In 1864 Henricus Laroche started making high-quality chocolate in his kitchen in Ooigem, Belgium. Henricus learned his trade at a famous chocolate shop in Paris, and he and his wife began to make chocolate in bars, wafers and other shapes soon after Henricus had returned to Belgium to start his own business. The Belgian people loved Laroche’s chocolate and the immediate success soon caused him to increase his production facilities. Henricus decided to build a chocolate factory in Kortrijk, a nearby city in the Flemish province West Flanders. With mass-production, the company was able to lower the per-unit costs and to make chocolate, once a luxury item, affordable to everybody. The Laroche Candy Company flourished, expanded its product lines and acquired related companies during the following decades. Within a century the company had become Belgium’s leading candy-manufacturer employing over 2,500 people. Today, The Laroche Candy Company is one of the biggest manufacturers of chocolate and non-chocolate confectionery products in Europe. Under the present leadership of Luc Laroche the company has become truly innovative. What’s more, the company has adopted a very proactive approach to marketing planning and is therefore a fierce competitor in an increasingly global marketplace. The number of products the company produces and markets has increased dramatically; at this moment there are more than 250 Laroche Candy items distributed internationally in bulk, bags, and boxes. Luc Laroche, born in 1946, is the fifth generation of his family to lead The Laroche Candy Company. He is the great-great-grandson of company founder Henricus Laroche and the current Chairman and CEO of the company. But Luc is nearing retirement. He has planned to stop working in two to three years. Whereas stepping back from power is a very difficult thing to do for a lot of people, it is an easy thing to do for Luc: He is looking forward to spending time with his grand-children and to driving his Harley Davidson across Europe. What’s more, he has never found the time to play golf, and he is planning to spend “three whole summers learning it” if necessary. And yet, even though ‘letting go’ is not a problem for Luc, he still has his worries about his imminent retirement. As in most family businesses, Luc’s two children spent their share of summers working for the company. Luc’s oldest son Davy has repeatedly worked for the accounting department whereas Davy’s younger brother Robert has infrequently worked in the field. However, they have never shown a serious interest in the business. Davy, who is 35, currently works as an associate professor of management accounting at a reputable university in Belgium. Robert, aged 32, lives in Paris and has been working as a photographer for the last ten years. About twelve years ago, Robert told his dad, "I know you'd like me to come in the business, but I've got my own path to travel." Luc recalls responding that he respects that and that he does not want Robert to feel constrained; “I just want you to be happy” is what he has told Robert on that particular occasion. Ever since this conversation with Robert, Luc has put his hopes on Davy. A few days ago, Luc has invited Davy to have dinner at the famous restaurant “In de Wulf” in Dranouter, Belgium to discuss the future of the Laroche Candy Company. He wants to talk about his retirement and a succession plan for the company with Davy, who has serious doubts about taking over the company. Davy knows that for his dad the company is his life and like his dad, he wants the company to be successful in the future; but he just does not know whether it is a good idea to take over from his father. In an effort to maintain a balanced perspective on the issue, Davy has done some research on it. Hence, he has become very familiar with statistics about the failure rate of family transitions. These statistics have triggered numerous concerns and fears about taking over the company from his father. Luc and Davy discuss the future of the company during a memorable dinner in Dranouter. Luc tells Davy that he wants his son to take over the company, but Davy explains that he has qualms. He brings up his doubts and fears and alternatives such as going public, selling to a strategic acquirer or investor, or selling to employees through an employee stock ownership plan. Luc hardly listens to Davy’s concerns and strikes a blow for family business. “History is full of examples of spectacular ascents of family business,” he said after the waiter has refilled his glass for the fourth time in just over an hour, “the Rothschilds, the Murdochs, the Waltons, and the Vanderbilts, to name only a few. The Rothschilds, for instance, not only accumulated the largest amount of private wealth the Western world has ever seen, they also changed the course of history by financing kings and monarchs. Did you know that they supported Wellington’s armies, which ultimately led to the defeat of Napoleon at Waterloo? I bet you didn’t.” Davy raised an eyebrow. “I didn’t. But what I do know”, he replied, “is that only fifty years after the death of Cornelius Vanderbilt, who created a fortune in railroads and shipping, several of his direct descendants were flat broke. Apparently the Vanderbilts had both a talent for acquiring and spending money in unmatched numbers.” Davy leaned in closer toward his father. “Seriously dad, I do believe that strong family values are very important but I also feel that they may place restraints on the development of the company. It is commonly known that familism in Southern Italy is one of the main reasons for the slower economic development of the south relative to the north.” Luc sighed and looked at his son. “So, what does this all mean?” “Well, I think that the key question is whether family firms evolve as an efficient response to the institutional and market environment, or whether they are an outcome of cultural norms that might be harmful for corporate decisions and economic outcomes”, Davy replied with a gentle smile. “Don’t you think so?” “I … um … I guess I do.” Luc smiled back at his son. “I am not sure that I understand what you mean, but it sounds great. Let’s throw some money at it and hire a consultant who knows something about this. I’ll call McKinsey first thing tomorrow morning. Cheers.” “Cheers dad”, Davy echoed lifting his glass. Two weeks later, Paul Thomas Anderson, a senior McKinsey consultant, put forward the following problem statement in a meeting with Luc Laroche: What are the implications of family control for the governance, financing, and overall performance of the Laroche Candy Company? QUESTIONS: 1. What is business research? 2. Why is the project that Paul Thomas Anderson is doing for The Laroche Candy Company a research project? 3. Which steps will Paul take now that he has clearly defined the problem that needs attention? 4. Luc Laroche has decided to hire an external consultant to investigate the problem. Do you think that this is a wise decision or would it have been better to ask his son Davy or an internal consultant to do the research project? 5. What can (or should) Luc do to assist Paul to yield valuable research results? 6. How can basic or fundamental research help Paul to solve the specific problem of The Laroche Candy Company? 7. Try to find relevant books, articles, research reports and this issue. Use, among others, electronic resources of your library and/or the internet.
