INSTRUCTOR’S VIDEO GUIDES
BALTZAN AND
PHILLIPS
Videos are a great way to help your students relate to the MIS concepts taught in this course. Watching how the
Greater Chicago Food Depository uses the supply chain to distribute perishable goods to hundreds of homeless
people is an excellent way to understand the importance of executing a supply chain strategy.
Have a Great Class!
Paige and Amy
Archtv2
Cirque du Soleil
Digital Domain
Disney Imagineering
Greater Chicago Food Depository
Hot Topics
Hurricane Katrina
Lill 1154
MTV Urge and MTV University
Night Agency
Online Job Search Industry
Opportunities for Knowledge Workers
Panera Bread
Patagonia
Raven Biotechnologies
Rocketboom
SolutionPeople
Spawn.com
State Farm Bank
The Motley Fool
Instructor’s Video Guide
Baltzan and Phillips
Page 1 of 22
ARCHTV2
9:28
Artist Stan Carroll discusses how he uses technology to run his small business. From marketing to finance to
outsourcing, technology helps cut costs and keep his design business on the cutting edge.
This is a great video as it incorporates project management, outsourcing, systems development life cycle, and
development methodologies. The business is an art business which is about as far from technology as you can
get, but uses technology as a key resource in all of its products.
DISCUSSION
1. How does the systems development life cycle influence the art development process?
The SDLC is used in the art development process. You can see all of the phases from planning and analysis to
design and development. The SDLC can apply to any project and if the students understand good project
management they will be more successful when executing projects.
2. Why is rapid application development key to the art process?
Using technology and key programs the company can take complex 3-D drawings and create them in a simple
pattern they can cut out and put back together.
3. How has outsourcing helped the art development process?
By outsourcing components from China the company can create the products for a cheaper price.
4. What would you tell Digital Domain if they told you they wanted to use the waterfall approach to run a project?
How could the different systems development methodologies help improve the development process? Using the
iterative approach to systems development will allow the company a great chance of success.
Instructor’s Video Guide
Baltzan and Phillips
Page 2 of 22
CIRQUE DU SOLEIL: NO CLOWING AROUND
11:00
This video features Cirque du Soleil, a unique and successful circus. Topics covered include Cirque du Soleil’s
mission, competitive advantages, relationships with stakeholders, and the importance of technology to its
productions.
Ask students if they remember attending the circus as a child or if they have attended one recently. When there,
did it ever occur to how much technology the circus used, or were they too busy having fun to think about it? Ask
them to identify some other ―non-traditional‖ business organizations that depend on technology to operate.
DISCUSSION
1. How does Cirque du Soleil use technology to its advantage? It is the combination of technology and talent that
allows Cirque to pull off some of its most daring stunts, thereby distinguishing it from the bulk of its competitors.
2. Explain some of the ways Cirque du Soleil uses wireless and mobile technology. Cirque du Soleil uses
technology the same as many other businesses from accounting systems to human resource management
systems. It would also use supply chain management systems for its inventory and advanced forms of decision
support systems and artificial intelligent systems for its shows. Wireless technology would play a major role in its
shows from wireless ticket scanning systems to performer microphones.
3. How would networks impact Cirque du Soleil's business? Cirque du Soleil would require networks to run its
business. Without networks it would be impossible to have a website for ticket sales and information, send data
between the different locations, hook all of the computers in the show together, etc. It is fascinating how much
technology is found in the daily operations of a circus.
Instructor’s Video Guide
Baltzan and Phillips
Page 3 of 22
DIGITAL DOMAIN
11:00
Digital Domain is one of the world’s largest digital production studios, responsible for providing the special effects
for countless movies. The special effects shop responsible for the stunning effects of the movie Titanic reveals
how simple project management (and a really good database) helps them manage their fluent staff needs.
Ask the students why a company that provides special effects needs technology such as a project management
and systems development. Ask the students if they think movie studios produce their special effects in-house or if
they contract out for them. Ask students if they know how special effects in movies are achieved.
DISCUSSION
1. How can project management help Digital Domain run its business? All businesses benefit from project
management and systems development. In the words of Peter Drucker - if you can't measure it you can't manage
it. PM is all about measurement and management. PM will help all of Digital Domains projects remain on-time,
on-budget, and satisfy user requirements.
2. How does the systems development life cycle impact Digital Domain? Even though Digital Domain is not
building information systems they are still going through the phases of the SDLC when they run their projects plan, analysis, design, development, test, implement, and maintain.
