CHAPTER 2:Business Ethics and Social Responsibility CHAPTER 4:Competing inWorld

John Smith

6 years ago

CHAPTER
2:Business Ethics and Social
Responsibility
CHAPTER
4:Competing inWorld Markets
CHAPTER
6: Starting Your Own Business: The
Entrepreneurship Alternative
CHAPTER
12: Product and Distribution StrategiesChapter Video
CasesCHAPTER
2:Business Ethics and Social
ResponsibilityVideo Case: J Timberland Walks the Walk Video Running
Time: 13:36Organization
Discussed: TimberlandConcepts
Spotlighted in Video:
Business
ethics
Social
responsibility
Ethical
standards.
Branding
Quality
Competition
Customer
satisfaction
Collaboration
Innovation
You know people who talk the talk of
volunteerism and service. But do they walk the walk as well? Timberland is an
extraordinary example of an entire company based on walking the walk of social
responsibility? in its own boots. The Stratham, New Hampshire-based company has
been making high-quality, durable work boots for decades under the name of
Timberland, and prior to that under the name of the Abington Shoe Co., which
Timberland’s founder Nathan Swartz purchased in the 1950s. The firm is probably
best known for its waterproof leather boots, but it has added new lines of
footwear that include casual fashion shoes, boat shoes, and hiking boots, as
well as clothing and outerwear. While continuing to build its reputation as a
brand that stands for durability, ruggedness, and the American outdoors,
Timberland has been constructing a reputation for integrity and commitment to
the community as well. Ken Freitas, Timberland’s vice
president of social enterprise, loves to talk about the ways that his company
has been able to build social responsibility right into its brand. “Doing
good and doing well are not separate things,” he says. ”We’re a business?
part of our profits get put back into the enterprise and community.”Timberland
implements this commitment through a series of programs in which its employees
? including top managers? and corporate dollars participate. Through its Path
of Service Program, employees receive up to 40 hours of paid time per year to
participate in community service projects at local schools, day-care centers,
the Society for the Prevention of Cruelty to Animals (SPCA), food banks, and
the like. They might clean up a nearby beach or help build a park. Years ago,
Timberland established its Service Sabbatical Program, in which three- to six-month
sabbaticals are awarded to as many as four employees who wish to use their
professional skills in assisting local nonprofit organizations full-time. Then
there’s the Global Serv-A-Palooza, the annual worldwide, companywide
celebration during which 2,000 employees, vendors, and community partners
participate in a day of service. Timberland’s organized approach to
community service began in 1989 following a phone call from a new volunteer
program called City Year, which was based in Boston. As part of City Year,
graduating high school students from diverse backgrounds would take a year off
before starting work or college to participate in community service. Because
many of the volunteer jobs involved outdoor work, City Year asked Timberland to
donate 5O pairs of its work boots to the cause. Timberland agreed, and the next
year City Year requested 70 pairs. A relationship was born during which both
City Year and Timberland have grown nationwide. To date, Timberland has
invested more than $10 million in the program and now outfits every City Year
volunteer in boots, pants, shirts, jackets, and rain gear. “Yes,
Timberland is helping to build City Year,” notes Ken Freitas. “But
City Year is helping to build Timberland.” How does Timberland measure the success
of its community service programs? “One of the key challenges in a social
responsibility program is measurement,” admits Freitas. “How do you
know if it is successful?” One way Timberland has been able to keep track
of this is through joint marketing efforts with City Year. When a retailer in
Philadelphia asked Timberland to make red boots to satisfy its younger
customers (instead of the traditional tan work boots), Timberland balked at
first. But then managers realized that red was the official color of City Year,
and red boots might become the signature footwear of City Year volunteers. So
Timberland made the boots and supplied them to the Philadelphia retailer as
well as City Year participants, and all three organizations experienced growth
in the Philadelphia area. This type of growth is reflected in Timberland’s
revenues, which currently reach more than $1 billion each year. But Freitas
cautions against overdoing measurement. “What brings people to a brand
isn’t necessarily measurable,” he explains. So Timberland adopts a
“management and magic” philosophy that incorporates tangible results
while leaving room for the unexpected or unexplainable. At Timberland, social responsibility
starts at the top. “Our company has a strong set of values that form the
resolve for all that we do in the community? humanity, humility, integrity, and
excellence,” writes Jeff Swartz, president and CEO. “We strive to
lead as responsible corporate citizens and to invest our resources, skills,
ingenuity, and dedication to create positive change.” If you happen to
attend a Timberland national sales meeting, you’d better leave your golf clubs
and swimsuit at home and wear your work boots instead. You might spend the day
building a playground. Chapter 2 Video Case
Questions for Critical Thinking 1. In what ways does Timberland fulfill
its responsibilities to consumers, employees, investors, and society as a
whole? 2. In addition to a climate of social
responsibility, do you think Timberland is likely to foster a climate of
ethical awareness throughout its organization? Explain your answer. 3. In what ways does Timberland’s Path
of Service Program help develop the quality of its workforce? 4. Think of a small or large company in
your hometown or in the town where you go to school. In what ways does the
company serve its community? If it does not, describe ways in which it could.Experiential
ExerciseOur approach to building and
sustaining strong communities includes three primary strategies: civic
engagement, environmental stewardship and global human rights.What is Timberland
doing in each of these areas? Go to Timberlands website.timberland.com/corp/index.jsp?page=csroverview”>http://www.timberland.com/corp/index.jsp?page=csroverviewWhat
is Timberland doing about climate change? How does the company approach
resource consumption? How is Timberlandimproving the quality of life for approximately 175,000 workers
in 290+ factories in 35 countries? What more could Timberland do to be socially
responsible?

