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Encyclopædia Britannica was the leading provider of encyclopedias in the English language, but after sales declined rapidly in the early 1990s the company was forced to file for bankruptcy. Many different organizational and market factors contributed to this crisis, such as the diffusion of the PC, the invention of Encarta, the technical challenges of moving text to electronic formats, and the difficulties of inventing a new format while also operating the leading seller of books. Looking back, what could the company have done differently?

To illustrate important themes on a leading firm's response to technical opportunities and threats; teach students about technological waves, technological disruption, and different concepts of obsolescence; and examine strategic concepts such as attacker's advantages and skunk works.

In July 2001, a new CEO joins this small manufacturer of CD-ROMs and DVDs to discover that the firm is in the midst of a financial crisis, induced by rapid growth. The CEO asks an analyst for help with five tasks: (1) review historical performance of the firm; (2) forecast financing requirements for the next two years; (3) exercise the forecasting model to identify “key driver” assumptions; (4) estimate Star River's weighted average cost of capital; and (5) analyze a proposed investment in a packaging machine. The analyst must offer insights and recommendations based on the work. The aim of the case is to exercise students’ abilities in financial forecasting and analysis and in the analysis of capital projects. Generally, the case offers a good omnibus review of foundational tools and concepts.

Chris Barnett, director of global business solutions for Rand McNally, was deliberating how Rand McNally should respond to the emergence of wireless technologies for its traditional business of providing static maps and route-planning services. As maps became electronic, interactive, mobile, and enhanced with value-added features, Rand McNally's mapping business was gravely threatened. The opportunities for Rand McNally weren't obvious, and the pace at which wireless technology would disrupt its traditional business was also unclear. Barnett was considering three opportunities: syndicate Rand McNally's brand and mapping content to popular Web sites, become a provider of value-added services to businesses, or focus on automobile manufacturers and try to forge relationships for providing in-car mapping services.

To discuss organizational design, potential responses to disruptive technologies, and market opportunity analysis in order to identify the kind of technology, organizational, and sales force restructuring required to align Rand McNally's organization with the new environment.

Since the late 1980s, Progressive Casualty Insurance Company has maintained a strong position in the nonstandard auto-insurance market (auto insurance for high-risk drivers). Progressive’s goals in the 1990s are to expand its insurance coverage to include standard and preferred customers (drivers with clean driving records and no accidents). The company never advertised before 1994; as a result, consumer awareness has been very low. Progressive faces strong competition in a varied insurance industry. Companies like Allstate, the nation’s largest underwriter of nonstandard auto insurance, and State Farm, with 21.1% total market share, present a challenge to Progressive as the company strives to make its products available to all drivers. The case focuses on building the company’s brand through advertising and enhancing product differentiation through technology. A teaching note is available to registered faculty, along with a video supplement to enhance student learning.

Todd Wilson, manager of partner development at Educational Technology Corp., needed to determine the targeting, positioning, and selling strategy for its innovative Interactive Mathematics software for the college market. This required determining what types of colleges to target and which stakeholders to focus on within institutions. His task was complicated by the unclear objectives of nonprofit institutions and the differing motivations of teachers, students, and college administrators in adopting software-based learning technology. Highlights the difficulties in innovation adoption within large nonprofit institutions and the challenges in marketing to institutions with complex decision-making processes, multiple influencers, and conflicting motivations.

Service innovation, ICT-enabled services, museum, cultural and creative industries.

Graduate-level courses of “Innovation Management,” “Service Innovation,” or “Cultural and Creative Industries”.

In 2006, the National Palace Museum (NPM) in Taipei, Taiwan, announced its new vision “Reviving the Charm of an Ancient Collection and Creating New values for Generations to Come”. In recent years, the NPM has been shifting its operational focus from being object-oriented to being public-centered, and the museum has held not only the physical forms of artifacts and documents but also their digital images and metadata. These changes would inject new life into historical artifacts. In addition, archives as its collections would be given a refreshingly new image to the public and become connected with people's daily lives. Among these endeavors for displaying historical artifacts online and prevailing Chinese culture in the modern age, the key issues are related to digital technology applications and service innovations. The service innovations would be further divided into information and communication technologies (ICT)-enabled ones and non-ICT-enabled ones. These shifts clearly claim that adopting digital technologies and innovative services can bring positive impacts to the museum. The NPM administrative team wants to keep infusing life into ancient artifacts and texts, sustaining curiosities of the public for Chinese culture and history, and invoking their interests to visit the NPM in person. However, to develop for the future while reviewing the past, the NPM administrative team has to meditate on the next steps in terms of implementation of service innovations.

