This case was written for use in undergraduate and graduate courses in strategic management. It is reasonably short for a strategy case and the solution appears to be fairly straightforward - almost too easy. Even though the case seems to suggest that all that is needed is a good marketing program to get its nascent ecotourism business off the ground, the organization is woefully unprepared to provide a quality touring experience.

This case may also be used in a marketing strategy course. In order to obtain funding, what should the organization be marketing? Does it have anything to offer?

Given the case's location in Honduras, it can also be used in an international management course to illustrate either why it is often difficult for developing nations to adequately protect their natural resources or how difficult it can be to build a tourist attraction.

Fundacion del Parque Nacional de Capiro y Calentura y de la Laguna de Guaymoreto (FUCAGUA) was an environmental non-governmental organization (NGO) that managed two protected areas - Capiro and Calentura National Park (Capiro) and Guaymoreto Lagoon National Wildlife Refuge. These areas were located in the Trujillo Bay area of Colon Province on the north coast of Honduras. This case focuses on FUCAGUA's attempt to develop an ecotourism business that would help finance its management and protection of Capiro and Guaymoreto. The case takes place in July 1998. The USAID grant providing most of the organization's budget was due to terminate in March 2000. Without USAID funds, FUCAGUA would be unable to perform its mission of protecting the national park and wildlife refuge.

FUCAGUA's management felt that a successful ecotourism business would make the organization less financially dependent on international donor agencies and, therefore, provides some stability and permanence. The organization had already taken some steps to build the business. A boat had been purchased recently to provide tours of Guaymoreto Lagoon. Park guards had been trained to double as tour guides. The Director of Public Use had recently hired an ecotourism assistant. Nevertheless, only an average of five people per month toured the park. Thus far, no one had requested use of the boat to tour the lagoon. Local people seemed unaware that FUCAGUA was offering tours. The case ends with the Director of Public Use pondering what guidance he should provide his new ecotourism assistant.

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Contact person: J. David Hunger, 300 Carver Hall, Iowa State University, Ames, Iowa 50011.
Phone: 515-294-8463; Fax: 515-294-2534; E-mail Address: jdhunger@iastate.edu
 

The Indians case is helpful for students with limited business experience. It can be used in Strategic Management, Introduction to Management and Introduction to Finance courses for undergraduates and MBAs. The case should be positioned early to introduce key concepts.

The objective is to introduce students to business concepts through sports, which may be more familiar to them and enjoyable. Instructors should invite students to make comparisons between the Indians and their favorite sports franchises as well as other business organizations.

For information on other teams, students should be aware that Forbes annually publishes team valuations and that Investor World also publishes financial information annually. All major teams also provide information on their Web site. Local newspapers and sports magazines also provide current information about teams and their financial health. Instructors should be alert to these articles in local publications, as indexing can be too general for easy location.

In May of 1999, Dick Jacobs, owner of the Cleveland Indians, startled the baseball and business world with his announcement that he would consider offers for the Indians. At this time, the team had the best record in baseball, had sold out for 308 consecutive games (and sellouts continue), and had been Central Division Champions four years in a row.

Key facts of the case center on the management and ownership of the Cleveland Indians Baseball Company. Also considered are the advantages and disadvantages of the gains to be realized by keeping or selling the team. In 1986 Dick Jacobs, purchased for 36 million dollars and the assumption of debt, a team that had not gone to the World Series since 1954 and had attendance of less than 5,000. In 1994 the Indians moved to a new stadium and began a series of winning seasons. Jacobs focused on a long-term strategy with player development and delegation of responsibilities to key personnel as a part of his approach to turning the Indians around. He also imposed fiscal control measures and began an aggressive merchandising campaign for the team.

On the financial side, the team occupied a publicly built stadium, sold four million shares of stock in an IPO for $60 million, and had extensive revenues from merchandising. Will Jacobs sell the team? At what price? Is selling a team with this record consistent with his strategy?

