INSTRUCTIONSAs you answer the questions associated with each case study assignment, ensure that youthoroughly address change concepts and theories relevant to the case. In addition, be sure toaddress how a leader or the leadership within the organization should appropriately respond inthis situation. Utilize textbook, 2 peer-reviewed journal articles, and Biblical concepts to supportyour responses. Ensure that you abide by current APA formatting to include font, margins,spacing, citations and properly formatted title page and references page. Please see the CaseStudy Assignment Example for guidance which can be found on the respective assignmentpages. Case assignment lengths will vary.Case Study: Role of Vision at Mentor Graphics Assignment (Exercise 6.3, pp. 202-203)As you answer the questions associated with this case study, ensure that you thoroughly addresschange concepts and theories relevant to the case. In addition, be sure to address how a leader orthe leadership within the organization should appropriately respond in this situation. Utilizetextbook, 2 peer-reviewed journal articles and Biblical concepts to support your responses. Case Study: Getting Boeing Back in the Air Assignment (Exercise 10.2, pp. 344-346)As you answer the questions associated with this case study, ensure that you thoroughly addresschange concepts and theories relevant to the case. In addition, be sure to address how a leader orthe leadership within the organization should appropriately respond in this situation. Lorenzo Larkin
Entrepreneurship BUSI 335-03
Liberty University
Peter James
March 25, 2021
2
1. To what extent do you sense that Diana Nelson got up to speed quickly on the dynamics
of the toy industry when she took over Kazoo & Company in 1998? What impact would
it have had on the ultimate success of Kazoo if Nelson had spent more time initially
focused in the specifics of her business (i.e., store layout, hiring personnel, placing ads
in local newspapers, writing press releases, setting up the accounting system, and so on)
rather than gaining a complete understanding of the toy industry as part of her work to
carefully develop a business plan?
With ruling out the other options such as fast food and flower shops she was able to see and
find a niche in the industry that could be thrived on and flourish within the community. She
knew that having a small independent toy store would be more of a challenge with the larger
competitors out there that she had with Walmart, Target and Toys “R” Us with her positive
outlook to outthink the big toy stores she would be able to see where they were not. With
looking into the industry further rather than starting off from scratch with a brand new
company she was able to see what they had and offered to the community. She was able to
offer to the vendors’ one on one with the consumer as well as offer speech therapists and
other special needs doctors to come in with their patients to try out and see what toys worked
well for them. As well as allow the employees to learn what would be best for another
customer whose child may have that same need.
2. When she first bought the store, do you think that Nelson could have convinced an
investor that Kazoo & Company could successfully compete against the likes of giants
such as Walmart, Target, Toys “R” Us and Amazon.com? If not, who needed to believe
that the business plan would work? How does an entrepreneur’s level of belief in his or
her own business plan affect how successful the business is, particularly in the early
years?
She could have convinced an investor that the company could successfully compete against
the larger competitors in the industry. With having a well-defined business plan and showing
her own passion for the business, she could have gone thru a few investors before one
decided to invest with her. If she could not get an investor she would have to have a lot of
belief in the company and what potential it could have. With her investment into the
3
company of cashing out her retirement accounts, putting $25,000 on credit cards, borrowing
money from her father and set up $500,000 SBA-guaranteed bank loan, she put a lot on the
line herself to invest within a company.
An entrepreneur’s belief within their own idea can be the standing factor if the company will
survive or not. Not only do you have to have investors to help out financially but you have to
believe in what you are selling. If you feel that what you are selling is nothing that great and
you feel it will be mediocre than that is all it will be. Having the passion and drive behind
what you are selling helps it to be something more as we saw in the YouTube video, from
idea to business.
3.
Based on the information contained in the case, write the one-page executive summary
of Kazoo’s original business plan.
Company
Kazoo Toys was founded in 1980 in Denver, Colorado as one of the largest brick and mortar
stores in the country. In 1998 Diana Nelson purchased the business with a loan thru the Small
Business Administration. Kazoo Toys brings to the table the opportunity for children to learn
by selling educational, nonviolent toys to children from birth to 12-year-old children. Kazoo
Toys offers the unique toy that is not seen in other stores such as Toys “R” Us and Target.
