100 best-selling cases - the case centre · on the case method, ... barco projection systems (a):...

ecch the case for learning

2007 edition

100 best-selling cases

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This bibliographical supplement presents the 100 best-selling cases from theecch catalogue during 2006. 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 theauthor(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 experienceTeaching 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 27,000 full text inspection copies. To searchthe database of over 48,000 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 2007in association with The Boston Consulting Group

Overall winner

504-007-1DIESEL FOR SUCCESSFUL LIVING: BRANDING STRATEGIES FOR ANUP-MARKET LINE EXTENSION IN THE FASHION INDUSTRYPierre Chandon and Vadim GrigorianINSEAD

Economics, Politics and Business Environment

204-181-1INDIA: THE WORLD'S LARGEST DEMOCRACY: THE ELEPHANTUNSHACKLEDJonathan StoryINSEAD

Entrepreneurship

804-031-1ABRAKEBABRA: GROWING PAINS IN A FAST FOOD RESTAURANT CHAINRosalind Beere, Peter McNamara and Colm O'GormanUniversity College Dublin Business Schools

Ethics and Social Responsibility

704-056-1THE CO-OPERATIVE GROUP: FAIRTRADE CHOCOLATEStephanie Robertson, Chris Voss, Adrian Clarke and Josephine BrennanLondon Business School

Finance, Accounting and Controlsponsored by The Institute of Chartered Financial Analysts of India University

103-057-1SAINSBURY'S (B) SUPPLY CHAIN PERFORMANCE MEASUREMENTRegine Slagmulder, INSEADDaniel Corsten, University of St Gallen, Kühne-Institute of Logistics

Human Resource Management / Organisational Behaviour

499-021-1LINCOLN ELECTRIC IN CHINACharles Galunic and Ingmar BjorkmanINSEAD

Knowledge, Information and Communication Systems Management

904-006-1KENT COUNTY COUNCIL: IMPLEMENTING IT FOR E-GOVERNMENTTheodoros Evgeniou and Kishore SenguptaINSEAD

Continued overleaf

European Case Awards 2007 (continued)

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Marketing sponsored by The Chartered Institute of Marketing

504-009-1UNILEVER IN BRAZIL: MARKETING STRATEGIES FOR LOW-INCOMECONSUMERSPierre Chandon and Pedro Pacheco GuimaraesINSEAD

Production and Operations Management

602-039-1MANAGING PRODUCT RETURNS AT HEWLETT PACKARDLuk N Van Wassenhove and Daniel R Guide, JrINSEAD

Strategy and General Management

303-046-1NISSAN'S U-TURN: 1999-2001 CONDENSED VERSION OF REDESIGNINGNISSAN (A) & (B)Jean-François Manzoni, Kathryn Hughes and Jean-Louis BarsouxINSEAD

Special award

THE SUMANTRA GHOSHAL AWARD FOR EXCELLENCE IN CASE WRITINGINSEAD

OD1AAGILENT TECHNOLOGIES:ORGANIZATIONAL CHANGE (A)

Carroll, GBarnett, WChang, V

Stanford University

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

Technology; 46,000 employees, $10.8billion revenues; 2000-2001

Computer industryCorporate reorganizationHigh technologyNew processOrganizational changeOrganizational designOrganizational developmentOrganizational management

Organizational problemsSpinoffs

35 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’ssupervisory board is on the verge ofapproving a $13 billion investment forthe development of a new super jumbojet known as the A3XX that would seatfrom 550 to 1,000 passengers. Havingsecured approximately 20 orders for thenew jet, the board must decide whetherthere is sufficient long-term demand forthe A3XX to justify the investment. At thetime, Airbus was predicting that themarket for very large aircraft (VLA), thoseseating more than 500 passengers,would exceed 1,500 aircraft over the next20 years and would generate sales inexcess of $350 billion. According toAirbus, it needed to sell 250 aircraft tobreak even, and could sell as many as 750aircraft over the next 20 years. This caseexplores the two sets of forecasts, andasks students whether they wouldproceed with the launch given the size ofthe investment and the uncertainty inlong-term demand. Illustrates the basiceconomics of large projects and thecomplexity in estimating even top-linedemand for products with useful lives ofup to 50 years. Also illustrates the role ofgovernments in large projects, both asinvestors and as customers. Finally itexplores the competitive dynamicsbetween 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 ABETTER SHOWER

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; Manufacturingindustries; £8 million revenue; 2001

Consumer behaviorConsumer marketingDistribution channelsMarket entryMarket positioningMarketing strategyProduct development


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Product introductionProduct positioning


394-049-1BANCO COMERCIAL PORTUGUES(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 performance

graphics 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


9-694-046BARILLA SPA (A)

Hammond, JHHarvard Business School Publishing

Barilla SpA, an Italian manufacturer thatsells to its retailers largely through third-party distributors, experienced widelyfluctuating demand patterns from itsdistributors during the late 1980s. Thiscase describes a proposal to address theproblem by implementing a continuousreplenishment program, under which theresponsibility for determining shipmentquantities to the distributors would shiftfrom the distributors to Barilla. Describessupport and resistance within Barilla’sdifferent functional areas and within thedistributors Barilla approached with theproposal.

Italy; Grocery stores; 7,000 employees,US$2 billion revenues; 1990

Distribution planningLogisticsOrder processingSupermarketsSuppliers


9-673-057BENIHANA OF TOKYO

Sasser Jr, WEKlug, JR


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

Food industry; Mid-size; 1972Corporate strategyExpansionMultinational corporationsServices

17 ppField research5-677-037 (5 pp)5-696-021 (10 pp)

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,but is concerned about the risk thatthese investments might add to herportfolio. Provides a lead-in to the CAPM.Students learn about total risk, non-diversifiable or portfolio risk, and (CAPM)beta, and calculate variability of thestocks separately, and portfolio variancewith and without the stocks, to see howan extremely risky (but low-beta) stockactually reduces risk; and calculate stockbetas.

Investment management; Small; 1991Cost benefit analysisDiversificationEfficient marketsInvestment managementPortfolio managementRegression analysisRisk assessment

5 ppGeneralised experience5-294-113 (10 pp)

9-794-079BITTER COMPETITION: THE HOLLANDSWEETENER COMPANY vsNUTRASWEET (A)

Brandenburger, ACostello, MKou, J



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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, andJapan, 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 finalcountdown to the expiration ofNutraSweet’s US patent. Provides anopportunity to study a game in businessthat takes place at two levels: there is thesurface game of tactics, and there is alsothe underlying game of value. At thetactical level, there are various points atwhich NutraSweet or HSC made a movewith a view to shaping the perceptions ofthe other player. Turning to theunderlying game of value, there are theactions that NutraSweet took during theperiod of patent protection. Theseactions served to maintain NutraSweet’sadded value in the post-patent game,and to deny added value to challengers.