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Contact Person: Jonathan E. Smith, John Carroll University, Cleveland, OH 44118
Mail: 20700 North Park Blvd, University Heights, OH 44118 USA
Voice (216) 397-4605; FAX (216) 397-1728; e-mail jsmith@jcu.edu
 

The central theme in this note concerns how the African-American hair care industry evolved by pursing a niche strategy implemented by African-American entrepreneurs. However with changing demographics and the globalization of the hair care/cosmetic industry, large Cosmetics Company (such as Revlon and L’Oreal) are acquiring these firms making it difficult for smaller African-American firms to compete in this industry. As its title indicates, this case is designed to focus on industry and competitive analysis. The case requires that students focus on four major topics: (1) industry evolution and analysis; (2) macro-environment analysis; (3) competitive dynamics; and (4) the management and marketing of diversity. This case can be used in several courses including corporate strategy/business policy, marketing strategy or entrepreneurship.
 

From as early as 1900, hair care products for African-American women were marketed to satisfy the unmet needs of women of color within the Unites States. Over the years, family-owned entrepreneurial companies worked to fulfill this need and have grown to larger professionally managed corporations. However, these early market leaders are now faced with the task of sustaining their position in a rapidly changing competitive environment characterized by industry consolidation and the entrance of mainstream manufacturers.

This industry note describes the development and evolution of the African-American hair care industry specifically within the mass-market segment. The industry note begins with a historical perspective of the industry and outlines the implications and challenges of the present market.

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Contact Person: Lynn Perry Wooten, University of Michigan Business School
Mail: 701 Tappan Street, Ann Arbor, MI 48109-1234
Voice: (734) 763-0486; Fax (734) 936-0279; e-mail: lpwooten@umich.edu
 

The case addresses a situation confronting bank holding companies in the hypercompetitive financial services industry. Relaxation of regulation and increased innerconnectivity through investment in information technology provides multiple avenues for changing the vertical and horizontal scope of bank holding companies. The case specifically addresses the e-commerce market as a platform for bringing traditional commercial banking together with brokerage products and services. The case provides data to allow the conceptualization and quantification of market opportunities within the financial services industry. Characteristics of proposed merger partners are presented in a manner that drives consideration of fit between Wells Fargo and any of the brokerage partners.

This case was designed for use in General Management, Business Policy, or Competition and Strategy courses. It could also be used in E-Commerce, Management of Information Systems or Management of Financial Institutions courses. Because it provides detailed data that allows students to conceptualize and enumerate business opportunities, it is most appropriate for the end-of semester discussions in a first-year MBA class, in second year MBA electives and executive management courses.

The case opens with an introduction to the issue—opportunities in the investment and brokerage markets that come in the form of a potential strategic alliance with three brokerage firms. The subsequent sections provide data to drive analyses of the: (1) bank, (2) industries that are amalgamating to form the financial services industry, and (3) potential brokerage partners.

The case reviews the: (1) status of the merger between Wells Fargo and Norwest, and, (2) historical background of both banks. Restructuring of the multi-business bank is illustrated with text and tables.

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Contact: Rocki-Lee DeWitt, The Pennsylvania State University
Mail: 106 Business Administration Building, University Park, PA 16802-3000
Phone: 814-863-0474, FAX: 814-863-8072, Email: rld10@psu.edu
 

The case is designed to permit students to consider the role of quality awards as a turnaround strategy. Students are asked to consider the benefits of company participation in an awards process, the most effective change process for reaching the goal of winning the award and the role of the application process in bringing about necessary organizational changes.

The case is appropriate for use in strategic management courses (especially in the strategy implementation section of the course), international management courses (privatization issues) and production operation management (the strategic implications of a continuous improvement process).

Privatized in 1992, Siderar was a fully integrated manufacturer of hot, cold and coated rolled steel sheets. As with most state-run companies, it had been inefficiently operated utilizing obsolete technologies, rigid management structures and poor customer services. The company was losing domestic market share and in need of wide organizational cultural changes if it was to survive in the more competitive Latin American market.