Students will learn motivations of digital establishment and service innovations from the organization perspective and the necessities of technological implementation. Students will understand the difference in innovations between ICT-enabled services and non-ICT-enabled services. Students would be able to understand the process of developing a new service. Students will be aware of challenges the organization would face in developing a new service.

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

By 2006, Wikipedia had achieved the type of success that only a handful of young organizations could ever dream of reaching. It had grown from almost nothing in 2001 to become one of the consistently highest ranked and most visited sites on the Internet. This success brought new problems at a scale that no organization of this type had ever before faced. Exposes students to Wikipedia's brief history, the causes of its success, and the issues it faced going forward. Two topics form the focus: The first concerns the rules and norms for submission and editing, which raise questions about the ambiguity of Wikipedia's authority and the virtual cycle that keeps the site going; The second concerns the need to alter its practices as it gains in popularity, raising questions about what any wiki site, profit-oriented or open source, must do to scale to large numbers of participants and entries. These issues arise as part of a discussion about the site's priorities going forward.

To teach the factors that shape Wikipedia and wikis in general. Students will become familiar with the internal operations of wikis, open-source programs for developing text from many users. Also to facilitate teaching about factors that shape reference sites on the Internet, dividing discussion into three sub-topics: defining what Wikipedia is and what it is not, analyzing how it works, and understanding why it generates controversy in some circles.

Describes the history of the tobacco industry and its emergence as an extremely effective marketer and non-market strategist. After years of success, both publicly and politically, the leaders of the tobacco industry are faced with mounting political pressure and the financial threat of litigation from class-action lawsuits. The leaders face an industry-wide strategic decision of whether to acquiesce to government demands in exchange for immunity, focus on judicial success, or develop a new course of action.

To evaluate the formulation and implementation of non-market strategies in the context of regulatory, legislative, and legal institutions. To understand how various aspects of the non-market environment interact and how these environments not only change over time, but change market competition within an industry. Further, to formulate and decide between firm-specific and industry-wide strategies. Finally, to appreciate and reflect upon the potential conflict between non-market strategies and ethical concerns.

This case was developed to serve as a foundation for student discussion of the use of contingent forms of payment in M&A. The protagonist in the case represents the buyer, and must design terms of contingent payment (“arnout”) that will protect the buyer if the rosy future does not occur, yet reward the seller if it does. Students are given completed discounted cash flow (DCF) valuations of the target (Digitech) under both the seller's and buyer's forecasts, which reveal a wide gulf in valuation. The protagonist seeks to bridge this gulf through a combination of fixed and contingent payments to the seller. Two different earnout designs are suggested in the case. Students must simulate the value of the earnout to estimate the expected value of this provision from the standpoints of both the buyer and seller.

Quantifying the efficacy of marketing is an age-old challenge. As John Wanamaker said a century ago, “Half the money I spend on advertising is wasted; the trouble is I don't know which half.” The big difference today, however, is that the Internet enables detailed tracking of marketing campaigns in real time, or near time. Exemplifies how to leverage the Internet to dramatically improve the efficacy of marketing. Centers upon the Microsoft Security Guidance marketing campaign, which was designed to change IT professionals' perception of Microsoft's software product security. The integrated marketing campaign involved print media, analyst relations, and online advertising. The advertising was designed to drive IT professionals to a Web site on security guidance, then sign them up for free in-person security training classes. Illustrates two important best practices for marketing in the Internet age: first, the campaign was designed to be measured, and second, agility was specifically designed into the campaign. In addition to tracking weekly click-through data from the print and online advertising, the campaign also used online pop-up customer perception surveys. Analyzing the click-though data, Microsoft realized it had a problem at the end of the first week of the campaign–there were far fewer signups for the training sessions than anticipated. By the end of the second week the campaign was changed, resulting in a huge improvement in efficacy. Creates a scorecard illustrating the pros and cons of the Microsoft approach compared to a more traditional campaign. Illustrates how, rather than creating big-bang campaigns, high-performing marketing organizations today are continually experimenting. They build flexibility into campaigns and design them to be measured.

To learn how to leverage the Internet in marketing campaigns, analyze click-through data and online survey results acquired in near time, and learn how it is used to fine tune and dramatically improve a campaign. Furthermore, illustrates how nonfinancial metrics can be used to quantify marketing efficacy.