3. How could Gantt charts help improve Digital Domain's business operations? Gantt charts will allow Digital
Domain to track each project, each task, delivery dates, and resources. It will be a great tool to constantly provide
Digital Domain with status on all of its project. It will also be able to understand instantly the ramifications of
missing deadlines or falling behind schedule - including dependencies.
4. What are the benefits and risks of Digital Domain outsourcing their special effects? The primary benefit includes
cheaper costs the risks are numerous including decreased quality and stealing of sensitive information.
Instructor’s Video Guide
Baltzan and Phillips
Page 4 of 22
DISNEY IMAGINEERING
11:30
This video focuses on challenges faced by Walt Disney Imagineering, the group of artists and craftspeople who
design and create Disney-themed venues. Disney management has successfully responded to differing
expectations in global markets.
Ask your students to share with the class their experiences traveling abroad. Encourage them to focus upon those
elements of foreign culture that presented the most difficult adjustment for them during their travels. How would
global cultures impact decision making and business processes?
DISCUSSION
1. Identify a few different types of TPS, DSS, and EIS systems potentially used by Disney Imagineering.
• TPS: ticketing systems, cash registers, reservation systems
• DSS: inventory forecasting systems, inventory ordering systems, ride usage analysis systems, human resources
payroll systems, accounting systems, financial systems
• EIS: currency rates and accounting information, stock market information and financial forecasts for tourism,
comparisons with other theme parks
• **The important differentiator is that the EIS would pull in external information
2. Identify a few differences between decision-making systems used in California and decision-making systems
used in China. • Currency, Language, Tax, Invoice formatting, Local laws, Partner information
3. How does Disney Imagineering use AI? AI is everywhere in Disney from its rides to AI animals and puppets.
Disney Imagineering is AI.
4. How would business differ for a global company? When working in a global company you need to be far more
aware of global issues including currency rates, exchange rates, political issues, etc.
5. What forces could impact business processes across a global company like Disney? Forces could include
laws, culture, technology (in Asia many people use their cell phones to purchase products and this could include
ticket sales).
Instructor’s Video Guide
Baltzan and Phillips
Page 5 of 22
GREATER CHICAGO FOOD DEPOSITORY
11:30
The Greater Chicago Food Depository (GCFD) distributes more than 40 million pounds of food per year to outlets
such as food pantries, soup kitchens, and churches. This video discusses the distribution channels GCFD uses
and the importance of logistics.
DISCUSSION
1. How does GCFD work? GCFD takes donated food and makes it available to the ―retailers‖ so that they can put
it into the hands of the needy as soon as possible. They also transfer ownership of food from donors to recipients.
Information is created when GCFD lets donors know what kind of foodstuffs are needed and lets recipients know
what is available and when.
2. Why would it be disastrous to ―eliminate the middleman‖ in this particular channel of distribution? Although
donors (the suppliers) have great intentions, they probably don’t have time to deliver their excess food directly to
local charities since they are very busy running their businesses. And since most of the ―retailers‖ are local
charities with minimal resources, it would be difficult for them assume the responsibility of picking up the donated
food themselves. This massive charitable effort would be severely impaired without the GCFD filling the role of
middleman.
3. Why is it important that non-profit organizations utilize highly efficient supply chain management systems akin
to those used in successful businesses? The GCFD is an example of a non-profit organization that has increased
its effectiveness in serving humanity by adopting sophisticated management practices. The services provided by
nonprofits are much needed in our society. Too often, management inefficiencies prevent nonprofits from helping
large numbers of people.
Instructor’s Video Guide
Baltzan and Phillips
Page 6 of 22
HOT TOPICS
11:30
This video features Betsy McLaughlin and the two clothing stores she has created. Both Torrid and Hot Topic are
designed to appeal to niche markets. Hot Topic appeals to modern music lovers, and Hot Topic is aimed at
mature, plus sized women. McLaughlin has created a unique corporate culture designed to engender fierce loyalty
from its employees.
Encourage students to recall their recent visits to retail stores. Ask them to then recall an instance in which they
received excellent service from a highly motivated employee, as well as an instance during which they received
lackluster service from a disinterested, unenthusiastic employee. In both cases, how did the employee’s attitude
impact their shopping experience and their overall attitude toward the retailer?
DISCUSSION
1. Give examples of different systems offered by Hot Topic, Inc. Hot Topic’s compensation plan and Concert
Reimbursement Program are examples of ERP systems. Hot Topic employees are passionate about the attention
they pay to underserved markets and helping to make them feel good about themselves. Employees also have the
opportunity to experience self satisfaction if they choose to grow, learn, and move up the corporate ladder in this
organization that prefers to promote from within.
