Volume 9, Number 1 2002 Allied Academies International Conference Nashville, Tennessee April 10-13, 2002 International Academy for Case Studies PROCEEDINGS Volume 9, Number 1 2002 page ii Allied Academies International Conference Table of Contents GROUND BREAKING NEWS INC. ..............................................1 James J. Bagwell, Clayton College & State University Lisa R. Henry, Clayton College & State University TROPICAL TRENDS, INC......................................................3 James J. Bagwell, Clayton College & State University GOING GLOBAL - MANAGING HUMAN CAPITAL ...............................7 Bonita B. Barger, Tennessee Technological University MANAGEMENT, UPSET WORKERS, AND A UNION: FEDERAL-MOGUL IN ALABAMA ........................................9 Patricia Borstorff, Jacksonville State University BURNS, MORRIS & STEWART: SUPPLYING THE HOME CONSTRUCTION AND REMODELING INDUSTRIES .........................................................15 Shane Allen, Stephen F. Austin State University Larry R. Watts, Stephen F. Austin State University Luke Motley, III, Stephen F. Austin State University Thomas M. Box, Pittsburg State University Scott Fullerton, Stephen F. Austin State University CORPORATE PROFITS AND PUBLIC HEALTH: EXPLORING STAKEHOLDER INTERESTS IN THE MARKETING OF CLARITIN ............................................21 Brian Davis, Weber State University IN THE WOODS: A HIGHWOODS PROPERTIES, INC. VALUATION CASE....................................................23 Tracy P. Downing, North Carolina Central University James Stotler, North Carolina Central University AIRPORT CONCESSION: DEVELOPING A BUSINESS PLAN AND PROFORMA ANALYSIS .....................................29 Michael D. Evans, Winthrop University Bennie H. Nunnally, Jr., University of North Carolina - Charlotte Nashville, 2002 Proceedings of the International Academy for Case Studies, Volume 9, Number 1 Allied Academies International Conference page iii PRECISION MANUFACTURING: THE RISKS AND REWARDS OF MINORITY BUSINESS VENTURING........................33 Michael D. Evans, Winthrop University Keith Robbins, Winthrop University CAPITALIZED CUSTOMER ACQUISITION COSTS AND EARNINGS QUALITY: A CASE STUDY OF PHOTOWORKS, INC. ..................................................39 Troy A. Hyatt, Seattle University Susan G. Weihrich, Seattle University AMAZON.COM .............................................................41 Javad Kargar, North Carolina Central University WAVE OF THE FUTURE? ....................................................47 Javad Kargar, North Carolina Central University Chuck Hutson, North Carolina Central University ETOYS.COM - A SURVIVAL CASE ............................................53 Javad Kargar, North Carolina Central University ST. LOUIS CHEMICAL: THE CASH DILEMMA..................................59 David A. Kunz, Southeast Missouri State University APPLEBEES................................................................65 Wilburn Lane, Lambuth University Michael McCullough, University of Tennessee at Martin CAMBRIDGE CAPITAL, LLC CASE............................................71 Philip Little, Western Carolina University Robert J. Barnett, Wells Fargo Mortgage Services STARBUCKS ...............................................................73 Shawna Loyd, The University of Texas of the Permian Basin William T. Jackson, The University of Texas of the Permian Basin Corbett Gaulden, The University of Texas of the Permian Basin HELL'S GATE POWER PLANT: SUPERVISING THE SUPERVISOR .................81 Philip McGough, Sonoma State University Leon Dunklin, Sonoma State University Duane Dove, Sonoma State University Proceedings of the International Academy for Case Studies, Volume 9, Number 1 Nashville, 2002 page iv Allied Academies International Conference PRICE WATERHOUSE V. HOPKINS: ARE GENDER STEREOTYPES ILLEGAL?..............................................83 Philip McGough, Sonoma State University NIGERIAN PACKAGED GOODS, LTD. .........................................85 D.K. Smith, Southeast Missouri State University SOUTHERN ELECTRIC OF THE CAROLINAS, INC.: A TWO-PERSON WORK RELATIONSHIP.................................91 Martha C. Spears, Winthrop University THE FALL OF ENRON: DID MANAGEMENT BURN THE EMPLOYEES? ...........................93 Neal F. Thomson, Columbus State University Olice Embry, Columbus State University C.A.W. CONSTRUCTION COMPANY: A PROPOSAL FOR DIVERSIFICATION...................................97 John J. Withey, Indiana University South Bend PROCESS ANALYSIS AND RISK ASSESSMENT IN A NOT-FOR-PROFIT ORGANIZATION: AN ASSURANCE SERVICES CASE.....................................................103 John M. Coulter, Western New England College Melissa S. Madden, Western New England