audit
Clients?
Kornmann, B.; Nolan, W.; Van Tiem, J. R.; and O’Rourke, J. S. (Editor)
The collapse of the energy trading giant Enron has put the focus on accounting firms, and
especially on the amount of consulting being performed for large audit clients. Deloitte &
Touche CEO Jim Copeland convinced the U.S. Securities and Exchange Commission in 2001 to
allow accounting firms to continue to provide consulting services. With the possibility of
increased regulations and governmental interference following Enron, Copeland must decide if
this is still a viable option for his firm. (A) Case, 7 pp. (B) Case, 3 pp. Case #02-14. (2002)
Dean Kamen and Segway LLC: The Man, the Machine, and the Market
Bucolo, D. M.; Kelly, R. M.; Inglesby, M.; and O’Rourke, J. S. (Editor)
Dean Kamen, a self-made entrepreneur and America’s most famous inventor, reveals to the
world his latest invention, the Segway Human Transporter. While the Segway has many
commercial uses, Kamen’s vision is that his invention will become the preferred mode of
transportation in American cities. In order for that to happen, Kamen must convince the public
and Wall Street that the Segway HT is the way of the future. (A) Case, 6 pp. (B) Case, 2 pp.
Case #02-13. (2002)
Kmart Corporation: Saving an American Icon
Brown, J.; Lesser, D.; and O’Rourke, J. S. (Editor)
Jim Adamson, the man responsible for turning around Burger King and Advantica Restaurants,
the parent company of Denny’s Restaurants, has a new challenge. He has been hired to save
Kmart, who in recent years has failed to remain competitive with the likes of Target and WalMart. Despite three CEOs in as many years, the downward trend has continued for the big-box
retailer. Investors are counting on Adamson to find a way to convince the market that Kmart can
recover. (A) Case, 10 pp. (B) Case, 4 pp. Case #02-12. (2002)
24
The Travel Industry and the Events of September 11, 2001
Adams, M..; Eckerle, C.; Howard, G.; and O’Rourke, J. S. (Editor)
No industry was hit harder than the travel industry following the 9/11 attacks. While big
companies like the airlines received government support, small businesses like Anthony Travel, a
local travel agent, suffered greatly from the tragedy. Families were also affected as vacations
were postponed or canceled due to fears of flying. The Travel Industry Association of America
has to convince Americans why they need to travel again. (A) Case, 8 pp. (B) Case, 4 pp. Case
#02-11. (2002)
HP-Compaq: A Merger of Technology Giants
Chaiyadhiroj, K.; Rampton, A.; and O’Rourke, J. S. (Editor)
Hewlett Packard CEO Carly Fiorina is fighting the families of the founding members of HP
regarding a proposed merger between HP and Compaq. Fiorina sees the merger as the only way
to stay competitive in the technology market and compete with IBM. Walter Hewlett, board
member and son of founder William Hewlett, believes the merger is risky and further exposes the
company to the highly commoditized personal computer market. Fiorina must convince
shareholders about her vision for HP in order to win the proxy vote. (A) Case, 11 pp. (B) Case,
3 pp. Case #02-10. (2002)
Major League Baseball: Dealing With Contraction
Boulger, M.; Muskett, J.; and O’Rourke, J. S. (Editor)
Baseball Commissioner Bud Selig proposes that Major League Baseball should contract or
eliminate two teams for the 2002 season. Selig claims that 25 out of 30 teams in the league are
losing money and contraction is the only way to stop the bleeding. Forbes magazine found that
discrepancies in reporting by the teams meant only 10 teams lost money in 2001. The fight over
contraction has put owners against the players’ union with both sides forgetting about a bigger
factor: baseball fans. Selig must decide if baseball and its fans can survive contraction and the
transition from a game to a business. 8 pp. Case #02-09. (2002)
American Red Cross: Out of Catastrophe Come Charity and Controversy
Hulett, J. M.; Malaier, A. B.; and O’Rourke, J. S. (Editor)
Following the 9/11 terrorist attacks, the American Red Cross collects so many donations for
victims that it creates a special fund called the Liberty Fund to handle more than $564 million.
When the public discovers significant portions of the fund will not be used for the families of
those who died in the bombing, Congress intervenes and begins investigating Red Cross’
activities. The charity is also under fire for not cooperating with other charities in the
distribution of monies or using proper screening to determine genuine requests for relief. In the
midst of the largest scandal ever for the Red Cross, its CEO and president Dr. Bernadine Healy
resigns and the Board of the Red Cross, specifically Chairman David McLaughlin, must find a
way to rebuild trust in the Red Cross and ensure the public that the funds collected are distributed
properly. (A) Case, 14 pp. (B) Case, 3 pp. Case #02-08. (2002)
25
DaimlerChrysler v. AM General: Who Owns the Seven-Slot Grille?
Huebner, A.; McCleod, L.; Roman, P.; and O’Rourke, J. S. (Editor)
AM General Corporation is ready to begin production on a new sports utility vehicle, the H2,
when the company is hit with a lawsuit from DaimlerChrysler. The H2, which is modeled after
the popular Hummer military vehicle, contains a grille with seven slots, similar to the grille
currently used on Jeep brand vehicles. DaimlerChrysler contends that the grille design on the
new H2 infringes on the Jeep trademark and wants AM General to change the grille on the H2
before continuing production. This delay would put almost 500 people out of work and leave a
multi-million dollar plant idle. AM General’s CEO, Jim Armstrong, must work quickly to keep
production for the H2 on schedule. 12 pp. Case #02-07. (2002)
The Boeing Company: A Branding Campaign Meets Terrorism
Stewart, D.; Dominguez, M.; Odicino, C.; and O’Rourke, J. S. (Editor)
Boeing, the world’s largest aerospace company, was in the midst of a successful branding
campaign when disaster struck. Four Boeing jets were hijacked in the 9/11 terrorist attacks on
the United States. The attacks provided shocking views of Boeing planes striking the World
Trade Center, and created contrasting images with the Boeing advertisements. CEO Phil Condit
must determine whether continuing with the branding campaign would cause more harm than
good to the Boeing image. 9 pp. Case #02-06. (2002)
Arthur Andersen, LLP: An Accounting Firm in Crisis
Bonaguro, J.; Kane, K.; and O’Rourke, J. S. (Editor)
The famed accounting firm Arthur Andersen fights for its very existence after one of its largest
clients, Enron, falls from the top ranks of the Fortune 500 to bankruptcy in a matter of months.
