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John Williams, senior director of marketing for Microsoft's .NET, was trying to build the .NET brand, a comprehensive family of next-generation connectivity software products. Highlights the challenges of branding and positioning a complex technology offering. The first challenge facing Microsoft was to develop a common definition of .NET, which had been in flux over the prior two years. The second challenge was to choose between an umbrella branding strategy, a sub-branding strategy, and an ingredient branding strategy. The third challenge was to create a value proposition that would appeal to three very different target audiences: business decision makers, IT professionals, and developers.

To analyze the branding and positioning of a complex new technology offering: by defining a new product offering for public understanding and comprehension; evaluating brand strategies for optimal effect, considering possible hurdles to implementation of each strategy; and developing a value proposition attractive to differing audiences.

After reading and analyzing the case study, the students would be able to identify the main stakeholders and decision-makers and their importance and influence on the environment for a product, evaluate the value chain of the product and critical decision-makers, evaluate the various ways to avoid falling into the trap of greenwashing and examine the marketing strategy to market an environmentally friendly product.

LIKO-S is a Czech manufacturing and construction company. The company has been designing and creating intelligent solutions, such as green facades or vertical greenery systems, to save energy in building heating and cooling systems. The company launched green facades in the Czech market. However, the main obstacle was the need for supporting data to showcase the positive environmental impact of green facades. Under these circumstances, Libor Musil’s main objective was to overcome prevalent misconceptions about green facades and find a suitable market segment. The situation worried the company, as LIKO-S had heavily invested in developing and marketing the green walls. The management had to tackle this challenge as soon as possible to recover the substantial research and development and marketing investments. Furthermore, owing to lack of information, even genuinely sustainable products were seen as greenwashing. In addition, bad or wrong customer perceptions of these walls might spill over to other products, tarnishing the company’s image and threatening its survival in the domestic market. Under these circumstances, competitors might enter the Czech market, jeopardizing the company’s overall profits. Consequently, Libor was in a great dilemma about managing the financial and reputational risk of the company. Should Libor close the green walls unit, explore different markets/uses or help increase awareness among the general population about green walls by finding a suitable marketing strategy?

The case study was designed for graduate-level students in the strategic management (CSR and innovation module) courses. However, the case could also be an excellent addition to marketing courses dealing with customers’ perceptions of innovative products and strategies to improve the adoption of the product.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship

Spiegel Online (www.spiegel.de) is the leading news Web site in Germany. The site was first designed to accompany Der Spiegel, one of Europe's largest and Germany's most influential weekly magazine, which has a weekly circulation of around one million. The site's content is produced by a team of more than fifty journalists writing in several categories: politics, business, networld, panorama, arts and entertainment, science, university, school, sports, travel, weather, and automobiles. The original content is complemented by articles purchased from news agencies and selected articles from the print edition. Spiegel-Verlag is a major contributor to the Hamburg Media School, which offers professional master's degree programs in Media Management (MBA), film, and journalism. In their second year, MBA students typically engage in consulting projects with major media companies. In a recent assignment, Spiegel Online posed two questions to the MBA team: are there any chances for an economically successful entry into the market for interactive classifieds? And if so, what should the business model look like in detail? A student team analyzed markets for classified ads and found one market segment that appeared to be particularly promising: the market for art objects. During the development of a business plan for a new venture in this market it became apparent that there is much uncertainty about the key input parameters to the business plan. As a result, it is very difficult to assess the viability of the business idea. How can the team properly account for the uncertain input parameters? What is the impact of this uncertainty on the bottom line? Will a Web site for art objects earn or lose money? How can the team communicate this uncertainty to a group of high-level decision makers who want a simple “go or no-go” recommendation?

The objective is to make students aware of the applicability of Monte Carlo simulation to the analysis of complex business plans. Students should learn how to explicitly account for uncertain inputs in a business plan, how to assess the impact of uncertainty on the bottom line via Monte Carlo simulation, and how to communicate the results of their analysis to high-level decision makers.

