Download
1 / 53
E N D
Case 1: Application Case in Chapter 3
Zane's Cycles, is an independent bicycle shop run by its thirty-something founder, Chris Zane sells the most bikes in the New Haven, Connecticut, area. To many people, Chris Zane is the epitome of today's manager. Zane had a lot of faith in his ability to be successful. He learned all he could in college about running a business--particularly focusing on satisfying customers and implementing new and creative techniques to achieve his goals.
When those two competitors went out of business, he negotiated a deal with the phone company. He agreed to pay the remainder of the two companies' Yellow Page advertising. Callers to either of those numbers heard not only, "The number you are calling is no longer in service," but also, "If you are in need of a bicycle dealer, Zane's Cycles will be happy to serve you." By pressing zero, the caller is automatically transferred to Chris!
Chris recognized that he had to give the appearance of being a larger business--especially if he wanted to expand nationwide and possibly abroad. He contracted with a marketing co-op firm to develop a thirty-two-page mail-order catalog. Although his creativity had boosted sales, Zane recognized that most of his business came from customers who visited the shop. He hired sales representatives and gave them the freedom to make whatever decisions they needed to please the customer and make a sale.
But ringing up an "immediate" sale is not the primary focus. If customers need a bike part--a tire valve cap or a chain link--salespeople simply give it to them. The store also gives away cellular phones so bike riders can keep in touch with others or be prepared to make a call for assistance if needed. Zane also believes that any successful business owes its success to the community that supports it. It's a relationship that must be nurtured.
Question 1 • Identify and describe the entrepreneurial spirit exhibited by Chris Zane. How has this affected his business?
Entrepreneurial Spirit Entrepreneurship is the process of initiating a business venture, organizing the necessary resources, and assuming the risks and rewards. Entrepreneurs usually start small business--one that has fewer than 500 employees.
2. Why the increased popularity? a) There has always been a segment of the population that wanted to control its own destiny. b) Recent changes in the economy have stimulated interest in being one's own boss. (1) Corporate downsizing. (2) Self-employment opportunity financed in part by their severance pay or early retirement bonus.
(3) Others see colleagues and friends lose their jobs and voluntarily cut their corporate ties and choose self-employment. (4) Growing options in franchising. Less risk. Lower failure rate.
Answer to Question 1 • He exceeded customer expectations and competitors' offers. Taking over the phone numbers of defunct competitors was an act of genius. Giving salespeople the power to make decisions to make the sales. Focusing on customer needs, etc.
Question 2 and its answer • Do you believe that Chris Zane endorses the concept that the "customer is king"? Support your position with examples. • Answer- Letting customers browse, giving away items to meet customer needs, hiring knowledgeable sales people who help and advise, etc.
Total Quality Management • Continuous improvement • Employee empowerment • Accurate measurement • Customer focus • Overall quality
Question 3 • Is Chris Zane a socially responsible employer? Does your opinion change when you consider some of the socially responsible actions he takes has helped him achieve a 700 percent return on investment?
Arguments for Social Responsibility • Public expectations • Long-run profits • Ethical obligations • Public relations image • Better environment
Arguments for Social Responsibility • Fewer government regulations • Balance of responsibility and power • Stockholder interests • Possession of resources • Prevention versus cures
Arguments Against Social Responsibility • Violation of profit maximization • Dilution of purpose • Costs outweigh benefits • Too much power • Lack of skills • Lack of accountability • Lack of broad public support
Answer to Question 3 • Yes, he’s heavily involved with the community and places the customer first. The fact he has a positive business/profit outcome does not diminish the social responsibility of his actions.
Case 2: Application Case in Chapter 4
Question 1 • What type of grand strategy(ies) have Chao pursued? Cite specific examples.
Answer to Question 1 • None of the strategies fit directly, the closest being growth--growth through more sales revenues, more employees, or more market share, through direct expansion, new product development, quality improvement.
Question 2 Michael Porter identified three generic strategies that companies can follow to develop a competitive advantage. Which one of the three do you believe Chao is primarily using? Discuss and support your choice.
Answer to Question 2 • Focus (uniqueness in a narrow market) strategy. He chose to go after market segments where sales rarely exceeded $10 million and where little drug name recognition existed.
Question 3 • What characteristics does Allen Chao possess that indicates he is an entrepreneur? Give specific examples.
Answer to Question 3 • A number of common characteristics have been found; hard work, self-confidence, optimism, determination, a high energy level, and even good luck. Entrepreneurs have a high need for achievement. They believe strongly that they can control their own destinies. They take only moderate risks. His persistence in face of obstacles, giving up so much of his company to get money, the continually execution of a very focused strategy, etc.