2. What might happen to Hot Topics if it did not have systems that could see across all stores, such as an ERP
system? Hot Topics’ competitive compensation plan would not work since it would not know how employees
perform across the organization. It would be difficult to order inventory since you would not be able to see
inventory across the board. Ordering inventory per store would be very expensive due to economies of scale.
Accounting and financial functions would not operate as you have to see how the stores are doing across the
board.
3. Typically, there is a high rate of turnover amongst retail employees. In general, how do innovative employee
programs, such as does found at Hot Topic, help to reduce this tendency? Innovative employee programs and
dynamic corporate cultures often make workers feel that they are part of a team or a family. Because employees
have fun at their job, they are more likely to develop a more positive attitude toward their employer and work
harder toward making a contribution. Using collaboration tools to track and identify potential employee issues
would be a great way to understand how employees are performing. All of this contributes to a reduction in
employee turnover. Using an ERP systems with a human resources management component can help manage
the employee relationships.
Instructor’s Video Guide
Baltzan and Phillips
Page 7 of 22
HURRICANE KATRINA
11:00
Hurricane Katrina’s winds and water topped New Orleans’ levees and flooded the city. This video features an
economist discussing the economic issues that must be confronted in rebuilding the city. Examines the role IT
played in the disaster recovery effort.
DISCUSSION
1. Explain the hurricane’s impact on businesses? The scale of the hurricane’s devastation was such that it
affected the national economy. In the months following the storm, unemployment rates climbed, government deficit
spending increased, and energy prices soared. However, the economic impact on individual industries was also
profound. Oil drilling increased because of higher gasoline prices. Automobile sales skyrocketed as residents
replaced flooded vehicles.
2. Explain the importance of backup and recovery. You never know what types of disasters could occur and if your
business is not prepared you will find yourself out of business if a national disaster occurs.
Instructor’s Video Guide
Baltzan and Phillips
Page 8 of 22
Lill 1154
10:00
1154 Lill Studio was founded by Jennifer Velarde, a corporate interior designer. In this video Velarde talks about
her experiences as an entrepreneur, her vision and mission for the company, management challenges she has
faced, and how she has solved them.
How did Lill 1154 change the supply chain of purchasing purses to gain a competitive advantage? View Lill 1154's
website to demonstrate how flexible the program is to build and create products www.lill54.com. How is its
ebusiness changing the supply chain of its business?
DISCUSSION
1. How does the supply chain fit into Lill 1154 strategic plan? By customizing the supply chain Lill 1154 is able to
offer its customers unique one-of-a kind products they custom-develop over the Internet. By allowing customers to
shop over the Internet Lill 1154 can dramatically increase its customer base. Prior to using the Internet for order
placement customers had to visit one of Lill 1154’s stores.
2. Draw a picture of Lill 1154’s potential supply chain.
3. Give students ten minutes or so to brainstorm in small clusters. Have the groups identify ideas for new product
innovations involving the supply chain that would solve some of the problems college students face in a typical
day. Make a list of the topic five ideas and then ask students which of those ideas they think would be easiest to
market.
Instructor’s Video Guide
Baltzan and Phillips
Page 9 of 22
MTV URGE AND MTV UNIVERSITY
11:30
MTV has an established reputation for delivering music and videos to a generation of young adults. This video
focuses on two new MTV enterprises: Urge, an online music distribution service, and MTV University, a cable
channel designed by and for college students. MTV customers are extremely loyal and MTV is an expert at CRM
and BI.
As students prepare to watch the video, ask them if they have had experience using MTV’s Urge. Do they like the
service? How does it compare with iTunes? Why are CRM and BI important to MTV?
DISCUSSION
1. How will MTV’s current customer base help it when launching new products? MTV’s current customers are
loyal and will be open to new products launched by the company. Brand recognition will play a big factor as it uses
CRM to reach the market for its new products.
2. How do you think MTV should advertise its online music service? Why? Traditional advertising media such as
television, newspapers, and radio won’t reach the audience desired. MTV should concentrate on nontraditional
approaches such as viral marketing, interactive online games, and event sponsorship. It should use its current
CRM systems to reach customers in new ways.
3. Given its in-depth knowledge of the music market and strong brand recognition, do you think MTV will be able to
gain market share from iTunes? Why or why not? Students will have various opinions about this topic. Can MTV
translate its cable music service into an online service? Can it differentiate itself from the market leader? Makes for
an interesting discussion.