The decision maker is in charge of procurement auctions at the department of transportation of Orangia (a fictitious U.S. state). Students are asked to assist him in estimating the winning bids in various auctions concerning highway repair jobs using data on past auctions. The decision maker is faced with various professional, statistical, and ethical dilemmas.

To analyze highway procurement auctions from the buyer-auctioneer perspective, establish basic facts regarding the project price-to-estimated cost ratio, set up and estimate a structural regression model to predict the winning bid, and compute the probability the winning price will be below estimated cost. Difficulties include heteroskedasticity, logarithmic specification, and omitted variable bias. Also to estimate a Logit regression and predict bidder collusion probability.

What happens when a company is faced with a unique market challenge with the potential to change the way business is done—a true market disruption? This was the challenge faced by the European business team of DuPont's Tyvek Housewrap business. The adoption of the Kyoto Protocol created new challenges for the construction industry in the United Kingdom that the DuPont team felt it could meet. To enforce the Kyoto Protocol, the U.K. government threatened to fine utility companies and builders who did not adhere to new emissions standards. Deploys the Innovation Radar framework, which encourages a business to think through all the issues of a business system, leading to a successful introduction and a sustainable business. DuPont's European Tyvek team had to devise a solution at the intersection of multiple elements. Specifically: Who should it target? How should it describe the product's value proposition? Through what channels could it reach the key decision makers? How could it overcome the inertia of the existing business system?

To illustrate that all the issues relevant to bringing an innovation to market must be recognized and dealt with in an integrated fashion when introducing major new business initiatives; that the Innovation Radar is a useful framework that integrates key questions around WHAT the product is, WHO the key customers are, HOW the product affects their desired outcomes, and WHERE the product should be placed in market; and that the elements in the radar comprise a complete business system of innovation.

Describes how UPS created UPS Supply Chain Solutions, an entirely new business, with carefully selected target market segments for which unique and extensive value offerings were designed. To build this business UPS made numerous acquisitions and successfully resolved post-acquisition integration challenges in compensation, information systems, personnel policies, and organizational culture.

After completion of the case study, students will be able to examine the financial implications of Maghreb Steel’s substantial investment in the Blad Assolb complex in 2007 within the restructuring plan; explore how this decision influenced the company’s financial health and strategic position in the steel market, within the context of the restructuring plan; assess the impact of the 2008 economic crisis within the restructuring plan; analyze how the crisis affected the company’s pricing strategies, profitability and overall business strategy; investigate the financial and strategic consequences of the hot rolling activity initiated as a result of the Blad Assolb project within the company’s restructuring plan; and critique how this venture impacted the company’s operations, cost structure and competitiveness in the steel industry, aligned with the restructuring plan.

This case study deals with the only flat steel producer in Morocco: Maghreb Steel, the Moroccan family-owned company created in 1975 by the Sekkat family. It was a leading steel company. At the beginning, the company was specialized in the field of steel tubes, but thanks to its growth ambitions, the Sekkat family had made Maghreb Steel a major player in the Moroccan steel sector. In the same logic of development, the top management of Maghreb Steel launched in 2007 in the adventure to create the first production complex of cold rolling in Morocco – an investment that pushed Maghreb Steel to resort to a debt of more than 6bn dirhams (DH) with a consortium of six banks and would have allowed the company a huge leap in growth, except that the decision-makers of the group Sekkat could not see coming the economic crisis of 2008 causing the fall of steel prices by 62% compared to 2007. Thus, from its effective launch in 2010, the activity of hot rolling would become, for the company, a regrettable orientation. Moreover, the national market could not absorb all the production of the complex that the company called Blad Assolb. In response to this difficult situation, Maghreb Steel decided to store its goods to avoid selling at a loss. Faced with this situation of sectoral crisis and deterioration of its activity, Maghreb Steel lost its ability to honor its financial commitments with the banking consortium. From then on, the company became a case of failure, and the recovery measures had not ceased to be duplicated by the various stakeholders: State, Sekkat family, creditors and management of the company, having only one objective in mind: Save Maghreb Steel! This said, the present case study is dedicated to the financial and strategic analysis of the current situation and the evolution of the company throughout the crisis period to finally propose a suitable recovery plan to save Maghreb Steel.

