Case studies

In 2012 several retailers, including Amazon and Walmart, experimented with same-day delivery. Home delivery of pizzas had been a very successful model in the United States and had been copied all over the world. In contrast, home delivery attempts by companies like Kozmo and Urbanfetch had failed and both companies went bankrupt. The goal of this case is to build a framework that helps students identify the factors that influence the success or failure of home delivery models.

After analyzing and discussing the case, students should be able to:

• Build a basic framework identifying supply chain drivers that are influenced by a firm's decision to offer same-day home delivery

• Understand the tradeoffs that influence the success of a same-day home delivery model

• Identify qualitative factors to be considered when deciding between non-U.S. facility locations, including transportation time variability, consumer perceptions, and cultural differences

Build a basic framework identifying supply chain drivers that are influenced by a firm's decision to offer same-day home delivery

Understand the tradeoffs that influence the success of a same-day home delivery model

Identify qualitative factors to be considered when deciding between non-U.S. facility locations, including transportation time variability, consumer perceptions, and cultural differences

Dove and Axe were two highly successful brands owned by Unilever, a portfolio company. Dove was a female-oriented beauty product brand that exhorted “real beauty” and not the unachievable standards that the media portrayed. In contrast, Axe was a brand that purportedly “gives men the edge in the mating game.”□ Their risqué commercials always portrayed the supermodel-type beauty ideal that Dove was trying to change. Unilever had always been a company of brands where the consumer knew the brands but not the company, but recently there had been the idea to unify the company with an umbrella mission for all of its brands. This would turn Unilever into a company with brands, potentially increasing consumer awareness and encourage cross-purchases between the different brands. However, this raised questions about the conflicting messages between the brands' marketing campaigns, most notably between Unilever's two powerhouse brands, Dove and Axe. The case begins with COO Alan Jope anticipating an upcoming press meeting in New York City to discuss Unilever's current (i.e., 2005) performance and announce Unilever's decision to create an umbrella mission statement for the company. This case focuses on the central question of whether or not consistency between brand messages is necessary or inherently problematic.

The Unilever's Mission for Vitality case was created to help students and managers develop an appreciation for how the values underlying a marketing campaign can affect and alter an organization's culture. The case focuses on how two products and marketing campaigns that express conflicting underlying values (as reflected in the Dove Real Beauty and the Axe Effect campaigns) within the same corporation can give rise to a number of unintended organizational and marketing complications.

Verklar is the leading maker of roof windows based in Europe. Its Austrian subsidiary has historically dominated the Austrian market, with about 85% market share. However, at the time of the case, its market share has dropped to about 75%, and many of its dealers have either dropped the line entirely or are buying not from the company, but from the few remaining large dealers who still buy directly from Verklar. This has prompted the president of the subsidiary to devise a new way—called the Quota System—to run the distribution channel in the country to improve performance. Asks the reader to examine the sources of market share decline and whether the proposed Quota System solves the channel's problems.

Addresses how flow times and capacity calculations can be made for a service process such as the Bariatric Surgery Center at a clinic. Highlights how these calculations can be made for a service process just as in any manufacturing setting. Discusses the notions of critical paths and bottlenecks and what factors affect both time and capacity. Also, discusses the relative profitability of two types of bariatric surgery, the goal being to link product profitability to the process.

In 2003, ITC responded to the high level of obsolete inventory by shifting risk from finished products to manufacturing and raw materials. This required that their supply chain be much more flexible and responsive than it was in the past. By 2006, changes in the supply chain that included moving manufacturing in-house improved flexibility and responsiveness. Obsolete inventory was significantly reduced and the company was much better at matching supply and demand. Cost, however, continued to be higher than that at third parties. The company had to decide on the appropriate tradeoff between cost and responsiveness when structuring its supply chain.

The case illustrates how Wills has changed its supply chain to become more flexible and responsive. This change, however, has come at a cost. The case requires the students to analyze the tradeoff between cost and responsiveness/flexibility to decide on an appropriate level of flexibility/responsiveness. The case also requires the student to understand the relative value of increased flexibility versus increased responsiveness.