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Unformatted text preview: Robin Hood The Skeleton in the Corporate Closet The Best-Laid Incentive Plans Growing for Broke Crown Cork & Seal in 1989 Automation Consulting Services Enron: On the Side of the Angels American Red Cross United Way of America World Wrestling Entertainment+ Schoolhouse Lane Estates+ QVC+ McDonald’s+ Procter & Gamble+ Heineken+ 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Mattel's Misfit Toys* Apple Inc.: Taking a Bite Out of the Competition+ Jamba Juice* 22 23 24 Keurig Coffee* Weight Watchers International Inc.* A Horror Show at the Cinemaplex?* 30 31 32 Movie Weight Loss Coffee Ice Cream Airline s 12 FreshDirect: Delivering the Goods? + Grocery 16 P P s s 15 Retail, Women’s Fashion Ann Taylor: Survival in Specialty Retail+ s s s s 12 s s s s s 15 P P P P s P s s P 9 s P 7 s s 8 P P 6 P s s P P Internet Insurance Automotive Video Games Automotive s 11 12 9 10 9 s 10 Smoothies, Juice Bar, Restaurant 7 P 13 Computers, Consumer Electronics P s P P 6 7 6 7 14 Airline s s P P P s P P P P P P P P P P s s Toys Casino Industry s s 5 P s P s s P P s s P 4 s 7 7 s 5 s P P 13 s P P 10 7 s 9 10 eBay: Expanding into Asia+ KEY P = Primary s = Secondary * = New + = Revised 39 40 Consumer Electronics Pharmaceuticals, Personal Care Products, Medical Devices Movies Beer Consumer Products Restaurant Retail Wine Entertainment Nonprofit Nonprofit Ethics/Energy 3 36 37 38 One Ford: The Shape of Ford Motor Company to Come?+ American International Group and the Bonus Fiasco* Nintendo's Wii+ s P P P P s P s P s s P P P s P P 6 Publishing 35 P s s 6 Harvard Business School; Classic; Professional Services Retail General Motors+ P P P 5 P Reader's Digest: For Whom and for How Much Longer?+ 33 34 s 3 P 4 17 Build-A-Bear Workshop* Dippin’ Dots Ice Cream+ Southwest Airlines: Does “LUV” Last?+ JetBlue Airlines: Will it remain "Blue"?+ P 1 3 4 China's Geely's Automotive Holdings, Ltd.: Targeting the U.S. Market* Automotive 27 28 29 25 26 The Casino Industry+ P 1 2 P 1 Est. # of pages 4 Chapters P s P P s P s 7 s s P s s s s s 8 s P s s P s P P P s s s s s P s s s P P s P s s P s P s s s P s s P s s P s 9 10 11 ip de Le a ing ag P s P P s P s s P s s 12 Ma n tio n va 4 8 8 8 4 4 4 9 9 : 4 4 8 8 8 8 8 ISBN 978-0-07-737444-0 MHID 0-07-737444-4 9 4 9 : 4 4 : 8 8 8 4 4 : 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 4 4 4 4 99 9 99 9 : : : : 4 4 : : 9 4 4 4 9 9 4 4 9 4 4 : : : : : 4 4 : 9 4 4 : : 4 8 8 4 4 : 999 8 8 4 4 9 99 4 4 4 4 4 4 4 Video PowerPoint Web Links : : : : Excel Inn o rsh St rat eg y Co Ex nc te ep rn t al En Int vi ern ron al me An nt I nte aly lle sis ctu B a lA us in ss es ets s-l Co ev rp el o St rat rat Int e-l eg ern ev y e lS En atio tra na t teg C re l St om pr y pe eneu rate titi ria gy St ve lS ra Dt teg yn rate ic am gie Or Co ics s & ga n niz tro l& ati St on rat Go al e v gic ern De sig an ce n Harvard Business School; Classic; Manufacturing Hypothetical; HBR Brief Case Hypothetical; HBR Brief Case Hypothetical; HBR Brief Case Housewares & Accessories, Porcelain Collectibles; classic Hypothetical/Classic Industry Lenovo’s Purchase of IBM’s PC Division* Computers Samsung Electronics+ Johnson & Johnson+ 18 19 20 21 Pixar+ Edward Marshall Boehm, Inc. 2 Case Title 1 Case Number from Alan Eisner Suggested Cases If you are seeking new cases to enliven your strategic management course, try these Personal favorites of Alan Eisner, the cases profiled here are just a few of the excellent cases chosen to complement the chapters of the text. Robin Hood (Case 1) Solid Concepts Deserve Fresh and Excellent Cases Dear Instructor, Thank you for requesting this complimentary copy of Strategic Management: Text and Cases! Whether you are already familiar with this text or this is your first time reviewing it, I believe this strategy textbook will provide you with both great concepts and cases! Instructors who use this textbook tell us that the discussion of the key theories and concepts, combined with current and interesting examples, enables their students to grasp the difficult, yet crucial, information that they need in order to prepare themselves to succeed in business. A key component of most strategic management courses goes beyond the discussion of concepts and theories, however. Case studies provide students with an important opportunity to read about companies and realistic situations and then use critical-thinking skills to suggest answers for the problems they have studied. I’ve created this guide to assist you with your course planning. This document not only includes a grid that identifies the primary and secondary cases that relate to the chapters of this book but also includes some of my personal teaching suggestions. My coauthors and I have also added a large selection of corresponding videos, PowerPoint presentations, Excel spreadsheets for financial tables, and Web links for more information on the case companies. For those of you who have used previous editions of the book, you will see many of the same companies in the cases. However, we have carefully updated the case stories to present cases that are fresh enough for students and rigorous enough for instructors. We hope that this also reduces instructor preparation time in choosing familiar companies. Additionally, as you evaluate and use the cases in our 5th edition, I welcome your feedback and suggestions, which can be sent to [email protected] I look forward to your insightful comments. Sincerely, Alan B. Eisner Pace University I often start the very first session of the semester with a short case. One of my all-time favorites is Robin Hood by Joseph Lampel. This classic case is an excellent introduction to strategic management using a nonbusiness situation. Since it is only one page, I