Case studies

This case could be used in entrepreneurship, strategy, and small-business courses. It presents classic issues regarding successful start-ups such as how to choose from a multitude of growth opportunities; how to pace growth so as not to dilute quality control and financial risk tolerance; and how to choose a strategic focus.

This case describes the evolution of an entrepreneur's venture-capital fund-raising from seed-stage financing through later-round efforts. The case focuses on where the “action” is in venture finance: the exploitation of social capital by an entrepreneur and investors. Much of the teaching materials on venture finance focus on the economics of financing; while these materials provide useful information about the mechanics of valuation and how to structure venture-capital agreements, they miss the social side of venture-capital investing. The case illustrates the theoretical concept that social capital (i.e., a person's relationship to other people in society) influences venture finance. The case can be used in a class on entrepreneurship or venture finance.

The business-travel department of American Express is facing rapid growth in demand but is plagued with overstaffing in some offices because of the broad distribution of client demand. Management's challenge is to reduce costs in local offices while maintaining a high level of service. One alternative under consideration is a centralized regional business-travel center to handle reservation functions for up to 20 other Amexco offices. This case gives students the opportunity to apply queuing theory to a practical situation. Normally, in order to facilitate the numerous calculations required, it is used with the UVA “QUEUE” program.

The owner/editor of the small Davis Press encounters a dilemma when she is given the opportunity to publish a novel set in the Islamic holy city of Mecca. Given the events of the last 16 years—the angry fallout after Salman Rushdie's novel The Satanic Verses, the continuing Iraq War, and the recent controversy of Koran desecration at the U.S. Naval Station Guantanamo Bay—publishing the novel presents a host of various ethical dilemmas, including whether she should put her staff at risk. This case discusses the ethics of a free press and challenges the profit motive in the face of jeopardizing political and religious world affairs.

Lewis Byrd, a partner in the private equity firm Opportunity Capital Partners, is managing a number of interconnected issues. First, in his role as investment professional responsible for the firm's investment in a doghouse manufacturing company called Dogloo, he has to manage a relationship with an entrepreneur who has behaved in a way that has made coinvestors nervous about his skills as a CEO. The CEO, Aurelio Barretto, is a Cuban immigrant who has established a close confiding relationship with Byrd, who is an African American. Barretto has increasingly relied on Byrd to run interference for him with investors, while also providing the strategic advice that typically supports an investor-entrepreneur relationship. Another issue is that there is a potentially costly lawsuit looming involving copyright infringement by a larger, well-funded competitor in the pet products market. Byrd has to manage potentially volatile relationships while determining what's best for his firm from an investment standpoint and how best to advise Barretto to proceed. The case provides insights into the challenges in private equity investing that occur after the striking of the financial deal. The case also provides information for students about the technical and legal structure of private equity financing.

This case explores the decision of a fast-growing company to expand its distribution network. Financial information is provided in it so students can understand the basic distribution network design covering inbound transportation, outbound transportation, distribution-center operations, and inventory.

This case is used in Darden's Supply-Chain Operations elective. The field-based case gives supply-chain educators the ability to teach the newsvendor model with pricing under a capacity constraint using real-life decisions. By 2005, Eastman Chemical Company, based in Tennessee, had created a new specialty plastic, Tritan, which demonstrated heat resistance and durability properties that might allow Eastman to compete in the lucrative polycarbonate plastics market. Development of this product was a major breakthrough for both Eastman and the broader chemical industry. The Eastman specialty plastics team had to contend with numerous challenges, however, before producing Tritan at full scale. First, Eastman had to commercialize a completely new material that only had been produced in the lab; second, the team had to develop a supply chain to manufacture a new component (monomer) and a new product (polymer) simultaneously; and finally, it had to analyze market entrance options given capacity constraints. Thus, the specialty plastics team faced several dilemmas: who should the initial launch partners be, given Eastman's limited manufacturing capacity, and how aggressively should Eastman price Tritan, given that price would drive demand in the launch markets and in new markets?

This case examines a set of expansion options for a successful Internet luggage retailer, with a particular emphasis on the operational complexities.

The consumer-products division of a multinational company is facing a decision on the sourcing of product components: whether to stay in Taiwan or switch to Mexico. See also the supplement to this case, “Cost Analysis for Sourcing Alternatives for Emerson Electric Company ACP Division” (OM-0823).

Richard Alpert, senior partner at Evergreen Investments, must decide which of his two best employees to promote to the position of managing VP. He had initially preferred Charlie Pace over Daniel Faraday, but that decision had become less clear-cut when Alpert inadvertently overheard an office conversation and learned that Pace was taking Adderall, a stimulant primarily prescribed for people suffering from attention deficit/hyperactivity disorder (ADHD). Pace did not have ADHD and apparently obtained the medication by deceiving a physician. Alpert is faced with a number of questions, including whether it was fair to Faraday—or any other high-performing employee—to be passed over for promotion in favor of someone who illicitly boosted his performance with a substance he did not medically need.