Cases in management

This text is distinguished by its choice of case studies with Australian settings. The book is presented in two parts: the first part discusses case study methodology, addressing both teacher and student; the second part offers a selection of cases covering major areas in management.

Reaching and influencing consumers in the prescription medicine market

Purpose – Celebrex became the first of a new class of drugs known as COX-2 selective non-steroidal anti-inflammatory drugs. It improves treatment for arthritis sufferers without compromising the protective lining of the stomach. The purpose of this paper is to illustrate how direct-to-consumer advertising (DTCA) of prescription medicines can be used to rebuild faith in the cyclooxygenase-2 (COX-2) product category.

Design/methodology/approach – The case is developed using published sources and no input is required from company representatives. The presentation style follows the classic comprehensive case format used in postgraduate teaching programmes.

Findings – Business executives and strategic marketing students would benefit from a discussion on how external environmental factors can suddenly impose a review of marketing strategy. The reader learns how management addresses the business dilemma using DTCA.

Research limitations/implications – A blockbuster rival drug Vioxx is withdrawn due to cardiovascular (CV) health safety concerns. A resulting dominant market situation soon becomes a business dilemma. The Federal Drug Administration calls for a “black box” warning label on Celebrex, the most serious type of warning.

Practical implications – The implications are that having a product in a class of its own is not enough. It highlights the need to communicate to different audiences, to both the medical profession and the end-user. Getting doctors to recommend the medicine and pulling the product through the channel by stimulating patient demand after a health scare are paramount.

Originality/value – This is the first pharmaceutical business case where the withdrawal of a rival product leaves the dominant competitor in a monopoly situation. Contrary to expectation, market share plummets despite the absence of competition.

User satisfaction in sustainable office buildings : a preliminary study

Energy efficiency was first mandated for commercial buildings in 2006 in Part J of The Building Code of Australia (BCA) and regulators are already implementing increased measures in 2010 (ABCB 2010). Further increases will follow as part of the co-ordinated effort to reduce building related greenhouse gas emissions. The introduction of the Energy Efficiency Disclosure Bill 2010 will establish a national scheme to promote the disclosure of information about the energy efficiency of office buildings as well as further highlighting the need for efficiency. Increased energy efficiency in the form of insulation, energy efficient light fittings, sophisticated Building Management Systems (BMS), micro-generation such as solar and wind turbines all result in measurable quantifiable reductions in operating costs for owners and tenants. However convincing all building owners about the sound business case for adopting sustainability measures has not been fully realised. To-date the adoption of cutting edge sustainable buildings in Australia is restricted to a few industry leaders, such as Investa and ISPT in Victoria for example. Sustainable building owners and tenants often benefit from reduced operating costs during the building lifecycle although the ‘intangible’ effect on businesses (e.g. employee productivity) is uncertain. This aspect has not been accurately quantified and has not been included as part of the measurement of sustainability in buildings.

This study will allow property stakeholders, including government policy-makers and investors/developers, to better understand the optimal type and level of sustainability to be incorporated into the built environment. In addition this knowledge will enable policymakers to make more informed decisions with regards to the likely impact of the legislative measures they propose in respect of sustainability and buildings in The Building Code of Australia (BCA) and other relevant legislation.

A framework for designing mainstream educational e-simulations

This chapter describes the knowledge, skills, and technology needed for the effective design of educational e-simulations. It reviews the features and functionality of a typical experiential e-simulation and discusses approaches useful in its design, with impact on its subsequent construction and deployment in the field. The chapter reports a conceptual study examining development experiences gained in the construction of several educational e-simulations and folds these experiences into a framework for understanding e-simulation design. The chapter finally uses the framework to compare and contrast different approaches taken while designing and delivering two e-simulations, based on the same technology and business case, but delivered to distinct cohorts of university students.

Board diversity or gender diversity? Perspectives from Europe, Australia and South Africa

Board diversity has been a hot topic for several years. However, it is only in recent years that pertinent questions have been asked about what is actually meant by board diversity and what would constitute a board with an ideal diversity. In the past the debate on board diversity has always been dominated by the lack, or very low numbers, of females on boards. This has been a fact in most countries with sophisticated corporate law and corporate governance systems in place. The issue of female representation on boards still dominates the board diversity debate, but other forms of diversity, including age, cultural, nationality and race have also become part of the debate. The quest is to find answers to questions like whether a diversified board would be better, and whether diversified boards will ensure a better return for investors; in other words, whether there is a ‘business case’ to be made out to have diversity on a board. Many studies have been done, but the answer is still evasive. This is not totally unexpected as the criteria used for these studies differ and the circumstances and complexities of business are such that a final conclusion will probably never be reached. In this article we focus on the board diversity debate in Europe, Australia and South Africa – three completely different parts of the world. In addition we devote Part V to put the topic of board diversity in a broader context, but paying particular attention to gender diversity.

