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Cases published in the Babson Collection

2013“Apple and Dell, 2007” BABSON CLASSICKathleen T. Hevert

Abstract: This case presents Abigail Thomas, a fictitious MBA student contemplating taking a position with either Apple Computer or Dell Computer upon her May 2007 graduation. She is undertaking a financial analysis of the two companies to (1) practice her financial analysis skills in preparation for final round interviews, and (2) assess which company has the greater long-term potential to create shareholder wealth, and therefore be more likely to thrive. The case provides the most recent income statement and balance sheet for each company, and asks students to fill in a template of selected financial ratios.

Learning Objectives: This case can be used for two audiences. First, it can be used as an introductory case for MBA students being exposed to financial statement analysis for the first time. Second, it works well as a breakout exercise during an executive education session. In either case, the note “Starbucks Corporation: Financial Analysis of a Business Strategy” is recommended as background reading.

“Can Growth Entrepreneurship Take Place in Denmark’s Central Region?” -BABSON GLOBALDaniel J. Isenberg

Abstract: The case describes Denmark’s entrepreneurship and innovation policies, as well as its accomplishments, at least in terms of achieving top rankings in entrepreneurship policies by the OECD and EU. Whereas more high-growth venture activity has evolved in Copenhagen, no one in Denmark claims that this is sufficient, and some further doubt that even this success can be replicated in the other four regions, including CDK; indeed, this is a source of disagreement, and another main issue in the case: Should every region be a locus of high-growth entrepreneurship when talented entrepreneurs are moving to Copenhagen for its concentration of resources?

Learning Objectives: The CDK case can be used in graduate and undergraduate courses on public policy, innovation, innovation, and entrepreneurship, as well as executive programs, such as Harvard’s Innovation for Economic Development or

J:\WRKGROUP\Babson Teaching Center\Faculty Portal Rev 2

James Morrison, 06/17/13,

Is this already published? I couldn’t find it with either ECCH or HBSP to give it a citation.

Kathy Hevert, 06/17/13,

I never published this. I have just used it for my own purposes in my own sessions. I have decided to update it and request publication.

MIT’s Regional Entrepreneurship Acceleration Program, as well as in programs such as the Babson Entrepreneurship Ecosystem Project. The case can also be used by economic development agencies in their regional training programs. I use it in in-house programs in economic development and entrepreneurship policy programs attended by public and private leaders from the same city.

“Conducting an Early-Stage Feasibility Analysis for Entrepreneurial Opportunities” – Background NoteENTREPRENEURIAL LEADER COLLECTIONDonna Kelley

Abstract and Learning Objectives: A feasibility analysis is an early-stage evaluation of the viability and attractiveness of an entrepreneurial opportunity. It is a point-in-time assessment of the most critical elements to consider during initial conceptualization of a venture. In addition, it provides a framework for determining next steps in developing the opportunity amid a context of high uncertainty that typically characterizes entrepreneurial ventures.

The note details key questions the entrepreneur should address pertaining to five feasibility components: team, business model, unique value and advantage, market segments, and compelling need. Analysis focused on these components allows the entrepreneur to understand the market and the solution space, and to develop a set of activities and a financial model to capture this opportunity. In addition, the entrepreneur can outline the resources the team has at hand to pursue the opportunity as well as assess overall feasibility, key uncertainties, and next steps.

The note emphasizes information gathering based on qualitative secondary research, primary observation and conversations with customers and experts, and experiments to test assumptions. A complete outline of a feasibility analysis is provided with extensive details and recommendations to guide each step in the process.

Suitable for the following courses or audiences:

Courses: EntrepreneurshipOpportunity creation or developmentEntrepreneurial marketingEarly-stage market research

Audiences:Undergraduate and Graduate coursesExecutive education and executive trainingIndividuals or groups developing entrepreneurial opportunities or starting businessesFaculty who teach entrepreneurship or market research and analysis


“Deborah DiSanzo at Philips Medical Systems” (A), (B)ENTREPRENEURIAL LEADER COLLECTIONNan Langowitz, J.B. Kassarjian

Abstract:This case series profiles the leadership transition of a rising executive at global corporation. In the A case Deborah DiSanzo is asked to take on a new assignment within Philips Medical Systems as general manager of the patient monitoring business, a highly profitable but low growth unit, and to leave behind the high growth cardiac resuscitation business where she has been an entrepreneurial leader. The challenge for DiSanzo in her new role is to create a vision for growth in an organization that has seen high turnover, has an entrenched senior team, and has already tasted high success.