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

BeveragesCompetitionFoodPatentsStrategy formulation


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, HKoggersvol, 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.

Seattle, WA; Aircraft manufacturing;Large; 1990

Capital asset pricing modelCapital budgetingCapital investmentCompetitive analysisCost of capitalValuation

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

505-113-1BRAND CONSOLIDATION:RE-POSITIONING UNILEVER’SEUROPEAN ICE CREAM BUSINESS

Tavassoli, NSvetlicic, Z

London Business School

In 2001, a task force at Unilever wascharged with charting the future of thecompany’s European ice cream business.

While it was the largest ice cream makerin the world, Unilever faced a decline inmarket share, sales volumes, andrelevance among consumers. The teamhad to decide on a brand strategy thatwould reconnect with customers, ignitegrowth and solidify the company’sleadership of the industry. The practicalchallenge was if and how to consolidatethe brand portfolio; how individualbrands should be positioned or re-positioned as part of this strategy; andhow this strategy could be implemented.

Europe; Ice cream (frozen foods); Sales ofabout 50 billion euros; 2001

BrandingPositioningRe-positioningBrand architectureBrand consolidationGlobal brandingPerceptual mappingQualitative researchNeeds segmentationStandardisationBrand rationalisationMarketingConsumer behaviourEuropeCustomer needs


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.


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AustraliaBeveragesBusiness policyEntrepreneurshipInternational businessInternational marketingNew product marketingStrategy implementationUnited Kingdom


195-001-1CARREFOUR IN ASIA (A): TAIWAN: ABRIDGEHEAD INTO ASIA

Lasserre, PCourbon, P

INSEAD

This is the first of a two-case series (195-001-1 and 195-002-1) and analyses theentry of a European mass retailer in Asia.A 13-minute video (195-001-3) and abackground note (195-001-5) is availableto accompany the case. There is a Frenchtranslation available (F195-001-1). Thiscase contains colour exhibits. **ecchEuropean Case Awards Category Winner1996**

Taiwan; Distribution, Retailing,Hypermarkets

Asia PacificInternational strategyEntry strategyMarketing in AsiaInternational servicesAsia business


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, $3.5 billion revenues;1992-1993

AdvertisingLeadershipMultinational 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 revisingbudget targets. Illustrates intensivestrategic planning and financial planningprocess in a large, decentralizedcompany. Includes interviews with thepresident and senior executivesconcerning benefits of the system. Raisesissue of the role of formal control systemsin decentralized organizations.

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

BudgetingControl systemsDecentralization

Planning 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. Theylooked to emerging internationalmarkets to fuel growth and broaden theirbrand portfolios to include non-carbonated beverages like tea, juice,sports drinks, and bottled water. For overa century, Coca-Cola and Pepsi-Cola hadvied for the ‘throat share’of the world’sbeverage market. The most intensebattles of the cola wars were fought overthe $60 billion industry in the UnitedStates, where the average Americanconsumes 53 gallons of carbonated softdrinks (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 orwhether 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

BeveragesCompetition


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Corporate strategyIndustry analysisIndustry structureInternational business


9-580-104CUMBERLAND METAL INDUSTRIES:ENGINEERED PRODUCTS DIVISION -1980

Shapiro, BPSherman, JJ


Cumberland Metal Industries hasdeveloped a new product to helpcontractors drive piles faster. They aretrying to decide how to price it. Providessubstantial information on the industry,competition, etc. Students must decidewhat factors are relevant in making anindustrial pricing decision. Decisionsmust also be made about promotion anddistribution channels. Software for thiscase is available (9-589-528).

United States; Construction equipment;Small, $18 million sales; 1980

CompetitionConstructionDistribution channelsIndustrial goodsIndustrial marketsMarket entryNew product marketingPricing strategy


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 Italiancasual wear 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 attractive

high casual wear market; (2) to create anaura of prestige for the core D-Diesel line;and (3) to provide Diesel’s designers withthe opportunity to experiment with newcuts and fabrics, 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 canalso be 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’),a PowerPoint 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 and ecchEuropean Case Awards Overall Winner2007** This case was reviewed in ECCHO.To read the review visitwww.ecch.com/casereviews.

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

BrandingMarketingBrand managementBrand extensionFashion

Luxury goodsAdvertisingLogos

24 ppField research504-007-8 (21 pp)504-007-9 (CD-ROM)

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

Esty, BSchreiber, C


A Wall Street analyst has just learned thatFPL (the holding company for Florida’slargest electric utility) may cut itsdividend in several days despite a 47-yearstreak of consecutive dividend increases.In response to the deregulation of theelectric utility industry, FPL hassubstantially revised its competitivestrategy over the past several years. Theanalyst must decide whether a change individend policy will be a part of FPL’sfinancial strategy in this deregulatedenvironment. Allows students toexamine how firms set and changedividend policy. Also provides abackground for examining why firms paydividends and whether dividend policymatters.

Florida; Electric utility; Large, 12,400employees, $5.3 billion revenues; 1994

Corporate strategyDeregulationDividendsElectric powerFinancial strategySecurities analysis


301-228-1EASYEVERYTHING’S PRICINGPOLICIES

Pagliero, MCourty, P


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 thecafés is automatically updated every 5


9

minutes 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 areused 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 levelsof customer satisfaction. A key issue inthe case is whether the airline willcontinue to grow and survive in thehighly competitive low-cost segment ofthe market. In 2000, Stelios was anxiousto try his hand at launching otherbusinesses, so he started a chain of

Internet cafés. Some questioned whetherStelios would be able to successfullytransfer his low-cost business model toInternet cafés. Undeterred, Stelios movedahead with his plan to createeasyEverything, with the belief that hecould make a profit by encouragingcustomers to surf the Internet, send e-mail and shop on-line. This case containscolour exhibits. An abridged version ofthis case is available ‘IMD-3-0873’. A videois available to accompany this case (IMD-3-0873-V). Instructors should note that‘easyJet’ is the first case in a series thatincludes ‘easyEverything: The InternetShop’(IMD-3-0874) and‘www.easyrentacar. com’(IMD-3-0875).**ecch European Case Awards CategoryWinner 2001 and ecch European CaseAwards Overall Winner 2002** This casewas reviewed in ECCHO. To read thereview visit www.ecch.com/casereviews.

