journal of the international academy for case studies

230 Pages·2014·2.44 MB·English

by  Jim Carland

Volume 20, Number 5 Print ISSN: 1078-4950
Online ISSN: 1532-5822

JOURNAL OF THE INTERNATIONAL
ACADEMY FOR CASE STUDIES

Co-Editors

Herbert Sherman
Long Island University

Shih Yung Chou
University of Texas of the Permian Basin

The Journal of the International Academy for Case Studies is owned and published
by Jordan Whitney Enterprises, Inc. Editorial content is under the control of the
Allied Academies, Inc., a non-profit association of scholars, whose purpose is to
support and encourage research and the sharing and exchange of ideas and insights
throughout the world.
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Authors execute a publication permission agreement and assume all liabilities.
Neither Jordan Whitney Enterprises nor Allied Academies is responsible for the
content of the individual manuscripts. Any omissions or errors are the sole
responsibility of the authors. The Editorial Board is responsible for the selection of
manuscripts for publication from among those submitted for consideration. The
Publishers accept final manuscripts in digital form and make adjustments solely for
the purposes of pagination and organization.

The Journal of the International Academy for Case Studies is owned and published
by Jordan Whitney Enterprises, Inc, PO Box 1032, Weaverville, NC 28787, USA.
Those interested in communicating with the Journal, should contact the Executive
Director of the Allied Academies at [email protected].

Copyright 2014 by Jordan Whitney Enterprises, Inc, USA

Journal of the International Academy for Case Studies, Volume 20, Number 5, 2014
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EDITORIAL BOARD MEMBERS

Irfan Ahmed Thomas T. Amlie
Sam Houston State University Penn State University - Harrisburg
Huntsville, Texas Harrisburg, Pennsylvania
Ismet Anitsal Kavous Ardalan
Tennessee Tech University Marist College
Cookeville, Tennessee Poughkeepsie, New York
Lisa Berardino Thomas Bertsch
SUNY Institute of Technology James Madison University
Utica, New York Harrisonburg, Virginia
Steve Betts Narendra Bhandari
William Paterson University Pace University
Wayne, New Jersey North Brunswick, New Jersey
William Brent Gary Brunswick
Howard University Northern Michigan University
Washington, DC Marquette, Michigan
Wil Clouse Troy Festervand
Middle Tennessee State University Middle Tennessee State University
Murfreesboro, Tennessee Murfreesboro, Tennessee
Barbara Fuller Michael Grayson
Winthrop University Jackson State University
Rock Hill, South Carolina Jackson, Mississippi
Terrance Jalbert Marianne L. James
University of Hawaii at Hilo California State University, Los Angeles
Hilo, Hawaii Los Angeles, California
Marlene Kahla William J. Kehoe
Stephen F. Austin State University University of Virginia
Nacogdoches, Texas Charlottesville, Virginia
Marla Kraut Steve Loy
University of Idaho Eastern Kentucky University
Moscow, Idaho Richmond, Kentucky
Jeff Mankin Paul Marshall
Lipscomb University Widener University
Nashville, Tennessee Chester, Pennsylvania
James R. Maxwell Sujata Satapathy
State University of New York College at Buffalo Indian Institute of Technology
Buffalo, New York New Delhi, India
Harriet Stephenson Greg Winter
Seattle University Barry University
Seattle, Washington Miami Shores, Florida

Journal of the International Academy for Case Studies, Volume 20, Number 5, 2014
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TABLE OF CONTENTS

EDITORIAL BOARD MEMBERS .............................................................................................. III 

LETTER FROM THE EDITORS .............................................................................................. VIII 

SPEEDY DSL CORPORATION ................................................................................................... 1 
Leah Marcal, California State University, Northridge 
Richard Tontz, California State University, Northridge

NEW PRODUCT INNOVATION AT CHET’S FAN MANUFACTURING, INC. (CFM) ......... 7 
Jan Bell, Babson College 
Tony Wain, Babson College 
Shahid Ansari, Babson College

CIRQUE DU SOLEIL: AN INNOVATIVE CULTURE OF ENTERTAINMENT .................... 23 
Issam A. Ghazzawi, University of La Verne 
Teresa Martinelli-Lee, University of La Verne
Marie Palladini, California State University, Dominquez Hills

FAMILY FEUD AT JOHN BLAINE TRUCKING COMPANY, INC. ...................................... 47 
Leslie A. Toombs, Texas A&M University - Commerce 
Linda L. Autry, University of Houston – Victoria

