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Sara Lee Corporation's acquisition binge in the 1980s and 1990s left the company with a portfolio of vastly different businesses operating independently of one another. It had experienced rapid top-line growth, but at the same time cash flows had declined. Sara Lee ignored both internal and external warning signs until a major transformation plan became necessary. This case examines the company's multiple turnaround attempts. The learning objective of the case is to analyze “early stage” turnaround efforts by examining how the company found itself in decline, evaluating its attempts to improve its performance, and assessing the turnaround plan.

(1) Learn to identify a specific challenging moment when reading and analyzing a turnaround plan; (2) address the implementation problems of an early stage turnaround and discuss exit options; (3) evaluate when a change of long-held beliefs and decades-long strategy by a company is warranted; (4) evaluate Sara Lee's marketing strategies in light of the disappointed retail and wholesale customers; and (5) show the similarities in traits between turnaround managers and high-growth entrepreneurs.

Three months into his first job as an IT consultant, newly minted MBA Phil Lee was wondering whether he had made a horrible mistake. Initially, he had been thrilled with his employer, Orion Information Technology Consulting, and the prospects for his professional future. He had specifically requested to work on projects in emerging markets, and his bosses had responded by flying him halfway around the world to New Delhi to meet with the head of procurement of a luxury property developer, Kirat Housing Development Society (KHDS). Lee thought the reason for the meeting was slightly unusual: Orion was planning to make a bid to supply building management software for KHDS's newest luxury tower, and this meeting would be the “pre-bid” negotiation. Lee wasn't totally sure what they'd even be discussing, as the tender already provided full details on exactly what modules would be required and even included specific penalty clauses for delays.

The meeting at KHDS seemed ordinary at first, but quickly took a turn when the assistant to the head of procurement explained that Orion would win the bid if it offered him a $200,000 contract as an “independent consultant.” Lee was stunned. To make matters worse, when he returned to his hotel room he found a gift waiting for him: an expensive-looking diamond pendant.

On his sleepless flight home, Lee's mind raced. Had his bosses known this would happen? Were bribes standard operating procedure? Now that he'd accepted a gift, was he complicit in wrongdoing? Lee didn't want to get fired, but he wasn't sure he could go along with this.

In mid-2013, the Lee family, which owned the Hong Kong based food and health product giant Lee Kum Kee (LKK), struggled with how best to increase involvement of the fifth generation (G5), the children of the company's current fourth-generation (G4) senior executives and governance leaders. Only two of the fourteen G5 members had joined the company, and few had expressed interest in further involvement, including in the multiple learning and development programs the business offered, such as a mentoring program. Many of the G5 cousins had expressed little interest in business careers in general, and none of them currently was serving as an LKK intern. G4 members observed that their children were busy with family obligations, hobbies, and emerging careers outside the business. G5's lack of interest in business and governance roles was part of a growing pattern of low family engagement in general, exhibited by the cancellation of recent family retreats (once an annual tradition) because of apathy and some underlying conflict. A history of splits among past generations of the Lee family regarding business leadership made the engagement issue even more meaningful and critical.

Students will consider the challenge from the point of view of G4 family members David Lee, chairman of the family's Family Office, and his sister, Elizabeth Mok, who ran the Family Learning and Development Center. They and their three siblings saw engaging the next generation as a top priority, one related to key concepts including family-business continuity, generational engagement and empowerment, succession, emotional ownership, and intrinsic/extrinsic motivation.

This case consists of conversations with six prominent venture capital investors in the United States. The topics covered include investment strategies and relationships with entrepreneurs in the United States and around the world.

VoiceStream was a strong brand within the digital wireless communications industry at the time CEO Robert Dodson led the company. It had a loyal following of customers and a strong reputation for value. Despite pushback from senior management, CEO Robert Dotson made the decision to undergo a rebranding strategy during a period of declining revenue and growth. As VoiceStream transitioned to T-Mobile, it had initial success, but faced the challenge of how to position the brand long term.

This case study was written with the historical background of a well-known company and traces key decisions made during the company’s rebranding transition. This case comes complete with insights from then current CEO, Robert Dotson.

