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This case has two primary purposes. First, it allows students to examine how cognitive bias can affect decision making in stressful situations. Students explore why individuals make flawed choices. They learn about how managers shape the context and the process through which teams make decisions. For instance, automation can create a climate in which people then struggle to cope with the unexpected when it happens. Students examine why individuals make these systematic errors in judgment. The case demonstrates that leaders need to be aware of the traps that individuals and teams encounter when they make decisions in crisis situations, and it enables students to discuss the strategies that leaders can employ to avoid these traps. Second, the case provides an opportunity to examine a catastrophic failure in detail. Students discover that it can be nearly impossible to identify a single factor that caused the failure. Instead, they learn how to apply multiple theoretical perspectives to examine a serious organizational breakdown. They become familiar with important concepts from behavioral decision theory, such as complex systems theory and how it interacts with cognitive bias.

The technical report released by the French Aviation Authority along with the primary flight cockpit voice recorder data were used as the basis for this case. Other available public data such as news reports were used to round out the case study.

On June 9, 2009, on a routine flight from Rio de Janeiro to Paris, Air France 447 (AF 447), carrying 220 people crashed in the mid-Atlantic Ocean. Drawing from various first-hand accounts (cockpit voice recorder) and secondary evidence of the tragedy, the case provides a detailed account of the key events that took place leading up to the accident. The case describes how the pilots on AF447 were confronted with a scenario they had not faced before, and through the confusion made a series of errors. Through many of the quotes in the text, readers gain an understanding of the impressions and perceptions of the pilots, including how they felt about many of the critical decisions and incidents during the last minutes of the flight. The case concludes by highlighting the main findings of the BEA report.

This case study is appropriate for undergraduate students studying organizational behavior. It is also appropriate for MBA-level leadership and behavior classes.

At the dawn of the twenty-first century, Boeing and Airbus, the leading manufacturers of large aircraft, were locked in a battle for market share that drove down prices for their new planes. At about the same time, the two industry heavyweights began developing new aircraft families to address the future market needs they each projected.

Aircraft take many years to develop, so by the time the new planes made their inaugural flights, significant changes had occurred in the global environment. First, emerging economies in the Asia-Pacific region and elsewhere were growing rapidly, spawning immediate and long-term demand for more aircraft. At the same time, changes to the market for air travel had created opportunities for new products. These opportunities had not gone unnoticed by potential new entrants, which were positioning themselves to compete against the market leaders.

In October 2007, the Airbus superjumbo A380 made its first flight. The A380 carried more passengers than any other plane in history and had been touted as a solution to increased congestion at global mega-hub airports. Four years later the Boeing 787, a smaller long-range aircraft, was launched to service secondary cities in a point-to-point network.

The case provides students with an opportunity to analyze the profit potential of the global aircraft manufacturing industry in 2002 and in 2011. Students can also identify the actions of participants that weakened or intensified the pressure on profits within the industry.

Audio format (.mp3 file) available with purchase of PDF. Contact cases@kellogg.northwestern.edu for access.

Marketing: New Service Launch; Relationship Marketing; Direct Marketing.

This case could be taught in marketing management, services marketing or strategy courses, in the product development or service launch modules at the graduate level; alternatively it could also be used in the promotion module for the illustration of direct marketing (DM) tool application; and it could also be used as a capstone case for the introductory Principles of Marketing course at the undergraduate level.

The case examines the launch of a new air ambulance service in Karachi, Pakistan; a venture of Akbar Group Jet services; Princely Jets (Pvt) Ltd. The case describes the first mover advantage of the service and the marketing strategy recommended by the Chief Executive Officer (CEO), Mr Ghouse Akbar. The major concern is whether the strategy is forceful and compelling enough to secure approval from the board. The major issues include the role of DM processes and relationship marketing tools to encourage a value-added premium service which had no precedence of demand and practice. Concepts to thrash out in class also include customer profiling and segmentation along with how best to create awareness and generate a sustainable basket of customers for the high-price value-added low-use service.

Discuss and illustrate the importance and benefit of market research information for making a decision; how to create awareness and customer recognition and cultivate demand for a new and unsolicited service; identify appropriate and effective promotion tools to achieve required customer demand, brand recognition and customer value; how to launch a premium priced unsolicited service in a niche market?; and exhibit the synthesis of the four P's in a new product launch marketing strategy.

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

This case has three primary objectives. First, it allows students to think through a conceptual cost and benefit analysis associated with the decision-making process in line with basic economic thinking. Students will revisit core concepts of marginal benefit vs marginal cost, the notion of opportunity costs and the role of sunk costs in this type of analysis, while also highlighting the nature of market structure, oligopolies and competition across firms in an industry. The second goal of this case is to consider the role of business ethics in the DC-10 case: specifically, to consider the potential influence of moral awareness and moral disengagement in unethical decisions made by McDonnell Douglas. Students will develop an understanding of these concepts and solidify their learning by applying them to the case and engaging in active discussion. Finally, the third goal of the case allows students to explore organizational culture and specifically offer recommendations for organizations thinking about the link between decision-making, the role of ethics and culture.

The technical reports released by the National Transportation Safety Board along with secondary data such as available public data such as news reports were used to round out the synopsis of the case study.

This case explores the accidents of two McDonnell Douglas DC-10s in the early 1970s at the onset of the jumbo jet race between Boeing, Lockheed and McDonnell Douglas. It explores the series of events during the “Windsor Incident” in 1972 and the subsequent accident over Paris in 1974. It explores the reasons why the cargo door on the DC-10 was faulty and subsequently why the door was not fixed. It examines the interplay of industry suppliers such as McDonnell Douglas and how they interact with oversight authorities such as the Federal Aviation Authority. The Teaching Note focuses on the economic thinking at McDonnell Douglas, behavioral ethics and organizational culture.

This case is best explored over a 90 min session but could be expanded to take up one 3 h session. The authors have used this case format in an undergraduate organizational behavior class, an MBA Leadership and Organizational Change class, and an MBA Economics of Managers class. It works particularly well in the MBA setting, as students with work experience can see the links between the mistakes made by McDonnell Douglas and their workplaces.