Case studies

Communication Solutions (CS), a woman-owned business, experienced fast growth at its inception, and then found itself slowing after the mid-2000s recession. The firm provides consulting services, primarily to government agencies. The owners have brought the business to sales of about $10.5 million in 2012, but revenues declined following that peak year because of cutbacks in government spending and founder Jennifer Madison’s detachment from the business. Even though they recognize that it may not be an ideal time to sell, they are tired of running the business and want to sell now, as long as they can pay off their debts.

This case was researched through multiple interviews with Mark and Jennifer, who provided all of the financial data and background. All financial statements given in the case provide actual CS numbers. The name of the company and the names of the owners have been changed, at their request to disguise the company. At the time this case was written, the owners were in negotiation with a potential bidder, and did not want their names or their company name to be used. Market information and information about comparable companies was researched using publicly available financial data bases.

This case has the potential to be used in a variety of classes, depending on what the instructor wishes to emphasize. The author uses the case as a valuation case in a corporate finance class (suitable for undergraduates or MBAs), allowing students practice in discounted cash flow valuation and comparable multiples valuation. It could be used in an investments class which teaches business valuation, particularly in teaching valuation using market multiples. The case could be used in an entrepreneurial finance class. The author uses this case to illustrate the difficulties of business valuation with messy (but real) data.

This case explores small business valuation and exit strategies for founders. Students can put themselves in the position of small business owners who are ready to exit. Students should value the firm using discounted cash flow and multiples valuation, which includes making assumptions about the future growth of the firm. While there is likely to be reasonable agreement on the “as is” valuation, there may be great variation concerning the assumptions and valuations of the company as it could be. Students can discuss (and implement) adjustments made when using large company comparables to value a much smaller company.

This case traces through a 20-year history of a Chinese high-tech company, Maipu Communications Technology Company. Throughout the company’s growth, Maipu adjusted its innovation models in order to ensure that they remained compatible with corporate strategies, resources and external environments. However, as the company grew bigger, it was finding it more and more difficult to meet its innovation goals. Its current innovation model is a market-driven platform + distributed innovation. While Maipu has achieved some success under this model, it is faced with a myriad of challenges during the execution of the model. The key questions raised by this case are whether Maipu’s current innovation model is suitable for the company at this stage and how the innovation model should be adjusted to propel new innovation and growth opportunities for Maipu in this increasingly competitive market.

This case was a field research case. The authors paid three visits to Maipu Communications Technology Company, during which the authors conducted in-depth interviews with Mr Zhao, the Head of Maipu’s R&D and Innovation group, and several senior and functional managers of the company. Follow-up communication via telephone and e-mail was conducted to verify the accuracy of the written case.

This case is well suited for courses in the areas of strategic management, innovation management, high-tech management, entrepreneurship, and international business. The target audiences of the case are primarily MBA students, although this case can also be used in upper-level undergraduate business courses.

The theoretical basis for this case includes the following management theories: strategy formulation and strategy implementation, business-level and corporate-level strategies, enterprise life-cycle, corporate strategies at various stages of growth, patterns of innovation and applications, and implementation of innovation strategies.

Srikumar Misra founded Milk Mantra as a milk producing and selling company in the state of Odisha, India in 2010. The company subsequently diversified into milk-based products such as yogurt and cottage cheese and spread its foray into the neighboring states. In 2014, the company had to overcome a few challenges from the macro environment as well as think of a marketing and communication strategy to gain competitive advantage.

The case is based on the primary research and has been developed using interviews of the company representatives and documents made available from the company. Wherever required, written permission has been obtained from the company representatives.

This case could be a part of the Marketing Management course in a graduate/undergraduate program in Business Management. The case could also be a part of a Brand Management or Integrated Marketing Communications course in the same program for specialized subjects such as branding a generic product or brand communications. This case could also be used for a short discussion in a distribution and logistics course.

The specific topics, which could be facilitated through this case, are the 4 Ps of marketing, distribution and marketing strategy. The case also relies on the theories of branding and marketing communication.