TINY’S TINY PIES: PIE IN THE SKY....................................................................................... 61 
Robert M. Crocker, Stephen F. Austin State University
Marlene C. Kahla, Stephen F. Austin State University 
Kristan Royal Smith, Stephen F. Austin State University

THE GROWTH AND DECLINE OF THE NEW REVIVAL PENTECOSTAL CHURCH ...... 71 
Raymond J Elson, Valdosta State University 
Beverley J Alleyne, Belmont University

EB03 BANK OF NIGERIA.......................................................................................................... 77 
Basil Okoli, Baze University 
D.K. (Skip) Smith, Baze University

Journal of the International Academy for Case Studies, Volume 20, Number 5, 2014
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EXECUTIVE EXPRESS .............................................................................................................. 97 
Michael J. Pesch, St. Cloud State University 
Larry A. Logeman, Executive Express

BEARKAT GAMES’ CORPORATE TATTOO: A CASE FOR PERSUASION ..................... 111 
Traci L. Austin, Sam Houston State University 
Lucia S. Sigmar, Sam Houston State University

TECS TIME KEEPING FRAUD ............................................................................................... 115 
Robert Slater, University of North Florida 
Susie Infante, Texas A&M Corpus Christi

REAL ESTATE INVESTOR’S INC. ......................................................................................... 127 
Shelley Morrisette, Shippensburg University 
Louise Hatfield, Shippensburg University

ALABAMA AIR SHUTTLE: FIGHT OR FLIGHT .................................................................. 141 
Devon Bagwell, Samford University 
Noel Dowling, Samford University 
William Satterfield, Samford University 
Heather Williams, Samford University 
Charles Carson, Samford University

THE SOUTHEASTERN THEATER COMPANY .................................................................... 163 
Roger Gagnon, North Carolina A&T State University

CUSTOM CIRCUITRY INTERNATIONAL ............................................................................ 171 
Eric Kyper, Lynchburg College 
Leon Schimmoeller, Lynchburg College

MANAGERIAL CARROTS AND STICKS: ENCOURAGING STRATEGY
IMPLEMENTATION ................................................................................................................. 177 
John Leaptrott, Georgia Southern University 
J. Michael McDonald, Georgia Southern University 
Jerry W. Wilson, Georgia Southern University

Journal of the International Academy for Case Studies, Volume 20, Number 5, 2014
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PARK STERLING BANK: THE BEGINNING ........................................................................ 195 
Michael D. Evans, Winthrop University

ECAMPUS.COM: SITTING IN THE CATBIRD SEAT .......................................................... 205 
Stephen L. Loy, Eastern Kentucky University 
Steven Brown, Eastern Kentucky University 

Journal of the International Academy for Case Studies, Volume 20, Number 5, 2014
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LETTER FROM THE EDITORS

Welcome to the Journal of the International Academy for Case Studies, the official journal of the
International Academy for Case Studies. The IACS is affiliated with the Allied Academies. Both
are non profit associations of scholars whose purpose is to encourage and support the advancement
and exchange of knowledge, understanding and teaching throughout the world. The purpose of the
JIACS is to encourage the development and use of cases and the case method of teaching
throughout higher education. Its editorial mission is to publish cases in a wide variety of disciplines
which are of educational, pedagogic, and practical value to educators.

The cases contained in this volume have been double blind refereed, and each was required to have
a complete teaching note before consideration. The acceptance rate for manuscripts in this issue,
25%, conforms to our editorial policies. The Instructor’s Note for each case in this volume will be
published in a separate issue of the JIACS.

If any reader is interested in obtaining a case, an instructor’s note, permission to publish, or any
other information about a case, the reader must correspond directly with the Executive Director of
the Allied Academies: [email protected].

The Editorial Policy, background and history of the organization, and calls for conferences are
published on the Allied Academies web site. In addition, we keep the web site updated with the
latest activities of the Academy and all of the affiliates of the Allied Academies. Please visit our
site and know that we welcome hearing from you at any time.

