Search results

Markus Steuer, director of real estate at Drechtal Pharmaceuticals, must decide where his firm should locate in the immediate future. Drechtal was currently leasing space in seven different buildings, yet the company anticipated a dramatic increase in headcount should its first oncology drug, Trianoline, be approved by Swissmedic. The potential increased demand for space initiated Steuer's investigation of whether it was optimal to continue to lease space or whether or not it should invest in its own corporate headquarters. With its current leases set to expire over the coming 24 months, it was an opportune time to consider Drechtal's options.

In January 1993, the senior management committee of this company has to decide which major projects the company should fund for immediate implementation. The board of directors arbitrarily set a limit of European currency units (ECU) at 80 million to spend on capital projects in 1993. But various managers have proposed projects totaling ECU208 million. Students must evaluate the completed discounted cash flow (DCF) analyses presented along with qualitative factors (mainly the strategic considerations and the internal politics of the company) and choose the projects to be approved.

This case applies a stakeholder analysis to examine the trade-offs between the firm’s strategy and the interests of different stakeholder groups. A PESTEL analysis supports an evaluation of the firm’s situation. Consumer behavior theories on psychological ownership and territoriality offer a framework for analyzing the conflicts that arise from the inhabitants’ protests.

This case relies on secondary sources, including news reports, social media sites and company websites. This case has been classroom tested with undergraduate students in a strategic management course in January 2019 at the University of Cologne, Germany.

In November 2016, Google announced its intentions to rent a building in the Kreuzberg district of Berlin to open a Google Campus, a business incubator for tech start-ups that would offer entrepreneurs support, workshops and access to networks. Following the announcement, dissatisfied local communities organized protests, in which leaders complained that “It is extremely violent and arrogant of this mega-corporation, whose business model is based on mass surveillance and which speculates like crazy, to set up shop here” (Business Times, 2018). Berlin’s Government supported the Google Campus plan; inhabitants rejected it with fierce and persistent protests. In face of this challenge, was it still possible for Google to continue its plans in Berlin?

This case qualifies for use in strategic management classes at undergraduate and MBA levels. Its focus aligns well with stakeholder analyses, PESTEL analyses and business strategy. In addition, for courses on organizational communications or public relations, this case provides a way to explore the relationship between Google and its stakeholders, especially protesters, in detail. Moreover, this case is well suited for consumer research and public policy courses (e.g., transformative consumer research) centered on discussions of territoriality.

Development of legitimate teaching cases demands cases be factual, that is that they use “real people, real companies, real situations,” and, usually, present time. Rarely, do cases deal with historical happenings in which lives, as well as fortunes, could be lost to achieve desired ends. History provides rich material on which to build teaching cases with the added advantage of acquainting students with the past and the influence the past has in shaping the future. Answers to the question of “Why use historical teaching cases” are related to the more general question of “Why study history.” Both questions are addressed.