100 best-selling cases, 2005 edition - The Case Centre · 303-001-1 2003SPECIALOLYMPICSWORLD SUMMERGAMES:MANAGINGA STAKEHOLDERNETWORK McNamara,P Murray,G Grampp,C Brown,P MichaelSmurfitGraduateSchoolof

ecch the case for learning

2005 edition

100 best-selling cases

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This bibliographical supplement presents the 100 best-selling cases from theecch catalogue during 2004. It incorporates abstracts of all the cases and fullbibliographical details such as setting, topics and details of any teaching note.Visit the ecch website at www.ecch.com to view and download a pdf version ofthe bibliography.

Cases appear alphabetically by title, each with its own entry. Teaching notes donot have separate entries. Their reference numbers and lengths appear withinthe corresponding case entry.

Case entry:

404-015-1KIDNAPPED IN COLOMBIA

Rarick, CABarry University, Florida

Dan and Melissa Woodruff, an Americancouple,moved to Medellin, Colombiawhen Dan is offered a position with his.....

Colombia; Textiles; 275 employees;2001

KidnappedColombiaPolitical risk

9ppLibrary404-015-8 (4pp)

Reference numberTitle

Author(s)Author’s institution

Abstract

Setting

Topics

LengthSourceTeaching note (length)

Reference numberThis is the number to use when ordering the item.

TitleCases in a series are generally denoted by the use of (A), (B), (C) etc.

Author(s)The individual(s) listed either wrote or supervised the writing of the case.

Author’s institutionWhere there are multiple institutions, their names will appear directly under thecorresponding author(s).

AbstractThe abstract summarises the content of the case and its teaching objectives.

SettingThis provides information on the geographical location of the subject of the case, the typeof industry, the size of the organisation and the year(s) of the case event.

TopicsThese are key words, subjects and issues within the case which are supplied by the author(s).

LengthThe length is given either in pages or in minutes if a video; if the item is a CD-ROM this willbe indicated here; s/w means software.

SourceThis relates to the main source of data:Field Field-based researchLibrary Published sourcesGen exp Generalised experience

Teaching note (length)If a teaching note is available for the case its reference number will appear here followedby its length in pages in brackets.

How to use the case bibliography

Case search at www.ecch.com

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Visit the case search section of the ecch website to identify relevant cases fromthe ecch collection and view over 21,000 full text inspection copies. To searchthe database of over 41,000 items, you have two options: Advanced searchand Quick search. Once you have identified your case, you can order a paperinspection copy or, if authorised, preview it on-line.

Advanced search helps you identify a case that most closely meets yourrequirements. Refine your search by selecting up to four of the following andadditional specific options (eg publication year). The more criteria you select,the more refined your search will be:

• reference number • abstract• title • topic• author • industry• author’s institution • geographic location

Quick search enables you to find a particular case you know of, by inputtingone piece of accurate data (eg reference number or featured company). Be specific,because quick search will display all entries where an exact match is found.

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need help to findthe right case?

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European Case Awards 2005

Overall winner

602-010-1MARKS AND SPENCER AND ZARA: PROCESS COMPETITION IN THETEXTILE APPAREL INDUSTRYMichael Pich, Ludo Van der Heyden and Nicolas HarléINSEAD

Entrepreneurship

802-030-1THE RENOVO STORY (A):VENTURE CAPITAL AT THE CUTTING EDGESimon BarnesImperial College London,Tanaka Business School

Finance, Accounting and Control sponsored by IBS, Hyderabad

201-001-1GREAT EASTERN TOYS (A)Gabriel Hawawini and Lee RemmersINSEAD

Human Resource Management / Organisational Behaviour

400-003-1ALICE INWONDERLAND? A DIFFERENT APPROACH TOORGANISATIONAL CHANGEManfred Kets de Vries, Helene Gorter-Van Gorp and Elizabeth Florent-TreacyINSEAD

Knowledge, Information and Communication Systems Management

903-012-1KNOWLEDGE MANAGEMENT AT SIEMENS SPAINRafael Andreu, America Grau, Emma Lara and Sandra SieberIESE

Marketing sponsored by The Chartered Institute of Marketing

IMD-5-0537MEDI-CULT: PRICING A RADICAL INNOVATIONNirmalya Kumar and Brian RogersIMD

Production and Operations Management

603-002-1ZARAKasra Ferdows McDonough School of Business, Georgetown UniversityJosé AD Machuca Universidad de SevillaMichael LewisWarwick Business School

Strategy and General Management

302-033-1THE TRANSFORMATION OF BPSumantra Ghoshal, Lynda Gratton and Michelle RoganLondon Business School

303-001-12003 SPECIAL OLYMPICSWORLDSUMMER GAMES:MANAGING ASTAKEHOLDER NETWORK

McNamara,PMurray,GGrampp,CBrown,P

Michael Smurfit Graduate School ofBusiness,UCD

It’s June 2002 – just one year before theworld’s largest sporting event of 2003 willbe held in Ireland’s capital city,Dublin.The 11th Special OlympicsWorldSummer Games will bring together over7,000 athletes with a learning disabilityfrom 166 international delegations.Thesporting competition will take place overnine days,across more than 22 venues inDublin,with the wider Games embracingthe whole island of Ireland.Theorganisational task is immense.Thechallenge for Mary Davis,CEO of 2003Special OlympicsWorld Summer GamesLimited, is to achieve this mission with acash budget of 34million euros and afurther 23million euros through in-kindproduct and service donations.The caseis rich in quotes giving direct voice to thefivemain stakeholders:corporatesponsors (eg Bank of Ireland,Toyota,etc),government,30,000 volunteers,2003Special OlympicsWorld Summer GamesLimited (the nodal firm) and athletes.Interviewees include a diverse groupranging from the sponsorshipmanagement of the Games PremierSponsor,volunteers, the CEO andmanagers of the nodal firm,and AnTaoiseach,Bertie Ahern (PrimeMinister ofIreland).The primary teaching focus is onthe strategic management of networks ofstakeholders.Teaching experience withthis case has shown that the scale of thetask,namely delivering the largestsporting event in the world on such alimited financial and human resourcebudget,and the novelty with whichthese resource gaps are bridged,challenges students to consider thecomplexity faced by a CEO inmanaging anetwork of stakeholders.Students havethe opportunity to consider fundamentalquestions such as:What are theunderlying objectives of eachstakeholder?Why does such a diverserange of stakeholders co-operate in thedelivery of the Games? Are allstakeholders equally salient at all times?Is the key tomanaging a network ofstakeholders recognising both theunderlyingmotivations of eachstakeholder group and the variance of

their relative importance across time?Supporting this case is a suit of videos(available for free on the web) that bringsthe athletes,Games and stakeholders tolife.The video clips feature the athletestalking about their experiences aspersons with a learning disability, footagefrom the 1999 Games and a promotionalvideo featuring corporate sponsors,government, the nodal firm and athletes(http://www.ucd.ie/~busadmin/petermcnamara.htm).The teaching note waswritten by Peter Mc Namara,CarolineGrampp and Paul McGrath.

2002 - 2003OlympicsStakeholdermanagementSponsorshipCause relatedmarketingSocial responsibilityStrategyOrganisational structureVoluntary sectorSportLearning disabilityGovernment-public-privatepartnershipSocial legitimacy

27 ppFIELD303-001-8 (20pp)

UVA-E-0092A NOTE ON FIVE TRADITIONALTHEORIES OFMORAL REASONING

Werhane,PHDarden Business Publishing,DardenGraduate School of BusinessAdministration

Business decisions,by their nature,involve ethical considerations because:(1) most economic decisions are choiceswhere the decisionmaker could havedone otherwise; (2) every decision oraction affects people;and (3) everydecision or set of decisions is embeddedin a belief system that presupposes somebasic values or their abrogation.The taskof justifyingmoral beliefs and integratingthem into business situations and theprocess of applying ethical standards toeveryday decisionmaking areincomplete and can be exasperating.Butthe business manager has recourse tothe long tradition of ethical study.Thisnote outlines some of the basic termsused in the study of ethics and describesthe task of business ethics.Mostimportant, the text describes five theoriesof moral reasoning – utilitarianism, rule-

basedmorality, a rights approach,acontemporary Aristotelian approach tovirtuous character, and social justice –that set out minimum standards for anacceptable moral decision that can serveas criteria for moral business judgements.

Business ethics

11 pp

UVA-E-0179A NOTE ONQUESTIONABLEPAYMENTS IN BUSINESS

Freeman,REWerhane,PHLee,ATolbert,C

Darden Business Publishing,DardenGraduate School of BusinessAdministration

Written to accompany‘QuestionablePayments’ (UVA-E-0178), this noteprovides insights into the issue ofquestionable payments (eg,bribery andextortion).

Corporate cultureBriberyCultural conflictEthical issues

10 ppLIBRARY

9-796-128AFRICAN COMMUNICATIONS GROUP

McGahan,ACoxe,DO

Harvard Business School

Describes the opportunities thatconfront the African CommunicationsGroup,an entrepreneurial organizationthat plans to introduce a wirelesspay-phone system in Tanzania.Provides afoundation for the analysis of valuecreation and of value capture.Thepossibility of entry by other companies,the presence of a large supplier, anduncertainties about demand all createimportant tradeoffs for the new venture.Used in an advanced course incompetition and strategy to introduce aframework for evaluating a new businessbased on existing technologies.Principalconcepts include value creation andcapture,competitor analysis, supplierevaluation,and financial forecasting.

AfricaCompetition


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Decision analysisEntrepreneurshipIndustry structureTelecommunications

20 ppFIELD5-797-029 (29pp)

OD1AAGILENTTECHNOLOGIES:ORGANIZATIONAL CHANGE (A)

Carroll,GRBarnett,WPChang,V

StanfordUniversity

On 2March,1999,Hewlett-Packard (HP)announced a plan to create a separatecompany, subsequently named AgilentTechnologies,made up of HP’sbusinesses in test andmeasurement,semiconductor products,healthcaresolutions,chemical analysis, and therelated portions of HP laboratories. Indeveloping the transformation strategy,Agilent President and CEO,Ned Barnholt,grappled with how to improve theefficiency and effectiveness of the newcompany while still maintaining the bestportions of HP’s culture and practices.Barnholt adopted HP’s values ofinnovation and contribution, trust andrespect for individuals, anduncompromising integrity,but he addedthree new values: speed, focus,andaccountability.Barnholt also wanted toimprove the company’s efficiency interms of shared services. In mid-2001, theAgilent team faced a series ofunexpected challenges.On 5 April, 2001,Barnholt announced that businessconditions had worsened further thanpreviously expected.Barnholt wonderedwhether he and his team had gone toofar in the organizational and culturalchanges they had tried to implement.Hewondered whether his vision of speed,focus,and accountability would becompatible with HP’s legacy values andculture,and if so,howwould he integratethe two? The teaching purpose is forstudents to analyze how a company suchas Agilent grappled with the challengesof transforming an ingrained HP culturewithin a brand newwork environment.Students will get a sense of thechallenges spun-off companies such asAgilent face,assess Agilent’s strategiesand implementation,and recommendadditional strategies and steps.

46,000 Employees; $10.8 billion revenues;2000 - 2001

Computer industryCorporate reorganizationHigh technologyNewprocessOrganizational changeOrganizational designOrganizational developmentOrganizational managementOrganizational problemsSpinoffs

35 ppFIELD

9-201-028AIRBUS A3XX:DEVELOPINGTHEWORLD’S LARGEST COMMERCIAL JET(A)

Esty,BCKane,M


In July 2000,Airbus Industrie’s supervisoryboard is on the verge of approving a $13billion investment for the developmentof a new super jumbo jet known as theA3XX that would seat from 550 to 1,000passengers.Having securedapproximately 20 orders for the new jet,the boardmust decide whether there issufficient long-term demand for theA3XX to justify the investment.At thetime,Airbus was predicting that themarket for very large aircraft (VLA), thoseseatingmore than 500 passengers,wouldexceed 1,500 aircraft over the next 20years and would generate sales in excessof $350 billion.According to Airbus, itneeded to sell 250 aircraft to break even,and could sell as many as 750 aircraftover the next 20 years.This case exploresthe two sets of forecasts, and asksstudents whether they would proceedwith the launch given the size of theinvestment and the uncertainty inlong-term demand. Illustrates the basiceconomics of large projects and thecomplexity in estimating even top-linedemand for products with useful lives ofup to 50 years.Also illustrates the role ofgovernments in large projects,both asinvestors and as customers.Finally itexplores the competitive dynamicsbetween amonopolistic and a potentialentrant in which entry costs exceed $10billion.

