Search results

The case presents a significant amount of information on the outbreak of COVID-19 and the expected impact on the economy. Although the case is necessarily concise, several links are given to the online articles and video material on which the case is based. This allows participants to deepen their knowledge of the virus and their understanding of its likely economic impact. To frame the discussion, several philosophies, ranging from Libertarianism to Marxism, are lightly expounded. Readers will need to consider divergent ideas; the sanctity of human life versus the monetary value of a life; the hysteria evoked by COVID-19 deaths versus the placid acceptance of an annual 66,000 deaths by another disease – TB; and the differential economic impact of the virus across extremes of inequality. Perhaps, the key issue relates to the skewness in the death rate: Should young people’s livelihood be sacrificed for a few old people about to die anyway? The case also illustrates the essence of a dilemma – a situation in which a difficult choice has to be made between two or more alternatives, especially ones that are equally undesirable.

In March 2020, South African President Cyril Ramaposa ordered a 21-day national “lockdown” to enable and enforce social distancing in an effort to slow the spread of the COVID-19. Many other countries had already taken similar steps, but in a country with 43,000 murders annually, South Africa’s response to only 11 COVID-19 deaths and 1,071 cases was both rapid and harsh. Schools, businesses, social areas and parks were closed. Medical emergencies, essential services and weekly grocery shopping were the only permissible activities. Two weeks after lockdown, there were 1,845 cases and 18 deaths, a far cry from the predicted 30,000 cases and 300 deaths, estimated on the basis of the three-day doubling rate at the start of lockdown. Many businesses, pulverised by closure, daily wage earners and those fearful of losing jobs were hopeful that the lockdown would not be extended. In a country with immense inequality, how would the masses under the age of 65 years, already in poverty and now with their lives pulled apart by an imported disease of the wealthy, respond to extended social and economic deprivation followed by bailouts for business?

MBA and Executive Education

Teaching Notes are available for educators only.

CSS: 11 Strategy.

At the dawn of the twenty-first century, Boeing and Airbus, the leading manufacturers of large aircraft, were locked in a battle for market share that drove down prices for their new planes. At about the same time, the two industry heavyweights began developing new aircraft families to address the future market needs they each projected.

Aircraft take many years to develop, so by the time the new planes made their inaugural flights, significant changes had occurred in the global environment. First, emerging economies in the Asia-Pacific region and elsewhere were growing rapidly, spawning immediate and long-term demand for more aircraft. At the same time, changes to the market for air travel had created opportunities for new products. These opportunities had not gone unnoticed by potential new entrants, which were positioning themselves to compete against the market leaders.

In October 2007, the Airbus superjumbo A380 made its first flight. The A380 carried more passengers than any other plane in history and had been touted as a solution to increased congestion at global mega-hub airports. Four years later the Boeing 787, a smaller long-range aircraft, was launched to service secondary cities in a point-to-point network.

The case provides students with an opportunity to analyze the profit potential of the global aircraft manufacturing industry in 2002 and in 2011. Students can also identify the actions of participants that weakened or intensified the pressure on profits within the industry.

Audio format (.mp3 file) available with purchase of PDF. Contact cases@kellogg.northwestern.edu for access.

International business

Undergraduate/graduate/executive education.

China has become the world's largest producer of automobiles, surpassing the USA and Japan. The Chinese auto industry differs quite significantly from those countries though. While the industry exhibits a substantial degree of concentration in the USA and Japan in early 2011, it remained highly fragmented in China. The Chinese Central Government had announced a desire for consolidation, yet it remained unclear whether a significant shakeout would occur in the near term.

Like many Chinese automakers, Chang'an partnered with well-known global auto makers to develop, produce, and distribute its products. In the coming years, Chang'an hoped to develop more independence from its foreign partners, including the production and distribution of self-branded cars. However, the company grappled with how it could strive for independence while managing its existing joint ventures. Executives worried too about how to compete with foreign automakers who had achieved global economies of scale.

The case provides a rich description of the evolution of the Chinese auto industry, and it documents how the Chinese industry differs from other global markets. Readers can analyze the extent to which they believe scale economies provide foreign firms an advantage over smaller Chinese rivals, and they can evaluate the conventional wisdom regarding the industry's minimum efficient scale. The case also provides a detailed account of Chang'an's rise to prominence. The case concludes by offering an in-depth description of the firm's key rivals, and it presents the key questions being considered by Chang'an executives in 2011.

Enables students to examine how and why an industry's structure can differ substantially across geographic markets.

Enables students to examine whether the need to achieve economies of scale may cause substantial consolidation in the Chinese auto industry.

Provides an opportunity to evaluate the pros and cons of the joint venture strategies employed in China.

Provides an opportunity to examine how a relatively small firm can position itself against large multinationals in a high-growth emerging market.

Teaching notes.

The i-AM Tablet is an evolving gadget in a world of fast-paced technological change. Facing a new partnership with a major customer, the market for the i-AM is about to explode! This case explores the innovative concept of Supply Chain Resilience as the CEO of i-AM, Inc, develops a strategic plan for expansion. This case is based on theory and practices evolved at the Dow Chemical Company.