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Management Mistakes and Successes, Tenth Edition

Book Description

Hartley's casebook is rich in content with easy to read case studies that are well suited for business professionals. They'll learn every key aspect of management, from performance and crisises; to mergers and acquisitions. The tenth edition presents more new case studies to illustrate management concepts. These include Google's entrepreneurial strategy, Procter and Gamble, Starbucks, and more. Recent business failures and successes are also examined in a way that offers practical insights and strategic principles. By focusing on the mistakes and successes, this book helps business professionals learn how to become great business leaders.

Table of Contents

  1. Copyright
  2. PREFACE
    1. NEW TO THIS EDITION
    2. TARGETED COURSES
    3. TEACHING AIDS
    4. ACKNOWLEDGMENTS
  3. ABOUT THE AUTHOR
  4. 1. Introduction
    1. 1.1. LEARNING INSIGHTS
      1. 1.1.1. Analyzing Mistakes
      2. 1.1.2. Analyzing Successes
    2. 1.2. ORGANIZATION OF THIS BOOK
      1. 1.2.1. Players in a Time of Economic Crisis
      2. 1.2.2. Great Comebacks
      3. 1.2.3. Entrepreneurial Breakthroughs
      4. 1.2.4. Planning
      5. 1.2.5. Leadership and Execution
      6. 1.2.6. Controlling
      7. 1.2.7. Ethical Mistakes
    3. 1.3. GENERAL WRAP-UP
    4. 1.4. QUESTIONS
  5. I. PLAYERS IN A TIME OF ECONOMIC CRISIS
    1. 2. Walmart—A Winner
      1. 2.1. INTO THE NEW MILLENNIUM
        1. 2.1.1. Invasion of Foreign Markets
      2. 2.2. INGREDIENTS OF SUCCESS
        1. 2.2.1. Management Style and Employee Orientation
        2. 2.2.2. State-of-the-Art Technology
        3. 2.2.3. Small-Town Invasion Strategy
        4. 2.2.4. Controlling Costs
      3. 2.3. A DARKER SIDE
        1. 2.3.1. A Good Neighbor
        2. 2.3.2. Impact on Suppliers
        3. 2.3.3. An Awesome Competitor
        4. 2.3.4. Employee Relations
        5. 2.3.5. Strain on Cities
      4. 2.4. WALMART CONFRONTS THE SEVERE ECONOMIC DOWNTURN
        1. 2.4.1. In the International Arena
        2. 2.4.2. Attempts to Expand into Banking and Other Setbacks
        3. 2.4.3. Cutting Prices of Prescription Drugs
      5. 2.5. EFFORTS TO IMPROVE THE PUBLIC IMAGE
      6. 2.6. COMMENTARY
      7. 2.7. CONSIDER
      8. 2.8. QUESTIONS
      9. 2.9. HANDS-ON EXERCISES
      10. 2.10. TEAM DEBATE EXERCISES
      11. 2.11. YOUR ASSESSMENT OF THE LATEST DEVELOPMENTS
      12. 2.12. INVITATION TO RESEARCH
    2. 3. Procter & Gamble: An Old Strategy is Found Wanting
      1. 3.1. A CHANGE IN COMMAND
        1. 3.1.1. Robert McDonald
        2. 3.1.2. Succession at P&G
      2. 3.2. ISSUES CONFRONTING P&G DURING THE RECESSION
        1. 3.2.1. The Year 2009 and the Emergence of Store Brands
        2. 3.2.2. Cannibalization
        3. 3.2.3. Inventory Costs
        4. 3.2.4. Levels of Management
        5. 3.2.5. The Promote-From-Within Model
      3. 3.3. THE NEW LEADERSHIP AT P&G, 2009 AND BEYOND
        1. 3.3.1. The World's Biggest Advertiser
      4. 3.4. UPDATE
      5. 3.5. CONSIDER
      6. 3.6. QUESTIONS
      7. 3.7. HANDS-ON-EXERCISES
      8. 3.8. TEAM DEBATES EXERCISES
      9. 3.9. INVITATION TO RESEARCH
  6. II. GREAT COMEBACKS
    1. 4. Continental Airlines: Salvaging from the Ashes
      1. 4.1. THE FRANK LORENZO ERA
        1. 4.1.1. The Start
        2. 4.1.2. Lorenzo's Treatment of Continental
        3. 4.1.3. The Demise of Eastern Airlines
      2. 4.2. CONTINENTAL'S EMERGENCE FROM BANKRUPTCY, AGAIN
        1. 4.2.1. Lorenzo's Legacy
        2. 4.2.2. A Sick Airline Industry
      3. 4.3. THE GREAT COMEBACK UNDER GORDON BETHUNE
        1. 4.3.1. Gordon Bethune
      4. 4.4. HOW DID HE DO IT?