This case is suitable for undergraduate and graduate courses in marketing, management or strategy, where students are studying brand management. Additionally, this case will be valuable for courses that include advanced branding strategies such as rebranding. This case could also be used for discussion in positioning and advertising techniques. This case includes, via in-depth interviews, critical strategic insights from CEO Robert Dotson. The case illustrates some of the major opportunities and threats associated with the VoiceStream/T-Mobile rebranding strategy.

It's panic time at Blackheath Manufacturing. Profits have been declining, so the owner's son comes to the rescue to run the company. He asks a consultant to determine what's wrong. And the consultant has specific answers: The company's pricing guidelines are all wrong, there needs to be a budgeting system to reverse the downward slide in profits, and a former employee should be rehired. This case provides students with the data for constructing a production and raw-materials budget, flexible-expense budget, income statement, balance sheet, and cash budget. See also “Blackheath Manufacturing Company” (UVA-C-2197).

The questions raised in the case study could escort a classroom or online discussion for understanding licensed product consumption motives among the internal workforce.

Despite the Asiad (an abbreviation of Asian Games) being organized in the most populous continent, its financial profitability is minimal compared with the summer Olympic Games and other major sporting events. Thereby, Asiad board members are seeking to understand how they can target the right segment via licensed products. This will ultimately increase licensed product sales. On July 1, 2017, a board meeting was held in which the licensing product manager, Young Lee, proposed to target the internal workforce via licensed products based on 17th Asiad’s data and previous literature. Lee analyzed the attributes of licensed products sold at 17th Asiad and its psychological connection with the internal workforce. Hence, the purpose of this case study was to decipher the internal workforce feasibility as the right segment to target via licensed products for Asiad's management. The case study’s primary data was collected via IB worldwide (now Galaxia SM CO, Ltd), one of the leading sport marketing organizations in South Korea. The IB worldwide (now Galaxia SM CO, Ltd) signed an exclusive product license agreement with the Incheon Asian Games Organizing Committee jointly and individually with the Olympic Council of Asia to produce licensed products (e.g. Mascot dolls). This realistic case study should be understood through the lens of symbolic interactionism. Finally, this study is important to consider because the internal workforce licensed products consumption has gained little attention in sports marketing literature.

The case can be taught in marketing research and consumer behavior courses.

CSS 8: Marketing.

Teaching notes are available for educators only.

Financial accounting to assess stewardship: the case requires students to evaluate Thompson’s stewardship of McDonald’s, in part based on the company’s financial accounting information. Financial reporting performs an important societal role by helping control agency problems that arise from the separation of ownership and management. Since external stakeholders cannot “observe directly the extent and quality of managerial effort on their behalf […] the manager may be tempted to shirk […] blaming any deterioration of firm performance on factors beyond his/her control” (Scott, 2014, p. 23). However, although financial reporting helps hold managers accountable to shareholders, accounting information is not fully informative about managerial effort. For example, while net income provides useful information regarding the CEO’s stewardship, it is also “noisy,” due to recognition lags and other factors (Scott, 2014, p. 364). Efforts undertaken by Thompson in a particular period, such as marketing expenditures, might reduce current earnings, yet boost future profitability. Additionally, Thompson’s predecessor’s past efforts might have positive or negative effects on current earnings. Evaluating stewardship effectively involves considerable judgment, in addition to knowledge of financial accounting. The implication of poor firm performance is that the CEO is ineffective at formulating and implementing strategies and policies to enhance firm value (Dikolli et al., 2014). Specifically, it appears that missing earnings benchmarks matter more for relatively inexperienced CEOs. Don Thompson’s tenure of 33 months at McDonalds is 42 percent lower than median CEO tenure documented in academic research, where the median tenure of chief executives documented in large sample empirical studies is about 57 months (Dikolli et al., 2014). The evidence suggests that the longer a CEO serves, the less likely he is to be dismissed for performance-related reasons. This appears to be the result of the resolution of uncertainty about CEO’s ability and leads to subsequent declines in the level of monitoring by the Board of Directors. Performance evaluation and bias: a significant body of research explores the extent to which female managers are assessed differently than their male counterparts (Powell and Butterfield, 2002). For example, female CEOs face more threats from activist investors than male CEOs. Therefore, even after women achieve the highest managerial rank, they experience more professional challenges than their male counterparts (Gupta et al., 2018). However, the question of whether black CEOs are assessed differently is more challenging to answer empirically as a result of a smaller sample size (only one percent of S&P 500 companies are run by black CEOs). Our case attempts to develop the inference that if female CEOs are subject to bias, analogous forces are likely at work when black CEOs are assessed. Recent evidence further suggests that business students sometimes demonstrate bias in making assessments (Mengel et al., 2018). The authors discuss these findings – as well as strategies for including them in the case discussion – in the “Teaching Strategy” section herein below.