CHAPTER
4:Competing inWorld MarketsVideo Case: ESPN Broadcasts Sports
around the World Video Running
Time: 14:33 Organization
Discussed: ESPNConcepts
Spotlighted in Video:
Branding
Global
Expansion
Target
Marketing
Advertising
Quality
PartnershipsVideo Case
SynopsisBlll Rasmussen made a big mistake in
1979. He had decided to launch a Connecticut-based cable TV station to
broadcast local sports. So he and his partners leased a building and bought
some satellite time. After they signed the agreement, they discovered that
their satellite coverage was national, not local? and the idea for a regional cable sports station began to grow. New England, they thought, would be the perfect sports
market for the new Entertainment and Sports Programming Network. Later, when business
really got rolling, Rasmussen and his partners shortened the name to ESPN?and it stuck. ESPN long ago leaped its New England
borders into national coverage and ultimately extended its reach to covering
sports and broadcasting them globally, although the company’s headquarters
remained in Bristol, Connecticut, where the original building was
leased and where they still operate today. Headquarters now includes several
buildings, 28 satellite dishes, and 3,200 employees. ESPN operates 6 networks
in the U.S.
and 25 international networks, reaching between 150 and 155 million households
globally. The company also produces ESPN Radio, ESPN Wireless, several Web
sites including ESPN.com and ESPNSoccernet.com, magazines, and books, and it is
exploring emerging technologies like video on demand and interactive TV.
Spanish-speaking viewers can watch ESPN Deportes 24 hours a day. ESPN fans can
eat at the ESPN Zone restaurant and buy merchandise at TeamStore@ESPN. Collectively,
the ESPN media outlets offer coverage of local sporting events as well as major
tournaments like the PGA Championship and the British Open for golf and the America’s Cup
sailing races?
not to mention games of the NFL, NHL,
MLB, WNBA, and various college sports. In addition to the game coverage, it
offers sports news and analysis; information on scores, statistics, standings,
and schedules; and just about any other sports-related content the enthusiast
could want. Reaching out for the global market was
something that ESPN founders did “on gut feeling,” says Willy
Burkhardt, managing director of ESPN International. Because cable television
was still new when ESPN was born, not much data existed on who was watching
what around the world. But ESPNs executives had the idea that sports, like
music and major news stories, had universal appeal. So they decided to try
broadcasting American sports events in South America.
Today, South and Central America? particularly Argentina, Brazil, and Mexico?represent 40 percent of ESPN’ s total business. And although
the firm continues to broadcast American sports overseas, it now places much
greater emphasis on local and regional programming based on the tastes and
preferences of the host cultures. For example, says Burkhardt, in India
“cricket is a total culture.” While few Americans are familiar with
the sport, millions of Indians are glued to the TV for cricket matches. In Argentina,
rugby and polo occupy prime-time coverage. Major markets such as Argentina and India command their own ESPN
offices and on-air announcing teams. In addition to South America and Asia,
ESPN has a presence in Europe, Canada,
Australia, and New Zealand?and even a station in Antarctica.
