Case studies
Teaching cases offers students the opportunity to explore real world challenges in the classroom environment, allowing them to test their assumptions and decision-making skills before taking their knowledge into the workplace.
Arpita Agnihotri and Saurabh Bhattacharya
Case explains how female leaders are more concerned about social issues the industry in which they operate could resolve. Obo-Nia, CEO of Vodafone Ghana, showed concern for…
Abstract
Social implications
Case explains how female leaders are more concerned about social issues the industry in which they operate could resolve. Obo-Nia, CEO of Vodafone Ghana, showed concern for resolving the digital divide in Africa and offered a collaborative solution. The case also suggests how female CEOs invest in strategic corporate social responsibility (CSR) that could create a competitive advantage for firms. The case also discusses gender diversity issues in the science, technology, engineering and math (STEM) field and how Vodafone Ghana’s CEO tried to enhance gender diversity in the telecommunication sector and Vodafone. Obo-Nai did not emphasize gender diversity from a CSR perspective but believed in a business case for gender diversity, as an increase in participation of women in the STEM workforce could help the telecommunication sector innovate faster and resolve the digital divide challenge while also empowering women working from the informal sector.
Learning outcomes
What is the significance of a digital divide and the societal role of the telecommunication sector; Why female CEOs are more concerned about CSR and how CSR makes not charity but business case; Why female CEOs are more inclined toward collaborative strategies and how stakeholders are involved in collaborative strategies for reducing the digital divide; Exploring various strategies for enhancing gender diversity in the STEM field and the significance of gender diversity in the STEM field.
Case overview/synopsis
The case is about the challenges faced by Patricia Obo-Nai, the first female CEO of Vodafone Ghana, to bridge the digital divide in Africa while doing so in a profitable manner. Obo-Nai was an engineer by profession and won several awards as she rose to the post of CEO in Vodafone Ghana in 2019. During the COVID-19 pandemic, she took several corporate social responsibility (CSR) initiatives, such as making internet service freely available in certain schools and universities so that education could continue. Obo-Nai also emphasized gender diversity within Vodafone and urged other telecommunication players to focus on gender diversity from a social responsibility perspective because it was essential for innovation. Under Obo-Nai’s leadership, Vodafone itself launched several new products. She called for a multistakeholder collaborative approach to bridge the digital divide and to make 4G internet affordable in Africa. Obo-Nai collaborated with competitors like MTN Ghana to enhance Vodafone Ghana’s roaming services.
Complexity academic level
This case is intended for undergraduate or graduate-level business and management courses, especially international business and society, CSR and leadership courses. Graduate students in public policy may also find the case compelling.
Supplementary materials
Teaching notes are available for educators only.
Subject codes
CCS5: International Business; CCS10: Public Sector Management
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Keywords
MBA/MS/Executive Training.
Abstract
Study level/applicability
MBA/MS/Executive Training.
Subject area
Business and society; sustainability; women business leaders.
Case overview
This case is about the development of sustainable viticulture in Israel. Michal Akerman, a viticulturist and agronomist, implemented out-of-the box ideas at Tabor Winery, Israel, and was successful in developing organic and sustainable vineyard. However, she faced challenges in terms of improving the quality of grapes as she looked forward to growing some of the best quality French grapes in Israel in the challenging conditions of the Negev desert region.
Expected learning outcomes
The expected learning outcomes are: to analyze the environmental impact of viticulture and sustainable viticulture through Tabor’s example, to examine how leaders can drive businesses to be involved in sustainable practices and challenges involved in implementing sustainable practices and to develop a framework for female leaders working in male-dominated business environments.
Social implications
This case captures Michal Akerman’s (Michal) endeavours to develop organic and sustainable viticulture at Israel-based Tabor Winery. The traditional practices followed to grow the vineyards were proving adverse to the biodiversity. Unsustainable practices wiped out rare plants, and micro-organisms, which were essential for cultivation of grapes. The imbalance and unnatural ecosystem ultimately posed a threat to the very sustenance of the vineyards. As a seasoned viticulturist, Michal was of the view that a stable, diverse and balanced ecosystem prevented diseases among plants, and improved the quality of grapes.