2000Aerospace industryBusiness government relationsCapital expenditures

Corporate strategyDemand analysisProduct developmentProduct positioningProject financeValuation

20 ppLIBRARY5-201-040 (31pp)

9-800-269AIRTEX AVIATION

Hall,BMadigan,C


Two young and inexperiencedMBA’s buya virtually bankrupt company.Theydesign a decentralized control systemorganized around profit centers.As a casein control systems, there is ample detailfor a discussion of design issues,controlof independent profit centers, and detailsabout decentralized control.A rewrittenversion of an earlier case.

1996 - 1998

AircraftControl systemsDecentralizationEntrepreneurshipInformation systemsManagement accountingProfit centers

16 ppFIELD

300-014-1AMAZON.COM:FROM STARTUPTOTHE NEWMILLENNIUM

Stockport,GJStreet,D

University of CapeTown

This case analyses the growth ofAmazon.com from 1994 to 1999. Itprovides an ideal case on emerginge-commerce strategies and strategicthinking because of its first moverdevelopment and prominence, itsaccelerated growth and its recent andrapid emergence as a significante-commerce player.Amazon.com’sdevelopment is significant because of itsstrategic approach in a still emergingindustry, its dominance over moretraditional retailers, as well as its explosivegrowth in new products, services andnew geographical areas.The case also


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provides an example within thee-commerce environment.

1994 - 1999e-CommerceBusiness growthDefining the businesse-Business designStrategic choiceCompetitor analysisLeadership and culturee-Commerce and profitability

43 ppLIBRARY300-014-8 (19pp)

9-502-030AQUALISA QUARTZ: SIMPLY A BETTERSHOWER

Moon,YHerman,K


Harry Rawlinson is Managing Director ofAqualisa, a major UKmanufacturer ofshowers.He has just launched themostsignificant shower innovation in recenthistory: the Quartz shower.The showerprovides significant improvements interms of quality, cost, and ease ofinstallation. In product testing, the Quartzshower received rave reviews from bothconsumers and plumbers alike.However,early sales of the Quartz have beendisappointing.Rawlinson is now facedwith some key decisions about whetherto change his channel strategy,promotional strategy,and the overallpositioning of the product in the contextof his existing product line.Designed toillustrate the challenges associated withbringing a new product tomarket.Allowsfor a rich discussion of customer behavior(including end consumers and installers).In addition,allows for an in-depthdiscussion of the positioning of a newproduct within the context of an existingproduct line and the use of multiplebrands tomanage products across theirlifecycle.

8million sterling (pounds);2001

Consumer behaviorConsumermarketingDistribution channelsMarket entryMarket positioningMarketing strategyProduct developmentProduct introduction

Product positioningUnited Kingdom

19 ppFIELD5-503-058 (23pp)

394-049-1BANCO COMERCIAL PORTUGUÊS(1993)

de Pommes,CTaubman,CDoz,YHorwitch,M

INSEAD-THESEUS,Fontainebleau

The case describes the rapiddevelopment of BCP into one of thelargest banks in Portugal,with six distinctnetworks and hundreds of branches. Itsgrowth was based largely on a strategy ofcustomer responsiveness, rooted in asophisticated approach tomarketsegmentation and in a bold use ofinformation technology and innovationto gain competitive advantage. The casealso discusses the sustainability of thiscompetitive advantage in the face of1993,competitive imitation and internalcomplexity and growing formalization.Topics covered are strategic analysis and‘strategic window’, strategiccommitments and the building ofbarriers to competitive imitation,as wellas new venture risks and returns,sustainability of competitive advantagebased on a service innovation and therole of information technology choices inbuilding this advantage. There is aSpanish translation available(E394-049-1).

Portugal; Retail banking;Medium sizebank; 1986 - 199343 ppFIELD394-049-8 (15pp)

9-591-133BARCO PROJECTION SYSTEMS (A):WORLDWIDE NICHEMARKETING

Moriarty, Jr,RTMcQuade,K


Deals with the issue of nichemarketingin a worldwidemarket.Barco ProjectionSystemsmakes video,data,and graphicstet projectors for the industrial market.They have traditionally been the

performance leader. In August 1989,SonyCorp introduced a higher performancegraphics projector at a considerablylower price than Barco’s existingprojector.As a result,Barco is faced withbeing pre-empted in their fastestgrowing segment by a competitor withmuch larger resources.Deals with how asmall niche player deals withconsiderably larger competitors in aglobal environment.

$50million revenues;1989 - 1990

Industrial marketsInternational marketingMarketing strategyProduct developmentProduct lines

19 ppFIELD5-592-098 (12pp)

9-673-057BENIHANAOFTOKYO

Sasser, Jr,WEKlug, JR


Discusses the development of a chain of‘theme’restaurants.The student is askedto evaluate the current operatingstrategy and suggest a long-termexpansion strategy.

1972Corporate strategyExpansionMultinational corporationsRestaurantsServices

17 ppFIELD5-696-021 (11pp)5-677-037 (5pp)

9-598-150BIOPURE CORPORATION

Gourville, JHarvard Business School

It is early 1998 and Biopure Corp,a smallbiopharmaceutical firmwith no salesrevenues in its ten-year history,has justreceived government approval to releaseOxyglobin,a revolutionary new‘bloodsubstitute’designed to replace the needfor donated animal blood in theveterinary market.A virtually identical


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product for the humanmarket,Hemopure, is in the final stages of testingby Biopure and is expected to gainapproval within one to two years. Inresponse to the timing of approval forthese two products, there has been along-running debate within Biopure ashow to proceed with Oxyglobin.At oddsare those in charge of Oxyglobin,whowant to see the animal product releasedimmediately, and those in charge of theHemopure,whoworry that an immediaterelease of Oxyglobin would create anunrealistically low price expectation forwhat they feel should be a veryhigh-margin human product.Exacerbating the problem is the nature ofthe biopharmaceutical industry,whereproduct approval is never a certaintyuntil achieved.The teaching purpose isto introduce the concepts of marketsegmentation,product line policy,andmulti-product pricing.Also introducesstudents to the unique businessdynamics of the biotechnology industry.

150 Employees;1995 - 1998

BiotechnologyMarket segmentationMarketing strategyNewproductmarketingPricing strategyProduct lines

18 ppFIELD5-599-094 (14pp)

9-158-001BIRCH PAPER COMPANY

Harlan,NERotch,W


Involves transfer pricing among threedivisions of a company.

Cost analysisDecentralizationPaper industryTransfer pricing

2 ppFIELD5-199-057 (9pp)

9-794-079BITTER COMPETITION:THE HOLLANDSWEETENER CO vs NUTRASWEET (A)

Brandenburger,ACostello,MKou, J


The NutraSweet Co has very successfullymarketed aspartame,a low-calorie,high-intensity sweetener,around theworld.NutraSweet’s position wasprotected by patents until 1987 inEurope,Canada,and Japan,and until theend of 1992 in the United States.The caseseries describes the competition thatensued between NutraSweet and theHolland Sweetener Co (HSC) followingHSC’s entry into the aspartamemarket in1987.Subsequent move andcountermove in both themarketplaceand the courts are described.Ends withthe final countdown to the expiration ofNutraSweet’s US patent.Provides anopportunity to study a game in businessthat takes place at two levels:There is thesurface game of tactics; and there is alsothe underlying game of value.At thetactical level, there are various points atwhich NutraSweet or HSCmade amovewith a view to shaping the perceptions ofthe other player.Turning to theunderlying game of value, there are theactions that NutraSweet took during theperiod of patent protection.Theseactions served tomaintain NutraSweet’sadded value in the post-patent game,and to deny added value to challengers.

$2 billion revenues;1965 - 1992

BeveragesCompetitionFoodPatentsStrategy formulation

14 ppFIELD5-795-164 (28pp)

UVA-F-1017BOEING 777

Bruner,RFGollish,DClausen,HKoggersbol,NChristey,P


The general objective of this case is toexercise students’skills in estimating aweighted-average cost of capital andcost of equity.The specific need toestimate a segmentWACC draws outstudents’abilities to critique differentestimates of beta and tomanipulate thelevered-beta formulas.Thus the caseprovides a completemenu ofcapital-cost estimation opportunities.

1990

Capital asset pricingmodelCapital budgetingCapital investmentCompetitive analysisCost of capitalValuation

26 ppLIBRARYUVA-F-1017TN (12pp)

9-198-088CAFESMONTE BIANCO: BUILDING APROFIT PLAN

Simons,RLDavila,A


Using an income statement,balancesheet,and projected demand and costschedules, students are required to builda profit plan for a closely-held coffeemanufacturer in Italy.Students mustestimate cash flow and ROE and use thisanalysis to evaluate the attractiveness ofa new strategy.

1997BeveragesItalyPerformancemeasurementPlanning systemsProfit planningProfitability analysisReturn on investment

8 ppGEN EXP5-101-044 (21pp)

9-592-035CALYX & COROLLA

Salmon,WJWylie,D


Describes a new entry into the $8 billionflower industry in the United States.Combining the use of overnight air


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freight (Federal Express), informationtechnology,an 800 number,and acatalog,Calyx & Corolla was changing theway flowers had traditionally beendistributed,bypassing three layers ofdistribution,and providing very freshflowers directly from the growers toconsumers.Frames the question of howthis start-up venture should grow.

30 Employees; $10million revenues;1991

AgribusinessDistribution planningInformation systemsInformation technologyRetailing

31 ppFIELD5-596-116 (10pp)

392-031-1CANON:COMPETING ONCAPABILITIES

Ghoshal, SAckenhusen,M

INSEAD,Fontainebleau

The case describes how Canon hassustained a very high growth rate bycontinuously building new capabilitiesand exploiting these capabilities. Inparticular, the case focuses on thecompany’s organisational structures andmanagement processes that support itsability to build and leveragecompetencies.The case provides avehicle for teaching the resource or corecompetency-based view of strategy. Itallows students to understand how suchan approach differs from andcomplements themore traditionalconceptualisation of strategy, focused onindustry structure.Further, it also providesan opportunity to discuss theorganisational attributes necessary tomanage a company as a portfolio ofcapabilities. There are French,Spanishand Basque translations of this caseavailable (F392-031-1), (E392-031-1) and(BQ392-031-1). **ecch European CaseAwards CategoryWinner 1996**

Worldwide; Photocopiers;Up to 1990Organisational structureStrategyBackground informationEmployee participation

23 ppLIBRARY

9-296-049CASE OFTHE UNIDENTIFIEDINDUSTRIES – 1995

Fruhan, Jr,WEHarvard Business School

Helps students to understand how thecharacteristics of a business are reflectedin its financial statements.Predict the 11firms/industries that are represented by11 sets of financial/statements.

1995Financial managementFinancial ratios

2 ppLIBRARY5-297-049 (7pp)

9-495-031CHARLOTTE BEERS AT OGILVY &MATHERWORLDWIDE (A)

Ibarra,HSackley,N


Examines Beer’s actions on assumingleadership of Ogilvy &MatherWorldwide,the world’s sixth largest advertisingagency,during a period of rapid industrychange and organizational crisis.Focuseson how Beers, the first outsider CEO,engages and leads a senior team througha vision formulation process.Chroniclesclosely the debates among seniorexecutives struggling to reconcilecreative, strategic,and global vs localpriorities.Sixteenmonths later,with avision statement agreed upon,Beersfaces a series of implementationproblems.Turnaround has begun,butorganizational structures and systems arenot yet aligned with the firm’s newdirection.Concludes as Beers mustdecide how to work best with her seniorteam to achieve alignment in 1994.