ESPN has used a variety of methods to
enter international markets. In Europe, ESPN has
had a longstanding partnership with EuroSport, which means that, although many
European consumers watch sports on cable television, they are not necessarily
aware of the ESPN name. However, recently ESPN did launch ESPN Classic Sport, a
network dedicated to the greatest moments of European sporting history. ESPN
operates in Canada
through partnerships, as well. These arrangements are partly due to varying
regulations in different countries and regions. But in Asia, ESPN has a large
operation of its own, broadcasting to about 25 countries on the continent,
including India,
which is one of the firm’s most important markets. ESPN continues to grow in international
markets because its managers believe they can bring “a new century of
sport” to viewers around the world. “You learn by doing,” says
Burkhardt. ESPN wants viewers worldwide to watch what it is doing. Questions for Critical Thinking 1. Describe three barriers to ESPN as
it expands in the global marketplace. 2. How might NAFTA and the European
Union affect ESPN in those areas? 3. Describe the levels of involvement
ESPN uses in its different international markets.4. Does ESPN adopt a global business
strategy or a multidomestic business strategy? Explain your answer. Experiential
ExerciseESPN International Mobile distributes
content via WAP, SMS, video, data applications, games, wallpapers and ringtones
with product distributed around the globe in eight languages, on over 35
carriers to more than 1000 handsets. Included
is video distribution of major American sports in Europe, Canada, the Middle East, Southeast Asia, Latin
America and Australia,
as well as the best from our Latin American regional networks in Spanish on
ESPN Movil. Our X Games Mobile service
includes video-with more than 100 X Games clips of medal runs, interviews and
more.How
does ESPN International Mobil help ESPN develop its brand name?.espn.com/”>http://international.espn.com/

CHAPTER
6: Starting Your Own Business: The
Entrepreneurship AlternativeVideo Case: The Geek Squad to the Rescue! Video Running
Time: 13:17Organization
Discussed: The Geek SquadConcepts
Spotlighted in Video:
Innovation
Entrepreneurship
Creativity
Service
Marketing
Quality
Teamwork
Vision
Training
Pricing
Customer
Satisfaction
Video Case
SynopsisWho would have predicted that one day
being a geek would be considered cool, much less heroic? Of course, heroic
geekdom does have a few icons? Clark Kent, for one. But most people
conjure up images of the Man of Steel ? not the mild-mannered reporter? when they think about Clark Kent’s fantastic deeds as Superman.
Entrepreneur Robert Stephens doesn’t
mind this perception. He also doesn’t mind being called a geek, although he
readily admits that he strives harder to emulate his own hero, James Bond, than
he does Bill Gates, who transformed the world of computers with his company,
Microsoft. But since Stephens does own a computer company? of sorts? he admits
to his admiration to the geekish Gates as “having made everything easier
for us.” Stephens is the epitome of an
entrepreneur? so much so that associates joke that their dictionary definition
of entrepreneur would read: Robert
Stephens. A decade ago, he recognized an opportunity ? a gap in the technical
service provided by computer companies for individuals and small businesses? and
made a business out of filling it. “No one wanted to make house calls [to
repair people’s computers],” he recalls. But Stephens was willing to be on
call 24/7 to drive to the homes or offices of people who ran small businesses,
to diagnose any problems with their computers, fix the problem on the spot, and
even upgrade their computers on request. It was a simple business idea,
designed to take advantage of an opportunity. Stephens also had the vision to
realize that the Internet, even though at the time in its infancy in commercial
applications, would have a huge impact on the way companies conducted their
business by allowing people to work from home. And computers had begun popping
up in homes for personal use and entertainment. So Stephens quit his computer
programming job at the University
of Minnesota and launched
his computer-repair business with an initial investment of $200. Stephens didn’t have much money. He
also didn’t have any employees. But he was blessed with liberal amounts of
creativity, intelligence, humor, and energy. He thought hard about what to call
his company, wanting the name to make a lasting impression on potential customers.
Finally, he came up with The Geek Squad because he wanted to imply that he had
a whole army of employees who could solve any computer-based trouble at a
moment’s notice. The name is very important because it’s what people think,
say, and remember, Stephens explains. When his customer base began to grow
beyond his own service capabilities, he added his first employee, and then a
few more. To support his company image, he designed badges identifying each
employee as a member of The Geek Squad intelligence network. He also designed
uniforms for each serviceperson and provided a company car: a specially painted
Volkswagen Beetle Geekmobile. Customers loved it? and so did The Geek Squad
members. For the most part, The Geek Squad
serves customers operating home-based and other small businesses ? ordinary
people, such as lawyers who need fast repairs to their office computers. But
sometimes glamour comes calling in the form of customers like U2 and the
Rolling Stones. A few years ago, Geek Squad headquarters received an emergency
call from U2’s sound crew, who had encountered a host of computer problems in
setting up the sound system for an Anaheim
concert. They did such a bang-up job that the band called them in again during
an appearance in Minneapolis.
Why did Stephens choose the
entrepreneurial route for his career path? I didn’t want a boring job. I
wanted to work for an international spy organization, and this is the closest I
can get. He identified an important trend in the marketplace and built a
business around it. His business model is based on his philosophy that he’d rather
be great at one thing than be mediocre at 15 things. The Geek Squad has
progressed from a sole proprietorship begun in Minneapolis
to a corporation with sizable offices in Chicago,
Los Angeles, and San
Francisco, as well as the Twin Cities.