      5. 4.5. UPDATE
        1. 4.5.1. Bethune's Legacy
      6. 4.6. CONSIDER
      7. 4.7. QUESTIONS
      8. 4.8. HANDS-ON EXERCISES
      9. 4.9. YOUR PROGNOSIS FROM LATEST DEVELOPMENTS
      10. 4.10. TEAM DEBATE EXERCISES
      11. 4.11. INVITATION TO RESEARCH
    2. 5. Harley-Davidson: A Long-Overdue Revival
      1. 5.1. THE INVASION
        1. 5.1.1. Reaction of Harley-Davidson to the Honda Threat
      2. 5.2. AFTERMATH OF THE HONDA INVASION: 1965–1981
      3. 5.3. VAUGHAN BEALS
      4. 5.4. THE STRUGGLE BACK
        1. 5.4.1. Production Improvements
        2. 5.4.2. Marketing Moves
      5. 5.5. SUCCESS
        1. 5.5.1. Production
        2. 5.5.2. Export Potential
        3. 5.5.3. Specifics of the Resurgence of Harley-Davidson
        4. 5.5.4. More Recent Developments
      6. 5.6. ANALYSIS
      7. 5.7. CONSIDER
      8. 5.8. QUESTIONS
      9. 5.9. HANDS-ON EXERCISES
      10. 5.10. YOUR PROGNOSIS FROM THE LATEST DEVELOPMENTS
      11. 5.11. TEAM DEBATE EXERCISE
      12. 5.12. INVITATION TO RESEARCH
    3. 6. IBM: A Fading Giant Rejuvenates
      1. 6.1. THE REALITY AND THE FLAWED ILLUSION
      2. 6.2. THE ROAD TO INDUSTRY DOMINANCE
      3. 6.3. CHANGING FORTUNES
        1. 6.3.1. Defensive Reactions of IBM
      4. 6.4. IBM PC
      5. 6.5. THE CRISIS
      6. 6.6. ANALYSIS
        1. 6.6.1. Predisposing Factors
        2. 6.6.2. Resultants
        3. 6.6.3. Controversies
      7. 6.7. THE COMEBACK UNDER GERSTNER
        1. 6.7.1. The Quiet Revolution
      8. 6.8. UPDATE
      9. 6.9. CONSIDER
      10. 6.10. QUESTIONS
      11. 6.11. HANDS-ON EXERCISES
      12. 6.12. TEAM DEBATE EXERCISE
      13. 6.13. INVITATION TO RESEARCH
  7. III. ENTREPRENEURIAL ADVENTURES
    1. 7. Google—An Entrepreneurial Juggernaut
      1. 7.1. BRAIN DRAIN
      2. 7.2. SERGEY BRIN AND LARRY PAGE AND THE START OF GOOGLE
        1. 7.2.1. The Beginning
      3. 7.3. THE EARLY GROWTH YEARS
        1. 7.3.1. Creating a Different Advertising Model
      4. 7.4. CHARGING AHEAD
        1. 7.4.1. A New CEO
      5. 7.5. GOING PUBLIC
      6. 7.6. AFTER THE IPO
        1. 7.6.1. Google's Poaching of Talent
      7. 7.7. ANALYSIS
        1. 7.7.1. How Did They Do It?