4. How can MTV use BI to improve its business? MTV can use BI to ensure it is creating products and programs
that appeal to its audience. By running statistics on current programming and mining the data on such attributes
as times watched, average age of viewer, etc. MTV can gain better insight into its future programming and
program choices.
Instructor’s Video Guide
Baltzan and Phillips
Page 10 of 22
NIGHT AGENCY
11:20
Night Agency is a marketing agency focusing on cutting-edge promotional tactics, such as viral marketing and
product placement. The video shows how the agency uses promotions such as online interactive games to reach
today’s technology-savvy customers.
As they watch the video, ask students to analyze the ways in which Night Agency markets the client/product. Why
does the interactive advertising work? Also, note that Night Agency has several target markets: the customer who
will watch/play the video, the client commissioning the campaign, and potential clients who will notice the
promotion and consider hiring Night Agency.
DISCUSSION
1. How does promoting a charitable cause like aid to Darfur differ from promoting a commercial product, such as
BMW motorcycles or Coca-Cola? The primary goal of promoting a charitable cause is to build awareness and
communicate information. There are countless good causes out there. The marketer for a charity has to make his
or her organization stand out. Consumer product advertising stresses the value of the product to the purchaser—
status, pleasure, respect, etc. Charity advertising stresses the value of the product to others. However, whether it
is a charitable cause or a consumer product, advertising should also communicate information, create a positive
image, and position products. Does your ebusiness strategy change depending on the type of business?
2. Are there products for which the interactive advertising approach would not work? Why or why not? The goal of
advertising is to reach the desired audience with the right message through the appropriate medium. Interactive
advertising works best for products and services geared to teenagers and young adults. Promotions for products
aimed at older adults and senior citizens may not be as successful. While Internet use is expanding across all
segments of population, there is still some resistance in the older population. Interactive advertising works for
grooming products, soft drinks, sports gear, software, and so forth. Products for which interactive advertising may
not be effective could include cholesterol and diabetic drugs, health care insurance, or mortgage brokers.
3. What type of person should the agency recruit? What characteristics would be desirable a new employee?
Would attracting employees to work at an ebusiness be different than a brick-and-mortar business? This type of
promotion depends heavily upon creativity and innovation. The agency will probably screen applicants for
creativity, flexibility, technical knowledge, adaptability, and people skills.
Instructor’s Video Guide
Baltzan and Phillips
Page 11 of 22
ONLINE JOB SEARCH INDUSTRY
6:40
For an industry so young, it seems improbable but players like Monster and Hot Jobs are already being forced to
reinvent their business model by new competitors and technologies. Innovation and globalization play a major role
for these online players.
DISCUSSION
1. What role does innovation play in OJSI? Innovation is how the OJSI came into existence. Without innovative
individuals the business might not have ever come into existence.
2. Why does the OJSI need to consider globalization? The world is flat. Jobs are global. With remote workers
and telecommuting people from all over the world will be using their services to find good employees and great job
opportunities.
3. What role does a social networking site like LinkedIn play in the OJSI? LinkedIn has combined the power of
social networking with job search. Recommendations for employees and for jobs are one of the best way to find
new employees and new opportunities. Companies like Starbucks use social networking sites extensively to find
and hire the right employees.
Instructor’s Video Guide
Baltzan and Phillips
Page 12 of 22
OPPORTUNTIES FOR KNOWLEDGE WORKERS
9:30
This is an excellent video to show on your first day of class and give your students an introduction to the course.
This video highlights several different businesses and how they are embracing technology to gain competitive
advantages. Many of the businesses in this video are discussed in detail in videos throughout the course.
Your students all have one common denominator – they are all business majors. Regardless of their major they all
want to compete in business. There is a direct correlation between business and technology and showing this
video will help them get excited about the many fascinating business aspects they will study during this course. If
your students are like mine they are wondering why they need to take an introduction to technology course. This
video will help them see the many different benefits they will receive from this course that they can use to
accelerate their own careers.
DISCUSSION
1. What is the correlation between business and technology?
There is a direct correlation between business and technology. Successful businesses understand how they can
gain competitive advantages by using technology. Netflix is in the video rental business, but because they
understand supply chain management technologies they revamped the general process for renting videos.
Amazon is in the book selling industry and has created virtual bookstores all over the world. eBay is an auction
house and has revamped the way global buyers and sellers interact. It is important to note that these are not
technology companies, but they have all used technology to gain competitive advantages in their industries.
