Eric Hughes, advertising sales manager at Regional Broadcast Network (RBN), needs to avoid a takeover by increasing revenue from ad sales. Currently, ad plans are created for advertisers by combining ad spots from a fixed inventory of shows, making an effort to meet requirements such as a preferred split of prime/non-prime shows and views (impressions) in target demographics. Ad plans are priced using rate cards (RCs) based on industry norms, and are often discounted to meet budget requirements. Revenue is not usually optimized using this system because the RCs do not accurately reflect the value of inventory. In this case, which builds on "TV Advertising Pricing at Regional Broadcast Network (A)," Hughes uses the full historical sales dataset to conduct a multivariable regression analysis and better understand what drives the price of a plan. Students are challenged to create their own analysis and rationale, and to develop a guide for pricing each advertiser's plan. This case set presents emerging best practices in maximizing revenues in the ad industry. Students are given supplementary Excel workbooks containing sample data and use the Solver module and regression analysis to complete the assignment. This case set is suitable for use when teaching pricing analytics, decision analysis, statistics, quantitative analysis, or operations management. It may be used with a graduate, undergraduate, or executive education audience.
Eric Hughes, advertising sales manager at Regional Broadcast Network (RBN), needs to avoid a takeover by increasing revenue from ad sales. Currently, ad plans are created for advertisers by combining ad spots from a fixed inventory of shows, making an effort to meet requirements such as a preferred split of prime/non-prime shows and views (impressions) in target demographics. Ad plans are priced using rate cards (RCs) based on industry norms, and are often discounted to meet budget requirements. Revenue is not usually optimized using this system because the RCs do not accurately reflect the value of inventory. In this case, Hughes first creates a model that allocates available inventory (i.e., 30-second ad spots) across 10 representative plans. He performs an optimization calculation that recreates the sequential allocation that his salespeople generate when advertisers approach the network one at a time. Next, he creates a model that optimizes the allocation of ad spots across all plans, assuming all customers request their plans at the same time. Hughes realizes that the bid prices revealed in the sensitivity table of the second model can also be interpreted as the opportunity cost associated with one incremental ad spot in each show. When the sequential allocation model replaces RCs with bid prices, which are dynamically adjusted for remaining inventory and expected future demand as each new customer arrives, the resulting revenue is closer to the value produced by optimizing all plans simultaneously. In the B case, "TV Advertising Pricing at Regional Broadcast Network (B)," Hughes uses the full historical sales dataset to conduct a multivariable regression analysis and better understand what drives the price of a plan. Students are challenged to create their own analysis and rationale, and to develop a guide for pricing each advertiser's plan. This case set presents emerging best practices in maximizing revenues in the ad industry.
This note explains the building blocks of common financial performance metrics and show how operations affect those metrics. Return on assets (ROA) and return on equity (ROE) are two key measures of the financial performance of a firm. ROA captures the operational aspects of the firm while ROE captures the financing decisions of the firm.
This case presents the evolution of Nintendo's gaming technology and discusses the history of the video gaming sector over eight generations of releases. It illustrates how industry dynamics shift over time and how different phases of the competitive life cycle place different demands upon those firms that are all vying for the top position. The case provides history and context for students to discuss an age-old question: How do firms sustain a competitive advantage over time? Based on public sources and written from the perspective of Aya Kyogoku, the manager of Entertainment Planning and Development (EPD) Production Group No. 5, the case offers a launching point into a discussion of how different product strategies can become dominant at different times, an insight that has implications for future strategies. The case also includes sales, stock prices, consumer spending, and product release data that allow for calculations and discussions of the performance of the broader market. The case opens with Kyogoku pondering the future of the entire gaming industry-one facing explosive growth-and Nintendo's place within it. She reflects on the company's need to continue to experiment and innovate and wonders where Nintendo should focus its creative spirit going forward. The case is targeted to MBA students and executives who are building a foundation for analyzing and developing competitive strategies. It is used in the required core Strategy course at the Darden School of Business, where it is employed to highlight industry evolution and the changing nature of competitive dynamics within an evolving context. It would also be suitable for any course on disruptive strategy or digital transformation.
The ability to achieve product-market alignment (PMA) differentiates businesses that will thrive from those that will fail. Yet many find it difficult to create-and sustain-products that continuously generate value, even as their markets change. Traditionally, managers seeking to develop new products or reexamine current offerings have relied on frameworks that compare customer views on the desirability of various product features to the financial potential of those features. This note expands this common approach to explicitly include the consideration of operational resources and capabilities. This includes the resources needed to develop the product or service and to deliver it. An organization's operational capabilities can dictate whether, how, and which potential new products can be built, so it is important to understand the interplay among marketing, finance, and operations when developing new products or refreshing existing ones. The framework in this note is useful both when developing new products and reexamining existing offerings. This note can stand alone, but works well when used with a case, ""Product Development at StubHub: Don't Stop Believin'"" (UVA-OM-1705), that explores a company's efforts to innovate and create new value for its customers.
Arnie Katz, chief product and technology officer at StubHub (SH), was helping to lead a contest intended to result in innovative and valuable new ideas. Product managers presented more than 100 new business initiative proposals to create new value for customers and provide additional revenue streams and differentiation opportunities. The secondary-ticket (resale) market in the United States was becoming increasingly fragmented, and SH was losing market share. It was imperative to move SH from being a trusted platform for conducting ticket-resale transactions to becoming an integral part of fans' experience of live events. This case is intended to be used in conjunction with a technical note on product-market alignment (PMA): ""Product-Market Alignment"" (UVA-OM-1706). Katz and his teams conduct successive rounds of investigation and data gathering across the three dimensions of PMA: defining the customer need, identifying business value, and evaluating operational capabilities. This case also presents a bridge between high-level operations strategy and a more granular discussion of process capabilities. Agile software development is discussed. This case is suitable for operations-management classes focusing on Agile, scale-up, product and project management, emerging technology, and new product development. It can be used with a graduate, undergraduate, or executive education audience.
