Case studies

The strategic management literature states that firms who wish to have a competitive advantage through high customer service (rapid response) and product differentiation need to restructure their organization into empowered, self-managed work units so as to ensure that there is “value-added” at each stage of the value chain. (Porter, 1985; Hill and Jones, 2001) In this case, Vanguard altered part of its structure through the development of teams in order to maximize its operations; and given their results Vanguard successfully put theory into practice. When the major supporter of team management, Mike Wesley, leaves the firm, he is replaced by Wendy Kiefer, a strong supporter of team structures. Her replacement, Shari Lastarza, however is the “old” assembly manager and does not buy into the team concept. Could this be anything but a formula for disaster?

Arizona Snowbowl, a ski area located in northern Arizona, experienced several years of inadequate snowfall resulting in both operating losses and negative cash flows. The CEO had to decide whether to commit $750,000 for an Environmental Impact Statement (EIS) related to a proposed $19.77 million snowmaking project that uses reclaimed wastewater. U.S. Forest Service approval was required. Data for this case were obtained from the EIS that the Snowbowl submitted to the U.S. Forest Service (USFS). Estimated skier days, revenue levels, capital costs and interest rates are provided to facilitate the decision modeling process. Students are expected to analyze the financial information and decide whether or not undertaking the EIS project is cost effective while taking into account the possibility that the regulatory and legal system might not allow the project to go forward.

The financial statements of public companies located in the United Arab Emirates provide excellent examples of the impact that reporting investments at fair value can have on net income. This is because of the wide fluctuations in securities prices and real estate prices in recent years. Using an actual company, National General Insurance, which is located in Dubai in the United Arab Emirates, this case provides examples of the impact of fair value accounting for investments under International Financial Reporting standards (IFRS), for both securities and property investments. As US financial reporting moves towards harmonization with IFRS, it is critical to understand how reporting for investments under US Generally Accepted Accounting Principles (US GAAP) compares with international reporting standards. Specific learning objectives include gaining an understanding of the reporting requirements for investments under IFRS, understanding the difference between reporting requirements for investments under US GAAP and IFRS, and understanding both the positive and negative impacts on reported net income from using fair values for reporting investments.

Accounting, corporate governance, business ethics.

MBA and EMBA.

China has largely changed its accounting practice in line with international norms. But its corporate governance structure continued to be administratively driven. Many Chinese-listed companies, especially big ones, are transformed from state-owned enterprises, with the government as their largest shareholder. It is no exception to Company C. Then what is the common pattern of accounting behaviour in China? An insight could be drawn by analysing this case.

Highlight two issues in point, namely accounting issue and governance issue. Chinese companies are now allowed to choose their accounting policies, while their top decisions are subject to government policies. Identify Company C's creative accounting by discussing China's accounting reform. In this regard, China has been relatively robust in terms of dropping its own practice and adopting western one. Discuss the corporate governance issues unveiled. What are company's performance criteria? Are they clearly established and enforced? And what about government's decision to change CEO twice in less than one year? What are the impacts on CEO's behaviour?

Teaching note.

Hospitality and tourism management; strategic management; marketing, transportation system management and human resource management.

Undergraduate in business and management and hospitality and tourism management.

This teaching case outlines the historical background, successes and challenges of the national airline of Jamaica. It shows how a national airline, which is a heritage asset and one that has provided nostalgic and sentimental value to the Jamaican people and its passengers, had to be divested. The airline has been faced with several challenges; the major one being high-operating costs, especially in light of the global economic recession. The case also highlights the various procedures carried out by the Government of Jamaica before and after the divestment arrangement and also by the acquirer, Caribbean Airlines.

The student should be able to: first, differentiate among the various strategic management terms and concepts used in the case; second, explain the importance of strategic decisions versus emotional decisions; third, assess the environmental factors that impacted Air Jamaica's operation; fourth, analyse the environmental factors that should have been considered by Caribbean Airlines before making the decision to acquire Air Jamaica; fifth, carry out a comparative analysis of the various corporate-level strategies to identify the best option for the Government of Jamaica; sixth, propose reasons why Caribbean Airlines acquired Air Jamaica.

Teaching note.

Strategy, Emiratisation (national policy); human resources (recruitment, training and development, organizational culture and values) and marketing (branding, communication), tourism (destination image).

Undergraduate and Postgraduate Business and Management.