2. How can technology help your career regardless of your major?
The goal of this course is to help your students understand the business side of technology. Regardless of their
major they need to understand how technology works and how it interacts with a business. Marketing majors need
to understand CRM and online marketing – such as Night Agency demonstrated. Operations majors need to
understand supply chain such as the Chicago Greater Food Depository. Fashion and Merchandising majors need
to understand mass customization such as Lill 1154. Accounting and finance majors need to understand the many
ethical and security issues associated with technology. The list is endless – all majors need to understand
technology if they want to accelerate their careers.
3. If you could start your own business today what would it be? How will this course help you achieve building a
successful start-up? There is no correct answer to this question – it is more to get your students thinking in the
right direction. For a great list of current startups access the below Web site and show your students how kids
their own age are starting Web based businesses every day. If the website is no longer valid just search to find
new Web startups as these are the best ways to get your students excited about your course and show them that
kids today are starting all kinds of great web-based businesses.
Instructor’s Video Guide
Baltzan and Phillips
Page 13 of 22
PANERA BREAD
9:40
This video focuses on the various management techniques CEO Ron Shaich has used to successfully expand his
company, Panera Bread. Shaich explains the significance of a strong organizational culture and discusses why he
relies on his business strategies.
Major concepts discussed in the case include goal setting, strategic and tactical planning, and the importance of a
business plan. Encourage students to reflect upon the most recent manager for whom they have worked. Then
ask them to evaluate their manager’s strengths and weaknesses as related to their ability to plan, organize, lead,
and control, and to evaluate his or her leadership style. How could the manager have used Porter’s Five Forces or
Porter’s Generic Strategies to develop a better company?
DISCUSSION
1. How does CEO Ron Shaich use employee empowerment to affect Porter’s Five Forces?
Ron hires the best employees to increase his supplier power and decrease his buyer power. Having trust and
great relationships with customer’s decreases buyer power.
2. What type of generic strategy is Panera Bread using?
Panera Bread is using a focused strategy. They offer a limited number of wholesome items including soups,
baked goods, and sandwiches focusing on the lunch market. They do not offer Italian, Mexican, or Greek cuisines.
3. Prepare a Porter’s Five Forces Model for Panera Bread?
Buyer Power: high – customers have many fast food restaurants to choose from
Supplier Power: low - customers have many fast food restaurants to choose from
Threat of Substitute Products or Services – threats are high – the food industry has many substitutes including slim
fast drinks so people skip lunch. This is probably the most difficult force for students as they usually assume rivals
– other restaurants. This is incorrect. A substitute product must be something completely different – such as a
diet liquid lunch drink or diet granola bar.
Rivalry among existing competitors – high – there are so many fast food restaurants
Threat of New Entrants – high – new restaurants are started daily
4. Why is it important that managers take risks? What risks did Shaich face during his efforts to expand his
business?
In order for their company will grow, managers must take risks in order to capitalize on the opportunities before
them. Shaich’s decision to abandon his previous business holdings and focus exclusively on a new and unproven
business concept entailed tremendous risk. Although the new concept had been thoroughly researched, there was
no guarantee that it would work. Also, his earlier decision to purchase the St. Louis Bread Company contained
risk. There are many examples of business acquisitions that proved much less successful than anticipated by its
managers, often because of a clash in corporate cultures.
5. Why is it important that all owners have a business plan? How has Shaich incorporated his business plan into
his ongoing management operations?
A business plan is a planning tool that allows the business owner to critically examine every component of his or
her proposed venture before launching it. Once the business is off the ground, the business plan serves as guide
for managerial operations as well as a sales tool for raising capital, if that is needed. Shaich stated that his
company is still trying to get closer and closer to that vision that he wrote in his original business plan in 1994. This
indicates that the business plan continues to shape is daily management operations and decision making within
the company.
Instructor’s Video Guide
Baltzan and Phillips
Page 14 of 22
6. What values are exuded through Panera Bread’s organizational culture?
The very best organizations have cultures that emphasize service to others, especially customers. This seems to
describe Panera Bread. The atmosphere seems to be one of friendly, concerned, and caring people who are
working together to provide a high quality product. Everyone is encouraged to give input and each employee is
valued. Employees are committed to excellence and proud of their work.
Instructor’s Video Guide
Baltzan and Phillips
Page 15 of 22
PATAGONIA
11:40
Patagonia is a clothing store founded by an ardent sportsman and environmentalist. Patagonia is an excellent
example of a socially responsible corporation. Its unique benefits program is one reason Patagonia employees are
so passionate and loyal – a great example of employee relationship management.