ask students to read it during class and discuss it. In the case, Robin Hood and his Merrymen are in trouble as wealthy travelers are avoiding Sherwood Forest. I weave a discussion of problem identification and potential solution analysis that helps to set the tone for case discussions for the rest of the semester. This case brings up mission issues that go with Chapter 1 (“Strategic Management”). The American Red Cross (Case 9) and QVC (Case 13) also link well with Chapter 1 if you are looking for alternatives. A Horror Show at the Cinemaplex? (Case 31) In this edition we have added this new case to match Chapter 2 (“Analyzing the External Environment of the Firm”) because it offers a great platform for exploring environmental analysis. Movies remain as popular as ever, but opportunities for viewing outside the theater have greatly increased. While motion picture studios increased revenues through product licensing, DVD sales, and international expansion, the exhibitors—movie theaters—have seen their business decline. Movies are more available than ever, but fewer people are venturing to the theater to see them. Many theaters have ceased operation, driven from the market by consolidation and loss of patrons. We have also revised The Casino Industry (Case 21) for those looking for alternatives. United Way of America (Case 10) Our United Way of America case works well with Chapter 2 (“Analyzing the External Environment of the Firm”) and Chapters 3 and 4 (“Assessing the Internal Environment of the Firm” and “Recognizing a Firm’s Intellectual Assets,” respectively). The case also can be used with Chapter 5 (“Business-Level Strategy”), giving it a lot of flexibility. In the case, CEO Brian Gallagher establishes new membership standards for United Way affiliates’ operations, rebrands United Way as doing “what matters” in the communities it serves, and addresses the long-term needs of communities. Gallagher needed to convince the United Way affiliates to buy into the change effort but did not have much leverage over them. World Wrestling Entertainment (Case 11) The revised World Wrestling Entertainment case is quite versatile because it fits with a discussion of resources complementing Chapters 3 and 4 (“Assessing the Internal Environment of the Firm” and “Recognizing a Firm’s Intellectual Assets,” respectively), corporate diversification (Chapter 6—“Corporate-Level Strategy”), or entrepreneurial issues (Chapter 12—“Managing Innovation”). WWE’s potent mix of shaved, pierced, and pumped-up muscled hunks; buxom, scantily clad beauties; and body-bashing clashes of good versus evil had resulted in an empire that claimed over 35 million fans. However, when CEO Linda McMahon decided to push for growth by moving the firm beyond its wrestling roots, WWE’s efforts led to significant losses. While not all students are fans of professional wrestling, it seems there is always at least one fan in a class. That person’s enthusiasm seems to energize the room for an action-packed discussion! JetBlue Airlines: Will It Remain “Blue”? (Case 26) The revised JetBlue Airlines case is great with Chapter 5 (“Business-Level Strategy”). JetBlue’s airline start-up success story is facing new challenges as operational problems have surfaced and the founder has left the CEO’s seat. The question that always gets asked with this case is how the firm can maintain a cost leadership position with the additional aircraft type. Students in my classroom seem very engaged with this company’s success story and the video we have made to accompany the case, yet they are also challenged to create recommendations for JetBlue moving forward. Build-A-Bear Workshop (Case 32) Chief Executive Bear Maxine Clark has her work cut out for her. While Build-A-Bear celebrated the making of its 50-millionth furry friend, the company’s future prospects began to fade. Following a huge success in the early years of operations, Build-A-Bear Workshop was faced with a decline in sales as of 2008. This case works best with Chapter 5 (“Business-Level Strategy”) or a combined discussion of Chapters 5 and 7 (“Business-Level Strategy” and “International Strategy,” respectively). The rich detail in this case also allows it to work with Chapter 2 (“Analyzing the External Environment of the Firm”) as well as Chapter 3 (“Assessing the Internal Environment of the Firm”). Apple Inc.: Taking a Bite Out of the Competition (Case 23) I like to use our revised Apple case with Chapters 3 and 4 (“Assessing the Internal Environment of the Firm” and “Recognizing a Firm’s Intellectual Assets,” respectively). After 30 years of carving a niche for itself as the premier provider of technology solutions for graphic artists, Web designers, and educators, Apple appeared to be reinventing itself as a digital entertainment company with its ubiquitous iPod. This case also works with Chapter 2 (“Analyzing the External Environment of the Firm”). The case profiles Apple’s CEO Steve Jobs and questions the future and the search for solutions. Instructors can also use the case with Chapters 5 and 6 (“Business-Level Strategy” and “Corporate-Level Strategy,” respectively) to look at business- and corporate- level strategic solutions. Apple resonates with almost every student because almost all of them have an iPod. China’s Geely Automotive Holdings, Ltd.: Targeting the U.S. Market (Case 25) I like the Geely case for international strategy, and while many students are unfamiliar with the company, they certainly know about cars. Geely, China’s largest privately owned automaker, was considering a play for the American automobile market (Chapter 7—“International Strategy”). Chinese vehicle exports had primarily been limited to buses and trucks and other heavy equipment; however, Geely felt it might be ready to compete in the