Siderar management viewed the preparation of the organization to compete in the award competition as an opportunity to align the company towards shared goals of improved productivity, quality and competitiveness. Through top management commitment and the excellent teamwork of the employees, Siderar won the National Quality Award only four years after the privatization of the firm.

The case concludes with Siderar management using the evaluation report issued by the National Quality Award Foundation to bring about future improvements in the firm. Managers also were reviewing important opportunities for additional improvements such as Norm QS 9000 and ISO 14000 certification. Thus, the case depicts one organization’s successful journey on the never-ending process of quality improvement.

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Contact: Professor Marcelo Paladino, Instituto de Altos Estudios Empresariales,
Mail: Derqui 1629 Pilar, Buenos Aires, Argentina
Phone: (54-2322) 481-000; FAX: (54-2322) 481-050;  Email: mpaladino@iae.edu.ar
 
 

The case describes a proposed merger between two companies in the health care industry. Readers are asked to consider the risks and synergies which might develop as a result of the merger and to decide whether they would vote for the merger. The case is appropriate for undergraduate and graduate courses in business policy.

On Tuesday, January 12, 1999, the stockholders of HBO & Company (HBOC) were asked to vote on a merger agreement pursuant to which a subsidiary of McKesson Corporation would merge with and into HBOC and HBOC would become a wholly-owned subsidiary of McKesson. In the merger, McKesson would issue to HBOC stockholders 0.37 of a share of McKesson common stock for each share of HBOC common stock. The exchange of HBOC common stock for McKesson common stock, other than cash paid for fractional shares, would be tax-free to HBOC stockholders for federal tax purposes. Edward Lyle, an HBOC stockholder, wondered whether he vote for the merger.

HBO & Company provided software and other technological innovations to 9,000 global customers in the health care industry including hospitals, pharmacies, laboratories, physicians’ offices, and home and managed care providers. McKesson was the leading North American supplier of medical, pharmaceutical and health care products to hospitals, pharmacies and mass merchandisers. McKesson also developed and managed support programs, including marketing campaigns, for other pharmaceutical manufacturers. McKesson subsidiaries manufactured automated dispensing systems, distributed first aid and safety products, and marketed pure drinking water.

The case provides an opportunity for readers to identify and discuss the potential risks and synergies of the merger of two firms offering different products and services to similar customers in the health care industry.

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Contact Person: John E. Oliver, Valdosta State University, Valdosta, GA 31698
Mail: 1500 N. Patterson St., Valdosta, GA 31698
Voice: (912) 245-2236; FAX: (912) 245-6498; e-mail: joliver@valdosta.edu
 

The case focuses on and can be taught from two separate but interrelated orientations: developing a mission and conducting organizational change. Specifically instructors can use this case to illustrate factors that are usually antecedents to major organizational changes, to develop and refine criteria for evaluating mission statements, and to show that companies need to take a wide range of actions to turn a mission statement into a reality. Similarly the case may serve as a pedagogical tool to illustrate how to implement a major strategic change.

These orientations make the case suitable for strategic management courses at both the graduate and undergraduate level. We recommend using the case either at the beginning of the semester when discussing mission statements or in the second half of the course to introduce the strategy implementation concept.

The Harrison-Dow Case describes Gloria Dow's struggles after taking over a car dealership. Despite the dealership's 40 year track record of success, Dow developed a new mission, namely to become a total transportation provider that would exceed customer expectations one customer at a time. To implement the mission, the dealership eliminated sales commission, stopped advertising in local papers, hired two psychologists to enhance the employees' ability to communicate, and even, if the customer desired, facilitated purchases from other manufacturers. Additionally, she started an insurance agency, a towing company, and provided cellular service. This transformation changes the role of the dealership from merely being a successful player as a channel member to being an independent business serving its customer needs.

Collectively these changes led to sales growth and favorable recognition by trade publications. The innovative practices had their downside, however, causing employees to quit, straining relationships with the manufacturer and other dealers, and stretching limited resources. By the end of the case Dow was considering selling the business.