> Describe the progressive learning model and discuss why this perspective is important when marketing to subcultures.
> How do you assign people to social classes, or do you at all? What consumption cues do you use (e.g., clothing, speech, cars, etc.) to determine social standing?
> What consumption differences might you expect to observe between families characterized as underprivileged versus those whose income is average for its social class?
> What are some of the obstacles to measuring social class in today’s society? Discuss some ways to get around these obstacles.
> Sears, JC Penney, and Walmart tried hard in recent years to upgrade their images and appeal to higher class consumers. How successful have these efforts been? Do you believe this strategy is wise?
> Go to www.maxlang.com. How much would you pay for a belt for casual or business wear? How much does Max Lang charge? Is Max Lang selling belts or status? How can the Max Lang website overcome problems such as sizing and the desire to personally see prest
> Should members of a religious group adapt marketing techniques that manufacturers customarily use to increase market share for their secular products? Why or why not?
> Geodemographic techniques assume that people who live in the same neighborhood have other things in common as well. Why do they make this assumption, and how accurate is it?
> How do religious subcultures affect consumption decisions?
> What roles do status symbols play in purchase decisions?
> How are Gen Yers different from their older brothers and sisters?
> What is cultural capital, and why is enrolling in an etiquette class a way to accumulate it?
> Ask students to use a product example (i.e., food products, automobiles) to illustrate how the marketer might promote to youths to take advantage of the influence they exert on family purchase decisions.
> What are boomerang kids?
> How does the worldview of blue-collar and white-collar consumers tend to differ?
> What are some of the problems we encounter when we try to measure social class?
> This material can be used to illustrate how reference groups also have status symbols. 1. Using the “4A’s” framework in Figure 12.1, analyze the considerations that went into the development of the Gillette Guard razor for the Indian market? 2. Are comp
> Charles Bradley is a Finance student who loves to play the stock market in his spare time. He likes the thrill of rapid price movements and he knows that if he can catch the right price to buy and sell he will make lot of money. Charles has a strong inte
> Given the situations below, (a). Discuss with reasons, whether they will fall into the category of Applied or Basic research, and (b). For scenario 1 explain with reasons, who will conduct the research. Scenario 1: Companies are very interested in acqui
> What is epistemology and why is it important to know about different perspectives on research and how it should be done?
> Academic researchers usually develop more complex and elaborate models than applied researchers. Discuss this statement.
> Develop a conceptual model for the scenario below. Incidence of smoking in movies has started to increase again, after having declined for several decades. According to the National Cancer Institute smoking is seen in at least three out of four contempo
> Discuss the following statement: The hallmarks of scientific research do not/cannot apply to inductive research.
> The exact purpose of a critical literature review depends on the research approach that is taken. Discuss this statement.
> When is applied research, as distinct from basic research, useful?
> For what specific purpose is Basic Research important?
> Why should a manager know about research when the job entails managing people, products, events, environments and the like?
> Give two specific instances where an external research team would be useful and two other scenarios where an internal research team will be deployed, with adequate explanations as to why each scenario is justified for an external or internal team.
> Research in behavioral finance has shown that overconfidence can cause investors to underreact to new information. What is the dependent variable in this case?
> A manager of an insurance company finds that “fear appeals” in commercials are positively associated with consumers’ behavioral intentions to insure their house. This effect is particularly strong for people with a high inherent level of anxiety.
> A marketing manager believes that selecting physically attractive spokespersons and models to endorse their products increases the persuasiveness of a message.
> An investor believes that more information increases the accuracy of his forecasts.
