Case studies

Marketing tactics such as pricing, promotion, placement, and product decisions all help business owners create a need for their products or services. What managers seldom realize, however, is that the marketing decisions they make primarily to increase sales and market share have a great impact on society at large and thus have significant ethical implications. These seven caselets, which cover a variety of topics (including “the article of the half-truth,” “creative interview tactics,” and “truthfully representing your company”), explore the ethical implications of decision making in the marketing arena.

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.

For 28 years Alaska, like the vast majority of the nation, has struggled with growing prison populations and shrinking budgets. In 1995, the Alaska Department of Corrections, faced with sanctions unless they ameliorated their crowded prison conditions, looked to the popular practice of contracting out its correctional operations by sending 650 prisoners to a private out-of-state prison. But, as the costs of prisoner litigation and transportation mounted, the state began to consider building its own private prison, a decision which many state lawmakers and business entrepreneurs argued would allow the state to stretch scarce dollars by providing cheaper and better quality prisons, return millions of dollars to the state economy, and create permanent jobs. In this decision case, students are required to put themselves in the role of the Alaska Legislature to determine whether they should permit the building and operation of a private prison in one of Alaska's remote communities. The students must analyze and juggle the complex and often competing set of objectives, values, and political tensions intrinsic to all privatization decisions.

Specializing in local, organic meat and produce, Retail Relay developed a new business model for online grocery shopping and delivery. Having succeeded in the small market of Charlottesville, Virginia, it was considering expanding to other, larger markets. This case focuses on customer lifetime value analysis and how this analysis, when paired with previous experience with consumer promotions, can guide thinking in developing the best strategies and tactics for entering new markets.

Development of legitimate teaching cases demands cases be factual, that is that they use “real people, real companies, real situations,” and, usually, present time. Rarely, do cases deal with historical happenings in which lives, as well as fortunes, could be lost to achieve desired ends. History provides rich material on which to build teaching cases with the added advantage of acquainting students with the past and the influence the past has in shaping the future. Answers to the question of “Why use historical teaching cases” are related to the more general question of “Why study history.” Both questions are addressed.

Business Administration (Marketing).

MBA.

Although it has become fashionable to talk about how things business are changing at a nanosecond pace owing to hyper-competition, disruptive technologies and empowered consumers; the real change has been based on digital revolution and management of information. Most of the new introductions are entering a phase of facelessness from being innovative within a year of their appearance; whereas, as per one estimate, the breakeven volume is achieved after three years. This puts insurmountable financial pressure on marketing companies. In order to remain ahead of competition, they are introducing more and more new products in growth areas. In this paradoxical, complex situation; a reputed marketer in the pharmaceutical arena like Artichem entered a maturing market of Omeprazole whereas growth areas like Lansoprazole, Pantoprazole and Esomeprazole were still open to them. Did they make a mistake? Was it a bad idea to embark upon? Should they go for introducing new molecules even after a successful launch in the same segment?

The student shall be able to: explain the term “positioning” and shall be able to explain why he should go ahead with introducing a brand in an existing and maturing product category; explain the term “product life-cycle” and shall be able to take rational decision in the midst of pressing circumstances to manage a new product in a likely to decline market; and explain the term “new product development” and shall be able to apply the theories of new product development for brand success.

Nil.

Marketing strategy, product positioning, brand building, and economies of scope.

MBA groups, marketing consultants and business management students of undergraduate and postgraduate level.

Abhishek Industries Limited (ABIL) is an entrepreneurial venture of Mr Abhishek Batra that came into being in 1993. ABIL is the leading supplier of Terry Towels to some of world's leading retailers including Wal-Mart, JC Penney and Sears. In spite of some business fluctuations, ABIL has an impressive performance record that is reflected in its financial data. The concern, however, is that of product commoditisation, since established foreign importers and distributors prefer to sell the products under their own brand name. Consequently, even though the export margins may be lucrative; the lack of a brand presence is what bothers the senior management of the company. Given an optimistic domestic business scenario, the senior management is once again evaluating the odds to enter the domestic market using its own brand name. While some of the younger managers are optimistic and want ABIL to emerge as a brand, some senior colleagues are unsure.

The student's skills will be sharpened in working through a problem; it will help the students take an active role of a thinker, analyser, evaluator, decider and implementer; it will assist the students in learning to reason with the given quantitative as well as qualitative data; it will help the students think critically and reason effectively; it will make the students realize that the emphasis is not on solution. Rather, the process of arriving at a solution is more important.

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.

Ethical Entrepreneurship; Internationalization of small and medium enterprises (SMEs).

Bachelor and Master courses in International Management and Entrepreneurship.

A German medical scientist developed a product which was able to absorb alcohol in blood and consequently reduced the alcohol-level. He tested it with the participation of 170 volunteers at a private party. The product was consumed after alcohol consumption and the result was an alcohol reduction by 20-70 per cent. In addition, the volunteers had either no or only small symptoms of a hangover. The students shall discuss the different business models the medical scientist could implement by taking into account ethical issues. To give them necessary working data, the case includes European environmental data (including information about the European food industry and the functional drink market), an insight into the European legal issues of starting a business in the food segment (including definitions of “food”, “food supplement” and “health claim regulation” and how these factors impact entrepreneurial decisions), current events in the European food branch and examples of possible competitors. The case is built on a real product development and on current information and facts.

To become involved with entrepreneurial thinking and entrepreneurial decision-making. To debate ethical issues in the entrepreneurial process. To become aware of the complexity of internationalization in the field of SME as well as to reflect upon and sketch appropriate strategies.

Teaching note.

International marketing, distribution channel management, market entry, strategic management.

Masters level management students and executives specializing in distribution channel management. This case can also be applied to Masters level analysis of strategic marketing.

The case examines BBMCI, a wholly owned subsidiary of a multinational making an entry in the Indian consumer appliances market. The focus of the case is the distribution aspect of the market entry strategy, its formulation and implementation.

The key learning objective is to evaluate distribution channel design and monitoring mechanisms. The case examines the linkage of distribution strategy formulation and the implementation challenges in a large and internationally extended sales organization. The key takeaway would be the need to change the distribution strategy as the organization's position in market evolves.

Teaching note.