An exploratory study on the factors influencing managers’ use of mobile tablets

Although mobile tablets such as iPads are being used by many managers, there has been a relative dearth of research on the managerial use of the mobile technology. This exploratory study aims toidentify and understand the factors influencing the use of mobile tablets by managers. Semi-structured interviews were conducted with a panel of seven managers who had incorporated mobile tablets into their work routine. The study has found that the mobile tablet is a suitable device for managerial tasks due to these nine main factors: non-routineness, collaborative nature, time-critical, informationcentric, mobility, user friendliness of the interface, reliability, connectivity, and autonomy. Thisexploratory study fills in the research gap and provides a basis to help managers establish a business case for or against mobile tablets adoption.

Consumer reactions to corporate social responsibility (CSR) in Thailand: the moderating effect of competitive positioning

Purpose – The purpose of this paper is to understand the business case for corporate social responsibility (CSR) in Thailand by focusing on the consumer-organisational relationship and test the conceptual framework of Du et al. (2007). Design/methodology/approach – A quantitative study was conducted using a mall intercept survey of 184 Thai mobile phone service provider consumers in Bangkok, Thailand. Findings – A CSR emphasised brand is more likely than non-CSR emphasised brands to accrue consumer CSR awareness, positive attitude to company motivations and beliefs in the CSR of that company. Although beliefs are associated with consumers’ greater identification and advocacy behaviours towards the CSR emphasised brand than the non-CSR emphasised brands, they are not associated with loyalty. Practical implications – The paper provides potential guidance for companies to more effectively position and communicate their CSR activities to create differential advantages. Originality/value – Findings of the study demonstrate some support for a business case for CSR in Thailand.

Simplifying medical additive manufacturing: making the surgeon the designer

Additive Manufacturing, a technology which has been in existence since three decades, is now successfully being transitioned from a research setting to finding technologically and financially viable end-user applications. A key sector in which Additive Manufacturing is being used is the medical devices and healthcare sector. Drivers in this sector include the ability to create customized, patient specific devices and implants with quick turnaround time in a cost-effective manner. Doctors and surgeons are important change agents and innovators in the creation of new healthcare devices as well as surgical methods. Often times, they may find it necessary at first to build devices and plan surgeries which are not even being thought of or acted upon by the major healthcare companies. In this sense, they perform the roles of designers, creating new ideas and improving on them until they can be implemented and adopted by others. However, the scope for performing this creative activity is often limited in their workplaces, with resource, time and financial impediments often being present. Additive Manufacturing can be helpful to speed up the iterative process of designing such medical devices or planning surgeries as well as help convince people outside of the surgery room of the feasibility and business case for such innovations. This paper proposes to introduce a framework of design, processes and tools which will enable non-engineers (specifically surgeons) to create custom-built products. It is hoped that this paper will motivate more surgeons and non-engineers to get involved in the process of designing for additive manufacturing.

Feasibility and acceptability of reducing workplace sitting time: a qualitative study with Australian office workers

BACKGROUND: Office workers spend a large proportion of their working hours sitting. This may contribute to an increased risk of chronic disease and premature mortality. While there is growing interest in workplace interventions targeting prolonged sitting, few qualitative studies have explored workers' perceptions of reducing occupational sitting outside of an intervention context. This study explored barriers to reducing office workplace sitting, and the feasibility and acceptability of strategies targeting prolonged sitting in this context.

METHODS: Semi-structured interviews were conducted with a convenience sample of 20 office workers (50 % women), including employees and managers, in Melbourne, Australia. The three organisations (two large, and one small organisation) were from retail, health and IT industries and had not implemented any formalised approaches to sitting reduction. Questions covered barriers to reducing sitting, the feasibility of potential strategies aimed at reducing sitting, and perceived effects on productivity. Interviews were audiotaped and transcribed verbatim. Data were analysed using thematic analysis.