Products
Kazoo Toys goal within the Toy Industry is to bring not only the products but the atmosphere
of home to the customer themselves. Kazoo Toys offers: teaching, design, customer service,
specialty and appearance.
•
Teaching – The store welcomes professionals such as speech therapists; to bring their
patients into the store, to play with them and identify special toys that might help their
progression.
4
•
Design – The layout of the store is small but it offers smaller more intimate departments
that focus on the toys themselves.
•
Customer Service – Focus intently on the customer with offers of free parking and giftwrapping.
•
Specialty – Selling of educational, nonviolent toys to children birth to 12-year old
children.
•
Appearance – the inventory is freshened up so that the customer sees new product on the
shelf regularly.
4. What is drop shipping? What are the advantages and the risks for a company like
Kazoo & Company to engage in drop-shipping arrangements with its vendors?
Drop shipping is the moving of goods from the manufacturer directly to the retailer without
going through the usual distribution channels. For Kazoo Toys the advantages are that she
creates a relationship with the vendors directly and will have insight on what other toy stores
are purchasing to sell inside their stores. Allowing the vendors to show new toys in her
location first and being able to have a lower inventory need. One of the risks could be that
they may share what her store is doing to the competition and not only her store. Not being
able to get the toys fast enough for the customers that are interested in purchasing it.
5
References
Franchise Help (2015). Kazoo & Company Toys Franchise. Franchise Help. Retrieved March
23, 2015, from https://www.franchisehelp.com/franchises/kazoo-company-toys/
Merriam, G. & Merriam, C. (2015) Merriam-Webster Dictionary.
Barringer, R. & Ireland, R. (2012). Entrepreneurship Successfully Launching New Ventures. NJ:
Pearson Education, Inc.
Case Study Grading Rubric | BUSI335_B01_202330
Criteria
Components
Support
Citations
Ratings
Points
10 to >8 pts
8 to >6 pts
6 to >0 pts
0 pts
Advanced
Proficient
Developing
Not
Present
All major components of
the question(s) posed are
answered.
Some major
components of the
question(s) posed are
answered.
Limited major
components of the
question(s) posed are
answered.
60 to >53 pts
53 to >41 pts
41 to >0 pts
0 pts
Advanced
Proficient
Developing
Not
Present
Major points and
responses are mastered
and supported by the
following: The response
contains a thoughtful
analysis (considering
assumptions, analyzing
implications,
comparing/contrasting) of
question(s) posed in the
case assignment;
Appropriate rationale is
given as a solution or
recommendation; The
rationale is supported by
appropriate resources (not
just that the resources are
used, but that they are
used effectively); and
points are substantiated
with little to no opinions
being unsupported.
Examples are provided, as
appropriate.
Major points and
responses meet the
standard as follows:
The response contains
analysis (considering
assumptions, analyzing
implications,
comparing/contrasting)
of question(s) posed in
the case assignment;
Some rationale is given
as a solution or
recommendation; The
rationale is supported
by some resources (not
just that the resources
are used, but that they
are used effectively);
and points are
substantiated but there
is some opinion being
unsupported. Limited
examples.
Major points and
responses lack the
standard required for
this subject area: The
response contains
limited analysis
(considering
assumptions, analyzing
implications,
comparing/contrasting)
of question(s) posed in
the case assignment;
Limited rationale is
given as a solution or
recommendation; The
rationale is rarely
supported by
resources (not just that
the resources are
used, but that they are
used effectively);
points and opinions are
unsubstantiated. No
examples.
10 to >8 pts
8 to >6 pts
6 to >0 pts
0 pts
Advanced
Proficient
Developing
Not
Present
Required research
materials are used and met
(at least 2 peer-reviewed
journal articles, the course
textbook, and the Bible).
Required research
materials are not quite
met (at least 2
peer-reviewed journal
articles, the course
textbook, and the
Bible).
Required research
materials are lacking
(at least 2
peer-reviewed journal
articles, the course
textbook, and the
Bible).
10 pts
60 pts
10 pts
Case Study Grading Rubric | BUSI335_B01_202330
Criteria
Page Length
Ratings
Points
10 to >8 pts
8 to >6 pts
6 to >0 pts
0 pts
Advanced
Proficient
Developing
Not
Present
Page length meets
requirement for the
applicable case
assignment.
Page length does not
quite meet the
requirement for the
applicable case
assignment.