7,000 Employees; $750million revenues;1992 - 1993

AdvertisingLeadershipMultinational corporationsOrganizational change

18 ppFIELD5-495-033 (16pp)

9-495-032CHARLOTTE BEERS AT OGILVY &MATHERWORLDWIDE (B)

Ibarra,HSackley,N


Updates CEO Beers’progress two yearsafter her initiation of a massiveorganizational change effort.Designed asan in-class handout.

AdvertisingLeadershipMultinational corporationsOrganizational change

2 ppFIELD5-495-033 (16pp)

9-595-026CITIBANK: LAUNCHINGTHE CREDITCARD IN ASIA PACIFIC (A)

Rangan,VKHarvard Business School

Consumer Bank pondered thepossibilities of launching a credit card inthe Asia Pacific region.The bank’s NewYork headquarters, and several of itscountry managers in the region,were notenthusiastic.But others were supportivebecause of the opportunity to expandthe bank’s customer base from thelimited branch expansion allowed bylocal law.Students make a decision,and ifa ‘go’decision is made, they work out acomprehensive launch plan.Theteaching purpose is to expose studentsto services marketing and,moreimportantly, the notion of acquisitioncost and lifetime value of a customer.Alsointroduces students to internationalmarketing issues.

$200million revenues;1989

AsiaConsumer creditInternational marketingMarketing strategyPricingProduct introductionProduct positioningServicemanagement

25 ppFIELD5-595-104 (14pp)


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9-198-048CITIBANK:PERFORMANCEEVALUATION

Simons,RLDavila,A


Citibank has introduced a new,comprehensive performance-scorecardsystem.A regional president struggleswith a tough decision:how to evaluate anoutstanding branchmanager who hasscored poorly on an important customersatisfactionmeasure.This case provides ascoring sheet to be completed by thereader and an explanation of theramifications of the decision for thebusiness’s strategy.

1996BankingControl systemsIncentivesPerformance appraisalPerformancemeasurementStrategy implementation

9 ppFIELD5-199-047 (13pp)

9-187-081CODMAN& SHURTLEFF, INC:PLANNING AND CONTROL SYSTEM

Simons,Robert LHarvard Business School

Detailed description of the planning andcontrol systems in use at Johnson &Johnson.Focuses on the actions ofmanagers in one subsidiary in revisingbudget targets. Illustrates intensivestrategic planning and financial planningprocess in a large,decentralizedcompany. Includes interviews with thepresident and senior executivesconcerning benefits of the system.Raisesissue of the role of formal control systemsin decentralized organizations.

75,000 Employees ; 1986BudgetingControl systemsDecentralizationPlanning systemsStrategic planning

17 ppFIELD5-188-029 (9pp)

9-702-442COLAWARS CONTINUE:COKE vsPEPSI IN THETWENTY-FIRSTCENTURY

Yoffie,DBWang,Y


Examines the industry structure andcompetitive strategy of Coke and Pepsiover 100 years of rivalry.New challengesof the twenty-first century includedboosting flagging domestic cola salesand finding new revenue streams.Bothfirms also began tomodify their bottling,pricing,and brand strategies.They lookedto emerging international markets to fuelgrowth and broaden their brandportfolios to include non-carbonatedbeverages like tea, juice, sports drinks,andbottled water.For over a century,Coca-Cola and Pepsi-Cola had vied forthe ‘throat share’of the world’s beveragemarket.Themost intense battles of thecola wars were fought over the $60billion industry in the United States,where the average American consumes53 gallons of carbonated soft drinks(CSD) per year. In a ‘carefully wagedcompetitive struggle’, from 1975 to 1995both Coke and Pepsi had achievedaverage annual growth of around 10% asboth US andworldwide CSDconsumption consistently rose.This cozysituation was threatened in the late1990s,however,when US CSDconsumption dropped for twoconsecutive years and worldwideshipments slowed for both Coke andPepsi.Considers whether Coke’s andPepsi’s era of sustained growth andprofitability was coming to a close orwhether this apparent slowdownwasjust another blip in the course of acentury of enviable performance.Industry and competitor analysis.Arewritten version of an earlier case byMichael E Porter and David BYoffie.

2000BeveragesCompetitionCorporate strategyIndustry analysisIndustry structureInternational business

24 ppLIBRARY5-703-403 (11pp)

9-394-060CONFLICT ON ATRADING FLOOR (A)

Badaracco, Jr, LUseem,J


A junior salesperson on FirstAmericaBank’s trading floor is assisting a topsalesperson,Linda,on a deal to financethe construction of a new cruise ship forPoseidon Cruise Lines.While the terms ofthe deal are being worked out,he realizesLinda has taken advantage of thePoseidon executives’unfamiliarity withcomplex financial structures to build anoutrageously high profit margin into thedeal.When the executives becomesuspicious of the prices FirstAmerica isquoting,Linda asks the protoganist tosend them an intentionally misleadingfax so that the deal will not be held up.Holding the personal belief that ‘before ablindman you shall not put a stumplingblock’,he does not know if he can bringhimself to send the information.Theteaching purposes to give students achance to think about ethical dilemmasthey are likely to face in the businessworld.Howwould they react in asituation in which they are underenormous outside pressure to dosomething that runs counter to theirethical values?

1986Commercial creditEthicsForeign exchangeSecuritiesValues

5 ppFIELD5-394-194 (7pp)

9-394-061CONFLICT ON ATRADING FLOOR (B)

Badaracco, Joseph L., Jr.Useem,J


Supplements the (A) case.

Commercial creditEthicsForeign exchangeSecuritiesValues

1 ppFIELD5-394-194 (7pp)


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9-396-201CORPORATE PURPOSE ANDRESPONSIBILITY

Paine,LHarvard Business School

Presents several conceptions ofcorporate purpose and responsibility asarticulated by a variety of groups andindividuals during the period 1970-1995.Included arematerials from the BusinessRoundtable, the American Law Institute,the Royal Society of Arts andManufacturers (UK), the US CatholicBishops,and excerpts from the writingsof economist Milton Friedman andlawyer Christopher Stone.A briefintroduction provides historicalbackground on the corporateresponsibility debate.

Corporate responsibilityEthics

17 ppNote

9A98A005DELTA GRAND PACIFIC HOTEL

Kennedy, JRGleave,T

Richard Ivey School of Business

The director of sales andmarketing forthe Delta Grand Pacific Hotel in Bangkok,Thailand,needed to devise amarketingstrategy that would ensure the hotel’ssuccess in its very competitivemarket.Hewanted to ensure that the hotel maintainand eventually increase its two keybenchmarks of performance,namely,occupancy rates and average room rates,bymilking the Sukhumvit Micromarketto its fullest potential.Compounding thischallenge was the anticipation of a sharpdrop in occupancy at the hotel due tothe likelihood that an important clientcontract would not be renewed.

Marketing planning

15 pp8A98A05 (7pp)

9-190-089DESTIN BRASS PRODUCTS CO

Bruns, Jr,WHarvard Business School

Specializedmanufacturer of brass valves,pumps,and flow controllers is troubledby competitive pricing in pumps and

higher than expectedmargins for flowcontrollers.Managers suspect costaccounting and cost allocations toproducts may be to blame.Two volume-based systems are described andillustrated.Students must developactivity-based costs for comparison andthen decide which system is most usefulto companymanagers.

1989Activity based costingCost accountingCost allocationCost analysisCost systemsPricingProfitability analysis

10 ppCase (Gen Exp)5-191-029 (8pp)

504-007-1DIESEL FOR SUCCESSFUL LIVING:BRANDING STRATEGIES FOR ANUP-MARKET LINE EXTENSION INTHEFASHION INDUSTRY

Chandon,PGrigorian,V


Renzo Rosso, the president and founderof Diesel SpA the innovative Italian casualwear company famous for itscontroversial ‘For Successful Living’advertising campaign-is pondering howto brand its new upscale line of clothing:StyleLab.The objectives set for StyleLabare: (1) to enter the new and attractivehigh casual wear market; (2) to create anaura of prestige for the core D-Diesel line;and (3) to provide Diesel’s designers withthe opportunity to experiment with newcuts and fabrics,whichmay eventuallytrickle down to themain D-Diesel brand.The case focuses on the selection of thebranding strategy for StyleLab:should itbe an independent brand with no link toDiesel, a sub-brand of Diesel,or anindependent brand endorsed by Diesel?It can also be used to discuss criticalissues in themarketing of fashion andluxury brands. In particular, it illustrateshowDiesel has managed to growwithout losing its core identity.Themainobjectives of the case are to develop anunderstanding of the key issues involvedinmanaging a portfolio of brands and toevaluate alternative branding strategiesfor launching a new brand using astructured approach and tools.The casealso illustrates critical issues in the

marketing of fashion and luxury brands,most notably brand extensions.This casehas been successfully taught in anMBAcourse on brandmanagement. It can alsobe used in a session on branding in amarketingmanagement course.Thelarge corpus of Diesel’s controversial printand television advertisements alsomakethe case suitable for an advertisingcourse or the advertisingmodule of amarketingmanagement course.Finally,the case can also be used in amarketresearch course to illustrate the value ofexperimental methods for studying theeffects of branding.A CD-ROM(504-007-9) is available to accompany theteaching note.The CD-ROM contains 23of Diesel’s best television commercials(called ‘videotronic guides to successfulliving’), a PowerPoint presentationcontaining all the case exhibits, aPowerPoint presentation of Diesel andStyleLab print advertising campaigns,before and after the time of the case,anda PowerPoint presentation withinformation onwhat happened to Dieseland StyleLab after the case.Western Europe; Fashion; 1,000employees,260million euros turnover;1999

BrandingMarketingBrandmanagementBrand extensionFashionLuxury goodsAdvertisingLogos

25 ppFIELD504-007-8 (21pp)504-007-9 (CD-ROM)

9-295-059DIVIDEND POLICY AT FPL GROUP, INC(A)

Esty,BCSchreiber,CF


AWall Street analyst has just learned thatFPL (the holding company for Florida’slargest electric utility) may cut itsdividend in several days despite a 47-yearstreak of consecutive dividend increases.In response to the deregulation of theelectric utility industry,FPL hassubstantially revised its competitivestrategy over the past several years.Theanalyst must decide whether a change individend policy will be a part of FPL’s


7

financial strategy in this deregulatedenvironment.Allows students to examinehow firms set and change dividendpolicy.Also provides a background forexamining why firms pay dividends andwhether dividend policy matters.

12,400 Employees ; $5.3 billion revenues;1994

Corporate strategyDeregulationDividendsElectric powerFinancial strategySecurities analysis

17 ppLIBRARY5-296-072 (21pp)

303-022-1EASYJET:THE SPECTACULARGROWTHOF LOWCOST AIRLINES

McCosker,PUniversity CollegeWorcester -Worcester Business School

The growth of easyJet has been nothingshort of phenomenal.Founded by SteliosHaji-Ioannou in 1995, the airline was oneof the first to introduce the ‘no frills’concept to the UKmarket.Today, just overseven years after its first flight,easyJet isthe largest low cost airline in Europeoperating a fleet of 64 aircraft on 89routes.During the 12months to 30September 2002,easyJet carried over 11million passengers and reported a pre-tax profit of £71million.easyJet continuesto grow and has recently acquired formerBA subsidiary Go,and announced plansto buy 120 Airbus A319 aircraft.Thisgrowth is remarkable as it comes againsta background of international terrorism,global recession and intense competitionbetween European airlines.This case willexamine the factors behind the rapidgrowth of easyJet and consider keystages in its development includingflotation on the stock exchange,controlof costs, innovative use of the Internet,the departure of Stelios, and plans forcontinued expansion. It goes on toreview the business environment inwhich easyJet operates consideringthose factors that have assisted itsgrowth to date and the prospects forfurther expansion.As a consequence thecase readily lends itself to the applicationof a number of strategic and generalmanagement theories.