> A marketing manager believes that limiting the availability of a product increases product desirability. What is the dependent variable here?
> Avatars are virtual characters that can be used as representatives of a company that is using the Internet as a distribution channel. For instance, avatars can be used as shopping assistants, website guides, or as identification figures. A manager of an
> You are interested in how person–organization fit relates to employees’ affective commitment and intention to stay with an organization during the early stages of a strategic organizational change.
> Define the problem statement (the why and the what) in the following situation: Employee loyalty Companies benefit through employee loyalty. Crude downsizing in organizations during the recession crushed the loyalty of millions. The economic benefits of
> How would you go about doing literature survey in the area of corporate social responsibility?
> A typical examples of causal research questions is: “What is the effect of reward system on productivity?” And What is the problem here, according to the researcher? And what is a possible solution to the problem, according to the same researcher?
> Do the project assigned below, following the step‐by‐step process outlined: Compile a bibliography on any one of the following topics, or any other topic of interest to you, from a business perspective: (a). service quality; (b). product development;
> Offer a clearly focused problem statement in the broad area of corporate culture, job satisfaction or risk-seeking behaviors of investors.
> Describe a situation where research will help you as a manager to make a good decision.
> The problem definition stage is perhaps more critical in the research process than the problem solution stage”. Discuss this statement.
> For the topic you chose to work on for the project in Chapter 4, do the following: ● Go through the computer‐generated bibliography again. ● Define a problem statement that, in your opinion, would be most useful for researchers to investigate. ● Carry ou
> The Mobile Phone Company has been named as the most complained about mobile phone Company, narrowly beating 3G, which has shot to the top of the table as the worst landline provider. According to the latest figures from the regulator, Ofcom, the Mobile P
> 1. Develop a theoretical framework for the following situation and state one testable hypothesis in the null and the alternate. A school administrator is interested in finding how the threatened teachers’ strike can be averted. He knows that pay demands
> Several situations are given below. For each situation, respond to the following research design questions. a. What would be the nature of the study that would be designed - Exploratory, descriptive, or hypothesis-testing? b. Give reasons for your answer
> Make up three different situations in which motivation to work would be an independent variable, a mediating variable, and a moderating variable.
> A manager finds that off‐the‐job classroom training has a great impact on the productivity of the employees in her department. However, she also observes that employees over 60 years of age do not seem to derive much benefit and do not improve with such
> A recent study has investigated the effect of corporate social responsibility (CSR) on the market value of the firm. This study developed and tested a conceptual framework, which posits that (1) customer satisfaction mediates the relationship between CSR
> A production manager is concerned about the low output levels of his employees. The articles that he has read on job performance frequently mention four variables as being important to job performance: (1). skills required for the job, (2). rewards, (3
> Create a diagram to illustrate the relationships between the relevant variables in Exercise 5.9 and develop five different hypotheses.
> A store manager observes that the morale of employees in her supermarket is low. She thinks that if their working conditions are improved, pay scales raised, and the vacation benefits made more attractive, the morale will be boosted. She doubts, however,
> Failure to follow accounting principles causes immense confusion, which in turn creates a number of problems for the organization. Those with vast experience in bookkeeping, however, are able to avert the problems by taking timely corrective action. List
> You want to investigate the specific effects of specific emotions on customers’ behavioral responses to failed service encounters across industries. Discuss the design decisions that you as a researcher will make to investigate this issue, giving reasons
> You want to examine how exposure to thin or heavy models in advertisements influences a person’s selfesteem. You believe that the effect of exposure to models in advertisements depends on the extremity of the model’s thinness or heaviness. Discuss the de
> A foreman thinks that the low efficiency of the machine tool operators is directly linked to the high level of fumes emitted in the workshop. He would like to prove this to his supervisor through a research study. 1. Would this be a causal or a correlati
> Describe a situation where you used research in order to inform thinking, decisions, and/or actions in relation to a personal issue of interest such as buying a new mobile phone or going to the movies. Provide information about the purpose of your resear
> Explain giving reasons which is more important – applied or basic research.
> Why is it important to be adept in handling the manager-researcher relationship?
> Explain the processes of deduction and induction, giving an example of each.
> One hears the word research being mentioned by several groups such as research organizations, college and university professors, doctoral students, graduate assistants working for faculty, graduate and undergraduate students doing their term papers, rese
> Why do we still have transform the following problem statement into a researchable topic for investigation? The introduction of flexible work hours has created more problems than it has solved.
> Below are three scenarios. Indicate how the researcher should proceed in each case; that is, determine the following, giving reasons: a. Type of research question (exploratory, descriptive, or causal). b. The extent of researcher interference. c. The s
> Discuss the interrelationships among the research questions of a study (exploratory, descriptive, and causal), study setting (no contrived or contrived), researcher interference, research strategy, and time horizon of study.