Supplementary materials
Teaching Notes are available for educators only.
Subject code
CSS 4: Environmental Management.
Details
Keywords
Students from undergraduate and graduate levels.
Abstract
Study level/applicability
Students from undergraduate and graduate levels.
Subject area
Leadership, implicit leadership theories, decision-making, gender stereotypes and discrimination.
Case overview
Defne was working as a sales manager in Diel Turkey, an international technology company. Diel focuses on software, hardware, network and business consultancy services. Defne had worked as a computer engineer before starting to work in the sales department. In her leadership, she gave importance to long-term relationships and justice. Defne had two meetings this week. The first one was with T&X, a big scale fast moving consumer goods company; and the other one was with Q-Coding, a medium-scale technology company. Defne had negotiated with T&X two years ago, and the project got canceled. Defne worked on T&X new contract very cautiously, as this time she wanted to finish the project and make the deal. Defne had to deal with prejudices during the T&X meeting. Implicit beliefs are grounded in the cultural background of the country, which determines the perceptual framework for the society. Male-dominated countries have implicit beliefs that women’s priorities should be their families, thus being successful at work is not expected. Defne faced male-oriented stereotypes, which challenged her in doing business. Even though she was a successful manager, these subjective beliefs made her perform poorly. During the meeting with Q-Coding, Defne discussed the prejudice for women leaders with a women entrepreneur Suzan.
Expected learning outcomes
This case is trying to achieve two main objectives: first, to make all students be aware of implicit leadership theories and beliefs, which are rooted in the countries’ cultural background; second, to make female students be aware of these dysfunctional coping behaviors and increase their self-efficacy without thinking about their gender roles.
Subject code
CSS 7: Management science
Details
Keywords
MS / MBA / Executive Education
Abstract
Study level/applicability
MS / MBA / Executive Education
Subject area
Leadership
Case overview
In 2019, French multinational electric utility company, ENGIE SA (ENGIE) was on the verge of zero carbon transition. Under the leadership of Isabelle Kocher (Kocher) who became the CEO in 2016, ENGIE embarked on an arduous journey toward re-profiling ENGIE toward renewable, low-carbon energies, such as solar, green gases and digital. Kocher inherited a loss-making company and took in on a path of transformation toward a company with business lines for future. This meant ENGIE would slowly move out of energy generation through non-renewable sources, toward renewables along with storage and digital technologies. This case chronicles Kocher’s turnaround plans and investments, and explains how she went about making ENGIE a forerunner in energy revolution. While the turnaround was on track, ENGIE was unable to give returns as expected. With mounting pressure Kocher announced a strategic plan in 2019, which reemphasized ENGIE’s focus on renewables and technology. But several major shareholders including the Government of France were not impressed with the plan. It is time Kocher proves that transformation of ENGIE into a clean power company also means returns for the shareholders.
Expected learning outcomes
The outcomes are as follows: First, to illustrate how leaders bring in change and innovation in large well-established companies. It shows the role of leaders in leading the innovation process and in molding the companies according to the opportunities and threats presented by the macro environment. Second, to analyze the role of a leader in bringing changes in the organization. Third, to understand the strategies used by energy companies as they position their businesses in the context of a changing energy landscape.
Supplementary materials
Teaching Note
Social implications
Renewable Energy – Growing cocnern about the impact of climate change on the world at large, has brought to the fore the importance of renewable energy.