His intelligence network of service reps now numbers more than 50, and annual
revenues have grown to several million dollars. His employees have job titles
like Dr. No (the company’s finance director) and Counter Intelligence
(inside service representatives). He loves every minute of being a professional
geek, even if he never did get his shot at being an international spy. Questions for Critical Thinking 1. Stephens identified two important
trends in the environment ? the need for
on-site computer service and the growth of the Internet? that helped him
predict his business would be a success. Identify at least one other factor in
the environment that could be considered positive for The Geek Squad. 2. In what ways has Stephens and other
entrepreneurs like him influenced the economy? 3. Describe some of the personal
characteristics that probably contribute to Stephens’s success. 4. Why was The Geek Squad a good
business idea? Experiential
ExerciseHow
had The Geek Squad expanded since it began in 1994? What is the extent of its
services? Go to .geeksquad.com/about/default.aspx”>http://www.geeksquad.com/about/default.aspxand find out. Then suggest plans for the future for this company.
How could The Geek Squad expand in the future?
Report your findings to the class.
CHAPTER
12: Product and Distribution StrategiesVideo Case: Monopoly: America’s Love of
Rags-to-Riches Game Is Timeless Video Running Time: 7:48Organization
Discussed: MonopolyConcepts
Spotlighted in Video:
Production
Distribution
channels
Distribution
strategies
Product line
and product mix
Product life
cycle
Brand name
Brand
association
Brand equity
Video Case
SynopsisMaybe you’ve never been to Atlantic City, but if
you’ve played Monopoly, the names Park
Place, Boardwalk, and Atlantic Avenue are as familiar to you as
the streets around your own hometown. Monopoly,
invented in 1934 by entrepreneur Charles B. Darrow, is based on real streets in
Atlantic City.
When Darrow first showed his game to executives at Parker Brothers, they
weren’t interested. But the gamemaker’s disinterest failed to discourage him.
Darrow and a printer friend made 5,000 sets anyway and convinced a department
store in Philadelphia
to carry them. When all 5,000 quickly sold out, Darrow went back to Parker
Brothers, who soon changed their minds after learning of the consumer response
to the unknown? and untested? new game. Their decision to add it to their
product line was perhaps the most important move in Parker Brothers’ history.
Within 12 months following its launch, Monopoly had become the best-selling
game in the U.S.
By 2005, Parker Brothers, now a division of Hasbro Inc., had sold more than 200
million sets of Monopoly worldwide. But the huge popularity of Monopoly
poses a problem for its manufacturer: the game lasts, and repeat sales are
difficult to secure. Once a family or an individual consumer buys a Monopoly
set, there’s no need to buy another. And if the idea of commerce? or rampant
greed ? doesn’t appeal to someone, he or she is likely to pass on the game.
Until recently, young children were left out of the game unless they had
guidance from parents or older brothers and sisters, simply because the rules,
concepts, and numbers were too complicated for them to follow. So Monopoly
marketers began to evaluate ways to extend the product line. They examined new
age groups, new socioeconomic groups likely to have market potential, and
different interest groups and considered commemorative editions to mark or
celebrate certain events in history. They also researched new platforms using
interactive technology. Line extensions are all additives to
Monopoly No.9 [the official name of the original game], explains Holly Riehl,
director of marketing for Monopoly. The original game captures a universal
truth that we all aspire to wealth, according to Riehl. In fact, Monopoly is
such a universal game that, as Riehl says, it has been adapted so thoroughly
by every country that every country thinks it’s their own, These ideas have
combined to set the stage for a burst of new Monopoly editions targeted to
different consumers. Several years ago, Hasbro introduced a
premium-priced Deluxe Monopoly with eye-catching new features for the collector?
