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ecch the case for learning

2006 edition

100 best-selling cases

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This bibliographical supplement presents the 100 best-selling cases from theecch catalogue during 2005. 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

9ppPublished sources404-015-8 (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 the corresponding 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 researchPublished sourcesGeneralised 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 24,000 full text inspection copies. To searchthe database of over 43,000 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.

On the ecch website you can find out about the many services ecch provides tosupport the writing and teaching of cases.You can also subscribe to:

• Monthly e-mail updatesA free service giving details of cases registered during the preceding month.

• Case collections updatesPublished quarterly and sent free of charge to everyone on the ecch mailinglist, these listings give brief details of newly released cases, supplementarymaterials and journal article reprints.

• ECCHORecently relaunched, ECCHO includes case reviews, features and informationon the case method, as well as a free case that teachers can use.

Are you having problems findingthe right case? Would you likehints on case searching? ecch provides a free helpline.

Be ready to provide informationon the:• Type of case you are looking for• Setting of the case• Course the case will be used on• Students’ level of experience

ecch helpline: [email protected] or+44 (0)1234 756410.

need help to findthe right case?

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European Case Awards 2006

Overall winner

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

Economics, Politics and Business Environment

204-159-1DANFOSS RC IN CHINA (A): GOING GLOBALJonathan StoryINSEAD

Entrepreneurship

803-065-1THE BIG ISSUEStephanie Robertson and Julian LloydLondon Business School

Ethics and Social Responsibility

JBEE2-1CS1GLAXOSMITHKLINE AND DEVELOPING COUNTRY ACCESS TO ESSENTIALMEDICINES (A)N Craig Smith and Anne DuncanLondon Business School (Senate Hall Academic Publishing)

Finance, Accounting and Control sponsored by IBS, Hyderabad

294-009-1THE BOEING 777Robert BrunerINSEAD / Darden Graduate School of Business Administration,University of Virginia

Human Resource Management / Organisational Behaviour

403-050-1LVMH: CAREER DEVELOPMENT THROUGH INTERNATIONAL MOBILITYJean-Luc CerdinGroupe ESSEC

Knowledge, Information and Communication Systems Management

903-030-1IMPLEMENTATION OF THE BALANCED SCORECARD AS A MEANS OF CORPORATE LEARNING: THE PORSCHE CARJan Dominik Gunkel WHU,VallendarGilbert Probst HEC,University of Geneva

Continued overleaf

Marketing sponsored by The Chartered Institute of Marketing

504-007-1DIESEL FOR SUCCESSFUL LIVING: BRANDING STRATEGIES FOR AN UP-MARKET LINE EXTENSION IN THE FASHION INDUSTRYPierre ChandonINSEAD

Production and Operations Management

IMD-6-0249THE “MI ADIDAS” MASS CUSTOMIZATION INITIATIVERalf W SeifertIMD

Strategy and General Management

302-057-1THE EVOLUTION OF THE CIRCUS INDUSTRYRenée Mauborgne, Ben Bensaou and W Chan KimINSEAD

European Case Awards 2006 (continued)

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394-033-1ADVANCED DRUG DELIVERYSYSTEMS: ALZA AND CIBA-GEIGY (A)

Angelmar, RDoz,YCunningham, M

INSEAD

This is the sixth case in a series of 11(394-028-1 through 394-038-1), whichdeals with a technological partnershipbetween a large firm (Ciba-Geigy) and asmall firm (Alza). It covers a period ofabout eight years: from 1977 until 1984.The first cases (394-028-1 to 394-030-1)describe the pharmaceutical industry, thetwo companies, and the events leadingup to the partnership opportunity.Thefollowing cases (394-031-1 and 394-032-1) analyse the structure of the agreementand the evolving actual functioning ofthe partnership between 1978 and 1981.The final cases (394-033-1 to 394-038-1)describe the dissolution of thepartnership in 1982, and the longer-termconsequences of the partnership foreach company.The general objective ofthe case series is to provide anopportunity for discussing the genericissues arising in technologicalpartnerships between large and smallcompanies.Specific objectives are: (1) toprovide an understanding of the reasonsfor technological partnerships betweenlarge and small companies; (2) to allowparticipants to design an interfacestructure for a partnership; (3) to developan understanding of the role of differentmanagement tools in partnershipeffectiveness, and to provide practice indiagnosing a concrete partnershipsituation and suggesting remedial actionto enhance effectiveness; (4) tounderstand the causes of conflicts inpartnerships; (5) to provide practice inassessing whether a partnership issustainable; (6) to understand theproblems involved in terminating apartnership; (7) to provide an opportunityfor evaluating the success of apartnership and for understanding thefactors which influence partnershipsuccess.

Switzerland, USA; Pharmaceuticalindustry; Small and large companies;1977-198831 ppField research

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

Esty, BKane, ML

Harvard Business School Publishing

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 board must 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), thoseseating more 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 in long-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 a monopolistic and a potentialentrant in which entry costs exceed $10billion.

2000Aerospace industryBusiness-government relationsCapital expendituresCorporate strategyDemand analysisProduct developmentProduct positioningProject financeValuation

20 ppPublished sources5-201-040 (31 pp)

9-792-081APPLE COMPUTER - 1992

Yoffie, DBHarvard Business School Publishing

In 1992, Apple received the onlyprofitable standard other thanIBM/Microsoft/Intel in the PC industry.The case examines Apple’s dilemma ofhow to retain its profitability as thestructure of the industry deteriorates.Apple’s CEO poses the critical question:Can Apple shape the PC industry for the1990s?

United States; Computers; Fortune 500,12,000 Employees, $7 billion revenues;1992,

Computer industryCorporate strategyIndustry analysisStrategy formulation

22 ppField research5-792-098 (17 pp)

9-502-030AQUALISA QUARTZ: SIMPLY A BETTERSHOWER

Moon,YHerman, K


Harry Rawlinson is Managing Director ofAqualisa, a major UK manufacturer ofshowers.He has just launched the mostsignificant 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.

United Kingdom; Manufacturing; £8million revenue; 2001

Consumer behaviorConsumer marketingDistribution channelsMarket entryMarket positioningMarketing strategyProduct developmentProduct introductionProduct positioning



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9-197-047ARCH COMMUNICATIONS GROUP,INC

Srinivasan, SPalepu, K


The market values Arch differently fromanalysts’values.Students are asked toevaluate the investment potential ofArch’s stock based on industryfundamentals and analysts’ forecasts.;Company/stock valuation.

Communications equipmentTechnologyValuation

28 ppPublished sources

394-049-1BANCO COMERCIAL PORTUGUÊS(1993)

Doz,YHorwitch, Mde Pommes, CTaubman, C

INSEAD

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 to marketsegmentation 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-sizedbank; 1986-199343 ppField research394-049-8 (15 pp)

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

Moriarty Jr, RMcQuade, K


Deals with the issue of niche marketingin a worldwide market.Barco ProjectionSystems makes video, data, and graphicprojectors for the industrial market.Theyhave traditionally been the performanceleader. In August 1989, Sony Corpintroduced 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.

Global, Belgium; Industrial projectors;Mid-size, $50 million revenues; 1989-1990

Industrial marketsInternational marketingMarketing strategyProduct developmentProduct lines


597-039-1BAXTER (A): A CHANGING CUSTOMERENVIRONMENT

Vandermerwe, STaishoff, M

Imperial College London,TanakaBusiness School

This is the first of a three-case series (597-039-1 to 597-041-1).The overriding aim ofthe series is to demonstrate how acompany must change from thetraditional transactional productapproach to one more suited to the newworld.The old model is based on sellingmore products at certain margins usingconventional marketing tools, whereasthe new approach is about the lifelongvalue of customers and how to achievethat so that everyone in the system gains.The cases discuss the dilemma facingBaxter Renal Division, in the UKspecifically, and in Europe generally.Theirmain product is the bag and solution fordialysis treatment for kidney disorder.Although Baxter had 80% market shareby the mid-1990s two major threats had

emerged: (1) a competing treatment,cheaper on a bag-for-bag basis, wasincreasingly being favoured by neweconomic buyers who had become themore powerful decision makers and; (2)Baxter’s dominance in its product marketwas being challenged by low-costcompetitors.When case (A) opens inJanuary 1997, an unprecedented crisisconfronted Peter Leyland, recentlyappointed UK Business Director: five keyhospital accounts had been lost.Moreover, the key success factors in thebusiness - the number of patientstreated, the kind of treatment received,the number of bags sold, and theproportion or market share of thosecared for with their treatment - were allgoing downhill. Leyland was convincedthat the only route to long term growthand profitability was not by trying to beatthe competition at the same old game,but rather by taking the lead andchanging the way the industry operated.Part of his challenge was getting variouscustomers - buyers, users and influencers- to think and behave differently.Leylandand his team embark on a customer-focused strategy starting with end usersand working backwards.Two videos areavailable to accompany the case series‘597-039-3’and ‘599-014-3’, the lattergives an update (March 1999) onLeyland’s strategy.**ecch European CaseAwards Category Winner 2002**

Europe; Medical; US$100 million to BaxterRenal; 1996-1997

Strategic customer focusCosting and pricing - new valuebased marketingRelationship marketingValue based customertransformationArticulating ‘market spaces’Value added services

19 ppField research

9-673-057BENIHANA OF TOKYO

Sasser Jr,WKlug, J


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


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Multinational; Foods; Mid-size; 1972Corporate strategyExpansionMultinational corporationsRestaurantsServices


9-292-122BETA MANAGEMENT CO

Edleson, MEHarvard Business School Publishing

A manager of a small investmentcompany has been successfully usingindex funds for limited market timing.Growth has allowed her to move intopicking stocks.She is considering twosmall and highly variable listed stocks, butis concerned about the risk that theseinvestments might add to her portfolio.Provides a lead-in to the CAPM.Studentslearn about total risk, non-diversifiable orportfolio risk, and (CAPM) beta, andcalculate variability of the stocksseparately, and portfolio variance withand without the stocks, to see how anextremely risky (but low-beta) stockactually reduces risk; and calculate stockbetas.