The case study can be taught to students of master’s degrees in financial management as a synthesis of finance courses. It can also be used to train executives and managers working in family businesses as part of professional certification training.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

Ethical decision making, business ethics.

This case is applicable to MBA, EDP and EMBA courses.

TOREAD, a professional provider of outdoor equipment in China, started in business by producing and selling tents. To meet market demand, TOREAD expanded its product line which ranges from outdoor durable tent products to “pan-outdoor” products including footwear and clothing. During the critical expansion phase, TOREAD was challenged by a quality problem in a batch of outsourced sandals that had been manufactured by a contracted supplier. By researching different options and going through an ethical decision making process, TOREAD made the choice of destroying all “problem sandals”. Since then, TOREAD has focused development on product quality improvement and product innovation to establish a sustainable brand image and generate social benefits. TOREAD's decision making in the critical development phase helped it to become the leader in the outdoor product industry in China.

This case may be used for courses such as business ethics and strategy. By learning this case, students can understand the process of making ethical decisions when facing moral dilemmas among corporate decision makers, employees and relevant interested parties, and learn how to make strategic decisions to balance company profit growth and social benefits in critical development phases.

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

General: professional ethics; corporate social responsibility; charity. Specific: the ethical issues of philanthropy; corporate philanthropy; selection of a philanthropic organization; and how much corporate giving is appropriate.

MBA.

C.P. Manuel Pérez-Sánchez, after reading an article about how famous businessmen in the USA are dedicating their fortunes to charity, begins to wonder about his own business' lack of charitable involvement. He wonders whether his own business, Biznet Norteamérica, located in Querétaro, México, is profitable enough to begin to give back something to the community. What he learns about corporate charity in México leaves him more confused than anything. He is left with the difficult decision of trying to determine whether, how much, and to whom should he donate some of his business' profits.

Ultimately, the case has a threefold goal. First, to raise awareness about the issue of corporate charity (as opposed to personal charity). Second, to fill a void in the literature of business ethics in México, especially regarding the question of corporate charity. And third, to allow future Mexican business leaders the opportunity to begin to discuss what and how they should think about the issue of corporate charity, particularly its ethical component. The case is real and reflects the actual struggle of a Querétaro business person with no ethics background to come to some tentative conclusions regarding this new (for him) issue. The case could appeal to many of the students because they, like the protagonist, would one day be a part of a moderately successful Mexican enterprise. This case could allow them be able to “put themselves in the shoes” of the decision-maker as a rehearsal for their own future decisions about business charity.

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

Decision making, behavioural decision making, heuristics, optimistic bias, confirmatory bias, anchoring bias, ready mix cement (RMC) business in India.

Post graduate management course, executive training program in the subject areas.

Arco is a Projects and Infrastructure-sector company. Some of its key officials, believing that entering the RMC can be beneficial for Arco, plan entry into the manufacturing of RMC but order a feasibility report. The report confirms the hunch and Arco starts the business under the aegis of its associate, EG Ltd (EGL) which is into equipment rental business. At this time a new dimension of reality opens up but the senior officers refuse to accept a revised proposal which is adjusted to the new realities. After a few months and some losses, EGL closes down the RMC plant and rents it out.

This case study is developed with a purpose to provide a basis to discuss how decisions are taken in real life and how various behavioural elements affect the quality of decisions that affect not only the decision makers but many others and their organizations. Focus is especially on prejudice, heuristics and bias that creep into important organizational decisions such as venturing into new business.

Teaching note.