Herbert Sherman
Long Island University

Shih Yung Chou
University of Texas of the Permian Basin

Journal of the International Academy for Case Studies, Volume 20, Number 5, 2014
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Journal of the International Academy for Case Studies, Volume 20, Number 5, 2014
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SPEEDY DSL CORPORATION

Leah Marcal, California State University, Northridge
Richard Tontz, California State University, Northridge

CASE DESCRIPTION

The primary subject matter of this case concerns the pricing decision of a service
firm, and the use of the appropriate economic model to analyze that decision. A comparison
of price-elasticity and cross-elasticity of demand highlights the market structure in which
the firm operates and thereby an understanding of how a price change will impact the
firm’s total profit. Secondary issues involve classifying the cost of the firm’s business
activities and allocating those costs by sales revenue.
The case has a difficulty level of three and is intended for use in junior-level
courses. It can be covered in three hours, including a class presentation by a student team.
The case requires a minimum of nine hours of outside preparation by students.
This case is designed for use in an upper-division, inter-disciplinary business
course. The purpose of the course is to enable students to apply the knowledge they have
gained in their lower-division, business core courses that include microeconomics,
financial accounting, and managerial accounting. Specifically, the case incorporates the
understanding of profit-maximizing pricing under monopoly and duopoly models of
competition, how price and cross-elasticity of demand are interpreted, and how cost data
can be organized for management decisions.

CASE SYNOPSIS

Students view the case through Susan, a recent business graduate, who has
struggled to find employment and lives with her parents. Susan is anxious to turn her paid
internship into a job. She interns for a local, Internet service provider, Speedy DSL. Speedy
has a profit margin that is below the industry average and faces strong competition from
Timely Cable in the local broadband market. Currently, the two firms (Speedy and Timely)
charge the same price for basic Internet connectivity that is similar in speed and reliability.
Another Speedy intern, Matt, uses an estimated monopoly demand schedule and Speedy’s
own cost data to argue that Speedy should raise its price. Speedy’s Marketing Director
asks Susan for an evaluation of Matt’s proposal. Susan has read industry reports with an
estimate of the cross-elasticity of demand between DSL price and Cable subscriptions.
Understanding that Timely’s gain of customers would be Speedy’s loss; students (placed
into Susan’s position) evaluate the impact of a price increase on Speedy’s profit in a
Journal of the International Academy for Case Studies, Volume 20, Number 5, 2014
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duopoly setting. Students must also categorize the cost of Speedy’s business activities and
show the breakdown of those costs against sales revenue.

CASE BODY

As she rides the bus to her internship with Speedy DSL, Susan Katz thinks back
over the last two years. When she walked at graduation with a B.S. in Marketing, she
imagined the walk was from college to a position with a marketing firm. Susan’s GPA was
good and she had excellent recommendation letters. Susan had served as an officer in the
college’s marketing association and felt her future was bright.
As the months passed by, with many applications and few interviews, she realized
that finding a job was a real challenge. The local unemployment rate was 11% and many
of her friends were still searching for work. Susan lived with her parents while looking for
work. Her Dad had turned their basement into a studio apartment. Susan worried about the
financial burden this placed on her folks.
But things were looking brighter. During the summer, Susan designed and
implemented the marketing plan for a charity golf tournament. Robert Baker, the
Marketing Director of Speedy DSL, was so impressed that he offered Susan a six-month,
paid internship. Speedy DSL is a local, Internet service provider.
Susan had loaded her office cubical with marketing, economics, and accounting
textbooks. After four months and a few committee projects, Susan felt she was doing well
and getting to know several people in the organization. After sitting at her desk, Susan
opens her laptop to review a report on the broadband market and Speedy DSL.

U.S. consumers purchase broadband or high-speed Internet access from a
communications company (e.g., cable, telephone, Internet service provider (ISP),
or satellite company) that provides a physical connection from a computer at the
consumer’s home to the company’s network. Broadband speeds vary with the type
of technology used (e.g., cable, digital subscriber line (DSL), satellite, wireless, or
fiber optic). Consumers are charged higher monthly fees for faster speeds.
Typically, the fastest speeds are delivered by fiber optic cable (e.g., Verizon FiOS).

In October 2010, nearly 85 million U.S. households had access to the Internet at
home. Of those, 48% have cable access; 35% have DSL; 9% have mobile; 5% fiber
optic; and 3% satellite (U.S. Census, 2010). Broadband infrastructure has been
deployed to more than 98% of all households. Yet, only 72% of households have
purchased broadband (NTIA, 2013). However, the number of broadband
connectivity purchases is expected to increase tremendously with the growth of on-
Journal of the International Academy for Case Studies, Volume 20, Number 5, 2014