MGT 15 E CASE STUDIES WITH SOLUTIONS BY ABDULLAH RAJA
CHAP1
CASE STUDY1
For most people, artificial intelligence brings to mind replacing jobs with robots. However, 1,500
companies studied by the management consulting firm Accenture found that the largest performance
gains were when humans and machines worked together .What does humans and machines working
together look like? At clothing retailer H&M, human buyers and planners use artificial intelligence (AI) to
guide their work. They rely on data to figure out what styles will be purchased, by which types of
customers, and what their customers might need in future seasons. Buyers and planners then build on
that data to make final decisions .A similar process is used by Nathan Cates, a buyer at Bombfell , an
online styling service for men that sends customers boxes of clothing that they can keep or return.
Before buying an item, Cates insists on touching the fabric and testing it for features such as fabric
sheerness and fit.34 But, in contrast to H&M, these tasks are not currently accomplished well by
machines .If you call your pharmacy to refill a prescription and don’t talk to a human, pharmacy
employees are freed up to spend their time on customer questions that are more complex. Some
companies, like the Swedish bank SEB, use AI to monitor customer calls handled by humans to see how
similar problems might be resolved or even prevented in the future. It’s also possible to see humans and
computers working together to increase employees’ physical capabilities. At Hyundai, robotic devices
are worn by some manufacturing employees that give them more strength and endurance than any
normal human. While it’s difficult to predict exactly how artificial intelligence will affect jobs in the
future, there are some aspects of jobs that may be impossible to automate effectively. As CEO Chida
Khatua of the asset-management firm EquBot put it, “If I’m the customer explaining what I want,
humans need to be involved. Sometimes I don’t know what I really want.”
DISCUSSION QUESTIONS:
1-13. In what ways do machines add to the work of managers and other employees (instead of replacing
them)?
1-14. How might AI change a manager’s job in 2030?
1-15. What kind of skills or tasks do you think are least likely to be done by machines or computers in
the future?
1-16. What can you do to make yourself more valuable to companies so that they need you (and not a
machine) to get work done?
ANSWERS:
1-13. Machines can add to the work of managers and other employees in various ways, such as:
Providing data analysis and insights that can help inform decision-making.
Automating routine or repetitive tasks, freeing up time for employees to focus on more complex or
creative work.
Enhancing employees' physical capabilities through the use of exoskeletons or other robotic devices.
,Supporting customer service by handling basic inquiries and allowing human employees to focus on
more complex issues.
1-14. AI is likely to change a manager's job in 2030 by:
Providing more sophisticated data analysis and predictive capabilities, allowing managers to make more
informed decisions.
Automating routine tasks such as scheduling and record-keeping.
Enhancing collaboration and communication among team members through the use of virtual assistants
and chatbots.
Providing real-time feedback and coaching to employees based on their performance data.
1-15. Skills or tasks that are least likely to be done by machines or computers in the future include:
Creativity and innovation, such as generating new ideas or developing new products.
Emotional intelligence, such as empathy and social awareness.
Complex problem-solving that requires human judgment and intuition.
Physical tasks that require dexterity or fine motor skills.
1-16. To make oneself more valuable to companies, one can:
Focus on developing skills that are difficult to automate, such as creativity, emotional intelligence, and
complex problem-solving. Stay up-to-date with emerging technologies and trends to understand how
they may affect one's industry or job. Cultivate a growth mindset and a willingness to learn and adapt to
new challenges. Build strong relationships and communication skills to collaborate effectively with both
human and machine colleagues.
CASE STUDY2 CHAP1
It’s one thing to ensure that customers feel that their concerns are resolved quickly. It’s something else
to revamp how a company reaches customers. That’s what Nike has been up to lately. This approach
seems to be paying off with sales growth as well as record-high stock prices.Nike CEO Mark Parker calls
their Nike Direct effort a “massive transformation” of the company.36 Selling to customers directly has
changed processes throughout the company—including design, manufacturing, sales and more. They
rolled out the Nike SNKRS app to alert superfans about limited-edition releases. Nike cultivated closer
relationships with superfans with a suite of new experiences. They also used SNKRS as a lab for how to
better connect with customers digitally.
As Nike learns what their customers want, they are injecting that information into the first step of their
process: creating new shoes. In the summer of 2018, they opened their first Nike Live store in Los
Angeles. Sneakers and apparel made just for this neighborhood are being sold there. Nike figured out
what residents in this area like based on data from their six apps.
