Case studies

This case present the dilemma of an employee who, having been terminated in a manner he deems is unfair, has to decide whether to cash or return a $2,500 check wrongfully sent him by his former employer.

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.

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.

Gender in the workplace. Is it still an issue? While it is increasingly easier in the early 21st century for women to work, manage, and take positions of high responsibility in American business, some issues and difficulties still remain. This series of vignettes touches on some difficult situations—for both women and men—involving sexual and romantic relationships in the workplace, decisions on whether to start a family, dress codes, family obligations, and sexual harassment.

The Greenland case describes the experience of four young Norwegian men determined to set a world record for unsupported crossing of Greenland. The case describes the team, their preparations, and their experiences as they crossed in “good” weather that was often whiteout blizzard conditions with temperatures dropping as low as −78 degrees F. Throughout the case, one of the team members reflects on things he learned about himself, about the team, and about leadership from the experience (recorded in italics). The teaching note (available to registered faculty) is supplemented by a PowerPoint presentation that helps introduce the expedition to Greenland, other “risky recreation,” and the concepts related to resonance or flow. A video supplement is also available. The case lends itself to a profound discussion of leadership on its own and leads in nicely to a discussion of world-class performance and the purpose of life, which both startles and pleasantly surprises most students and participants.

With so many team-driven activities for students in the fast-paced, high-pressure environment of a business school, students need to have an opportunity to discuss the issues and dilemmas that may arise. Harry's difficulties in mastering finance cause some members of the team to feel frustrated, because they have to spend so much time helping him. When the members pressure the others to spend less time with Harry, other problems arise in the team dynamics, involving such issues as trust, participation, team performance, and quality of learning. Students need to explore alternative ways to improve the situation.

Supply chain network design choices and the challenges in implementing and understanding how alternatives influence firm performance are key management skills that can be applied to the case of a global company, Kulicke and Soffa Industries, Inc. (K&S), and its expansion strategy. Suitable for the MBA, EMBA, GMBA, and executive education programs, the case explores the decision to expand the company's tool bonding capacity in order to manage its growth. The question becomes whether to grow current operations in Yokneam Israel or seek alternative sites. And if it was decided to seek a location outside of Israel, where exactly should the company go?

Marissa Mayer has been asked to think about factors that were impacting Google's ability to innovate and adjust its strategy so that the organization could remain one of the world's foremost leaders in technology. In an industry (and at a company) that was changing and growing exponentially, it would be difficult to pinpoint specific variables and trends. But Mayer knew that one element crucial to Google's ongoing success would be its ability to recruit the best talent available and foster an environment that would encourage that talent to generate the best ideas. As Mayer contemplated how to ensure this, she considered that women currently represented only a small fraction of Google's engineers, suggesting a missed opportunity.

This case requires a decision on the possible consolidation of three Midwest business-travel centers. Significant cost savings in service representatives can be achieved by combining the front-end (booking) operations. The sensitivity of cost to service-productivity levels and customer waiting time is also explored. This case and related materials can be used as part of the Workforce Planning Module.

“Hey that was my idea!” How often have your students had that exact thought? Were they on a team when they felt most able to identify with that statement? This case is about a recent MBA graduate who faces challenges within her consulting team on her first post-graduation job. She is frustrated with one teammate in particular who she believes practices self-interest politics–he takes her ideas. The case allows for a healthy discussion on team dynamics and strategies to help students when the team mix is wrong. The case may also be used to discuss issues regarding women in business.

This case is used in Darden's first-year core operations class as part of a module on supply chain management. The Musictoday company provided online retailing services for such clients as the Dave Matthews Band and the Rolling Stones. But the lack of a formal inventory-management process had Musictoday concerned about future stockouts that would result in lost sales. This case covers the basics of safety stock within the context of a periodic review system. It introduces students to the periodic review system and provides them with an opportunity to link the optimal review period with the EOQ concept.

