1 Madonna 21 2 Laura Ashley Holdings plc: The Battle for Survival 26 3 The US Airline Industry in 2002 33
4 DaimlerChrysler and the World Automobile Industry 41 5 Wal-Mart Stores Inc., May 2002 49
6 Eastman Kodak: Meeting the Digital Challenge 62 7 Organizational Restructuring within the Royal Dutch/Shell Group 70 8 Harley-Davidson, Inc., January 2001 77 9 Online Broking Strategies: Merrill Lynch, Charles Schwab and E*Trade 83 10 11 12 Emi and the CT Scanner [A] & [B] 88 Rivalry in Video Games 98 Birds Eye and the UK Frozen Food Industry 109 1
13 14 15 16
Euro Disney: From Dream to Nightmare, 1987–94 116 Richard Branson and the Virgin Group of Companies in 2002 125 General Electric: Life After Jack 131 AES Corporation: Rewriting the Rules of Management 139
This new edition of Cases in Contemporary Strategy Analysis has been developed to accompany the fourth edition of the textbook Contemporary Strategy Analysis. A key feature of the Casebook is its close integration with the concepts and techniques outlined in the textbook. All the cases, except one, have been specially written to link with a speciﬁc chapter of the textbook. (In some instances, the cases apply principles and techniques from more than one chapter.) The main characteristics of the cases are: • Most of the companies featured in the cases are widely known. The fact that most students will have some familiarity with the companies featured in the cases means that the cases will be relatively accessible to students. • Most of the cases are of recent vintage. Most refer to situations in 2001 and 2002. However, whether the case study relates to events in 2002 or (as in the case of the EMI) the 1970s, the important challenge for the instructor is to focus the discussion on the events at the time of the case and to ignore the wisdom of hindsight. • The cases have been designed for use at multiple teaching levels. We have used the cases at MBA, undergraduate, and executive levels. The cases will, of course, need to be taught differently according to the maturity and experience of the class. Nevertheless, our experience is that the cases work well with strategy courses at multiple levels. • Most of the cases have a decision orientation. What strategy should the company follow? What actions should the CEO take next? Such a decision focus invigorates the class by placing students in the positions of senior managers. However, probably the most important learning comes from the understanding that students gain of the strategic circumstances of companies and the rationale for the strategies that they adopt. • Our aim in developing these cases has been to reconcile richness and brevity. By focusing the case around a limited number of issues, we have attempted to keep the cases down to less than 25 pages, including all tables and exhibits. Inevitably this places limits on the breadth and depth of information that 3
students are supplied with and one of the questions frequently posed by students is: “Should we do additional research on the company?” Our answer to this question is a resolute “No.” This will not be time well spent. Management students need to get used to fast cycle analysis and decision making under conditions of imperfect information. The teaching notes we offer are the outcome of our own thinking about the cases and our own classroom experiences. They are intended to provide guidance and suggestions, but we realize that each instructor will teach the same case in an individual, personalized way. The matching of textbook chapters to cases is as shown below.
Case 1. Madonna 2. Laura Ashley Holdings plc: The Battle for Survival 3. The US Airline Industry in 2002 4. DaimlerChrysler and the World Automobile industry 5. Wal-Mart Stores, Inc.: May 2002. 6. Eastman-Kodak: Meeting the Digital Challenge 7. Organizational Restructuring within the Royal Dutch/Shell...