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

Marketing strategyIndustry analysisService management

22 ppField researchIMD-3-0873-T (19 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 or

executive 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 industriesThinking out of the boxCompetition


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

Manzoni, JFBarsoux, JL

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 very


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rich case that can be tackled from severalangles. 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 casehighlights the various roles of the leader -as strategist, 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 thecase raises 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 strategyFair process

Corporate 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.Often firms 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 selectionProduct introduction in new

marketsInternal marketing


301-056-1FORMULA ONE CONSTRUCTORS:COMBINED CASE

Jenkins, MCranfield School of Management

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 1 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 imitationand appropriation of key resources; andthe idiosyncratic and path-dependentnature of sources of advantage.

Global; Motorsport, Formula One; Large;1950-2003

Sustained competitive advantageResource based viewCore competenceDistinctive capabilitiesStrategyFormula 1F1


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 and


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growth 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.May be 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


9-806-105GOOGLE, INC

Eisenmann, TRHerman, K


Describes Google’s history, businessmodel, governance structure, corporateculture, and processes for managinginnovation. Reviews Google’s recentstrategic initiatives and the threats theypose to Yahoo, Microsoft, and eBay. Askswhat Google should do next. One optionis to stay focused on the company’s corecompetence, ie, developing superiorsearch solutions and monetizing themthrough targeted advertising. Anotheroption is to branch into new arenas, forexample, build Google into a portal likeYahoo or Microsoft Network (MSN);extend Google’s role in e-commercebeyond search, to encompass a moreactive role as an intermediary (like eBay)facilitating transactions; or challengeMicrosoft’s hegemony over the personalcomputer (PC) desktop by developingsoftware to compete with Office andWindows.

Mountain View, California (CA), UnitedStates; Advertising industry, Internet andon-line services industries, softwareindustry; 5,000 employees, US$6.1 billionrevenues; 2005

Business historyBusiness modelsCompetitionCorporate cultureCorporate governanceCorporate strategyCorporate structureEntrepreneurshipGovernanceInnovationNetwork effectsSearch enginesSocial networksValues

33 ppPublished sources5-806-199 (28 pp)5-807-067 (7 pp)

IMD-3-1353GREG DYKE: TAKING THE HELM ATTHE BBC (A)

Killing, PKeys, T


This is the first of a three-case series (IMD-3-1353, IMD-3-1354 and IMD-3-1441).This is a teaching case designed toillustrate the challenges facing a seniorexecutive, in this case a CEO (Director-General), as he or she takes over a newrole in a new organisation. The BBC hasmajor internal challenges aroundorganisation and culture, in addition tosignificant external market challenges asthe media industry moves from analogueto digital technologies. The case is set onthe day of Greg Dyke’s first speech to staffwhen he needs to set the agenda for histime as Director-General. Key discussionpoints are expected to be around: thepriorities he sets for tackling the issuesthat face him, how he communicates hisleadership style and the approaches fortackling an unhappy organisation. Avideo ‘IMD-3-1353-V’ is available toaccompany the (A) and (B) cases. **EFMDEuropean Case Writing CompetitionCategory Winner 2005**

United Kingdom; Media; £3 billionrevenue; 2000

MediaLeadershipOrganisational change

CultureStrategy


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 andquoted 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


9-384-050HONDA (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 strategyJapan


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Management of changeManagement stylesMotorcycles


405-020-1IKEA’S INNOVATIVE HUMANRESOURCE MANAGEMENTPRACTICES AND WORK CULTURE

Dutta, SRegani, S

Institute of Chartered FinanicalAnalysts of India Center forManagement Research

IKEA was one of the largest furnituremanufacturers and retailers in the world,with operations in 32 countries (in early2005). The company was well known forits stylish and innovative designs. It wasthe pioneer of furniture that could bedismantled and packed flat, to allow easeof transportation. IKEA’s main strengthwas its committed workforce, which wasoften the source of the company’sinnovative concepts. IKEA adopted apositive approach toward humanresource management. In the late 1990sand early 2000s, the companyimplemented several initiatives thatpromoted life balance and diversity. Thecase discusses the innovative humanresource management practicesadopted by IKEA and describes its workculture. Initiatives related to flexible workdesign, comprehensive benefits, qualityof work life and employee training anddevelopment are outlined. The case alsodiscusses the prominent elements ofIKEA’s culture, such as: diversity;openness; equality; cost consciousness;and competitiveness. The teachingobjectives of the case are: (1) tounderstand the human resourcemanagement practices and work cultureof a major furniture manufacturer andretailer; (2) to appreciate the importanceof positive human resourcemanagement practices in employeeretention; (3) to understand the need foremployee development and to study thepractices adopted by a majormultinational company toward this end;and (4) to analyse the effect of culture onemployee morale and the relationshipbetween culture and innovation. Thiscase is meant for MBA/PGDBM studentsand is designed to be part of the human

resource management andorganisational behaviour curriculum.

Sweden; Furniture retailing; Large; 1953-2005

Human resource managementWork cultureIngvar KampradFranchisee modelSwedish companiesEmployee retentionLife balance and diversityBenefits policyCo-worker Appreciation Day401(K) PolicyTraining and developmentPaddle your own canoeIKEA valuesDiversity and creativityAdvertising


9-705-458JCDECAUX

Wells, JRStachowiak-Joulain, MDessain, V


Describes how JCDecaux, the secondlargest global outdoor advertisingcompany, became the world leader instreet furniture advertising in a fastconsolidating business environment.Also explains why, in the late 1990s,JCDecaux diversified its activities intobillboards and transport outdooradvertising in reaction to competitorattacks. Places students in the position ofJean-François Decaux and his brotherJean-Charles Decaux, the sons of thefounder and JC Decaux’s co-CEOs (chiefexecutive officers) who, in late 2004,explore ways to continue the success ofthe 73% family-owned business.

France; Advertising industry; 7,000employees, 1.544 million euros revenues;2004

AdvertisingBusiness modelsCorporate cultureCorporate strategyFamily owned businessesMarket analysisPublic relationsStrategy formulationStrategy implementation

32 ppField research

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


9-376-241LEARNING BY THE CASE METHODNote

Hammond, JSHarvard Business School Publishing

Helps students fully capitalize on the casemethod. Succinctly introduces thebenefits, format, and process whileoffering lots of (how-to) advice. Widelyused as an introductory handout forexecutive, MBA, and undergraduatecourses. Describes how case discussionenables the exchange of managerialexperience and knowledge. Emphasizesthe need to identify the real issues anddo rigorous analysis in the course ofreaching a management decision andthat there is typically more than one(right) answer.

Higher educationCase methodLearningTeaching methods

4 pp

9-906-034LEHMAN BROTHERS (A): RISE OF THEEQUITY RESEARCH DEPARTMENT

Nanda, AGroysberg, BPrusiner, L


Under Jack Rivkin’s leadership, ShearsonLehman’s research department rose from


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relative obscurity to the highest rankingresearch department on Wall Streetwithin three years. When Rivkin ispromoted to head of equity, he wondershow to succeed in his new position.