Subject code
CSS 4: Environmental management
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Jeanne Brett, Lauren Pilcher and Lara-Christina Sell
The first across-the-table negotiation between Google and China concluded successfully in 2006, when Google received a license to establish a local domain (google.cn) targeted at…
Abstract
The first across-the-table negotiation between Google and China concluded successfully in 2006, when Google received a license to establish a local domain (google.cn) targeted at Chinese Internet users and not subject to the “Great Firewall.” During these negotiations both Google and the Chinese government struggled to reach an outcome that would be acceptable to their constituents. Google was caught between pleasing its shareholders and preserving its reputation for free access to information, while China was balancing the desire for cutting-edge search technology and the concern that liberal access to information would undermine its political-economic model. In the end, the negotiation resulted in Google operating two domains in China: Google.com and Google.cn. In early 2010, Google announced that its corporate infrastructure had been the target of a series of China-based cyber attacks and accused the Chinese government of attempting to further limit free speech on the web. These incidents led to a public conflict and private negotiations between Google and the Chinese government, which culminated in July 2010 when the Chinese government renewed the google.cn license knowing that Google was redirecting all Chinese customers search to its google.hk.com site This case concerns the changes in Google and the Chinese government's environment that led to Google withdrawing services from google.cn and the Chinese government saving face by renewing the google.cn license. The case is based on the publicly reported events surrounding two series of negotiations between the U.S. technology giant Google and the Chinese Government regarding Google's license in China.
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Timothy J. Feddersen and Susan Edwards
Dave Williams has taken over as CEO for MBC Corporation and wants to change the mission statement of the company. However, he needs to get approval from four shareholders: a…
Abstract
Dave Williams has taken over as CEO for MBC Corporation and wants to change the mission statement of the company. However, he needs to get approval from four shareholders: a former board chairman, his father and current board chairman, and two members of his own executive team. Williams must navigate the varying dynamics and opinions of the shareholders to gain their buy-in and create a new mission statement that will take MBC on a new path for the future.
The concept this case addresses is that of the mission statement and how it is used to align an organization and its stakeholders. After students have analyzed this case, they will be able to:
Communicate the importance of a mission statement
Engage stakeholders in the creation of a mission statement
Implement a new mission and culture at an organization
Communicate the importance of a mission statement
Engage stakeholders in the creation of a mission statement
Implement a new mission and culture at an organization
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James Shein, Rebecca Frazzano and Evan Meagher
The case briefly describes the history of Electronic Data Systems (EDS) under Ross Perot and GM before turning to the beginning of a tumultuous decade in the late 1990s. As the…
Abstract
The case briefly describes the history of Electronic Data Systems (EDS) under Ross Perot and GM before turning to the beginning of a tumultuous decade in the late 1990s. As the turn of the century approached, EDS made critical strategic missteps such as missing opportunities in the Internet space, overlooking the onset of client-server computing, and failing to obtain major Y2K-related projects. The company attempted a turnaround by replacing the CEO with Dick Brown, whose leadership helped streamline the sprawling company. Despite initial successes, Brown's tenure ultimately ended in failure, due largely to his failure to recognize the growing Indian market and his willingness to buy business at the expense of the company's margin. The disastrous multibillion-dollar Navy & Marine Corp Intranet contract typified the type of high-profile transactions that Brown pursued, often boosting EDS's stock price in the short term while eroding its cash flow short term and its profitability over the long term. EDS management went through several stages of the turnaround process: the blinded phase, the inactive phase, and the faulty action phase, until Michael Jordan replaced Brown as CEO and enacted a three-tiered operational, strategic, and financial turnaround.
EDS's near-decade of turnaround efforts takes students through every phase of the turnaround process and demonstrates that even initially successful turnaround efforts can become distracted, rendering them ineffective. The case will show both a failed turnaround and a subsequent successful one, while adding an international component with respect to EDS's overlooking an important, growing Indian market.