Unspecified; Investment management;Small; 1991

Cost benefit analysisDiversificationEfficient marketsInvestment managementPortfolio managementRegression analysisRisk assessment

5 ppGeneralised experience5-294-113 (10 pp)

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 the world.NutraSweet’s position was protected bypatents until 1987 in Europe, Canada, and

Japan, and until the end of 1992 in theUnited States.The case series describesthe competition that ensued betweenNutraSweet and the Holland SweetenerCo (HSC) following HSC’s entry into theaspartame market in 1987.Subsequentmove and countermove in both themarketplace and the courts aredescribed.Ends with the final countdownto the expiration of NutraSweet’s USpatent.Provides an opportunity to studya game in business that takes place attwo levels: there is the surface game oftactics, and there is also the underlyinggame of value.At the tactical level, thereare various points at which NutraSweetor HSC made a move with a view toshaping the perceptions of the otherplayer.Turning to the underlying game ofvalue, there are the actions thatNutraSweet took during the period ofpatent protection.These actions servedto maintain NutraSweet’s added value inthe post-patent game, and to denyadded value to challengers.

Global; Sweeteners; Large, $2 billionrevenues; 1965-1992

BeveragesCompetitionFoodPatentsStrategy formulation


IMD-5-0671BLACKBERRY (A)

Ryans, AIMD - International Institute forManagement Development

Research in Motion had successfullylaunched the innovative BlackBerryservice in North America and was lookingto accelerate the growth of the businessin North America and globally.Thecompany had been using a direct salesapproach and was considering a move tousing telecommunications carriers as theprimary channel.A team of executiveshad been charged with recommending astrategy and implementation plan.

Global; Telecommunications; RevenuesUS$220 million; September 2001

Marketing strategyChannel managementBusiness strategyAccelerating growth

20 ppField researchIMD-5-0671-T (14 pp)

9-392-032BODY SHOP INTERNATIONAL

Bartlett, CElderkin, KMcQuade, K


Describes the start-up and rapid growthof a company whose founder holdsstrong, non-traditional beliefs about therole of the corporation and itsresponsibility to society.After profilingAnita Roddick as a person, the casedescribes the anti-mainstream approachshe took to building her highly successfulbusiness (no advertising, simplepackaging, non-traditional R&D).Afterelaborating on the strong values she hasimposed on the business, concludes byhighlighting questions of the business’transferability to the United States and itssurvivability as Anita steps back.

United Kingdom; Retailing; Mid-size,2,000 Employees, $100 million revenues;1991

Business policyConsumer goodsCorporate cultureCorporate responsibilityEntrepreneurial managementInternational businessRetailing


UVA-F-1017BOEING 777

Bruner, RFGollish, DClausen, HKoggersbol, NChristey, P

Darden Business Publishing

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 segment WACC draws outstudents’abilities to critique differentestimates of beta and to manipulate thelevered-beta formulas.Thus the caseprovides a complete menu of capital-cost estimation opportunities.


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Seattle,WA; Aircraft manufacturing;Large; 1990

Capital asset pricing modelCapital budgetingCapital investmentCompetitive analysisCost of capitalValuation

26 ppPublished sourcesUVA-F-1017TN (12 pp)

497-013-1BRITISH PETROLEUM:TRANSFORMATIONAL LEADERSHIPIN A TRANSNATIONALORGANISATION

Kets de Vries, MFlorent, E

INSEAD

The case looks at the difference in RobertHorton’s and David Simon’s leadershipstyles in the context of the upheaval ofthe oil industry in the past 25 years, andthe roles the two leaders played in thetransformation process at BritishPetroleum (BP). It examines the reasonswhy, although the two men’s goals werenearly identical, their individual styledetermined failure for one, and successfor the other.The case addresses issues oftransformation and national andcorporate cultures in a transnationalorganisation. The teaching objectivesinclude: (1) addressing the concepts oftriggers of change and barriers tochange; (2) exploring the dynamics of theindividual and organisationaltransformation processes; (3) analysingthe role of the CEO and chairman in thetransformation process; (4) emphasisingthe importance of a ‘global mind-set’andcultural relativity in transnationalorganisations; and (5) discussing the waysin which corporate culture is shaped andchanged, and the corporate culture andvalues of ‘vanguard’companies like BP.Avideo ‘British Petroleum:Transforming theCorporate Mind-set’ (497-013-3)accompanied by a transcript, asupplement ‘Transforming the CorporateMind-set at British Petroleum:AnInterview with Sir David Simon and JohnBrowne’(497-013-4) and transparencies‘British Petroleum:TransformationalLeadership in a TransnationalOrganisation’(497-013-7) are available toaccompany this case.**ecch EuropeanCase Awards Category Winner 2000**

Worldwide; Oil; 60,000 Employees; 1990-1997

Corporate transformationCorporate changeCorporate cultureLeadership stylesExecutive role constellation‘Teddy bear’effectNational cultureEmotional intelligence


9-300-018BRL HARDY: GLOBALIZING ANAUSTRALIAN WINE COMPANY

Bartlett, CHarvard Business School Publishing

Focuses on two new product launchdecisions facing Christopher Carson,managing director of BRL Hardy, Europe.Responsible for the European operationsof a major Australian wine company,Carson has begun to globalize hisstrategy beyond selling the parentcompany’s wines.After a difficult jointventure with a Chilean wine source, he isproposing to launch an Italian line ofwines.His local team has also developeda new Australian brand that wouldcompete directly with a parentcompany’s global brand rollout.Focuseson global strategy choices being madethrough headquarter-subsidiarynegotiations that define the roles ofcountry managers and global productmanagers.

AustraliaBeveragesBusiness policyEntrepreneurshipInternational businessInternational marketingNew product marketingStrategy implementationUnited Kingdom


9-296-049CASE OF THE UNIDENTIFIEDINDUSTRIES - 1995

Fruhan Jr,WEHarvard Business School Publishing

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


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

Ibarra, HSackley, N


Examines Beer’s actions on assumingleadership of Ogilvy & Mather Worldwide,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.Sixteen months 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; 1992-1993AdvertisingLeadershipMultinational corporationsOrganizational change


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

Simons, RLHarvard Business School Publishing

Detailed description of the planning andcontrol systems in use at Johnson &Johnson.Focuses on the actions ofmanagers in one subsidiary in revising


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budget 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.

Massachusetts, New Jersey; Health care;Fortune 500, 75,000 Employees; 1986

BudgetingControl systemsDecentralizationPlanning systemsStrategic planning


9-702-442COLA WARS CONTINUE: COKE ANDPEPSI IN THE TWENTY-FIRSTCENTURY

Yoffie, DBWang,Y


Examines the industry structure andcompetitive strategy of Coca-cola andPepsi over 100 years of rivalry.Newchallenges of the 21st century includedboosting flagging domestic cola salesand finding new revenue streams.Bothfirms also began to modify 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 for the’throat share’of the world’s beveragemarket.The most 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 and worldwide 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.The case considers whether Coke’sand Pepsi’s era of sustained growth andprofitability was coming to a close or

whether this apparent slowdown wasjust another blip in the course of acentury of enviable performance.Arewritten version of an earlier case byMichael E Porter and David B Yoffie.Maybe used with: (9-794-055) Cola WarsContinue:Coke vs Pepsi in the 1990s; (9-799-117) A Hundred-Year War:Coke vsPepsi - 1890s-1990s.

United States and global; Beverages;Fortune 500; 2000

BeveragesCompetitionCorporate strategyIndustry analysisIndustry structureInternational business


9-378-024CROWN CORK & SEAL CO, INC

Gordon, KHamermesh, RGReed, J


Describes the technical, economic, andcompetitive trends in the metalcontainer industry.The strategy of CrownCork and Seal is then described inrelation to these trends.Focuses on twoimmediate threats to Crown’s strategy:the future of aerosol cans, given theozone problem; and the impact of thebanning of nonreturnable containers.

United States, multinational; Metalcontainers; Fortune 500, $1 billion sales;1977

Business policyCorporate responsibilityCorporate strategyIndustry structureMetalsPackagingRegulationTechnological change


9-192-150CRYSTAL MEADOWS OF TAHOE, INC

Bruns Jr,WJHarvard Business School Publishing

An introductory case in cash flow analysisand the preparation of statements ofcash flows.Based on the 1991 incomestatement and balance sheet at a skiresort company, the case providesadditional information which allows astudent to prepare both a direct and anindirect statement of cash flows.Arewritten version of an earlier case.

California, Utah; Skiing; Small, $20 millionrevenues; 1991

Accounting policiesCash flowManagement accountingRecreation


9-495-046DATAVISION (A)

Beers, MCRogers, G


Depicts a team-building intervention byan organizational consultant at a smallcomputer company.Should promotediscussion surrounding such techniques.