large, potentially lucrative U.S. market with low-priced vehicles. FreshDirect: Delivering the Goods? (Case 40) This revised FreshDirect case is quite flexible and comprehensive because it fits with a discussion of Chapter 2 (“Analyzing the External Environment of the Firm”), Chapter 3 (“Assessing the Internal Environment of the Firm”), Chapter 5 (“BusinessLevel Strategy”), Chapter 8 (“Entrepreneurial Strategy and Competitive Dynamics”), Chapter 11 (“Strategic Leadership”), and Chapter 12 (“Managing Innovation”). FreshDirect is a New York City–based online grocery store with a state-of-theart production center; top-notch personnel; leadingedge manufacturing software; the highest standards of cleanliness, health, and safety; and an informative and user-friendly Web site. Despite a large potential target audience, the online segment has been slow to catch on. For FreshDirect, maintaining high product quality while keeping prices low leads to razor-thin margins and abundant competition from both online and traditional grocers. Mattel’s Misfit Toys (Case 22) This case details the lead paint crisis that toy manufacturers are facing and is great with both Chapter 9 (“Strategic Control and Governance”) and Chapter 11 (“Strategic Leadership”) because it provides students an overview of Mattel’s problems in its supply chain and of balancing competitive pressures with restoring consumer trust. We also have our new American International Group and the Bonus Fiasco (Case 37) and Enron: On the Side of the Angels (Case 8) for those looking for alternatives. Automation Consulting Services (Case 7) This Harvard Business School case is terrific with Chapter 9 (“Strategic Control and Governance”) and Chapter 10 (“Organizational Design”). In this case, Automation Consulting’s founding partners grapple with the classic challenges of managing rapid growth and geographic expansion. The three founding partners of Automation Consulting have to tackle tensions between the desire for local-office autonomy, the need for standardized methods to monitor growing costs, and several other issues. The Skeleton in the Corporate Closet (Case 3) This Harvard Business Review Brief case is perfect for Chapter 11 (“Strategic Leadership”). My students get so involved in the case that I usually budget extra time to discuss the leadership and ethical issues. Hap Parker, CEO of GPC, has new, unwanted, ambiguous information. What Parker does with the information will define his tenure as CEO and perhaps the future of GPC, the firm his grandfather started 75 years ago. Keurig Coffee (Case 29) The new Keurig case is a caffeine-charged account of innovation in the single-cup-brewing coffee maker business and is excellent with Chapter 12 (“Managing Innovation”) as well as Chapter 8 (“Entrepreneurial Strategy and Competitive Dynamics”) and Chapter 11 (“Strategic Leadership”). New CEO Michelle Stacey must perk up Keurig from a technologyfocused firm to one that is market-aware. Dippin’ Dots Ice Cream (Case 28) We have revised my favorite end-of-semester case, Dippin’ Dots, to account for the new competitive environment. It fits with both Chapter 8 (“Entrepreneurial Strategy and Competitive Dynamics”) and Chapter 12 (“Managing Innovation”) and can also be used earlier in the course with Chapter 5 (“Business-Level Strategy”). Dippin’ Dots are tiny round beads of ice cream made and stored at super-cold temperatures and served in a soufflé cup. They are sold only through franchisees’ scoop shops and national accounts. Dippin’ Dots founder and inventor, Curt Jones, is back at the helm and is faced with new challenges due to the economic downturn. With our accompanying video segment, even students who have not tried the product will understand it and get involved in an active class discussion regarding what Jones and Dippin’ Dots should do next. Robin Hood (Case 1) Solid Concepts Deserve Fresh and Excellent Cases Dear Instructor, Thank you for requesting this complimentary copy of Strategic Management: Text and Cases! Whether you are already familiar with this text or this is your first time reviewing it, I believe this strategy textbook will provide you with both great concepts and cases! Instructors who use this textbook tell us that the discussion of the key theories and concepts, combined with current and interesting examples, enables their students to grasp the difficult, yet crucial, information that they need in order to prepare themselves to succeed in business. A key component of most strategic management courses goes beyond the discussion of concepts and theories, however. Case studies provide students with an important opportunity to read about companies and realistic situations and then use critical-thinking skills to suggest answers for the problems they have studied. I’ve created this guide to assist you with your course planning. This document not only includes a grid that identifies the primary and secondary cases that relate to the chapters of this book but also includes some of my personal teaching suggestions. My coauthors and I have also added a large selection of corresponding videos, PowerPoint presentations, Excel spreadsheets for financial tables, and Web links for more information on the case companies. For those of you who have used previous editions of the book, you will see many of the same companies in the cases. However, we have carefully updated the case stories to present cases that are fresh enough for students and rigorous enough for instructors. We hope that this also reduces instructor preparation time in choosing familiar companies. Additionally, as you evaluate and use the cases in our 5th edition, I welcome your feedback and suggestions, which can be sent to [email protected] I look forward to your insightful comments. Sincerely, Alan B. Eisner