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Mark Jeffery, Joseph F. Norton, Alex Gershbeyn and Derek Yung
The Ariba Implementation at MED-X case is designed to teach students how to analyze a program that is experiencing problems and recommend solutions. Specifically, the case…
Abstract
The Ariba Implementation at MED-X case is designed to teach students how to analyze a program that is experiencing problems and recommend solutions. Specifically, the case introduces students to earned value analysis and program oversight for an e-procurement technology program. The case centers on MED-X's need to quickly discover why the company's e-procurement implementation project was not going according to plan. Once a cause has been discovered, students will need to make a recommendation to fix the problem. Data for the simplified program, consisting of two concurrent projects, is given to students, who should in turn analyze the project using earned value analysis. The case is an easy introduction to program management and oversight for executives and MBA students, and teaches the essentials of earned value project management.
Students will learn how to control and act in oversight of large complex programs, as well as how to apply earned value metrics to analyze a simplified program consisting of two projects. Analyzing the project enables students to learn the strengths and pitfalls of the earned value approach. From a management decision perspective, the case gives students the tools to succinctly answer the questions: How much will the project cost? How long will it take? What is wrong with the project?
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The case opens with the Ford Motor Company seemingly on the path toward bankruptcy. Ford had been bleeding red ink for more than ten years when it decided in 2006 that continuing…
Abstract
The case opens with the Ford Motor Company seemingly on the path toward bankruptcy. Ford had been bleeding red ink for more than ten years when it decided in 2006 that continuing the same turnaround attempts was not going to right the ship. The company was facing significant external challenges, such as intense competition and changing consumer preferences, as well as internal challenges, such as quality and design issues and a stifling level of corporate complexity. As the case begins, CEO Bill Ford has taken the unusual step of hiring an auto industry outsider as his replacement. Alan Mulally, a thirty-seven-year Boeing veteran and principal architect of the venerable airplane manufacturer's own massive and successful turnaround, wasted little time in getting about the business of remaking Ford. He developed a plan to: focus on the Ford brand and divest the numerous other brands the company had acquired over the years; simplify and streamline the company's manufacturing operations; and remake the corporate culture from one of fiefdoms and false optimism to collaboration and facing reality. With an ardent belief in the plan's viability, Mulally raised nearly $24 billion and began to put his plan into motion. The case explores the many causes of this once-great company's decline and the steps it took to beat the odds and get back on the path of profitability.
This case demonstrates that internal issues alone can derail a company and emphasizes the importance of leadership in fostering the right corporate culture to turn a company around. Students will identify the key internal and external factors that can contribute to a company's decline and learn the importance of diagnosing issues within each of three major aspects of a company-strategy, operations, and financials-in order to develop a successful turnaround plan.
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Bryan Preston, CEO of the Back Office Cooperative, leads several large human service providers through the process of building a shared-services platform to leverage scale and…
Abstract
Bryan Preston, CEO of the Back Office Cooperative, leads several large human service providers through the process of building a shared-services platform to leverage scale and efficiencies. This successful collaboration matches the business case for restructuring against the constraints of mission-driven enterprises.
The case seeks to demonstrate how collaboration, scalability, and leadership interact in a nonprofit organization to produce desirable outcomes from which other organizations, leaders, and resource providers might learn.