This case contains two briefs, one for each person in a two-party negotiation. They are relatively short in length and can be read in class just prior to a mock negotiation. This learning activity is appropriate for teaching negotiations skills to a broad audience, including undergraduate and graduate business school students, adult learners in a variety of settings, and in a corporate university.
This case contains two briefs, one for each person in a two-party negotiation. They are relatively short in length and can be read in class just prior to a mock negotiation. This learning activity is appropriate for teaching negotiations skills to a broad audience, including undergraduate and graduate business school students, adult learners in a variety of settings, and in a corporate university.
This case uses Apple Inc. (Apple) and its Mac line of personal computers (PCs) to allow for an analysis of competitive positioning and the building of sustainable competitive advantage. In spring 2020, as Apple evolves its various product offerings, a product manager at Apple must think about how the Mac fits into its broader product portfolio. What is the future for desktops and laptops broadly and the Mac specifically? The case facilitates an exploration of Apple's underlying capabilities and broader market dynamics, in the face of uncertainty over the industry's future direction, and it highlights the way in which Apple made deliberate strategic choices for the Mac that have worked to alleviate the typical competitive pressures of the laptop industry. The case provides a historical summary and an overview of the current forces in the PC industry, including market-share trends, mobile computing, cloud computing services, the Mac portfolio of products, and competitors. The case offers the opportunity to conduct a five forces analysis as well as explore to competitive advantage and market position. Crucially, the case highlights the possibility of carving out a valuable competitive position even in an industry with difficult competitive dynamics. This case is used at the University of Virginia Darden School of Business in "Strategic Thinking and Action," a required course in the first-year core curriculum of the MBA and EMBA programs, and the students' introduction to the discipline of strategic management. This case can be used to introduce or build upon the five forces framework and connect theory with action.
This case provides a minimum threshold and a range of value for a contract for janitorial services in an office building. A variety of facts are presented that negotiators can choose to pay more or less attention to when planning and conducting their negotiation. Mitchell, a shift supervisor, has been temporarily empowered to conduct the negotiation on behalf of his supervisor, Robert Eckhart, who is out sick. Jim Evans, the sales representative from Philly Cleans, is attempting to preserve his company's typical 25% profit margin, which is 10% above the industry norm of 15%. A contingency agreement is a possibility, which would likely take the form of a delivery reduction in the average price per room if in fact the average size of the rooms in this renovated office building is actually significantly smaller than the average size of rooms in newly constructed office buildings. This case contains two roles, one for each person in a two-party negotiation. They are relatively short in length and can be read in class just prior to a mock negotiation. This learning activity is appropriate for teaching negotiations skills to a broad audience, including undergraduate and graduate business school students, adult learners in a variety of settings, and in a corporate university.
B case to case UV8090. This case provides a minimum threshold and a range of value for a contract for janitorial services in an office building. A variety of facts are presented that negotiators can choose to pay more or less attention to when planning and conducting their negotiation. Mitchell, a shift supervisor, has been temporarily empowered to conduct the negotiation on behalf of his supervisor, Robert Eckhart, who is out sick. Jim Evans, the sales representative from Philly Cleans, is attempting to preserve his company's typical 25% profit margin, which is 10% above the industry norm of 15%. A contingency agreement is a possibility, which would likely take the form of a delivery reduction in the average price per room if in fact the average size of the rooms in this renovated office building is actually significantly smaller than the average size of rooms in newly constructed office buildings. This case contains two roles, one for each person in a two-party negotiation. They are relatively short in length and can be read in class just prior to a mock negotiation. This learning activity is appropriate for teaching negotiations skills to a broad audience, including undergraduate and graduate business school students, adult learners in a variety of settings, and in a corporate university.
This case contains two roles, one for each person in a two-party negotiation. They are relatively short in length and can be read in class just prior to negotiating. This learning activity is appropriate for teaching negotiation skills to a broad audience, including undergraduate and graduate business school students, adult learners, and in corporate university settings. At first glance, there is no immediate resolution to the negotiation. A couple is attempting to qualify for an apartment lease, and based on a percentage of guaranteed salary, they do not qualify. Students should learn that only by asking probing questions and seeking to understand more about one another's assets and interests can the landlords and potential renters identify a workable solution.
This case contains two roles, one for each person in a two-party negotiation. They are relatively short in length and can be read in class just prior to negotiating. This learning activity is appropriate for teaching negotiation skills to a broad audience, including undergraduate and graduate business school students, adult learners, and in corporate university settings. At first glance, there is no immediate resolution to the negotiation. A couple is attempting to qualify for an apartment lease, and based on a percentage of guaranteed salary, they do not qualify. Students should learn that only by asking probing questions and seeking to understand more about one another's assets and interests can the landlords and potential renters identify a workable solution.
This case contains two briefs, one for each person in a two-party negotiation. They are relatively short in length and can be read in class just prior to a mock negotiation. This learning activity is appropriate for teaching negotiations skills to a broad audience, including undergraduate and graduate business school students, adult learners in a variety of settings, and in a corporate university.
This case contains two briefs, one for each person in a two-party negotiation. They are relatively short in length and can be read in class just prior to a mock negotiation. This learning activity is appropriate for teaching negotiations skills to a broad audience, including undergraduate and graduate business school students, adult learners in a variety of settings, and in a corporate university.