Case studies

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.

Discusses the structure of the Seven-Eleven Japan supply chain in terms of its facilities network, inventory management, distribution, and information.

To discuss how Seven-Eleven has made consistent supply chain choices to support its business strategy of providing convenience to customers. Points to how Seven-Eleven has used information and aggregation in transportation to improve supply chain responsiveness at a relatively low cost.

A toy retailer plans to order a new product from an untested supplier for the winter holiday season. This exercise provides an opportunity for students to construct a model to determine optimal order quantity when demand is not known. Profits are calculated based on wholesale pricing, revenue-sharing, profit-sharing, and buyback contracts.

Cutts Floral Distributors, founded in 2004 by Dave Lambe, was a floral wholesaler in Lincoln, Nebraska. The firm became a top wholesaler in the Lincoln area and had expanded its delivery range (all accessed by the company's hand delivery system) up to 100 miles outside of Lincoln. The company credited its success to the expertise of its founder, a professor of horticultural entrepreneurship, and to the company's commitment to customer service. Dave Lambe came to believe that Cutts had exhausted the local market and began looking for growth opportunities within driving distance. Proposed locations for expansion included Kansas City (MO/KS), Denver (CO), and St Joseph (MO). The case provides an in-depth look at Cutts, its competitive advantages, and strategy as the firm faced a critical decision, made more difficult by the uncertainties of the economic recession. This case encourages students to think critically in order to answer the case's central questions: “Should Cutts expand? If so, where?” The complexity of an expansion decision and the multitude of factors that may influence an entrepreneur's decision to expand are illustrated throughout the case.

Supply chain management and particularly the significance of vendors as a strategic decision making tool.

The case is suitable for use in the following courses: MBA programs with specialisation in operations management where it can be used to teach students the significance of vendor selection and vendor rating in supply chain management (SCM); marketing research in management where it can be used to highlight the concept of multi attribute utility theory (MAUT) and its application; advanced statistics for multi criteria decision making (MCDM); and MBA/post graduate programs in management in strategic management where it can be used to introduce the concept of SWOT analysis and Porter's five forces model. An understanding of business process improvement will enable students get a comprehensive view about the case.

This case showcases the concepts of MCDM and SCM in manufacturing industry. The company wanted to select vendors and rate them in each category of raw materials in order to have a competitive advantage over competitors. Since there are multiple attributes (often contradictory in nature) based on which the vendors would be selected Kaul, Vice-President, Commercial uses multi-attribute utility theory (MAUT) to help solve the problem. The case has implications for manufacturing industry in selecting vendors to meet a raw materials need.

The case can be used to understand management concepts such as market research, supply chain management and multi criteria decision making. It can be used to: teach complexities involved in identifying attributes for vendor selection and vendor rating; help understand supply chain management in business process improvement; help students understand the application of MCDM; and help MBA students studying marketing research. The case will also be useful to students in understanding the application of MCDM in operations management. Some knowledge about cigarette manufacturing will help students to realize the depth of the case.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Public management, sustainability.

The case is suitable for undergraduate and masters' courses.

The case is about the dilemma between the lucrative economic profit from swiftlet farming and the invaluable heritage and social wellbeing of the residents in a world heritage city. In 2011, the United Nations Educational, Scientific and Cultural Organization (UNESCO) issued a letter to the Malaysian government expressing concern over the issue of the swiftlet industry in Georgetown, Penang. Swiftlet farming is a lucrative agriculture sector in Malaysia and is considered one of the key projects under the Malaysian Economic Transformation Program. Yet, this industry posed a threat to the well being of George Town due to its impact towards the city's heritage status. The operation of swiftlet farms in shop houses in George Town not only forces residents to coexist with thousands of swiftlets in the populated city, but also deteriorates the condition of its heritage buildings. A quick solution by the government authorities is needed in order to respond to UNESCO's enquiries. A fair consideration looking at the aspects of economy, environment and society is vital in ensuring the future of the city.

These include: understanding the complex issues of trade-offs between economic profit vis-à-vis the environmental social heritage; understanding and appreciating the conflicting governmental objectives and the way to address the conflicting demands of the stakeholders (NGOs, industry and business association and the general public); identifying and determining ways to align environmental interests with economic interests in order to formulate sustainable solutions; and formulating an action plan and providing practical recommendations to solve the problem.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Humanitarian logistics, aid response.

Master/advanced level; courses in: humanitarian logistics; port operations and management; supply chain management and logistics.

Recently, the humanitarian organization Global Food Aid (GFA) has received criticism for slow response to the on-going drought in East Africa. One of the reasons is the long lead times to transport and distribute food. Therefore, GFA has launched a project called “Strategic stock” where food will be pre-positioned in strategic locations around the world. Because of its importance as a gateway for East Africa, the Port of Mombasa has been selected as the pilot project. Headquarters of GFA has engaged a team of logistics and warehouse experts to plan, run and evaluate the pilot project in Mombasa.