Whoosh, is that all there is? On the eve of becoming a partner at a well-known consulting firm (“the stuff MBA dreams are made of”), a senior executive starts to question what he is doing with his life. Walt Shill had graduated eight years earlier from the Darden Graduate School of Business Administration at the University of Virginia and had worked his way up at McKinsey Consulting to become the first American partner in the Japanese office. Shill and his family move back to the United States, where he starts to question his goals. For the first time, it seems that Shill has no target to aim for. Having had reached his goals, Shill sets out on an adventure to seek his own meaning of life. He gets into good-enough shape to take a cross-country bicycle ride, which he completes. This undisguised case tells Shill's story and what he learned along the way. It ends with Shill's promise to himself to be less judgmental and to start walking through life with eyes wide open. A teaching note is available to registered faculty.

What happens when personal values and beliefs conflict with business decisions? This case, suitable for MBA, undergraduate, and executive learners, prompts engaging discussion of this issue. Oliver Sparling was a highly successful senior analyst at AFI International, a top consulting firm in Chicago with an open and tolerant workplace. He was also a gay man who had lived happily with his partner for over 10 years. Sparling encounters trouble, however, when one of the firm's clients, Bible Books, Inc., takes exception to his “inappropriate” openness about his sexuality (including wearing his commitment band). Sparling's boss calls him into the office and asks him to tone it down when he's at Bible Books, Inc. “These are not easy economic times,” said the boss. “And this project is a big one for us. Basically, you're doing the company a favor if you lay low, and once the project is finished, it will be like it never happened. Besides, you know that you don't have anything to hide while you're at home here in Chicago. This is just for when you are in Birmingham.” Sparling must decide what course of action to take.

Our Daily Bread was a small boutique bakery producing a variety of daily and specialty breads. The company had excess capacity and was considering several options to increase revenues by entering the wholesale bread production business. The case allows students to perform process analysis in a multiproduct setting with seasonal demand and evaluate the impact on capacity, as well as the profitability of, potential wholesale orders. The case also enables analysis of the option to purchase new equipment. A teaching note and video supplement (OM-1018V) are available to registered faculty. The videos highlight the stages in bread making and provide a bird's-eye view of the entire operation. VIEW DEMO

This case examines the opportunity for the Quaker-Tropicana-Gatorade (QTG) division of PepsiCo to invest in either or both of two small but fast-growing retail channels: the Dollar Channel and the Natural Foods Channel. The case gives an overview of PepsiCo's business strategy, focusing on health, wellness, and diversity and also provides a wide range of information. Students are challenged to take a broad, general management view in developing their recommendations.

This case was designed to build expertise in conflict management and assertiveness by allowing students to practice saying what needs to be said in challenging situations. Grounded in the pedagogy of experiential learning, the case consists of three role-play scenarios that exemplify three challenging business situations. In each scenario, two individuals are faced with a possible difference in perspective or goals. The role-play requires students to assume the role of one of the individuals, and each scenario requires another student to initiate the discussion.

Alan Silko must decide whether to invest in seven statistical-process-control (SPC) stations in order to increase his chances of becoming a “select supplier” for a large computer company. The student must do a discounted-cash-flow/decision-tree analysis of the option. The student is also given the opportunity to construct x-bar and range charts and to do an SPC analysis.

This case details the history of Southwest Airlines from its inception in 1971 until 2004. The case provides details of Southwest's business model and reasons for its success. It ends with a description of the company's competitive pressures in 2004. The case can be used for a course in service operations or strategy.

Can the return of its founding CEO turn a lagging Starbucks around? Howard Shultz must map a strategy that addresses the company's decreasing sales and perhaps too rapid growth. Had the previous CEO's efforts to streamline operations compromised the Starbucks experience or was a changing economy to blame? Schultz considers whether to close existing stores, slow U.S. growth while expanding overseas, and improve the customer experience, which he believed had eroded the company's value proposition.