      8. 7.8. POTENTIAL THREATS TO GOOGLE
        1. 7.8.1. Litigation
        2. 7.8.2. Limits to Growth
        3. 7.8.3. A Climate of Arrogance and Cockiness?
      9. 7.9. UPDATE—GOING INTO 2010
        1. 7.9.1. Philanthropic Efforts
        2. 7.9.2. Microsoft Bids for Yahoo
        3. 7.9.3. The Recession of 2008–2010
      10. 7.10. THE THREAT THAT GOOGLE POSES TO OTHER FIRMS
      11. 7.11. CONSIDER
      12. 7.12. QUESTIONS
      13. 7.13. HANDS-ON EXERCISE
      14. 7.14. TEAM DEBATE
      15. 7.15. INVITATION TO RESEARCH
    2. 8. Starbucks—A Paragon of Growth and Employee Benefits Faces Storm Clouds
      1. 8.1. HOWARD SCHULTZ
        1. 8.1.1. To Get a Piece of the Action
      2. 8.2. THE GROWTH BEFORE GOING PUBLIC, 1987–1992
        1. 8.2.1. National Expansion
        2. 8.2.2. Employee Benefits
        3. 8.2.3. Investing for Further Expansion
        4. 8.2.4. Going Public
      3. 8.3. STARBUCKS BY 2006–2007
        1. 8.3.1. Threats
        2. 8.3.2. Commentary
      4. 8.4. COPING WITH THE ECONOMIC AND COMPETITIVE THREATS
      5. 8.5. CONSIDER
      6. 8.6. QUESTIONS
      7. 8.7. HANDS-ON EXERCISES
      8. 8.8. TEAM DEBATE EXERCISE
      9. 8.9. INVITATION TO RESEARCH
  8. IV. PLANNING
    1. 9. Euro Disney: Bungling a Successful Format
      1. 9.1. PRELUDE
        1. 9.1.1. Optimism
        2. 9.1.2. The Location Decision
        3. 9.1.3. Financing
        4. 9.1.4. Special Modifications
      2. 9.2. RESULTS
      3. 9.3. ATTEMPTS TO RECOVER
      4. 9.4. A FAVORABLE PROGNOSIS
      5. 9.5. SUMMARY OF MAJOR MISTAKES
        1. 9.5.1. External Factors
        2. 9.5.2. Internal Factors
      6. 9.6. POSTSCRIPT
        1. 9.6.1. Update 2005–2008
      7. 9.7. CONSIDER
      8. 9.8. QUESTIONS
      9. 9.9. ROLE PLAY
      10. 9.10. TEAM DEBATE EXERCISE
      11. 9.11. YOUR ASSESSMENT OF THE LATEST DEVELOPMENTS
      12. 9.12. INVITATION TO RESEARCH
    2. 10. Boeing: Miscalculations on a Worldwide Scale
      1. 10.1. BOEING
      2. 10.2. PROBLEMS WITH THE COMMERCIAL AIRCRAFT BUSINESS SEGMENT
        1. 10.2.1. Production Problems
        2. 10.2.2. Customer Relations
      3. 10.3. AIRBUS INDUSTRIES
        1. 10.3.1. Background of Airbus
        2. 10.3.2. Airbus Chairman Noel Forgeard
        3. 10.3.3. The World's Largest Plane
        4. 10.3.4. Should a Plane Like the A3XX Even Be Built?
        5. 10.3.5. Competitive Position of Airbus
      4. 10.4. WHO CAN WE BLAME FOR BOEING'S TROUBLES?
        1. 10.4.1. Was it CEO Philip Condit?
        2. 10.4.2. Were the Problems Mostly Due to Internal Factors?