Pace University I often start the very first session of the semester with a short case. One of my all-time favorites is Robin Hood by Joseph Lampel. This classic case is an excellent introduction to strategic management using a nonbusiness situation. Since it is only one page, I ask students to read it during class and discuss it. In the case, Robin Hood and his Merrymen are in trouble as wealthy travelers are avoiding Sherwood Forest. I weave a discussion of problem identification and potential solution analysis that helps to set the tone for case discussions for the rest of the semester. This case brings up mission issues that go with Chapter 1 (“Strategic Management”). The American Red Cross (Case 9) and QVC (Case 13) also link well with Chapter 1 if you are looking for alternatives. A Horror Show at the Cinemaplex? (Case 31) In this edition we have added this new case to match Chapter 2 (“Analyzing the External Environment of the Firm”) because it offers a great platform for exploring environmental analysis. Movies remain as popular as ever, but opportunities for viewing outside the theater have greatly increased. While motion picture studios increased revenues through product licensing, DVD sales, and international expansion, the exhibitors—movie theaters—have seen their business decline. Movies are more available than ever, but fewer people are venturing to the theater to see them. Many theaters have ceased operation, driven from the market by consolidation and loss of patrons. We have also revised The Casino Industry (Case 21) for those looking for alternatives. United Way of America (Case 10) Our United Way of America case works well with Chapter 2 (“Analyzing the External Environment of the Firm”) and Chapters 3 and 4 (“Assessing the Internal Environment of the Firm” and “Recognizing a Firm’s Intellectual Assets,” respectively). The case also can be used with Chapter 5 (“Business-Level Strategy”), giving it a lot of flexibility. In the case, CEO Brian Gallagher establishes new membership standards for United Way affiliates’ operations, rebrands United Way as doing “what matters” in the communities it serves, and addresses the long-term needs of communities. Gallagher needed to convince the United Way affiliates to buy into the change effort but did not have much leverage over them. World Wrestling Entertainment (Case 11) The revised World Wrestling Entertainment case is quite versatile because it fits with a discussion of resources complementing Chapters 3 and 4 (“Assessing the Internal Environment of the Firm” and “Recognizing a Firm’s Intellectual Assets,” respectively), corporate diversification (Chapter 6—“Corporate-Level Strategy”), or entrepreneurial issues (Chapter 12—“Managing Innovation”). WWE’s potent mix of shaved, pierced, and pumped-up muscled hunks; buxom, scantily clad beauties; and body-bashing clashes of good versus evil had resulted in an empire that claimed over 35 million fans. However, when CEO Linda McMahon decided to push for growth by moving the firm beyond its wrestling roots, WWE’s efforts led to significant losses. While not all students are fans of professional wrestling, it seems there is always at least one fan in a class. That person’s enthusiasm seems to energize the room for an action-packed discussion! JetBlue Airlines: Will It Remain “Blue”? (Case 26) The revised JetBlue Airlines case is great with Chapter 5 (“Business-Level Strategy”). JetBlue’s airline start-up success story is facing new challenges as operational problems have surfaced and the founder has left the CEO’s seat. The question that always gets asked with this case is how the firm can maintain a cost leadership position with the additional aircraft type. Students in my classroom seem very engaged with this company’s success story and the video we have made to accompany the case, yet they are also challenged to create recommendations for JetBlue moving forward. Build-A-Bear Workshop (Case 32) Chief Executive Bear Maxine Clark has her work cut out for her. While Build-A-Bear celebrated the making of its 50-millionth furry friend, the company’s future prospects began to fade. Following a huge success in the early years of operations, Build-A-Bear Workshop was faced with a decline in sales as of 2008. This case works best with Chapter 5 (“Business-Level Strategy”) or a combined discussion of Chapters 5 and 7 (“Business-Level Strategy” and “International Strategy,” respectively). The rich detail in this case also allows it to work with Chapter 2 (“Analyzing the External Environment of the Firm”) as well as Chapter 3 (“Assessing the Internal Environment of the Firm”). Apple Inc.: Taking a Bite Out of the Competition (Case 23) I like to use our revised Apple case with Chapters 3 and 4 (“Assessing the Internal Environment of the Firm” and “Recognizing a Firm’s Intellectual Assets,” respectively). After 30 years of carving a niche for itself as the premier provider of technology solutions for graphic artists, Web designers, and educators, Apple appeared to be reinventing itself as a digital entertainment company with its ubiquitous iPod. This case also works with Chapter 2 (“Analyzing the External Environment of the Firm”). The case profiles Apple’s CEO Steve Jobs and questions the future and the search for solutions. Instructors can also use the case with Chapters 5 and 6 (“Business-Level Strategy” and “Corporate-Level Strategy,” respectively) to look at business- and corporate- level strategic solutions. Apple resonates with almost every student because almost all of them have an iPod. China’s Geely Automotive Holdings, Ltd.: Targeting the U.S. Market (Case 25) I like the Geely case for international strategy, and while many students are unfamiliar with the company, they certainly know about cars. Geely, China’s largest