1995 - 2003Low cost airlinesNo frills conceptStelios Haji-IoannouIntensely competitive businessenvironmentGrowth through acquisitionInnovative control of costsFinancial analysisThe aftermath of September 11

22 ppLIBRARY

IMD-3-0873EASYJET:THEWEB’S FAVOURITEAIRLINE

Kumar,NRogers,B

IMD - International Institute forManagementDevelopment

Stelios Haji-Ioannou, the 32-year-oldChief Executive Officer and founder ofeasyJet airlines,achieved profitability forthe first time in 1999,almost 4 years afterlaunching his London-based low costcarrier.The concept behind easyJet was‘to offer low cost airline service to themasses’, and the airline accomplished thisby adopting an efficiency-drivenoperatingmodel, creating brandawareness,andmaintaining high levels ofcustomer satisfaction.A key issue in thecase is whether the airline will continueto grow and survive in the highlycompetitive low cost segment of themarket. In 2000,Stelios was anxious to tryhis hand at launching other businesses,so he started a chain of Internet cafés.Some questioned whether Stelios wouldbe able to successfully transfer his lowcost business model to Internet cafés.Undeterred,Stelios moved ahead with hisplan to create easyEverything,with thebelief that he couldmake a profit byencouraging customers to surf theInternet, send email and shop on-line.This case contains colour exhibits.Anabridged version of this case is available‘IMD-3-0873’. A video is available toaccompany this case (IMD-3-0873-V).Instructors should note that ‘easyJet’ isthe first case in a series that includes‘easyEverything:The Internet Shop’(IMD-3-0874) and‘www.easyrentacar.com’(IMD-3-0875). **ecch EuropeanCase Awards CategoryWinner 2001 andecch European Case Awards OverallWinner 2002**

1999Marketing strategyIndustry analysisServicemanagement

22 ppFIELDIMD-3-0873-T (19pp)

303-093-1EXTENDINGTHE‘EASY’BUSINESSMODEL:WHAT SHOULD EASYGROUPDONEXT?

Doz,YLBalchandani,A


easyGroup is contemplating its entry intothe cinema exhibition business in the UKthrough the launch of a no-frills cinema.The company believes that it canredeploy the capabilities, such as yieldmanagement, that led to the success ofeasyJet, its low cost airline business, intothis new venture.The case examines themarket for cinema in the UK,as well asthe evolution of easyGroup’s portfolio ofcompanies,with a view to assessing theattractiveness of the company’s plannedlaunch of easyCinema.The objective ofthe case is to highlight the challengesfaced by a company in developing acoherent growth strategy and to assessthe extent to which an organisation’scapabilities can be redeployed into newbusiness ventures.This case aims todevelop a discussion on the advantagesand limits of a related diversificationstrategy.

United Kingdom;Cinema exhibition; 400employees; 2003

Growth strategyDiversificationRelated diversificationEntrepreneurship

26 ppFIELD303-093-8 (17pp)

597-028-1FIRST DIRECT:BRANCHLESS BANKING

Larreche, J-CLovelock,CParmenter,D


First Direct has become themodel oftelebanking worldwide,despite similarinitiatives undertaken by large


8

international banks.The case describesthe history of First Direct and the variouscomponents of its operations,especiallyaround the central issue of relationshipsmarketing at a distance. It helps studentsto understand all the various facets of amodern operation whichmakes iteffective,unique and difficult to imitate.Asuperficial analysis of this successful newmodel,or of other ones, leads to fastconclusions and pole imitations.There isa Spanish translation available(E597-028-1).This case contains colourexhibits. ** ecch European Case AwardsOverallWinner 2000**.

United Kingdom;Banking; 1997MarketingDirectmarketingRelationshipmarketingServicesBankingTelebanking

32 ppFIELD597-028-8 (16pp)

599-038-1FORD KA (A): BREAKING NEWGROUND INTHE SMALL CARMARKET

Christen,MSoberman,DCothier,G


This is the first of a two-case series(599-038-1 and 599-039-1). In response tothe changes in the European small carmarket, Ford decided to launch a secondsmall car, the Ford Ka.The Ford Ka hasalready been developed, the productioncapacity determined,and the launch setfor October 1996 in France.Before GillesMoynier can get to the specifics of themarketing strategy,hemust decide whothe target customer for the Ford Kashould be.The (B) case reveals that Fordchose an attitudinal segmentation andpresents initial sales results.The changein the segmentation approachmade itdifficult to assess the success of thelaunch and to determine what needed tobe done next to continue to build thebrand.The Ford Ka case introducesstudents to the fundamental marketingproblem of market segmentation andtarget selection.Ford’s situation does notfit the ‘textbook’model exactly and thus,the case is an opportunity for students tosee how theory is applied in the realworld.Ford’s problem is not unique.Oftenfirms want to introduce an existing

product to a newmarket.At a moredetailed level, the case can be used tohighlight the difference betweensegment formation and segmentidentification and the importance ofconsidering implementation issues of amarketing strategy.The case also exposesstudents to typical market research toolsused for market segmentation.This casecontains colour exhibits.There is a Frenchtranslation available (F599-038-)’.

France;Automobile; Sales FF18 billion(1995); 1996 - 1997

SegmentationSegment identificationTarget selectionProduct introduction in newmarketsInternal marketing

33 ppFIELD599-038-8 (17pp)

9-399-150GE’S TWO-DECADETRANSFORMATION: JACKWELCH’SLEADERSHIP

Bartlett,CAWozny,M


GE is faced withWelch’s impendingretirement and the question onmanyminds is whether anyone can sustain theblistering pace of change and growthcharacteristic of theWelch era.Afterbriefly describing GE’s heritage andWelch’s transformation of the company’sbusiness portfolio of the 1980s, the casechroniclesWelch’s revitalization initiativesthrough the late 1980s and 1990s. Itfocuses on six ofWelch’s major changeprograms:The ‘Software’ Initiatives,Globalization,Redefining Leadership,Stretch Objectives,Service BusinessDevelopment,and Six Sigma Quality.Canbe used to developmultiple lessons,including corporate strategydevelopment, transformational change,management and leadership,andcorporate renewal.

293,000 Employees; $100 billionrevenues; 1981 - 1998

Business policyConglomeratesCorporate cultureCorporate strategyExecutivesLeadershipManagement of change

Organizational changeOrganizational developmentStrategy implementation

24 ppLIBRARY5-300-019 (16pp)

298-014-1GROUPE SCHNEIDER: ECONOMICVALUE ADDED ANDTHEMEASUREMENT OF FINANCIALPERFORMANCE

Young,DINSEAD,Fontainebleau

Groupe Schneider is a world leader inelectrical distribution, industrialengineering equipment,and industrialcontrol and automation. In order topromote a stronger value creatingculture,Schneider implemented aperformancemeasurement systembased on Economic Value Added.Thecase explores the difficulties ofimplementing value-basedmetrics inlargemultinational companies,and theuse of Economic Value Added inmanagement compensation.This case isa vehicle exploring Economic ValueAdded.The issues raised include theimportance of value creation, the cost ofcapital, calculating Economic ValueAdded,management compensation,andother issues related to implementingEconomic Value Added as a divisionalperformancemeasure.A technical note‘Management Compensation andEconomic Value Added’(298-027-6) isavailable as a supplement to the case.**ecch European Case Awards CategoryWinner 2000**

France,worldwide; Electrical distribution,industrial engineering,control andautomation; 63,000 employees in 130countries; 1997

EconomicValue AddedPerformancemeasurementEconomic profitManagement compensationValue basedmanagement

25 pp298-014-8 (26pp)

9-192-063HILTONMANUFACTURING CO

Bruns, Jr,WJHarvard Business School


9

A professional manager is hired by asmall manufacturing company after thepresident discovers hemade poordecisions.One product appears to beunprofitable,whereas the product sold inhighest volume is under competitiveprice pressure.A crude cost accountingsystem fails to reveal appropriate actionsto correct problems.

Control systemsCost accountingCost systemsMerchandisingPricing strategy

6 ppCase (Library)5-193-158 (10pp)

9-384-049HONDA (A)

Christiansen,ETPascale,RT


Describes the history of HondaMotorCompany from its beginning through itsentry into and subsequent dominance ofthe USmarket.The history is explainedprimarily in terms of strategic factors andquoted from two sources:an earlier caseand Boston Consulting Group report onthemotorcycle industry.Should be usedwith Honda (B).

1948 - 1974Business policyCompetitionCorporate strategyJapanLearning curvesMotorcycles


IMD-5-0592ISS:DEVELOPING A BREAKTHROUGHSERVICE STRATEGYTO DRIVE PROFITANDGROWTH (A)

Horovitz, JHilliard,U


This is the first of a three-case series(IMD-5-0592, IMD-5-0623 andIMD-5-0624-V). ISS is a highly diversefacility services company operating in anindustry where customer service is vital

for survival and future growth.This caseexplores the links between customersatisfaction,customer loyalty,employeesatisfaction and profit and growth.Participants are asked to discuss theselinks and propose to ISS corporateheadquarters a coherent service strategythat will help ISS achieve their ambitiousorganic growth objectives.

2001

Service profit chainCustomer loyaltyCustomer satisfactionEmployee satisfaction

27 ppFIELD

9-190-002KANTHAL (A)

Kaplan,RSHarvard Business School

Multinational company needs animproved cost system to determine theprofitability of individual customerorders. Its strategy is to have significantsales and profitability growth withoutadding additional administrative andsupport people.The new cost systemassesses a charge to each customer orderreceived and an additional surcharge ifthe item ordered is not normally stocked.The goal is to direct sales resources to themost profitable customers: those whobuy standard products in largepredictable quantities withminimaldemands on technical resources.

$160million sales; 1987Cost accountingCost allocationCost systemsCustomer relationsManagement accountingSales strategyScandinavia

13 ppFIELD5-190-115 (14pp)

9-597-002LAUNCHINGTHE BMWZ3 ROADSTER

Fournier, SDolan,RJ


JamesMcDowell,Vice President ofmarketing at BMWNorth America, Inc,must design Phase II communication

strategies for the launch of the new BMWZ3 Roadster.The program follows an‘out-of-the-box’pre-launch campaigncentered on the placement of theproduct in the November 1996 JamesBond hit movie,GoldenEye,and includingother ‘non-traditional’elements such as aproduct appearance on Jay Leno’sTonight Show,an offering of a BondEdition Roadster in the NeimanMarcusChristmas Catalog,and large-scale publicrelations activities.McDowell must assessthe effectiveness of the pre-launchactivities and designmarketing tacticsthat can sustain product excitement untilproduct availability in March.Theteaching purpose is: (1) to stimulatecreative ideas concerning new productlaunch planning; (2) to encourage a pointof view regarding the role ofcross-promotions andmovie productplacements (a) within themarketingmixand (b) in the context of a new productlaunch;and (3) to structure thinkingabout ‘a newmarketing paradigm’thatdoes not rely on television advertising.Includes color exhibits.

AutomobilesBrandsCommunication strategyNewproductmarketingProduct positioningPublic relations

25 ppFIELD5-500-025 (32pp)

9-798-063LEADERSHIP ONLINE: BARNES &NOBLE vs AMAZON.COM (A)

Ghemawat,PBaird,B


Describes the attempt of a traditionalretailer,Barnes & Noble, to counter thechallenges posed by an Internet-basedstart-up,Amazon.com.

20,000 Employees; $2 billion revenues;1996 - 1997

CompetitionElectronic commerceInternetPublishing industryRetailing

21 ppLIBRARY5-798-119 (15pp)


10

397-033-1LEMMINGS

Martin,FUniversity of Stirling

Craig,CCarol Craig Associates

DMADesign is a Dundee basedcomputer games company created byDavid Jones in 1989. He started writinggames at university and then set up hisown computer games company. Davidwent on to write Lemmings,one of themost successful computer games of alltime.However, success was not withoutits problems and David Jones soonfeared that the company could disappearas quickly as it had begun.This caseillustrates the difficulties manyentrepreneurs face in staying focused,particularly in an industry which is fastmoving. It also shows how easy it is forentrepreneurs in small companies todivert their energies intomanagementand financial duties, such as completingVAT returns. It also illustrates how anentrepreneur who becomes side-trackedcan then starve the company of the skillsand insights which are vital to businesssuccess.