Investigations by the U.S. Department of Justice and the SEC force Andersen to reveal its role in
the destruction of thousands of Enron-related documents. Andersen CEO Joe Berardino must
find a way to regain the public’s trust in the firm and its audits, as well as convince the
Department of Justice that Andersen should not be prosecuted for its actions in the Enron
collapse. (A) Case, 23 pp. (includes 16 pages of attachments). (B) Case, 10 pp. (includes 7
pages of attachments). Case #02-05. (2002 & 2004)
Morgan Stanley and the Events of September 11, 2001
Ulto, S.; Strmiska, D.; and O’Rourke, J. S. (Editor)
When two airplanes struck the World Trade Center on September 11, 2001, more than 3,000
Morgan Stanley employees sprang into action. Following an earlier terrorist attack on the Center
in 1993, the company developed an emergency evacuation plan to ensure employees could safely
and quickly exit the building. With all the chaos following the attacks, CEO Phil Purcell had
difficulty in determining if all of the company’s employees had made it out. News was also
traveling around the world that Morgan Stanley was completely destroyed from the bombing.
Purcell must quickly determine how many employees survived and how to inform the world that
Morgan Stanley was still in business. (A) Case, 4 pp. (B) Case, 5 pp. Case #02-04. (2002)
26
Bayer AG: Anthrax and Cipro
Lee, S. K.; Laabs, J. C.; and O’Rourke, J. S. (Editor)
As the United States reeled from terrorist attacks in the days following September 11, 2001, the
threat of bio-terrorism emerged in the form of Anthrax. Envelopes containing the biological
weapon began to appear in Washington, New York, and Florida. Bayer CEO Manfred Schneider
soon found his company in an unusual position. The company’s drug, Cipro, was the only FDAapproved medication for the treatment of Anthrax. Bayer was in the international spotlight as the
press, public, and politicians began to debate whether Bayer could provide enough of the drug to
keep the U.S. population safe, and whether the company’s patent should be rescinded to allow
for generic production. Dr. Schneider must decide how to extinguish doubts without losing his
most profitable product. 12 pp. Case #02-03. (2002)
Toys R Us: Re-Branding for the Future
Burke, M.; Jurney, N. S.; and O’Rourke, J. S. (Editor)
As one of America’s best-known toy retailers, Toys R Us gears up for a massive re-branding to
be accompanied by widespread retail store reorganization and renovation, and significant
changes in the company’s Paramus, New Jersey, headquarters. Rebecca Caruso drafts a plan to
accompany a large-scale advertising campaign, supporting new CEO John Eyler’s plans to make
the company a market leader in its category. Then, on September 11, 2001, terrorist attacks on
the U.S. change the national mood, the retail landscape, and the economy. Caruso and Eyler
must decide how to proceed. (A) Case, 9 pp. (B) Case, 4 pp. Case #02-02. (2002)
Emulex, Incorporated: A Crash Course in Crisis Management
Berlo, J.; Worrell, J.; and O’Rourke, J. S. (Editor)
The world’s largest producers of fiber channel host adapters is the victim of a stock price
manipulation hoax. In the course of just a few hours, share price falls from $113 to less than
$50, as more than $2 billion in market valuation evaporates. A fictitious press release to Internet
Wire, quickly re-transmitted by Bloomberg News, CNBC, and others, claims that key executives
have resigned and that fourth-quarter earnings will be drastically revised and restated. CEO Paul
Folino must act quickly to prevent the total collapse of his stock on the NASDAQ. (A) Case, 6
pp. (B) Case, 5 pp. Case #02-01. (2002)
Bayer Corporation: The Recall of Phenylpropanolamine (PPA)
Hwang, D.; Kolar, M.; Cox, B.; and O’Rourke, J. S. (Editor)
Bayer responds to concerns about Phenlypropanolamine (PPA) found in its key brand, AlkaSeltzer Plus, by co-sponsoring a study to assess the safety of the ingredient. The study finds that
PPA does carry a risk, and the Federal Drug Administration requests a voluntary recall. Bayer
must confront the media’s distorted interpretation of the recall before it taints the reputation of
Alka-Seltzer Plus and other important Bayer brands. As it enters the peak season for flu and cold
medications, Bayer must also decide how to respond to a recall as it faces losses from
promotional campaigns and sales, as well as a loss in consumer confidence. 14 pp. Case #01-13.
