Case studies

This case presents the dilemma of a multinational oil and gas company, ExxonMobil, as it factors in the ethical issues related to the environment and cultural differences in deciding whether to proceed with building a pipeline in Chad and Cameroon, two of the poorest and most corrupt developing countries in West Africa. The many players in this project included the World Bank--which cofinanced the project and put restrictions into place that would hopefully prevent pipeline-related government corruption in both Chad and Cameroon--and many environmental and human rights groups that warned of potential disaster. The case also covers the environmental and social analysis of the areas that would be affected by the pipeline.

The case takes place in the city of Dubai, United Arab Emirates, a booming regional tourist and commercial center located on the Arab (Persian) Gulf coast of the Arabian Peninsula. The story describes Vijay, the Indian (East Asian) entrepreneur, his personality, background, motivations and management style. The focus of the case is on how this entrepreneur grows the business over the seven years leading up to the decision to launch a travel club targeted toward East Asian travelers in the region. The details of the new venture are chronicled from inception to its eventual closure four years later under desperate financial circumstances. The richness of the case is enhanced by the inclusion of details of the legal, economic and cultural factors that define the business context and business risks. The case provides an interesting and informative view of a part of the world that is “in the news” but largely remains a mystery to the typical North American student.

Russ Clark is a successful NAPA Auto Parts franchisee in Yuma County, Arizona. He sees opportunity in the neighboring Mexican city of San Luis Rıo Colorado. But crossing the border with an after-market auto parts store will require building relationships with others, lots of learning to overcome the significant barriers, and some savvy decision-making in addition to the usual evaluation of business opportunities. Clark must consider a location decision, product mix, human resource issues, and how to promote the new business in an uncertain and unfamiliar context. Clearly, his current American business model will require a great degree of adaptation to make the venture a success. This case was developed from extensive field interviews and shadowing Mr. Clark for a day. In addition, Mr. Clark and his store manager, Rigoberto made classroom presentations describing their experiences surrounding the case situation.

Jan Jaśkiewicz was a successful small grocer in Białystok, Poland, a city of about 300,000. When Poland became a capitalistic nation again in the late 1980s, Jaśkiewicz was among the early entrepreneurs. In the late 1990s, multi-national grocery chains from across Europe began building new, large stores on the outskirts of most Polish cities, including Białystok. In early summer 2000, a few days before the case begins, local independent grocers had been called together by Lewiatan, a Polish wholesale grocer. Lewiatan could offer the smaller grocers the advantages of the chains: bulk buying, Lewiatan-branded goods, slotting fees, and cooperative advertising. The local grocers liked many of the benefits Lewiatan would bring, but were suspicious and wanted someone they knew to be the area representative before they would agree to join Lewiatan. They had called a second meeting to try and find someone to fill the role. Jaśkiewicz was a natural choice: he had been in both the retail and wholesale grocery business, had been in business longer than almost everyone else, and was well-respected. Jan was tempted. Not only did he want to grow his own business, he wanted other Poles to be successful business owners and felt that if he could help Lewiatan, Lewiatan could help others compete with the new, large, foreign-owned and professionally-managed stores.

In 2005, LPP SA was one of the fastest growing firms in Poland’s apparel industry, with popular brands such as RESERVED and CROPP. This case focuses on the apparel industry, LPP’s business and international strategies, and its internal capabilities. The case also offers a background on the communist rule in Poland and how it led to economic malaise that sparked the strikes by Solidarity under the leadership of Lech Walesa. These strikes eventually cascaded into the demand for reforms and the collapse of the communist regime. Thus, the case tracks Poland’s transition into an “emerging market” and the environment within which LPP developed. The case concludes by asking readers whether LPP needs to reorient its strategies and develop new capabilities to sustain its growth.