Page length is lacking
for the applicable case
assignment.
8 to >6 pts
6 to >0 pts
0 pts
Advanced
Proficient
Developing
Not
Present
Student masters proper
spelling, grammar, and
current APA format.
Student meets the
standard for proper
spelling, grammar, and
current APA format.
Student lacks in proper
spelling, grammar, and
current APA format.
Spelling/Grammar 10 to >8 pts
10 pts
10 pts
Total Points: 100
5/21/23, 4:42 PM
Linking Vision to Change: Three Debates
EXERCISE 6.3
The Role of Vision at Mentor Graphics
LO 6.4
As you read this case, consider the following questions:
1. How would you describe the way vision was used at Mentor
Graphics?
2. Did it strengthen or weaken the company? How? Why?
3. Of the reasons discussed in this chapter concerning why visions
fail, which are applicable to Mentor Graphics?
4. What is your assessment of the vision content and the process
through which it was introduced in the Mentor Graphics
context? What lessons emerge from your assessment?
5. Based on what happened at Mentor Graphics, what are the
implications for the three debates discussed in this chapter:
whether vision drives change or emerges during change;
whether vision helps or hinders change; and whether vision is
an attribute of heroic leaders or heroic organizations?
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-985e8d04bc4340ba9371ebffbc99bd9e
1/3
5/21/23, 4:42 PM
Linking Vision to Change: Three Debates
6. Of the six change images outlined in table 6.1, which images
of vision can be applied to this case study? What lessons
emerge from this?
Founded in 1981, Mentor Graphics (now Mentor, a Siemens
Business) is a U.S. electronic design automation business. It was
acquired for $4.5 billion by the German multinational Siemens in
2017 and had revenues of $3 billion in 2018. According to
company president Gerard Langeler, the role of vision was
important from the beginning. The company started with an
unarticulated vision to “Build Something That People Will Buy.” On
this basis, they spent several months interviewing potential
customers and designing a computer-aided engineering
workstation product. At the same time, a competitor, Daisy
Systems, was engaged in the same task and, in the early years,
outcompeted Mentor Graphics. Eventually, “Beat Daisy” became
the new vision, driven by the need to survive as a business.
By 1985 Mentor’s revenues were higher than Daisy’s; their vision
had been realized. The company continued to grow despite the
recession, but suffered from typical growth problems, including
decline in product quality, and problems of internal company
coordination. Stock value also suffered, and a number of staff
approached Langeler seeking a new vision for the company.
Page 203
The new vision was developed based on “Six Boxes,”
which represented the six different businesses in which the
company sought market leadership. The “Six Boxes” became a
company mantra, but in the late 1980s, one of the businesses—
computer-aided publishing—was not paying dividends. However,
the fact that it constituted one of the “Six Boxes” meant that they
could not shut it down and be left with a “Five Boxes” vision. In
this case, the existence of the vision disrupted the ability to make
sound financial judgements. It also stopped them from moving
more quickly to using Sun platforms, something they thought was
too conventional for them.
A new vision was developed—the “10X Imperative”—that mirrored
the push other companies were making toward quality through
six-sigma and other similar quality programs. However, customers
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-985e8d04bc4340ba9371ebffbc99bd9e
2/3
5/21/23, 4:42 PM
Linking Vision to Change: Three Debates
did not really understand the new vision. It was too abstract and
elusive.
In 1989, yet another vision emerged: “Changing the Way the
World Designs Together.” In retrospect, Langeler depicts this
vision as “the final extension of vision creep that began with Six
Boxes.” It was very grand and had little to do with the actual
businesses in which Mentor Graphics operated, including the
development of its new 8.0 generation of software.
The realization, by the early 1990s, that the company’s vision
detracted from what the company was actually trying to achieve
led to the dumping of the vision and its replacement with one that
echoed the early beginning of the company: “Our current short-,
medium-, and long-term vision is to build things people will buy.”
This was seen as a more pragmatic vision for a company that had
lost its way, caught up in a cycle of visions that were increasingly
irrelevant to the core business and that inhibited their ability to
make sound business decisions.
