Case studies

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.

Whole Foods and Wild Oats were both natural- and organic-food stores that competed for similar customers on values such as high-quality and healthy products, excellent customer service, knowledge of products, and an enjoyable shopping experience. In February 2007, Whole Foods announced that it would purchase a smaller but formidable competitor, Wild Oats. There was tremendous geographic complementarity involved: The merger would give Whole Foods the largest footprint within the natural- and organic-grocery industry in North America.

Implementing a sustainability strategy requires firms to consider economic, strategic, environmental, and community perspectives. Suitable for MBA, undergraduate, and executive learners, this sustainability case covers innovation, intrapreneurship, and strategy. A technical note entitled, “Corporate Greenhouse Accounting: Carbon Footprint Analysis” (UVA-ENT-0113) is an effective complement. Frito-Lay’s Arizona facility pilots a program to take its snack chip manufacturing off the grid. Decision makers discuss operating, financial, marketing, and corporate strategy as the facility calculates its carbon footprint, converts to non-fossil-fuel energy sources, and stops relying on the scarce local water supply.

Suitable for MBA and executive learners, this case series presents a narrative that prompts students to discuss entrepreneurial thinking. An entrepreneur who loves his native Swedish Lapland uses his natural gift for effectuation to ask What? What next? And What now? As his ventures evolve, students will wonder how they would master similar challenges to their own entrepreneurial plans and expectations. The case can be taught in either one or two sessions of a 90-minute MBA course or a four-hour executive education class.

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.

Most talented executives can recognize when an acquisition has strategic or financial benefits, and in this case, the decision to be acquired was an appropriate exit strategy for a successful start-up. Peter Street’s start-up had been growing quickly and was building a reputation for reliability in a booming industry when a Japanese firm offered to pay a premium for the U.S. firm. Having done business in Japan (and extensively with the acquiring company) before the sale of his company, Street entered the acquisition with enthusiasm. As part of the deal, Street’s former company would continue to operate in the United States as a division of its parent company and Street would remain as CEO. A few months into the transition, however, Street discovered a huge difference between working with and working for the Japanese firm. Cultural norms for confronting seemingly small problems quickly became bigger operational issues, and Street experienced a growing dichotomy between corporate (in Japan) and his division (in the United States). This case focuses on the challenges of implementing a cross-border acquisition.

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 September 2015, VW had admitted to United States regulators that it had deliberately installed “defeat devices” in many of its diesel cars, which enabled the cars to cheat on federal and state emissions tests, making them able to pass the tests and hit ambitious mileage and performance targets while actually emitting up to 40 times more hazardous gases into the atmosphere than legally allowed. The discovery had prompted the U.S. Environmental Protection Agency (EPA) to halt final certification of VW’s 2016 diesel models, and VW itself had halted sales of its 2015 models. As fallout from the defeat devices developed, VW posted its first quarterly loss in more than 15 years, and its stock plummeted. Top executives were replaced, and VW abandoned its goal of becoming the world’s largest automaker. Stakeholders around the world had been asking since the scandal broke: “How could this have happened at Volkswagen?”

At three o'clock in the morning on September 10, 2001, Thierry Hautillac, a risk arbitrageur, learns of the final agreement between Pinault-Printemps-Redoute SA (“PPR”) and LVMH Moët Hennessy Louis Vuitton SA (“LVMH”). After a contest for control of Gucci lasting over two years, PPR has emerged as the winner. PPR and LVMH have agreed for PPR to buy about half of LVMH's stock in Gucci for $94 per share, for Gucci to pay an extraordinary dividend of $7 per share, and for PPR to give a two and a half year put option with a strike price of $101.50 to the public shareholders in Gucci. The primary task for the student in this case is to recommend a course of action for Hautillac: should he sell his 2% holding of Gucci shares when the market opens, continue to hold his shares, or buy more shares? The student must estimate the risky arbitrage returns from each of these choices. As a basis for this decision, the student must value the terms of payment and consider what the Gucci stock price will do upon the market's open. The student must determine the intrinsic value of Gucci using a DCF model as well as information on peer firms and transactions. The student must consider potential synergies between Gucci and PPR and between Gucci and LVMH. The student must assess the likelihood of a higher bid, using analysis of price changes at earlier events in the contest for clues.

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.