RESULTS: Participants reported spending most (median: 7.2 h) of their working hours sitting. The nature of computer-based work and exposure to furniture designed for a seated posture were considered to be the main factors influencing sitting time. Low cost strategies, such as standing meetings and in-person communication, were identified as feasible ways to reduce sitting time and were also perceived to have potential productivity benefits. However, social norms around appropriate workplace behaviour and workload pressures were perceived to be barriers to uptake of these strategies. The cost implications of height-adjustable workstations influenced perceptions of feasibility. Managers noted the need for an evidence-based business case supporting action on prolonged sitting, particularly in the context of limited resources and competing workplace health priorities.

CONCLUSIONS: While a number of low-cost approaches to reduce workplace sitting are perceived to be feasible and acceptable in the office workplace, factors such as work demands and the organisational social context may still act as barriers to greater uptake. Building a supportive organisational culture and raising awareness of the adverse health effects of prolonged sitting may be important for improving individual-level and organisational-level motivation for change.

E-business security management for Australian micro SMEs - a case study

Small and Medium Business Enterprises (SMEs) make a significant contribution to the economic viability of the Australian economy. The benefits of performing business in an on-line environment has been realised by Australian SMEs as the use of the Internet for performing business activities both with consumers and other businesses continues to increase. The findings of an empirical study and other evidence available indicate the uptake and advancement of performing e-business activities shall be dependent on two key complementary elements: first, the ability of Australian SMEs to secure their e-business systems; and second, the availability of an approach to recommend a practical e-business security management strategy. This paper presents the results of a case study which applied a previously developed methodology to a micro SME e-business system. The purpose was to validate the ability of the Australian Small to Medium Enterprise E-business Security Methodology (ASME-EBSM) to provide an effective security management strategy for Australian SMEs. The outcome demonstrated that this approach was both feasible and realistic for providing recommendations to secure the e-business activities performed and to protect the micro SME e-business system.

Home based business in suburban peripheral regions and government policy: a case study of Casey, Melbourne, Australia

Home based businesses (HBB) are increasingly becoming an alternative to salaried employment. This research explores the potential for HBB to contribute significantly to the economic development of peripheral metropolitan centres. Without economic development, these centres remain dormitory suburbs with unresolved associated social and ecological issues. By mapping the diversity and limitations of HBB in the City of Casey, an outer suburban peripheral area of Melbourne, Australia, this study aims to evaluate what exists and the response by governments at all levels to further business development. This study finds that the role of government is restricted to broad initial start-ups, with no programs or support for the type of innovative HBB that need to be husbanded and encouraged to grow outside of the narrow confines of their home base.

Does privatisation drive innovation? Business model innovation through stakeholder viewpoints: the case of Sydney Airport 10 years post-privatisation

Broad economic and social reform, rapid technological change and increasing global competition have meant that organisations must consider all aspects of their business model in order to successfully create and capture ongoing customer value. In this study it is proposed that business model innovation must always consider and incorporate the symbiotic and interdependent relationship that stakeholders have with an organisation. One particular aspect of economic reform, privatisation, has become an important driver of economic growth in many economies, particularly when linked with the rapid growth of air travel. Privatisation of an airport can generate a radical change in the overall business model for the airport owner and the various stakeholders involved in the operation of the airport. Sydney Airport has restructured its overarching business model to meet the demands of stakeholders. Using feedback from key stakeholders, this research examines the generally accepted view that airport privatisation leads to an improvement in airport performance. Chesbrough's Business Model Framework provides a lens to assist the analysis of Sydney Airport operations before and after privatisation, and provides valuable insights into the impact of privatisation on business model innovation. © Cambridge University Press and Australian and New Zealand Academy of Management 2014.

Innovation theories in retrospect : the case of electronic commerce adoption in small business in New Zealand

A review of the technological innovation adoption literature on small to medium-sized enterprises (SMEs) provides useful insights into factors influencing innovation adoption but points to the need to introduce more determinants of innovation adoption to SMEs research. This research is interested in identifying these factors and hence, introducing more potential determinants to electronic commerce (EC) adoption research in SMEs. Therefore, this research attempts to extend the technological innovation theories to EC adoption research in SMEs by identifying potential constructs and factors from these theories and then checking their face validity using three case studies in New Zealand. This research endeavours to shortlist and discuss the most important determinants of EC adoption and to eliminate the least relevant ones.