College ARLISS INDUSTRIES, THE ERP JOURNEY ....................................105 Gregory P. Burgess, Volunteer State Community College Susan G. Wells, Tennessee Technological University F. Stuart Wells, III, Tennessee Technological University eCAMPUS.COM: THE BEGINNINGS ..........................................107 Steve Brown, Eastern Kentucky University Steve Loy, Eastern Kentucky University Joe Thomas, Middle Tennessee State University Authors’ Index..............................................................113 Nashville, 2002 Proceedings of the International Academy for Case Studies, Volume 9, Number 1 Allied Academies International Conference page 1 GROUND BREAKING NEWS INC. James J. Bagwell, Clayton College & State University Lisa R. Henry, Clayton College & State University CASE DESCRIPTION This case involves the budgeting process for a fictionalized television production company. This case is designed to provide the basic knowledge of the budgeting process and would be beneficial knowledge for any business major, whether they are directly involved in the actual preparation of the budget or they are indirectly involved by providing information for the budget process. For the student to successfully complete this case, only the basic accounting knowledge is necessary. This case has a difficulty level of two and is primarily designed for a principles level accounting class. However this case may also be expanded to include concepts such as: cost accounting (allocation of overhead), financial statement preparation, income tax return preparation, and the use of Excel spreadsheets. This case is designed to be taught in one class period and is expected to require, depending on desired outcome, approximately ten hours of outside preparation by the student. CASE SYNOPSIS Ground Breaking News Inc. has been in business since February 5, 2001. The business started by producing a medical based show to a national cable network which first aired on April 3, 2001. The company policy is to approve the following years budget by July 31st each year. On September 15, 2002, the company started providing a travel based show to a different network. The expenses incurred prior to September 2002 were needed to pre-produce some segments, to get file footage, and to finish the first two shows. The pilot budget was finished and approved on May 31, 2002. The CEO has been in negotiations with another network regarding producing a technology show. The contract was signed and the budget was finished and approved on June 28, 2002. The show is scheduled to air on March 29, 2003. The CEO determined after the second show was added that a staff assistant/office manager was needed. One was hired on September 2, 2002. With the addition of the third show, the CEO has decided to add a full time engineer, sales assistant, and staff assistant to the staff. The current staff assistant/office manager will be promoted of office manager in January 2003. The backup that will be provided includes: The 2002 general ledger The 2002 operating budget (including the 2002 salary spread) The 2002 capital budget The pilot budget for the travel show (including capital requirements) The pilot budget for the technology show (including capital requirements) The 2002 - 2001 budget variance with explanations Proceedings of the International Academy for Case Studies, Volume 9, Number 1 Nashville, 2002 page 2 Allied Academies International Conference Nashville, 2002 Proceedings of the International Academy for Case Studies, Volume 9, Number 1 Allied Academies International Conference page 3 TROPICAL TRENDS, INC. James J. Bagwell, Clayton College & State University CASE DESCRIPTION This case involves issues of business law for a fictionalized beach and surf supply store. The case is cast in a dynamic environment that allows students to be more excited about learning and applying business law concepts. This case is designed to provide students with the opportunity to recognize business law issues, analyze potential legal liability concerns, discuss possible dispute resolution options, and determine appropriate loss prevention strategies. This case is designed to provide an application of basic legal concepts in a business environment, as well as to provide an opportunity to develop legal reasoning skills. Knowledge and application of legal issue recognition and analysis would be beneficial knowledge for any business major, whether they are directly involved in a business law position or they are indirectly involved by working as a manager or employee of a company, large or small. For the student to successfully complete this case, only the basic business law knowledge is necessary. This case has a difficulty level of two and is primarily designed for a principles level