Computer industryConsultingOrganizational developmentTeams


504-007-1DIESEL FOR SUCCESSFUL LIVING:BRANDING STRATEGIES FOR AN UP-MARKET LINE EXTENSION IN THEFASHION INDUSTRY

Chandon, PGrigorian,V

INSEAD

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 new


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cuts and fabrics, which may eventuallytrickle down to the main 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 the marketing of fashion andluxury brands. In particular, it illustrateshow Diesel has managed to growwithout losing its core identity.The mainobjectives of the case are to develop anunderstanding of the key issues involvedin managing a portfolio of brands and toevaluate alternative branding strategiesfor launching a new brand using astructured approach and tools.The casealso illustrates critical issues in themarketing of fashion and luxury brands,most notably brand extensions.This casehas been successfully taught in an MBAcourse on brand management. It can alsobe used in a session on branding in amarketing management course.Thelarge corpus of Diesel’s controversial printand television advertisements also makethe case suitable for an advertisingcourse or the advertising module of amarketing management course.Finally,the case can also be used in a marketresearch course to illustrate the value ofexperimental methods for studying theeffects of branding.A CD-ROM (504-007-9) is available to accompany the teachingnote.The CD-ROM contains 23 of Diesel’sbest television commercials (called‘videotronic guides to successful living’), aPowerPoint presentation containing allthe case exhibits, a PowerPointpresentation of Diesel and StyleLab printadvertising campaigns, before and afterthe time of the case, and a PowerPointpresentation with information on whathappened to Diesel and StyleLab afterthe case.**ecch European Case AwardsCategory Winner 2006**

Western Europe; Fashion; 1,000Employees, 260 million euros turnover;1999

BrandingMarketingBrand managementBrand extensionFashionLuxury goodsAdvertisingLogos


9-700-115DOGFIGHT OVER EUROPE: RYANAIR(A)

Rivkin, JWHarvard Business School Publishing

In April 1986, the Ryan brothersannounce that their fledging Irish airlineRyanair, will soon commence servicebetween Dublin and London.For the firsttime, Ryanair will face formidablecompetitors such as Aer Lingus andBritish Airways on a major route.Studentsare asked to assess Ryanair’s entry andanticipate the response of incumbentcarriers.Allows students to hone skills incompetitor analysis and in theanticipation of competitive dynamics.Cost and revenue figures permit studentsto examine the economics of retaliatorypricing in a business with high fixed costsand low marginal costs.

Ireland; Airlines; 10 Employees; 1986AirlinesCompetitionCost analysisIndustry analysisMarket entryUnited Kingdom


301-228-1EASYEVERYTHING’S PRICINGPOLICIES

Pagliero, MCourty, P

London Business School

Founded in 1999 by Stelios Haji-Ioannou,easyEverything quickly became thelargest chain of Internet cafés in theworld.Stelios used his experience in theairline industry to introduce dynamicpricing in Internet café.The price in thecafes is automatically updated every 5minutes according to capacity utilisationand, far from discouraging potentialcustomers, the new system has beenwidely accepted.Although this pricingscheme successfully manages to smoothdemand, preventing queues fromforming or having empty stores, Steliosbelieves that it can be improved.Thechallenge ahead is to find new ways toincrease store occupancy without havingto decrease prices below reasonablelevels.The focus of the case is on pricingand it illustrates how the concepts ofdemand and price discrimination are

used in practice.The aim of the case is tostimulate students to discuss howeasyEverything manages its pricingpolicies to sort consumers in differentsegments and to make the best use ofstore capacity.Overall, the caseintroduces the reader to the fundamentalissue of how different pricinginstruments can be used to maximiserevenues.

Europe; Internet cafés; 1999-2001Pricing policiesDemand curvePrice discriminationPeak load pricingRevenue managementDynamic pricing


IMD-3-0873EASYJET: THE WEB’S FAVOURITEAIRLINE

Kumar, NRogers, B

IMD - International Institute forManagement Development

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-drivenoperating model, creating brandawareness, and maintaining 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 could make a profit byencouraging customers to surf theInternet, send e-mail 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


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‘easyEverything:The Internet Shop’(IMD-3-0874) and ‘www.easyrentacar.com’(IMD-3-0875). **ecch European CaseAwards Category Winner 2001 and ecchEuropean Case Awards Overall Winner2002**

Europe; Airline; 1,000 Employees, US$125million turnover; 1999

Marketing strategyIndustry analysisService management


IMD-3-0872EASYJET:THE WEB’S FAVOURITEAIRLINE (ABRIDGED)

Kumar, NRogers, B


This is an abridged version of ‘easyJet:TheWeb’s Favourite Airline’ (IMD-3-0873).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-drivenoperating model, creating brandawareness, and maintaining 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 cafes.Some questioned whether Stelios wouldbe able to successfully transfer his lowcost business model to Internet cafes.Undeterred, Stelios moved ahead with hisplan to create easyEverything, with thebelief that he could make a profit byencouraging customers to surf theInternet, send e-mail and shop on-line.Avideo is available to accompany this case(IMD-3-0873-V). Instructors should notethat ‘easyJet’ is the first case in a seriesthat includes ‘easyEverything:TheInternet Shop’(IMD-3-0874) and‘www.easyrentacar.com’(IMD-3-0875).**ecch European Case Awards Winner2001 and ecch European Case AwardsOverall Winner 2002**.

Europe; Airline; 1,000 employees, US$125million turnover; 1999

Marketing strategyIndustry analysisService management

4 ppPublished sourcesIMD-3-0872-T (20 pp)

302-058-1EVEN A CLOWN CAN DO IT: CIRQUEDU SOLEIL RECREATES LIVEENTERTAINMENT CASE B

Mauborgne, RBensaou, BChan Kim,W

INSEAD

This is the second of a two-case series(302-057-1 and 302-058-1).Cirque duSoleil very successfully entered astructurally unattractive circus industry. Itwas able to reinvent the industry andcreated a new market space bychallenging the conventionalassumptions about how to compete. Itvalue innovated by shifting the buyergroup from children (end-users of thetraditional circus) to adults (purchasers ofthe traditional circus), drawing upon thedistinctive strengths of other alternativeindustries, such as the theatre, Broadwayshows and the opera, to offer a totallynew set of utilities to more mature andhigher spending customers.The caseseries is designed to serve a variety ofpurposes in the value innovation andcreating new market space teachingmodule of an MBA strategy course orexecutive education programme.Thecase series can be equally usedindividually in a standalone module onvalue innovation or as part of a sequenceof three to four sessions. In bothinstances, the instructor can best use it tocover the following topics: (1) the valueinnovation logic (as compared toindustry and competitive analysis); (2) theconcept of value curve; and (3) the sixpaths analysis for creating new marketspace.Transparencies are available toaccompany this case series (302-057-7).

Canada, USA, Europe; Circus; 2001Circus and live entertainmentindustryValue innovationStrategyCreating new market spaceRedefining industry boundariesMoving across industries

Thinking out of the boxCompetition


303-093-1EXTENDING THE ‘EASY’ BUSINESSMODEL: WHAT SHOULD EASYGROUPDO NEXT?

Doz,YBalchandani, A

INSEAD

easyGroup is contemplating its entry intothe cinema exhibition business in the UK,through 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


597-028-1FIRST DIRECT: BRANCHLESS BANKING

Larreche, JCParmenter, DLovelock, C

INSEAD

First Direct has become the model oftelebanking worldwide, despite similarinitiatives undertaken by largeinternational banks.The case describesthe history of First Direct and the various


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components of its operations, especiallyaround the central issue of relationshipsmarketing at a distance. It helps studentsto understand all the various facets of amodern operation which makes 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 AwardsOverall Winner 2000**.

United Kingdom; Banking; 1997MarketingDirect marketingRelationship marketingServicesBankingTelebanking


302-016-1FLYING INTO A STORM: BRITISHAIRWAYS (1996-2000)

Manzoni, JFBarsoux, J

INSEAD

This case considers the transition at thehead of British Airways (BA) from LordMarshall, key architect of BA’s spectacularrestructuring and revitalisation in the1980s, to his chosen successor RobertAyling. In an increasingly deregulatedmarket, Ayling’s challenge is to sustainBA’s position of leadership in the airlineindustry.He pursues an ambitiousstrategic alliance, a massive cost cuttingdrive and initiates a controversial changeof corporate identity.Although the stockmarket initially approves of most of hisstrategy, he runs into trouble on theindustrial relations front.A cabin crewstrike in the summer of 1997 hitsemployee morale and triggers asustained dive in the airline’s share price.For all Ayling’s efforts over the followingthree years, he does not manage toredress the slump and his eventualremoval does not come as much of asurprise.What is surprising is theinsistence by BA’s chairman that Aylinghad set the right strategy, but was thewrong person to implement it.The caseexplores what went wrong.This is a veryrich case that can be tackled from several

angles.On the leadership succession sideit illustrates the difficulties of makingone’s mark when taking over a highlysuccessful company, especially comingafter a very respected leader.On theleadership style angle, the case highlightsthe various roles of the leader - asstrategist, architect and mobiliser - andthe difficulties of building or rebuildingcredibility and trust. It also raisesquestions on why leaders often becomemore abrasive as time passes and howmuch their style is shaped by their initialbackground and leadership experiences.The case can be used to examine how tobring about radical change, particularlywhen the company is doing well at theoutset and staff’s sense of urgency iscorrespondingly low. It also illustrates theimportance of fair process in radicalchange efforts. Last but not least the caseraises questions on the causes andconsequences of company culture.AsCEO Marshall had created a culture ofemployee and customer care that waswidely admired even beyond the airlinesector, that culture seemed to go awayfairly quickly as service levels droppedand employees felt no longer cared for.What happened? The case can be used asa stand alone case, or following adiscussion of the case ‘Becoming theWorld’s Favourite Airline:British Airways1980-93’(398-080-1) (which covers theKing-Marshall years).Note:The first 18months of Ayling’s tenure (and hence ofthe period covered in this case) werediscussed in the case ‘Remaining theWorld’s Favourite Airline:British Airways1993-97’ (398-081-1).That case wasfocused mainly on leadership successionand fair process.This new case builds onthis initial period and covers the nextthree years, culminating in the removal ofRobert Ayling.These additional threeyears were very eventful and result in amuch richer set of teaching issues. If youwant to centre the discussion on fairprocess, we recommend using the case‘Remaining the World’s Favourite Airline’:British Airways 1993-97 (398-081-1).Thispresent case will support a broaderdiscussion.There is a French translationavailable ‘F302-016-1’.