Through this case, the students (who take on the role of the experts) will gain knowledge in a wide range of areas. First, they will gain a thorough insight to coordinating a port operation in one of the major ports in Africa. Second, the case increases the understanding of working with logistics in a humanitarian aid context. Third, the students will learn how to work with logistics both on a strategic level (planning the implementation of strategic stock) and on an operational level (handling the different events that occur throughout the case). There is also a learning element related to risk management.

Teaching notes are available.

Crisis management, reputation and brand management, corporate communication, logistics, organization strategy.

Post-graduate and executive education.

The Eyjafjallajökull Iceland Volcano erupted on April 14, 2010, causing an estimated loss of US$1.7 billion for the aviation industry. At one stage in this weeklong event, 1.2 million passengers were affected with 100,000 flights being grounded across Europe. This case documents the way Etihad, a leading global airline company managed the crisis and continues to learn for future scenarios.

Adaptation strategies, reputation management, brand management, crisis planning and implementation, communication and stakeholder management, scenario analysis.

Teaching notes.

Brand strategy, marketing strategy, service marketing, hospitality management and international marketing strategy.

Post-graduate-level students; practitioners from the hospitality sector, brand management, corporate social responsibility (CSR) and the arts and culture field may also benefit from the case.

Jumeirah Group is a luxury hospitality company that is implementing a global brand strategy after developing a strong-regional reputation. Jumeirah's strong cultural alignment to its Dubai heritage in the form of its hallmarks and communication tag line “Stay Different” is being translated into events, activities, sponsorship and more importantly in terms of service to create a symbolic and experiential brand strategy. For Alice Royton, the Director of Branding for Jumeirah Group, the dilemma was how to maintain the thrust forwards as a top luxury brand and keep brand synergy especially as Jumeirah was increasing its portfolio and the competitive arena heats up in the international market place.

Creation of stakeholder value, brand strategy looking at various brand levels, using arts and culture as part of CSR initiative; communication strategy, emotional touch points and moment of truth as part of interactive service strategy; CRM and loyalty.

Teaching notes.

Marketing strategy; services marketing; tourism.

Upper year undergraduate business/management, MBA, marketing/international business.

Memento Park is a large open air museum on the outskirts of Budapest, that houses statues, and related ephemera related to the communist period in Hungary. The park opened in 1993, four years after Hungary had shaken off its yolk of communism as part of the Iron Curtain, in 1989. This case presents a classic example of a business enterprise that sprang from a concept and access to inexpensive materials directly resulting form a changing external environment. The case presents the issues involved in making Memento Park a sustainable part of the Budapest tourist experience.

This case challenges students to decide how best to determine a sustainable advantage. Arguably the value proposition that is being offered by Memento Park has a number of identifiable benefits to the target consumer. It is not replicable (at least in Hungary), has a truly unique content, and does not have large fixed or variable costs in terms of operations. The question is how to best develop a plan of attack for such a firm?

Teaching notes.

Higher education leadership and planning.

Postgraduate/higher education.

Professor Rob Whelan was appointed President of the University of Wollongong in Dubai (UOWD) from the University of Wollongong in Australia (UOW). Professor Whelan brought to the job in Dubai the perspective that public-good benefits flow from a comprehensive institution engaged with the larger community and these are led by academic staff members who produce research that serves the national interest. To apply this model to UOWD meant a thorough analysis of the organization in terms of both its culture and its broader environment. This case explores the various processes through which a new leader takes stock of an existing institution, identifies the potential for development in a particular direction, draws upon a range of stakeholders to refine the vision and develop it into a strategic plan, gains support for the plan, and then implements change through close collaboration with the institution's constituents.

This case can be used to explore a number of issues in leadership and management including: identifying the various internal and external stakeholders in a complex organization; analysing strategies for mobilization for change, including the assessment of inclusive versus exclusive approaches; reviewing the opportunity costs of change; and assessing types of leadership.

Teaching notes.

Operation and logistics.

Students and practitioners.

This case study analysis the logistical and operational issues that one of the leading pharmaceutical companies in the MENA region is facing. The case provides a practical example of a company which positioned itself well to be a leading company. However, there are some inherent operational and logistical problems that hinder the company to reach its leading position. The first section of this case describes the company, its process and its operational problems. The second section is dedicated to the analysis of the operational capabilities and current key issues. The last section provides recommendations on how to improve the current operations and ways in which the improvements can be implemented, as well showing the benefits to the company based on the theoretical and practical frameworks.

Understand how operational issues affect company performance.

Analyse the effect that poor operational process can have on the overall company business.

Evaluate alternatives for process modifications.

Create plans for process improvements and assess its operational and logistical implications.

Teaching notes.