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Kara Palamountain, Sachin Waikar, Andrea Hanson and Katherine Nelson
The Global Health Initiative (GHI) is a tripartite collaboration among Northwestern University, non-profit donors, and commercial diagnostics companies. GHI attempts to bridge the…
Abstract
The Global Health Initiative (GHI) is a tripartite collaboration among Northwestern University, non-profit donors, and commercial diagnostics companies. GHI attempts to bridge the gap between the market for sophisticated medical diagnostics equipment in wealthy nations and the need for point-of-care diagnostics in resource limited settings. In 2006 GHI narrowed its focus to HIV diagnostics for underserved nations. The case examines the accuracy-access tradeoff related to the roll-out of infant HIV diagnostics in Tanzania. Tanzania has a prevalent HIV/AIDS problem, particularly in children. As of 2007, Tanzania had an estimated 140,000 children infected with HIV. Existing lab-based diagnostic equipment was either inaccurate for use in infants or required highly skilled health workers. Tanzania's limited infrastructure also forced healthcare providers to choose between providing advanced care to a minority of the population and offering minimal care to the majority with poor access. A Kellogg MBA student research team performed more than thirty in-country interviews to collect data on stakeholder perceptions of three infant test concepts: the strip test, the squeeze test, and the filter paper test. Across the three tests, access decreased as accuracy increased---rural labs could not find or afford health workers skilled enough to conduct the test. In general, interviewees closely affiliated with the government preferred accuracy over access. In contrast, private health facilities had to follow fewer regulations and preferred access over accuracy. The case focuses on the decisions facing Kara Palamountain, the executive director of GHI, in her roll-out recommendations for infant HIV tests in Tanzania. It examines key factors of working in a developing country, including the need to operate in the absence of sufficient market research, balance the competing agendas of different stakeholders, and mitigate external risks such as major international funding.
This case was written to be used as a teaching case for students unfamiliar with how to approach and analyze a typical business school case. Unlike many cases used in specific classroom settings, this case is intended to be broad enough that any single student will not have a significant advantage because of his or her background. Moreover, the case is designed to guide students' thinking in a certain direction, using open-ended and more focused discussion questions provided at the case's end.
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Kara Palamountain, Sachin Waikar, Andrea Hanson and Katherine Nelson
The Global Health Initiative (GHI) is a tripartite collaboration among Northwestern University, non-profit donors, and commercial diagnostics companies. GHI attempts to bridge the…
Abstract
The Global Health Initiative (GHI) is a tripartite collaboration among Northwestern University, non-profit donors, and commercial diagnostics companies. GHI attempts to bridge the gap between the market for sophisticated medical diagnostics equipment in wealthy nations and the need for point-of-care diagnostics in resource limited settings. In 2006 GHI narrowed its focus to HIV diagnostics for underserved nations. The case examines the accuracy-access tradeoff related to the roll-out of infant HIV diagnostics in Tanzania. Tanzania has a prevalent HIV/AIDS problem, particularly in children. As of 2007, Tanzania had an estimated 140,000 children infected with HIV. Existing lab-based diagnostic equipment was either inaccurate for use in infants or required highly skilled health workers. Tanzania's limited infrastructure also forced healthcare providers to choose between providing advanced care to a minority of the population and offering minimal care to the majority with poor access. A Kellogg MBA student research team performed more than thirty in-country interviews to collect data on stakeholder perceptions of three infant test concepts: the strip test, the squeeze test, and the filter paper test. Across the three tests, access decreased as accuracy increased---rural labs could not find or afford health workers skilled enough to conduct the test. In general, interviewees closely affiliated with the government preferred accuracy over access. In contrast, private health facilities had to follow fewer regulations and preferred access over accuracy. The case focuses on the decisions facing Kara Palamountain, the executive director of GHI, in her roll-out recommendations for infant HIV tests in Tanzania. It examines key factors of working in a developing country, including the need to operate in the absence of sufficient market research, balance the competing agendas of different stakeholders, and mitigate external risks such as major international funding dry
This case was written to be used as a teaching case for students unfamiliar with how to approach and analyze a typical business school case. Unlike many cases used in specific classroom settings, this case is intended to be broad enough that any single student will not have a significant advantage because of his or her background. Moreover, the case is designed to guide students' thinking in a certain direction, using open-ended and more focused discussion questions provided at the case's end.
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Sunil Chopra, Scott D. Flamm and Waikar Sachin
A midwest hospital purchases new CT Scanners which are much faster than the existing technology. Processes in the radiology department are optimized to the older, existing…
Abstract
A midwest hospital purchases new CT Scanners which are much faster than the existing technology. Processes in the radiology department are optimized to the older, existing scanners and technicians are unable to take full advantage of the new scanner speed. The hospital finds itself working to change the processes to suit the new scanners capabilities and take full advantage of their speed.