        3. 10.4.3. The Role of External Factors
      5. 10.5. COMPETITION AT THE NEW MILLENNIUM
      6. 10.6. EVERYTHING CHANGED WITH 9/11
      7. 10.7. BOEING'S CONTINUING PROBLEMS
      8. 10.8. THE TIDE TURNS FOR BOEING
      9. 10.9. TOWARD THE DECADE'S END
        1. 10.9.1. Global Outsourcing
      10. 10.10. AN OBJECTIVE APPRAISAL OF BOEING'S FUTURE
      11. 10.11. CONSIDER
      12. 10.12. QUESTIONS
      13. 10.13. HANDS-ON EXERCISES
      14. 10.14. TEAM DEBATE EXERCISES
      15. 10.15. INVITATION TO RESEARCH
    3. 11. Vanguard: Success in Taking the Road Less Traveled
      1. 11.1. JOHN BOGLE AND THE CREATION OF VANGUARD
        1. 11.1.1. Bogle, The Messiah
      2. 11.2. GREAT APPEAL OF VANGUARD
        1. 11.2.1. Performance
        2. 11.2.2. Customer Service
      3. 11.3. COMPETITION
      4. 11.4. TIAA-CREF
      5. 11.5. ANALYSIS
        1. 11.5.1. Prognosis—Can Vanguard Continue as Is?
      6. 11.6. UPDATE
      7. 11.7. CONSIDER
      8. 11.8. QUESTIONS
      9. 11.9. HANDS-ON EXERCISES
      10. 11.10. TEAM DEBATE EXERCISE
      11. 11.11. INVITATION TO RESEARCH
  9. V. LEADERSHIP AND EXECUTION
    1. 12. Hewlett-Packard Under Carly Fiorina, and After Her
      1. 12.1. CARLY FIORINA
      2. 12.2. THE HEWLETT-PACKARD COMPANY (HP)
      3. 12.3. THE SITUATION WHEN CARLY FIORINA TOOK OVER
      4. 12.4. FIORINA'S ACTIONS
        1. 12.4.1. The Merger with Compaq
        2. 12.4.2. Forcing the Integration with Compaq
        3. 12.4.3. Cost Cutting Through Greater Efficiencies
        4. 12.4.4. New Products and New Business
        5. 12.4.5. The Threat of IBM
      5. 12.5. IS THE "SUCCESSFUL" MERGER A DONE DEAL?
      6. 12.6. HP'S BOARD OUSTS FIORINA
      7. 12.7. AFTER CARLY
        1. 12.7.1. Later Developments
      8. 12.8. ANALYSIS
        1. 12.8.1. Monday-Morning Quarterbacking After the Ouster
      9. 12.9. CARLY AFTER HP
      10. 12.10. CONSIDER
      11. 12.11. QUESTIONS
      12. 12.12. HANDS-ON EXERCISES
      13. 12.13. TEAM DEBATE EXERCISES
      14. 12.14. INVITATION TO RESEARCH
    2. 13. Southwest Airlines: "Try to Match Our Prices"
      1. 13.1. HERBERT D. KELLEHER
      2. 13.2. THE BEGINNINGS
      3. 13.3. GROWTH
        1. 13.3.1. Tapping California
      4. 13.4. INGREDIENTS OF SUCCESS
        1. 13.4.1. Cost Containment
        2. 13.4.2. Employee Commitment
        3. 13.4.3. Conservative Growth Efforts
      5. 13.5. GALLOPING TOWARD THE NEW MILLENNIUM
        1. 13.5.1. Geographical Expansion
      6. 13.6. UPDATE TO 2006
        1. 13.6.1. Changes on the Horizon
      7. 13.7. THE SITUATION IN 2007 AND 2008
        1. 13.7.1. A Lapse of a Once-Stellar Reputation
      8. 13.8. CONSIDER
      9. 13.9. QUESTIONS
      10. 13.10. HANDS-ON EXERCISES
      11. 13.11. TEAM DEBATE EXERCISES
      12. 13.12. YOUR ASSESSMENT OF THE LATEST DEVELOPMENTS
      13. 13.13. INVITATION TO RESEARCH
    3. 14. Herman Miller: A Role-Model in Leadership
      1. 14.1. BACKGROUND
        1. 14.1.1. Employee Relations
        2. 14.1.2. Product Development
        3. 14.1.3. Environmental Sensitivity
      2. 14.2. EMERGING SOBERING REALITIES
        1. 14.2.1. Problems in the Changing Market
      3. 14.3. ANALYSIS
      4. 14.4. UPDATE
      5. 14.5. CONSIDER
      6. 14.6. QUESTIONS
      7. 14.7. HANDS-ON EXERCISES
      8. 14.8. TEAM DEBATE EXERCISE
      9. 14.9. INVITATION TO RESEARCH
    4. 15. Boston Beer—Can I Really Compete With the Big Boys?