Global; Investment banking; 250employees, US$80 million researchbudget; 1987-1990

Human resources managementLeadershipOrganizational changeStrategy implementation

26 ppField research

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. **ecch European Case AwardsCategory Winner 2007**

China,USA,Europe; Manufacturing; 1998-1999

CompensationCross-cultureInternational expansionChinaIncentives


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.

California; Insurance industry; 1989-1991CompetitionInsuranceOperations 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)

9-289-047MARRIOTT CORP: THE COST OFCAPITAL Abridged

Ruback, RHarvard Business School Publishing

Gives students the opportunity toexplore how a company uses the CapitalAsset Pricing Model (CAPM) to computethe cost of capital for each of its divisions.The use of Weighted Average Cost ofCapital (WACC) formula and themechanics of applying it are stressed.

Hotels and restaurants; Large; 1988Capital costsHotels and motels


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 theevolution of the personal computerindustry, Dell’s strategy, and efforts byCompaq, IBM, Hewlett-Packard, andGateway 2000 to capture the benefits ofDell’s approach. Students are called on toformulate strategic plans of action forDell and its various rivals. Designed to betaught in any of several places in an MBAcourse on competitive strategy. Permitsan especially detailed examination ofimitation; illustrates how fit among


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activities 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 Guptawonders if the changes he has made aresufficient to maintain the firm’s vitalknowledge development process. Canbe used 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** This case was reviewed in ECCHO.To read the review visitwww.ecch.com/casereviews.

Worldwide; Biotechnology; 1997 turnoverUS$3 million; 1998

PricingNew productsInternational marketing


803-051-1MEG WHITMAN: THE DRIVING FORCEBEHIND EBAY

Mukund, ANeela Radhika, A


The case examines the managerial andleadership skills of Meg Whitman, theCEO of eBay, the leading US-based on-line auction site. eBay’s business modeland its growth since its inception in 1995up to the entry of Whitman in 1998 arediscussed. The case also traces Whitman’srapid rise up the corporate ladder andexamines the circumstances that led herto join eBay. Whitman’s managerial and

leadership capabilities are also discussedin detail. The case also examines thereasons for Whitman’s emphasis oncustomers and describes the variousstrategies she formulated to make eBay aglobal on-line company. The case alsoexamines the criticism levelled againstWhitman and explores the futureprospects of Whitman and eBay. The caseis designed to help students: (1)understand how the eBay businessmodel was leveraged by Whitman tomake the company the undisputedleader in the on-line auction market; (2)understand Whitman’s business acumen,beliefs and convictions and the factorsthat contributed to her success; (3)examine Whitman’s management styleand leadership skills, and how theyhelped eBay attain leadership in itsindustry; and (4) understand the variousstrategies adopted by Whitman forattracting big customers, building theeBay brand, and increasing its user base,revenues and profits, and helping eBaygain a competitive edge. The case isintended for MBA/PGDBM level studentsas part of the entrepreneurshipcurriculum. The teaching note does notcontain an analysis of the case.

US; On-line auction; Large; Mid-1990s to2003

Meg WhitmaneBayOn-line auction industryeBay’s business modelPierre OmidyarLeadership stylesBusiness restructuringHands-on management styleCustomer service and focusPortfolio expansionStrategic agreementsCasual management style


9-300-001MICROSOFT: COMPETING ON TALENT(A)

Bartlett, CWozny, M


Describes the evolution of Microsoft’shuman resource philosophies, policies,and practices and how they were used asa core of the company’s competitiveadvantage. In particular, the case focuseson how Microsoft has tried to retain its


15

ability to recruit, develop, motivate, andretain first class talent as it grew from astart-up to a global behemoth. Triggeredby high-profile, senior-level departures in1999, the company must decide if it istime to change the ‘hard core’culturethat many feel is at the core of itscompetitiveness. The teaching purpose isto show how human resource policiesand practices can become a source ofcompetitive advantage - and the impactof a hard-charging corporate culture onpeople burnout.

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

Corporate cultureEmployee retentionGrowth managementHuman resources managementMotivationOrganizational behaviorSoftwareStrategy implementation


9-100-027MICROSOFT’S FINANCIALREPORTING STRATEGY

Bowen, RMatsumoto, D


Explores Microsoft’s overall financialreporting strategy by examining thecompany’s treatment of two accountingissues - software capitalization andrevenue recognition. For both issues, thecompany selects accounting methodsthat are relatively conservative. Alsodiscusses the issue of managing analysts’expectations and Microsoft’s tendency toprovide analysts with very conservativeexpectations for the future. Provides aforum to discuss possible reasons forMicrosoft’s accounting and disclosurechoices and also discusses the Securitiesand Exchange Commission’s recentinvestigation into Microsoft’s accountingpractices.

Seattle, WA; Software; Fortune 500,27,000 employees, $15 billion revenues;1996-1999

Accounting policiesDisclosureFinancial accountingFinancial analysisSoftware industry


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,8,000 employees; 1988

FoodInformation managementInformation systemsInformation technologySupermarkets


IMD-3-0423NESTLÉ-ROWNTREE (A)

Ellert, JCKilling, PHyde, D


This is the first in a three-case series (IMD-3-0423 to IMD-3-0425). Nestlé SA is theworld’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 historical

policy of not making hostile takeovers.**ecch European Case Awards CategoryRunner Up 1992 and ecch European CaseAwards Category Winner 1997**

Europe, Global; Chocolate confectionery;SFr 35 billion sales; 1988

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


IMD-3-0424NESTLÉ-ROWNTREE (B)

Ellert, JCKilling, PHyde, 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 Nestlé in 1988. Nestlé 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 thetakeover price and the potential post-acquisition integration and organisationstructure. 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;SFr 35 billion sales; 1988

Mergers and acquisitionsTake-over bid price-post mergerintegrationOrganization structureNegotiations


IMD-3-1334NESTLÉ’S GLOBE PROGRAM (A): THEEARLY MONTHS

Killing, PIMD - International Institute forManagement Development


16

This is the first of a three-case series (IMD-3-1334 to IMD-3-1336). All three casescan be taught in a half-day session. ChrisJohnson has been given the task ofinitiating and managing the world’slargest SAP roll out. The scope is global,the time frame for completion is fiveyears. The cost is estimated at SFr 3billion. Chris has to move to Switzerlandand start building an organisation andgetting Nestlé ready for a new way ofmanaging the business. This casedocuments his first months in his newjob and lays out the early challenges. Avideo is available to accompany the caseseries ‘IMD-3-1334-V’.