The case chronicles the ways in which DiSanzo re-aligns the organization around a new shared vision, provides insights into how to effectively navigate as a new leader, and how to drive organizational change and renewal. The brief B case shows the business unit is successfully growing, and in the process creating greater complexity. DiSanzo is faced anew with the challenge of mobilizing her larger team and keeping the excitement of her hard-earned vision tangible.

Learning Objectives:Courses in which this case can be used include Strategy Implementation, Change Management, and Organizational Behavior and the case is suitable for use in both graduate and executive education contexts.

This category deals ith “from strategy to reality”. Although the process DiSanzo follows does include formulating very specific strategies, the case is not about strategy formulation based on generic models. It is also not about the drafting of the language of a vision statement, although it does include the process of hammering out a new vision for Patient Monitoring that the leadership team jointly crafts.

“Designing and Delivering the Perfect Pitch” – Background NoteAngelo Santinelli and Candida Brush

Abstract: Entrepreneurs are often unprepared to begin the process of raising capital despite having what may appear to be a well-polished presentation. They tend to focus too much on the finer points of the product or service, leaving critical questions unanswered regarding the solution’s fit with the problem, the market, the industry, and the competitive environment. Thus, entrepreneurs need to communicate clearly to resource providers their capabilities, the value of their venture idea, and the benefits of engaging with the team.


Learning Objectives: This note helps students to design a pitch that covers the appropriate content and provides tips on how to better communicate it. A “perfect pitch” comprises two elements: (1) the content—aspects of the problem being solved, the solution, the value proposition, the business model, and the resources required; (2) the communication—the delivery of the message in terms of voice, body language, appearance, and eye contact. Both the content and the communication are essential to a “perfect pitch.” This note will outline the steps entrepreneurs can follow to develop a perfect pitch: the feasibility analysis, preparation for approaching investors, planning, the content, communication, and follow up.

“F.P. Journe – Invenit et Facit”BABSON GLOBAL COLLECTIONAnirudh Dhebar

Abstract:The “F.P. Journe—Invenit et Fecit” case is about the entrepreneur (François-Paul Journe, or “Journe”), his passion (a yearning to “integrate his respect for the legacy and craft of watchmaking, fascination with horological science, urge to break new ground, and sense of design into watches offering the desired qualities of innovation, performance, and comfort to a wider public”), and his enterprise (“F.P. Journe”).

The case begins with Journe, chronicling his multi-stage journey from his initiation to watchmaking at the age of fourteen in a watchmaking school in Marseilles, France, to the founding some twenty-seven years later of F.P. Journe the enterprise. The journey was formative in terms of Journe’s own learning about the basics and legacy of watchmaking, his own watchmaking aspirations and sensibilities, and the intricate puzzle of modern-day business. Sometimes directly and at other times through inference, the case characterizes the learning at each stage. With the person comes her or his passion, and the case provides details on how Journe’s passion with respect to watchmaking as well as F.P. Journe, his enterprise, was shaped through the experience and learning over his professional journey. The case next considers the details of the enterprise, and the discussion of F.P. Journe the enterprise is structured to guide the reader through its conception and architecture as of the writing of the case (May 2012). The case concludes with some details on how F.P. Journe managed the challenging economic period following the late 2008 global economic shock and Journe’s closing thoughts on what the future might hold for him and his enterprise.

Learning Objectives:The “F.P. Journe—Invenit et Fecit” case was written to provide an interwoven tapestry of the entrepreneur, her or his passion, and the enterprise of her or his creation. As such, it would best be used in an educational forum intended for this


integrated conversation and learning. The case can effectively be used in both graduate MBA and executive-education programs in four types of course offerings: entrepreneurship, the entrepreneur and the enterprise, strategy and the enterprise, and global business.

“Makerbot: Challenges in Building a New Industry”ENTREPRENEURIAL LEADER COLLECTION*VIDEO TEACHING NOTE*Ruth Gilleran, Erik Noyes

Abstract:The case begins with a discussion of MakerBot’s founders, self-proclaimed hackers who shared a deep passion for robotics. Open-source zealots, they were determined to bring affordable 3D printing to the masses. They did this by keeping every aspect of their printer’s hardware and software open and adaptable. Their first product emerged out of a research collaboration. Instead of taking the conventional path of first crafting a business plan, they started MakerBot by demonstrating proof-of-concept, creating and promoting their first printer to the open-source community in 2009.