The airline passenger industry in India was a mess in 2013, but the low-cost carrier IndiGo was making money. This relatively new company had managed to work against the odds and grab market share from longer-established flyers. Still, the weak rupee, depreciated by 15%, was sending a chill wind through the aviation sector, and growth plans would have to include opening new destinations. This meant hiring more employees, opening more ticketing stations, and increasing costs. Could the airline continue its climb, or would it be prudent to prepare for a hard landing?

This case outlines the history of JetBlue Airways from its inception in 2000 until 2004. The case provides details of JetBlue's business model and reasons for success. It can be used in a course on service operations or strategy.

The manager of a meatpacking factory allows his 100-plus Muslim workers to take breaks believing that it is an appropriate response to the religious needs of this large part of his employee base. But the breaks have begun to interfere with the overall operation of the plant, resulting in a loss of productivity. Other employees have become irritated resenting what they see as preferential treatment. Because of the productivity issues, other employees' complaints, and concerns about the credibility of his management, the manager considers reneging on his agreement.

“What kind of culture does Walt Disney Company (WDC) want to create? This case uses the experiences of a young visitor to one of WDC's resort hotels to set the stage for an analysis of selecting, hiring, training, and retaining and how those practices are governed by the culture of a large American company. The situation provides an opportunity to explore human resource policies, organizational design as well as how all those elements reinforce the culture.

The case opens with an interaction between a young Animal Kingdom Lodge guest and an employee (or cast member as the company refers to employees). There were many different ways the exchange could have unfolded yet the experience was magical for the youngster. What made this exchange a memorable experience for this young guest? Would Walt Disney have been surprised?”

This disguised case examines the issue of outsourcing to a low-cost country based on a thorough analysis of competitive cost drivers. The case demonstrates that labor cost is only one potential advantage and that transportation cost and other factors could more than offset labor savings in some product lines.

A toy retailer plans to order a new product from an untested supplier for the winter holiday season. This exercise provides an opportunity for students to construct a model to determine optimal order quantity when demand is not known. Profits are calculated based on wholesale pricing, revenue-sharing, profit-sharing, and buyback contracts.

This case introduces a framework for cost modeling. Two data sets (one for injection-molded plastic parts and another for compressors) allow students to apply the cost-driver framework in conjunction with basic spreadsheet and regression analyses. Although obviously applicable in a course on supply chain management, the case can also be used to teach competitive cost analysis for strategic decision making.

The strategic and tactical problems of managing the operations function in a service environment can be examined through the context of the Walt Disney Company (DIS) opening Shanghai Disneyland. The company and its investors were excited about the Shanghai opening for a good reason: demographics. The resort would be located in the Pudong district of Shanghai, easily the wealthiest of all of China’s districts. A massive 330 million people lived with a three-hour driving radius of the resort site, compared with 19.6 million who lived within the same radius at DIS’s most profitable park, Walt Disney World in Orlando, Florida. Still, risks remained. Construction complications had delayed the opening almost a year longer than expected and cost overruns and alterations had increased the final price tag of the project. The Chinese economy had also hit a rough patch following the Chinese stock market slump in the summer of 2015. With the world watching, could the classic Disney theme park experience be delivered with the right cultural balance to appeal to its largely Chinese customers? Could DIS get it right?

Pancho’s Burritos is a high-end fast-food restaurant located in Charlottesville, Virginia. Due to a recent surge in customers, the lines at the restaurant during peak hours are becoming very long and causing excessive customer waiting. To improve current customer wait times and plan for future growth requirements, Francisco “Pancho” Escoba, the proprietor, wants to get a better understanding of the current operational capacity. The key decision Escoba must make is how to redesign his burrito-making process to increase the capacity and reduce customer wait time.

Suitable for an undergraduate or MBA course, the case can be used in an introductory operations course to teach capacity analysis and queuing. The case provides a relatable and understandable setting for students without an operations background to gain a better grasp of basic course concepts and illustrates how interactions between capacity and queuing affect one another. As an exam or review case it works well because it contains standard process calculations that all students should know how to perform.