Global; Food and beverage; Large; 2000Change managementSAPProject management


IMD-3-1335NESTLÉ’S GLOBE PROGRAM (B): JULYEXECUTIVE BOARD MEETING


This is the second of a three-case series(IMD-3-1334 to IMD-3-1336). This shortcase continues the GLOBE story and isintended as an in-class handout to beused during the discussion of the (A)case. It documents some of the GLOBE-related discussion at Nestlé’s July 2000Executive Board meeting, which raisesfresh issues for Chris. A video is availableto accompany the case series ‘IMD-3-1334-V’.

Global; Food and beverage; Large; 2000Change management


IMD-3-1336NESTLÉ’S GLOBE PROGRAM (C):‘GLOBE DAY’


This is the third of a three-case series(IMD-3-1334 to IMD-3-1336). This finalcase in the GLOBE series is set

approximately 18 months after the Bcase. The setting is a meeting of Nestle’smarket heads who are participating in adaylong event to bring them up to dateon the progress of GLOBE. The morninghas been difficult for Chris Johnson - fullof criticism - and the question is how heshould handle the afternoon. A video isavailable to accompany the case series‘IMD-3-1334-V’.

Global; Food and beverage; Large; 2001Change management

4 ppField research

9A99C034NIKE INC: DEVELOPING AN EFFECTIVEPUBLIC RELATIONS STRATEGY

Slaughter, KEEveratt, D

Richard Ivey School of Business

It had been almost a decade since thefirst article surfaced in the media allegingthat factories sub-contracted by Nike inChina and Indonesia were forcingworkers to work long hours for low pay,and for physically and verbally abusivemanagers. The article was the seed of amedia campaign that created a publicrelations nightmare for the company. Afinancial crisis in Asia and intensecompetition in the domestic marketcontributed to a decline in Nike’s revenueand market share after three years ofrecord performance. Though no directcorrelation could be proven between theconsumer’s negative perceptions of Nikeand the company’s decline in marketshare and stock, it certainly did not helpin their efforts to establish themselves asthe global leader in a hotly competitiveindustry. A linear overview of the adversepublicity that Nike received, and theperspectives of Nike seniormanagement, demonstrates to studentsthe importance and elements of thetimely development of an effectivemedia and consumer relations campaign.There is a simplified Chinese versionavailable ‘9A99CC34’. There is a Japaneseversion available ‘9A99CJ34’. There is aTaiwan-Traditional Chinese versionavailable ‘9A99CT34’.

US, China, Indonesia; Apparel and otherfinished products; Large; 1998

Consumer relationsCorporate responsibilityManagement philosophyPublic relations

24 ppField research8A99C34 (14 pp)

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

Manzoni, JFHughes, KBarsoux, JL

INSEAD

This case is a condensed version of thecase series ‘Redesigning Nissan (A) & (B)’(303-044-1 and 303-045-1). WhenRenault sent Carlos Ghosn to turnaroundits alliance partner Nissan, observerswere sceptical of his chances. Aftersoliciting recommendations from theemployees, he unveiled a three-year planinvolving plant closures, job cuts, and arefocus on design. Within two years, thecompany had achieved a dramaticrecovery, posting record profits andproposing a dazzling array of newmodels. Case (A) covers the dynamics oftaking charge and case (B) the process ofleading change. The combined andcondensed version is for instructorswishing to cover the material in a singlesession. The cases raise a number ofthemes to do with how an incomingleader establishes credibility, builds acase for painful change, gathers support,provides constant and consistentcommunication, sells growth as well ascuts, enforces accountability, measuresprogress, and sustains momentum forchange. The teaching note was writtenby J-F Manzoni and J-L Barsoux There is aFrench translation available (F303-046-1).**ecch European Case Awards CategoryWinner 2007**

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



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9-598-061NOTE ON MARKETING STRATEGY

Dolan, RJHarvard Business School Publishing

Describes the major elements ofmarketing strategy: the decisions to bemade and the underlying analysis tosupport that decision making.

Decision makingMarketing strategy

17 pp

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 ‘IMD-5-0358-ES’and aPortuguese translation ‘IMD-5-0358-PT’and a Russian translation ‘IMD-5-0358-RU’available.

Japan; Food and tobacco; 1987PricingCompetitionMarket positioning


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

Bartlett, CAHarvard Business School Publishing

Describes the development of theinternational strategies and organizationsof two major competitors in the globalconsumer electronics industry. Thehistory of both companies is traced andtheir changing strategic postures andorganizational capabilities aredocumented. Particular attention is givento the major restructuring each companyis forced to undertake as its competitiveposition is eroded. A rewritten version ofan earlier case.

Global, Europe, Japan; Electronicsindustry; Large, 270,000 employees, $40billion-$60 billion revenues; 1970-2001

CompetitionElectronicsInternational operationsMultinational corporationsOrganizational changeOrganizational structureStrategy implementation


IMD-1-0216PREPARING FOR THE GOOGLE IPO: AREVOLUTION IN THE MAKING?

Cossin, DConstantinou, D


In April 2004, Google announced that itwas launching its long awaited IPO (initialpublic offering). The case looks at theunconventional auction format of theIPO of the world’s most popular searchengine, the role of investment banks inthe IPO process, and the implications forcorporate governance and stockvaluation of a dual-class share structure.

USA; Web search engine; Value estimateUS$30-50 billion, revenues 2003 US$962million; Summer 2004

IPO (initial public offering)UnderpricingRole of investment banksOn-line IPO auctions

29 ppPublished sourcesIMD-1-0216-T (35 pp)

9-505-038PRODUCT TEAM CIALIS: GETTINGREADY TO MARKET

Ofek, EHarvard Business School Publishing

Lilly and ICOS are preparing for thelaunch of a new drug, Cialis, to competeagainst Viagra. To position against theincumbent firm Pfizer, which developedand markets Viagra, and othernewcomers into the erectile dysfunctionmarket, they must determine how bestto segment the market and which targetmarket to focus on. The marketing planshould take advantage of Cialis’medical

profile. In particular, they must payspecial attention to the communicationstrategy to patients, physicians, andpartners. The analysis, plan, and actionshould take into account extensivemarket research and recent competitivedevelopments. The teaching purpose isto determine the marketing strategy andplan for an entrant into a marketdominated by an incumbent firm with anexisting reputation and customer base.The product profile of the entrant hasnotable attribute differences fromexisting alternatives. The goal is tounderstand how to translate superiorityin product performance into superiorcommercial success. Includes colorexhibits.