      1. 15.1. PROBLEMS
        1. 15.1.1. At Last, Slow Expansion
      2. 15.2. THE BREWING INDUSTRY IN THE 1990s
      3. 15.3. THE CONTINUING SAGA OF BOSTON BEER
      4. 15.4. TOWARD THE MILLENNIUM
      5. 15.5. UPDATE
      6. 15.6. ANALYSIS
        1. 15.6.1. Entrepreneurial Character
        2. 15.6.2. Controlled Growth (Aggressive Moderation)
        3. 15.6.3. Limits on Potential
      7. 15.7. CONSIDER
      8. 15.8. QUESTIONS
      9. 15.9. HANDS-ON EXERCISES
      10. 15.10. TEAM DEBATE EXERCISE
      11. 15.11. INVITATION TO RESEARCH
  10. VI. CONTROLLING
    1. 16. United Way: A Not-for-Profit Organization Also Needs Controls and Oversight
      1. 16.1. THE STATURE AND ACCOMPLISHMENTS OF THE UNITED WAY
      2. 16.2. WILLIAM ARAMONY
        1. 16.2.1. Investigative Disclosures
      3. 16.3. CONSEQUENCES
      4. 16.4. ELAINE CHAO
        1. 16.4.1. A Local United Way's Concerns
      5. 16.5. ANALYSIS
      6. 16.6. UPDATE
      7. 16.7. CONSIDER
      8. 16.8. QUESTIONS
      9. 16.9. HANDS-ON EXERCISES
      10. 16.10. TEAM DEBATE EXERCISE
      11. 16.11. INVITATION TO RESEARCH
    2. 17. Maytag: Incredibly Loose Supervision of a Foreign Subsidiary; Also, the Allure of Outsourcing
      1. 17.1. THE FIASCO
      2. 17.2. BACKGROUND ON MAYTAG
        1. 17.2.1. The Lonely Maytag Repairman
        2. 17.2.2. Acquisitions
        3. 17.2.3. Trouble
      3. 17.3. ANALYSIS
        1. 17.3.1. Flawed Acquisition Decisions
        2. 17.3.2. Who Can We Blame in the U.K. Promotional Debacle?
        3. 17.3.3. How Could the Promotion Have Avoided the Problems?
        4. 17.3.4. Final Resolution of the Promotion Mess?
      4. 17.4. LATER DEVELOPMENTS
        1. 17.4.1. Leonard Hadley
        2. 17.4.2. The Allure (and Necessity?) of Outsourcing
      5. 17.5. CONSIDER
      6. 17.6. QUESTIONS
      7. 17.7. HANDS-ON EXERCISES
      8. 17.8. TEAM DEBATE EXERCISES
      9. 17.9. INVITATION TO RESEARCH
    3. 18. MetLife: Poorly Controlled Sales Practices
      1. 18.1. RICK URSO: THE VILLAIN?
        1. 18.1.1. The Route to Stardom
        2. 18.1.2. Early Warnings
        3. 18.1.3. Allegations Intensify
      2. 18.2. METLIFE CORRECTIVE ACTIONS, FINALLY
      3. 18.3. WHERE DOES THE BLAME LIE?