Scotland; 1992EntrepreneurshipStart-upBusiness strategy

4 ppFIELD397-033-8 (6pp)

496-005-1LOUIS ROBERT (B):THE DEAL

Leleux,BMuzyka,DFRossell,G


This is the second of a two-case series(496-004-1 and 496-005-1).Louis Robert,a recent MBA graduate from INSEADwithextensive consulting experience butlimited financial resources, is analysingthe leveraged acquisition of a chain offurniture stores in Northern France.Thecase focuses on deal analysis andstructuring to take full advantage of taxesand also highlights negotiationstrategies.There is a Spanish translationavailable (E496-005-1).

France; Furniture retailing; 15 employees,$10million; 1993

StructureFinancing

HoldingLeverageEntrepreneurship

19 ppFIELD496-005-8 (14pp)

301-040-1LUFTHANSA 2000:MAINTAININGTHECHANGEMOMENTUM

Ghoshal, SBruch,H

London Business School

In 1991 Lufthansa was almost bankrupt.Eight years later, at the general businessmeeting on 16th June 1999, JurgenWeber (CEO) announced record results inLufthansa’s history that spannedmorethan 70 years. In eight years, the companyhad gone from the brink of bankruptcyto becoming one of the world’s leadingairline companies,a foundingmember ofthe STAR ALLIANCE – the airline industry’smost comprehensive network – aspiringto become the leading aviation group inthe world.Lufthansa had undergonesome radical changes that reversed arecord loss of DM730million in 1992 to arecord pre-tax profit of DM2.5 billion in1998 (an increase of 42% compared to1997 when the pre-tax profit was DM1.75billion).Revenues increased by 4.8%, fromDM21.6 billion in 1997, to DM22.7 billionin 1998.The Seat Load Factor (SLF –proportion of seats filled) reached 73%,arecord performance in Lufthansa’s history(1.5 percentage points increasecompared to 1997 and 9 percentagepoints increase compared to 1991).Afterthe first step of the turnaround it wasapparent that transformation had justbegun and that amuchmorefundamental change had to follow toassure the company’s future.TheLufthansa Executive Board (Vorstand)and the Supervisory Board (Aufsichtsrat)decided to follow a concept of sustainingrenewal (redevelopment) at 3 levels;operational, structural, and strategic. In1999,none of these processes were fullycompleted. In fact, sustaining the changeprocess was seen as the keymanagement challenge.A video‘301-040-3’ is available to accompany thiscase.There is a Spanish translationavailable (E301-040-)’. **EFMD EuropeanCaseWriting Competition CategoryWinner 2000 and ecch European CaseAwards CategoryWinner 2004**

33 pp

FIELD301-040-8 (18pp)

602-010-1MARKS AND SPENCER AND ZARA:PROCESS COMPETITION INTHETEXTILE APPAREL INDUSTRY

Pich,MVan der Heyden,LHarlé,N

INSEAD,France-Singapore

This case was written to illustrate theimportance of business process design asa basis for competition in the textileindustry.The case illustrates theimpressive performance of Zara, the newfashion player from Spain,which hasinnovated in process design so as todeliver new collections in its stores with alead-time of 5 to 7 days.Themoretraditional approach in textile retailing isillustrated here byMarks and Spencer(M&S), the well-known UK retailer.NotwithstandingM&S’s currentproblems, the case does not fall into anoverly simple comparison between ayoung, innovative competitor and anageing glory.The authors have taughtthis case both in executive education andin theMBA core class on process andoperationsmanagement.There are fourimportant concepts that we typicallystress,more or less,depending onpedagogical objectives: (1) newsvendorlosses in the textile industry; (2) the roleof postponement in final design; (3) the‘lean enterprise’aspect of Zara;and (4)process competition and innovation,embedded in technology evolution.There is a Spanish translation available(E602-010-1).There is a French translationavailable (F602-010-1). **ecch EuropeanCase Awards CategoryWinner 2003 andecch European Case Awards OverallWinner 2005**

UK, international; Retail, textile apparel;Large; 1998 - 2001

Process competitionOperationsmanagementSupply chainRetail apparelDelayed customisationTime-based competitionNewsboymodelInnovation

17 ppLIBRARY602-010-8 (37pp)602-010-9 (s/w)


11

9-799-158MATCHING DELL

Rivkin, JWPorter,ME


After years of success with its vaunted‘Direct Model’ for computermanufacturing,marketing,anddistribution,Dell Computer Corp facesefforts by competitors tomatch itsstrategy.This case describes the evolutionof the personal computer industry,Dell’sstrategy,and efforts by Compaq, IBM,Hewlett-Packard,and Gateway 2000 tocapture the benefits of Dell’s approach.Students are called on to formulatestrategic plans of action for Dell and itsvarious rivals.Designed to be taught inany of several places in anMBA course oncompetitive strategy.Permits anespecially detailed examination ofimitation; illustrates how fit amongactivities and incompatibilities betweencompetitive positions can poseparticularly high barriers to imitation.Canalso be employed to illustrate competitoranalysis, the evolution of industrystructure,and relative cost analysis.

$19 billion revenues; 1998CompetitionComputer industryCost analysisIndustry structurePersonal computersStrategic planning

31 ppLIBRARY5-700-084 (24pp)

9-284-057MCI COMMUNICATIONS CORP—1983

Greenwald,BCWhite,WL


MCI Communications Corp is faced witha large need for external financing tosupport rapid growth and substantialuncertainty due to the AT&T antitrustsettlement.The case illustrates the valueof convertible debt as a financinginstrument in these circumstances.

$1 billion revenues; 1968 - 1983Antitrust lawsBondsDebtmanagementFinancing

TelecommunicationsUncertainty

14 ppFIELD5-386-110 (12pp)

9-396-357MCKINSEY & CO:MANAGINGKNOWLEDGE AND LEARNING

Bartlett,CAHarvard Business School

Describes the development of McKinsey& Co as a worldwidemanagementconsulting firm from 1926 to 1996. Inparticular, it focuses on the way in whichMcKinsey has developed structures,systems,processes,and practices to helpit develop, transfer, and supplyknowledge among its 3,800 consultantsin 69 offices worldwide.Concludes byfocusing on three young consultantsoperating in each dimension of the firm’sorganization – the local office, theindustry practice,and the firm’scompetence center. MD Rajat Guptawonders if the changes he hasmade aresufficient tomaintain the firm’s vitalknowledge development process.Can beused in general management, servicemanagement,or internationalmanagement courses to focus on theGM’s role in making knowledge andexpertise a source of competitiveadvantage.


Business policyConsultingInnovationKnowledge transferManagement of professionalsMultinational corporationsOrganization

20 ppFIELD5-398-065 (16pp)

IMD-5-0537MEDI-CULT: PRICING A RADICALINNOVATION

Kumar,NRogers,B


This is a case that highlights the issuesinvolved in the launch of an infertility

product and procedure,which allowswomen to become pregnant withouthaving to undergo unpleasant hormonestimulation or experience dangerousside-effects. In bringing its product tomarket,Medi-Cult, a small biotechnologycompany,must deal with regulatoryconstraints, larger competitors, and thechallenges of introducing a new productinto the local and global marketplace.Questions raised are:Should the productbe priced according to its perceivedvalue? Should Medi-Cult pursue apenetration or market skimming strategyin pricing the new product? Howwill thecontributionmargin be affected if aglobal, regional,or multinational pricingstrategy is chosen?What are the ethicalissues in pricing pharmaceuticals? **ecchEuropean Case Awards CategoryWinner2005**

1998PricingNewproductsInternational marketing


9-191-073MICRODEVICES DIVISION

Cooper,RIttner,C


The company has excess capacity.Thecase explores the various issuessurrounding accounting for the cost ofcapacity.Several definitions of capacitycan be discussed and accounted for.

$200million revenues; 1989Capacity analysisCost accountingCost allocationCost systemsElectronics

13 ppFIELD5-191-175 (9pp)

9-300-001MICROSOFT:COMPETING ONTALENT(A)

Bartlett,CAWozny,M



12

Describes the evolution of Microsoft’shuman resource philosophies,policies,and practices and how they were used asa core of the company’s competitiveadvantage. In particular, the case focuseson howMicrosoft has tried to retain itsability to recruit,develop,motivate,andretain first class talent as it grew from astart-up to a global behemoth.Triggeredby high-profile, senior-level departures in1999, the companymust decide if it istime to change the ‘hard core’culturethat many feel is at the core of itscompetitiveness.The teaching purpose isto show how human resource policiesand practices can become a source ofcompetitive advantage – and the impactof a hard-charging corporate culture onpeople burnout.

31,000 Employees ; $20 billion revenues;1975 - 1999

Corporate cultureEmployee retentionGrowthmanagementHuman resourcesmanagementMotivationOrganizational behaviorSoftwareStrategy implementation

28 ppFIELD5-302-010 (13pp)

9-191-056MILE HIGH CYCLES

Bruns, Jr,WJEllison,DJ


Introduces the concept of cost variances.Looking at a bicycle manufacturer withone product and three departments, thecase presents budgeted and actual datafor material, labor,and overhead.

$13million sales; 1989Accounting policiesBicyclesCost accountingCost analysisVariance analysis

4 ppGEN EXP5-193-095 (11pp)

9-189-056MRS.FIELDS COOKIES

Cash, Jr, JIOstrofsky,K


Mrs.Fields Cookies is a small companyselling freshly baked goods throughprivately owned specialty stores (eachstore sells only Mrs Fields products).Thecompany has about 8,000 employeesworldwide and less than 150 informationsystems people for a unique leverage ofMIS resources.The company usesinformation systems extensively in itsprocessing,communications,and othermanagement functions, includingoperations of the stores and hiring salesemployees.Teaching objectives includediscussion of information technologyarchitecture,organizations,managementcontrol, and strategy.

8,000 Employees ; 1988FoodInformationmanagementInformation systemsInformation technologySupermarkets

17 ppFIELD5-193-035 (11pp)

IMD-3-0423NESTLÉ-ROWNTREE (A)

Hyde,DGEllert, JCKilling, JP


Nestlé SA is the world’s largest foodcompany; its acquisitions of Rowntree plcin 1988 was,at 2.5 billion GB Sterling, thelargest-ever foreign takeover of a Britishcompany.This case is the first in athree-part case series positioned before,during,and after the acquisition ofRowntree by Nestlé,and gives an‘insidelook’at a major acquisition.This case (A)includes a note on the world chocolateindustry, and ends at the point whenNestlé must decide whether to launch ahostile bid for Rowntree.The case iswritten fromNestlé’s point of view,andprovides the opportunity to consider thebenefit of various acquisition possibilitiesin the industry.The case also raisesquestions as to why Rowntree became atakeover target, and on Nestlé’s historicalpolicy of not making hostile takeovers.This case is part of a series which includes

(B) (IMD-3-0424) and (C) (IMD-3-0425)cases. **ecch European Case AwardsCategory Runner Up 1992 and ecchEuropean Case Awards CategoryWinner1997**

1988Mergers and acquisitions(strategy,pricing, tactics)Industry analysisCompany analysis


304-166-1NEWS CORP:THEMAKINGOF AGLOBALMEDIA BUSINESS

Ravi,MICMRCenter forManagement Research

Rupert Murdoch’s News Corporation(News Corp) has evolved into a globalmedia conglomerate.The company ownsapproximately one third of newspapersand BSkyB (satellite television) in Britain. Italso owns the Fox Entertainment Groupthat makesmovies under the name 20thCentury Fox and the televisionprogrammes under The Fox Network.News Corp’s television reach extends tomillions of homes worldwide.While NewsCorp is doing well, there are somemajorconcerns for the company.One is therecent acquisition of DirecTV fromGeneral Motors.Another is the heavydependence onMurdoch for keystrategic decisions.