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-985e8d04bc4340ba9371ebffbc99bd9e
3/3
5/21/23, 4:46 PM
Contingency Approaches
EXERCISE 10.2
Getting Boeing Back in the Air
LO 10.2–10.5
As you read this case, consider the following questions:
1. Can organizational culture be blamed for plane crashes? Will
those crashes prompt Boeing to change its culture, or could
they be a barrier to culture change?
2. With hindsight, moving the top-management team to Chicago
looks like a mistake. But how do you assess the reasoning
behind that move? Was the explanation a good one?
3. To get Boeing “back in the air,” what will be the priorities of
David Calhoun, the new chief executive? What steps do you
think he will need to take to implement “deep culture
redesign”?
4. Check your online news sources and bring this case history up
to date. Has David Calhoun been able to change the culture at
Boeing? Have there been any more accidents? What is your
assessment of David Calhoun’s change leadership?
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-68c9c240c61d493885b3a8ca33da37f4#data-uuid-dcf36014b9574011baadb642…
1/5
5/21/23, 4:46 PM
Contingency Approaches
The American company Boeing makes airplanes, rockets, Page 344
satellites, telecommunications equipment, and missiles.
Defense production is based in St. Louis, Missouri, and the
aerospace business is in Long Beach, California. Passenger jets
are made in Seattle, Washington, on the northwest coast, where
the company’s 40,000 engineers are based. Boeing is one of
America’s biggest exporters. A million people work either for
Boeing or for one of its suppliers, and it has been described as
“too important to fail” (McNulty and Marcus, 2019, p. 2). Boeing’s
main competitor in the passenger jet market is Airbus; other
competitors include Lockheed Martin, Northrop Grumman,
Raytheon, General Dynamics, SpaceX, BAE Systems, Bombardier,
Embraer, and Loral Space & Communications.
Boeing’s new 737 Max aircraft was introduced in 2017. In October
2018, a Lion Air Boeing 737 Max crashed, killing 189 people. Five
months later, in March 2019, an Ethiopian Airlines 737 Max
crashed, killing 157 people. Investigators found that the plane’s
new Maneuvering Characteristics Augmentation System (MCAS)
automatically forced the aircraft to stall and nosedive. This system
had been omitted from flight manuals and crew training. The U.S.
Federal Aviation Authority (FAA) grounded the 737 Max. Boeing’s
reputation was damaged. But chief executive Dennis Muilenburg
decided to keep making the 737 Max, to demonstrate confidence
in the plane, even though they could not be sold. Boeing fired
Muilenburg at the end of 2019, and David Calhoun took over as
CEO.
To understand how this could have happened, we have to go back
to 1997, when Boeing acquired McDonnell Douglas, a competitor
with a “finance first ethos.” Boeing took on many McDonnell
Douglas executives including their chief executive, Harry
Stonecipher, who was known for his aggressive cost cutting. In
2001, Boeing’s chief executive and then president, Phil Condit and
Harry Stonecipher, decided to put some distance between the
company’s 500 senior management and staff and the planemakers and moved the headquarters to Chicago—2,000 miles
from Seattle. They explained that senior management was being
drawn into day-to-day operational decisions when they were so
close to the manufacturing base. In a large, modern, multinational
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-68c9c240c61d493885b3a8ca33da37f4#data-uuid-dcf36014b9574011baadb642…
2/5
5/21/23, 4:46 PM
Contingency Approaches
company, they felt that senior executives should not have such
contact with engineers. Stonecipher said, “When people say I
changed the culture of Boeing, that was the intent, so that it’s run
like a business rather than a great engineering firm. It is a great
engineering firm, but people invest in a company because they
want to make money” (Useem, 2019). Stonecipher became chief
executive of Boeing in 2003 (but was forced to resign in 2005
following an improper relationship with a female executive).
The previous close proximity of managers and engineers meant,
however, that senior executives had a good understanding of
engineering issues. They “spoke the language of engineering and
safety as a mother tongue,” and they could see for themselves
what was happening. As Useem (2019) points out, “The present
737 Max disaster can be traced back two decades—to the moment
Boeing’s leadership decided to divorce itself from the firm’s own
culture.” With Stonecipher as president, the new slogans became
“a passion for affordability” and “less family, more team.” One
aerospace analyst said that “You had this weird combination of a
distant building with a few hundred people in it and a nonengineer with no technical skills whatsoever at the helm.” In other
words, “a company once driven by engineers became driven by
finance” (Useem, 2019).