privately owned automaker, was considering a play for the American automobile market (Chapter 7—“International Strategy”). Chinese vehicle exports had primarily been limited to buses and trucks and other heavy equipment; however, Geely felt it might be ready to compete in the large, potentially lucrative U.S. market with low-priced vehicles. FreshDirect: Delivering the Goods? (Case 40) This revised FreshDirect case is quite flexible and comprehensive because it fits with a discussion of Chapter 2 (“Analyzing the External Environment of the Firm”), Chapter 3 (“Assessing the Internal Environment of the Firm”), Chapter 5 (“BusinessLevel Strategy”), Chapter 8 (“Entrepreneurial Strategy and Competitive Dynamics”), Chapter 11 (“Strategic Leadership”), and Chapter 12 (“Managing Innovation”). FreshDirect is a New York City–based online grocery store with a state-of-theart production center; top-notch personnel; leadingedge manufacturing software; the highest standards of cleanliness, health, and safety; and an informative and user-friendly Web site. Despite a large potential target audience, the online segment has been slow to catch on. For FreshDirect, maintaining high product quality while keeping prices low leads to razor-thin margins and abundant competition from both online and traditional grocers. Mattel’s Misfit Toys (Case 22) This case details the lead paint crisis that toy manufacturers are facing and is great with both Chapter 9 (“Strategic Control and Governance”) and Chapter 11 (“Strategic Leadership”) because it provides students an overview of Mattel’s problems in its supply chain and of balancing competitive pressures with restoring consumer trust. We also have our new American International Group and the Bonus Fiasco (Case 37) and Enron: On the Side of the Angels (Case 8) for those looking for alternatives. Automation Consulting Services (Case 7) This Harvard Business School case is terrific with Chapter 9 (“Strategic Control and Governance”) and Chapter 10 (“Organizational Design”). In this case, Automation Consulting’s founding partners grapple with the classic challenges of managing rapid growth and geographic expansion. The three founding partners of Automation Consulting have to tackle tensions between the desire for local-office autonomy, the need for standardized methods to monitor growing costs, and several other issues. The Skeleton in the Corporate Closet (Case 3) This Harvard Business Review Brief case is perfect for Chapter 11 (“Strategic Leadership”). My students get so involved in the case that I usually budget extra time to discuss the leadership and ethical issues. Hap Parker, CEO of GPC, has new, unwanted, ambiguous information. What Parker does with the information will define his tenure as CEO and perhaps the future of GPC, the firm his grandfather started 75 years ago. Keurig Coffee (Case 29) The new Keurig case is a caffeine-charged account of innovation in the single-cup-brewing coffee maker business and is excellent with Chapter 12 (“Managing Innovation”) as well as Chapter 8 (“Entrepreneurial Strategy and Competitive Dynamics”) and Chapter 11 (“Strategic Leadership”). New CEO Michelle Stacey must perk up Keurig from a technologyfocused firm to one that is market-aware. Dippin’ Dots Ice Cream (Case 28) We have revised my favorite end-of-semester case, Dippin’ Dots, to account for the new competitive environment. It fits with both Chapter 8 (“Entrepreneurial Strategy and Competitive Dynamics”) and Chapter 12 (“Managing Innovation”) and can also be used earlier in the course with Chapter 5 (“Business-Level Strategy”). Dippin’ Dots are tiny round beads of ice cream made and stored at super-cold temperatures and served in a soufflé cup. They are sold only through franchisees’ scoop shops and national accounts. Dippin’ Dots founder and inventor, Curt Jones, is back at the helm and is faced with new challenges due to the economic downturn. With our accompanying video segment, even students who have not tried the product will understand it and get involved in an active class discussion regarding what Jones and Dippin’ Dots should do next. Robin Hood (Case 1) Solid Concepts Deserve Fresh and Excellent Cases Dear Instructor, Thank you for requesting this complimentary copy of Strategic Management: Text and Cases! Whether you are already familiar with this text or this is your first time reviewing it, I believe this strategy textbook will provide you with both great concepts and cases! Instructors who use this textbook tell us that the discussion of the key theories and concepts, combined with current and interesting examples, enables their students to grasp the difficult, yet crucial, information that they need in order to prepare themselves to succeed in business. A key component of most strategic management courses goes beyond the discussion of concepts and theories, however. Case studies provide students with an important opportunity to read about companies and realistic situations and then use critical-thinking skills to suggest answers for the problems they have studied. I’ve created this guide to assist you with your course planning. This document not only includes a grid that identifies the primary and secondary cases that relate to the chapters of this book but also includes some of my personal teaching suggestions. My coauthors and I have also added a large selection of corresponding videos, PowerPoint presentations, Excel spreadsheets for financial tables, and Web links for more information on the case companies. For those of you who have used previous editions of the book, you will see many of the same companies in the cases. However, we have carefully updated the case stories to present cases that are fresh enough for students and rigorous enough for instructors. We hope that this also reduces