This case highlights the strategy and initiatives taken by Etihad to attract Emirati employees (local nationals) to join the organization. Etihad Airways is the national airline of the United Arab Emirates (UAE), based in Abu Dhabi, the national capital. Since its inception in 2003, the airline has grown faster than any other in commercial aviation history; it currently flies to more than 60 destinations in Africa, Asia, Australia, Europe, the Middle East and North America. In the UAE, nationals or Emiratis comprise only 20 per cent of the overall population. According to the UAE 2021 Vision, the government's focus is on building the human capabilities on knowledge and innovation for Emiratis. This vision is reinforced in the Abu Dhabi Economic Vision 2030, which aims to boost national participation, encourage women (national women are on average more highly educated than the men) and decrease the education – market demand gap through training.

This case can be used to teach strategy from the point of view of government, human resources and marketing. From the government point of view parallels can be drawn to other nations whose government have focused on policies to create opportunities for and to encourage local employability. An example of a similar programme that was very successful is the “Bumiputra” programme created for indigenous Malaysians in 1971. In the area of human resource strategy, recruitment, training, inculcation of corporate values are some areas that can be reinforced. Form the point of view of marketing; the case can be used to discuss branding from the point of view of people, loyalty building (internal) and communication (internal and external). Destination branding and the role airlines play can also be a discussion point from the strategic point of view with some opportunity for macro-environmental analysis using the PESTLE model.

A teaching note available upon request.

Leadership, psychology.

Organizational behavior, international business, gender and society at Undergraduate level.

This short case describes a qualitative investigation on the dynamics of power between young business leaders and senior supervisees in Ho Chi Minh City, Vietnam. Views from both the supervisors and supervisees on current working relationships are presented.

After reading and discussing the case, participants are expected to be able to identify key concepts from organizational behavior theory, including stereotyping, leadership styles, and influence tactics. Participants should also become sensitized to gender roles and their influence on workplace behavior.

Teaching notes.

Human resource management.

Undergraduate and graduate level Human Resource Management programmes; Leadership modules.

This case accounts the experience of a Malaysian company, Telekom Malaysia Berhad, in implementing talent management practices in its organization. There were several developments that prompted Telekom Malaysia Berhad to initiate a talent management program. The emergence of competitors had forced the company to introduce initiatives to sustain the business. One of the key initiatives involved the need to better manage its talent. The talent management process at Telekom Malaysia Bhd is divided into four key stages. These are first, talent spotting; second, talent assessment and endorsement; third, formulation of individual development plan; and the fourth, readiness level assessment. Each of these stages is implemented using a well-defined set of standards and activities.

This case examines how commitment and support from line management is crucial in the successful implementation of a talent management program and HR-related initiatives generally. Line managers are identified as the missing linchpin between HRM and organizational performance. The case will also identify how the role of line managers is now shifting to support the HR in a strategic sense. Thus, we find a shift in the HR profession from personnel management to strategic human resource management. The case examines the importance of a positive leader-member relationship, creating a culture which is receptive to change. This can be achieved by transformational leader who fosters closer relationships with subordinates. Finally, the case pinpoints how development can occurs in three main ways – on the job experiences, relationships, networking and feedback and formal training opportunities.

Teaching note.

Segmentation, business impacts of decision making, hotel management.

Undergraduate Business or Finance.

The sales manager at a Caribbean hotel wonders whether to accept a large block booking at a discount rate from a group participating in an international sporting event. Do the promised publicity benefits justify the risk of turning away guests from higher paying segments?

The case should: highlight the potential for conflicts when customers from different segments with different needs and expectations find themselves in close contact with each other; identify the trade offs that may have to be made when acceptance of a large block booking might displace regular customers; and calculate the incremental financial impact of revenues from new business less revenues forgone when capacity limitations mean that some traditional business will have to be turned away to accommodate the block booking.

Teaching notes.

The case is directly related to courses on corporate social responsibility (CSR) in the Management of Business Administration (MBA) Programme.

Courses like “International Business/Marketing”, “Strategic Planning” and “Business Ethics” of the MBA Programme. Management Development Programmes for working executives, on the Topics “Corporate Social Responsibility”, “Manpower Planning”, “Growth of Business Clusters” and “Social Accountability”.

The labour-demanding industry of Tirupur knitwear exports is facing both happy and sad situations. While orders from importers are piling up, lack of manpower planning proves a stumbling block. The industry employs more than 300,000 workers. After hours of toiling, workers still lead a pathetic life; have no access to good housing or quality education for their children. Highlighting on this situation, the case brings forward the questions, why is it that firms have not realised their CSR to provide commendable standards for their employees? what situations would provide the drive or compulsion to adapt social responsibility? and how far is fulfilling the social responsibility a direct answer to solving the labour issue faced by the export firms?

The case serves to help students to understand the theoretical concept CSR. It brings to the students understanding: the drivers of CSR; challenges that would make the business units to honour their social responsibility; what lies as the practical situation on awareness of CSR; and to have a wholesome practical view of CSR in the context presented in the case.

Teaching note.