Early in 2008, Tony Truesdale, President of the Vitamin Shoppe, was preparing for a meeting with the company's investment bankers. In particular, he was wrestling with supply chain issues that were becoming increasingly pronounced in light of the company's aggressive growth plan. Truesdale recognized that it was nearly impossible to effectively manage the company's large and fragmented supply base, resulting in higher than necessary costs and lower than desired performance. The company also relied too heavily on one supplier for a significant amount of the company's volume. Truesdale recognized that it was nearly impossible to effectively manage the company's large and fragmented supply base, resulting in higher than necessary costs and lower than desired performance. The company also relied too heavily on one supplier for a significant amount of the company's volume.

Further, in the company's single distribution center, 95 percent of the available storage capacity was utilized throughout most of 2007; well above what was considered optimal. The lack of space was driving excessive product handling and increasing operating expenses. The company's inbound and outbound transportation strategies also contributed to inefficiencies and unnecessary costs. Operating efficiencies could be achieved if all transportation needs were brought together under one strategic umbrella. Truesdale was certain that in order to reach the company's growth targets and maintain its competitive advantage, addressing these supply chain issues was critical. Students are asked to describe the specific issues affecting supply chain performance and recommend approaches to solving the problems

Small to medium-sized enterprises, SMEs, play a critical role in the global economy. They comprise 90% of the global firm population and employ more than 50% of the labor force in the private sector. This case study examines issues related to sustainable supply chain management and social entrepreneurship in the SME context. Being small does matter and the efficiencies of small to medium-sized companies struggling for competitive advantage in the global marketplace warrants consideration. Philosopher's Wool Co., located in Inverhuron, Ontario, Canada, is a woolen producer and woolens product manufacturer that partners with other Ontario wool producers and American wool processors and distributors. Its sustainable vertical supply chain system increased local woolen farmers' revenues contrary to the “conventional” price wisdom in the Canadian woolen industry and turned by-product cost into profitable end use. It also effected social change in its local business community and in global customer relations through resource efficiency and socially responsible employee and consumer policies. However, the struggle to maintain a foreign distribution network and remain competitive and profitable was problematic. Students are challenged to solve the problems of an SME operating in a global economy.

The ABB (A) case describes the situation leading up to a decision that has to be made concerning closing a manufacturing subsidiary of ABB and moving its operations to Thailand. The Plant/subsidiary manager is placed in a conflict position regarding this decision due to the matrix form of management structure employed by the parent ABB. His direct line manager in charge of the global product line wants the move to take place. He has the support of his supervisor, who sits on the Executive Committee of the parent company. The ABB Country Manager for Denmark wants the plant to stay where it is. The subsidiary manager also reports to him, as part of the matrix structure. The subsidiary manager has recently been promoted to his new position, with the support of the Country Manager. The previous subsidiary manager had been promoted to head up a larger, Danish subsidiary of ABB. The previous year, the Country Manager and the previous subsidiary manager had managed to over rule the same request, in no small part, due to their connections within ABB as well as within Denmark. The new subsidiary manager needs to make a recommendation as to what should be done. The ABB Transformers (A) case can be used separately, or in conjunction with the (B) case.

The (B) case follows up on the (A) case. The decision was made to leave the plant in Denmark. It was revisited one year later, and the subsidiary manager is in even more of a quandary. The former Country Manager has been promoted to the Executive Committee of ABB. At a meeting of the new Country manager (not previously from within ABB), the Product Manager, his supervisor from the Executive Committee, the former Country Manager, and the subsidiary manager, the discussion is primarily between the new Country Manager and the Product Supervising Executive Committee Member, who has also been given added responsibility for all of Asia and the Pacific region. The former Country Manager, now responsible for European operations, remains quiet during the discussions. He later notes that this is a relatively small decision in the context of European operations. The subsidiary manager still needs to make a decision, but is now unsure of what has happened during the past year to allow this issue to be raised for the third time. The (B) case can be used to demonstrate how politics, promotions, and transfers can radically alter the environment within the context of a strategic decision. The focus is now on organization culture and power, and on the problems of operating within a matrix structure. The (B) case should be used in combination with the (A) case.

East Texas Oxygen (ETOX) delivered high-pressure cylinders of gases such as oxygen and nitrogen to twelve wholly-owned branches scattered throughout East Texas and Louisiana. Employees loaded and unloaded individual high-pressure cylinders off of and onto trailers manually and the firm had never had a related accident. Robert Jenkins had been challenged to decrease the cost of supplying the branches with cylinders and other supplies. He was considering recommending the palletization of delivery operations which required numerous changes within the organization. This case required students to determine the best routing for the delivery truck(s) and to determine whether or not the number of trucks and drivers could be reduced under palletization. Students were then required to do a capital budgeting analysis and make a recommendation of whether or not to palletize.