1952 - 2003MurdochNews CorpMedia businessViacomVivendiStar TelevisionCNNFox Network20th Century FoxHarper CollinsFox SportsBSkyBMurdochmanagement style

17 ppLIBRARY


13

303-046-1NISSAN’S U-TURN:1999-2001CONDENSEDVERSIONOFREDESIGNING NISSAN (A) & (B)

Manzoni, J-FHughes,KBarsoux, J-L


This case is a condensed version of thecase series ‘Redesigning Nissan (A) & (B)’(303-044-1 and 303-045-1).Topics;Automobile, cars;Alliance;Transformationand turnaround;Restructuring,changeand revival; Fair process and credibility;Cultural differences;Strategy;Vision andleadership;Cost cutting and plantclosures;Empowerment;Productdevelopment and productivity;Cross-functional teams;Design and purchasing;Trust;Growth.Settings;Automobilesector,Nissan and Renault; Japan (andFrance);Over 130,000 employees;1999-2001.Abstract;When Renault sent CarlosGhosn to turnaround its alliance partnerNissan,observers were sceptical of hischances.After solicitingrecommendations from the employees,he unveiled a three-year plan involvingplant closures, job cuts, and a refocus ondesign.Within two years, the companyhad achieved a dramatic recovery,posting record profits and proposing adazzling array of newmodels.Case (A)covers the dynamics of taking chargeand case (B) the process of leadingchange.The combined and condensedversion is for instructors wishing to coverthematerial in a single session.The casesraise a number of themes to dowith howan incoming leader establishescredibility,builds a case for painfulchange,gathers support,providesconstant and consistent communication,sells growth as well as cuts,enforcesaccountability,measures progress, andsustains momentum for change.Theteaching note was written by J-FManzoni and J-L Barsoux.There is aFrench translation available ‘F303-046-1’.

25 ppLIBRARY303-046-8 (15pp)

9-298-166NOTE ON ALTERNATIVEMETHODSFOR ESTIMATINGTERMINALVALUE

Fruhan, Jr,WEHarvard Business School

Reviews basic techniques for estimatingterminal value in the valuation ofbusinesses.Among the techniquesdiscussed are perpetuities,growingperpetuities,use of multiples, andliquidation value.Background reading forterminal value calculations within thecontrol of an introductory finance course.A rewritten version of an earlier note.

Cash flowForecastingPresent valueValuation

8 ppNote

395-113-1NOVOTEL

Baden-Fuller,CHunt,B

Cass Business SchoolCalori, R

Groupe ESC Lyon

The Novotel case study describes theRetours vers le Future (Back to the Future)change programme. This initiative isboth radical and innovative and haschanged structure, systems andprocesses. The programme is changingwork behaviours and thereby changingthe ways in which NOVOTEL units are runand the way in which NOVOTELcompetes.The teaching notes focusstudents’attention on a number offeatures.These include the timeliness,speed and scope of the change initiative;the radical and innovative nature ofmanagement’s response to the threat;the top-down programmewhichallowed bottom-up consultativeprocesses; the fact that changes weremade simultaneously in 200 hotelsthroughout Europe.

1991 - 1994RejuvenationRadical corporate changeStrategicmomentum

33 ppFIELD395-113-8 (23pp)

IMD-5-0358PHILIP MORRIS KK

Turpin,DIMD - International Institute forManagementDevelopment

Themarketingmanager of Philip MorrisKK (PMKK) must decide how his companyshould react after learning thatcompetitor RJ Reynolds plans tointroduce aYen 200 cigarette in Japan,attacking PMKK’s position in the lowerend of the Japanesemarket.There is aSpanish translation available (IMD- 5-0358-ES).

1987PricingCompetitionMarket positioning

27 ppFIELD589-030-8 (7pp)

9-302-049PHILIPS vs MATSUSHITA:A NEWCENTURY,A NEW ROUND

Bartlett,CAHarvard Business School

Describes the development of theinternational strategies and organizationsof twomajor competitors in the globalconsumer electronics industry.Thehistory of both companies is traced andtheir changing strategic postures andorganizational capabilities aredocumented.Particular attention is givento themajor restructuring each companyis forced to undertake as its competitiveposition is eroded. Illustrates how globalcompetitiveness depends onorganizational capability, the difficulty ofovercoming deeply embeddedadministrative heritage,and thelimitations of both classic ‘multinational’and‘global’models.A rewritten version ofan earlier case.

270,000 Employees; $40 billion-$60billion revenues; 1970 - 2001

CompetitionElectronicsInternational operationsMultinational corporationsOrganizational changeOrganizational structureStrategy implementation

20 ppLIBRARY5-302-063 (14pp)


14

9-504-063REALMADRID CLUB DE FUTBOL

Quelch, JANueno, JLKnoop,C-I


In June 2004,Florentino Perez,awell-known Spanish businessman,waselected president of Real Madrid,one ofthe world’s top soccer clubs. In hiscampaign,Perez had promised to turnaround the club’s finances,bring inworld-class talent, and extend the club’sbrand around the world throughmultiple channels.As re-election loomsfour years later,his management teamreflects on initiatives to date andchallenges ahead as described in thecase.Also describes the soccer industryand the trends transforming it.Theteaching purpose is to evaluate RealMadrid’s brandmanagement strategyand to consider the risks andopportunities involved.Also, torecommend a strategy for the futureexpansion of the brand worldwide.

850 Employees ; $233million eurodollars;2004

BrandmanagementBrandsEntertainment industryGlobal Research GroupGlobalizationMarketing strategySpainSports

24 ppFIELD5-505-014 (7pp)

9-400-087REBIRTH OFTHE SWISSWATCHINDUSTRY – 1980-92 (A)

Tushman,MLRadov,DB


The Swiss watch industry has beendevastated by new entrants from Asia inthe low- andmid-priced watchsegments. Japanese and Hong Kongfirms have used quartz technology tolower costs dramatically.Nicolas Hayek,president of a Swiss consulting firm, isasked to help design a new strategy andstructure for the two Swiss giants,ASUAGand SSIH,which have decided tomerge.Ernst Thomke,Managing Director ofASUAG’s manufacturing arm,also figuresprominently.The case outlines options for

the positioning of the new, inexpensiveSwatch brand as well as a number ofother flagship Swiss brands.Focuses onalignment of strategy with the structureof the new company.Topics to addressinclude themanagement of change andthe formulation of a detailed action plantomake the new company succeed.

15,000 Employees ; $1 billion revenues;1980 - 1983

Management of changeOrganizational structureProduct developmentStrategy implementationSwitzerlandTechnological change

14 ppLIBRARY

301-050-1RENAULT ANDNISSAN – AMARRIAGEOF REASON

Lasserre,PFlament,A-CFujimura,SNilles,P

INSEAD-EAC,Singapore

In 1999 Renault acquired 36.8% of Nissan,the Japanese troubled car manufacturer.This case describes the successfulintegration process that leads to therecovery of Nissan.Teaching objectivesinclude: (1) strategic alliances andacquisitions; (2) the rationale for globalalliances;and (3) integrating acquisitions.

Japan;Automotive; $121 billion; 1999-2000

Strategic alliancesAcquisitionsIntegrating acquisitionsAsian businessJapanGlobal strategies

22 ppLIBRARY301-050-8 (15pp)

9-587-055ROHMANDHAAS (A):NEW PRODUCTMARKETING STRATEGY

Rangan,VKLasley,S


JoanMacey,Rohm and Haas’MarketManager for Metalworking Fluid Biocides,found that sales of a new biocide,Kathon

MWX,was utterly disappointing.This wasall themore puzzling since sales of herother product – Kathon 886MW,a liquidbiocide used only in large-capacity tanks– was well on target and held a steady30%market share. In May 1984,about fivemonths after the new product waslaunched, JoanMacey was reviewing herentire marketing strategy with a view tobringing KathonMWX sales closer totarget.Of particular concern to her werethe distribution and communicationstrategies used for the new product.

$2 billion revenues; 1984ChemicalsDistribution channelsMarketing strategyNewproductmarketing

15 ppFIELD5-587-129 (12pp)

9-399-126ROYAL DUTCH/SHELL IN NIGERIA (A)

Paine,LSMoldoveanu,MC


Working with Shell’s country manager forNigeria, the company’s Committee ofManaging Directors must decide how torespond to the Nigerian government’sdecision to impose the death sentenceon Ken Saro-Wiwa and eight otherleaders of a movement for the rights ofthe Ogoni (one of Nigeria’s 240 ethnicgroups).As the case opens,Saro-Wiwaand his co-defendants have just beenfound guilty of incitingmurder in a trialthat international observers havecriticized as deeply flawed.Saro-Wiwa,anenvironmentalist,writer,businessman,television producer, and human rightsactivist,has been a vocal critic not only ofthe Nigerian government but also Shell.Provides background on Shell,on itsbusiness in Nigeria, and onenvironmental and human rights issuesin the Niger Delta.The teaching purposeis to examine different conceptions ofthe role of business in society and toexplore the challenges of doing businessin Nigeria.

100,000 Employees ; $94 billion revenues;1995

AfricaCorporate responsibilityCountry analysisEmergingmarketsEnvironmental protection


15

EthicsMultinational corporationsPetroleum industry

27 ppFIELD

9-399-127ROYAL DUTCH/SHELL IN NIGERIA (B)

Paine,LSMoldoveanu,MC


Supplements the (A) case.

AfricaCorporate responsibilityCountry analysisEmergingmarketsEnvironmental protectionEthicsMultinational corporationsPetroleum industry

3 ppFIELD

399-122-1RYANAIR:THE LOW FARES AIRLINE

O’Higgins,EUniversity CollegeDublin (UCD)

Ryanair is the first budget airline inEurope,modelled after the successfulUSA carrier, Southwest Airlines.The caseincorporates a history and description ofRyanair and its principle characters,Ryanair’s operation and challenges as abudget airline,and a portrayal, forcomparison,of Ryanair’s role modelSouthwest Airlines.The latter part of thecase consists of a description of Ryanair’sstrategy,having analysed the competitivearena in which Ryanair operates and thecompany’s own particular mix ofresources and operations.This entails anassessment of the sustainability ofRyanair’s strategy,especially as itcompares to its own chosen role model,Southwest Airlines.Having developed anunderstanding of Ryanair’s situation,students should be able to developfuturemoves for the company.A video(399-122-3) and transparencies (399-122-7) are available to accompany the case.There is a Spanish translation available(E399-122-1).The supplementaryteaching note was written by HughMacmillan andMahenTampoe.The case‘Ryanair:The Low Fares Airline (B)’ (305-066-1) can be used as a follow on case.**ecch Irish CaseWriting Competition

CategoryWinner 1999 and ecchEuropean Case Awards OverallWinner2004**.

Strategic analysisIndustry analysisResources and capabilitiesSustainable competitive advantageBusiness strategyEuropean airline industry

30 ppLIBRARY399-122-8 (18pp)399-122-9 (12pp)

9A94M006SABENA BELGIANWORLD AIRLINES:A DELEGATIONOF CHEFS

Crossan,MMPierce,B


On the day thatWeytjens demoted asous-chef for having ignored severalwarnings not to eat in the kitchen,whichwas a requirement of ISO 9002 standards,he returned from lunch to find threeother sous-chefs waiting in his office.They were there to complain about whatthey felt was unnecessarily harsh actionand to askWeytjens to reconsider hisdecision.Background information isprovided in cases 9A94M003 and9A94M004; subsequent related cases are9A94M005,9A94M007,and 9A94M008.

Business policyManagement of changeInternational businessPolicy formulation/implementation

2 pp8A94M03 (20pp)

9A94M005SABENA BELGIANWORLD AIRLINESSTRIKE

Crossan,MMPierce,B


On 25 October ,1992,Sabena announcedits first firings and lay-offs in its history.Onthe evening of the downsizingannouncement,Weytjens is alerted that acrowd of militant workers from anotherpart of the company had entered thecatering building to encourage theworkers to join a strike action which hadstarted earlier in the day.Weytjens had toquickly judge whether there was any

better way of dealing with the situationthan the accepted reaction of calling involunteers from other parts of thecompany where timeliness was not asessential.Background information isprovided in case 9A94M003 and9A94M004; subsequent related cases are9A94M006,9A94M007,and 9A94M008.

