Case_In_Point_7th_Edition_Page001_183_2

Cases
CS1: Palm Tree Plantation Exports grows, sells and leases twenty different varieties of palm trees and
other tropical plants throughout the United States. They posted a net income of $95m, down from $105m
last year. Yet their market share grew by 7%. What’s going on and how can we turn it around?
CS2: A Hong Kong company is acquiring a US video game maker. What considerations should be
made?
CS3: You have been brought in as the CEO of Hootie, Inc. The company started making surfboards in
the 1960s. Hootie was the market leader with a 75% market share well into the 1980s. However,
competition increased as the sport became more popular, and Hootie missed the trend toward smaller
boards. Last year, Hootie had a 10% market share. How can we grow the company, regain market
share and return the brand to its former glory?
CS4: XCV has developed a software program that will allow the consumer to find all references to its
operation on the internet and either erase or edit its content. They want us to determine the domestic
market size, breakeven, price and first year’s profits.
CS5: Flintstone, Potter and Coke is a mid-sized ad agency. It was established as a regional player but
soon picked up some national accounts, including FedEx, Kellogg’s and Johnny Walker Scotch.
However, last year it lost two of its national accounts and hasn’t been able to replace them. The CEO
wants to buy a running shoe company that was big during the 1950s - 1980s until it was pushed out of
the spotlight by Nike and Reebok. Is this a good idea? At first blush, what are the pros and cons of this
idea? (I want you to list the pros and cons before you draw your structure.)
CS6: Our client is a global automaker headquartered in Detroit. Its motor parts division, with 20%
industry market share, carries almost 500,000 parts, options and accessories for vehicle customization.
The client has not been profitable for several years and the CEO suspects that the company’s high
degree of vertical integration is hurting them. The client makes about 80% of its own parts, compared to
40% at its primary competitors. The CEO has asked for our help. How would you approach this issue?
CS7: A large Japanese electronics company wants to enter the high-end headphones market. Is this a
good idea?
CSa: The CEO of a large Italian electronics firm has come out with a new computer tablet, which is
much like the iPad. How should they price their product?