(2001)
27
Home Depot
Bravo, E.; Cavitch-Grimes, L.; and O’Rourke, J. S. (Editor)
The world’s largest home improvement retailer is under fire. A number of fatalities at Home
Depot stores across the nation since 1992 have finally come to the public’s attention. The
parents of a 3-year-old girl refuse to sell their silence about what they consider to be poor safety
rules in the stores. The family stops negotiations with the company on the issue, and Home
Depot management must decide how to react to the allegations of poor safety standards while
under intense public scrutiny. 8 pp. Case #01-12. (2001)
McDonald’s Corporation and Mad Cow Disease in Europe
Formwalt, R.; Sackley, P.; Mackenzie, J. B.; and O’Rourke, J. S. (Editor)
Foot-and-Mouth Disease, Mad Cow Disease, and related headlines create a hostile environment
for meat in Europe. The first case appears in 1996, with others following in late 2000 and early
2001. While McDonald’s has impeccable quality and safety standards, a blow from the publicity
of these catastrophes is inevitable. Crisis management teams must try to alleviate public fears
about eating at McDonald’s in order to offset the financial impact on their European division. To
manage the situation effectively they must prepare to face the press, consumers, shareholders
and anti-meat activists. 13 pp. Case #01-11. (2001)
Accenture: The Re-branding of Andersen Consulting
Gaul, M.; Cosenza, L.; and O’Rourke, J. S. (Editor)
The 1989 split between Arthur Andersen and Andersen Consulting resurfaces as Andersen
Consulting files suit against its sister company. One outcome of the negotiations is that
Andersen Consulting must abandon the Andersen name by January 1, 2001. The new name will
be Accenture. The re-branding coincides with a variety of new capabilities and restructuring
within the company. It hopes to leverage these changes to retain former clients and add value for
new ones. The company must also decide the best way to present its new image to the public, to
clients, and others in the marketplace. 5 pp. Case #01-10. (2001)
W Hotels: Comfortable, Stylish, and Wired for Today’s Savvy Business Traveler
Bonifas, M.; Van Neuren, M.; and O’Rourke, J. S. (Editor)
Barry Sternlicht is leading the launch of a new, upscale lodging brand: W Hotels. The brand will
combine the reliability of large hotel chains with the unique style of independent boutique hotels.
The W brand targets young business travelers, but brand managers recognize many other
audiences they must reach for the new venture to succeed. Sternlicht understands that he needs
to do more than sell hotel rooms; he must send a message to consumers and financial analysts
alike. 9 pp. Case #01-09. (2001)
28
TD Waterhouse Investor and Equity Trading on the Internet
Hudson, J.; Kehoe, W.; Waddell, B.; and O’Rourke, J. S. (Editor)
The New York Stock Exchange investigates and fines financial services firm TD Waterhouse for
the inappropriate operation of its online trading system. Waterhouse’s WebBroker system
experienced a number of outages that prevented clients from having trades executed. Since
online trading has grown dramatically in recent years and is expected to continue growing, this
could be a critical juncture for TD Waterhouse if it wants to continue to compete in this market
segment. The company must develop a well-crafted communication strategy to address this
setback with its customers, the public, and other constituencies. 5 pp. Case #01-08. (2001)
Xerox Corporation and International Accounting Practices
McGuire, M.; Shaw, R.; and O’Rourke, J. S. (Editor)
Xerox faces problems on a number of fronts because of accounting irregularities uncovered by a
former assistant treasurer. Following his dismissal, he files a wrongful termination suit, and the
story is published in The Wall Street Journal. The U. S. Securities and Exchange Commission
begins an investigation of Xerox’s financial troubles. Relations with investors, creditors, and
employees are strained due to poor financial performance, large debts, and management
restructuring. Once a market giant, Xerox must now salvage its reputation to survive. 6 pp. Case
#01-07. (2001)
United Airlines Customer Service in the Summer of 2000
Gallagher, J.; O’Neill, K.; Putney, M.; and O’Rourke, J. S. (Editor)
United Airlines struggles to meet basic customer expectations in the summer of 2000. Labor
disputes, weather problems, and the basic airline infrastructure create problems that are
beginning to defile the airline’s name. Airline Quality Ratings are down, revenues are down, and
the media are taking advantage of United’s embarrassing situation. United enacts a 12-point
customer service plan. It improves technology for customers and customer service
representatives. Finally, United launches an advertising campaign to regain customer trust and
loyalty. 12 pp. Case #01-06. (2001)
Napster: Intellectual Property Rights vs. Music for Free
Indart, R.; Brust, J.; Korth, H.; and O’Rourke, J. S. (Editor)
The Recording Industry Association of America (RIAA) insists that Napster, computer software
that allows users to download music for free, is an opportunity for large-scale piracy of its
members’ music. As Napster faces charges of copyright violations, clients face losing the benefit
of free music. The U. S. government is trying to keep pace with new technology, and the results
of the Napster case may set several important legal precedents. Napster must decide where to
form alliances, how to maximize the support of consumers, and how to continue to develop
strategies for long-term success above and beyond this ruling. 20 pp. Case #01-05. (2001)
29
Pacific Gas and Electric Corporation: Energy De-Regulation in California
Coons, N.; Daniels, C.; and O’Rourke, J. S. (Editor)
Pacific Gas and Electric Company (PG&E) is one of the largest electric and gas utilities in the
United States. Higher oil prices, interest rates, and the Clean Air Act of 1970 caused slowing
growth for the industry, but federal legislation is passed to stimulate competition. By 1997,
however, California legislation begins to restructure the electric industry to protect consumers