Communication strategyCompetitionMarket researchMarket segmentationMarketing planningPharmaceuticalsProduct positioningTarget markets


505-098-1RED BULL: THE ANTI-BRAND BRAND

Kumar, NTavassoli, NLinguri, S


Founded in Austria in 1984, Red Bull wascredited with creating the energy drinkscategory. In 2004, the worldwide energydrinks category was worth 2.5 billioneuros and Red Bull commanded a 70%market share. Sold in over 100 markets,Red Bull was the market leader in theUSA as well as in 12 of the 13 WestEuropean markets where it was present.Central to Red Bull’s success was the useof word-of-mouth or ‘buzz’marketing.Through its sponsorship of youth cultureand extreme sports events, it developeda cult following among marketing-waryGeneration Y-ers, (18- to 29-year olds)who perceived it as an anti-brand. Whileit purported to be a sports drink, Red Bullwas mostly sold in clubs and bars as analcohol mixer, where its caffeine doseshelped revive clubbers into the earlymorning hours. By playing onassociations with energy, danger andyouth culture, Red Bull carefullycultivated its mystique, which earned it


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nicknames like ‘liquid cocaine’. Thecompany used additional non-traditionalmarketing techniques, such as consumereducation teams who drove aroundhanding out free cans of Red Bull tothose in need of energy, and studentbrand managers who promoted theproduct on university campuses. In 2004,Red Bull found itself at a crossroads,challenged with defending its marketshare. It faced a maturing market and anonslaught of competitive brands, someof them promoted by beverage industrygiants such as Coca-Cola and Pepsi,others as private labels by mass retailerssuch as Asda (part of Wal-Mart). Red Bullneeded to determine whether it wasoutgrowing its anti-establishment status.As a mature brand, it needed to assesswhether the time had come to transitionto a more traditional marketingapproach. But this raised a criticalquestion: would this move toward amore mainstream approachfundamentally destroy Red Bull’s anti-brand mystique?

Europe, USA; Energy drinks; 1.26 billioneuros sales; 1982-2004

Buzz marketingDistributionGrowthBrand buildingGuerilla marketingEnergy drinksIntegrated marketingcommunicationsAdvertisingProduct-life cycleNon-traditional marketing


195-001-5RETAILING IN TAIWAN: SUPPORTIVEINFORMATION FOR CARREFOUR INASIA (A) AND (B) Background note

Lasserre, PCourbon, P

INSEAD

The background note, Retailing inTaiwan, is intended to be used assupportive information for the Carrefourin Asia (A) and (B) cases (195-001-1 and195-002).

Taiwan; Distribution, Retailing,Hypermarkets

Asia PacificInternational strategy

Entry strategyMarketing in AsiaInternational servicesAsia Business


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


9-587-055ROHM AND HAAS (A): NEW PRODUCTMARKETING STRATEGY

Trissel, BLasley, S


Joan Macey, Rohm and Haas’MarketManager for Metalworking Fluid Biocides,found that sales of a new biocide, KathonMWX, was utterly disappointing. This wasall the more puzzling since sales of herother product - Kathon 886 MW, a liquidbiocide used only in large-capacity tanks

- was well on target and held a steady30% market share. In May 1984, aboutfive months after the new product waslaunched, Joan Macey was reviewing herentire marketing strategy with a view tobringing Kathon MWX sales closer totarget. Of particular concern to her werethe distribution and communicationstrategies used for the new product.

Philadelphia, PA; Chemicals; Fortune 500,$2 billion revenues; 1984

ChemicalsDistribution channelsMarketing strategyNew product marketing


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 thecompetitive arena in which Ryanairoperates and the company’s ownparticular mix of resources andoperations. This entails an assessment ofthe sustainability of Ryanair’s strategy,especially as it compares to its ownchosen role model, Southwest Airlines.Having developed an understanding ofRyanair’s situation, students should beable to develop future moves for thecompany. A video (399-122-3) andtransparencies (399-122-7) are availableto accompany the case. There is aSpanish translation available (E399-122-1). The supplementary teaching note waswritten by Hugh Macmillan and MahenTampoe. The case ‘Ryanair: The Low FaresAirline (B)’ (305-066-1) can be used as afollow on case. **ecch Irish Case WritingCompetition Category Winner 1999 andecch European Case Awards OverallWinner 2004**. This case was reviewed inECCHO. To read the review visitwww.ecch.com/casereviews.


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


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 andearly 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


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 andimplementation

2 pp8A94M03 (20 pp)

9A94M006SABENA BELGIAN WORLD AIRLINES:A DELEGATION OF CHEFS

Crossan, MPierce, B


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


2 pp8A94M03 (20 pp)

9A94M004SABENA BELGIAN WORLD AIRLINES:WEYTJENS’ FIRST ASSIGNMENT

Crossan, MPierce, B


The case provides an update on theevents subsequent to the (A) case,9A94M003. It outlines the strategicchanges implemented by PierreGodfroid, Sabena’s CEO, and introducesErik Weytjens, a recent graduate of anMBA program. This case outlinesWeytjens first assignment to solve amajor logistics problem in thedishwashing department. The case,along with 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.


8 pp8A94M03 (20 pp)

604-001-1SCHEDULING THE PROJECTACTIVITIES

Rama Krishna, SVeerendra Prasad, E


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 structuredto enable 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 intended


20

to be part of the project management oroperations management curriculum.

IndiaProject scheduleNetwork diagramsProject crashingLead timeProject activitiesNormal timeCritical path


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

Fournier, SThorp, S


A real estate operations and investmenttrust is considering whether it shouldpursue branding as a strategicinvestment. Through interpretation ofcase data and video from focus groups,students deduce the consumer(cognitive, psychological, and economic),environmental, and company factors thatare conducive to branding, therebyilluminating their understanding of whenit makes sense to brand. Analysis ofextensive survey data allows students toconsider the secondary question abouthow to brand as they formulate brand-positioning recommendations. Includescolor exhibits. May be used with: (9-500-054) ‘Selecting a New Name for SecurityCapital Pacific Trust’.

Englewood, CO; Real estate; 1,200employees, $300 million revenues; 1996-1997

Brand managementMarketing managementReal estateReal estate investmentService management

30 ppField research

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

has to 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


9-303-086SILVIO NAPOLI AT SCHINDLER INDIA(A)

Yoshino, MYFagan, PL


A young Italian MBA working for a Swissmultinational is sent to India to establisha subsidiary and implement the strategyhe prepared at headquarters as astrategic planner. This case focuses onthree core strategic decisions he mustmake as his plan is challenged by his localIndian management team andSchindler’s European plants supplyinghim. A rewritten version of an earlier case.