        1. 18.3.1. The Case Against Metlife
      4. 18.4. AN INDUSTRY PROBLEM?
      5. 18.5. ANALYSIS
        1. 18.5.1. The Handling of the Crisis
      6. 18.6. LATER DEVELOPMENTS
      7. 18.7. CONSIDER
      8. 18.8. QUESTIONS
      9. 18.9. HANDS-ON EXERCISES
      10. 18.10. TEAM DEBATE EXERCISE
      11. 18.11. INVITATION TO RESEARCH
  11. VII. ETHICAL MISTAKES
    1. 19. DaimlerChrysler—Blatant Misrepresentation
      1. 19.1. CHRYSLER BEFORE THE MERGER
      2. 19.2. AFTER THE MERGER
        1. 19.2.1. Jurgen Schrempp
        2. 19.2.2. Schrempp Takes Action
        3. 19.2.3. Other Problems for Schrempp
      3. 19.3. PROGNOSIS
      4. 19.4. ANALYSIS
        1. 19.4.1. Daimler's Contribution to the Problem
        2. 19.4.2. Chrysler's Contribution
        3. 19.4.3. External Factors
      5. 19.5. CAN THERE REALLY BE A MERGER OF EQUALS?
      6. 19.6. UPDATE
      7. 19.7. CONSIDER
      8. 19.8. QUESTIONS
      9. 19.9. HANDS-ON EXERCISES
      10. 19.10. TEAM DEBATE EXERCISES
      11. 19.11. YOUR ASSESSMENT OF THE LATEST DEVELOPMENTS
      12. 19.12. INVITATION TO RESEARCH
    2. 20. Merck's Vioxx Catastrophe and Other Problems
      1. 20.1. CEO RAYMOND GILMARTIN WITH EDWARD SCOLNICK, AND MERCK
        1. 20.1.1. Fosamax
        2. 20.1.2. Vioxx
        3. 20.1.3. Warning Signs
      2. 20.2. THE CONTROVERSY
        1. 20.2.1. Arguments for Not Recalling Vioxx
        2. 20.2.2. Critics of Merck's Delay
        3. 20.2.3. Defenders of Merck
        4. 20.2.4. Should Pfizer's Celebrex Also Be Withdrawn?
      3. 20.3. OUTLOOK FOR MERCK
        1. 20.3.1. How Bad Will the Lawsuits Get?
      4. 20.4. WHAT IS MERCK'S BEST STRATEGY FOR THE FUTURE?
      5. 20.5. ANALYSIS
        1. 20.5.1. Did Merck Make a Monumental Mistake?
      6. 20.6. UPDATE—2007–2008
      7. 20.7. CONSIDER
      8. 20.8. QUESTIONS
      9. 20.9. HANDS-ON EXERCISES
      10. 20.10. TEAM DEBATE EXERCISES
      11. 20.11. INVITATION TO RESEARCH
    3. 21. Ford Explorers with Firestone Tires: Ill-Handling a Killer Scenario
      1. 21.1. A HORROR SCENARIO
      2. 21.2. ANATOMY OF THE PROBLEM
        1. 21.2.1. The Ford/Firestone Relationship
        2. 21.2.2. The Relationship Worsens
        3. 21.2.3. The Last Days
        4. 21.2.4. Advantage to Competitors
      3. 21.3. WHERE LIES THE BLAME?
        1. 21.3.1. Ford
        2. 21.3.2. Bridgestone/Firestone
        3. 21.3.3. Government
        4. 21.3.4. The Driver
      4. 21.4. CONSEQUENCES
        1. 21.4.1. Options Firestone Faced
      5. 21.5. POSTMORTEM
      6. 21.6. LATER DEVELOPMENTS
      7. 21.7. CONSIDER
      8. 21.8. QUESTIONS
      9. 21.9. HANDS-ON EXERCISES
      10. 21.10. TEAM DEBATE EXERCISES
      11. 21.11. INVITATION TO RESEARCH