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The case begins with newly appointed chairman and interim CEO Garo Armen dwelling on the significant issues that Elan Corporation, an Irish pharmaceutical company, faces. Its share price has plummeted 96% after accusations of accounting fraud and the discontinuation of an important clinical trial due to the drug's severe side effects. As a result, Elan faces insolvency. About $2 billion in debt that could no longer be satisfied in stock will soon mature, and there are questions regarding the company's structure and various operating concerns. Armen is also concerned about the ethical consequences of the company's failing and thus not being able to develop potentially life-saving medicines. Armen must decide what the nature of Elan should be moving forward and what strategy it should adopt. The operational and financial issues discussed in the case are complicated by Elan's status as an Irish company with significant international operations. The case closes with Armen reflecting on the decisions he has made—which students should critique and suggest alternatives to—as well as an open decision on choosing a successor CEO.

1. Crafting a vision and strategy for a newly streamlined organization and implementation 2. Balancing the complexities of an international corporation in a turnaround situation 3. Quantitatively identifying the probability, advantages, and disadvantages of bankruptcy 4. Succession planning decision making 5. Responding to fraud accusations 6. Managing a distressed workforce and retaining key employees

Human Resource Management

Postgraduate business students, particularly MBA students.

This case examines the working environment of Fritz Publishing, a small independent South African publishing company. Fritz Publishing was established in 1960 by Nick Fritz. After his retirement, ownership passed to his son, Martin. In 2011, Martin Fritz decided to sell the company to the Prys Group, an international publishing house headquartered in Germany. February 2011 saw the arrival of a newly appointed CEO for Fritz Publishing, Vadim Arshavin, who had already experienced excellent financial results as the head of another publishing house. In the wake of his arrival, the company experienced several changes. The case highlights the challenges at Fritz Publishing that have resulted in a growing sense of dissatisfaction. After Martin Fritz sold Fritz Publishing, the organisational culture shifted quite drastically which created challenges for managers, employees and customers alike. Employees, including some members of management, are de-motivated, disengaged and frustrated because of the leadership style and behaviour of the new CEO Vadim Arshavin and consider their psychological contracts to have been breached. The case explores factors that have helped create this situation. It considers challenges to the sustainability of the organisation given recent events including an internal employee engagement survey and feedback from key customers. The case further examines the potential dangers that toxic leadership creates within organisations and encourages discussion on ways this form of destructive leadership can be handled.

The learning objectives to be drawn from the case are: to assess the impact of leadership on organisational culture; to analyse how leadership impacts the psychological contract; to identify the cross-cultural factors at play in an emerging market organisation and to understand the way a toxic leadership style can detrimentally affect a high-performance workplace. In addition, there are further learning objectives that can be explored. These are: to examine the change process and associated challenges with the introduction of new leadership into a family-type organisational culture; to understand how breach can be avoided and/or how the psychological contract can be reconstructed.

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 6: Human Resource Management.

Information about Volkswagen’s human and animal testing was obtained from the secondary sources cited.

In 2014, Volkswagen (VW), BMW and Daimler funded an institute to conduct research to support their position that diesel engines are cleaner and safer than other fuel alternatives. One of the research studies conducted by the institute examined the effects of diesel fumes on humans and monkeys. Researchers put ten macaque monkeys in sealed rooms and pumped in exhaust fumes from a Volkswagen Beetle for four hours. For comparison, another group of monkeys was exposed to fumes from an older Ford pickup. The monkeys were later anesthetized and examined to see what the fumes did to their bodies. Other tests involved willing human subjects who were exposed to similar conditions.

This case is applicable to upper-level management or business ethics class.

1. Maria Jarlstrom, Essi Saru, and Sinikka Vanhala, “Sustainable Human Resource Management With Salience of Stakeholders: A Top Management Perspective,” Journal of Business Ethics, 152, (2008): 703–724. 2. Benjamin A. Neville, Simon J. Bell, and Gregory J., “Stakeholder Salience Revisited: Refining, Redefining, and Refueling an Underdeveloped Conceptual Tool,” Journal of Business Ethics, 102, (2011): 357–378. 3. Mick Marchington, Fang Lee Cooke, and Gail Hebson. “Human Resource Management Across Organizational Boundaries,” Sage Handbook of Human Resource Management, (2009): 460–477.

This secondary source case is based mainly on three documents: the 20-page report by a labor union, Unite Here, titled “One Job Should Be Enough: Inequality at Starbucks”; and two reports by former U.S. Attorney General Eric Holder Jr. and Covington & Burlington, LLP.

In February 2020, Unite Here, a labor union, released a damming report about employment practices at the airport Starbucks stores operated by licensee, HMSHost. Among other charges, the report identified several instances of racial and gender discrimination that HMSHost dismissed as a ploy by a union intent on organizing its employees. The adverse publicity, however, put Starbucks Corporation in the spotlight because of the company’s publicly stated commitment to workplace equality. The recently hired Nzinga Shaw, the company’s first-ever Global Chief Inclusion and Diversity Officer, had to address the issue at HMSHost lest it adversely affect Starbucks’ reputation as a progressive employer.