special tokens, title and deed carousels (making it easier to see and organize them
during the game), and wooden houses and hotels. At around the same time, the
company brought out Monopoly Junior for younger players. Based on an amusement
park theme, in which game participants buy and sell amusement park rides and
attractions, Monopoly Junior has attracted a younger generation of players ages
5 to 8. There’s also the Dig’n Dinos edition for even younger children, and a
Disney edition for players ages 8 to adult. Also in the product line are
Monopoly 60th Anniversary and Monopoly Millennium, both developed to mark those
anniversaries ? and sold at a higher
price of $39.95. If you are feeling particularly patriotic, pick up the America
edition; if you speak Spanish, you can purchase the Spanish edition. And if you
are a Star Wars or Pokemon fan, fear not ? a Monopoly edition has been created
for you, too. Hasbro has also ventured into the
interactive realm with a new subsidiary, Hasbro Interactive. The division sold
1 million copies of the first Monopoly CD-ROM, which became the fifth best-selling
PC game of all time. On the computer, Boardwalk and Park Place came to life, says Holly
Riehl. Four years after the first release, an updated version hit the market,
in which players could customize the 3-D board properties with their own street
names and landmarks. Then came Monopoly PlayStation, Monopoly Hand-held, and
Monopoly Nintendo, along with an e-mail version of the game. Hasbro isn’t trying to flood the market
with Monopoly games, although certainly its marketers would like to see at
least one edition in every household. But to reach as many consumers as
possible, marketers conduct extensive product planning to make sure that each
new version makes sense,” as Riehl puts it. “For instance, Monopoly
Star Wars and Pokemon were a good fit, she says. The company tries to balance
the basic concepts of the original Monopoly game with every one of its
extensions, including such additions as a new token to the game. Several years
ago, Hasbro conducted a search for a new Monopoly playing token, finally
narrowing it down to three candidates: a biplane, a piggybank, and a sack of
money. Then consumers were invited to vote for their favorite among the three.
Over 2 million consumers cast their vote for the sack of money, which is now
part of the game. Riehl reports that Hasbro is planning
even more extensions to attract new and loyal customers to the Monopoly
experience. Monopoly slot machines are already very popular in Las Vegas, and game
fanciers can watch for a Monopoly cafe as well as Monopoly books and other
media. In short, Hasbro hopes Monopoly will eventually have a monopoly (of
sorts) on all kinds of entertainment. Questions for Critical Thinking 1. How would you classify Monopoly as a
consumer product? Why? 2. At what stage would you place
Monopoly in the product life cycle? How does this relate to Hasbro’s decision
to extend the product line? 3. Monopoly marketing director Holly
Riehl says that the idea for each new Monopoly edition goes through extensive
planning before it is manufactured and brought to market. Even so, do you think
that Hasbro is taking on more risk by introducing so many different types of
Monopoly to the marketplace? Why or why not? 4. Visit the Monopoly Web site at
http://www.monopoly .com or open up your own Monopoly game. Identify as many
elements of the product image as you can. Do you think that Monopoly is a
strong brand? Why or why not?Experiential
ExerciseYou
have been hired as a consultant for Monopoly to innovate and develop new
products and services. Monopoly already has tournaments in many countries, slot
machine games, anniversary editions, deluxe editions, and wallpaper. Go to.monopoly.com/”>http://www.monopoly.com, click on browse
all games and study the current offerings. Then develop a new product or
service and a distribution strategy for Monopoly.
CHAPTER
2:Business Ethics and Social
ResponsibilityCHAPTER
4:Competing inWorld MarketsCHAPTER
6: Starting Your Own Business: The
Entrepreneurship AlternativeCHAPTER
12: Product and Distribution StrategiesCHAPTER
2:Business Ethics and Social
ResponsibilityVideo Case: J Timberland Walks the Walk Video Running
Time: 13:36Organization
Discussed: TimberlandConcepts
Spotlighted in Video:You know people who talk the talk of
volunteerism and service. But do they walk the walk as well? Timberland is an
extraordinary example of an entire company based on walking the walk of social
responsibility? in its own boots. The Stratham, New Hampshire-based company has
been making high-quality, durable work boots for decades under the name of
Timberland, and prior to that under the name of the Abington Shoe Co., which
Timberland’s founder Nathan Swartz purchased in the 1950s. The firm is probably
best known for its waterproof leather boots, but it has added new lines of
footwear that include casual fashion shoes, boat shoes, and hiking boots, as
well as clothing and outerwear. While continuing to build its reputation as a
brand that stands for durability, ruggedness, and the American outdoors,
Timberland has been constructing a reputation for integrity and commitment to
the community as well. Ken Freitas, Timberland’s vice
president of social enterprise, loves to talk about the ways that his company
has been able to build social responsibility right into its brand. “Doing
good and doing well are not separate things,” he says. ”We’re a business?