from high costs, forcing PG&E into financial ruin. As California residents begin to experience
rolling blackouts, PG&E must withstand the disaster that deregulation is causing the company, as
well as draft a plan to maintain relations with consumers, regulators, legislators, and others. 10
pp. Case #01-03. (2001)
General Motors Corporation and the Death of the Oldsmobile
Berent, J.; Meier, J.; and O’Rourke, J. S. (Editor)
Even with sleek, new designs made to compete with less expensive cars, new advertising
campaigns, and a new brand management system, the Oldsmobile is no longer profitable for
General Motors. General Motors must break the news and compensate Oldsmobile dealers and
owners. The company must consider which steps to take as it phases out the Oldsmobile brand,
as well as how it will communicate with dealers and consumers in a fair manner, even as sales of
the brand begin surging. 20 pp. Case #01-02. (2001)
Lucent Technologies: Sustaining the Brand Identity of a Blue Chip Spinoff
Clark, C.; DiCicco, S.; and O’Rourke, J. S. (Editor)
Lucent Technologies, introduced to the market in 1996 as a spinoff of AT&T, was faced with
restructuring problems of its own by the autumn of 2000. As a major player in optical, data, and
wireless networking, along with operations in web-based enterprise solutions, communications
software, and network design and consulting services, Lucent Technologies executives viewed
their Enterprise Network Group as a candidate for divestiture. How could they spin off the
business and sustain the brand identity already established for the unit? What communication
alliances would they need? Would Wall Street punish or praise such a move? How would their
primary business partners react? How could they prepare for such a move and still retain
confidentiality? 5 pp. Case # 01-01. (2001)
Denny’s Restaurants: Creating a Diverse Corporate Culture
Abes, M. J.; Chism, W. B.; Sheeran, T. F.; and O’Rourke, J. S. (Editor)
The newly appointed CEO, Jim Adamson, had his work cut out for him as he tried to salvage the
tarnished image of Denny’s Restaurants. Denny’s was riddled with accusations of racial
discrimination at its restaurants. Lawsuits were pending and press coverage was increasing as
Adamson was faced with changing the fundamental corporate culture. (A) Case, 5 pp. (B) Case,
3 pp. Case # 00-31. (2000)
30
DoubleClick, Inc.
Ho, W.; Misquitta, A.; Williamson, J.; and O’Rourke, J. S. (Editor)
DoubleClick, an online advertising solutions company, purchased Abacus Direct, a marketer of
consumer purchase data, with the intent of combining the companies’ databases. DoubleClick
came under fire when privacy rights groups and the public feared their privacy would be
compromised by combining the databases and the technology itself. DoubleClick was forced to
implement a privacy plan to demonstrate its commitment to its customers’ satisfaction. (A)
Case, 6 pp. (B) Case, 1 p. Case #00-30. (2000)
Shell Oil Company UK and The Brent Spar
Hales, M.; Nikolov, N.; Parker, J.; and O’Rourke, J. S. (Editor)
Shell Oil Company UK faced a major controversy just prior to the proposed deep-sea disposal of
the Brent Spar, a large decommissioned platform. Special interest environmental groups along
with other European communities protested the disposal. Surprised by the intense protest, Shell
cancels the sinking and abandons the disposal of the Brent Spar until it is able to resolve the
issue. (A) Case, 6 pp. (B) Case, 5 pp. Case #00-29. (2000)
Bridgestone / Firestone, Inc. and Ford Motor Company: Crisis Management and a Product
Recall
Preis, J.; Lagueux, M.; and O’Rourke, J. S. (Editor)
The number one truck maker in the world, Ford Motor Company, and tire maker
Bridgestone/Firestone are involved in a massive recall of faulty Firestone tires used mostly on the
Ford Explorer vehicle. Reports of numerous deaths and serious injuries indicated that the tires’
treads had separated from their bases, causing vehicles to roll over. Congressional hearings
began while consumers were left to replace tires. 10 pp. Case #00-28. (2000)
Chicago Transit Authority
Northcut, J.; Tucker, K.; and O’Rourke, J. S. (Editor)
Facing a large budget deficit, the CTA discontinues service on some of its least profitable routes.
Unfortunately, many of those routes are in some of Chicago’s poorest neighborhoods. The CTA,
already under pressure for its lack of efficiency and convenience for the riders of the system,
must try to maintain the public’s trust and confidence. 4 pp. Case #00-27. (2000)
ValuJet: Disaster in the Everglades
Moore, N.; Ritter, A.; and O’Rourke, J. S. (Editor)
ValuJet, targeting cost-conscious consumers, was growing, proving that value can mean profits.
Tragically, the success ValuJet was enjoying was stripped away when a DC-9 jet crashed in
Florida killing 110 people. ValuJet, while seemingly sabotaged by its maintenance contractor
SabreTech, denied culpability in the accident. 8 pp. Case #00-26. (2000)
31
Mitsubishi Corporation and the Environment
Bonner, E.; Schaefer, J.; and O’Rourke, J. S. (Editor)
Mitsubishi Corporation is a 49% owner of a joint venture with the Mexican government called
Exportadora de Sal S.A. de C.V. (ESSA). ESSA produces and exports solar-produced salt. The
ESSA production facility is located in an environmentally sound area of Mexico with various
species of animals living in the habitat. In December of 1997, ninety-four endangered black sea
turtles were found dead near the salt facility as a result of the salt production. Mitsubishi and
ESSA are under intense criticism by environmentalists and the public because of the sea turtle
incident and ESSA’s plans to expand its production capabilities. 4 pp. Case #00-25. (2000)
Bank of New York: A Money Laundering Scandal
Fields, M.; Swain, M.; and O’Rourke, J. S. (Editor)
One of the country’s oldest banks is embroiled in a scandal involving the laundering of seven to
ten billion dollars. Key players include high level executives who used the failing Russian
market and Russian organized crime to move money from Russia to other countries. While there
may be a lack of a strong legal case against the Bank of New York, a crisis still exists. 6 pp.
Case #00-24. (2000)
Metabolife, Inc.