United Kingdom; Airline; Over 60,000Employees; 1996-2000

LeadershipSuccessionRadical changeCorporate renewalImplementing a new strategy

Fair processCorporate cultureCustomer serviceIndustrial relationsCost cuttingService sector


599-038-1FORD KA (A): BREAKING NEWGROUND IN THE SMALL CAR MARKET

Christen, MSoberman, DCothier, G

INSEAD

This is the first of a two-case series (599-038-1 and 599-039-1). In response to thechanges 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, he must 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 approach made 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 existingproduct to a new market.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 (F599-038-1).

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

SegmentationSegment identificationTarget selection


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Product introduction in newmarketsInternal marketing


503-082-1FORD KA:THE MARKET RESEARCHPROBLEM (A)

Christen, MSoberman, DChung, SWCothier, G

INSEAD

This is the first of a three-case series (503-082-1 to 503-084-1). In response tochanges in the European small carmarket, Ford decided to launch a newsmall car, the Ford Ka.Before GillesMoynier can get to the specifics of themarketing strategy to launch the Ford Ka,he needs to decide how to segment themarket and who to target.The marketresearch firm has conducted a series ofstudies among potential small car buyersand now the data must be analysed andinterpreted.This case series introducesstudents to strategic, conceptual andinformation issues of marketsegmentation and target selection - thecore concept of marketing theory.Themodular nature of the case allows theinstructor to focus either on individualissues or on the process of marketsegmentation and marketing strategydevelopment.The market research dataenables students to get unique ‘handson’experience in dealing with marketresearch data and a wide range ofstatistical tools (cross-tabulations, clusteranalysis, multidimensional scaling andregression analysis).An Excel spreadsheet‘503-082-9’ is available free of chargewhen the teaching note is purchased.This case contains colour exhibits.

France; Automobiles; Large; 1996Market segmentationMarket researchMarketing processMarketing strategyAttitudinal segmentationQuantitative data analysisCluster analysisMultidimensional scaling (MDS)Qualitative data interpretationAutomobiles

26 ppField research503-082-8 (21 pp)503-082-9 (s/w)

9-399-150GE’s TWO-DECADETRANSFORMATION: JACK WELCH’SLEADERSHIP

Bartlett, CAWozny, M


GE is faced with Jack Welch’s impendingretirement and whether anyone cansustain the blistering pace of change andgrowth characteristic of the Welch era.After briefly describing GE’s heritage andWelch’s transformation of the company’sbusiness portfolio of the 1980s, the casechronicles Welch’s revitalization initiativesthrough the late 1980s and 1990s. Itfocuses on six of Welch’s major changeprograms:The ‘Software’ Initiatives,Globalization, Redefining Leadership,Stretch Objectives, Service BusinessDevelopment, and Six Sigma Quality.Maybe used with: (9-304-049) GE’s TalentMachine:The Making of a CEO.

United States, global; Industrialconglomerate; 293,000 Employees, $100billion revenues; 1981-1998

Business policyConglomeratesCorporate cultureCorporate strategyExecutivesLeadershipManagement of changeOrganizational changeOrganizational developmentStrategy implementation


9-503-004GOLFLOGIX: MEASURING THE GAMEOF GOLF

Gourville, JTConover, JN


GolfLogix has developed a small, GPS-based device to help golfers track theirplay.They must decide how best todistribute these devices: (1) sell themdirectly to golfers through traditionalretail channels; (2) sell them to courses,which would then provide them togolfers as part of their greens fee or for anominal rental charge; or (3)simultaneously sell them to both groups.Complicating the decision is the fact thatGolfLogix has two devices it is trying to

sell: a distance-only device, which tellsgolfers how far they are from the green,and a complete device that additionallyallows golfers to track how far and howaccurately they are hitting the ball witheach club and how many putts they aretaking on each hole.The distance-onlydevice is easy to use and explain, whereasthe complete device likely requires somesupport from the golf courses.Containscolor exhibits.

United States; Golf; 6 Employees, $1million revenues; 2002

Consumer behaviorDistributionInnovationSports


201-002-1GREAT EASTERN TOYS (B)

Hawawini, GRemmers, L

INSEAD

This is the second of a four-case series(201-001-1 to 201-004-1).As part of itsgrowth strategy, a new product has beendesigned and a study carried out by aconsultant to estimate the marketpotential and the investment required toput it into production.The analysis callsfor an estimation of the relevant cashflows from the project raising questionssuch as measuring opportunity costs,evaluation of sunk costs and joint costs,the impact of the new product erodingsales from existing products - typicalproblems arising when making capitalinvestments.Since the investmentproject extends over several years, a DCFanalysis is necessary.Discussion needs afull class session.

Hong Kong; Toys; US$35 million; 1998Financial analysisWorking capital managementInvestment appraisalValuation of a companyCurrency risk management



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298-014-1GROUPE SCHNEIDER: ECONOMICVALUE ADDED AND THEMEASUREMENT OF FINANCIALPERFORMANCE

Young, DINSEAD

Groupe Schneider is a world leader inelectrical distribution, industrialengineering equipment, and industrialcontrol and automation. In order topromote a stronger value creatingculture, Schneider implemented aperformance measurement systembased on economic value added.Thecase explores the difficulties ofimplementing value-based metrics inlarge multinational 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 divisionalperformance measure.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

Economic value addedPerformance measurementEconomic profitManagement compensationValue based management

25 pp298-014-8 (26 pp)

9-396-212HARVEY GOLUB: RECHARGINGAMERICAN EXPRESS

Garvin, DAMarch, A


Describes the large-scale change processinitiated and led by Harvey Golub as CEOof American Express.Describes theorganization he inherited, two successivewaves of re-engineering, his ‘principles-driven’approach to decision making, andhis goal of converting American Expressfrom a diversified financial supermarket

to one unified operating company.Introduces students to many of the basicprinciples in leading transformationalchange, explores the requirements foreffective re-engineering, and examines aleadership approach based on valuesand a few core principles.Also showshow a CEO can move a large entrenchedorganization in new directions.

New York; Financial services; Large,70,000 employees $14 billion revenues;1980-1990

Business policyFinancial servicesLeadershipManagement of changeReengineering


9-501-010HILTON HHONORS WORLDWIDE:LOYALTY WARS

Deighton, JShoemaker, S


Hilton Hotels regards the frequent guestprogram as the industry’s mostimportant marketing tool, directingmarketing efforts at the heavy user.Whatis Hilton to do then, when a competitorups the ante? This case illustrates theeconomics of frequency marketing inindustries with a very distinct ‘heavy half’to their customer base, and lets studentsdebate what to do when Sheraton andWestin seemingly overdo a good thing.

California; Lodging industry; $1 billionrevenues; 1999

Customer relationsCustomer retention


9-384-049HONDA (A)

Pascale, RChristiansen, E


Describes the history of Honda MotorCompany from its beginning through itsentry into and subsequent dominance ofthe US market.The history is explainedprimarily in terms of strategic factors and

quoted from two sources:an earlier caseand Boston Consulting Group report onthe motorcycle industry.Should be usedwith Honda (B).

Japan, United States; Motorcycles; Large;1948-1974

Business policyCompetitionCorporate strategyJapanLearning curvesMotorcycles

9 ppPublished sources5-386-034 (7 pp)5-704-022 (27 pp)

9-384-050HONDA (B)

Pascale, RChristiansen, E


Describes the history of Honda MotorCompany from its beginning through itsentry into and subsequent dominance ofthe US market as seen through the eyesof Honda executives.The history ofHonda’s successful entry into the USmarket is viewed as highly adaptive andfraught with error and serendipity.Honda(A) and (B) are designed to be usedtogether to contrast two differing viewsof major events in a company’s history,both of which are important for a generalmanager to understand.

Japan, United States; Motorcycles; Large;1948-1974

Business policyCorporate strategyJapanManagement of changeManagement stylesMotorcycles

9 ppField research

9-801-361HOWARD SCHULTZ AND STARBUCKSCOFFEE COMPANY

Koehn, NFHarvard Business School Publishing

Investigates the entrepreneur’s strategicinitiatives to develop a mass market forspecialty coffee in the 1980s and 1990s.These initiatives included thedevelopment of premium products, rapid


14

expansion of company-owned stores -each with attractive retail environmentsand responsive customer service - and,especially, the creation of a strong brand.Also devotes considerable attention tohow Schultz built the Starbucksorganization, examining the consistentemphasis that he and his colleaguesplaced on the company’s relationshipwith its employees, how Schultz financedStarbucks’early expansion, how verticalintegration ensured quality control, andhow - strategically and operationally - thecompany managed its phenomenaldomestic and international growth after1993.