Case 3: Application Case in Chapter 5
Question 1 1. What types of problems do you see Loida Lewis having to deal with in this case? Explain.
Answer to Question 1 Poorly structured. (1)Lewis did not have the business acumen or the experience of her late husband. (2)The company was losing money.
Question 2 2.What decisions did Loida Lewis make that helped turn around the ailing company? Would you classify them as programmed or non-programmed? Why?
Answer to Question 2 She made several major decisions, paring down the company to enhance its core business operations. She sold off the company limousine and the jet, cut headquarter staff in half, and sold off many of the less-profitable companies, focusing on reducing Beatrice's debt. These are all non-programmed to the company, but would be "standard" decisions to save a company money.
Question 3 3. How would you describe Lewis' decision-making style? Cite specific examples.
Answer to Question 3 Behavioral style. (Think intuitively but has a low tolerance for uncertainty) She began molding it in her image. She involves her inner group in decisions and uses compassion to develop a "focused, disciplined, sensitive, and collegial atmosphere."
Case 4: Application Case in Chapter 6Developing Your Diagnostic and Analytical Skills
Question 1 1. Would you describe ABB as more of a mechanistic or an organic organization? Explain and use specific examples to support your position.
Answer to Question 1 It probably was mechanistic but became organic. The redesign made ABB highly adaptive, focused on the ability to change rapidly as needed, and used professionals who are technically proficient and trained to handle diverse problems.
Question 2 2.Describe how technology and communications have affected ABB's organizational structure.
Answer to Question 2 Students’ answers will vary based on their assumptions, as the case is not explicit in regards to these elements.
Question 3 3. How would you describe the characteristics of ABB's culture?
Answer to Question 3 Students' responses will vary.
Case 5: You are riding in a car driven by a close friend. He hits a man. You know he was going at least 35 miles per hour in an area of the city where the maximum allowed speed is 20 miles per hour. There are no witnesses. His lawyer says that if you testify that he was driving 20 miles per hour it may save him from serious consequences.
Question 1 1. What right has your friend to expect you to protect him?
Answer to Question 1 • My friend has a definite right as a friend to expect me to testify. • He has some right as a friend to expect me to testify. • He has no right as a friend to expect me to testify.
Question 2 2.Will you testify that your friend was driving 20 miles per hour?
Answer to Question 2 • Yes. • No.
Case 6: On a beautiful deserted island in the middle of nowhere, the following people are suddenly stranded by a shipwreck: 2 Italian men and 1 Italian woman 2 French men and 1 French woman 2 German and I German woman 2 Greek men and 1 Greek woman 2 English men and 1 English woman 2 Bulgarian men and 1 Bulgarian woman 2 Japanese men and 1 Japanese woman 2 Chinese men and 1 Chinese woman 2 American men and 1 American woman 2 Irish men and 1 Irish woman
One month later on the same absolutely stunning deserted island in the middle of nowhere, the following things have occurred: One ___________ man killed the other ___________ man for the woman. The two ___________ men and the ___________ woman are living happily together in a house. The two ___________ men have a strict weekly schedule of alternating visits with the ___________ woman.
The two ___________ men are sleeping with each other and the ___________ woman is cleaning and cooking for them. The two ___________ men took one long look at the endless ocean, and another long look at the ___________ woman, and started swimming. The two ___________ men have faxed Tokyo and are awaiting instructions. The two ___________ men have set up a pharmacy, a liquor store, a restaurant and a laundry, and have got the ___________ woman pregnant in order to supply employees for their stores.
The two ___________ men are contemplating the virtues of suicide because the ___________ woman keeps endlessly complaining about her body; the true nature of feminism; how she can do everything they can do; the necessity of fulfilment; the equal division of household chores; how sand and palm trees make her look fat; how her last boyfriend respected her opinion and treated her nicer than they do; but how her relationship with her mother is improving and how at least the taxes are low and it isn’t raining.
The two ___________ men are waiting for someone to introduce them to the ___________ woman. The two ___________ men have divided the island into North and South and set up a distillery. They do not remember if sex is in the picture because it gets sort of foggy after the first few litres of coconut whisky. But they’re satisfied because at least the English aren’t having sex either.
One month later on the same absolutely stunning deserted island in the middle of nowhere, the following things have occurred: • One Italian man killed the other Italian man for the woman. • The two French men and the French woman are living happily together in a house. • The two German men have a strict weekly schedule of alternating visits with the German woman. • The two Greek men are sleeping with each other and the Greek woman is cleaning and cooking for them.