Next, we discuss the history of 3D printing and provide several fascinating examples of 3D innovations in the medical, automotive, music, and fashion industries. It’s important to note that the majority of MakerBot sales to date have come from hobbyists or members of the do-it-yourself or maker movement. Products most commonly printed on MakerBot printers include toys, gadgets, and household items. Applications are getting more targeted and interesting. This object, a custom clip that enables a diabetic to hang and cool insulin on a car’s AC vent, was printed on a MakerBot 3D printer.

We conclude the case by looking at MakerBot’s competition with a particular focus on the large 3D printing companies which initially targeted corporations but are now turning their attention to the consumer market. These companies include 3D Systems Corp, Stratasys, and Hewlett-Packard.

Learning Objectives:The student learning objectives are as follows:

1. To appreciate the significance of executing iterative learning experiments and creating prototypes in order to determine future entrepreneurial actions.

2. To understand the importance of having a strong customer value proposition, and the importance of correctly identifying and selecting target market segments to pursue.

3. To explore and understand 3D printing, a technology which is likely to disrupt the manufacturing industry and create new opportunities for entrepreneurs.


4. To examine the advantages and risks associated with open-source strategies centered on community engagement.

A major teaching point that we would like to communicate is that 3D printing and open technology can both accelerate and sustain innovation.

We suggest that you begin the class by reminding students that entrepreneurs operate in an environment of several unknowns, and that the best way to deal with uncertainty is to run a series of experiments.

“Monica Ashley at Energy Plus” (A), (B)Allan Cohen

Abstract:This is a multilayered case that can be taught from many angles. Monica Ashley is a smart, early-career, woman manager. After 10 years in a staff role, she is asked to lead a radical product development effort at Energy Plus, a technical solutions and services firm experiencing rapid growth providing design and implementation services for large-scale energy projects. There are indications that various forms of alternative energy will grow in the future, and the company has chosen to focus on wind power as a major growth area. Intense internal opposition is led by Ralph Parker, the engineer whose designs for standard fossil-fueled generators have been critical to the company’s success.

Ashley was chosen for the project by CEO Gary Dorr and has the backing of her boss, Dan Stella. Parker’s fierce opposition combines with other factors to block progress: the loose matrix organization structure, little top-down control, and uncertainty whether wind power using new technology and requiring different, smaller clients can be a successful business. Ashley focuses on getting the “right” answers, goes outside to acquire design expertise, and pushes to move rapidly to market. These actions do not advance the project smoothly, and she ends up being removed as project leader even though she is eventually proven right.

Learning Objectives:The case allows for multiple, overlapping teaching objectives. It can be used to examine the challenges of leading change from the middle, entrepreneurial leadership, influence without authority (in all directions), stakeholder analysis, action and contingency planning, and/or interpersonal conversations under difficult conditions. It allows for close examination of how to influence difficult people, with enough information about four key players plus Ashley herself to enable role-playing with uncertain outcomes. Some amount of role-playing is at the center of classroom activity, with variations on how to do it and regardless which learning objective are highlighted.

There are several possibilities for creating “Aha” moments:


A seemingly impossible-to-influence person can sometimes be moved if you are able to adopt that individual’s point of view to determine what he or she cares about.

A manager focused on “truth” who believes it will carry the day chooses to be “right” rather than effective. This is a common problem for people in the middle of organizations who excel in their technology or discipline and think everything else is nasty politics. Many technical entrepreneurs suffer from this problem.

Ignoring organizational/cultural context often leads to frustration.

When a person or group cannot be influenced, it may be possible to reduce their resistance by offering something they value, listening to what they care about, and not giving any reason for them to feel they are being ignored or disparaged even if you don’t agree.

If it is necessary to protect yourself by using or threatening to use negative currencies, publicly identifying hostile behavior may be the best defense.

It is difficult to understand what matters to someone else when you are engaged with high emotion. If you accept the interests of others as a legitimate difference, you can tune in to what matters and use that as part of what you offer.

It is impossible to anticipate fully how others will respond to your initiatives. However, it may be possible to think of likely alternatives and plan a next step for each, as well as choose a first action based on the best risk-reward ratio.

Networking or building relationships is not “nasty politics” but smart membership behavior for anyone working in an organization.

Role-playing with a trusted colleague can be an effective way to plan for a difficult conversation, identifying landmines in advance.

The case works equally well with MBA students and executive education participants. It has been used successfully with undergraduates in a leadership elective.