Seattle WA; Retail; 37,000 employees, $2.2billion revenues; 1982-2001

EntrepreneurshipInnovationLeadership


9-502-083INSIDE INTEL INSIDE

Moon,YDarwall, C


In early 2002, Pamela Pollace,VicePresident and Director of Intel’sworldwide marketing operations, isdebating whether the company shouldextend its ‘Intel Inside’brandingcampaign to non-PC product categories,such as cell phones and PDAs.The ‘IntelInside’campaign has been one of themost successful branding campaigns inhistory.However, the campaign is morethan ten years old, and growth in the PCmarket appears to be stagnating. Incontrast, sales of portable digital devices -such as PDA’s and cell phones - appear tobe growing at a healthy rate.Pollace isdebating whether the ‘Intel Inside’campaign will work in these otherproduct categories, even though Inteldoesn’t dominate these other marketslike it does the PC market, and it isn’t clearthat consumers will associate Intel withthese other markets.May be used with:(9-505-708) Intel Commercials,Video.

California; Semiconductor; 83,000employees, $26 billion revenues; 2002

AdvertisingBrands

ConsumersDirect marketing


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

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

19 pp5-798-119 (15 pp)

499-021-1LINCOLN ELECTRIC IN CHINA

Galunic, CBjorkman, I

INSEAD

This case looks at how Lincoln Electric,the US-based company renowned for itscompensation scheme, tried toimplement its human resource policiesglobally, and particularly in China.Theobjective is to expose readers to some ofthe difficulties and myths of pushingwell-worn ideas overseas.The case endsoff with an important question regardingthe company’s future, one that dependson its overseas strategy, of which HR iskey.

China,USA,Europe; Manufacturing; 1998-1999

CompensationCross-cultureInternational expansionChinaIncentives


301-040-1LUFTHANSA 2000: MAINTAINING THECHANGE MOMENTUM

Ghoshal, SBruch, H


In 1991 Lufthansa was almost bankrupt.Eight years later, at the general businessmeeting on 16 June 1999, Jurgen Weber(CEO) announced record results inLufthansa’s history that spanned morethan 70 years. In eight years, the companyhad gone from the brink of bankruptcyto becoming one of the world’s leadingairline companies, a founding member 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 DM730 million 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 a much morefundamental 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 this case.There is a Spanish translation available(E301-040-1). **EFMD European CaseWriting Competition Category Winner2000 and ecch European Case AwardsCategory Winner 2004**



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9-494-081MANAGING YOUR TEAM Note

Hill, LHarvard Business School Publishing

Designed as an overview note for theManaging Your Team module of the MBAsecond year elective course Power andInfluence. Identifies some criteria forevaluating team effectiveness andoutlines in detail the key areas ofresponsibility of team managers:managing the team’s boundary, andmanaging the team itself (includingdesigning the team and facilitating theteam’s process).Also contains a briefappendix on managing transnationalteams as well as substantial bibliographicreferences for further reading.

Corporate cultureGroup behaviorManagerial skillsOrganizational behaviorOrganizational designPower & influenceTeams

22 pp

9-692-015MANZANA INSURANCE: FRUITVALEBRANCH ABRIDGED

Wheelwright, SCHarvard Business School Publishing

Deals with performance assessment andimprovement of a service operation inthe insurance industry, a market that ishighly sensitive to response time.Twobranch offices in direct competition aredescribed, and the impact of responsetime on performance is suggested.Management choices that impactresponse time are explored and thepoorer performer of the two branchesmust decide how to respond.

CompetitionInsuranceOperations managementPerformance measurementSchedulingService management


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

Pich, MVan der Heyden, LHarle, N

INSEAD

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.The moretraditional approach in textile retailing isillustrated here by Marks and Spencer(M&S), the well-known UK retailer.Notwithstanding M&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 the MBA core class on process andoperations management.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 Category Winner 2003 andecch European Case Awards OverallWinner 2005**

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

Process competitionOperations managementSupply chainRetail apparelDelayed customisationTime-based competitionNewsboy modelInnovation

17 ppPublished sources602-010-8 (37 pp)602-010-9 (s/w)

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 to match 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 an MBA 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.

Global; Personal computers; Fortune 500,$19 billion revenues; 1998

CompetitionComputer industryCost analysisIndustry structurePersonal computersStrategic planning


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

Bartlett, CHarvard Business School Publishing

Describes the development of McKinsey& Co as a worldwide managementconsulting 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 Gupta


16

wonders if the changes he has made aresufficient to maintain 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.

6,000 employees; $1.8 billion revenues;1996

Business policyConsultingInnovationKnowledge transferManagement of professionalsMultinational corporationsOrganization


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

Kumar, NRogers, B


This is a case that highlights the issuesinvolved in the launch of an infertilityproduct 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? How will thecontribution margin be affected if aglobal, regional, or multinational pricingstrategy is chosen? What are the ethicalissues in pricing pharmaceuticals? **ecchEuropean Case Awards Category Winner2005**

Worldwide; Biotechnology; 1997 turnoverUS$3 million; 1998

PricingNew productsInternational marketing


IMD-5-0395MEDIQUIP SA (R)

Kashani, KIMD - International Institute forManagement Development

This case is a revised and updated editionof case ‘582-011-1’of the same title.Thecase describes the selling activities of asales engineer with respect to a keyaccount.The loss of the order for a CTscanner provides the background foranalysing the dynamics of the buyingsituation and the salesman’s handling ofit.The issues raised are:who are the castof characters influencing the buyingdecision?; what seems to motivatethem?; and what sales strategy would beappropriate?

Germany; Medical equipment; 1980-1981Buyer behaviourSales organisationSalesmenSellingStrategy


9-189-056MRS FIELDS COOKIES

Cash Jr, JOstrofsky, 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.

Park City, UT; Specialty foods; Small, 8,000employees; 1988

FoodInformation managementInformation systemsInformation technologySupermarkets


IMD-3-0423NESTLÉ-ROWNTREE (A)

Ellert, JCKilling, JPHyde, D


This is the first in a three part case series(IMD-3-0423 to IMD-3-0425).Nestlé SA isthe world’s largest food company; itsacquisitions of Rowntree plc in 1988 was,at 2.5 billion GB Sterling, the largest-everforeign takeover of a British company.This case series is 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 from Nestlé’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.**ecch European Case Awards CategoryRunner Up 1992 and ecch European CaseAwards Category Winner 1997**

Europe, Global; Chocolate confectionery;S Fr 35 billion sales; 1988

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


IMD-3-0424NESTLÉ-ROWNTREE (B)

Ellert, JCKilling, JPHyde, D


This is the second of a three-case series(IMD-3-0423 to IMD-3-0425) on the 2.5billion GB Sterling takeover of Rowntreeby Nestle in 1988.Nestle has launched ahostile bid for Rowntree; this case ends ata ‘breaking point’ in the process, andplaces us in the middle of a criticalnegotiation session of the most seniorexecutives of the two companies.Thecase is written from Nestle’s point of view,and raise questions regarding the


17

takeover price and the potential post-acquisition integration and organizationstructure.A video ‘IMD-3-0424-V’ isavailable to accompany the case.**ecchAward Winning Case 1992 and 1997**.**EFMD Case Writing Award Winner1990**.

Europe, Global; Chocolate confectionery;S Fr 35 billion sales; 1988

Mergers and acquisitionsTake-over bid price-post mergerintegrationOrganization structureNegotiations


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

Manzoni, JFHughes, KBarsoux, J

INSEAD

This case is a condensed version of thecase series ‘Redesigning Nissan (A) & (B)’(303-044-1 and 303-045-1).When Renaultsent Carlos Ghosn to turnaround itsalliance partner Nissan, observers weresceptical of his chances.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 new models.Case (A)covers the dynamics of taking chargeand case (B) the process of leadingchange.The combined and condensedversion is for instructors wishing to coverthe material in a single session.The casesraise a number of themes to do with 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).

Japan (and France); Automobile sector,Nissan and Renault; Over 130,000employees; 1999-2001

Automobile, carsAllianceTransformation and turnaroundRestructuring, change and revivalFair process and credibilityCultural differencesStrategyVision and leadershipCost cutting and plant closuresEmpowermentProduct development andproductivityCross-functional teamsDesign and purchasingTrustGrowth


9-298-166NOTE ON ALTERNATIVE METHODSFOR ESTIMATING TERMINAL VALUE

Fruhan Jr,WEHarvard Business School Publishing

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 pp

9-395-144OTICON (A)

Kao, JJHarvard Business School Publishing

Portrays the change process Oticon wentthrough in moving from a bureaucratic,role-driven organization to a creativity-driven, flexible, informal one.; Managingcreativity, the role of informationtechnology in fostering collaboration,managing/leading change, creativity, andstrategy.

CreativityEntrepreneurshipInformation technologyLeadershipManagement of change

18 ppField research

IMD-5-0358PHILIP MORRIS KK

Turpin, DIMD - International Institute forManagement Development

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

Japan; Food and tobacco; 1987PricingCompetitionMarket positioning


9-373-052PRELUDE CORP

Christensen, CHRosenblum, JWeigle, C


Describes a company that is seeking torestructure the lobster fishing industry byapplying technology and managementto what has been essentially a cottageindustry.The student is expected toidentify and evaluate the strategypursued by the company to date andthen to assess the prospects for thefuture in continuing to follow thatstrategy.

AgribusinessBusiness policyGrowth strategyTechnology

21 ppField research


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9-400-087REBIRTH OF THE SWISS WATCHINDUSTRY - 1980-92 (A)

Tushman, MRadov, D


The Swiss watch industry has beendevastated by new entrants from Asia inthe low-and mid-priced watch segments.Japanese and Hong Kong firms haveused quartz technology to lower costsdramatically.Nicolas Hayek, president of aSwiss consulting firm, is asked to helpdesign a new strategy and structure forthe two Swiss giants, ASUAG and SSIH,which have decided to merge.ErnstThomke, Managing Director of ASUAG’smanufacturing arm, also figuresprominently.The case outlines options forthe 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 the management of change andthe formulation of a detailed action planto make the new company succeed.