This case examines the ethical issues raised when businesses contract for the military during time of war. Dow Chemical Company was a military contractor during the Vietnam War and the primary producer of Agent Orange - a defoliant used to clear vegetation. Agent Orange has been linked to a number of serious medical conditions in war veterans and Vietnamese civilians. In 2004, Vietnamese citizens filed suit against Dow for illnesses they believe were caused by exposure to Agent Orange. Dow thought the issue should have been addressed through political and social policy, while Vietnamese citizens and U.S. Vietnam war veterans believed Dow was ethically responsible. As the case moved through the U.S. judicial system, some of Dow's investors grew uncomfortable with how it was handled. Dow CEO Andrew Liveris was left to wonder what his company could have done differently and what they could learn from the Agent Orange episode that might prevent similar problems in the future. This incident appeared to be a relatively distinct case, but in July of 2007 it was reported that the number of private contract employees in Iraq exceeded that of U.S. military personnel. Consequently, it is likely that companies and their stakeholders will have to address similar issues.

On April 4, 2007, Don Imus, one of the company&s most popular talk show personalities made comments on the air regarding the Rutgers women&s basketball team. According to the transcription from Media Matters for America, Imus said, “ That&s some nappy-headed hos there. I&m gonna tell you that now, man, that&s some … woo. And the girls from Tennessee, they all look cute, you know, so, like … kinda like … I don&t know.” At first, the comments did not seem out of the ordinary for one of radio&s “shock jocks.” However, as the public reaction grew, the situation changed considerably. Under pressure from the public, Moonves reluctantly suspended Imus. But it was too little too late. By the end of the day on April 11, analysts estimated that $2.5 million in advertising revenue was lost. On April 12, Moonves terminated Don Imus& contract.

After Moonves fired Imus, there was still a lot to consider. He really wanted a way for the company to meet the demands of the company&s stakeholders. In addition, he wanted to avoid any more distractions from the firm&s normal day-to-day operations.

Heather Loya started her custom designed wedding invitations business in the aftermath of the September 11, 2001 terrorist attack, when she was no longer comfortable commuting to New York City from New Jersey for her corporate job. In the ensuing years, her business picked up to the extent that she was making a reasonable income from it. She was due to become a first time mother in July 2007. Her impending motherhood made her realize that she would not be able to work long hours in her one-person business after the birth of her child. She had started a webbased business that was set up to sell wedding invitation accessories (such as boxes, ribbons, etc.) procured from various vendors. This business was expected to take less of her time as compared to the custom business, but the custom business made better use of her creative talents. Heather now had to make a decision whether to emphasize the web-based business to compensate for the likely decrease in revenues from her custom business (because of motherhood) or to just continue her custom business in a scaled down form.

Implementing a sustainability strategy requires firms to consider economic, strategic, environmental, and community perspectives. Suitable for MBA, undergraduate, and executive learners, this sustainability case covers innovation, intrapreneurship, and strategy. A technical note entitled, “Corporate Greenhouse Accounting: Carbon Footprint Analysis” (UVA-ENT-0113) is an effective complement. Frito-Lay’s Arizona facility pilots a program to take its snack chip manufacturing off the grid. Decision makers discuss operating, financial, marketing, and corporate strategy as the facility calculates its carbon footprint, converts to non-fossil-fuel energy sources, and stops relying on the scarce local water supply.

A Confrontation of Mindsets: French Retailers Operating in Poland traces the history of French retailers setting up operations in Poland in the mid 90s. The case, however, is set in 2006 when a top retailing executive recalls the important watershed period of 1996-97 when the expatriate managers in charge of setting up the first hypermarkets encountered great difficulties with their new Polish recruits. The managers were not succeeding in transferring the practices and routines that were an essential part of their business model on the home market in France: their Polish employees displayed work attitudes that were the contrary of the initiative and responsibility for enlarged jobs that characterized employees back home. This situation called into question the very viability of their business model in Poland. The case poses very clearly the question of what actions the expatriate managers should decide to take to ensure the store launchings in Poland and future growth. The issues raised concern global versus multi-domestic internationalization strategies, business models, paradigms, corporate culture, management of expats, knowledge transfer and the link between strategic implementation and organizational behavior.