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The first author led the project; the remaining authors contributed equally.
Contact Person: Mark Simon, Oakland University, School of Business Administration, Rochester, MI 48309-4493
Voice: (248) 370-3295; Fax: (248) 370-4275; E-mail: Simon@oakland.edu
 

This case presents a study and discussion in venture development, strategy and marketing. The company VRTV is in the business of video production and has developed new technologies of stereoscopic imaging for application in video production/viewing, virtual reality, computers and television

The company’s management proposes a new venture designed to capitalize on the company’s knowledge, trade secrets and specialized equipment. This technology is currently at the forefront of what might be the next revolution in television and home entertainment. This small company was formed in order to research and test-market an initial VRTV™ television viewing system. The company also produced the initial stereoscopic programs for its virtual reality video series. The viewing system uses wireless electronic glasses that are called E-glasses™ along with infrared transmitters compatible with all standard television monitors and videotape recorders. This system requires no modifications to existing equipment. This VRTV™ format produces lifelike images that can appeared to float from the television screen and into the room.

Students will find this case very interesting not only because of the glamour associated with the entertainment business, but also because they are major consumers of products and services of the entertainment industry. They will be challenged by the problems associated with determining a successful venture development strategy and fascinated by prospect of the new technology. This case provides an exceptional opportunity for the instructor to dare the students to use the tools of business planning, industry analysis, SWOT, and competitive analysis in a dynamic complex industry. The case focuses on designing venture development strategies for the VRTV business plan. Students must grapple with the problem of how to launch a new television-broadcasting network that depends on consumers purchasing the viewing system. Students are challenged to examine the questions of who will emerge as the industry leader and where will the potential threats of competitive actions come from and will the major entertainment companies use powerful blocking efforts. Students are encouraged to explore the implications of shifting consumer preferences and new technological developments. The case intensifies the awareness of competition as a kind of business "warfare." Students realize why designing a well-timed strategy can be a very difficult process but also a quintessential management responsibility required for successful development and operations.
 

The case illustrates how a change in strategy dramatically affects the requirements for being competitive, and how making those changes can be very disruptive to organizational culture. Cyberplay must depart from some of it strengths and build new competencies if it is to survive. The case illustrates the McKinsey "7s" model quiet well. It also dramatically illustrates the concepts of core competencies, "stretch and leverage", (Prahalad and Hamel) and "competing for the future" (Hamel). The students must decide whether to downsize the firm, whether to fire some of top management and replace them with other managers who possess other skills, and to determine whether the company should move to online training – yet another major strategic shift. The case is appropriate for graduate or undergraduate strategy and organizational behavior classes.

Steve Shamrock, an experienced businessman, launched Cyberplay as an educational, high-tech computerized family "edutainment" center. Cyberplay promptly won several national awards for retail store design and technological innovation in education, and was featured in the several business magazines. The company prepared to rapidly deploy 200 stores. After two years, only two stores were open and it was apparent that the original business concept was not going to work.

The company made a strategic shift to corporate software training, and quickly garnered some major contracts. The implications of this shift were profound on core competencies, organizational structure, staffing, marketing, capital commitments etc. The case picks up with Shamrock trying to sort out what must change and what can remain the same. This dilemmas are compounded by the strong corporate culture, and cash flow concerns. Moreover, Cyberplay is contemplating whether it should take its training online, and if it does, what further changes would be required.
 

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Contact Person: William A. Andrews, Stetson University
Mail: Campus Box 8398, DeLand, Florida 32720-3774
VOICE (904) 822-7437; FAX (904) 822- 3620 EMAIL; wandrews@stetson.edu
 

This case is intended for advanced undergraduate students or masters and executive-education students. It may be used in courses devoted to transportation or strategy.

The teaching objective(s) that can be used for this case include: (1) to introduce the student to intermodalism in transportation, (2) to discuss what company characteristics make a very successful strategic alliance, (3) to give the student experience in decision-making in a complex environment, and (4) to introduce the student to concepts used in change management.