Gadawaski, K.; Lacey, M.; and O’Rourke, J. S. (Editor)
Mike Ellis, founder of Metabolife, faces the reality of a damaging report to be aired by the ABC
program 20/20. Metabolife manufactures herbal supplements and one of its top sellers,
Metabolife 356, is designed to stimulate weight loss and boost metabolism. The Metabolife 356
supplement is under intense scrutiny because of its possible damaging affects. In addition, Ellis’
personal background appears to be questionable.
6 pp. Case #00-23. (2000)
United Way Of America
Heath, K.; Porter, K.; Welch, S.; and O’Rourke, J. S. (Editor)
William Aramony, CEO of United Way of America, was accused of serious misconduct. A
reporter with the Washington Post investigated allegations and found that employees complained
of indiscretion and that Aramony grossly misused the organization financially. As the story
breaks, United Way reels from the scandal. 5 pp. Case #00-22. (2000)
AM General Corporation and the Hummer Plant Expansion
Silveus, T.; Sarzen, J.; Strilchuk, M.; and O’Rourke, J. S. (Editor)
Speculation surrounds the rumored agreement between General Motors and AM General to
market and manufacture the civilian version of the HMMWV, known as the “Hummer” H1.
Plant expansion would be critical to AM General’s ability to manufacture and sell the vehicle.
Success of the deal and ultimately the plant expansion is dependant on city cooperation, a
contract with the UAW, and most importantly the relocation of nearly 50 local residences from
their lifelong homes. 5 pp. Case #00-21. (2000)
32
Daimler-Benz Corporation and the Mercedes A-Class
Guerin, B.; Verot, C.; and O’Rourke, J. S. (Editor)
Trying to capture a younger market, Daimler-Benz spent $1.65 billion creating the compact,
practical A-Class model. The A-Class was hotly anticipated, but in October of 1997, the car
failed during the “moose avoidance test.” Daimler-Benz is faced with a direct threat to the stellar
reputation of its Mercedes-Benz auto brand. 5 pp. Case #00-20. (2000)
Fisher-Price Power Wheels
Rotnofsky, J.; Shields, E.; and O’Rourke, J. S. (Editor)
Mattel’s Power Wheels product is under intense scrutiny for safety flaws. Pressure to recall the
product mounts as the Consumer Product Safety Commission and the public demand answers. 5
pp. Case #00-19. (1999)
Southwest Airlines and the Succession of Herb Kelleher
Carr, G.; Gay, D.; Lutterbach, R.; and O’Rourke, J. S. (Editor)
After Herb Kelleher, CEO of Southwest Airlines, is diagnosed with cancer, speculation begins
about the future viability of the company. Kelleher has been a dynamic and innovative leader of
the company, employing unique management techniques. The question on everyone’s mind is:
Can Southwest survive without its leader? 4 pp. Case #00-18. (2000)
Sears, Roebuck, and Co. and The United Colors of Benetton
Hellwig, A. K.; Loughney, E. E.; and O’Rourke, J. S. (Editor)
The leading U.S. retailer, Sears, partnered with the Italian fashion house of Benetton to bring the
edgy, casual label into the Sears stores. In February of 2000, the strategic alliance became
strained when Benetton put out a controversial ad campaign which featured inmates on death
row. The “We on Death Row” campaign was met with protest by Sears’ employees and the
public alike. (A) Case, 7 pp. (B) Case, 4 pp. Case #00-17. (2000)
Sara Lee Corporation: The Listeriosis Crisis
Sabine, B.; Burciaga, F.; Fuller, K.; and O’Rourke, J. S. (Editor)
Sara Lee Corporation’s Bil Mar Food Plant was already under intense scrutiny for health
violations when an outbreak of listeriosis, an infection caused by eating food contaminated by the
bacteria Listeria monocytogenes, was linked to the plant. How should Sara Lee handle the crisis?
7 pp. Case #00-16. (2000)
Long Term Capital Management
Fee, F.J.; Meyer, M.C.; and O’Rourke, J. S. (Editor)
In June 1998, secretive hedge fund LTC suffered incredible losses when its value dropped
10.1%. The fund’s prior success had been too good to be true, and now the sudden loss in value
sent serious warning signs to Wall Street and financial markets around the world. Derivative
instruments used by LTC, in combination with Russian loan defaults and troubled Asian markets,
brought the fund into a crisis mode. The question of who would bail out the fund and at what
expense became a burning controversy for LTC and its investors. 8 pp. Case #00-15. (2000)
33
Christie’s and Sotheby’s: The Art World’s Price Fixing Scandal
Griffin, J.; Nemeth, S.; Flemming, J.; and O’Rourke, J. S. (Editor)
The world’s two high-end, venerable auction houses face serious allegations of cooperative
price-fixing. The U.S. Department of Justice began an investigation into the companies in 1997
and Christie’s offered information in exchange for immunity. Both companies face a serious
blow to their reputation while they wade through the profound charges of violating anti-trust
laws. (A) Case, 5 pp. (B) Case, 3 pp. Case #00-14. (2000)
Quality Dining and Bruegger’s Bagels
Mager, T.; Pedone, V.; O’Connor, J.; and O’Rourke, J. S. (Editor)
The expanding Quality Dining decided to merge with the popular bagel chain Bruegger’s Bagels.
While bagels seemed lucrative, the merger proved that popularity does not always breed success.