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

Management of changeOrganizational structureProduct developmentStrategy implementationSwitzerlandTechnological change

14 ppPublished sources

303-044-1REDESIGNING NISSAN (A): CARLOSGHOSN TAKES CHARGE

Manzoni, JFHughes, KBarsoux, J

INSEAD

This is the first of a two-case series (303-044-1 and 303-045-1).When Renault sentCarlos Ghosn to turnaround its alliancepartner Nissan, observers were scepticalof his chances.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 new models.Note thatthere are two versions of the case:‘Redesigning Nissan (A) & (B)’ (303-044-1

and 303- 045-1) covers the dynamics oftaking charge (case A) and the process ofleading change (case B).There is also acombined and condensed version of thecases:‘Nissan’s U-Turn:1999-2001’(303-046-1), for instructors wishing to coverthe material in a single session.The casesraise a number of themes to do with 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.

Japan (and France); Automobile sector,Nissan and Renault; Over 130,000employees; 1999-2001

Automobile, carsAllianceTransformation and turnaroundRestructuring, change and revivalFair process and credibilityCultural differencesStrategyVision and leadershipCost cutting and plant closuresEmpowermentProduct development andproductivityCross-functional teamsDesign and purchasingTrustGrowth


9-498-054ROB PARSON AT MORGAN STANLEY(A)

Burton, MDHarvard Business School Publishing

Rob Parson was a star producer inMorgan Stanley’s Capital Marketsdivision.He had been recruited from acompetitor the prior year and hadgenerated substantial revenues sincejoining the firm.Unfortunately, Parson’sreviews from the 360-degreeperformance evaluation process revealedthat he was having difficulty adapting tothe firm’s culture.His manager, Paul Nasr,faces the difficult decision of whether topromote Parson to managing director.Nasr must also complete Parson’sperformance evaluation summary andconduct Parson’s performance review.

The teaching purpose is to exploremanagerial problems associated withperformance appraisal and performancemanagement.

Corporate cultureHuman resources managementInterpersonal behaviorInvestment bankingManagement of professionalsOrganizational behaviorPerformance appraisal


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

Moldoveanu, MCPaine, LS


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 codefendants have just beenfound guilty of inciting murder in a trialthat international observers havecriticized as deeply flawed.Saro-Wiwa, anenvironmentalist, writer, businessman,television producer, and human rightsactivist, has been a vocal critic of not onlythe Nigerian government but also Shell.Provides background on Shell, on itsbusiness in Nigeria, and onenvironmental and human rights issuesin the Niger Delta.May be used with: (9-300-039) Royal Dutch/Shell in Transition(A); (9-300-040) Royal Dutch/Shell inTransition (B).

Nigeria; Oil; 100,000 employees, $94billion revenues; 1995

AfricaCorporate responsibilityCountry analysisEmerging marketsEnvironmental protectionEthicsMultinational corporationsPetroleum industry

27 ppField research


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399-122-1RYANAIR: THE LOW FARES AIRLINE

O’Higgins, EUniversity College Dublin (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 developfuture moves 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 and Mahen Tampoe.The case‘Ryanair:The Low Fares Airline (B)’ (305-066-1) can be used as a follow on case.**ecch Irish Case Writing CompetitionCategory Winner 1999 and ecchEuropean Case Awards Overall Winner2004**.

Europe; AirlineStrategic analysisIndustry analysisResources and capabilitiesSustainable competitive advantageBusiness strategyEuropean airline industry

30 ppPublished sources399-122-8 (18 pp)399-122-9 (12 pp)

305-066-1RYANAIR: THE LOW FARES AIRLINE (B)

O’Higgins, EUniversity College Dublin (UCD)

This case follows up the original ‘Ryanair -The Low Fares Airline’ (399-122-1) case,published in 1999, and can be used inconjunction, or on a stand-alone basis. Itdescribes the strategic challenges facedby the budget carrier Ryanair in 2004 and

early 2005. Ryanair was the mostsuccessful airline in Europe in terms ofprofitability and market capitalisation.The case offers a chance to analyse thereasons for Ryanair’s success and ask if itsstrategic business model and its mannerof implementation are robust enough towithstand the challenges it faces in itscompetitive arena, the European airlineindustry (fully described as part of thecase).The reader is also invited to deviseand evaluate strategic options for thecompany and its leadership.

Europe; Airline; 2,000-plus employees,approaching 1 billion euros turnover;2005

Strategic analysisIndustry analysisResources and capabilitiesSustainable competitive advantageBusiness strategyEuropean airline industryStrategic leadership


9A94M005SABENA BELGIAN WORLD AIRLINESSTRIKE

Crossan, MPierce, B

Richard Ivey School of Business

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 anybetter 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.

Belgium; Air transportation; LargeBusiness policyManagement of changeInternational businessPolicy formulation, implementation

2 pp8A94M03 (20 pp)

9A94M004SABENA BELGIAN WORLD AIRLINES:WEYTJENS’ FIRST ASSIGNMENT

Crossan, MPierce, B

Richard Ivey School of Business

The case provides an update on theevents subsequent to the (A) case,9A94M003. It outlines the strategicchanges implemented by PierreGodfroid, Sabena’s CEO, and introducesErik Weytjens, 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.

Belgium; Air transportation; LargeBusiness policyManagement of changeInternational businessPolicy formulation andimplementation

8 pp8A94M03 (20 pp)

604-001-1SCHEDULING THE PROJECTACTIVITIES

Rama Krishna, SVeerendra Prasad, E

ICMR Centre for Management Research

The effectiveness of a project managercan be seen in the way he manages keyproject variables like time, cost andquality.Caselet 1 discusses a typicalproject management problem whichrequires the manager to use varioustechniques to schedule activities so as tocomplete the project within theminimum possible time.Caselet 2explains the process of identifying theproject activities while preparing aproject schedule.The case is structured toenable students to understand; (1) theprocess of scheduling project activities;(2) the relationship between projectvariables like time, cost and quality; and(3) the process of crashing a projectschedule.The caselets are aimed atMBA/PGDBA students and are intendedto be part of the project management oroperations management curriculum.


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IndiaProject scheduleNetwork diagramsProject crashingLead timeProject activitiesNormal timeCritical path


9-683-068SHOULDICE HOSPITAL LIMITED

Heskett, JLHarvard Business School Publishing

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 a well-focused, well-managed medical servicefacility that may well point the way tofuture economies in the field.

1982CanadaCapacity planningExpansionHospital administrationOrganizational behaviorServicesSocial enterprise


9-599-126SNAPPLE

Deighton, JHarvard Business School Publishing

Tells the story of Snapple’s rise and fall,and poses the question Can it recover?Many soft-drink brands flourished in the1980s serving New York’s Yuppies, butonly Snapple made the big time. It wentfrom local to national success and waspoised to go international when thefounders sold out to Quaker.The brandproved harder to manage than Quakeranticipated and in 1997 was sold for afraction of its acquisition price.The casepresents factors accounting for thegrowth and decline and provides a

qualitative study of the brand.Whataction should the new owners take?

New York; Beverages; 500 employees,$500 million revenues; 1972-1997

BeveragesBrandsDistributionEntrepreneurshipMarket positioningMarketing managementStrategic market planning


HR1ASOUTHWEST AIRLINES: USINGHUMAN RESOURCES FORCOMPETITIVE ADVANTAGE (A)

Pfeffer, JO’Reilly, CA

Stanford University

In 1994 both United Airlines andContinental Airlines launched low costairlines within an airline, to compete withSouthwest Airlines.From 1991 until 1993Southwest had increased its market shareof the critical West Coast market from26% to 45%.This case considers howSouthwest had developed a sustainablecompetitive advantage and emphasizesthe role of human resources as a lever forthe successful implementation ofstrategy.Asks whether competitors cansuccessfully imitate the Southwestapproach.

United States; Airlines; 12,000 Employees,$2.2 billion revenues; 1994

AirlinesCorporate strategyHuman resources managementOrganizational behaviorStrategy implementation

24 ppField researchHR1T (3 pp)

9-504-016STARBUCKS: DELIVERING CUSTOMERSERVICE

Moon,YQuelch, JA


Starbucks, the dominant specialty-coffeebrand in North America, must respond torecent market research indicating that

the company is not meeting customerexpectations in terms of service.Toincrease customer satisfaction, thecompany is debating a plan that wouldincrease the amount of labor in the storesand theoretically increase speed-of-service. However, the impact of the plan(which would cost $40 million annually)on the company’s bottom line is unclear.The teaching purpose is to explore thevarious meanings of the concept of‘service’ in the context of a company thatis evolving in terms of both size and thecomposition of its customer base and tolook at the links between ‘customersatisfaction’and a company’s sales andprofitability.

BeveragesCustomer retentionCustomer serviceMarket researchProfitabilityRetail stores


599-001-1SWATCH: COPING WITH MARKETCHANGES

Gilligan, CColin Gilligan Associates

Weisbrod, FSheffield Hallam University

The launch of the Swatch watch in the1980s proved to be one of the mostsuccessful product launches of thedecade.However, by 1998 the company’smanagement team was facing a series ofmanagement challenges.Not only weredemographic changes forcing a rethinkof the company’s strategy, but levels ofcompetition had increased dramatically.This case study reviews the way in whichSwatch developed the fashion watchmarket and how competitors who haveentered the market subsequentlychanged not only the structure of themarket, but also the nature and bases ofcompetition.The case study has beendesigned therefore to provide a forum fordiscussing how a company’s strategyneeds to develop as the market movesinto maturity and patterns ofcompetition change.