Patagonia is an excellent example of a socially responsible corporation. Its workers are very passionate and loyal,
and very high levels of job satisfaction are the norm. One reason for this is the unique benefits offered, which are
designed to reflect their workers needs and desires. They include day care centers, paid internships with
environmental groups, and flexible working hours so that when the weather is perfect, employees can pursue their
favorite sporting activity.
DISCUSSION
1. Why are people a critical component of Patagonia’s success? How does employee relationship management
help the firm gain a competitive advantage? Patagonia’s success was built upon its ability to serve an unmet
market need by delivering high quality, innovative products that also reflect the core values of its customers. It is
the organization’s employees who continually remind customers what Patagonia stands for and why customers
should remain loyal to it, thereby creating an advantage over competitors.
2. Patagonia has been consistently ranked as one of the best companies by leading business magazines. Why do
you think this is the case? CRM and ERM and two primary reasons for Patagonia’s success. Patagonia has
created a culture that helps employees balance the demands of the job, family responsibilities, and their
commitment to environmental causes. For example, the company offers onsite childcare, and workers are allowed
the flexibility to adjust their work schedules to pursue their favorite sport. Workers also are given the opportunity to
serve as interns for an environmental group for two months while remaining on the company payroll.
3. What role does money play as a motivator at Patagonia? The goal of most employees at Patagonia is
psychological success, according to the video. Employees are not impressed with money and status symbols, but
rather non-tangible benefits such as deriving true meaning from work, possessing good health, raising a family,
and having flexibility in doing job tasks.
Instructor’s Video Guide
Baltzan and Phillips
Page 16 of 22
RAVEN BIOTECHNOLOGIES
11:30
Raven Laboratories is a biotechnology company founded by Jennie Mather. This video shows how Raven
attempts to develop biotechnological drugs without compromising ethics.
The specific technology involved in ―small molecule‖ technology is exceedingly complex and may be hard for
students to understand in detail. The best approach may be to leave the technology out of the discussion and
focus instead on the larger ethical questions. What is a fair price for a break-through drug? How can a company
exploit a technological advance without exploiting its customers?
DISCUSSION
1. Once a drug passes preliminary and toxicology testing, it must eventually be tested on non-terminal human
subjects. A standard industry practice is to pay physicians to conduct trials and to pay test subjects for their
participation. Do you believe research trials paid for by the drug company can be objective? Why or why not?
This is an ongoing area of debate. If physicians are paid by the company to test a product, there can be a bias for
positive results. In an ideal world, drug testing would be conducted by an impartial entity. In the real world,
however, new drugs would never come to market without paid testing. The Food and Drug Administration relies on
research presented by the drug developer. While there may be a potential conflict of interest, only the
pharmaceutical company itself has the deep pockets and the incentive to conduct such testing.
2. A drug company discovers that a drug it is testing is ineffective on the targeted disease. However, in testing the
researchers find that will treat a common disease in a developing country. The profit potential is very low. What
should the company do? Why? This scenario is based on the classic case of Merck Pharmaceutical and
ivermectin, its break-through treatment for river blindness. Merck’s research in veterinary drugs led to a treatment
for the primary cause of blindness in sub-Saharan Africa. But even at heavily discounted prices, no government
could afford the treatment. Merck eventually decided to provide the drug at no cost to those affected. The
company reaped an enormous public relations bonanza that helped establish its reputation for social responsibility.
(In 2003 the same company was forced with withdraw its blockbuster pain reliever Vioxx when patients began
developing life-threatening cardiac problems. Interesting discussion topic.)
3. Could large pharmaceutical companies, such as Abbot Labs, Pfizer, or Merck, adopt Raven’s ethical
framework? Why or why not? Raven’s ethical foundation is just that, its foundation. Jennie Mather created Raven
Laboratories with a specific mission, to develop biotechnological drugs without compromising ethics, ―to serve a
greater good by breaking the old rules.‖ Every decision the company made was built upon that framework. Large
pharmaceutical corporations can operate ethically, and do. Is it easier for a small company to operate ethically?
Maybe. Small companies have fewer stockholders and face less intense scrutiny, but small doesn’t equal ethical,
and large doesn’t equal greedy.
Instructor’s Video Guide
Baltzan and Phillips
Page 17 of 22
ROCKETBOOM
11:08
Rocketboom a highly successful video blog site discusses how it became an Internet pioneer by being first to
market with video blogging.