“Note on Innovation Management” – Background NoteENTREPRENEURIAL LEADER COLLECTIONSinan Erzurumlu

Abstract:


COMING SOON

Learning Objectives:

“Starbucks Corporation: Financial Analysis of a Business Strategy”BABSON CLASSIC COLLECTIONKathleen T. Hevert

Abstract:This note introduces calculation and interpretation of basic financial analysis, including common size income statements and financial ratios. It emphasizes linkages between financial results and operating strategy. It uses financial results for Starbucks Corporation for fiscal 2010 through 2012 to provide context for financial analysis interpretation. Starbucks’ global presence and widely familiar business model make it a particularly helpful vehicle for illustrating interpretation of financial analysis. In addition to profitability ratios, asset management ratios, and financial leverage ratios, DuPont analysis of return on equity (ROE) is introduced to illustrate how profitability, asset utilization, and financial leverage come together to measure ability to generate return to shareholders. This note does not draw definitive conclusions about whether Starbucks is effectively managed, but it illustrates how Starbucks’ operating strategy is reflected in its financial results. It demonstrates that financial results tell an intuitive story about a firm’s business model and operating strategy.

This note assumes a working knowledge of income statements and balance sheets. Its intended audience is non-financial managers in an executive program wishing to understand how their operating decisions affect corporate-level financial performance. It also is useful for MBA students in a core finance or accounting course.

Learning Objectives:

Introduction to computation and interpretation of basic financial ratios Introduction to DuPont analysis of return on equity (ROE) Recognize link between business model and financial results

“Sullivan Container”Michael Cummings and Robert Brewster


Abstract: Sullivan Container operated both new industrial steel barrel production and the reconditioning of industrial steel drum and plastic containers in several plant locations in the United States. The firm operated in an industry with a checkered past, characterized by periods of price fixing and environmental problems. A new management team acquired the firm in 2007 and began revamping manufacturing practices and focusing on environmentally sustainable practices. Faced with the severe economic crisis in 2009, the firm continued to pursue sustainable practices, but now faces a critical question as investment costs in sustainable practices increase. The key question we explore is: Given the industry history, will build sustainable practices into their business model drive a customer’s Willingness to Pay? The case allows students to explore the challenges of creating a Willingness to Pay for aspects of value creation that may have no immediate positive effect on their customer’s internal operations.

Learning Objectives: The case is designed for use in an introductory strategy course. It allows the instructor to explore the concepts of industry-level and organizational-level legitimacy, the role of PEST factors in shaping strategic decision making and the associated concepts.

“Term Sheets in Early Venture Capital Financing” – Technical NoteAngelo Santinelli

Abstract: This note is intended to provide background information and guidelines for students to better understand how to read and negotiate a term sheet. It provides definitions for key terminology, includes a generic example of a term sheet along with explanations for different clauses in the term sheet. preparing a pitch to investors.

Learning Objectives: The Note covers preparation, suitable for any advanced level undergraduate students, MBA’s or Executives who are taking advanced Entrepreneurial Finance courses.

“Vera Bradley (B)”Angelo Santinelli

Abstract: Headquartered in Fort Wayne, Indiana, Vera Bradley was founded in 1982 by friends Barbara Baekgaard and Patricia Miller in the basement of Baekgaard's home. After noting a lack of appeal in women’s travel bags, the two started the company with an investment of $500. The company grew via a wholesale/direct model through sales to independent gift shops and gradually increased sales to $58 million by 2002. The founders began to consider new strategic growth initiatives in 2003 including additional product releases,


expanding the target market, and visual merchandising to retailers. The (A) case set in 1982 follows the founders through the earliest stages of company development examining idea genesis, harnessing of resources, and the handling of early missteps. The (B) case set in 2002 is a short note on progress of the company since inception to a key decision point on whether and how best to continue growth and expand the brand.

Learning Objectives: The Vera Bradley series is written to serve a number of purposes in a course on Entrepreneurship and Opportunity and can also be used in a course on Managing Growth.The (A) case examines the different pathways to entrepreneurial success more often associated with seasoned, repeat entrepreneurs. It can be positioned nearer the end of an introductory course on entrepreneurship to drive home the point that successful ventures are not formulaic, involving the careful writing and execution of a business plan, but often depend upon characteristics and principles adhered to by the entrepreneurial leader(s). The (B) case examines the challenges and impact on operations associated with the decision to expand the entrepreneurial venture through new strategic growth initiatives. It examines the business model integration necessary when innovations or changes in the product/service offering, target market segments, or revenue model necessitate changes in the company’s operational model (e.g., value chain, cost model, organizational and sales model).