India; Elevator industry; 1998-1999Business policyCross cultural relationsInternational businessInternational marketingMultinational corporationsStrategy implementationSubsidiaries


IMD-5-0384SKF BEARINGS SERIES: MARKETORIENTATION THROUGH SERVICES(B) THE MISSION AND CUSTOMERSTRATEGY

Vandermerwe, STaishoff, M


Shortly after accepting the offer tobecome Chief Executive Officer of thenewly created SKF Bearings Services in1987, Goran Malm, long a proponent ofmarket driven change at SKF, defined hismission: ‘trouble free operations’. Ratherthan simply make and sell bearings,which SKF, the world’s largest bearingcompany, had excelled at, SKF BearingServices was to offer customers‘solutions’. Quickly selecting his key teammembers, Malm set about instituting amarket driven approach throughout hisdivision, which was responsible forhandling the vehicle and industrialaftermarket. Push through distributorsand pull through advertising and thecreation of ‘maintenance supportcentres’, which he called ‘service factories’,were key to implementing the changeprocess.This case is part of a series whichincludes (A) and (C) cases (IMD-5-0383and IMD-5-0385) and ‘SKF Bearings:Market Orientation Through Services’(IMD-5-0376). There is a Germantranslation available ‘D591-020-1’.

Sweden; Bearings; SFr 25.1 billion sales;1987-1989

Market driven changeServices and manufacturing


HR1ASOUTHWEST AIRLINES (A)

O’Reilly III, CAPfeffer, J

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 of


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strategy. Asks whether competitors cansuccessfully imitate the Southwestapproach. May be used with: (99307)Firing Up the Front Line.

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

Corporate strategyHuman resources managementOrganizational behaviorStrategy implementation

27 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 thatthe 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.

United States; Coffee; 60,000 employees,$3.3 billion revenues; 2002

BeveragesCustomer retentionCustomer serviceMarket researchProfitability


602-014-1SUPPLY CHAIN DESIGN AT JAGUAR:BRINGING ‘NIRVANA’TO HALEWOOD

Kumar, NVan Wassenhove, L

INSEAD

This case describes a complete, radicalthree-dimensional concurrentengineering design of the system for theBaby Jaguar production at Halewood(UK). It shows how product, supply chainand process design are integrated toprovide a lean solution. A companion

case ‘Jaguar Comes to Halewood: TheStory of a Turnaround’(602-013-1)focuses on the managerial, people andorganisational issues of the changeprocess. The teaching objectives include:(1) providing a holistic view on systemdesign (product, process, supply chain);and (2) understanding how thecomponents of the system need to fittogether in order to make a concept(high quality lean manufacturing) work.**EFMD European Case WritingCompetition Category Winner 2001**

United Kingdom; Cars; Large; 1998-2001Supply chain designConcurrent engineeringOutsourcingLean operations


589-005-1SWATCH

Pinson, CINSEAD

The case describes the development andinternational launch of Swatch, the newwatch concept that has revolutionisedthe watch industry and brought Swisswatchmaking out of a forty-year slump.The management of Swatch AG, asubsidiary of SMH, the world’s secondlargest watchmaking manufacturer, isconcerned about maintaining sales’growth and agreeing on long-terminternational strategy. While newcompetitors inspired by Swatch aremushrooming worldwide, Swatch,mainly through the initiative of itsAmerican subsidiary, has expanded into awide range of accessories and apparel.Swatch top management feels that thetime has come to review the veryconcept of Swatch, the consistency of itsinternational actions, as well as the long-term viability of past or proposedproduct line extensions. The casecontains rich and detailed marketresearch data on the varying needs andreactions of the different internationalconsumer segments. It allows a thoroughdiscussion of fashion-related preferencesand behaviour and their implications forproduct line building and renewal, salesforecasting, production and inventorymanagement, and required changes incorporate culture. A video ‘589-005-3’ isavailable to accompany the case, and anabridged version ‘503-124-3’of that video

is also available. A set of 39 slides (589-005-7) is available for use with this case.This case contains colour pages. Thereare French, Spanish and Italiantranslations of this case (F589-005-1)(E589-005-1) and (I589-005-1)respectively. **ecch European CaseAwards Overall Winner 1991 **

Europe, USA; Watches; 1986Marketing managementInternational marketingProduct lineDistributionAdvertisingConsumer behaviour


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



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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; 7 billion euro , 22,000employees; 2000-2002

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


IMD-5-0606TETRA PAK (C): IMPLEMENTING NEWINITIATIVES

Kashani, KShaner, J


This is the third of a four-case series (IMD-5-0604 to IMD-5-0607). The (C) casedescribes Tetra Pak’s decision toimplement the customer satisfactionsurvey among all its local operationsworldwide. The case also lists a numberof other initiatives to re-orient theorganisation towards its customers andimprove customer satisfaction. Amongthese initiatives are: customer win-backprogramme, key account management,employee satisfaction initiative, and

balanced scorecard. The over-ridingquestion is: Will all these initiatives helpredress the customer satisfactionproblem? 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 euro, 22,000employees; 2000-2002

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

5 ppField research

9-298-006THE ACQUISITION OFCONSOLIDATED RAIL CORPORATION(A)

Esty, BMillett, MM


On 15 October 1996, Virginia-based CSXand Pennsylvania-based ConsolidatedRail (Conrail), the first and third largestrailroads in the eastern United States,announced their intent to merge in afriendly deal worth $8.3 billion. This dealwas part of an industry-wide trendtoward consolidation and promised tochange the competitive dynamics of theEastern rail market. Students, asshareholders, must decide whether totender shares into the front-end of a two-tiered acquisition offer. To make thisdecision, they must value Conrail as anacquisition target and understand thestructure of CSX’s offer. May be used with:(9-298-095) The Acquisition ofConsolidated Rail Corporation (B).

United States; Railroad; 77,500employees, $19 billion revenues; 1996 to1997

AcquisitionsAuctionsCompetitive biddingCorporate controlDeregulationGame theoryMergersValuation


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 marketingMarketing strategyProduct introductionTools


9-198-117THE CLASSIC PEN CO.: DEVELOPINGAN ABC MODEL

Kaplan, RHarvard Business School Publishing

A simple numerical exercise, based onthe Cooper/Kaplan pen factory example,to illustrate the rationale for activity-based costing (ABC). Classic Pen hasdiversified from its core blue and blackpen business by introducing newspecialized colors. But costs have risenand margins on blue and black pens aredecreasing. The controller turns to ABCfor an explanation. Illustrates applicationof ABC.

Activity based costingCost accountingCost analysisManagement accountingOverhead costs

4 ppGeneralised experience5-199-029 (5 pp)


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

Chan Kim, WMauborgne, RBensaou, BWilliamson, M

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 ofother 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)the value innovation logic (as comparedto industry and competitive analysis); (2)the concept 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


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 thestructure of its industry. Financially, it hadachieved the highest returns on capitalemployed of all major oil companies andwas earning profits in excess of a billiondollars every month. This case describeshow this remarkable transformation wasachieved through fundamental changesin the company’s organisationalstructure, management processes andleadership philosophy. The case endswith a description of the challengesbeing faced by the company at the endof 2001, 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** This case was

reviewed in ECCHO. To read the reviewvisit www.ecch.com/casereviews.

