Case_09_American_Red_Cross_TN

Case_09_American_Red_Cross_TN - Teaching Note: Case 9...

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Teaching Note: Case 9 – American Red Cross Case Objectives 1. To apply the concepts of strategic management to a non-profit organization. 2. To examine the importance of vision and mission statements, goals and objectives to managing non-profits. 3. To evaluate the impact of negative publicity on a non-profit organization and the implications for strategic leadership in such a case. See the table below to determine where to use this case: Chapter Use Key Concepts Additional Readings or Exercises 1: Strategy Concept Strategic management; vision, mission, strategic objectives; strategic implementation; strategic alliances 11: Strategic Leadership Leadership capabilities; ethical orientation See the CASE UPDATE at the end of this TN, which includes a video from the new president Gail McGovern Case Synopsis This case is set in the year 2002. It was inspired by the American Red Cross’ response to the tragic events of September 11, 2001, and its role in helping victims and rescuers. In the two years since 9/11, the American Red Cross had received a great deal of negative publicity as a result of its activities and its handling of the Liberty Disaster Relief Fund. With the arrival of a new CEO in August 2002, the case asks how Marsha “Marty” Johnson Evans should proceed in handling the issues that face the American Red Cross in her role as new CEO. The case is introduced through a host of challenges confronting Marsha Evans due to problems faced by the American Red Cross. The second section provides a very brief history of International Red Cross and the American Red Cross with reference to their fundamental principles and values. This is followed by a financial overview, use of technology and the American Red Cross’s strategic alliances with Coinstar and Mars Inc. for fund-raising endeavors. The next sections contain a description of the negative publicity that has plagued the American Red Cross since the turn of the century. Problems include a workers strike, a lawsuit relating to the handling of blood sales, the tragic events of September 11, 2001, the Liberty Disaster Relief Fund, removal from the BBB “give.org” web site, and inaccuracies contained in a March 10, 2002, report on the news show 60 Minutes. Questions remain about the viability and applicability of the organization’s mission, vision and values, and the role of the new CEO. What should Marsha Johnson Evans do?
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Teaching Plan This case is primarily about the importance of having an inspiring vision and a clearly communicated mission. Since many students have difficulty understanding how important these components are to strategy, this case is best used early in the semester, after discussion of Chapter 1. Most students know about the Red Cross, and have heard stories about successes and failures of this and other non-profits. Therefore, they should have lots of opinions about this case. Depending on the student’s majors, for instance if there are any public sector
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Case_09_American_Red_Cross_TN - Teaching Note: Case 9...

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