Many industry insiders believed Quality Dining had too much on its plate. The acquisition
proved a failure and even threatened the viability of the company itself. Quality Dining tries to
salvage its reputation. (A) Case, 5 pp. (B) Case, 3 pp. Case #00-13. (2000)
CD Universe and Internet Security
Delahanty, M.; Scott, B.; Simms, B.; and O’Rourke, J. S. (Editor)
A computer hacker threatens CD Universe with selling customers’ credit card information. CD
Universe takes immediate action to counter the intimidations of the hacker, but the customers’
security is breached. Now the company must try to allay the fears customers have about the
security of the CD Universe website. 8 pp. Case #00-12. (2000)
Texaco, Inc. : A Racial Discrimination Suit
Goria, T.; Reed, D.; Skendzel, D.; and O’Rourke, J. S. (Editor)
Texaco gained public attention when The New York Times reported on an audio tape with Texaco
senior managers making “disparaging comments about minorities.” Texaco was already in the
midst of a little-known discrimination suit when the report about the tape became public. The
company, now under fire for racial discrimination problems within the corporate culture, faces
the task of answering the allegations. (A) Case, 7 pp. (B) Case, 24 pp. Case #00-11. (2000)
BP Colombia: Accusations of Human Rights Violations
Delgado, R.; Garcia, A.; Villalobos, T.; Steedley, A.; and O’Rourke, J. S. (Editor)
British Petroleum’s investment in Colombia’s crude oil resources become threatened as
allegations of human rights violations and collusion with the Colombian government for
protection emerge. BP is faced with answering the charges while maintaining not only its image,
but also its interests in Colombia. (A) Case, 7 pp. (B) Case, 5 pp. Case #00-10. (2000)
34
Intel Corporation: The Pentium III Chip
Crawford, C.; McCullough, P.; Schlatterbach, M.; and O’Rourke, J. S. (Editor)
The world’s computer chip technology leader is faced with the dilemma of consumer privacy
versus the rapidly changing technology the company has developed. The Pentium III chip has the
capability of releasing a PSN which will provide information on users who access Internet web
sites. Intel proposes that the technology provides increased consumer security while privacy
advocacy groups claim there will be a loss of privacy and worse consumer information could be
shared with other companies. 5 pp. Case #00-09. (2000)
State Farm Insurance Company
Davis, F.; McLemore, K.; Orloski, S.; and O’Rourke, J. S. (Editor)
One of the country’s largest insurers and financial institutions faces a lawsuit by some
policyholders for the use of non-Original Equipment Manufacturer parts in the repair of damaged
vehicles. The lawsuit claims State Farm breached its contract by specifying non-OEM parts
(which are known to be inferior to OEM parts) on repair estimates without the consent of the
policyholder. 5 pp. Case #00-08. (2000)
Vitruvius Sportswear, Inc.: A Question of Online Privacy
O’Rourke, J. S.
A rapidly-growing west coast sportswear company confronts the conflicting values of corporate
data security and employee privacy. As a senior supervisor begins looking through a trusted
employee’s personal exchanges on the company’s e-mail server, a friend alerts the employee to
the supervisor’s activities. Just how private is e-mail and who should get to look at it? Where
should management balance individual desires for privacy with the need for organizational
security? 3 pp. Case #00-07. (2000)
Analyzing a Case Study
O’Rourke, J. S.
An instructional essay on how case studies are used in business education, particularly in MBA
programs. Focuses on why cases are an integral part of management instruction, the types of
cases used, and how they are researched and written. Of greatest importance to students is a
section on how to produce a case solution, both for classroom discussion and in writing. 8 pp.
Case #00-06. (2000)
A Collection Scandal at Sears Roebuck & Company
O’Rourke, J. S.
America’s second-largest retailer tries to bolster profits in its credit card division by aggressively
pursuing delinquent customers. Unknown to CEO Arthur Martinez and his senior team at Sears
is the company’s action against more than half-a-million credit card holders who had filed for –
and been granted – protection in bankruptcy court. Martinez ponders what to do as Federal
attorneys file criminal charges against the company. 4 pp. Case #00-05. (2000)
35
F. W. Woolworth Company: A New Image and a New Workforce
O’Rourke, J. S.
A venerable American firm finds the retail landscape changing and tries to adapt to a new set of
constraints and opportunities in the global economy. Along the way, a number of loyal, older
workers are summarily dismissed. Worse, many of them are asked to help recruit their much
younger, lower-paid replacements. 3 pp. Case #00-04. (2000)
Staples Inc.: Preparing the CEO for a Press Conference
O’Rourke, J. S.
Tom Stemberg, CEO of a discount office supply chain, prepares to address the press and public
at a media conference in California. Stemberg’s aim is to show why a Boston-based firm should
put its name on a new sports arena in Los Angeles. 3 pp. Case #00-03. (2000)
LaJolla Software, Inc.
O’Rourke, J. S.
A rapidly-growing and profitable west coast firm lands an attractive business partner in Japan to
help market its logistics and supply-chain management software. A senior marketing manager is
faced with the challenge of introducing the Japanese transition team to American business and
social customs. 4 pp. Case #00-02. (2000)
Coca-Cola and the European Contamination Crisis
Smith, H.; Feighan, A.; and O’Rourke, J. S. (Editor)
The world-leader in soft drinks confronts accusations of contamination in Coca-Cola products in
Belgium during the spring and summer of 1999. By failing to respond quickly and directly, CEO
Douglas Ivester risks consumer and investor confidence in his products and his company.
Worse, by failing to address cultural and political issues, Ivester calls into question his own
leadership. 10 pp. Case #00-01. (2000)
Food Lion
Crowley, B.; Keefe, S.; and O’Rourke, J. S. (Editor)
A rapidly-expanding retail grocery chain in North Carolina is the subject of an undercover
investigation by ABC Television’s PrimeTime Live. While company executives are shocked at
what they see on videotape, they are outraged by the deceptive tactics used to gain access to their
stores, and the selective, misleading way in which the tape is edited. Corporate reputation, share
price, and the company’s expansion strategy are all at stake as CEO Tom Smith and his corporate
communication team decide how to respond. (A) Case, 3 pp. (B) Case, 2 pp. Case #99-05.