Hasn’t everyone at some point felt as if the universe was conspiring against his or her success? This case narrative tracks the story of Emmett Taylor, an operations manager for a bottling company, as a snow and ice storm bears down on his southeastern U.S. plant. Taylor is already plagued by stress caused by all facets of his life-family, work, and personal health-and this storm is no exception. The story offers an opportunity to discuss time, energy, and priority management; individual behavior from a type-A personality; work-life balance; organizational behavior; and leadership. This case is a suitable substitution for the classic best-selling Darden case “John Wolford” (UVA-OB-0167).

In an effort to save his business, Paul Marciano, the owner of Italian family restaurant Maria’s Ristorante, runs a number of experiments focused on improving the customer experience around his target customer segment. These experiments lead to a better understanding about his business and cause him to make specific changes to his business model that ultimately improve things across the board. The experiments are based on research from the academic literature on the use of behavioral variables to manage customer perceptions.

This case examines the queueing issues caused by the growth in popularity of one of the most visited Hindu temples in the world. On January 2, 2015, Ramesh and Vasantha Gupta visit Tirumala Venkateswara Temple, just a day after some 210,000 people crowded the 2,000-year-old site. The case describes the many enhancements that the temple administrator, Tirumala Tirupati Devasthanams (TTD), has implemented since its management of the temple complex began in 1932. The soaring popularity of the temple, however, has led to safety and comfort concerns for pilgrims. While challenging students to consider additional improvements that might benefit pilgrim throughput rate and time in the temple system, the case highlights the tension TTD must manage between maximizing efficiency and maintaining religious traditions. Additionally, the case demonstrates the importance of perceived waiting times in the management of queues.

This case is an updated version of “Netflix Inc.: DVD Wars” (UVA-M-0763), and was written as a replacement for it.

A financial analyst is asked to appraise the value of Netflix’s stock at a time of unprecedented turmoil for the company. This case introduces customer lifetime value (CLV) as a useful metric for subscription-based businesses.

A 2010 MBA graduate explored her options for full-time employment. She found Ethical Business Company (EBC) and was instantly intrigued. Not only did the company consult on many of the ethical issues that were important to her, but it also had a flat organizational structure. Although it was a riskier choice than going with a larger and more established firm, she was excited about being able to use her skills in direct interaction with clients and senior executives, rather than having them hidden beneath multiple layers of hierarchy. But after three weeks at EBC, she wonders if a flat structure is right for all companies and all employees or if there are certain companies and people who fit better in the hierarchy more than others.

Microsoft employs 90,000 people and its products affect millions of users around the world every day. Developing the next version of Windows or Office is easy for Microsoft, but the company has struggled when it comes to more radical innovation. Intense competition from Google, Apple, and others threatens a business model that has delivered tremendous success over 25 years. This case highlights the strategic challenges facing Microsoft and provides insights into the organizational, leadership, and operational issues that must be addressed in order to define a successful innovation strategy at one of the world's most well-known companies.

David Walker, a senior attorney in a busy white-shoe law practice is involved in an in-office dispute between his administrative assistant and a respected colleague. He had spent numerous hours listening to both sides tell their stories and has no answers. How was he ever going to help two people he valued greatly work out a compromise between their extremely polar positions? The case provides opportunities to explore the sources of interpersonal conflict, causes of escalation, and ways of diffusing and resolving it.

This case presents the dilemma of a multinational oil and gas company, ExxonMobil, as it factors in the ethical issues related to the environment and cultural differences in deciding whether to proceed with building a pipeline in Chad and Cameroon, two of the poorest and most corrupt developing countries in West Africa. The many players in this project included the World Bank--which cofinanced the project and put restrictions into place that would hopefully prevent pipeline-related government corruption in both Chad and Cameroon--and many environmental and human rights groups that warned of potential disaster. The case also covers the environmental and social analysis of the areas that would be affected by the pipeline.