Astral Case Study
ASTRAL CASE STUDY FEEDBACK
MNGT 5650 MANAGEMENT & STRATEGY, SPRING 2, 2013
Introduction
‣ This case gives a good flavor of the challenges of a general manager, in particular when one is new to the job. The case explores the “parachuting in” of Sarah Conner, a venture-capitalist (BLL, 60% owner of Astral) employee, to take over the running of Astral (North America) following the sudden death of its long-time president (Maxwell). Astral is mostly a manufacturer of CD records for other labels, though Maxwell has expanded its own recording business (10% of revenues) across a range of musical genres. Astral has established a name for quality and innovation, but generallyavailable technology has become so reliable that quality no longer really serves as a differentiator in the industry. The first purpose of case studies is developing a better understanding through learning to apply appropriate and diverse tools/concepts leading to “better” answers increasing your probability of success. With the information provided make sure you 1. state the “facts”, 2. provide interpretation of these facts (also through use of concepts), and then 3. conclude. The latter two steps are often missing in case study reports. Also, structure is key. Some narration is not a problem, narration without structure definitely is a problem!
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Define the Context
‣ ‣ Defining the context is not synonymous to providing a summary of the case study. Based on what you have read state, interpret and draw conclusions. If you state the industry of Compact Discs is no longer differentiated but price is becoming the main competition issue, you need to indicate why this is relevant and what this implies (like: scale is of tremendous importance in this situation and if Astral does not find another way to differentiate itself, like developing the DVD, from competitors its future will look rather grim). If you state Astral’s formation of strategy resembles that of the entrepreneurial school residing in
MNGT 5650 MANAGEMENT & STRATEGY, SPRING 2, 2013
Introduction
‣ This case gives a good flavor of the challenges of a general manager, in particular when one is new to the job. The case explores the “parachuting in” of Sarah Conner, a venture-capitalist (BLL, 60% owner of Astral) employee, to take over the running of Astral (North America) following the sudden death of its long-time president (Maxwell). Astral is mostly a manufacturer of CD records for other labels, though Maxwell has expanded its own recording business (10% of revenues) across a range of musical genres. Astral has established a name for quality and innovation, but generallyavailable technology has become so reliable that quality no longer really serves as a differentiator in the industry. The first purpose of case studies is developing a better understanding through learning to apply appropriate and diverse tools/concepts leading to “better” answers increasing your probability of success. With the information provided make sure you 1. state the “facts”, 2. provide interpretation of these facts (also through use of concepts), and then 3. conclude. The latter two steps are often missing in case study reports. Also, structure is key. Some narration is not a problem, narration without structure definitely is a problem!
‣ ‣
Define the Context
‣ ‣ Defining the context is not synonymous to providing a summary of the case study. Based on what you have read state, interpret and draw conclusions. If you state the industry of Compact Discs is no longer differentiated but price is becoming the main competition issue, you need to indicate why this is relevant and what this implies (like: scale is of tremendous importance in this situation and if Astral does not find another way to differentiate itself, like developing the DVD, from competitors its future will look rather grim). If you state Astral’s formation of strategy resembles that of the entrepreneurial school residing in