Case studies

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).

This case concerns the troubles that Euro Disney experienced from the start. Euro Disney claimed that the major cause of its poor financial performance was the European recession and the strong French franc. The timing of the park's opening could not have been more inopportune. If the recession had been the only cause of Euro Disney's problems, the financial restructuring would only need to carry the park forward to better economic times. Only when Europeans began spending freely again would investors learn the answers to some uncomfortable questions: Was the whole idea of Euro Disney misconceived? Were there other fundamental cultural problems that could inhibit the park's success? Would Euro Disney fail to recover even though other European companies did? And, if so, why was the Disney theme-park concept successful in Japan and not in France?

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.

This case features a prominent antidumping case in the United States against six of its major foreign shrimp suppliers. The case fits well in a discussion and analysis of the (welfare) consequences of protectionism, the basic case for free trade, and the political economy of protectionism.

At the core of this case is a distribution, or sourcing, problem that can be modeled and solved using linear programming (LP). There are also issues of whether to build (a) new plant(s)––and if so, what the capacity should be––and whether to expand or close one or more of the existing plants. These latter issues can be analyzed using a 0/1 LP facility-location model. Alternatively, because the number of options is limited, they can be analyzed using the straight LP model of the distribution problem as a tool to facilitate analysis.

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.

George Lasiter sells special-events T-shirts and must decide how many to order for an upcoming concert. He has high, medium, and low estimates of both concert attendance and the percentage of attendees who will want a shirt. In addition, he has assessed the relative likelihoods of each estimate. The case can be used to introduce or reinforce the fundamental issues surrounding decision making under uncertainty.

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.

Julia Brown, toy buyer for the Hightower Department Stores, has to decide which of three imported stuffed animals will be offered for sale by the 16 Hightower stores during the approaching Christmas shopping season. The case is appropriately used as an introduction to the concepts of least squares and regression analysis. A linear relationship between realized and test-market sales can be used to forecast the sales potential of the three proposed animals, and an explicit treatment of the uncertainty in this forecast is necessary in order to decide how many of each adopted animal to order.