Signalling the shift to a “shareholder-first culture,” between 2014
and 2019, Boeing spent $43.4 billion on stock buybacks, and only
$15.7 billion on research and development for commercial
airplanes (Catchpole, 2020, p. 56). This culture placed short-term
rewards to shareholders ahead of engineering decisions and
longer-term strategy. Boeing’s board even approved a further $20
billion buyback in December 2018, two months after the first 737
Max crash (but that decision was later reversed).
Page 345
The immediate causes of the 737 Max crashes were
technical—faulty software. But other factors had played a role. In
the interests of cost and time to market, Boeing had decided to
modify the 737 rather than design a new aircraft from scratch. To
avoid regulatory delays, Boeing maintained that no additional pilot
training was required for the 737 Max. Boeing engineers were
surprised when some software development tasks (not specific to
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-68c9c240c61d493885b3a8ca33da37f4#data-uuid-dcf36014b9574011baadb642…
3/5
5/21/23, 4:46 PM
Contingency Approaches
MCAS) were outsourced to college graduates employed by an
Indian subcontractor in Seattle earning $9 an hour. Ed Pierson, a
former Boeing manager, claimed that, before the fatal crashes,
the 737 Max had experienced more than a dozen other safety
incidents. Pierson said, “Something happened in the translation
from, ‘let’s build a high-quality safe product’ to ‘let’s get it done
on time’” (Diss, 2020). There was pressure on 737 engineers and
test pilots and also a lot of pressure on production employees.
Pierson saw tired workers doing jobs for which they were not
trained, and making mistakes. He asked management to shut
down the 737 factory, but they refused. The software failures
were thus symptoms of a wider management problem.
In March 2020, the House Transportation Committee, of the U.S.
Congress, released its preliminary findings following a year of
investigation into the 737 Max crashes. Concluding that these
tragic accidents were due to multiple factors, the Committee’s
report focused on five issues:
The implementation of aggressive cost cutting and excessive
pressure on employees to maintain the production pressure,
due to competition from Airbus.
Boeing’s faulty assumptions about critical technologies, and the
MCAS system in particular, which relied on a single sensor and
was not classed as a safety-critical system.
Boeing’s culture of concealment, withholding critical information
from the FAA, customers, and pilots.
Conflicts of interest among Boeing employees who were
authorized to carry out aviation safety certification work on
behalf of the FAA.
Boeing’s influence on the FAA’s oversight; FAA management
rejected safety concerns raised by their own experts.
The House Transportation Committee (2020, p. 13) concluded,
“These preliminary investigative findings make clear that Boeing
must create and maintain an effective and vigorous safety culture
and the FAA must develop a more aggressive certification and
oversight structure to ensure safe aircraft designs and to regain
the confidence of the flying public.” The focus on finance had
changed the relationships between Boeing management and
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-68c9c240c61d493885b3a8ca33da37f4#data-uuid-dcf36014b9574011baadb642…
4/5
5/21/23, 4:46 PM
Contingency Approaches
engineers: “It was the ability to comfortably interact with an
engineer who in turn feels comfortable telling you their
reservations, versus calling a manager 2,000 miles away who you
know has a reputation for wanting to take your pension away. It’s
a very different dynamic. As a recipe for disempowering engineers
in particular, you couldn’t come up with a better format” (Useem,
2019). Boeing’s “moral compass” was broken, and the focus on
“making the numbers” put quality and safety at risk. McNulty and
Marcus (2019, p. 4) claim that “Boeing should engage in a deep
culture redesign process.” Edmondson (2019) argues, “What’s
required is more than operational fixes. It is nothing less than a
full organizational culture change.”
Page 346
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-68c9c240c61d493885b3a8ca33da37f4#data-uuid-dcf36014b9574011baadb642…
5/5
5/21/23, 5:07 PM
Title Page
Managing
Organizational
Change
A Multiple Perspectives Approach
Edition
Fourth
Ian Palmer
Richard Dunford
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-08de4b75e89649be828630edd82cedb3
1/2
5/21/23, 5:07 PM
Title Page
David A. Buchanan
https://prod.reader-ui.prod.mheducation.com/epub/sn_3fab/data-uuid-08de4b75e89649be828630edd82cedb3
2/2