(1999)
36
Northwest Airlines and the Blizzard of ‘99
Dutmers, A.; Littlejohn, L.; Lorch, C.; and O’Rourke, J. S. (Editor)
During a New Year’s weekend blizzard that produced 60-below zero wind chills and foot-deep
snowdrifts, Northwest Airlines left 34 planes on the tarmac at Detroit Metro Airport. Hundreds
of passengers were trapped without food, water, working toilets, or a way off the plane for as
long as eight hours. Northwest executives are confronted with angry customers, class action
lawsuits, and politicians pushing a “Passengers Bill of Rights” through Congress. (A) Case, 12
pp. (B) Case, 6 pp. Case #99-04. (1999)
Great West Casualty vs. Estate of G. Witherspoon
Gebbie, E.; Nemeth, J.; White, J.; and O’Rourke, J. S. (Editor)
An 81-year old woman is killed by a grain truck as she tries to cross a busy highway on her way
to work. In response, the trucking company’s insurer sues the woman’s estate for damages to the
truck. The greater damage is to the company’s corporate reputation. This cases focuses on the
role of corporate communication in legal decisions. (A) Case, 4 pp. (B) Case, 3 pp. Case #9903. (1999)
Chicago’s Museum of Contemporary Art: Biting the Hand That Feeds It
Wallen, R. J.; Riveiro, G.; Ledbetter, J.; and O’Rourke, J. S. (Editor)
A small but well-known art museum in Chicago offers a Board of Trustees seat to a donor who
pledges $5 million to underwrite expansion of the museum’s collection. Following a
disagreement about management of the museum’s assets, the donor repudiates the pledge. The
museum responds by suing the donor in circuit court. Everyone from art collectors to the mayor
to the local press develop an intense interest in the feud and the outcome. 22 pp. Case #99-02.
(1999)
Odwalla, Inc.
Halverson, S.; Rake, K. L.; and O’Rourke, J. S. (Editor)
A successful west coast producer of all-natural juice drinks confronts disaster when customers
are poisoned by E. coli bacteria in its unpasteurized products. CEO Greg Steltenpohl must
decide not only what to say to customers, shareholders, suppliers, and business partners, but
whether to change his company’s fundamental business practices. (A) Case, 11 pp. (B) Case, 2
pp. Case #99-01. (1999)
The Art of Listening: Becoming a Better Communicator by Becoming a Better Listener
O’Rourke, J. S.
An instructional essay in bullet-point form on the skills and strategies involved in human
listening. Focuses on motivations for becoming a better listener, ineffective listening habits,
developing good listening habits, the nature of active listening, and ideas for improving the
various dimensions of listening. 4 pp. Teaching Note #98-04. (1998)
37
American Rubber Products Company
O’Rourke, J. S.
The CEO of a $35-million manufacturing firm in the American Midwest is faced with an
executive’s worst nightmare: a boiler explosion that kills two employees and seriously injures
five others. This crisis management case takes the reader through a series of informationgathering and decision-making steps as the CEO and his senior team grapple with human tragedy
and calamitous business problems simultaneously. (A) Case, 5 pp. (B) Case, 2 pp. Case #9801. (1998)
American Electrical, Inc.: Managing an Environmental Crisis
O’Rourke, J. S.
A mid-size manufacturer of electrical equipment buys out a competitor and discovers improperly
disposed polychlorinated biphenyls on the property. Though he is guilty of no wrongdoing, the
CEO must move quickly to deal with the concerns of employees, shareholders, customers,
suppliers, and the neighboring community, which suspects the company of complicity in
contamination of the local water supply. 9 pp. Case #97-01. (1997)
Old Dominion Trust Company
O’Rourke, J. S.
An assistant broker in the mortgage banking division of a mid-Atlantic regional bank is faced
with the prospect of substituting for a more senior manager on short notice in a public speaking
situation. The case asks students to examine the issues related to the broker’s preparation for the
speaking opportunity, focusing on audience, purpose, and occasion. 2 pp. Case #96-02. (1996)
Cypress Semiconductor Corporation
Pollock, E. J. and O’Rourke, J. S.
A corporate CEO and a Catholic nun exchange letters about the composition of the corporation's
board of directors. The nun, speaking on behalf of a small group of shareholders, encourages a
CEO to appoint more qualified women and minorities to the board. The CEO drafts an
emotional reply which students are asked to edit. Issues include corporate board composition,
public relations, shareholder relations, correspondence composition, tone and style. 12 pp. Case
#96-01. (1996)
Lake Edna VA Medical Center: The Case of the MRSA Outbreak
O’Rourke, J. S.
Careless staff nursing practices facilitate the spread of a fatal disease. Issues include employee
communication, media relations, and patient-family relations. This case is designed to help
students prepare for a press conference. 6 pp. Case #94-12. (1994)
38
Lake Edna VA Medical Center: The Case of the Weekend Kitchen Fire
O’Rourke, J. S.
An unsupervised patient causes a fire in a Veterans Administration Hospital, forcing the
evacuation of the facility in mid-winter. Issues include patient-staff communication, community
relations, and media relations. The case is designed to help students prepare for a press
conference. 6 pp. Case #94-11. (1994)
Olive Garden Restaurants Division, General Mills Corporation
O’Rourke, J. S.