2012“Accounting for Liabilities: Lessons from the Exxon Valdez,” by Jan Bell

This case addresses how to account for an environmental catastrophe from its initial stages to its conclusion, using the 20-year history of the Exxon Valdez oil spill as an illustration of the accounting disclosures required over time. The case has two parts. Part I addresses the question of whether a company has a responsibility to accrue and disclose a provision in its financial statements before a disaster occurs. Part II addresses accounting disclosures required in the aftermath of such a disaster. A student in intermediate accounting performs the role of an intern working at an international public accounting firm with clients who may be faced with incidents similar to Exxon’s, such as the British Petroleum Deepwater Horizon catastrophe in the Gulf of Mexico, in 2010.

“Appirio: New Venture on a Cloud,” by Bala Iyer and Erik Noyes

Appirio, a cloud computing services and consulting business, is experiencing explosive growth buoyed by its successful strategic partnerships with Google and Salesforce.com. The company practices what it preaches—choosing to keep all of its systems in the cloud. Appirio's senior leadership team is convinced that building


its venture in the cloud offers extreme competitive advantages in terms of agility, efficiency, ability to scale, and employee empowerment to drive rapid innovation. Will Appirio ascend to rocket heights, or are the skies darkening with challenges that will hurt a cloud pure-play such as Appirio? What lessons, if any, are there for other entrepreneurs hoping to turn their IT systems into an entrepreneurial growth engine?

“Best Buy,” by Jay Rao and Sam Perkins

This case is intended to highlight entrepreneurial thought and action - a specific style of entrepreneurial leadership - inside the context of a large enterprise. The case protagonist is Mike Fisher, Sr., Director of Lean and Six Sigma at Best Buy. The setting is the headquarters of Best Buy, a large U.S.-based electronics and appliance retailer and the case spans the years 2005 to 2011. There are primarily three broad topics in this case: (1) Entrepreneurial Leadership Styles, (2) Culture of Innovation and (3) Merging Lean Six Sigma with Innovation. This case was specifically developed to support and augment one other case study and an article in the area of Entrepreneurial Leadership styles. Taken together, these materials highlight four different styles of Entrepreneurial Leadership.

“BizTech: Aligning Incentives with Strategy using Business Intelligence,” by PJ Guinan, Bala Iyer and Sal Parise

Founded in 2001 by Tom Connolly, BizTech was recognized throughout the mid-Atlantic region as a leading information technology services firm. While Connolly believed BizTech had achieved good growth thus far ($15 million in revenues and approaching 100 employees), there were growth challenges going forward. Connolly believed significant improvement in measuring and reporting on performance could help take the firm to the next level. In particular, business analytics could be used to help BizTech employees understand and improve demand generation and opportunity management processes, which would eventually lead to a higher level of sales.

“Blue Herron Capital Partners, LLC,” by Kathleen Hevert

This case introduces students to the valuation of financial options using the binomial and Black Scholes option valuation models. It also illustrates the key drivers of option value, including expiry, exercise price, volatility, and dividends. The subject of the case is a socially-responsible hedge fund. The options valued are written on two firms, AstraZeneca plc and Medco Health Solutions, Inc., with documented and recognized social responsibility practices.

“Boston Innovation District Turns Two,” by Dan Isenberg

The Boston Innovation District (BID) case is set in May 2012 as Boston mayor’s Chief of Staff, Mitch Weiss, contemplates the 2+ years of achievements since Mayor Menino announced the launch of the BID. On one hand, the successes have been tangible, with hundreds of new jobs created, many hundreds more on the way, a flood of new and existing innovative companies moving to the BID, and an upsurge of new real estate developments. On the other hand, rising rents threaten


to make the area unattractive for the entrepreneurs and the creative professionals who have given the BID so much of its appeal. Furthermore, there are hints that the real estate developers are not 100% aligned with the BID vision.

“BSL: A Business School in Transition,” by JB Kassarjian

Katrin Muff, a Swiss serial entrepreneur in her thirties, is unexpectedly offered the opportunity to become Dean of her alma mater, Business School Lausanne. BSL is a small business school offering BBA, MBA, and DBA degrees, and it is part of the privately held and family-controlled Lemania Group of schools in Switzerland. Even though she is initially skeptical about her fit with an academic-administrator role, she decides that the challenge of reshaping her old school may present a rare opportunity to build an organization that could influence many lives.