> Why is the unit of analysis an integral part of the research design?
> A field study is often more useful than a lab experiment.” Discuss this statement
> Is a field study totally out of the question if one is trying to establish cause and effect relationships?
> Why is it important to consider basic research design issues before conducting the study and even as early as at the time of formulating the research question?
> What are the basic research design issues? Describe them in some detail.
> Daniel Lourenço is a Portuguese student of International Business. Born in Reguengos de Monsaraz, he is an active sportsman, excelling in football and swimming. As a young man Daniel developed a keen interest in aviation. He read everything he was able t
> For the following case: a. Identify the problem b. Develop a diagram representing the conceptual model c. Develop the hypotheses. Concerned about her current customer base, manager Andersen started to think of factors that might affect the attractiveness
> In recent decades, many service markets have been liberalized. For this reason, incumbent service firms are facing new competitors and must address customer switching. You are discussing the determinants of customer switching with a service firm manager.
> It is advantageous to develop a directional hypothesis whenever we are sure of the predicted direction. How will you justify this statement?
> There is an advantage to stating the hypothesis both in the null and the alternate; it adds clarity to our thinking about what we are testing. Explain.
> In an applied research context you do not need to explain the relationships between the variables in your conceptual model. Discuss this statement.
> Good models are complex. What’s more, a good model should include both moderating and mediating variables. Discuss this statement.
> Develop a theoretical framework for the following case. Once given, perks are extraordinarily hard to take away without sapping employee morale. The adverse effects of these cuts far outweigh the anticipated savings in dollars. Research has shown that wh
> Because literature survey is a time-consuming exercise, a good, in-depth interview should suffice to develop a theoretical framework. Discuss this statement.
> Why is appropriate citation important? What are the consequences of not giving credit to the source from which materials are extracted?
> After studying and extracting information from all the relevant work done previously, how does the researcher know which references, articles, and information should be given prominence in the literature survey?
> The (over)consumption of calories is one of the most important determinants of the obesity problem in Europe and the United States. Governments promote the consumption of healthy alternatives and try to support consumers in making healthy choices, for in
> What is the purpose of the literature survey?
> Should a researcher always find information on structural and job characteristics from those interviewed? Give reasons for your answer with examples.
> Why is it important to gather information on the background of the organization? Whys is it important to review the literature on your topic?
> Describe the functions of preliminary data gathering.
> Below is the gist of an article from BusinessWeek. After reading it: a. identify the broad problem area b. explain how you would proceed further. Two years ago, Electronic Arts, the second-largest U.S. video game company, ran on promises. Developers pitc
> Define ‘problem’ and provide an example of a problem you have encountered in your daily life. Discuss how you have used research to solve this problem.
> Discuss the most important differences between positivism and constructionism.
> If research in the management area cannot be 100 percent scientific, why bother to do it at all? Comment on this question.
> Discuss the following statement: Good research is deductive in nature.
> Is there a specific perspective on research that appeals to you? Why?
> The growing use of social network sites (such as Facebook) and online communities (such as for instance the Apple Computer community, the community of Harley-Davidson riders, and the community of Starbucks customers) provides exciting opportunities for o
> This case exercise covers many issues found in new product and service development projects. In particular, the case examines a new type of product that is to be launched in an uncertain and unpredictable market and also carries some development risks. A
> The example of the bullwhip effect shown in Table 7.2 shows how a simple 5 per cent reduction in demand at the end of supply chain causes fluctuations that increase in severity the further back an operation is placed in the chain. Table 7.2: (a). Using
> Described as having ʻrevolutionised the concept of sandwich making and eatingʼ, Prêt A Manger opened their first shop in the mid-1980s, in London. Now they have over 130 shops in UK, New York, Hong Kong and Tokyo. They say that their secret is to focus c
> The manager of a sweet shop decides to sample batches of sweets to check that the weight is reasonably consistent. She takes 9 samples, each with 10 bags. The data below shows the average mean weight for each sample and the weight range. What control lim
> An animal park in Amsterdam has decided to samples 50 visitors each day (n) to see how many visitors are from overseas. The data below is for the last seven days. If it decided to continue recording this data and plot it on a control chart for attributes
> A local shop has a relatively stable demand for tins of sweetcorn throughout the year, with an annual total of 1,400 tins. The cost of placing an order is estimated at £15 and the annual cost of holding inventory is estimated at 25 per cent of the produc
> The environmental services department of a city has two recycling services – newspaper collection (NC) and general recycling (GR). The NC service is a door-to-door collection service that, at a fixed time every week, collects old newspapers that househol
> Supplies4medics distributes a range of around 4000 SKUs of medical and safety item supplies across Europe. The case highlights increasing problems with inventory shortages and declining service levels, at the same time that total inventory levels were at