part of our profits get put back into the enterprise and community.”Timberland
implements this commitment through a series of programs in which its employees
? including top managers? and corporate dollars participate. Through its Path
of Service Program, employees receive up to 40 hours of paid time per year to
participate in community service projects at local schools, day-care centers,
the Society for the Prevention of Cruelty to Animals (SPCA), food banks, and
the like. They might clean up a nearby beach or help build a park. Years ago,
Timberland established its Service Sabbatical Program, in which three- to six-month
sabbaticals are awarded to as many as four employees who wish to use their
professional skills in assisting local nonprofit organizations full-time. Then
there’s the Global Serv-A-Palooza, the annual worldwide, companywide
celebration during which 2,000 employees, vendors, and community partners
participate in a day of service. Timberland’s organized approach to
community service began in 1989 following a phone call from a new volunteer
program called City Year, which was based in Boston. As part of City Year,
graduating high school students from diverse backgrounds would take a year off
before starting work or college to participate in community service. Because
many of the volunteer jobs involved outdoor work, City Year asked Timberland to
donate 5O pairs of its work boots to the cause. Timberland agreed, and the next
year City Year requested 70 pairs. A relationship was born during which both
City Year and Timberland have grown nationwide. To date, Timberland has
invested more than $10 million in the program and now outfits every City Year
volunteer in boots, pants, shirts, jackets, and rain gear. “Yes,
Timberland is helping to build City Year,” notes Ken Freitas. “But
City Year is helping to build Timberland.” How does Timberland measure the success
of its community service programs? “One of the key challenges in a social
responsibility program is measurement,” admits Freitas. “How do you
know if it is successful?” One way Timberland has been able to keep track
of this is through joint marketing efforts with City Year. When a retailer in
Philadelphia asked Timberland to make red boots to satisfy its younger
customers (instead of the traditional tan work boots), Timberland balked at
first. But then managers realized that red was the official color of City Year,
and red boots might become the signature footwear of City Year volunteers. So
Timberland made the boots and supplied them to the Philadelphia retailer as
well as City Year participants, and all three organizations experienced growth
in the Philadelphia area. This type of growth is reflected in Timberland’s
revenues, which currently reach more than $1 billion each year. But Freitas
cautions against overdoing measurement. “What brings people to a brand
isn’t necessarily measurable,” he explains. So Timberland adopts a
“management and magic” philosophy that incorporates tangible results
while leaving room for the unexpected or unexplainable. At Timberland, social responsibility
starts at the top. “Our company has a strong set of values that form the
resolve for all that we do in the community? humanity, humility, integrity, and
excellence,” writes Jeff Swartz, president and CEO. “We strive to
lead as responsible corporate citizens and to invest our resources, skills,
ingenuity, and dedication to create positive change.” If you happen to
attend a Timberland national sales meeting, you’d better leave your golf clubs
and swimsuit at home and wear your work boots instead. You might spend the day
building a playground. Chapter 2 Video Case
Questions for Critical Thinking 1. In what ways does Timberland fulfill
its responsibilities to consumers, employees, investors, and society as a
whole? 2. In addition to a climate of social
responsibility, do you think Timberland is likely to foster a climate of
ethical awareness throughout its organization? Explain your answer. 3. In what ways does Timberland’s Path
of Service Program help develop the quality of its workforce? 4. Think of a small or large company in
your hometown or in the town where you go to school. In what ways does the
company serve its community? If it does not, describe ways in which it could.Experiential
ExerciseOur approach to building and
sustaining strong communities includes three primary strategies: civic
engagement, environmental stewardship and global human rights.What is Timberland
doing in each of these areas? Go to Timberlands website.timberland.com/corp/index.jsp?page=csroverview”>http://www.timberland.com/corp/index.jsp?page=csroverviewWhat
is Timberland doing about climate change? How does the company approach
resource consumption? How is Timberlandimproving the quality of life for approximately 175,000 workers
in 290+ factories in 35 countries? What more could Timberland do to be socially
responsible?

CHAPTER
6: Starting Your Own Business: The
Entrepreneurship AlternativeVideo Case: The Geek Squad to the Rescue! Video Running
Time: 13:17Organization
Discussed: The Geek SquadConcepts
Spotlighted in Video:Video Case
SynopsisWho would have predicted that one day
being a geek would be considered cool, much less heroic? Of course, heroic
geekdom does have a few icons? Clark Kent, for one. But most people
conjure up images of the Man of Steel ? not the mild-mannered reporter? when they think about Clark Kent’s fantastic deeds as Superman.