The case was written from the public record surrounding the appointment of Don Thompson and McDonald’s company filings. The record includes articles from The New York Times and The Wall Street Journal, as well as local and industry publications.

The case examines the role of financial accounting in evaluating CEO performance in the context of the appointment of McDonald’s first African-American chief executive and his subsequent two-and-a-half years on the job. The case deepens students’ understanding of the link between financial reporting and stewardship, while highlighting the subjectivity inherent in assessing managerial performance, particularly over relatively short time periods. As students analyze the case, they must consider the extent to which a firm’s results are attributable to luck vs skill. We use “skill” to refer to CEO effort and other controllable factors, while “luck” refers to exogenous factors, such as macroeconomic conditions. Assessing stewardship is of practical significance. It allows pay to be better aligned with performance and empowers stakeholders to identify when a change of leadership may be warranted. The case may also be used to spur reflection, in an applied context, on the importance of being alert to unconscious bias, even when evaluating seemingly objective financial reporting data. Recent research, discussed herein, suggests that business students sometimes exhibit bias when making assessments.

The case should be included in discussions of corporate governance, executive compensation and the role of accounting information in efficient contracting. It is appropriate in intermediate financial accounting courses for undergraduates, introductory graduate accounting courses, or other courses with an element of financial statement analysis. Standard introductory accounting textbooks offer helpful supplementary reading for students. Horngren et al.’s (2014) book, Introduction to Financial Accounting (12th ed.), Pearson, London, provides an overview of the income statement and its role in assessing performance (see Chapter 2) as well as a useful discussion on evaluating the components and trends of a business (see Chapter 12). More advanced students may benefit from the in-depth discussion of earnings quality, operating income and non-operating income found in Chapter 4 of Intermediate Accounting (9th ed.), McGraw Hill Education, New York by Spiceland et al. (2018).

International Business, Ethics, International Legal Issues/Law, Environmental Management.

Upper-level undergraduates and graduate students. The case is appropriate for courses in International Law, Ethics, International Business and Strategy.

This case is inspired by current ethical, legal, social and environmental issues that have plagued the multinational mining industry in frontier markets. The case focuses on a multitude of legal, ethical and strategic issues involving the multinational mining industry. This case describes a hypothetical assignment facing an operations manager at the fictional Minera, Inc. The assignment revolves around several dilemmas a manager must confront as he attempts to secure valuable mining licenses from the Mongolian Government while simultaneously attempting to harmonize seemingly detrimental operating practices with the organizations' stated beliefs. The case provides detailed background information on the social, economic and political climate in Mongolia, as well as the applicable laws, ethical frameworks and competitive market considerations facing multinational mining organizations.

This case will help students understand the complexity of international business in frontier markets; identify key international legal issues such as the foreign corrupt practices act; and recognize ethical issues and formulate economically, strategically, ethically and legally sound courses of action in complex environments.

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 is a role-play exercise intended to give participants an opportunity to experience board meeting dynamics and logistics, determine how to scale a nonprofit for maximum impact, learn about governance best practices, and become generally familiar with nonprofit financial statements, dashboards, and new board member recruitment strategies. There is no right answer or correct outcome to the exercise; the value lies in participants' analysis of the situation, dialogue with one another, and post-meeting self-reflection.