The case is best suited for a graduate or undergraduate course in human resource management or labor relations. As diversity is typically covered in the first third of such courses, the ideal placement of this case would be in the early part of the course. As Starbucks is a well-known name, and it is very likely that students have had their own experience with Starbucks, as either a customer or an employee, the case is likely to draw their interest.

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 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.

After completion of the case study, students will be able to identify and discuss ways in which informal financing of the kind discussed in the case study can provide new or different opportunities for access to alternative financing schemes; assess the role of“social capital” in micro and small business development and to understand and apply the role of social capital for female entrepreneurs in the Global South; critically analyse and reflect on the new role of digital technologies in challenging traditional patriarchal social norms and exclusion and ultimately be able to evaluate the role of digital technologies in terms of its practical implications for female entrepreneurs; and understand the role played by socio-cultural and historical contexts in female-owned/managed businesses within informal sectors of the economy. Furthermore, the students should be able to discuss how these contexts provide opportunities or challenges for actionable/robust/relevant business plans for female entrepreneurs.

This case study aims to create a platform for classroom conversations around: context of entrepreneurship in informal economies, challenges of accessing finance, women entrepreneurship, opportunities of digital entrepreneurship and resource acquisition and social capital. Overall, this case study intends to inspire and cultivate additional voices to advance authentic understanding of informal business practices in the financial sector that go beyond traditional formal western settings. This case study is based on a true story relating to the “sou-sou” financing system – an informal financing scheme – originating from West Africa which has been transported to other parts of the world including Latin America and the Caribbean (LAC) and other parts of Africa. The characters involve Maria, the main protagonist; Eunice, from LAC; and Fidelia from West Africa. With first-hand information from Eunice and Fidelia, Maria learnt about the ideological principles and the offerings of flexibility, trust, mutual benefits and kinship of the sou-sou system and was inspired to integrate digital technologies as a sustainable game changer for accessing microfinance. This case study draws on the contextual understanding of the economy in the Global South as well as the gender-based aspects of entrepreneurship as key aspects of women entrepreneurship and digital entrepreneurship. The sou-sou system is presented as a practical solution to the challenges faced by women entrepreneurs in the Global South to access finances, and the integration of digital technologies is considered instrumental not only in reinforcing the traditional system but also in transforming the entrepreneurial prospects for these women.

This teaching activity is aimed at postgraduate students in Master of Management and Master of Business Administration programmes. It can also be used for short executive courses, specialised PhD seminars and advanced bachelor programmes. This case study could be taught in the field of entrepreneurship in areas related to technology, gender, women entrepreneurship and financing in the context of the Global South.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

Ms. Cindi Bigelow, COO and third generation in her family to head the R.C. Bigelow Tea Company, located in Fairfield, CT, believed one strategy to move her business forward would be to attract a younger audience for her product line. Hot tea appeals primarily to women 45+ who typically drink the beverage for its soothing effects. A test market, designed to make hot tea more appealing to a college-age audience, was conducted at a nearby university by a Students in Free Enterprise (SIFE) team drawn from the chapter's membership. Key words: Target audience, market segmentation, demographics, market research, promotion mix, advertising, copy development, media selection.

This case depicts the history of an unusual brand in the “super premium” segment of the vodka market. The top-of-line positioning is supported with creative advertising, narrow distribution, point-of-purchase advertising, and expensive advertising production. Absolut has used very expensive inserts as advertisements in print vehicles during the Christmas season. The last inserts described in the case cost approximately $1 each to manufacture and distribute via the media vehicle (The New Yorker). The case asks students to decide whether such expensive advertising should be continued and, if so, how. The societal effects of advertising alcoholic beverages and the implications of pursuing such exclusive positioning strategies may also be explored.

Lilly ICOS is preparing to launch Cialis, a prescription drug that treats erectile dysfunction, and executives must decide how to position Cialis against market leader Viagra and recent entrant Levitra.

Fingerhut, based in Minnetonka, Minnesota, is a direct-marketing company that sells a smorgasbord of consumer goods through an array of specially targeted catalogs. In November 1996, an article in the Star Tribune, a major Minneapolis newspaper, drew attention to a class-action lawsuit pending against Fingerhut that suggests the firm made its profits by exploiting the poor. Several civil rights groups rallied around the suit and submitted amicus curiae in favor of the litigation. The case illustrates issues in ethics and management communication. Discussions focus on the constituencies. Is Fingerhut exploiting its customers or providing them with an affordable method of obtaining valued consumer goods on credit? Do retailers have a duty to offer products at reasonable prices? Are the high interest rates reasonable given the risk? What are the options: pawn shops, rent-to-own? What is the profile of the typical Fingerhut customer? Discussions also focus on the issues communicating to the constituencies. How much damage will the lawsuit do to Fingerhut's image as an ethical, socially conscious company? What communication strategies can the firm employ? Should it react to the lawsuit? What should it tell its employees?