Rocketboom is such an interesting company – how many of your students would love to have job creating 5
minutes random video segments each day. Rocketboom bypassed many traditional studio organizational
structures and throughout the use of the Internet have only a writer, producer, and editor. By understanding
business and technology the company became an Internet pioneer in video blogging.
DISCUSSION
1. How could Rocketboom generate revenue?
As you watch this video you might be guessing how Rocketboom generates revenue. As discussed in the video, if
they could capture accurate metrics they could easily generate revenue through marketing or search. This is a
great example of why measuring IT is so difficult.
2. How has Rocketboom changed its organizational structure from traditional television companies?
Rocketboom bypassed many traditional studio organizational structures and throughout the use of the Internet
have only a writer, producer, and editor. By understanding business and technology the company became an
Internet pioneer in video blogging.
3. What would happen if Rocketboom executives did not understand IT as well as business?
Rocketboom simply would not exist. Rocketboom is not in the technology business, it is in the television business.
However, its founders understand technology and the importance of efficiency and effectives to ensure the
quickest video downloads possible. Without understand these important factors Rocketboom would have bombed.
4. How would global issues impact Rocketboom? Rocketboom would be impacted by the same global issues as
any business including cultural, geopolitical, and economic issues.
Instructor’s Video Guide
Baltzan and Phillips
Page 18 of 22
SOLUTIONPEOPLE
11:25
SolutionPeople is a B2B company that helps corporation groups ―think outside of the box‖ to develop fresh
business solutions. This video focuses on the challenges of developing and pricing products that are almost
completely intangible.
DISCUSSION
1. Describe SolutionPeople’s total product offering and collaboration role in its products. The company’s product
offering includes access to learning, increased knowledge and creativity, an imaginative and intellectually
stimulating product line, the convenience of face-to-face product delivery to the customer’s location, a price that
offers perceived value, and a strong reputation derived from previously satisfied Fortune 500 customers.
2. Why is knowledge management a critical part of SolutionPeople’s marketing efforts?
Establishing and growing a brand is critical to the future of a small company that wants to develop into a major
player in its industry. SolutionPeople did an excellent job of creating a brand name that establishes for them a
memorable identity in the minds of customers and communicates clearly the benefit of providing their incredible
knowledge.
3. What tools can this organization use to improve its products? There are numerous collaboration tools including:
Knowledge management systems, Content management systems, Workflow management systems, Groupware
systems
As a group, ask students to list products for which they, or their peers, have willingly paid a premium price. That list
might include Nike sneakers, Ben & Jerry ice cream, designer clothing, a private school education, etc. Explore
with the class why consumers choose to buy these high priced items instead of more reasonably alternatives, and
if they feel these products offer a good ―bang for the buck‖. Then ask students if they have ever purchased a very
inexpensive item, only to learn that it was poorly made and would not last long. The intent of this discussion is to
foster a better appreciation of the concept of value and how collaboration with many people can add tremendous
value.
Instructor’s Video Guide
Baltzan and Phillips
Page 19 of 22
SPAWN.COM
11:30
Todd McFarlane's comic books, toys, and films enjoy customer loyalty many companies can only dream of. Show
how the company uses its web site to build a following for their products and get existing customers to buy more.
Ask students if they’ve ever considered starting their own business. If so, what types of skills or talents do they
currently possess that could perhaps be developed into a successful venture? Also, ask them what they see as the
rewards of successful entrepreneurship, and also what frightens them the most about entrepreneurship. How could
disruptive technology play a role in starting a new business?
DISCUSSION
1. Explain why disruptive technologies are typically introduced by small companies such as Spawn.com. Success
in starting and sustaining a business requires a combination of ambition, talent, industry knowledge, and
experience. Once the business is off the ground, the entrepreneur must remain vigilant by responding to the
influences of the business environment and turning possible adversity into opportunity. Entrepreneurs are more
likely to invest time and energy in disruptive technologies that meet customer’s future needs than large
corporations who primarily focus on meeting customers current needs.
2. How has the Internet impacted starting a new business? What motivated McFarlane to become an
entrepreneur? In what ways did his attitude and personality contribute to his success? How does his personal
relate to disruptive technologies? McFarlane became an entrepreneur because he wanted to control his own
destiny. McFarlane is a living example of disruption. Although he understood the risks of entrepreneurship, he
never focused upon the possibility of failure. Instead, he was motivated by his desire to succeed and was driven to
produce the highest quality products for his consumers. He was not intimidated by adversity, but instead sought
ways to turn adversity into opportunity. He remained undaunted by industry insiders who predicted he would last
one year at the most.