With a 3-part video to accompany each of the three parts of this case series, it can be used in many settings and programs, to examine the challenges of driving change in a complex setting with competing constituencies.

“Building a Women’s Hospital in Coimbatore, India” by Gaurab Bhardwaj

The case is about an entrepreneurial effort to build a hospital focused on women’s health in a mid-sized city in India called Coimbatore. As a lower-middle-income country with a poor state of health care, India presents a resource-poor setting in which to build a hospital. Dr. M. Govindarajan (Dr. MGR) trained as an obstetrician and gynecologist in Canada and practiced there for several years before returning to her hometown of Coimbatore to bring high-quality medical care for women. Investing her own money and gradually expanding treatments, she builds a reputable center for women’s health affiliated with an established hospital. Several years later, she and her family decide to found a new, independent, high-quality hospital that would focus exclusively on women’s health, reach more women, and offer more treatments. Dr. MGR’s son, Jay, leads the venture, having studied business in the United States. The case provides an information-rich description of the changing state of the economy and the poor state of health care, which is undergoing big changes. Jay has to abandon their initial desire to target lower-income women, as it proves to be economically unviable. The focus shifts to higher-income women. With no success raising funds, the family invests almost all its wealth in the new venture. A chance meeting leads Jay to open a fertility clinic in a neighboring city to generate revenue with plans to open more such clinics in other cities. Dr. MGR expresses an interest in starting a blood bank and a specialized ambulance service. The case ends in June 2011 with the hospital opening delayed by several months. Meanwhile, a competitor has emerged with a name similar to theirs, having hired away some of their medical and paramedical professionals. In response, Jay considers acquiring an expensive machine based on a new technology to gain a competitive edge. Should he buy this machine? Given the larger contextual changes in the economy and the health-care sector, what other decisions should he make?


Drawing on case information, the teaching note provides additional background that an instructor unfamiliar with health care in India will find helpful. The note covers a wide territory, so instructors may select topics that best meet their teaching goals.

“Case of the Co-Founders,” by Allan Cohen, Nan Langowitz, JB Kassarjian and Melissa Manwaring

This exercise is a simple two-party negotiation with the possibility of integrative solutions. Each student is placed in the position of a co-founder of a start-up firm. The firm was created by two colleagues who met in graduate business school. One party brings the technological expertise and innovation at the heart of the product idea, while the other brings financial resources and expertise. By the time they begin to seek funding, their relationship is deteriorating and conflicting interests emerge - in defining roles, allocating decision-making responsibilities and dividing equity. KB focuses on technical solutions and aims to use “green” solutions to change the world. JR focuses on business performance and aims to achieve funding, growth, and the potential to exit and “play again.” The roles are deliberately labeled only with initials so that each student can imagine himself or herself in the assigned role.

“Crisis Communication Across a Global Supply Chain: Foxconn, Apple and the Shenzen Suicide Factory,” by Laura Foote

A series of worker suicides at a large consumer electronics factory in Shenzhen, China, suddenly threw the manufacturer Foxconn into the media spotlight, both in China and in the United States. Foxconn is the largest exporter in China, and a supplier to Apple, Dell, HP and others. However prior to these actual events in 2010, Foxconn had a low name recognition, both among US consumers and in the international media. The suicide incidents sparked a widespread international response. As a result, significant changes were implemented, both by Foxconn, in its labor operations and public relations, and by Apple, in its supplier relationships. The case asks students to evaluate the crisis response by both companies, and raises issues about transparency and stakeholder accountability.

“Crisis Communication on a College Campus: Norovirus Outbreak Hits Babson College,” by Laura Foote

For any organization, a crisis puts a spotlight on leadership, since the timing of key decisions can either intensify or alleviate the crisis. In the wake of the shooting tragedy at Virginia Tech in 2007, many educational institutions have sought to prepare their leadership teams to respond to a variety of unexpected events, from natural disasters to hacking. This case depicts the crisis response of the Dean's office at Babson College, when a flu outbreak led to closing the campus and served as a practice drill for potentially more serious threats. The case also introduces a framework for crisis response by an organization.