The case lends itself to in-class discussion. For this reason, the teaching plan favored here consists of discussion questions for the class and suggestions for how students may respond.

The newly promoted President of Atcheson, Topeka and Santa Fe Railroad (ATSF), Mike Haverty faces a difficult decision on the future direction of ATSF. The ATSF had hoped to merge with Southern Pacific to gain much needed business expansion and lost market share, however, the deal was not approved by the Interstate Commerce Commission. Thus, Haverty must decide which strategy will result in regaining market share from motor carriers, especially on the lucrative Chicago-LA route.

The case discusses both the rail and motor carrier industries and points out the extensive competition between the two modes. This is especially relevant because in order for Haverty to succeed in gaining market share from the motor carrier industry, he must work with them. That is, he must forge an agreement with at least one motor carrier such that the trailers will move over the Chicago-LA route using ATSF.

There was turmoil within ATSF at the time Haverty took over and there were internal suggestions that intermodal was not the area to concentrate on in order to improve the ATSF business. Yet Haverty was inclined to focus on intermodal because it represented 35% of ATSF’s revenue base compared to 10-15% for the rest of the industry.

The student must choose a viable strategy from a number of alternatives, including forming a partnership with a truckload trucking firm, increasing the number of truckload firms as customers, purchasing a truckload firm or, as a last resort, selling ATSF as the board was considering when the case opened. A case can be made for any of the above options, though selling the company would be the least likely choice. The student will need to evaluate each option and develop an action plan for implementing their chosen option.
 

The case is written in a way that helps students analyze the results of the merger. Because of its scale, visibility, and complexity, the aerospace industry is ideally suited for teaching strategic mergers. Students should identify the advantages and disadvantages of the merger from Boeing’s viewpoint. Students should also realize that Boeing’s problems were rooted in the company’s inability to sustain its cost leadership as well as its technological leadership. An additional objective of the case is to have students evaluate Boeing’s turnaround strategy both in the short-run and in the long-run. The neat, clear-cut division between the industry’s two product segments--commercial aircraft and defense and space--highlights the importance of product differentiation and sharpens the focus of the case.

This is a rather broad case that is suitable for teaching Strategy or Business Policy at the undergraduate or graduate levels. Because Boeing’s markets are truly global (Airbus is its only rival in the commercial aircraft segment), and because Boeing’s suppliers are spread over many countries, the case could also be used in International Business classes.

The Boeing Company and the McDonnell Douglas Corporation had long dominated the aerospace industry. The rivalry between the two firms underlay the 80-year-long history of the industry. In 1997, at long last, the rivalry ended. Boeing bought McDonnell Douglas in a $14 billion stock deal which Fortune magazine dubbed AThe Sale of the Century.@

The case discusses the merger. It begins with an account of the aerospace industry, the history of Boeing and McDonnell Douglas, and the challenge of Airbus competition. It then shifts the focus to the results of the merger, describing Boeing’s problems during the post-merger years, outlining Boeing’s possible responses to Airbus on the commercial side, and examining Boeing’s competitive position in the defense and space industry. The case, in addition, describes the impact of the merger on Boeing’s leadership and culture. It examines the integration of the corporate culture and leadership styles of the two companies and pays particular attention to Philip Condit, Boeing CEO, on the one hand, and Harry Stonecipher, Boeing President and former McDonnell Douglas CEO, on the other. The case goes on to analyze Boeing’s turnaround strategy, emphasizing Boeing’s efforts to cut production costs, reorganize, and replace its chief financial officer. Finally, the case raises two future concerns, the state of labor relations at Boeing and the prospects of product development.
 

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Contact Person: Isaac Cohen, Department of Organization and Management, COB, San Jose State University, One Washington Square, San Jose, CA 95192.
VOICE (408)9243567, fax (408)9253555; e-mail: cohen_i@cob.sjsu.edu
 

One of the objectives of this case was to bring strategic management to a very personal level by discussing it in the context of an organization students should be very familiar with—a business school. The case is written so the focus can be on the Anderson Schools of Management or on one’s own business school. Our experience is that the students and faculty can relate to the case. It helps both groups acknowledge the difficulty in the strategy making processes.