This case involves the March of Dimes (MOD) Foundation, the “leading nonprofit organization for pregnancy and baby health.” MOD’s mission was to support medical research, organize volunteer workers, and provide community services and education to save babies’ lives (www.marchofdimes.org). The strategic issue in the case involves creating awareness of both the mission and services of MOD and the critical issue driving that mission – premature births. The organization must create a desire for various target markets to take action in response to the problem. The main protagonist is Doug Staples, Senior Vice President for Marketing and Communications.

Data were collected via personal interviews with the primary protagonists, Doug Staples, and Mike Swenson of the Barkley agency. The MOD provided quantitative Gallup studies they commissioned, as well as documents unveiling the roll-out in the San Jose, CA region. The Barkley Agency provided qualitative data from a study which consisted of eight focus groups conducted in two markets and ten personal interviews. Secondary research was used to provide a support for industry and market data, to supplement organizational facts provided by the MOD, and to identify and link marketing theory to the situations provided in the case. The organization, facts and characters in this case were not disguised. MOD was consulted throughout the case development process.

This case study is recommended for marketing courses at the undergraduate level. It is most appropriate for marketing management, introductory marketing, or marketing strategy classes. Additionally, this case is a good fit for courses focused upon not-for-profit marketing issues.

The strongest opportunities to apply theory using this case relate to branding (see De Chernatony and Dall’Olmo Riley, 1998 for a content analysis of the brand literature). These theories include brand image and personality (Aaker, 1997; Belk, 1998; Grohmann, 2009), brand awareness (Aaker, 2002), brand involvement and customer loyalty (Brakus et al., 2009), brand engagement (Sprott et al., 2009), brand relationships (Breivik and Thorbjornsen, 2008), and brand equity (Aaker, 2002, 2008). Specifically, question 2 addresses brand personality, and questions 3 and 4 explore relationships with the brand such as the emotional power of the brand and brand association. Question 6 focuses on positioning strategy.

Rob Griffin, senior vice president and U.S. director of search for Media Contacts, a communications consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France. At the time of the case, SEM had become an advertising phenomenon, with North American advertisers spending $9.4 billion in the SEM channel, up 62% from 2005. Moving forward, Griffin wants to ensure that the team keeps its leading edge and delivers the results Air France requires for optimal Internet sales growth. The case centers upon Air France's and Media Contacts' efforts to find the ideal SEM campaign to provide an optimal amount of ticket sales in response to advertising dollars spent. This optimal search marketing campaign is based on choosing effective allocation of ad dollars across the various search engines, as well as selecting appropriate keywords and bid strategies for placement on the search result page for Internet users.

In determining the optimal strategy, the case presents background information on the airline industry as well as the Internet search options available at the time, including Google, Microsoft MSN, Yahoo!, and Kayak. Additionally, background information is provided on SEM and its associated costs and means of measuring the successfulness of each marketing effort. The case illustrates how one must first determine the key performance indicators for the project to guide analysis and enable comparison of various SEM campaigns. Cost per click and probability to produce a sale differ among publishers. Therefore, using a portfolio application model's quadrant positions can be used to determine optimal publisher strategies. Additionally, pivot tables help illustrate campaigns and strategies that have historically been most successful in meeting Air France's target Internet sales. Multiple recommendations on how Media Contacts can assist Air France in improving its SEM strategy can be derived from the data provided.

Students learn how to optimally leverage the Internet in generating customer sales in a cost-effective manner. Students will analyze and manipulate a variety of data using pivot tables to determine optimal strategies for obtaining maximum total online bookings through the various online channels available. Using a portfolio application model, students can determine an optimal publisher strategy and complete copy improvement analysis.

Focuses on Apple Computer's launch of iTunes and iPod as a way to give Wintel users a relationship with Apple. Deals with issues of brand equity, corporate and brand goal setting, target selection, and matching product and service characteristics with goals and targets. Also allows for a discussion of channel partners, their interests, and their impact on the likely success or failure of a strategy.