instructor preparation time in choosing familiar companies. Additionally, as you evaluate and use the cases in our 5th edition, I welcome your feedback and suggestions, which can be sent to [email protected] I look forward to your insightful comments. Sincerely, Alan B. Eisner Pace University I often start the very first session of the semester with a short case. One of my all-time favorites is Robin Hood by Joseph Lampel. This classic case is an excellent introduction to strategic management using a nonbusiness situation. Since it is only one page, I ask students to read it during class and discuss it. In the case, Robin Hood and his Merrymen are in trouble as wealthy travelers are avoiding Sherwood Forest. I weave a discussion of problem identification and potential solution analysis that helps to set the tone for case discussions for the rest of the semester. This case brings up mission issues that go with Chapter 1 (“Strategic Management”). The American Red Cross (Case 9) and QVC (Case 13) also link well with Chapter 1 if you are looking for alternatives. A Horror Show at the Cinemaplex? (Case 31) In this edition we have added this new case to match Chapter 2 (“Analyzing the External Environment of the Firm”) because it offers a great platform for exploring environmental analysis. Movies remain as popular as ever, but opportunities for viewing outside the theater have greatly increased. While motion picture studios increased revenues through product licensing, DVD sales, and international expansion, the exhibitors—movie theaters—have seen their business decline. Movies are more available than ever, but fewer people are venturing to the theater to see them. Many theaters have ceased operation, driven from the market by consolidation and loss of patrons. We have also revised The Casino Industry (Case 21) for those looking for alternatives. United Way of America (Case 10) Our United Way of America case works well with Chapter 2 (“Analyzing the External Environment of the Firm”) and Chapters 3 and 4 (“Assessing the Internal Environment of the Firm” and “Recognizing a Firm’s Intellectual Assets,” respectively). The case also can be used with Chapter 5 (“Business-Level Strategy”), giving it a lot of flexibility. In the case, CEO Brian Gallagher establishes new membership standards for United Way affiliates’ operations, rebrands United Way as doing “what matters” in the communities it serves, and addresses the long-term needs of communities. Gallagher needed to convince the United Way affiliates to buy into the change effort but did not have much leverage over them. World Wrestling Entertainment (Case 11) The revised World Wrestling Entertainment case is quite versatile because it fits with a discussion of resources complementing Chapters 3 and 4 (“Assessing the Internal Environment of the Firm” and “Recognizing a Firm’s Intellectual Assets,” respectively), corporate diversification (Chapter 6—“Corporate-Level Strategy”), or entrepreneurial issues (Chapter 12—“Managing Innovation”). WWE’s potent mix of shaved, pierced, and pumped-up muscled hunks; buxom, scantily clad beauties; and body-bashing clashes of good versus evil had resulted in an empire that claimed over 35 million fans. However, when CEO Linda McMahon decided to push for growth by moving the firm beyond its wrestling roots, WWE’s efforts led to significant losses. While not all students are fans of professional wrestling, it seems there is always at least one fan in a class. That person’s enthusiasm seems to energize the room for an action-packed discussion! JetBlue Airlines: Will It Remain “Blue”? (Case 26) The revised JetBlue Airlines case is great with Chapter 5 (“Business-Level Strategy”). JetBlue’s airline start-up success story is facing new challenges as operational problems have surfaced and the founder has left the CEO’s seat. The question that always gets asked with this case is how the firm can maintain a cost leadership position with the additional aircraft type. Students in my classroom seem very engaged with this company’s success story and the video we have made to accompany the case, yet they are also challenged to create recommendations for JetBlue moving forward. Build-A-Bear Workshop (Case 32) Chief Executive Bear Maxine Clark has her work cut out for her. While Build-A-Bear celebrated the making of its 50-millionth furry friend, the company’s future prospects began to fade. Following a huge success in the early years of operations, Build-A-Bear Workshop was faced with a decline in sales as of 2008. This case works best with Chapter 5 (“Business-Level Strategy”) or a combined discussion of Chapters 5 and 7 (“Business-Level Strategy” and “International Strategy,” respectively). The rich detail in this case also allows it to work with Chapter 2 (“Analyzing the External Environment of the Firm”) as well as Chapter 3 (“Assessing the Internal Environment of the Firm”). Apple Inc.: Taking a Bite Out of the Competition (Case 23) I like to use our revised Apple case with Chapters 3 and 4 (“Assessing the Internal Environment of the Firm” and “Recognizing a Firm’s Intellectual Assets,” respectively). After 30 years of carving a niche for itself as the premier provider of technology solutions for graphic artists, Web designers, and educators, Apple appeared to be reinventing itself as a digital entertainment company with its ubiquitous iPod. This case also works with Chapter 2 (“Analyzing the External Environment of the Firm”). The case profiles Apple’s CEO Steve Jobs and questions the future and the search for solutions. Instructors can also use the case with Chapters 5 and 6 (“Business-Level Strategy” and “Corporate-Level Strategy,” respectively) to look at business- and corporate- level strategic solutions. Apple resonates with almost every student because