This case allows students to analyze process capacity and time performance in different settings and understand how process structure impacts both operational and financial performance.
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Robert C. Wolcott and Michael J. Lippitz
The (A) case describes the evolution between 1999 and 2005 of an unusual innovation team within the office of the chief information officer at oil and gas giant BP. This team…
Abstract
The (A) case describes the evolution between 1999 and 2005 of an unusual innovation team within the office of the chief information officer at oil and gas giant BP. This team helped business units conceive, develop, and implement novel, value-added applications for emerging information technologies. The team leader, vice president and chief technology officer Phiroz Darukhanavala (“Daru”), eschewed a large group and venture budget in favor of a small, lean team intimately engaged with BP's business units. The case describes several mechanisms created by the CTO office during its early evolution: “Blue Chalk” events that expanded executives' appreciation of emerging technology capabilities, a network of relationships through which emerging technologies were scouted and vetted, a structured technology transfer process, and annual “game-changer” projects.
The (B) case describes how the CTO office team members in 2011 again solicited advice from their ecosystem of thought leaders and held workshops to significantly enhance their impact. As a result, they began developing solutions for broader, more fundamental business problems that came to be known as Grand Challenges: extremely difficult business problems whose solutions could potentially create hundreds of millions—or billions—of dollars in business value.
After reading and analyzing the case, students will be able to:
Understand the management challenges associated with realizing the business value of new technologies
Explore how innovation management evolves as an innovation team learns from its successes and failures and, more importantly, builds a reputation within and outside the company
Examine a prototypical “advocate” model of corporate entrepreneurial practice
Explore a leading example of a successful internal innovation program
Understand the management challenges associated with realizing the business value of new technologies
Explore how innovation management evolves as an innovation team learns from its successes and failures and, more importantly, builds a reputation within and outside the company
Examine a prototypical “advocate” model of corporate entrepreneurial practice
Explore a leading example of a successful internal innovation program
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Robert C. Wolcott and Michael J. Lippitz
The (A) case describes the evolution between 1999 and 2005 of an unusual innovation team within the office of the chief information officer at oil and gas giant BP. This team…
Abstract
The (A) case describes the evolution between 1999 and 2005 of an unusual innovation team within the office of the chief information officer at oil and gas giant BP. This team helped business units conceive, develop, and implement novel, value-added applications for emerging information technologies. The team leader, vice president and chief technology officer Phiroz Darukhanavala (“Daru”), eschewed a large group and venture budget in favor of a small, lean team intimately engaged with BP's business units. The case describes several mechanisms created by the CTO office during its early evolution: “Blue Chalk” events that expanded executives' appreciation of emerging technology capabilities, a network of relationships through which emerging technologies were scouted and vetted, a structured technology transfer process, and annual “game-changer” projects.
The (B) case describes how the CTO office team members in 2011 again solicited advice from their ecosystem of thought leaders and held workshops to significantly enhance their impact. As a result, they began developing solutions for broader, more fundamental business problems that came to be known as Grand Challenges: extremely difficult business problems whose solutions could potentially create hundreds of millions—or billions—of dollars in business value.
After reading and analyzing the case, students will be able to:
Understand the management challenges associated with realizing the business value of new technologies
Explore how innovation management evolves as an innovation team learns from its successes and failures and, more importantly, builds a reputation within and outside the company
Examine a prototypical “advocate” model of corporate entrepreneurial practice
Explore a leading example of a successful internal innovation program
Understand the management challenges associated with realizing the business value of new technologies
Explore how innovation management evolves as an innovation team learns from its successes and failures and, more importantly, builds a reputation within and outside the company
Examine a prototypical “advocate” model of corporate entrepreneurial practice
Explore a leading example of a successful internal innovation program
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Carolina Lunker Sauce is a new product attempting to break into the fishing attractants category. The company founders are evaluating cutting the retail price of the product in…
Abstract
Carolina Lunker Sauce is a new product attempting to break into the fishing attractants category. The company founders are evaluating cutting the retail price of the product in order to secure distribution. Analyzing this decision forces the leaders of this struggling company to evaluate their overall new product strategy and the product’s positioning in the market.