Nike Live stores are all about a new kind of focus on the customer. A pair of shoes are waiting for you in
a locker that pops open upon your arrival in the store. Then, you can take the shoes for a run on an in
,store treadmill. Have questions? No problem! Feel free to ask Nike athletes who are ready to answer
those questions. If you know what you want, you can schedule curbside pick-up from the store via the
app. Special offers also await customers visiting Nike Live stores. Scan your profile bar code in a store at
a special vending machine and gifts like Dri-Fit socks are yours for free. Nike wants these stores to make
shoppers feel special. And they offer what online shopping can’t: trying on items and getting in-person
service. Building a one-on-one relationship with consumers comes with perks. Nike doesn’t have to
spend months working with retailers on how to target customers. And, based on data from their apps,
they can keep a step ahead figuring out what customers want.
DISCUSSION QUESTIONS:
1-17. What makes Nike’s focus on the customer different from most companies?
1-18. If you were in charge of taking Nike’s focus on the customer to the next level, what you would you
do?
1-19. What advantages of online shopping and in-person shopping do Nike Live stores try to combine?
Why (or why not) do you think they will be successful?
1-20. What do you think a focus on the customer will look like for companies in 2025?
ANSWERS:
1-17. Nike's focus on the customer is different from most companies in that it involves a deep
understanding of their customers' needs and preferences, and using that knowledge to create
personalized experiences for them. Nike is using data from their apps to design products and
experiences that cater to specific customer segments. They are also creating in-store experiences that
combine the advantages of online and in-person shopping.
1-18. If I were in charge of taking Nike's focus on the customer to the next level, I would explore more
ways to gather customer feedback and data to continuously improve their experiences. I would also
consider expanding the use of technology in their stores, such as virtual reality or augmented reality, to
enhance the in-store experience even further. Additionally, I would focus on creating more sustainable
products and processes, which is a growing concern among customers.
1-19. Nike Live stores try to combine the advantages of online shopping, such as convenience and
personalization, with the advantages of in-person shopping, such as the ability to try on items and get
in-person service. The stores offer personalized experiences based on customer data and preferences, as
well as the ability to try on products before buying. They also offer the convenience of curbside pickup
and special offers for customers. Whether they will be successful or not will depend on how well they
execute their strategy and how receptive customers are to these new experiences.
1-20. In 2025, a focus on the customer will be even more important for companies. With the increasing
use of technology and data, companies will be able to create more personalized experiences for their
, customers. However, customers will also expect more transparency and ethical practices from
companies. Companies that prioritize sustainability and social responsibility, and that are transparent
about their practices, will have an advantage. Additionally, companies will need to find new ways to
connect with customers, such as through social media and other digital platforms. The use of
technology, such as artificial intelligence and virtual reality, will continue to play a significant role in
creating personalized experiences for customers.
CHAP2
CASE STUDY1
Card Connection is one of the UK’s largest card publishers and a market leader in the franchise
distribution of greeting cards in the UK and the Republic of Ireland (ROI). Established in 1992, it is
regarded as one of the Britain’s best-run franchise operations and has been a member of the British
Franchise Association since 1995. As a print and paper company, Card Connection has been able to
endure effectively in the UK in the face of digital era and online communication era. The print cards
market remains strong in the country primarily due to the British culture and a tradition focused on card
sending and card display at home. However, the economic challenges and complexities pertaining to a
future Brexit deal may have an impact on all businesses including the time and cost in adjusting to a new
economic environment—and Card Connection is no exception. Its franchisees don’t operate under a
standard retail format and, instead, act as intermediaries in supplying cards to a range of retail outlets in
allocated franchise areas. Typically, its franchise holders supply products to post offices, convenience
stores, gas stations, and other retailers. Given this customer base, Card Connection’s management takes
advantage of a business model that requires it to place its products in the outlets on a “consignment”
basis—customers don’t buy the stock and they only pay for what they sell. This proved to be a success.
At the beginning of 2019, there were 63 franchises across Britain and around 12,000 retail outlets using
its services in ROI. At any given time, the management of Card Connection looks for potential
franchisees. To decide which areas to allocate to which franchise holder, Card Connection analyzes
several data sources. The primary data drivers are demographic, a combination of raw population
figures and the number of households. The decision makers must also analyze the number of potential
stockists, competitors in the area, the average income of the population, and other elements. While the
initial process of dividing the UK and the ROI into equal portions is simple, as the franchises develop and
with changes in demographics, regional and local economics, and other criteria, the value of each area
changes. Each franchise holder has a discrete and exclusive territory that only they can supply to. It is
because of this that Card Connection’s decision-making process regarding territories often revolves
around geography. In most cases, this is how franchise areas are determined and how territories
derived. A major problem arises when a franchisee attracts business from a customer outside of its
franchise area. The franchisor needs to be clear about these instances. Some franchise agreements
allow the franchisor to change the territory, should the circumstance arise. This is an indicator of
changes in the demographics within a territory, a development in technology, or a rise in the demand
for the product or service offered within the franchise system.
DISCUSSION QUESTIONS:
2-10. What ongoing decisions are necessary about the size of franchise areas?