Global; Fashion watches; Multinational;1998

Marketing strategyCompetitive moves


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Strategic choiceChanging demographicsMarket maturity


503-108-1TESCO:THE CUSTOMERRELATIONSHIP MANAGEMENTCHAMPION

Mukund, AICMR Centre for Management Research

The case describes the customerrelationship management (CRM)initiatives undertaken by Tesco, thenumber one retailing company in theUnited Kingdom (UK), since the mid-1990s.The company’s growth and itsnumerous customer service efforts arediscussed.The case then studies theloyalty card scheme launched by thecompany in 1995. It examines how thedata generated through this scheme wasused to modify the company’s marketingstrategies and explores the role played bythe scheme in making Tesco the marketleader.The case also takes a look at thevarious other ways in which Tesco tried tooffer its customers the best possibleservice.Finally, the company’s futureprospects are commented on in light ofchanging market dynamics, thecompany’s new strategic game plan, andcriticism of loyalty card schemes.The caseis structured to enable students to: (1)understand the concept of CRM and itsimportance in deriving advantages in ahighly competitive market; (2) study thenature of the retailing industry in the UK,particularly the evolution of Tesco as aleading company by the end of the1990s; (3) understand the need for loyaltycard schemes, their implementation, andthe role of data mining and analysis inrunning such schemes successfully; (4)examine how the information gatheredthrough CRM tools can be used tomodify marketing strategies and thebenefits that can be reaped throughthem; and (5) analyse the various issuescompanies need to address whendevising a comprehensive CRM system.The case is aimed at MBA/PGDBAstudents and is intended to be part of themarketing curriculum.

UK; Retailing; Large; Mid-1990s to 2003TescoUK retailing industryCustomer relationship

managementCRMLoyalty card schemesClubcardCustomer profilingSainsbury’sAsdaDunnhumbyJack CohenGlobal expansionCustomer classificationCustomer serviceCustomer delight


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

Kashani, KShaner, J


This is the first of a four-case series (IMD-5-0604 to IMD-5-0607).The (A) case ofthis series describes a failed attempt tosell new packaging machinery 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 theItalian milk market and the wisdom of itsproposed customer strategy.The broaderquestion is whether the company isserving the best interest of its keyaccounts.A video ‘IMD-5-0604-V’ isavailable to accompany the case series.**EFMD European Case WritingCompetition Category Winner 2005**

Italy and international markets;Packaging systems; 7 billion Euros, 22,000employees; 2000-2002

Industrial marketingKey account marketingCustomer orientationValue chain marketingCustomer satisfaction surveysMarketing implementationManagement of change


IMD-5-0605TETRA PAK (B): HEAR ME, KNOW ME,GROW ME:THE CUSTOMERSATISFACTION INITIATIVE

Kashani, KShaner, J


This is the second of a four-case series(IMD-5-0604 to IMD-5-0607).The (B) casedescribes Tetra Pak’s second proposal toits key Italian customer, a strategy that isfinally accepted.At the same time aninternational customer satisfactionsurvey shows that Tetra Pak’s keyaccounts, including the Italian customer,are far from happy with their supplier.Thecase provides detailed data on the resultsof the customer satisfaction initiative andasks the student to assess theimportance of survey results and whatmight be done in response to them.Avideo ‘IMD-5-0604-V’ is available toaccompany the case series. **EFMDEuropean Case Writing CompetitionCategory Winner 2005**

Italy and international markets;Packaging systems; Euro 7 billion, 22,000employees; 2000-2002

Customer satisfaction surveysMarketing implementationManagement of changeIndustrial marketingKey account marketingCustomer orientationValue chain marketing


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

Dolan, RJHarvard Business School Publishing

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 the market.Allows exploration ofissues of brand equity, productpositioning, and competitive strategy inthe context of international competition.

United States; Power tools; Fortune 500,$4 billion revenues; 1990

BrandsCompetitionInternational marketing


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Marketing strategyProduct introductionTools


9-195-196THE CO-OPERATIVE BANK

Kaplan, RDatar, S


A British bank with strong roots in the co-operative movement encountersdeclining profitability in an increasinglycompetitive and deregulated financialservices industry. It attempts to grow bybroadening its customer base andincreasing the range of products andservices offered. It turns to activity-basedcosting as part of its re-engineering effortto learn more about the process andproduct costs and customer profitability,and contemplates what actions to takebased on this new information.

Activity based costingBankingCost accountingCost analysisCost systemsManagement accountingUnited Kingdom


302-057-1THE EVOLUTION OF THE CIRCUSINDUSTRY CASE A

Williamson, MMauborgne, RBensaou, BChan Kim,W

INSEAD

This is the first of a two-case series (302-057-1 and 302-058-1).Cirque du Soleilvery successfully entered a structurallyunattractive circus industry. It was able toreinvent the industry and created a newmarket space by challenging theconventional assumptions about how tocompete. It value innovated by shiftingthe buyer group from children (end-usersof the traditional circus) to adults(purchasers of the traditional circus),drawing upon the distinctive strengths of

other alternative industries, such as thetheatre, Broadway shows and the opera,to offer a totally new set of utilities tomore mature and higher spendingcustomers.The case series is designed toserve a variety of purposes in the valueinnovation and creating new marketspace teaching module of an MBAstrategy course or executive educationprogramme.The case series can beequally used individually in a standalonemodule on value innovation or as part ofa sequence of three to four sessions. Inboth instances, the instructor can bestuse it to cover the following topics: (1) thevalue innovation logic (as compared toindustry and competitive analysis); (2) theconcept of value curve; and (3) the sixpaths analysis for creating new marketspace.Transparencies are available toaccompany this case series (302-057-7).**ecch European Case Awards CategoryWinner 2006**

Canada, USA, Europe; Circus; 2001Circus and live entertainmentindustryValue innovationStrategyCreating new market spaceRedefining industry boundariesMoving across industriesThinking out of the boxCompetition


301-056-1THE FORMULA ONE CONSTRUCTORS:COMBINED CASE

Jenkins, MCranfield School of Management,Cranfield University

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 sophisticated multi-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.

Global; Motorsport; Large; 1950-2003Sustained competitive advantageResource based viewCore competenceDistinctive capabilitiesStrategy


9-601-163THE RITZ-CARLTON HOTEL COMPANY

Sucher, SJMcManus, SE


In just seven days, the Ritz-Carltontransforms newly hired employees into‘Ladies and Gentlemen Serving Ladiesand Gentlemen’.The case details a newhotel launch, focusing on the uniqueblend of leadership, quality processes,and values of self-respect and dignity, tocreate award-winning service.

District of Columbia; Lodging industry;18,000 employees, $1.5 billion revenues;2000

BrandsChange managementHuman resources managementInnovationOperations managementOrganizational behavior


302-033-1THE TRANSFORMATION OF BP

Ghoshal, SGratton, LCRogan, M


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


23

structure 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, and management’s responses tothose challenges.A video ‘302-033-3’ isavailable to accompany the case.**ecchEuropean Case Awards Category Winner2005 and ecch European Case AwardsOverall Winner 2006**

Global; Oil and gas; US$120 billion sales,100,000 employees; 2001

Managing changeOrganisation designLeadershipSocial responsibility of businesses

28 ppField research

9-693-019TOYOTA MOTOR MANUFACTURING,USA, INC

Mishina, KHarvard Business School Publishing

On 1 May, 1992, Doug Friesen, Manager ofassembly for Toyota’s Georgetown,Kentucky, plant, faces a problem with 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 on Toyota ProductionSystem; (2) exercise advanced root causeanalysis; and (3) demonstrate the totalityof manufacturing, especially the linkbetween production control and qualitycontrol.

Georgetown, KY; Autos; Large, 4,000employees, $1-5 billion revenues; 1992

AutomobilesInternational operationsProcess analysisProduction controlsQuality controlSuppliers


9-597-028TWEETER ETC

Gourville, JTWu, G


In the early 1990s,Tweeter etc, a smallregional retailer of higher-end audio andvideo equipment, faced increasingcompetitive pricing pressures fromseveral large regional and nationalconsumer electronics chains. In response,in 1993, they introduced Automatic PriceProtection (APP) as the cornerstone of astrategy to restore price credibility in theminds of consumers.Under APP,Tweetermonitored local newspaper ads andautomatically mailed a refund check to aconsumer if an item purchased atTweeter was advertised for a lower priceby a competitor.Three years later, in 1996,Tweeter is questioning the impact of APPon their current competitive positioning.More importantly, with the pending entryof another major discount chain,Tweeteris forced to question how effective APPwill be in a market increasinglydominated by large discount retailers.Introduces the concept of pricesignalling in a retail environment, whiledemonstrating the multifaceted natureof product pricing.