The target audience is a graduate or a senior level strategic management class. It may be used for case topics including competitive environment, sources of competitive advantage, managing non-profit organizations, strategic intent, strategic leadership, organizational structure and controls, managing multiple stakeholders, and strategic implementation. Since the case is integrative in nature, it is best suited near the end of the course.

This case describes the business of business education. Like many organizations, business schools are facing an increasingly complex and competitive environment. The strategy making process at the Anderson Schools of Management at the University of New Mexico is examined. In order to move the organization toward committing to a mission, the Dean mounted a campaign to change the structure of the organization. Once the structure is changed, the task becomes how to decide which direction the business schools should take.

Multiple strategic tools can be illustrated with this case. The discussion questions begin at the more macro—formulation level and move to the more micro—implementation level. The teaching objectives relate to how one goes about strategy implementation when there are multiple stakeholders and reaching a level of consensus is critical. The importance of having the structure and processes congruent with the strategy is highlighted.

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Contact person: Yolanda Sarason, Assistant Professor, Anderson Schools of Management, University of New Mexico, Albuquerque, NM 87131-1221.
Phone: (505) 277-3909 Fax: (505)-277-7108 Email: sarason@unm.edu
 
 

This case demonstrates the financial problems of Sears. The new strategy of marketing on the Internet is risky with the lack of experience and expertise in this area. Sears is not financially stable as the bankruptcy Z-score indicates. Students can be encouraged to perform a thorough analysis of the business unit and corporate strategy of Sears. Sears garners more revenues from credit interest than from merchandise sales. Many analysts view this as a problem. Finally, Students can address the problems of unethical behavior in several ways.

The teaching note was written for undergraduate classes in strategy. The case could be used near the end of the course as a fairly comprehensive complex case. The case could also be used in a Business and Society course to demonstrate ethical issues in large businesses today.

Sears, Roebuck & Company is an old mass merchandising retail company that has been highly successful for over a century. Through its history, Sears has been highly diversified with products such as insurance, real estate services and Internet access provision but is best known for products such as appliances and tools. In the last decade or so, Sears has been less profitable, has sold off much of the diversified goods and services, and is returning to its core product line of mass merchandising. A recent strategy is the use of an Internet site to sell appliances. However, Sears does not have the experience and expertise of many Internet merchants.

Almost 75% of Sears stock is held by institutional investors and dividends have been decreasing while stock prices have remained flat or gone down. Analysts continue to rate Sears, Roebuck & Company as a "hold" or "buy" while condemning Sears for its lax credit policies, for its bloated accounts receivables and for deriving more profit from credit than from sales of merchandise. Sears does not disclose the separate revenues from sales and credit interest. The Altman Z-score, which is a predictor of bankruptcy, indicates that Sears is in danger of bankruptcy within the next two years if there is no change in operating procedures. Sears also has many image problems as a result of labor law and federal bankruptcy violations.

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*Contact Person: Jan Zahrly, Dept. of Management, University of North Dakota, Grand Forks, ND 58202 -- Voice (701) 777-4697; FAX (701) 777-4092; zahrly@badlands.nodak.edu
 
 

Smit’s Company was a small, family owned manufacturer and marketer of roasted and candy covered nuts. The company sold its products through a retail store, national fund raising groups, and a catalog distributed throughout the country. The current CEO, who was the great-grandson of the founder, took over the company three years ago. The three distribution channels offered varying prospects for growth. The retail store was successful but hampered by a less than attractive location, while the fund raising business posed a number of problems such as slow growth and difficulty in retaining customers. The catalog business appeared very attractive in terms of growth and profitability, but the CEO was unsure whether the company had the competency to compete effectively in this segment. Faced with limited resources, the company has to decide which distribution channel to emphasize to achieve its growth objective.