2-11. What factors should you consider when deciding to acquire a franchise?
CHAP1
CASE STUDY1
For most people, artificial intelligence brings to mind replacing jobs with robots. However, 1,500
companies studied by the management consulting firm Accenture found that the largest performance
gains were when humans and machines worked together .What does humans and machines working
together look like? At clothing retailer H&M, human buyers and planners use artificial intelligence (AI) to
guide their work. They rely on data to figure out what styles will be purchased, by which types of
customers, and what their customers might need in future seasons. Buyers and planners then build on
that data to make final decisions .A similar process is used by Nathan Cates, a buyer at Bombfell , an
online styling service for men that sends customers boxes of clothing that they can keep or return.
Before buying an item, Cates insists on touching the fabric and testing it for features such as fabric
sheerness and fit.34 But, in contrast to H&M, these tasks are not currently accomplished well by
machines .If you call your pharmacy to refill a prescription and don’t talk to a human, pharmacy
employees are freed up to spend their time on customer questions that are more complex. Some
companies, like the Swedish bank SEB, use AI to monitor customer calls handled by humans to see how
similar problems might be resolved or even prevented in the future. It’s also possible to see humans and
computers working together to increase employees’ physical capabilities. At Hyundai, robotic devices
are worn by some manufacturing employees that give them more strength and endurance than any
normal human. While it’s difficult to predict exactly how artificial intelligence will affect jobs in the
future, there are some aspects of jobs that may be impossible to automate effectively. As CEO Chida
Khatua of the asset-management firm EquBot put it, “If I’m the customer explaining what I want,
humans need to be involved. Sometimes I don’t know what I really want.”
DISCUSSION QUESTIONS:
1-13. In what ways do machines add to the work of managers and other employees (instead of replacing
them)?
1-14. How might AI change a manager’s job in 2030?
1-15. What kind of skills or tasks do you think are least likely to be done by machines or computers in
the future?
1-16. What can you do to make yourself more valuable to companies so that they need you (and not a
machine) to get work done?
ANSWERS:
1-13. Machines can add to the work of managers and other employees in various ways, such as:
Providing data analysis and insights that can help inform decision-making.
Automating routine or repetitive tasks, freeing up time for employees to focus on more complex or
creative work.
Enhancing employees' physical capabilities through the use of exoskeletons or other robotic devices.
,Supporting customer service by handling basic inquiries and allowing human employees to focus on
more complex issues.
1-14. AI is likely to change a manager's job in 2030 by:
Providing more sophisticated data analysis and predictive capabilities, allowing managers to make more
informed decisions.
Automating routine tasks such as scheduling and record-keeping.
Enhancing collaboration and communication among team members through the use of virtual assistants
and chatbots.
Providing real-time feedback and coaching to employees based on their performance data.
1-15. Skills or tasks that are least likely to be done by machines or computers in the future include:
Creativity and innovation, such as generating new ideas or developing new products.
Emotional intelligence, such as empathy and social awareness.
Complex problem-solving that requires human judgment and intuition.
Physical tasks that require dexterity or fine motor skills.
1-16. To make oneself more valuable to companies, one can:
Focus on developing skills that are difficult to automate, such as creativity, emotional intelligence, and
complex problem-solving. Stay up-to-date with emerging technologies and trends to understand how
they may affect one's industry or job. Cultivate a growth mindset and a willingness to learn and adapt to
new challenges. Build strong relationships and communication skills to collaborate effectively with both
human and machine colleagues.
CASE STUDY2 CHAP1
It’s one thing to ensure that customers feel that their concerns are resolved quickly. It’s something else
to revamp how a company reaches customers. That’s what Nike has been up to lately. This approach
seems to be paying off with sales growth as well as record-high stock prices.Nike CEO Mark Parker calls
their Nike Direct effort a “massive transformation” of the company.36 Selling to customers directly has
changed processes throughout the company—including design, manufacturing, sales and more. They
rolled out the Nike SNKRS app to alert superfans about limited-edition releases. Nike cultivated closer
relationships with superfans with a suite of new experiences. They also used SNKRS as a lab for how to
better connect with customers digitally.
As Nike learns what their customers want, they are injecting that information into the first step of their
process: creating new shoes. In the summer of 2018, they opened their first Nike Live store in Los
Angeles. Sneakers and apparel made just for this neighborhood are being sold there. Nike figured out
what residents in this area like based on data from their six apps.
Nike Live stores are all about a new kind of focus on the customer. A pair of shoes are waiting for you in
a locker that pops open upon your arrival in the store. Then, you can take the shoes for a run on an in
,store treadmill. Have questions? No problem! Feel free to ask Nike athletes who are ready to answer
those questions. If you know what you want, you can schedule curbside pick-up from the store via the
app. Special offers also await customers visiting Nike Live stores. Scan your profile bar code in a store at
a special vending machine and gifts like Dri-Fit socks are yours for free. Nike wants these stores to make
shoppers feel special. And they offer what online shopping can’t: trying on items and getting in-person
service. Building a one-on-one relationship with consumers comes with perks. Nike doesn’t have to
spend months working with retailers on how to target customers. And, based on data from their apps,
they can keep a step ahead figuring out what customers want.