Business policyManagement of changeInternational businessPolicy formulation/implementation

2 pp8A94M03 (20pp)

9A94M004SABENA BELGIANWORLD AIRLINES:WEYTJENS’FIRST ASSIGNMENT

Crossan,MMPierce,B


The case provides an update on theevents subsequent to the (A) case,9A94M003. It outlines the strategicchanges implemented by PierreGodfroid,Sabena’s CEO,and introducesErikWeytjens,a recent graduate of anMBA program.This case outlinesWeytjens first assignment to solve amajor logistics problem in thedishwashing department.The case,alongwith the follow-on series of casesprovides the opportunity to: (1) makedecisions and take action under realisticconstraints of limited information, timeand credibility; and (2) reflect on how thepattern of actions supports orundermines strategy.

Business policyManagement of changeInternational businessPolicy formulation andimplementation

8 pp8A94M03 (20pp)

9-500-053SECURITY CAPITAL PACIFIC TRUST:ACASE FOR BRANDING

Fournier, SThorp,S


Concerns a real estate operations andinvestment trust that is consideringwhether it should pursue branding as astrategic investment.Through


16

interpretation of case data and videofrom focus groups, students deduce theconsumer (cognitive,psychological, andeconomic),environmental, and companyfactors that are conducive to branding,thereby illuminating their understandingof when it makes sense to brand.Analysisof extensive survey data allows studentsto consider the secondary questionabout how to brand as they formulatebrand positioning recommendations.Theteaching purpose is to teach studentshow to evaluate the question ‘To brandor not to brand’.Extensive data regardingsearch,evaluation,and choice of ahigh-involvement durable goodmakesthis case suitable for a class on consumerdecision-making processes. Includescolor exhibits.

1,200 Employees ; $300million revenues;1996 - 1997

BrandmanagementMarketingmanagementReal estateReal estate investmentServicemanagement

30 ppFIELD

9-683-068SHOULDICE HOSPITAL LIMITED

Heskett, JLHarvard Business School

Various proposals are set forth forexpanding the capacity of the hospital. Inassessing them,serious consideration hasto be given to the culture of theorganization and the importance ofpreserving it in a service delivery system.In addition to issues of capacity andorganizational analysis,describes awell-focused,well-managedmedicalservice facility that may well point theway to future economies in the field.

1982CanadaCapacity planningExpansionHospital administrationOrganizational behaviorServicesSocial enterprise

18 ppFIELD5-686-120 (16pp)

9-599-126SNAPPLE

Deighton, JHarvard Business School

Tells the story of Snapple’s rise and fall,and poses the question ‘Can it recover?’Many soft-drink brands flourished in the1980s serving NewYork’s Yuppies,butonly Snapplemade the big time. It wentfrom local to national success and waspoised to go international when thefounders sold out to Quaker.The brandproved harder tomanage than Quakeranticipated and in 1997 was sold for afraction of its acquisition price.The casepresents factors accounting for thegrowth and decline and provides aqualitative study of the brand.Whataction should the new owners take?

500 Employees ; $500million revenues;1972 - 1997

BeveragesBrandsDistributionEntrepreneurshipMarket positioningMarketingmanagementStrategicmarket planning

17 ppFIELD5-500-033 (8pp)

9A98M006STARBUCKS

Crossan,MMKachra,A


Starbucks is faced with the issue of how itshould leverage its core competenciesagainst various opportunities for growth,including introducing its coffee inMcDonalds,pursuing further expansionof its retail operations,and leveraging thebrand into other product areas.The caseis written so that students need to firstidentify where Starbucks competencieslie along the value chain,and assess howwell those competencies can beleveraged across the various alternatives.It also provides an opportunity forstudents to assess what is driving growthin this company.Starbucks has atremendous appetite for cash since all itsstores are corporate,and investors arebetting that it will be able to continue itsphenomenal growth so it needs to walk afine line between leveraging its brand toachieve growth while not eroding it inthe process. It is an exciting case that

quickly captures the attention ofstudents given the subject matter.

CompetitivenessGrowth strategyCore competenceIndustry analysis

28 pp8A98M06 (13pp)

UVA-F-1054STRUCTURING CORPORATEFINANCIAL POLICY:DIAGNOSIS OFPROBLEMS AND EVALUATIONOFSTRATEGIES

Bruner,RFUpdike,KL


This technical note presents an overviewof the process by which an analyst couldproceed to assess the financial policy of afirm.The note defines several dimensionsof financial policy,offers threebenchmarks against which to evaluatethe policy,and reviews the FRICTOframework with which to assessproposals for future financial policy.

Capital structureFinancial policyStrategic planning

19 ppGEN EXP

IMD-5-0604TETRA PAK (A):THE CHALLENGE OFINTIMACYWITH A KEY CUSTOMER

Kashani,KShaner, J


This is the first of a four-case series(IMD-5-0604 - IMD-5-0607).The (A) caseof this series describes a failed attempt tosell new packagingmachinery to a keyItalian customer facing declining salesand profits in its milk business.Tetra Pak’sanalysis leads them to propose a newproduct strategy that is summarilyrejected by the customer.The case raisesthe issue of Tetra Pak’s strategy in theItalianmilk market and the wisdom of itsproposed customer strategy.The broaderquestion is whether the company isserving the best interest of its key


17

accounts.A video‘IMD-5-0604-V’ isavailable to accompany the case series.

2000 - 2002Industrial marketingKey accountmarketingCustomer orientationValue chainmarketingCustomer satisfaction surveysMarketing implementationManagement of change

14 ppFIELD

9-595-057THE BLACK & DECKER CORP (A):POWERTOOLS DIVISION

Dolan,RJHarvard Business School

Presents Black & Decker’s performanceagainst a Japanese competitor andothers in the power tools market.Black &Decker is anxious to regain its marketshare leadership in particular segmentsof themarket.Allows exploration ofissues of brand equity,productpositioning,and competitive strategy inthe context of international competition.

$4 billion revenues; 1990BrandsCompetitionInternational marketingMarketing strategyProduct introductionTools

13 ppFIELD5-598-106 (22pp)

303-134-1THE EUROPEANNON-LIFEINSURANCE INDUSTRY AND AXA IN2001

Cool,KAngoulvant,CEnzmann,A-E


The case describes the economics of thenon-life insurance industry and thestrategic issues that competitors arefacing in 2001. Issues includeovercapacity,deregulation,new entryand competition,consolidation,anddeclining industry profitability.Despitethe apparent absence of economies ofscale, some firms have started toconsolidate the industry.After a

discussion of the industry economics, thecase describes the strategy of a keyplayer: the French firm AXA (past strategyand current issues).This financial servicescase allows a discussion of severalstrategy topics: (1) economicconsequences of deregulation andstrategic responses of incumbents andnew entrants; (2) drivers andconsequences of cyclical overcapacity;and (3) drivers and impediments toEuropean consolidation in an industrythat has historically been veryfragmented andwhere strongeconomies of scale have not beenobserved.The overcapacity cycles are tomany students very surprising and thecase allows an interesting discussion ofdrivers and possible solutions.Theteaching note was written by K Cool andC Angoulvant.

Europe; Insurance; 2001OvercapacityPrice wars and competitionLocal and global competitionDeregulation and strategySupply chain re-engineeringSupply chainmanagementConsolidation

34 ppLIBRARY303-134-8 (s/w)

301-056-1THE FORMULAONE CONSTRUCTORS:COMBINED

Jenkins,MNottinghamUniversity Business School

This is a revised and combined version ofthe Formula One Constructors case series(399-001-1 to 399-004-1 and 303-094-1).This case is used to address the issues ofachieving competitive advantage in ahighly competitive, technological andinternational context.The introductionoutlines the competitive nature ofFormula One and the fact that this is anindustry of sophisticatedmulti-millionpound organisations competing at thehighest international level.The case thenfocuses on a constructor who achievedsustained competitive advantage in aparticular period.The case is used toillustrate a number of principles relatingto the resource based view of strategy,such as defining sources of competitiveadvantage; the problems of imitation andappropriation of key resources;and theidiosyncratic and path-dependent natureof sources of advantage.

1950 - 2003Sustained competitive advantageResource based viewCore competenceDistinctive capabilitiesStrategy

17 ppFIELD399-001-8 (8pp)

9-897-012THE NORMATIVE FOUNDATIONS OFBUSINESS

Dees, JGElias, J


What is the appropriate role for businessto play in a capitalist society? In analyzingresponses to this question, this notedistinguishes two separate dimensions.The first involves the distinctive objectiveof business as a social institution.Considers the pros and cons of profitmaximization as well as alternatives toprofit maximization such as putting thecustomer or the employee first,stakeholder theory,and the corporationas a public service entity.Then considersa second dimension, the appropriatemoral constraints on business’s pursuit ofits objectives.On this dimension, the noteconsiders minimal strategic compliance,libertarian structures against force orfraud, the law,social norms,andindependent standards of moralbehavior.The teaching purpose is tointroduce the reader to a range of viewswithout arguing for any given position.Extensive references are offered tofacilitate further research.

Business government relationsBusiness and societyCorporate responsibilityEconomic analysisEthicsSocial enterprise

19 pp

302-033-1THETRANSFORMATIONOF BP

Ghoshal, SGratton,LRogan,M

London Business School

In 1992,BP was facing an acute crisis thathad led to the removal of its CEO,BobHorton.Over the next ten years the


18

company had undergone a completemetamorphosis.From being a relativelyminor player, through a series of mergersand acquisitions it had emerged in 2001as one of the three oil supermajors,triggering a fundamental change in thestructure of its industry.Financially, it hadachieved the highest returns on capitalemployed of all major oil companies andwas earning profits in excess of a billiondollars every month.This case describeshow this remarkable transformation wasachieved through fundamental changesin the company’s organisationalstructure,management processes andleadership philosophy.The case endswith a description of the challengesbeing faced by the company at the endof 2001,andmanagement’s responses tothose challenges.A video‘302-033-3’ isavailable to accompany the case.**ecchEuropean Case Awards CategoryWinner2005**

2001Managing changeOrganisation designLeadershipSocial responsibility of businesses

28 ppFIELD

303-073-1THEWORLD AIRLINE INDUSTRY:AEUROPEAN PERSPECTIVE

Paul,HHartmann, J

FachhochschuleMainz

The airline industry is struggling again.After adjusting for September 11, theensuing Iraq war,SARS and theworldwide economic recession haveforcedmany flag carriers to initiate asecond round of capacity and costreductions.At the same time low costairlines are attractingmore passengersand reporting record earnings.Most signssuggest that the current industry slumpcould be worse than previous ones andthat the industry emerging at the end ofit will be significantly different.The casebriefly reviews industry developmentduring the past two decades.The basicbusiness models of flag carriers andEuropean low cost carriers are analysedin detail.This provokes interestingdiscussions about how to establish andmaintain competitive advantages andstrategies for key players in theirsegments.The case can be used todiscuss environmental and industry

analysis,business models of flag carriersand low cost airlines and,especially, thecompetitive advantages and strategies offlag carriers and low cost airlines.

Airline industryCompetition advantage andstrategyLow cost airlinesNo frillsFlag carriersCyclicalityOperational gearingNetworksHub and spokeEnvironmental analysisIndustry analysisBusinessmodelValue chain


9-501-038TIVO

Wathieu,LZoglio,M


TiVo is a digital video recorder that allowsviewers to watch what they want,whenthey want to watch it.Fourteenmonthsinto the launch, sales are verydisappointing.Brodie Keast,VP ofmarketing and sales,wants to combine acatchy communications campaign,product bundling with satellite televisionreceivers, aggressive pricing,and salessupport, in order to boost demand for thenew category.One important goal is toposition TiVo as a strong brand before theentry of big player Microsoft.TiVo isconfronted with the difficulty of selling anew and complex electronics productthat is meant to change consumer habitsradically.Moreover, the impact of TiVo onthe television and advertising industriesis ambiguous,andTiVo needs todemonstrate that it can play aconstructive role in the futuremedialandscape.Launching a radically newproduct; changing consumer habits,privacy,consumer control, andpermission-based advertising; relevanceof targeting early adopters; creativecommunications strategy for a smallfirst-mover; integratedmarketing plan;and television and the advertisingindustry.