Entrepreneur Robert Stephens doesn’t
mind this perception. He also doesn’t mind being called a geek, although he
readily admits that he strives harder to emulate his own hero, James Bond, than
he does Bill Gates, who transformed the world of computers with his company,
Microsoft. But since Stephens does own a computer company? of sorts? he admits
to his admiration to the geekish Gates as “having made everything easier
for us.” Stephens is the epitome of an
entrepreneur? so much so that associates joke that their dictionary definition
of entrepreneur would read: Robert
Stephens. A decade ago, he recognized an opportunity ? a gap in the technical
service provided by computer companies for individuals and small businesses? and
made a business out of filling it. “No one wanted to make house calls [to
repair people’s computers],” he recalls. But Stephens was willing to be on
call 24/7 to drive to the homes or offices of people who ran small businesses,
to diagnose any problems with their computers, fix the problem on the spot, and
even upgrade their computers on request. It was a simple business idea,
designed to take advantage of an opportunity. Stephens also had the vision to
realize that the Internet, even though at the time in its infancy in commercial
applications, would have a huge impact on the way companies conducted their
business by allowing people to work from home. And computers had begun popping
up in homes for personal use and entertainment. So Stephens quit his computer
programming job at the University
of Minnesota and launched
his computer-repair business with an initial investment of $200. Stephens didn’t have much money. He
also didn’t have any employees. But he was blessed with liberal amounts of
creativity, intelligence, humor, and energy. He thought hard about what to call
his company, wanting the name to make a lasting impression on potential customers.
Finally, he came up with The Geek Squad because he wanted to imply that he had
a whole army of employees who could solve any computer-based trouble at a
moment’s notice. The name is very important because it’s what people think,
say, and remember, Stephens explains. When his customer base began to grow
beyond his own service capabilities, he added his first employee, and then a
few more. To support his company image, he designed badges identifying each
employee as a member of The Geek Squad intelligence network. He also designed
uniforms for each serviceperson and provided a company car: a specially painted
Volkswagen Beetle Geekmobile. Customers loved it? and so did The Geek Squad
members. For the most part, The Geek Squad
serves customers operating home-based and other small businesses ? ordinary
people, such as lawyers who need fast repairs to their office computers. But
sometimes glamour comes calling in the form of customers like U2 and the
Rolling Stones. A few years ago, Geek Squad headquarters received an emergency
call from U2’s sound crew, who had encountered a host of computer problems in
setting up the sound system for an Anaheim
concert. They did such a bang-up job that the band called them in again during
an appearance in Minneapolis.
Why did Stephens choose the
entrepreneurial route for his career path? I didn’t want a boring job. I
wanted to work for an international spy organization, and this is the closest I
can get. He identified an important trend in the marketplace and built a
business around it. His business model is based on his philosophy that he’d rather
be great at one thing than be mediocre at 15 things. The Geek Squad has
progressed from a sole proprietorship begun in Minneapolis
to a corporation with sizable offices in Chicago,
Los Angeles, and San
Francisco, as well as the Twin Cities.
His intelligence network of service reps now numbers more than 50, and annual
revenues have grown to several million dollars. His employees have job titles
like Dr. No (the company’s finance director) and Counter Intelligence
(inside service representatives). He loves every minute of being a professional
geek, even if he never did get his shot at being an international spy. Questions for Critical Thinking 1. Stephens identified two important
trends in the environment ? the need for
on-site computer service and the growth of the Internet? that helped him
predict his business would be a success. Identify at least one other factor in
the environment that could be considered positive for The Geek Squad. 2. In what ways has Stephens and other
entrepreneurs like him influenced the economy? 3. Describe some of the personal
characteristics that probably contribute to Stephens’s success. 4. Why was The Geek Squad a good
business idea? Experiential
ExerciseHow
had The Geek Squad expanded since it began in 1994? What is the extent of its
services? Go to .geeksquad.com/about/default.aspx”>http://www.geeksquad.com/about/default.aspxand find out. Then suggest plans for the future for this company.
How could The Geek Squad expand in the future?
Report your findings to the class.
CHAPTER
12: Product and Distribution StrategiesVideo Case: Monopoly: America’s Love of
Rags-to-Riches Game Is Timeless Video Running Time: 7:48Organization
Discussed: MonopolyConcepts
Spotlighted in Video:Video Case
SynopsisMaybe you’ve never been to Atlantic City, but if
you’ve played Monopoly, the names Park
Place, Boardwalk, and Atlantic Avenue are as familiar to you as
the streets around your own hometown. Monopoly,
invented in 1934 by entrepreneur Charles B. Darrow, is based on real streets in
Atlantic City.
When Darrow first showed his game to executives at Parker Brothers, they
weren’t interested. But the gamemaker’s disinterest failed to discourage him.
Darrow and a printer friend made 5,000 sets anyway and convinced a department
store in Philadelphia
to carry them. When all 5,000 quickly sold out, Darrow went back to Parker
Brothers, who soon changed their minds after learning of the consumer response
to the unknown? and untested? new game. Their decision to add it to their
product line was perhaps the most important move in Parker Brothers’ history.
Within 12 months following its launch, Monopoly had become the best-selling
game in the U.S.