CompetitionElectronicsHome entertainment equipmentMarketing strategyPricingRetailing


504-009-1UNILEVER IN BRAZIL: MARKETINGSTRATEGIES FOR LOW-INCOMECONSUMERS

Chandon, PPacheco Guimaraes, P

INSEAD

Unilever is a solid leader in the Braziliandetergent powder market with an 81%market share.Laercio Cardoso mustdecide: (1) whether Unilever shoulddivert money from its premium brands totarget the lower-margin segment of low-income consumers; (2) whether Unilevercan reposition or extend one of itsexisting brands to avoid launching a newbrand; and (3) what price, product,promotion, and distribution strategywould allow Unilever to deliver value tolow-income consumers withoutcannibalising its own premium brandstoo heavily.This case deals with thequestion of whether marketing andbranding create value for really poorconsumers. It can therefore be used in anMBA, executive education orundergraduate core course on marketingmanagement to illustrate the value ofmarketing and the marketing approach,or in a brand management course toexplore the frontiers of branding.Thiscase can also be used in a consumerbehaviour course to examine themotivations and decision-makingprocess of low-income consumers.Alternatively, it can be used in a globalmarketing or global strategy andmanagement course to study the waymultinational companies adapt theirstrategy to compete in emergingcountries.The case and teaching notecontain colour exhibits. **EFMD Case ofthe Year Award Category Winner 2004**

Brazil; Home and personal care; US$56billion; 1996-2004

MarketingBrandingLow-income consumersPovertyNew product introductionBreak-even analysisAdvertisingPricing

24 ppField research504-009-8 (35 pp)504-009-9 (CD-ROM)


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9-384-185VALUATION TECHNIQUES Note

Roberts, MStevenson, H


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

EntrepreneurshipValuation

8 pp

595-023-1VIRGIN ATLANTIC AIRWAYS:TENYEARS AFTER

Larreche, JCDenoyelle, P

INSEAD

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 won manyawards 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.The main 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 onmarketing management or servicesmanagement.There is a Frenchtranslation available (F595-023-1).Thiscase contains colour exhibits. **ecchEuropean Case Awards Overall Winner1996**

UK, international; Airlines; 1994MarketingServicesValueDeliveryEntrepreneurshipPublic relationsLeadershipPricing


9-504-028VIRGIN MOBILE USA: PRICING FORTHE VERY FIRST TIME

McGovern, GHarvard Business School Publishing

Dan Schulman, the Cheif ExecutiveOfficer of Virgin Mobile USA, mustdevelop a pricing strategy for a newwireless phone service targeted towardconsumers in their teens and twenties,many of whom are believed to have poorcredit quality and uneven usage patterns.Contrary to conventional industrywisdom, Schulman is convinced that hecan build a profitable business based onthis underrepresented target segment.The key is pricing.Schulman is currentlydebating three pricing options: (1)adopting a pricing structure that isroughly equivalent to the major carriers,(2) adopting a similar pricing structure,but with actual prices below the majorcarriers; or (3) coming up with a radicallydifferent pricing structure.With respectto the third option, Schulman isconsidering various alternatives,including a reliance on prepaid (asopposed to post-paid) plans and thetotal elimination of contracts. Includescolor exhibits.

United States; Cellular communications;200 employees, $5.2 billion revenues;2002

Market segmentationPricingPricing strategyTarget marketsTelecommunications


9-794-024WAL-MART STORES, INC

Foley, SBradley, SPGhemawat, P


Focuses on the evolution of Wal-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.Howsustainable are these, and what are thethreats to Wal-Mart’s continued success?

United States; Retail; Large, 440,000employees, $68 billion revenues; 1994

CompetitionDiscount department storesIndustry structureRetailingStrategy formulationStrategy implementation


303-119-1WHEN OLD DOGS LEARN NEWTRICKS: THE LAUNCH OF 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 andchallenges of strategic change - evenwhen successful - in established firms.BBC News Online was a success from thestart. It achieved instant resonance withits intended market and quicklydeveloped into one of the UK’s leadingcontent-only sites, with growth faroutstripping UK Internet penetration.From many perspectives this is surprising.Better funded commercial peers wereexperiencing problems with theirInternet businesses, and the BBC wasrenowned 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 18 months this situationturned malign 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, Richard


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Sambrook, Controller of BBC News, facesa central dilemma:where to positionNews Online within BBC News.Autonomy means it can remain a creativeand cohesive organisation that canrespond flexibly to the market.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.

UK, London; Media; 22,000 employees;1997-2002

British Broadcasting CorporationBBCMedia industryInternetStrategic changeTechnological changeLeadershipCultureCognitionCreativity


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

Gabarro, JJHarvard Business School Publishing

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

Europe; Beer; Mid-size, $100 million salesBeveragesHuman resources managementLeadershipManagement stylesPerformance appraisalSuperior and subordinate


IMD-3-0875WWW.EASYRENTACAR.COM

Kumar, NRogers, B


In April 2000, Stelios Haji-Ioannoulaunched easyRentacar, his latestInternet-based business.EasyRentacar

was 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 carbusiness 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:The Web’sFavourtie Airline’ (IMD-3-0873), and‘easyEverything:The Internet Shop’(IMD-3-0874).

Europe; Car rental; <100 employees; 2000 InternetEntrepreneurshipIndustry analysis


303-074-1XELIBRI: A SIEMENS MOBILEADVENTURE

Kaufmann, LClemens, FHagen, HHedderich, FSassmann, H

WHU - Otto Beisheim Graduate Schoolof Management

This case study is situated in the mobilecommunication devices industry andpresents the launch of a new mobilephone 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 phone market.The story iscentered on 34-year-old George Appling,President of Xelibri, who had been hiredfrom McKinsey & Company to conceive acomprehensive strategy for creating anew product category in the saturated

mobile phone market.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 providethem with background information, thecase study gives a description of thedevelopment of the mobile phonemarket and Siemens’position in it. It alsogives an overview of the importance ofXelibri’s performance for Siemens’mobilephone business and explains the initialsteps to set up the new operation.Theteaching note supplement is aPowerPoint presentation given duringthe case writing seminar.

Germany; Mobile communication deviceindustry; Euros 84,016 million net sales,426,000 employees; 2003

MarketingBrand management and brandingEurope, Germany market entryInnovation, entrepreneurshipEntrepreneurial managementInternational management andinternational businessGeneral management and strategyProduct management and pricingChoice of distribution channelsFashion, telecommunication andmobile phoneStrategy implementationCompetition and competitivestrategyIndustry analysisNew product category


592-045-1ZANTAC (A)

Angelmar, RPinson, C

INSEAD

The case describes the development,worldwide launch, and subsequentmarketing of a new pharmaceuticalproduct which, although it representedonly a slight improvement over thecategory pioneer, not only became theleading product in its category, but thelargest prescription pharmaceuticalproduct overall worldwide. Its successpropelled Glaxo, the company whichdeveloped and marketed the productfrom the minor leagues to the top rank inthe pharmaceutical industry.There is also


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a (B) case available (594-011-1).There areFrench (F592-045-1), German (D592-045-1) and Japanese (J592-054-1) translationsof this case available.This case containscolour exhibits. **ecch European CaseAwards Category Winner 1994 and ecchEuropean Case Awards Overall Winner1998**

UK; Pharmaceutical; Large; 1989-1992Marketing strategyGlobal marketingProduct life cycleCompetitive strategy


603-002-1ZARA

Domiguez Machuca, JAUniversity of Sevilla

Ferdows, KGeorgetown University

Lewis, MThe University of Warwick

The case offers an illustration of a fast-response global supply, production, andretail network. In 2002 Zara, operating outof La Coruna in north-west Spain, was theonly retailer that could deliver garmentsto its 507 stores in 33 countries in justfifteen days after they were designed. Itsunique systems for product design, orderadministration, production, distributionand retailing were behind thisastonishing capability. Its unconventionalapproach provides interestingopportunities for discussion and learning.The case is quite popular with executives,MBA’s and undergraduate businessstudents. It can be used in a remarkablywide range of courses - from a coreoperations management course toelectives focused on internationaloperations, operations strategy, globallogistics, distribution, retailing, as well asin specialized and general executiveprogrammes.The teaching note includesseveral photographs from Zara’soperations in La Coruna, and theappendices are available as PowerPointfiles as the teaching note supplement‘603-002-9’.This case was the winner ofthe 2003 Indiana University Center forInternational Business Education andResearch (CIBER)-sponsored Productionand Operations Management Society(POMS) International Case Competition.ASpanish translation is available

(E603-002-1). **ecch European CaseAwards Category Winner 2005**

Spain and global; Fashion apparel; Largemultinational; 2002

Global supply chainDesign-product-distribution-retailintegrationFast-response networksFashion retailingQueuing and inventory modelsManufacturing-marketing interfaceTime-based competitionMechanising


9-703-497ZARA: FAST FASHION

Ghemawat, PNueno, J


Focuses on Inditex, an apparel retailerfrom Spain, which has set up anextremely quick response system for itsZARA chain. Instead of predicting monthsbefore a season starts what women willwant to wear, ZARA observes what’sselling and what’s not and continuouslyadjusts what it produces andmerchandises on that basis.Powered byZARA’s success, Inditex has expanded into39 countries, making it one of the mostglobal retailers in the world.But in 2002, itfaces important questions concerning itsfuture growth.

Clothing industryCompetitive advantageFashionGlobalizationGrowth strategyMarket selectionRetailing industrySpainSupply chainTime based competitionVertical integration


9-604-081ZARA: IT FOR FAST FASHION

Sjoman, ADessain,VMcAfee, AP


In 2003, Zara’s CIO must decide whetherto upgrade the retailer’s IT infrastructureand capabilities.At the time of the case,the company relies on an out-of-dateoperating system for its store terminalsand has no full-time network in placeacross stores.Despite these limitations,however, Zara’s parent company, Inditex,has built an extraordinarily well-performing value chain that is by far themost responsive in the industry.Describes this value chain, concentratingon its operations and IT infrastructure.The teaching purpose is to show howone company makes brilliant use ofmultiple information channels: subjectiveand objective; qualitative andquantitative; and phone, face-to-face, e-mail, and modem.Also, to highlight theinside-out approach to selecting IT.Thequestion Zara always asks about IT is not‘What can we do?’but ‘What do we needto do?’and to demonstrate howinformation and IT support a businessmodel.

Clothing industryComputer networksInformation technologyOperations managementProductionRetailingSupply chainVertical integration



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