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

Managing changeOrganisation designLeadershipSocial responsibility of businesses

28 ppField research

9-287-058THE WALT DISNEY COMPANY’S YENFINANCING

Allen, WKester, WC


Walt Disney is considering hedgingfuture yen inflows from Disney Tokyo. It isevaluating techniques using FXForwards, swaps, and Yen termborrowings. Goldman Sachs presents arather unusual but potentially attractivesolution: Disney could issue ECUEurobonds and swap into a Yen liability.The case explains how this alternativewould work and suggests to the studentsways to evaluate the hedging choices.

United States; Consumer, entertainment;Large, $1.7 billion sales; 1985

BondsCapital marketsCurrencyHedgingInternational finance


9-501-038TIVO

Wathieu, LZoglio, M


TiVo is a digital video recorder that allowsviewers to watch what they want, whenthey want to watch it. Fourteen monthsinto the launch, sales are verydisappointing. Brodie Keast, VP ofmarketing and sales, wants to combine acatchy communications campaign,product bundling with satellite televisionreceivers, aggressive pricing, and salessupport, in order to boost demand forthe new category. One important goal isto position TiVo as a strong brand before


24

the entry of big player Microsoft. TiVo isconfronted with the difficulty of selling anew and complex electronics productthat is meant to change consumer habitsradically. Moreover, the impact of TiVo onthe television and advertising industriesis ambiguous, and TiVo needs todemonstrate that it can play aconstructive role in the future medialandscape. May be used with: (9-502-062)TiVo in 2002: Consumer Behavior.

San Jose, CA; Television; 181 employees,$200,000 revenues; 2000

AdvertisingConsumer behaviorMarketing planningNew product marketing


9-502-062TIVO IN 2002: CONSUMER BEHAVIOR

Wathieu, LZoglio, M


Brodie Keast is anxious to understand thesharp contrast between the inertia ofprospects and the deep emotionalresponse shown by converted users ofTiVo. After an overview of the company’ssituation and problems, the case focuseson different kinds of data (sales results,satisfaction and usage data, purchaseinfluence, demographics, attitude data,and behavioral data) and explains howthat data emerged over time as thecompany was more and more pressuredto explore the essence of its valueproposition. The teaching purpose is toexamine the role of consumer control inconsumption, understand products that(change your life), choose researchmethods that match the type of insightssought, and explore the relationshipbetween consumer knowledge andmanagerial action.

San Jose, CA; Television; $19 millionrevenues, 265 employees; 2002

AdvertisingConsumer behaviorMarketing planningNew product marketing


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

Mishina, KHarvard Business School Publishing

On 1 May, 1992, Doug Friesen, Managerof assembly 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 and

automatically 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 pendingentry of another major discount chain,Tweeter is forced to question howeffective APP will be in a marketincreasingly dominated by large discountretailers. 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.


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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. A media supportCD-ROM ‘504-099-9’ is available toaccompany the teaching note. TwoPowerPoint presentations (in PDF format)‘504-009-9A’and ‘504-009-9B’areavailable to accompany the teachingnote. **EFMD Case of the Year AwardCategory Winner 2004 and ecchEuropean Case Awards Category Winner2007**

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

MarketingBrandingLow-income consumersPovertyNew product introductionBreak-even analysisAdvertisingPricing

23 ppField research504-009-8 (32 pp)504-009-9A (21 pp)504-009-9B (41 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 services

management. There is a Frenchtranslation available (F595-023-1). Thiscase contains colour exhibits. **ecchEuropean Case Awards Overall Winner1996** This case was reviewed in ECCHO.To read the review visitwww.ecch.com/casereviews.

UK, international; Airlines; 1994MarketingServicesValueDeliveryEntrepreneurshipPublic relationsLeadershipPricing


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

McGovern, GJHarvard 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


9-498-045WOLFGANG 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


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, operatingout of La Coruna in north-west Spain, wasthe only retailer that could delivergarments to its 507 stores in 33 countriesin just fifteen days after they weredesigned. Its unique systems for productdesign, order administration, production,distribution and retailing were behindthis astonishing capability. Itsunconventional approach providesinteresting opportunities for discussionand learning. The case is quite popularwith executives, MBA’s andundergraduate business students. It canbe used in a remarkably wide range ofcourses - from a core operationsmanagement course to electives focusedon international operations, operationsstrategy, global logistics, distribution,retailing, as well as in specialized andgeneral executive programmes. Theteaching note includes severalphotographs from Zara’s operations in LaCoruna, and the appendices are availableas PowerPoint files as the teaching notesupplement ‘603-002-9’. This case was thewinner of the 2003 Indiana UniversityCenter for International Business


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Education and Research (CIBER)-sponsored Production and OperationsManagement Society (POMS)International Case Competition. ASpanish translation is available (E603-002-1). **ecch European Case AwardsCategory Winner 2005** This case wasreviewed in ECCHO. To read the reviewvisit www.ecch.com/casereviews.

Spain and global; Fashion apparel; Largemultinational; 2002

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

15 ppField research603-002-8 (21 pp)603-002-9 (s/w)

9-703-497ZARA: FAST FASHION

Ghemawat, PNueno, JL


Focuses on Inditex, an apparel retailerfrom Spain, which has set up anextremely quick response system for itsZARA chain. Instead of predictingmonths before a season starts whatwomen will want to wear, ZARA observeswhat’s selling and what’s not andcontinuously adjusts what it producesand merchandises on that basis. Poweredby ZARA’s success, Inditex has expandedinto 39 countries, making it one of themost global retailers in the world. But in2002, it faces important questionsconcerning its future growth.

Spain, Global; Fashion industry; 26,724employees, 3,250 million eurodollarsrevenues; 2002

Competitive advantageGlobalizationMarket selectionSupply chainTime based competitionVertical integration


9-604-081ZARA: IT FOR FAST FASHION

McAfee, APSjoman, ADessain, V


In 2003, Zara’s chief information officer(CIO) must decide whether to upgradethe retailer’s information technology (IT)infrastructure and capabilities. At thetime of the case, the company relies onan out-of-date operating system for itsstore terminals and has no full-timenetwork in place across stores. Despitethese limitations, however, Zara’s parentcompany, Inditex, has built anextraordinarily well-performing valuechain that is by far the most responsive inthe industry. The case describes this valuechain, concentrating on its operationsand IT infrastructure.

Spain; Apparel, retail industry; 32,000employees, US$4 billion revenues; 2003

Computer networksInformation systemsInformation technologyOperations managementProductionSupply chainVertical integration



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