DISCUSSION QUESTIONS:
1-17. What makes Nike’s focus on the customer different from most companies?
1-18. If you were in charge of taking Nike’s focus on the customer to the next level, what you would you
do?
1-19. What advantages of online shopping and in-person shopping do Nike Live stores try to combine?
Why (or why not) do you think they will be successful?
1-20. What do you think a focus on the customer will look like for companies in 2025?
ANSWERS:
1-17. Nike's focus on the customer is different from most companies in that it involves a deep
understanding of their customers' needs and preferences, and using that knowledge to create
personalized experiences for them. Nike is using data from their apps to design products and
experiences that cater to specific customer segments. They are also creating in-store experiences that
combine the advantages of online and in-person shopping.
1-18. If I were in charge of taking Nike's focus on the customer to the next level, I would explore more
ways to gather customer feedback and data to continuously improve their experiences. I would also
consider expanding the use of technology in their stores, such as virtual reality or augmented reality, to
enhance the in-store experience even further. Additionally, I would focus on creating more sustainable
products and processes, which is a growing concern among customers.
1-19. Nike Live stores try to combine the advantages of online shopping, such as convenience and
personalization, with the advantages of in-person shopping, such as the ability to try on items and get
in-person service. The stores offer personalized experiences based on customer data and preferences, as
well as the ability to try on products before buying. They also offer the convenience of curbside pickup
and special offers for customers. Whether they will be successful or not will depend on how well they
execute their strategy and how receptive customers are to these new experiences.
1-20. In 2025, a focus on the customer will be even more important for companies. With the increasing
use of technology and data, companies will be able to create more personalized experiences for their
, customers. However, customers will also expect more transparency and ethical practices from
companies. Companies that prioritize sustainability and social responsibility, and that are transparent
about their practices, will have an advantage. Additionally, companies will need to find new ways to
connect with customers, such as through social media and other digital platforms. The use of
technology, such as artificial intelligence and virtual reality, will continue to play a significant role in
creating personalized experiences for customers.
CHAP2
CASE STUDY1
Card Connection is one of the UK’s largest card publishers and a market leader in the franchise
distribution of greeting cards in the UK and the Republic of Ireland (ROI). Established in 1992, it is
regarded as one of the Britain’s best-run franchise operations and has been a member of the British
Franchise Association since 1995. As a print and paper company, Card Connection has been able to
endure effectively in the UK in the face of digital era and online communication era. The print cards
market remains strong in the country primarily due to the British culture and a tradition focused on card
sending and card display at home. However, the economic challenges and complexities pertaining to a
future Brexit deal may have an impact on all businesses including the time and cost in adjusting to a new
economic environment—and Card Connection is no exception. Its franchisees don’t operate under a
standard retail format and, instead, act as intermediaries in supplying cards to a range of retail outlets in
allocated franchise areas. Typically, its franchise holders supply products to post offices, convenience
stores, gas stations, and other retailers. Given this customer base, Card Connection’s management takes
advantage of a business model that requires it to place its products in the outlets on a “consignment”
basis—customers don’t buy the stock and they only pay for what they sell. This proved to be a success.
At the beginning of 2019, there were 63 franchises across Britain and around 12,000 retail outlets using
its services in ROI. At any given time, the management of Card Connection looks for potential
franchisees. To decide which areas to allocate to which franchise holder, Card Connection analyzes
several data sources. The primary data drivers are demographic, a combination of raw population
figures and the number of households. The decision makers must also analyze the number of potential
stockists, competitors in the area, the average income of the population, and other elements. While the
initial process of dividing the UK and the ROI into equal portions is simple, as the franchises develop and
with changes in demographics, regional and local economics, and other criteria, the value of each area
changes. Each franchise holder has a discrete and exclusive territory that only they can supply to. It is
because of this that Card Connection’s decision-making process regarding territories often revolves
around geography. In most cases, this is how franchise areas are determined and how territories
derived. A major problem arises when a franchisee attracts business from a customer outside of its
franchise area. The franchisor needs to be clear about these instances. Some franchise agreements
allow the franchisor to change the territory, should the circumstance arise. This is an indicator of
changes in the demographics within a territory, a development in technology, or a rise in the demand
for the product or service offered within the franchise system.
DISCUSSION QUESTIONS:
2-10. What ongoing decisions are necessary about the size of franchise areas?
2-11. What factors should you consider when deciding to acquire a franchise?