3. What unethical business practices could possibly pose a threat to the McFarland Companies? McFarlane
Companies has a heavy investment in licensed merchandise. A potential threat could be counterfeit products
produced in countries with weak intellectual property protection, such as China. Increased competition at home
and abroad, the aging of U.S. population, and a weak economy also pose potential threats to The McFarlane
Company.
Instructor’s Video Guide
Baltzan and Phillips
Page 20 of 22
STATE FARM BANK
11:30
State Farm Insurance has an established network of 16,000 independent agents. Deregulation of the banking in
the 1990s opened the way for insurance companies to enter the banking industry. This video shows how State
Farm’s agent network has made it possible to create a successful ―virtual‖ bank.
In the past, the federal government prohibited insurance companies from expanding into banking. The theory was
that no financial institution should do too many jobs. As the students prepare to watch the video, ask them to follow
the evolution of State Farm banking. Why did the company decide to enter banking? How does it use its existing
agents to acquire banking customers?
Also, have them pay attention to the potential ethical dilemmas that could develop. What would stop a State Farm
Insurance agent from pushing a customer too aggressively to use their banking arm?
DISCUSSION
1. What ethical concerns could develop exist when insurance and banking activities are combined?
The
primary ethical concern is that the banking and insurance activities could become too closely linked. An agent
selling an insurance policy to a homeowner can suggest financing through State Farm Bank, but that agent
crosses the ethical line when he or she makes one thing dependent on the other.
2. Do you think a bank can prosper without a physical location? Why or why not?
A growing number of customers today use online banking to pay bills. These transactions are not dependent on a
physical location. Applying for a loan could just as easily be handled online as in a face-to-face meeting. Many
customers prefer the convenience of banking without going to a bank. The potential problem area is deposits. If a
customer uses direct deposit of a monthly pay check, online banking would present no drawbacks. However, a
customer who makes numerous deposits would have difficulty using a bank that did not have a physical location.
3. How can a national bank like State Farm compete with local banks that have greater presence in the
community? Local banks like to advertise that they know the community and its needs. A banker who lives in the
same community as the bank customer would understand the customer’s needs better than a distant national
bank. State Farm, however, already has a local base of 16,000 independent agents who live in the community and
have existing relationships with customers. These agents give State Farm Bank a potentially greater local
presence than a ―local‖ bank.
4. What is the primary security concern facing State Farm? Data theft and identity theft are the primary security
concern facing State Farm. With the many data security breaches it could ruin the business if the banking and
insurance customer data was compromised. Now that State Farm is a bank it will be a greater target for thieves.
Instructor’s Video Guide
Baltzan and Phillips
Page 21 of 22
THE MOTLEY FOOL
10:00
Like many publishers, this provider of financial advice has found opportunities for distributing content via the web.
How do they maximize each customer interaction and keep their site running reliably?
Ask your students about their comfort level with the risk associated with online investing. Also, ask if they use an
online broker. What are the advantage and disadvantages associated with online investing?
DISCUSSION
1. What is the objective of the Motley Fool website? The objective of the Motley Fool Web site is to educate
beginning investors concerning the stock market. The site researches stocks for investors and enables them to
easily keep track of their portfolio’s performance over time. Also, investors can exchange ideas and opinions with
the Motley Fool experts and get advice about a variety of other personal financial planning topics, such as buying
a home, insurance, taxes, and the wise use of credit cards.
2. What impact has the Internet and wireless technologies has on investing? Private investing has soared during
the last decade, and many investors are seeking competent investment advice from sources other than traditional
brokerage firms. The Motley Fool Web site is a popular source of valuable information for investors who want to
learn the jargon, choices, and perils associated with investing. Using wireless technologies individuals can keep
continuously updated anywhere, anytime which is an important factor for investors.
3. What security and ethical concerns should The Motley Food be aware of? Because a computer manages index
funds instead of a professional broker, its cost to the investor is relatively low, which is why the Motley Fool
recommends it. However, the risk of security breaches are high.
4. How has 24x7 access to businesses changed the financial industry? How has the Internet changed the
financial industry? Financial companies used to operate from 9:00 - 5:00 and with face-to-face contact. Today,
many individuals have never been in their financial institutions and are accessing and updating financial
information 24x7. ING direct operates only as an Internet business and a virtual bank. Identity theft and fraud are
significantly harder to control online.
Instructor’s Video Guide
Baltzan and Phillips
Page 22 of 22