By 2005, Parker Brothers, now a division of Hasbro Inc., had sold more than 200
million sets of Monopoly worldwide. But the huge popularity of Monopoly
poses a problem for its manufacturer: the game lasts, and repeat sales are
difficult to secure. Once a family or an individual consumer buys a Monopoly
set, there’s no need to buy another. And if the idea of commerce? or rampant
greed ? doesn’t appeal to someone, he or she is likely to pass on the game.
Until recently, young children were left out of the game unless they had
guidance from parents or older brothers and sisters, simply because the rules,
concepts, and numbers were too complicated for them to follow. So Monopoly
marketers began to evaluate ways to extend the product line. They examined new
age groups, new socioeconomic groups likely to have market potential, and
different interest groups and considered commemorative editions to mark or
celebrate certain events in history. They also researched new platforms using
interactive technology. Line extensions are all additives to
Monopoly No.9 [the official name of the original game], explains Holly Riehl,
director of marketing for Monopoly. The original game captures a universal
truth that we all aspire to wealth, according to Riehl. In fact, Monopoly is
such a universal game that, as Riehl says, it has been adapted so thoroughly
by every country that every country thinks it’s their own, These ideas have
combined to set the stage for a burst of new Monopoly editions targeted to
different consumers. Several years ago, Hasbro introduced a
premium-priced Deluxe Monopoly with eye-catching new features for the collector?
special tokens, title and deed carousels (making it easier to see and organize them
during the game), and wooden houses and hotels. At around the same time, the
company brought out Monopoly Junior for younger players. Based on an amusement
park theme, in which game participants buy and sell amusement park rides and
attractions, Monopoly Junior has attracted a younger generation of players ages
5 to 8. There’s also the Dig’n Dinos edition for even younger children, and a
Disney edition for players ages 8 to adult. Also in the product line are
Monopoly 60th Anniversary and Monopoly Millennium, both developed to mark those
anniversaries ? and sold at a higher
price of $39.95. If you are feeling particularly patriotic, pick up the America
edition; if you speak Spanish, you can purchase the Spanish edition. And if you
are a Star Wars or Pokemon fan, fear not ? a Monopoly edition has been created
for you, too. Hasbro has also ventured into the
interactive realm with a new subsidiary, Hasbro Interactive. The division sold
1 million copies of the first Monopoly CD-ROM, which became the fifth best-selling
PC game of all time. On the computer, Boardwalk and Park Place came to life, says Holly
Riehl. Four years after the first release, an updated version hit the market,
in which players could customize the 3-D board properties with their own street
names and landmarks. Then came Monopoly PlayStation, Monopoly Hand-held, and
Monopoly Nintendo, along with an e-mail version of the game. Hasbro isn’t trying to flood the market
with Monopoly games, although certainly its marketers would like to see at
least one edition in every household. But to reach as many consumers as
possible, marketers conduct extensive product planning to make sure that each
new version makes sense,” as Riehl puts it. “For instance, Monopoly
Star Wars and Pokemon were a good fit, she says. The company tries to balance
the basic concepts of the original Monopoly game with every one of its
extensions, including such additions as a new token to the game. Several years
ago, Hasbro conducted a search for a new Monopoly playing token, finally
narrowing it down to three candidates: a biplane, a piggybank, and a sack of
money. Then consumers were invited to vote for their favorite among the three.
Over 2 million consumers cast their vote for the sack of money, which is now
part of the game. Riehl reports that Hasbro is planning
even more extensions to attract new and loyal customers to the Monopoly
experience. Monopoly slot machines are already very popular in Las Vegas, and game
fanciers can watch for a Monopoly cafe as well as Monopoly books and other
media. In short, Hasbro hopes Monopoly will eventually have a monopoly (of
sorts) on all kinds of entertainment. Questions for Critical Thinking 1. How would you classify Monopoly as a
consumer product? Why? 2. At what stage would you place
Monopoly in the product life cycle? How does this relate to Hasbro’s decision
to extend the product line? 3. Monopoly marketing director Holly
Riehl says that the idea for each new Monopoly edition goes through extensive
planning before it is manufactured and brought to market. Even so, do you think
that Hasbro is taking on more risk by introducing so many different types of
Monopoly to the marketplace? Why or why not? 4. Visit the Monopoly Web site at
http://www.monopoly .com or open up your own Monopoly game. Identify as many
elements of the product image as you can. Do you think that Monopoly is a
strong brand? Why or why not?Experiential
ExerciseYou
have been hired as a consultant for Monopoly to innovate and develop new
products and services. Monopoly already has tournaments in many countries, slot
machine games, anniversary editions, deluxe editions, and wallpaper. Go to.monopoly.com/”>http://www.monopoly.com, click on browse
all games and study the current offerings. Then develop a new product or
service and a distribution strategy for Monopoly.