A diner in a national restaurant chain has a terrible customer-service experience and writes to the
CEO describing an evening in his restaurant. Issues include customer perceptions regarding
time, cheerfulness of service, and appropriate dialogue. 3 pp. Case #94-10. (1994)
Baxter International, Inc.: Corporate Values and the Arab League Boycott of Israel
Wilburn, L. and O’Rourke, J. S.
The role of ethics in decision-making is highlighted in this case study of the world’s largest
manufacturer of health-care products, systems and services. Between 1975 and 1993, Baxter
executives employed a range of tactics, from selective overseas investment to illegal disclosure
of proprietary information, to have the company’s name removed from the Arab League's fortyyear boycott of Israel. Includes ethical/legal issues, information management, and executive
decision-making. 6 pp. Case #94-09. (1994)
The Ethics of Resumes and Recommendations:
When Do Filler and Fluff Become Deception and Lies?
O’Rourke, J. S.
This case study describes the task of selecting a customer service manager from a stack of
resumes that range in disclosure and honesty from complete to partial, at best. Issues addressed
in the case include the categories and completeness of resume contents, obligations of a resume
writer, and the question of full disclosure vs. honesty composing professional resumes. 3 pp.
Case #94-07. (1994)
Spartan Industries, Inc.
O’Rourke, J. S.
A Midwest manufacturer of specialty metal products for the automotive industry is faced with
decisions about how to communicate employee promotions. Issues include notification of
employees selected for promotion, as well as those who are not, along with timing, publicity, and
confidentiality. 4 pp. Case #94-06. (1994)
39
Deerfield Hospital Supply, Inc.
Wigton, K. and O’Rourke, J. S.
A mid-size, non-union healthcare company confronts a racial incident on the loading dock.
Issues include leadership, cultural diversity, management structure, and conflict resolution. An
alternative version of issues discussed in Hayward Healthcare Systems, Inc. (94-05-2) 3 pp.
Case #94-05-1. (1994)
Hayward Healthcare Systems, Inc.
Wigton, K. and O’Rourke, J.S.
A mid-size, non-union healthcare company confronts a racial incident on the loading dock.
Issues include leadership, cultural diversity, management structure, and conflict resolution. An
alternative version of issues discussed in Deerfield Hospital Supply, Inc. (94-05-1) 3 pp. Case
#94-05-2. (1994)
Excel Industries, Inc.
O’Rourke, J. S.
A Midwestern U.S. manufacturer of window systems for the automotive industry decides to close
a company-operated, on-site daycare and learning center. Issues include strategic decision
making, corporate community and press relations, and ethical obligations to employees. (A)
Case, 5 pp. (B) Case, 2 pp. Case #94-03. (1994)
Dixie Industries, Inc.
O’Rourke, J. S.
A mid-size textile manufacturer in the American South is faced with accusations of gender bias
in corporate promotions and the threat of unionization from an informally-organized women’s
group. Issues include employee communication, information flow, and community and public
relations. 6 pp. Case #94-02. (1994)
Oak Brook Medical Systems, Inc.
Wigton, K. and O’Rourke, J. S.
Interpersonal communication style differences develop among managers in a mid-sized regional
medical supply firm. Intercultural differences based on gender, ethnicity, and age are involved.
Issues include managerial counseling for a highly-productive employee, as well as informationgathering and decision-making styles. 3 pp. Case #94-01. (1994)
Volvo of North America, Inc.
O’Rourke, J. S.
A valued customer is at odds with a manufacturer’s product warranty policies. Issues include
warranty expiration, franchisee responsibilities, customer service and communication. 2 pp.
Case #93-01. (1993)
40
Earl’s Family Restaurants
O’Rourke, J. S.
A role-play case study in listening involving conflicting perceptions of a supplier-client
relationship in the retail food industry. Students are asked to observe verbal as well as nonverbal interaction, interpersonal conversational style, and communication strategy in an exchange
between a food service manufacturer’s regional sales manager and the chief buyer for a 54-store
chain of mid-theme family restaurants. (A) Case, 3 pp. (B) Case, 3 pp. Case #92-05. (1992)
Sequoia Medical Supply, Inc.
O’Rourke, J. S.
A stable but slow-paying client in the healthcare industry creates receivables problems for a midsize supplier of medical diagnostic equipment and disposables. Issues include A/R supervision,
customer relations, and communication style/tone in collections. 6 pp. Case #92-04. (1992)
Waukegan Materials, Inc.
O’Rourke, J. S.
A regional building materials supply firm wants to establish a recurring recognition program for
outstanding employees. Issues include reward systems, employee communication, and media
relations. 2 pp. Case #92-03. (1992)
Great Lakes Garments, Inc.
O’Rourke, J. S.
A mid-size manufacturer of ladies’ and children’s ready-to-wear is faced with short-term cashflow problems and elects to downsize the company. Issues include communication of employee
layoffs, maintenance of high productivity and morale among employees retained, and community
and media relations. 4 pp. Case #92-02. (1992)
Farberware Products of America
O’Rourke, J. S.
A dissatisfied customer returns a defective product to a retailer but is told to deal directly with
the manufacturer. The product's producer is faced with questions of how to handle the issues of
manufacturing defects, retailer relationships, customer relations, and product-package
communications. 2 pp. Case #92-01. (1992)
Buon Giorno Italian Foods, Inc
O’Rourke, J. S.
A regional manufacturer of canned food products faces the nightmare of a product recall
involving lethal botulism bacteria. Issues include media relationships, producer responsibilities,
and crisis communication. 3 pp. Case #91-02. (1991)
41
O’Brien Paint Company
O’Rourke, J. S.
A national paint and protective-coatings manufacturer experiences a plant fire in the Midwest.
Issues include community relations, media relations, and crisis communication. 3 pp. Case #9101. (1991)
42
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