This is a field researched case of a $8.69 million (in sales) company set in April, 1999. The instructor’s manual presents an analysis of the case using the resource-based view, with particular emphasis on identifying the firm’s resources, evaluating them in terms of imitatability, etc and assessing if the firm’s resources match the opportunities in the different distribution channels.
 

This case examines a Southern California independent motor repair shop. The firm is dealing with the issues of how to 1) grow within a shrinking industry, 2) diversify, 3) increase customer awareness, 4) distinguish itself through certifications, 5) create standards within the industry, and 6) develop an exit strategy.

The objectives are to: 1) expose students to the difficulty of defining and maintaining a competitive niche, 2) analyze the pros and cons of expanding their existing electrical motors, sales and control panels departments vs. diversification, 3) describe the complexity of working with federal and state bureaucracies and trade associations in the creation of industry standards, 4) discuss the background behind making a decision for attaining various kinds of certifications, including ISO 9002, Underwriters Laboratories (UL) 508 and 845, and the Electrical Apparatus Service Association (EASA) Quality Standards, 5) use a quality perspective to discuss the production process from design to finished product, 6) analyze the importance of the value chain, relationship marketing and advertising, 7) examine the organizational change brought on by the use of a psychologist, and 8) review the various options available as exit strategies.

This case is intended to be used at either the undergraduate or graduate level course in strategic management, operations management or entrepreneurship. It can be used in the early or middle part of the course. It is of intermediate complexity covering issues of quality, including ISO 9000 and UL certifications, creating a distinctive market niche, and a philosophy of "empowering their employees," and "enabling their customers."

The Brithinee Electric case deals with twin brothers, Wally and Don Brithinee, who strive to make a difference within the motor repair and electrical control panel industries. As an independent company, Brithinee Electric seeks to "raise the level of expectations" in two ways: first, by educating their customers through specialized reports and seminar presentations, and secondly, by actively participating in industry standard creation via the Electrical Service Apparatus Association (EASA) and various federal and state agencies.

Brithinee Electric is in three business areas: 1) the repair of industrial motors up to 1000 HP, 4000 volts, and currently up to 3 tons, 2) the distribution of industrial motors, primarily for Toshiba and Baldor, and 3) design and manufacture of customized control panels for industrial integrated systems.

The firm started in 1963 when Don and Wallace, Jr. Brithinee helped their father repair industrial motors. By 1988 the company had 23 employees, $4.6 million in revenue. By 1999, they had grown to 50 employees and $6.7 million in revenues.
 

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Contact Person: Harold Dyck, IDS Dept./CBPA, CSUSB, 5500 University, San Bernardino, CA 92407.
Phone: (909) 880-5765; FAX (909) 880-7176; e-mail hdyck@csusb.edu.

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This case is appropriate for analyzing a mature services industry. The most appropriate place to use this case is at the beginning of a Strategic Management class, to understand concepts like competitive advantage, Porter's 5 aspects of competition, and the BCG and GE matrix for analyzing the progression of businesses. This is also a services industry, as opposed to goods, and deals with the intangible nature of the product, consumer satisfaction and segmentation strategies, distribution strategies and product differentiation. This case also provides a look into an industry that is heavily dependent on government regulation and technological advances.

The teaching note was written for an undergraduate course in Strategic Management. It is to be used earlier in the curriculum to provide students with the capability of effectively understanding the nuances of an industry. The case can also be used for Marketing, Finance/ Economics, and Sales Management.

The life insurance industry in the US, as a mature industry, is currently facing many competitive pressures from within the industry, other financial services companies, technology requirements, alternative distribution outlets, legislative changes, consumer trends, and suppliers. The life insurance industry accounted for 16.1% of financial assets of consumers in the US in 1994, but this share is predicted to be lower in the near future.

Many challenging issues face the life insurance industry. There is competition between life insurance companies and also competition from banks and mutual funds companies. Technology and consumer trends are resulting in new distribution channels such as the Internet and direct marketing, challenging the use of career salespersons. Market conduct issues have also arisen mainly through alleged unethical sales practices. The immediate issue facing all life insurance companies is how to craft a strategy that will address all these competitive trends and achieve competitive advantages.
 

