Strategic Management
5th Edition
John Thompson with Frank Martin
1844800830
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Case Studies
All the cases on the web site have been written specifically
for classroom discussion and they should not be taken to
reflect either effective or ineffective management. Some
have been written with the full co-operation of the companies
concerned; others rely more substantially on other published
sources. The copyright in every case lies with the relevant
author.
The cases cover specific issues in strategy, as explained
in these brief abstracts. Although some of them were written
a few years ago, they are all still relevant for teaching
purposes. Some of them are complemented by shorter Minicases
in the Strategic Management text and the subsequent progress
of all of them can be readily tracked on the Internet - although
clearly this is not required for teaching the cases themselves.
The links below will take you to the abstracts for each
case. To access the pdf files for the complete cases, click
on the links below each abstract. Teaching Notes are available
for these case studies, on the password protected lecturer
area of this website.
The National Trust
This case study is a longer version of the Minicase in the
Part One Supplements. It explains the work, the objectives
and the performance of the National Trust, and concludes
with an examination of the Trust in terms of E–V–R
(environment–values–resources) congruence.
It is an ideal ‘first case’ for
a strategy course as it deals essentially with core strategic
management principles.
Access complete case study here
P&O, Princess and the International
Cruise Industry
This case looks at the nature of competition in the growing
passenger cruise industry.
The following comments summarise the key questions being
addressed:
Mike Moulin was distracted as he looked out over the
calm, blue Caribbean waters. He was soon to go home on
leave – but afterwards he would not be returning
to this ship. His employer, Princess Cruises, had invited
him to be the first Captain of Grand Princess, the largest
cruise ship in the world and due for her maiden voyage
in Summer 1998. Grand Princess would split her cruising
year between the Caribbean and Mediterranean – her
choice of destinations limited by her sheer size. Captain
Moulin knew just how dependent a cruise ship is on its
staff and wondered whether the issues would be any different
on the first Princess ship to require a crew of over 1000
people.
Since this case was written P&O Princess
has been acquired by industry leader Carnival Cruises. This
story is documented in a separate case (also written by John
Thompson) which is available from the European Case Clearing
House.
Access complete case study here
Tesco
Leading UK supermarket group, Tesco, can serve
millions of Internet customers with home deliveries from
many of its stores. In doing this it is not alone – its
main rivals, ASDA and Sainsbury’s, also offer home
deliveries driven by orders over the Internet. Tesco also
runs an on-line bookshop. These are developments which have
been facilitated by the power and potential of information
technology (IT).
Price cutting, an important competitive strategy
in retailing, does not truly distinguish one food retailer
from another, as price cuts can be followed by rivals, although
creative advertising can suggest a price differential when
one really does not exist. Supply-chain cost savings, also
facilitated by IT, however, can be an important source of
advantage and improved profitability.
This case looks at how Tesco exploited IT in
the early 1990s to drive competitive advantage.
Since the case was first written in 1996 events
have moved on, but the basic strategic issues raised here
remain pertinent and relevant. Tesco, for example, now shares
live sales information with its suppliers and, by embracing
IT themselves, more and more suppliers are linked electronically
to Tesco. Again using the power of the Internet, e-markets
allow any retailer to post up ‘confidential’ information
but limit access to it through password-driven ‘firewalls’.
Going beyond the advantages discussed in this case, the Internet
allows retailers to invite suppliers to engage in bids or
auctions when either the retailer has a specific shortage
or a supplier has excess inventory.
This case has two themes:
• the use of information technology by Tesco to strengthen
its competitiveness, and
• the role of information technology in forging strategic
linkages between Tesco and its distributors and suppliers.
Information technology has both reduced costs
and strengthened Tesco’s competitiveness by improving
its overall level of customer service.
Access complete case study here.
Virgin
This case highlights how Virgin grew into and then expanded
from a music company to become an international leisure business
which later diversified into air travel by starting its own
airline, Virgin Atlantic. The case then traces how music
and retailing were largely divested leaving Virgin a much
more focused business, which then diversified again as it
exploited the potential of the Virgin brand. It also discusses
how Virgin was launched on the stock exchange and later reprivatized.
It is the study of the growth of an entrepreneurial
company and how the need for cash to fund expansion affected
the strategic development.
Virgin cannot be separated from
its founder and chairman, Richard Branson. Consequently,
it is also the study of the motivation and style of a charismatic
entrepreneur and strategic leader and his impact upon the
culture and strategy of an organization.
Virgin can usefully be studied alongside the
Thorn EMI case.
Access complete case study here
The Sony Corporation
Sony, which will be 60 years old in 2006, became renowned
throughout the world as an innovatory, pioneering company
with an international presence and reputation in the consumer
electronics industry. Sony is now an acknowledged leader
in a number of very competitive and dynamic industries where
no single company enjoys a dominant market share.
Sony has always sought to develop unique products
rather than copy other companies. Although profitable, profitability
per se has not been the driving objective. Sony has invested
in research and development at a rate above the average both
for its industry and for Japan. Technologists are seen as
a critically important resource and allowed freedom to work
within relatively open-ended briefs.
However, the company has come under enormous
pressure as it has struggled to remain a leader in the changing
world of consumer electronics and, as a result, there have
been major changes in its strategies and structure in the
1990s and again in the early 2000s.
This case study traces the growth, development,
successes and setbacks of The Sony Corporation. It encapsulates
issues of corporate and competitive strategies, structural
evolution and the Japanese style of management. Sony’s
strategy of diversification into the American entertainment
industry is examined in detail.
The case deliberately stops before The Sony
PlayStation was launched, taking Sony in a fresh direction,
and, as a consequence, it does not deal with the subsequent
growth of DVD technology.
Access complete case study here
Sony PlayStation 2
This shorter case supplements The Sony Corporation case.
It discusses the rapid growth of Sony’s first video
games machine in the mid–late 1990s – and which
quickly became a major contributor to Sony’s profits – and
the later supply-chain problems which hindered the launch
of the successor PlayStation 2 in 2000. It also considers
the emergence of fresh competition from the Microsoft X-Box.
The importance of The PlayStation to Sony cannot be underestimated
and this case invites discussion of how Sony might develop
PlayStation 3 whilst Microsoft works on X-Box 2.
Access complete case study here
C & J Clarks
C&J Clark (‘Clarks’) is a long-established
family company, based in the UK but well-known in the shoe
industry around the world. By the late 1980s the company
was in decline but has since been turned around with new
strategic leadership. Both marketing and operational issues
have been addressed. This case contains sufficient information
for analysing and evaluating the relevant strategic issues,
but readers are also encouraged to visit Clarks and rival
shoe retailers to check out the latest designs and marketing
strategies.
Access complete case study here |