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Atari, a maker of video games, went through several owners over the years winding up controlled by Infogrames, a French publisher of video games. Infogrames later sold Atari shares in a secondary public offering, eventually reducing the parent’s share to 51.6 percent by September 2005 creating a complicated two-tier ownership structure. Two levels of management made it difficult to get things done. The financial structure was a problem for Infogrames because the French company had to consolidate 100 percent of Atari’s results even though it only owned 51 percent of the company. Atari was generating substantial losses, had defaulted on its debt, and was faced with the possibility of filing for bankruptcy without more working capital. The independent directors of Atari, when confronted with an unsolicited Infogrames buyout offer, had several options: (1) agree to the $1.68 offer (take the money and run); (2) pursue a white knight (a buyout from another investor of company that would be willing to pay a higher price and invest working capital); (3) file a lawsuit to stop the takeover to buy time or perhaps force Infogrames to increase its offer.

Communications in a turnaround How planning and executing a communications strategy is as important as other functional actions Dealing with an international ownership base with a U.S. turnaround of a legacy brand with no hard assets Fiduciary duty and governance issues arising from a takeover offer.

This case presents a series of decision points along with a simple process for ascertaining underlying source(s) of disagreement, which represents an important managerial tool. The president of First Mates' Wholesale Boating Supply Company is faced with the reality of missing year-end earnings projections and breaking a 30-year streak of successive earnings increases. He has asked all his direct reports to meet with their teams and brainstorm about ways to finish the year in strongly and successfully. The case presents a number of those ideas for students to debate and discuss as they decide which ones the company should pursue.

Although Google had a stellar performance in Web search, many of its other services, such as Google Video, were less successful. This case describes how YouTube came to dominate the video market for user-generated content (UGC), while Google Video tried various entry strategies and ultimately failed, ending with the acquisition of YouTube. It also reviews the various competitors in the UGC market, chronicles the entry of established and new players in the area of professionally generated content (PGC), and outlines the key challenges related to monetizing the acquisition of YouTube for Google.

The case discusses when and how to enter winner-take-all markets characterized by very strong network externalities. It focuses on the strategies of new entrants vs. those of incumbents in adjacent industries that seek to leverage their resources and skills. Further, it sheds light on how new industries are created, how convergence is changing competitive forces, how important it is to be a first or late mover in new markets, and how successful entrants may struggle to achieve profitability.

Strategy.

This case can be used on a strategic management course in the second year of an MBA programme, any special elective course on the media and entertainment industry and in executive education programmes to demonstrate the application of strategic management concepts and frameworks.

The Indian film industry was the largest in the world and the seventh largest in terms of revenue. Significant number of movies were made in languages such as Bengali, Marathi, Telugu, Tamil, Malayalam and Kannada, with Hindi commanding the highest number. The film industry in Karnataka made movies in the Kannada language. The industry was plagued by a host of issues with the industry contributing just 2 per cent of the revenues and box office success rate at just around 25 per cent. The state government had set up Karnataka Chalanachitra Academy with the objective of promotion and development of the movie industry in Karnataka. The Chairman of the academy, Shailesh Singh, was extremely concerned about the poor success rate of Kannada movies and was contemplating various options of reviving the ailing Kannada movie industry.

The expected learning outcomes are as follows: application of strategic management frameworks in the context of the movie industry; analysis of industry issues from the long-term and short-term perspectives; study of different entities in the movie industry and the roles they play and their interdependence; applying learning to suggest survival strategies in an extremely competitive market; and insights into the role of government in the media/entertainment industry.

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

CSS 11: Strategy.

The case opens with Martha Stewart's 2005 release from prison following her conviction for obstructing an insider-trading investigation of her 2001 sale of personal stock. The scandal dealt a crippling blow to the powerful Martha Stewart brand and drove results at her namesake company, Martha Stewart Living Omnimedia (MSO), deep into the red. But as owner of more than 90 percent of MSO's voting shares, Stewart continued to control the company throughout the scandal.

The company faced significant external challenges, including changing consumer preferences and mounting competition in all of its markets. Ad rates were under pressure as advertisers began fragmenting spending across multiple platforms, including the Internet and social media, where MSO was weak. New competitors were luring readers from MSO's flagship publication, Martha Stewart Living. And in its second biggest business, merchandising, retailing juggernauts such as Walmart and Target were crushing MSO's most important sales channel, Kmart. Internal challenges loomed even larger, with numerous failures of governance while the company attempted a turnaround.

This case can be used to teach either corporate governance or turnarounds.