“Entrepreneurship in the Trenches: Bayco Electronics Cases (Alcott, NRIC Projects) by Farshad Rafii and Carl Hedberg


This is a two-case series on entrepreneurial leadership, dealing with two separate internal ventures started by two aspiring entrepreneurial leaders in a (disguised) large electronics company. One venture succeeded and the other failed, providing a pedagogically powerful setup for discussing and understanding drivers of success in corporate entrepreneurship; the effect of the entrepreneurial leader’s attributes and actions; and the importance of using business intelligence/analytics in decision making. Ensuring sufficient capacity to serve demand is one of the most critical challenges in managing service operations. Having insufficient capacity —over the course of the lunch hour, throughout the day, from week to week, over the course of the season, the year, or longer—results in long lines, long waits, and customer departure. Having too much capacity, on the other hand, results in excess worker idleness, low worker utilization and therefore, unnecessarily high costs.

“Exploring New Business Opportunities at LoJack,” by Donna Kelley and Carl Hedberg LoJack Corporation built a successful position as the global leader in tracking and recovering stolen vehicles. Based on radio frequency (RF) technology, the LoJack system is installed in vehicles by automobile dealers, and is not visible to thieves. When a car is stolen, the unit emits an activation code that is detected by tracking units, allowing law enforcement agencies to locate the vehicle. LoJack signals can penetrate buildings and containers: an advantage over competitors like GPS-based systems. At the time of the case, LoJack was facing increased competition, slow growth in the automobile industry, and a world-wide recession. Main discussion points center on whether exploring new business horizons is a good idea given these conditions, how a company can extend its strategic boundaries through corporate entrepreneurship, and how to evaluate new business opportunities in a corporate environment.

“Goldlake Eurocantera Honduras,” by Marty Anderson and Sinan Erzurumlu The GOLD Group, an international for-profit Italian holding company, long fostered an entrepreneurial tradition of entering new markets with innovative business models. GOLD launched Goldlake, a mining industry investment company, through its subsidiary Eurocantera in Honduras. Goldlake’s goal was commercial viability, with consideration of the environmental and social impacts of its business decisions on reputational and financial value. This case focuses on how Goldlake developed values based on principles of human and environmental sensitivity and how it turned the social innovation of community inclusiveness into a competitive advantage. The case demonstrates how social responsibility applies to organizational practices by placing environment and people at the center of a business model and how sustained competitive advantage depends on stakeholder involvement in the supply chain. The case reveals the organizational complexity and rewards of social innovations and suggests a strategic perspective for social and commercial value generation.


“Intelligent Medicine: The Novartis-Proteus Alliance,” by Anirudh Dhebar

Novartis’s potential application of smart-pill technology for improved drug compliance is the primary focus of this case. The case summarizes the nature and magnitude of the drug noncompliance problem, describes some of the competing solutions to address the problem, outlines Proteus’s technology in this context, profiles the Proteus and Novartis enterprises, and concludes by characterizing the challenge in front of Novartis as it decides which pill(s) to make smart and how best to market the smart pill(s). The proposed thrust of the case study is not the decisions themselves but the preparatory marketing research necessary for informatively making the decisions.

“MetaCarta,” by Andrew ZacharakisDoug Brenhouse, John Frank and Eric Rauch developed a new search technology that converts text names into geographic maps. When the project was initiated in 1999, the business model was going to be advertisement-driven. With the dot-com bust, MetaCarta had to change course to sell the platform to government agencies and businesses, particularly in oil and gas. The main focus of the case is on financing. The case concludes with an offer from Sevin Rosen, a premier venture capital firm, that has significant implications for the founders and earlier round investors. The case is particularly useful to illustrate capitalization tables. It shows how equity is diluted with subsequent rounds and what the implied value of the company is at various stages.

“Note on Managing Capacity and Demand in Service Operations,” by Farshad Rafii

This note aids instructors in teaching cases about managing service operations. It is appropriate for a variety of lessons dealing with service operations. The note focuses on the inherently challenging task of ensuring that service operations have the right type and amount of capacity at the right time, namely, when the customer demands it. This is a challenge because customer demand for services typically involves both seasonal and random variability, requiring service operations to vary the level of services provided over different time periods (hours, days, months, years) and to provide a capacity cushion to absorb unpredictable variations in demand. This note presents different short- and long-terms strategies for matching service capacity with demand, along with the costs and benefits of each. It concludes with a discussion of some tactics to manage customers’ perceptions of service quality.

“Saving the Children of Costa Rica,” by Candida Brush This case is a continuation of Saving the Children of Costa Rica- B Case, where Dr. Charles Gartrell has launched a new non-profit organization and is struggling to make ends meet. The case offers an opportunity for students to think about novel ways to raise money, develop strategic partnerships, and for an organization trying


to solve a serious social problem- the provision of medical and educational services for the population of poor barrio children.