To focus on new product strategy, positioning, and pricing.
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Ivan Lansberg, Mary Alice Crump and Sachin Waikar
This case presents the history and recent governance challenges of Carvajal, S.A., a Colombia-based, family-owned, billion-dollar-plus holding company that had offered…
Abstract
This case presents the history and recent governance challenges of Carvajal, S.A., a Colombia-based, family-owned, billion-dollar-plus holding company that had offered printing-related (e.g., Yellow Pages, notebooks) and other products and services across and beyond South America for more than a century. Specifically, the case details the company’s state of affairs in early 2011, a time by which Carvajal’s flagship businesses had matured rapidly with the emergence of digital technology and diminished demand for paper/print-based products. Though profits and growth remained positive, Carvajal’s leaders knew that upholding the business’s legacy of returns, dividends for all family members, and extensive philanthropy would take significant strategy and execution.
Compounding the strategy issues, Carvajal faced these market challenges with new leadership: the first non-family CEO since the company’s inception. Well-established Colombian executive Ricardo Obregon had been hired in 2008 over two family candidates to lead the business. Obregon was to oversee a complex governance network that included a holding company with seven operating companies, their management and respective boards, a family council, and 280 members (including spouses) of a shareholding family in its sixth generation. Carvajal’s business and family leaders had to face market issues and decisions that included the possibility of taking public the operating companies and/or the holding company while maintaining the business’s long traditions of unity, respect, strong ethics, and philanthropy. That meant optimizing several crucial relationships: between the family and the new CEO; between the family and the board; between the operating companies and the holding company; and between members of the large Carvajal family, many of whom now resided outside of Colombia and Latin America.
Understand general and specific challenges associated with carrying on a longstanding family business facing multiple market challenges; explore the process of engaging a complex family-business governance network to handle business challenges while maintaining family values; consider the effects of culture on a multi-generation family business.
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Mark Jeffery, Joseph F. Norton, Derek Yung and Alex Gershbeyn
The case concerns a real $25 million program consisting of nine concurrent projects to deliver and implement a custom-built in-store customer relationship management (CRM) system…
Abstract
The case concerns a real $25 million program consisting of nine concurrent projects to deliver and implement a custom-built in-store customer relationship management (CRM) system and a new point-of-sale system in 400 stores of a national retail chain. The name of the company has been disguised for confidentiality reasons. Once deployed, the new system should give Clothes ‘R’ Us a significant strategic advantage over competitors in the marketplace; it will increase in-store manager productivity, cut costs, and ultimately drive increased sales for the retail chain. The program is in crisis, however, because the product managers have just left to join a competitor. The explicit details of the program are given, including examples of best practice program governance and the real activity network diagram for the program. Detailed Excel spreadsheets are also provided with the actual earned value data for the program. Students analyze the spreadsheets and the data given in the case to diagnose the impact of the most recent risk event and past risk events that occurred in the program. Ultimately students must answer the essential executive questions: What is wrong with the program? How should it be fixed, and what is the impact in time and money to the program? In addition, qualitative warning signs are given throughout the case—these warning signs are red flags to executives for early proactive intervention in troubled projects.
The goal of the case is to teach complex program oversight. Students analyze actual earned value data for a real $25 million program consisting of nine concurrent programs and assess the impact of risk events as they occur in the program. A key takeaway of the case is that relatively simple tools (Excel spreadsheets and time tracking) combined with good project planning can be used to effectively control very complex projects. Students also learn the qualitative warning signs within programs that can serve as early indicators of problems.