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Contact person: Joo-Gim Heaney, Ph.D., Department of Business Administration,
Franklin & Marshall College, P.O. Box 3003, Lancaster, PA 17604-3003
Tel: 717-291 3895 Fax: 610-525 7238
J_Heaney@acad.fandm.edu
 

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Golf Trust of America (GTA) is one of only two golf course Real Estate Investment Trusts (REIT) in the country. The company’s basic strategy is to acquire upscale golf courses and lease them back to the sellers. The company has been quite successful in the past two years and currently owns forty-six courses in sixteen states. Students should develop strategies for the company for the next five years. Particularly, students should decide whether GTA should continue doing what it has been doing, diversify into other kinds of REITs, or venture into other countries where golf is popular. These options are not mutually exclusive and students may choose to pursue all three.

In 1993, David Joseph and Jack Thorner decided to create a golf course REIT. Their plan was to purchase upscale golf courses and lease them back to the sellers. Their first major success came in 1996 when W. Bradley Blair, II, agreed to sell GTA seven golf courses (the Legend courses) in Myrtle Beach, South Carolina. Blair subsequently became the company’s CEO and moved GTA to Charleston, South Carolina. On February 7, 1997, GTA offered shares to the public for $20 each. The initial offering raised $73 million with 3.91 million shares being purchased.

The money raised from the IPO (Initial Public Offering) combined with a Revolving Credit Facility (RCF) of $125 million from a consortium of banks lead by NationsBank provided adequate acquisition funds. The company now owns forty-six upscale golf courses in sixteen states and has seventeen independent lessees. GTA continues to buy golf courses and is contemplating a move to other countries where golf is a popular sport.

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Contact Person: Robert L. Anderson, School of Business, College of Charleston, Charleston, SC 29424.
Phone: (843) 953-8108, Fax (843) 953-5697
 

This case describes the various types of organizational issues confronting a person who wants to create "culinary works of art" and who then decides to start a company from scratch to fulfill his dream. Ample data is included to allow students to analyze both the industry environment and the current internal situation of the company. Students will have to grapple with various issues - organizing for efficiency, reconciling conflicting sales and financial data, and how/if the company can achieve profitability. The case is specifically designed to allow students to perform "what-if" financial projections to assess the impact of specific recommendations on the company's bottom line.

The case is designed for use in a Strategic Management course (either undergraduate or graduate). It can be used in the portion of the course that addresses the formulation of strategies at the single-business level. The case allows students to conduct both an industry and company situation analysis and to enhance their skills in developing proforma financial projections based on recommendations. It may also be useful in courses in Entrepreneurship or Small Business Management to illustrate the numerous challenges confronted by a small business.

Joseph "Joe" Cotrone, founder and majority owner of Giuseppe's Original Sausage Company, was proud of the company's accomplishments after seven years of operations. Since 1992, Joe had introduced over 80 varieties of specialty sausage, viewed as distinctively different, to the Memphis area. Unique ingredients, such as exotic meats, unusual spices, and wine, were combined in a specialized production process to make sausage with an unconventional taste. While sales had increased by an average of 22.6% per year since 1994, the company did not "break-even" until 1997. However, Joe does not believe the company has turned the corner to becoming a consistently, profitable business.

Joe's passion centered on creating new and different varieties of sausage - not on managing the financial, marketing and distribution, and organizational operations of his company. A tenuous financial position, ambiguous procedures surrounding product costing and product pricing (for example, Joe only had sales invoices for 50% of his total 1997 sales), uncertain distribution of the sausage products, and investor uncertainty, presented challenges to Giuseppe's future success. Joe ponders the changes which must be implemented to ensure the financial stability of his company.

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Contact Person: Jana F. Kuzmicki, Christian Brothers University, 650 East Parkway South, Memphis, TN 38104.
Voice: 901/321-3304; FAX: 901/321-3566; E-mail: jkuzmick@cbu.edu.