almost all of them have an iPod. China’s Geely Automotive Holdings, Ltd.: Targeting the U.S. Market (Case 25) I like the Geely case for international strategy, and while many students are unfamiliar with the company, they certainly know about cars. Geely, China’s largest privately owned automaker, was considering a play for the American automobile market (Chapter 7—“International Strategy”). Chinese vehicle exports had primarily been limited to buses and trucks and other heavy equipment; however, Geely felt it might be ready to compete in the large, potentially lucrative U.S. market with low-priced vehicles. FreshDirect: Delivering the Goods? (Case 40) This revised FreshDirect case is quite flexible and comprehensive because it fits with a discussion of Chapter 2 (“Analyzing the External Environment of the Firm”), Chapter 3 (“Assessing the Internal Environment of the Firm”), Chapter 5 (“BusinessLevel Strategy”), Chapter 8 (“Entrepreneurial Strategy and Competitive Dynamics”), Chapter 11 (“Strategic Leadership”), and Chapter 12 (“Managing Innovation”). FreshDirect is a New York City–based online grocery store with a state-of-theart production center; top-notch personnel; leadingedge manufacturing software; the highest standards of cleanliness, health, and safety; and an informative and user-friendly Web site. Despite a large potential target audience, the online segment has been slow to catch on. For FreshDirect, maintaining high product quality while keeping prices low leads to razor-thin margins and abundant competition from both online and traditional grocers. Mattel’s Misfit Toys (Case 22) This case details the lead paint crisis that toy manufacturers are facing and is great with both Chapter 9 (“Strategic Control and Governance”) and Chapter 11 (“Strategic Leadership”) because it provides students an overview of Mattel’s problems in its supply chain and of balancing competitive pressures with restoring consumer trust. We also have our new American International Group and the Bonus Fiasco (Case 37) and Enron: On the Side of the Angels (Case 8) for those looking for alternatives. Automation Consulting Services (Case 7) This Harvard Business School case is terrific with Chapter 9 (“Strategic Control and Governance”) and Chapter 10 (“Organizational Design”). In this case, Automation Consulting’s founding partners grapple with the classic challenges of managing rapid growth and geographic expansion. The three founding partners of Automation Consulting have to tackle tensions between the desire for local-office autonomy, the need for standardized methods to monitor growing costs, and several other issues. The Skeleton in the Corporate Closet (Case 3) This Harvard Business Review Brief case is perfect for Chapter 11 (“Strategic Leadership”). My students get so involved in the case that I usually budget extra time to discuss the leadership and ethical issues. Hap Parker, CEO of GPC, has new, unwanted, ambiguous information. What Parker does with the information will define his tenure as CEO and perhaps the future of GPC, the firm his grandfather started 75 years ago. Keurig Coffee (Case 29) The new Keurig case is a caffeine-charged account of innovation in the single-cup-brewing coffee maker business and is excellent with Chapter 12 (“Managing Innovation”) as well as Chapter 8 (“Entrepreneurial Strategy and Competitive Dynamics”) and Chapter 11 (“Strategic Leadership”). New CEO Michelle Stacey must perk up Keurig from a technologyfocused firm to one that is market-aware. Dippin’ Dots Ice Cream (Case 28) We have revised my favorite end-of-semester case, Dippin’ Dots, to account for the new competitive environment. It fits with both Chapter 8 (“Entrepreneurial Strategy and Competitive Dynamics”) and Chapter 12 (“Managing Innovation”) and can also be used earlier in the course with Chapter 5 (“Business-Level Strategy”). Dippin’ Dots are tiny round beads of ice cream made and stored at super-cold temperatures and served in a soufflé cup. They are sold only through franchisees’ scoop shops and national accounts. Dippin’ Dots founder and inventor, Curt Jones, is back at the helm and is faced with new challenges due to the economic downturn. With our accompanying video segment, even students who have not tried the product will understand it and get involved in an active class discussion regarding what Jones and Dippin’ Dots should do next. Robin Hood The Skeleton in the Corporate Closet The Best-Laid Incentive Plans Growing for Broke Crown Cork & Seal in 1989 Automation Consulting Services Enron: On the Side of the Angels American Red Cross United Way of America World Wrestling Entertainment+ Schoolhouse Lane Estates+ QVC+ McDonald’s+ Procter & Gamble+ Heineken+ 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Mattel's Misfit Toys* Apple Inc.: Taking a Bite Out of the Competition+ Jamba Juice* 22 23 24 Keurig Coffee* Weight Watchers International Inc.* A Horror Show at the Cinemaplex?* 30 31 32 Movie Weight Loss Coffee Ice Cream Airline s 12 FreshDirect: Delivering the Goods? + Grocery 16 P P s s 15 Retail, Women’s Fashion Ann Taylor: Survival in Specialty Retail+ s s s s 12 s s s s s 15 P P P P s P s s P 9 s P 7 s s 8 P P 6 P s s P P Internet Insurance Automotive Video Games Automotive s 11 12 9 10 9 s 10 Smoothies, Juice Bar, Restaurant 7 P 13 Computers, Consumer Electronics P s P P 6 7 6 7 14 Airline s s P P P s P P P P P P P P P P s s Toys Casino Industry s s 5 P s P s s P P s s P 4 s 7 7 s 5 s P P 13 s P P 10 7 s 9 10 eBay: Expanding into Asia+ KEY P = Primary s = Secondary * = New + = Revised 39 40 Consumer Electronics Pharmaceuticals, Personal Care Products, Medical Devices Movies Beer Consumer Products Restaurant Retail Wine Entertainment Nonprofit Nonprofit Ethics/Energy 3 36 37 38 One Ford: The Shape of Ford Motor Company to Come?