“Shorewood Soups,” by Gary Ottley

Shorewood Soups has grown in size and strength since its inception in the 1980s to a company known for its authentic soup products. It is a tiny fish in a large pond, but it has built a strong brand identity with its cooking and production practices, its commitment to refrain from using additives or preservatives and its great-tasting soups. With about $100 million in revenues, the firm needs to take the next step and set an aggressive goal of growing the company from $100M to $200M in revenue in the next five years. While the company is largely a foodservice and bulk retail (B2B) company, a key part of the growth strategy involves investing in growing the relatively small consumer products line. This goal poses significant marketing and organizational challenges. For the marketing strategy to be successful, Shorewood Soups needs to manage the transition internally. Students are put in the role of the company's VP of Marketing (Kevin O’Leary), and must (a) consider the strategic goal placed before him (double sales in five years), (b) consider whether the current positioning and brand identity of the company fits the strategic goal, (c) explore alternative “niche” positioning options, such as catering to the gluten-free market, (d) determine the most effective tactical marketing plan to achieve that goal, and (e) proactively manage the organizational effects of those plans.

“Theo Chocolate,” by Michael Cummings and Gary Ottley

Theo Chocolate is a small start-up chocolate manufacturer struggling to establish brand recognition in the highly competitive branded gourmet chocolate segment. Theo’s unique value proposition - being “the only organic, Fair-Trade, bean-to-bar chocolate factory in the United States” - drives its business. Socially responsible business practices are cornerstones of the company’s operations. After three years, Theo had built a loyal, growing following by forging a brand based on its value proposition and everyday business practices. However, despite steady improvements in all financial indicators, to date Theo has not been profitable – the company expected to break “into the black” in its fourth year. The case explores the challenges the key players face as the company emerges from the first stage of the entrepreneurial venture. The key issue is whether Theo can afford to stay true to the strategy and value proposition that has defined its existence. The case provides students an opportunity to wrestle with very real issues that idealistic entrepreneurs face – compromising principles, brand-building, managing cash flow and planning for the future.

“Toto, Ltd.,” by Kenichi MatsunoHeadquartered in Tokyo, Japan, Toto Ltd. was a global manufacturer of kitchen and bathroom equipment, fixtures and similar products. The company was a leader in product innovation in the kitchen, bathroom and plumbing categories. One of its products, called a “Washlet,” was an electronic toilet seat with multiple functions: heating, showering, drying, and deodorizing. Students are asked to conduct research to estimate potential market size for the Washlet product line in both Egypt and the United States. The case familiarizes students with market research;


provides experience conducting secondary data/information searches; heighten the awareness of critical linkages between marketing decision needs, marketing actions, and market research questions; exposes students to the Fermi estimation approach; and promotes students’ understanding of the fact that quality of assumptions improves as knowledge of a competitive environment increases. “Trump in Scotland,” by Wendy Jeffus

Sarah Malone, director of the Gordon Highlanders Museum in Aberdeen, Scotland, was taken aback by an unsolicited phone call from a New York headhunter asking her to discuss an opportunity with Trump International Golf Links Scotland. During her six years as museum director, she had overseen an expansion that helped boost the museum’s visitors to more than 30,000. She enjoyed the intellectual journey her position brought, along with her role promoting and maintaining Scotland’s dynamic heritage.

Malone was familiar with the well-publicized trouble Donald Trump was having with the Scottish government, environmental groups and local citizens as he sought approval for his project. As she considered this new opportunity, she knew there must be another side to the debate. The position would require her to articulate the benefits the golf course could bring to her community. What if she were offered a position with the Trump Organization? Would this move be good for her career? More important, would Trump’s proposed investment be good for Scotland?

“W.L. Gore,” by Jay RaoWL Gore is a very successful firm which differs from mainstream enterprises in a number of ways: strategy, structure, ownership, leadership and operations. This case allows participants to delve into each of these elements and see how they are all consistent and reinforce one another. The main focus of the case is its “culture of innovation.” Both “culture” and “innovation” are discussed and debated incessantly inside large organizations, but there is often confusion and clutter. This case sheds light and clarifies these slippery concepts. The notion of sustainable competitive advantage is passé. Technologies, products, services, etc. do not offer the lasting competitive advantages that they used to. All competitive advantages are limited by space and time. So the only lasting competitive advantage is a culture of innovation. This case highlights a best-practice scenario of the culture of innovation.


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