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Nicola Persico and C. James Prieur
In 2007 Conseco's CEO, C. James Prieur, faced a complicated set of problems with his company's long-term care (LTC) insurance subsidiary, Conseco Senior Health Insurance (CSHI)…
Abstract
In 2007 Conseco's CEO, C. James Prieur, faced a complicated set of problems with his company's long-term care (LTC) insurance subsidiary, Conseco Senior Health Insurance (CSHI). CSHI faced the threat of congressional hearings and an investigation by the U.S. Government Accountability Office, triggered by an unflattering New York Times article alleging that CSHI had an unusually large number of customer complaints and was denying legitimate claims. This threat came in addition to broader systemic problems, including the fact that the entire LTC industry was barely profitable. What little profitability existed was dependent on the goodwill of state insurance regulators, to whom the industry was highly beholden for approvals of rate increases to keep it afloat. Furthermore, CSHI had unique strategic challenges that could not be ignored: First, the expense of administering CSHI's uniquely heterogeneous set of policies put it at a disadvantage relative to the rest of the industry and made rate increases especially necessary. Second, state regulators were negatively predisposed toward Conseco because of its notorious reputation and thus were often unwilling to grant rate increases. Finally, CSHI was dependent on capital infusions totaling more than $1 billion from its parent company, Conseco, for which Conseco had received no dividends in return. Faced with pressure from Conseco shareholders and the looming congressional investigations, what should Prieur do? Students will discuss the available options in the context of a long-term relationship between Conseco and state insurance regulators. Prieur's solution to this problem proved to be innovative for the industry and to have far-reaching consequences for CSHI's corporate structure.
After reading and analyzing this case, students will be able to: evaluate the impact of a regulatory environment on business strategy; and assess the pros and cons of various market strategies as well as recommend important non-market strategies for a firm in crisis in a highly regulated industry.
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The case opens with Martha Stewart's 2005 release from prison following her conviction for obstructing an insider-trading investigation of her 2001 sale of personal stock. The…
Abstract
The case opens with Martha Stewart's 2005 release from prison following her conviction for obstructing an insider-trading investigation of her 2001 sale of personal stock. The scandal dealt a crippling blow to the powerful Martha Stewart brand and drove results at her namesake company, Martha Stewart Living Omnimedia (MSO), deep into the red. But as owner of more than 90 percent of MSO's voting shares, Stewart continued to control the company throughout the scandal.
The company faced significant external challenges, including changing consumer preferences and mounting competition in all of its markets. Ad rates were under pressure as advertisers began fragmenting spending across multiple platforms, including the Internet and social media, where MSO was weak. New competitors were luring readers from MSO's flagship publication, Martha Stewart Living. And in its second biggest business, merchandising, retailing juggernauts such as Walmart and Target were crushing MSO's most important sales channel, Kmart. Internal challenges loomed even larger, with numerous failures of governance while the company attempted a turnaround.
This case can be used to teach either corporate governance or turnarounds.
Students will learn:
How control of shareholder voting rights by a founding executive can undermine corporate governance
The importance of independent directors and board committees
How company bylaws affect corporate governance
How to recognize and respond to early signs of stagnation
How to avoid management actions that can make a crisis worse
How weaknesses in executive leadership can push a company into crisis and foster a culture that actively prevents strategic revitalization
How control of shareholder voting rights by a founding executive can undermine corporate governance
The importance of independent directors and board committees
How company bylaws affect corporate governance
How to recognize and respond to early signs of stagnation
How to avoid management actions that can make a crisis worse
How weaknesses in executive leadership can push a company into crisis and foster a culture that actively prevents strategic revitalization
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Case length
Case provider
- The CASE Journal
- The Case for Women
- Council of Supply Chain Management Professionals
- Darden Business Publishing Cases
- Emerging Markets Case Studies
- Management School, Fudan University
- Indian Institute of Management, Ahmedabad
- Kellogg School of Management
- The Case Writing Centre, University of Cape Town, Graduate School of Business