+ American International Group and the Bonus Fiasco* Nintendo's Wii+ s P P P P s P s P s s P P P s P P 6 Publishing 35 P s s 6 Harvard Business School; Classic; Professional Services Retail General Motors+ P P P 5 P Reader's Digest: For Whom and for How Much Longer?+ 33 34 s 3 P 4 17 Build-A-Bear Workshop* Dippin’ Dots Ice Cream+ Southwest Airlines: Does “LUV” Last?+ JetBlue Airlines: Will it remain "Blue"?+ P 1 3 4 China's Geely's Automotive Holdings, Ltd.: Targeting the U.S. Market* Automotive 27 28 29 25 26 The Casino Industry+ P 1 2 P 1 Est. # of pages 4 Chapters P s P P s P s 7 s s P s s s s s 8 s P s s P s P P P s s s s s P s s s P P s P s s P s P s s s P s s P s s P s 9 10 11 ip de Le a ing ag P s P P s P s s P s s 12 Ma n tio n va 4 8 8 8 4 4 4 9 9 : 4 4 8 8 8 8 8 ISBN 978-0-07-737444-0 MHID 0-07-737444-4 9 4 9 : 4 4 : 8 8 8 4 4 : 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 4 4 4 4 99 9 99 9 : : : : 4 4 : : 9 4 4 4 9 9 4 4 9 4 4 : : : : : 4 4 : 9 4 4 : : 4 8 8 4 4 : 999 8 8 4 4 9 99 4 4 4 4 4 4 4 Video PowerPoint Web Links : : : : Excel Inn o rsh St rat eg y Co Ex nc te ep rn t al En Int vi ern ron al me An nt I nte aly lle sis ctu B a lA us in ss es ets s-l Co ev rp el o St rat rat Int e-l eg ern ev y e lS En atio tra na t teg C re l St om pr y pe eneu rate titi ria gy St ve lS ra Dt teg yn rate ic am gie Or Co ics s & ga n niz tro l& ati St on rat Go al e v gic ern De sig an ce n Harvard Business School; Classic; Manufacturing Hypothetical; HBR Brief Case Hypothetical; HBR Brief Case Hypothetical; HBR Brief Case Housewares & Accessories, Porcelain Collectibles; classic Hypothetical/Classic Industry Lenovo’s Purchase of IBM’s PC Division* Computers Samsung Electronics+ Johnson & Johnson+ 18 19 20 21 Pixar+ Edward Marshall Boehm, Inc. 2 Case Title 1 Case Number from Alan Eisner Suggested Cases If you are seeking new cases to enliven your strategic management course, try these Personal favorites of Alan Eisner, the cases profiled here are just a few of the excellent cases chosen to complement the chapters of the text. Robin Hood The Skeleton in the Corporate Closet The Best-Laid Incentive Plans Growing for Broke Crown Cork & Seal in 1989 Automation Consulting Services Enron: On the Side of the Angels American Red Cross United Way of America World Wrestling Entertainment+ Schoolhouse Lane Estates+ QVC+ McDonald’s+ Procter & Gamble+ Heineken+ 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Mattel's Misfit Toys* Apple Inc.: Taking a Bite Out of the Competition+ Jamba Juice* 22 23 24 Keurig Coffee* Weight Watchers International Inc.* A Horror Show at the Cinemaplex?* 30 31 32 Movie Weight Loss Coffee Ice Cream Airline s 12 FreshDirect: Delivering the Goods? + Grocery 16 P P s s 15 Retail, Women’s Fashion Ann Taylor: Survival in Specialty Retail+ s s s s 12 s s s s s 15 P P P P s P s s P 9 s P 7 s s 8 P P 6 P s s P P Internet Insurance Automotive Video Games Automotive s 11 12 9 10 9 s 10 Smoothies, Juice Bar, Restaurant 7 P 13 Computers, Consumer Electronics P s P P 6 7 6 7 14 Airline s s P P P s P P P P P P P P P P s s Toys Casino Industry s s 5 P s P s s P P s s P 4 s 7 7 s 5 s P P 13 s P P 10 7 s 9 10 eBay: Expanding into Asia+ KEY P = Primary s = Secondary * = New + = Revised 39 40 Consumer Electronics Pharmaceuticals, Personal Care Products, Medical Devices Movies Beer Consumer Products Restaurant Retail Wine Entertainment Nonprofit Nonprofit Ethics/Energy 3 36 37 38 One Ford: The Shape of Ford Motor Company to Come?+ American International Group and the Bonus Fiasco* Nintendo's Wii+ s P P P P s P s P s s P P P s P P 6 Publishing 35 P s s 6 Harvard Business School; Classic; Professional Services Retail General Motors+ P P P 5 P Reader's Digest: For Whom and for How Much Longer?+ 33 34 s 3 P 4 17 Build-A-Bear Workshop* Dippin’ Dots Ice Cream+ Southwest Airlines: Does “LUV” Last?+ JetBlue Airlines: Will it remain "Blue"?+ P 1 3 4 China's Geely's Automotive Holdings, Ltd.: Targeting the U.S. Market* Automotive 27 28 29 25 26 The Casino Industry+ P 1 2 P 1 Est. # of pages 4 Chapters P s P P s P s 7 s s P s s s s s 8 s P s s P s P P P s s s s s P s s s P P s P s s P s P s s s P s s P s s P s 9 10 11 ip de Le a ing ag P s P P s P s s P s s 12 Ma n tio n va 4 8 8 8 4 4 4 9 9 : 4 4 8 8 8 8 8 ISBN 978-0-07-737444-0 MHID 0-07-737444-4 9 4 9 : 4 4 : 8 8 8 4 4 : 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 4 4 4 4 99 9 99 9 : : : : 4 4 : : 9 4 4 4 9 9 4 4 9 4 4 : : : : : 4 4 : 9 4 4 : : 4 8 8 4 4 : 999 8 8 4 4 9 99 4 4 4 4 4 4 4 Video PowerPoint Web Links : : : : Excel Inn o rsh St rat eg y Co Ex nc te ep rn t al En Int vi ern ron al me An nt I nte aly lle sis ctu B a lA us in ss es ets s-l Co ev rp el o St rat rat Int e-l eg ern ev y e lS En atio tra na t teg C re l St om pr y pe eneu rate titi ria gy St ve lS ra Dt teg yn rate ic am gie Or Co ics s & ga n niz tro l& ati St on rat Go al e v gic ern De sig an ce n Harvard Business School; Classic; Manufacturing Hypothetical; HBR Brief Case Hypothetical; HBR Brief Case Hypothetical; HBR Brief Case Housewares & Accessories, Porcelain Collectibles; classic Hypothetical/Classic Industry Lenovo’s Purchase of IBM’s PC Division* Computers Samsung Electronics+ Johnson & Johnson+ 18 19 20 21 Pixar+ Edward Marshall Boehm, Inc. 2 Case Title 1 Case Number from Alan Eisner Suggested Cases If you are seeking new cases to enliven your strategic management course, try these Personal favorites of Alan Eisner, the cases profiled here are just a few of the excellent cases chosen to complement the chapters of the text. ...
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This note was uploaded on 10/11/2011 for the course BUSINESS A 474 taught by Professor Thompson during the Spring '11 term at Ill. Chicago.

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