181 Employees ; $200,000 revenues; 2000AdvertisingBroadcasting industryConsumer behaviorMarketing planningNewproductmarketing

16 ppFIELD5-501-057 (11pp)

9-693-019TOYOTAMOTORMANUFACTURING,USA, INC

Mishina,KHarvard Business School

On 1May,1992,Doug Friesen,Manager ofassembly for Toyota’s Georgetown,Kentucky,plant, faces a problemwith theseats installed in the plant’s sole product -Camrys.A growing number of cars aresitting off-line with defective seats or aremissing them entirely.This situation isone of several causes of recent overtime,yet neither the reason for the problemnor a solution to it is readily apparent.Asthe plant is an exemplar of Toyota’sfamed production system (TPS),Friesen isdetermined that, if possible, the situationwill be resolved using TPS principles andtools.Students are asked to suggest whataction(s) Friesen should take and toanalyze whether Georgetown’s currenthandling of the seat problem fits withinthe TPS philosophy.The teachingpurpose is to: (1) provide comprehensiveknowledge onToyota ProductionSystem; (2) exercise advanced root causeanalysis; and (3) Demonstrate the totalityof manufacturing,especially the linkbetween production control and qualitycontrol.

4,000 Employees ; $1-5 billion revenues;1992

AutomobilesInternational operationsProcess analysisProduction controlsQuality controlSuppliers

22 ppFIELD5-693-046 (25pp)


19

9-384-185VALUATIONTECHNIQUES

Stevenson,HHRoberts,MJ


Describes several approaches tovaluation of a going concern:assets,earnings,and cash flow.

EntrepreneurshipValuation

8 pp

595-023-1VIRGIN ATLANTIC AIRWAYS:TENYEARS AFTER

Larreche, J-CDenoyelle,P


The Virgin Atlantic Airways (VAA) casewas written on the occasion of thecompany’s tenth anniversary. In 10 years,VAA has brought many innovations tothe airline industry and wonmanyawards for its service. It has foughtagainst giants on an international scaleand has survived the airline industry’smost difficult years. The case describesthe history of the firm, its achievements,and its practices especially in terms ofoperations,human resources andmarketing. Themain purpose of the caseis to discuss the concept of customervalue delivery and to understand themechanisms by which VAA can profitablyoffer its customers high service quality ata low price.Other possible pedagogicalobjectives are positioning, innovation,service,quality and public relations. Thecase is best suited for courses onmarketingmanagement or mervicesmanagement.There is a Frenchtranslation available (F595-023-1).Thiscase contains colour exhibits. **ecchEuropean Case Awards OverallWinner1996**

UK, international;Airlines; 1994MarketingServicesValueDeliveryEntrepreneurshipPublic relationsLeadershipPricing

37 ppFIELD595-023-8 (29pp)

9-704-430WAL-MART STORES IN 2003

Ghemawat,PBradley,SPMark,K


Examine’sWal-Mart’s development overthree decades and provides financial anddescriptive detail of its domesticoperations. In 2003,Wal-Mart’sSupercenter business has surpassed itsdomestic business as the largestgenerator of revenues. Its internationaloperation seems poised to become thenext growth driver for the company as itmarches toward the trillion dollar salesmark.But problems are starting to surfaceeven as the company is winningrecognition as the number one companyin the Fortune 500 – unions keeppressuring its minimum-wageemployees and allegations of genderdiscrimination are alleged.

Competitive advantageCorporate strategyDiscount department storesDistribution planningGrowth strategyInformation technologyInternational businessManagement controlsMassmerchandisingRetailing industry

32 ppLIBRARY

9-794-024WAL-MART STORES, INC

Bradley,SPGhemawat,PFoley,S


Focuses on the evolution ofWal-Mart’sremarkably successful discountoperations and describes the company’smore recent attempts to diversify intoother businesses.The company hasentered the warehouse club industrywith its Sam’s Clubs and the grocerybusiness with its Supercenters, acombination supermarket and discountstore.Wal-Mart experienced a drop in thevalue of its stock price in early 1993,which it still has not made up.Exploresthe issue of sustaining competitiveadvantage.Wal-Mart has advantages overits competitors in areas such asdistribution, information technology,andmerchandising, to name a few.How

sustainable are these,and what are thethreats toWal-Mart’s continued success?

440,000 Employees ; $68 billion revenues;1994

CompetitionDiscount department storesIndustry structureRetailingStrategy formulationStrategy implementation


9-196-079WESTERN CHEMICAL CORP.:DIVISIONAL PERFORMANCEMEASUREMENT (A)

Bruns, Jr,WJAtherton,R


The president and controller ofWesternChemical Corp.are discussing the bestway tomeasure and report performanceof foreign subsidiaries.One subsidiary is ajoint venture with its own borrowingcapacity;another is wholly owned;and athird is wholly owned and serves as asales base for regional sales.Applyinggenerally accepted accounting principlesgives incomemeasurements that seemto conflict with true success of theoperations.


Accounting proceduresControl systemsFinancial reportingInternational operationsPerformancemeasurementReturn on investment

9 ppFIELD5-198-026 (8pp)

303-119-1WHENOLDDOGS LEARN NEWTRICKS:THE LAUNCHOF BBC NEWSONLINE

Kung-Shankleman,LUniversity of St Gallen

This case concerns the launch of theBritish Broadcasting Corporation’s (BBC)highly successful Internet service,BBCNews Online. It is designed to sensitisestudents to the complexities and


20

challenges of strategic change – evenwhen successful – in established firms.BBC News Online was a success from thestart. It achieved instant resonance withits intendedmarket and quicklydeveloped into one of the UK’s leadingcontent-only sites,with growth faroutstripping UK Internet penetration.Frommany perspectives this is surprising.Better funded commercial peers wereexperiencing problems with theirInternet businesses,and the BBCwasrenowned as a bureaucratic organisation.But external success masked difficultinternal growth processes.News Onlinebegan as a classic start-up:staffed by asmall enthusiastic team, it had a positiveculture and operated independently.However within 18months this situationturnedmalign as internal systems andstructures were outgrown and staffbecame burned-out.A new projectleader solves these problems and theunit matures into a successful operation.But success brings complexity:editorialcomplexity from the increase in pagesand foreign language sites, technologicalcomplexity from the emergence of newmedia platforms.At the close,RichardSambrook,Controller of BBC News, facesa central dilemma:where to positionNews Online within BBC News.Autonomymeans it can remain a creativeand cohesive organisation that canrespond flexibly to themarket.Integration will allow the learning thathas been achieved to flow to the rest ofthe organisation – but risks damaging allthat is special in the way it operates.

1997 - 2002British Broadcasting CorporationBBCMedia industryInternetStrategic changeTechnological changeLeadershipCultureCognitionCreativity

21 ppFIELD303-119-8 (10pp)

9-498-045WOLFGANG KELLER ATKONIGSBRAU-HELLAS AE(A)

Gabarro, JJHarvard Business School

Raises issues concerning performanceevaluation,performance appraisal,managing ineffective performance,andconflicts in management style.Arewritten version of an earlier case.

$100million salesBeveragesHuman resourcesmanagementLeadershipManagement stylesPerformance appraisalSuperior and subordinate

18 ppFIELD5-400-069 (20pp)

9-498-046WOLFGANG KELLER ATKONIGSBRAU-HELLAS AE (B)

Gabarro, JJHarvard Business School

Designed as an in-class handoutfollowing the (A) case.A rewritten versionof an earlier case.

BeveragesHuman resourcesmanagementLeadershipManagement stylesPerformance appraisalSuperior and subordinate

5 ppFIELD5-400-069 (20pp)

IMD-3-0875WWW.EASYRENTACAR.COM

Kumar,NRogers,B


In April 2000,Stelios Haji-Ioannoulaunched easyRentacar,his latestInternet-based business.easyRentacarwas just one of several companiesoperating under the UK-based parentcompany,easyGroup,which alsomanages easyJet airlines andeasyEverything,a chain of Internet shops.Stelios, chairman and owner ofeasyGroup,was a charismatic andwealthy entrepreneur known for hisdown to earth,‘no frills’style that hadcome to exemplify the easy brand.Aftersigning a deal with DaimlerChrysler tolease 5,000 of its Mercedes A-Classvehicles,Stelios entered the rental car

business dominated by companies, suchas Budget,Avis and Hertz, that hadformed a cartel that fed off the corporateclient.He aimed to provide a low costalternative for consumers who paid outof their own pockets.The easyRentacarcase illustrates how Stelios has onceagain entered a new business with thegoal of re-defining the existing industrybusiness model to add shattering valuefor the customer. Instructors should notethat easyRentacar is the third case in aseries that includes ‘easyJet:TheWeb’sFavourtie Airline’ (IMD-3-0873), and‘easyEverything:The Internet Shop’(IMD-3-0874).

2000Car rental Europe<100 employeesInternetEntrepreneurshipIndustry analysis


303-074-1XELIBRI: A SIEMENSMOBILEADVENTURE

Kaufmann,LClemens,FHagen,HHedderich,FSassmann,H

WHU -Otto BeisheimGraduate SchoolofManagement

This case study is situated in themobilecommunication devices industry andpresents the launch of a newmobilephone brand of Germany’s Siemens AG,under the brand name‘Xelibri’, in 2002.Xelibri’s objective was to develop afashion-based value proposition in themobile phonemarket.The story iscentered on 34-year-old George Appling,President of Xelibri,who had been hiredfromMcKinsey & Company to conceive acomprehensive strategy for creating anew product category in the saturatedmobile phonemarket.At the time of thecase, first steps to introduce this newproduct category have already beentaken,while other issues, such as pricing,are open for discussion and shall beresolved by the students.To providethemwith background information, thecase study gives a description of thedevelopment of themobile phonemarket and Siemens’position in it. It alsogives an overview of the importance ofXelibri’s performance for Siemens’mobilephone business and explains the initial


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steps to set up the new operation.Theteaching note supplement is stetPowerPoint presentation given duringthe case writing seminar.

2003MarketingBrandmanagement and brandingEurope,Germanymarket entryInnovation,entrepreneurshipEntrepreneurial managementInternational management andinternational businessGeneral management and strategyProductmanagement and pricingChoice of distribution channelsFashion, telecommunication andmobile phoneStrategy implementationCompetition and competitivestrategyIndustry analysisNew product category

18 ppFIELD303-074-8 (19pp)303-074-9 (CD-ROM)

603-002-1ZARA

Ferdows,KMcDonough School of Business,GeorgetownUniversity

Machuca, JADUniversidad de Sevilla

Lewis,MWarwick Business School

The case offers an illustration of afast-response global supply,production,and retail network. In 2002 Zara,operating out of La Coruna in north-westSpain,was the only retailer that coulddeliver garments to its 507 stores in 33countries in just fifteen days after theywere designed. Its unique systems forproduct design,order administration,production,distribution and retailingwere behind this astonishing capability.Its unconventional approach providesinteresting opportunities for discussionand learning.The case is quite popularwith executives,MBA’s andundergraduate business students. It canbe used in a remarkably wide range ofcourses - from a core operationsmanagement course to electives focusedon international operations,operationsstrategy,global logistics,distribution,retailing,as well as in specialized andgeneral executive programmes.Theteaching note includes several

photographs from Zara’s operations in LaCoruna,and the appendices are availableas PowerPoint files as the teaching notesupplement ‘603-002-9’.This case was thewinner of the 2003 Indiana UniversityCenter for International BusinessEducation and Research (CIBER)-sponsored Production and OperationsManagement Society (POMS)International Case Competition.**ecchEuropean Case Awards CategoryWinner2005**

2002Global supply chainDesign-product-distribution-retailintegrationFast-response networksFashion retailingQueuing and inventorymodelsManufacturing-marketing interfaceTime-based competitionMechanising

15 ppFIELD603-002-8 (21pp)603-002-9 (s/w)


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100 best-selling cases, 2005 edition - The Case Centre · 303-001-1 2003SPECIALOLYMPICSWORLD SUMMERGAMES:MANAGINGA STAKEHOLDERNETWORK McNamara,P Murray,G Grampp,C Brown,P MichaelSmurfitGraduateSchoolof