Students will learn:

• How control of shareholder voting rights by a founding executive can undermine corporate governance

• The importance of independent directors and board committees

• How company bylaws affect corporate governance

• How to recognize and respond to early signs of stagnation

• How to avoid management actions that can make a crisis worse

• How weaknesses in executive leadership can push a company into crisis and foster a culture that actively prevents strategic revitalization

How control of shareholder voting rights by a founding executive can undermine corporate governance

The importance of independent directors and board committees

How company bylaws affect corporate governance

How to recognize and respond to early signs of stagnation

How to avoid management actions that can make a crisis worse

How weaknesses in executive leadership can push a company into crisis and foster a culture that actively prevents strategic revitalization

Are hedge funds heroes or villains? Management of Blockbuster, Time Warner, Six Flags, Knight-Ridder, and Bally Total Fitness might prefer the “villain” appellation, but Enron, WorldCom, Tyco, and HealthSouth shareholders might view management as the real villains and hedge funds as vehicles to oust incompetent corporate managers before they run companies into the ground or steal them through fraudulent transactions. Could the pressure exerted by activist hedge funds on targeted companies result in increased share prices, management accountability, and better communication with shareholders? Or does it distract management from its primary goal of enhancing long-term shareholder value?

To determine the benefits and disadvantages of activist hedge fund activity from the perspective of corporate management and shareholders; to examine if a hedge fund's suggested corporate restructuring could create greater shareholder value; and to explain the changing roles and perspectives of hedge funds.

This case examines the April 2007 decision of British music company EMI to suspend its annual dividend as the company struggled to respond to the effect of digital audio distribution on its core business. The EMI case is intended to serve as an engaging introduction to corporate financial policy and themes in managing the right side of the balance sheet. The case contrasts EMI's storied success with artists such as the Beatles, the Beach Boys, Pink Floyd, and Norah Jones with its recent inability to succeed in financial markets. In light of takeover threats and restructuring costs, EMI's CFO Martin Stewart must recommend EMI's dividend policy.

The case offers a study of change management in the pharmaceutical industry in India.

The case is designed for undergraduate and postgraduate students to examine strategic decisionmaking in the context of mergers and acquisitions (M&As), firm capabilities and management practices. In particular, it has important pedagogical lessons for businesses eager to start operations in emerging countries. Students learn to recognize the unique nature of the pharmaceutical market and the factors affecting the demand and supply of drugs, including the economics of generics. The case can be discussed in one class session of approximately one-and-a-half to two hours duration.

In 2012, the pharmaceutical industry in India was undergoing dynamic changes. There was keen interest among MNC pharmaceutical giants to buy up Indian generic manufacturing companies since their revenues were drying up with the impending patent expirations of many blockbuster brand name drugs. Japan's Daiichi Sankyo's had taken over the largest Indian pharmaceutical company, Ranbaxy Laboratories, known for its heritage of process innovations and market leadership. However, after the acquisition, Ranbaxy slipped to third position in the domestic market and was facing multiple problems including net losses and falling share prices, cultural differences in management practices, recall of drugs from foreign markets and a US FDA ban on its manufacturing plants. Further, Ranbaxy had always been viewed as a national champion and a customer-friendly company but drug prices had increased after the merger causing problems of affordability. The new CEO of Ranbaxy was facing a dilemma: how to regain the company's position as the market leader. Students are asked to advise the CEO of Ranbaxy how to tackle the challenges arising from the integration of an Indian company with a Japanese company. More specifically, the case focuses on M&A as a strategy for growth and also touches on issues related to competition, regulation, innovation and corporate governance.

The case discusses the different motives behind the deal for Daiichi Sankyo and Ranbaxy and why it was a strategic move by both the alliance partners. The case also raises issues of corporate governance for the management of Ranbaxy and the need for a proactive corporate social responsibility (CSR) strategy. The case provides students with the opportunity to develop their analytical skills in a real-life setting and apply theoretical concepts to the consideration of the various issues raised by the acquisition deal.

Teaching notes are available; please consult your librarian for access.

This case is based on an existing firm. The names have not been changed, and all data on the firm’s history and opportunities is accurate. Primary data is based on interviews with the owner of the firm. One of the authors is a client of the studio and friend of the owner. The case has been reviewed and approved by Jill Murphey, owner of yogaErie. The purpose of this paper is to introduce students to industry analysis, to entrepreneurial decisions and to issues with organizational growth and change.

Jill Murphey, owner of Yoga Erie, is considering whether to or how to expand her studio operations into adjacent communities. Her studio has been very successful since she opened in 2009: the studio has been named Erie’s Best for most of the years since then. Classes were filled and students were asking about the prospects of a satellite studio in other parts of the community. Information on the options Murphey was considering are presented as well as Murphey’s motivations in opening her own studio, and the opportunities as well as concerns she faced in the expansion decision.

This case was originally targeted toward graduate and undergraduate courses in Strategy because of the industry definition and diversification problems but can also be used in classes on Organizational Change or Entrepreneurship.

Focuses on Apple Computer's launch of iTunes and iPod as a way to give Wintel users a relationship with Apple. Deals with issues of brand equity, corporate and brand goal setting, target selection, and matching product and service characteristics with goals and targets. Also allows for a discussion of channel partners, their interests, and their impact on the likely success or failure of a strategy.