This case features Bel-Brand's efforts to position its flagship brand The Laughing Cow in the United States. The challenges in this case are twofold. First, choose a viable position for a brand after a period of high growth following the South Beach Craze. The difficulty here is that the initial driver of the brand's position, the South Beach Craze, an environmental factor, is dwindling and is not sustainable. Second, the brand was receiving pressure from global stakeholders to try to unify the positioning in the United States with the global brand positioning. These are both challenges that were faced by the marketing team and raised in the case.

This case can be used to teach the following topics: 1) Developing a sustainable positioning. This case gives students the valuable experience of making a positioning choice and supporting the rationale for the positioning chosen. Furthermore, it demonstrates how a brand maintained a position after the initial support/argument for that position has dwindled or disappeared. 2) Managing global versus local positioning. The case also showcases a real life example of where positioning in the United States was extremely misaligned from the global positioning of the brand, and how the brand responded to this. 3) Write a positioning statement. One important exercise that students could be asked to do is write a positioning statement and become more familiar with concepts such as point-of-parity (POP), point-of-difference (POD), and reason-to-believe (RTB).

Four years into a five-year contract with General Motors to be the exclusive website vendor to its U.S. network of more than 4,000 dealers, CDK Digital faced a crucial contract renewal at the end of 2012. The case follows Melissa McCann, director of strategic marketing, and Chris Reed, CMO, as they prepared for a critical meeting in July 2011: a presentation to the customer relationship management (CRM) subcommittee of the Chevrolet dealer council. Although GM dealers, like all auto dealers in the United States, were independent franchisees, GM saw the renewal of CDK Digital's exclusive contract as a collaborative decision between dealers and GM. According to Ed Vogt, GM's executive in charge of the renewal, if the dealer councils said no, the contract would not be renewed.

This case challenges students to use CDK's big data and analytics capabilities to address the inherent conflict between dealers and manufacturers: when marketing to potential customers, manufacturers wanted consistency across dealer websites to maximize sales of their targeted brands, while dealers wanted flexibility to sell what they had in inventory.

After analyzing the case, students will be able to:

• Demonstrate how big data and analytics can be used to solve channel conflict

• Explain how franchisors and franchisees have different perspectives on the value of data on retail operations

• Recognize benefits of big data and analytics beyond the obvious potential improvements to marketing and operational effectiveness

• Articulate the value of data analytics for channel management

• Appraise the benefits of real-time website customization

Demonstrate how big data and analytics can be used to solve channel conflict

Explain how franchisors and franchisees have different perspectives on the value of data on retail operations

Recognize benefits of big data and analytics beyond the obvious potential improvements to marketing and operational effectiveness

Articulate the value of data analytics for channel management

Appraise the benefits of real-time website customization

This case focuses on Cisco Systems' innovative probe-and-learn approach to using social media to launch its ASR 1000 Series Edge Router. The company had decided to eschew traditional print and TV media in marketing the new product and had decided instead to focus its efforts entirely on digital marketing and social media to attract the attention of its target market. The case discusses Cisco's bold plan to launch the ASR 1000 Series “virtually, visually, and virally” and the digital tactics employed by the Cisco Systems marketing team to accomplish this ambitious goal. Business marketers normally adopt a more serious and traditional approach to marketing its products but in this case Cisco had decided to buck that trend by exploring digital tools and social gaming avenues which its target client—the technical community—were increasingly frequenting. Cisco's challenge lay in whether this new approach and resultant value proposition would resonate with its technical audience and give the ASR 1000 Router the kind of publicity it needed to have. The case is set at a time when social media was burgeoning as a promising way to engage consumers more deeply with brands and products, but marketers were still experimenting with the tools and tactics of social media for marketing.

Understand the relevance of social media for product launches as a function of contextual factors such as nature of product, media habits, and company credibility. Learn about the applicability of social media for business marketers in terms of its uniqueness, advantages and challenges. Recognize the relationship between campaign objectives and the value proposition for the product. Understand the evolution of social media marketing from a probe-and-learn approach to a strategy-driven process. The initial test and learn approach must be enhanced and become more strategic in the future.

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.