Case Study - Malls of America - a Vanishing Behemoth
Malls used to be THE gathering place. You could shop, dine, go to the movies - even ride a roller coaster (at Mall of America) - now they are sitting vacant and decaying. What happened?
Was it online shopping (why go shopping when you can order merchandise to come to YOU)?
Myspace and Facebook (why leave the comfort of your couch to meet-up with friends)?
Were the retailers responsible for bringing traffic to the mall? Or the mall responsible for bringing traffic to the retailers?
Examine these and other weighty questions that focus on:
- Finance
- Competition
- Risk
- Forecasting
Download the handout here and put it to use in your next leadership meeting or workshop.
If you'd like other case studies, just filter for "case study" in the lower right of this page.
UPDATE: As of the end of the first quarter of 2019, six-thousand retail locations were set to (or already had) closed in America - more than in ALL of 2018.
Case Study: Teavana - wrong market? wrong time? wrong selling strategy?
In 2017 Starbucks announced it was closing all of its US based Teavana(R) retail locations (close to 400). It sounds like a product / brand in trouble - but is it? Read and discuss our Case Study look at Teavana which addresses numerous business factors such as #strategy, #risk, #socialtrends and more.
How Case Studies Aid in Teaching Thinking
What is a Case Study?
Before we jump in to the value of using case studies to teach thinking, it’s prudent to define exactly what it is we are talking about. Case studies are a way to present content in a narrative format, followed by discussion questions, problems or activities. They present readers with an overview of the main issue, background on the organization or industry, and events or individuals involved that lead to the problem or decision presented in the case.
As in real life, there is rarely a specific answer or outcome. Case studies are typically tackled in groups, although they can be an individual assignment. Learners apply course concepts in real-world scenarios, forcing them to utilize higher-order thinking skills such as analysis, synthesis and evaluation.
Case studies are very beneficial in helping learners to bridge the gap between theory and practice. Using case studies puts the responsibility for learning on the learner himself, rather than relying on an instructor or facilitator to guide the learning process. Case studies model more real-world tactics despite the fact that the content is prescribed.
Case studies in a business environment are typically used as an activity to transmit the course content; requiring an hour to a few hours of work as part of the larger course requirements. While business-based case studies are generally focused on teaching business principles, The Training Doctor uses business-based case studies to teach thinking processes.
Case studies pack more experience into each hour of learning than any other instructional approach.
Skills Taught Through Case Study Usage
While numerous studies have concluded that case studies are beneficial to learning simply because they are engaging and participative, there are many social and business skills which are taught through the case study process, as well.
If you are familiar with Bloom’s Taxonomy, you know that the “higher” levels of learning outcomes are analysis and synthesis – which case studies are able to achieve by presenting lots of information pertinent to various aspects of the case, and asking the learner to dissect and/or combine that information to arrive at a well-reasoned opinion or solution.
Additionally, as much work in the 21st century is accomplished via teams, case studies provide an opportunity to learn critical business skills such as communicating, problem-solving, and group work dynamics in general. NOTE: It is wise to ensure learners understand group dynamics, meeting management, group process (such as decision making and conflict resolution) and the like, before sending them off to work as a team.
Often the benefits of the case study approach are lost due to the learner’s inability to manage themselves as a group (which is also an important learning outcome!).
Outcomes of Case Study Learning
In addition to skills learned via case studies, there are business outcomes which are achieved, as well. Real-world business activities are rarely cut and dry. They are dynamic and fluid which can be reflected in a case study much more easily than in the linear presentation of content which typically occurs via lecture.
Case studies prime the learner to look at an issue from multiple perspectives and – when used correctly – from multiple disciplines as well. By extrapolating a business case study to their own work environment, learners are able to grasp connections between topics and real-world application which is often difficult to do in a traditional instructor-led course.
While arriving at an answer or solution may be the stated objective of a case study (what should Fred do next?), a greater outcome is developing the learner’s ability to apply problem-solving (or opportunity revealing) management to disparate information. In organizations with workers who are more tenured, the ability to insert their own experience and knowledge is not only helpful in keeping them engaged but beneficial for younger members of the group to hear.
It is a best-practice, when using case studies in business, to utilize groups from various disciplines within the organization. Different disciplines will bring different insights to the case, allowing for a more thorough discussion. Hearing various perspectives also teaches an appreciation for the “big picture” and demonstrates the importance of gathering all relevant data. For instance, in many of our case studies we ask “Who are the stakeholders and what are their interests?” It is difficult to answer this question if the group is all from the same department or discipline, they simply don’t see the other possibilities.
Additionally, case studies model the reality of business – there will always be incomplete information, time constraints, competing interests and conflicting goals, and one must still make the best decision one can – recognizing that in business no decision is ever “the right one.”
Where Do I Find Case Studies?
You can order case studies from Harvard Business Review or subscribe to The Training Doctor newsletter (right here, at the top of the page) where we release three new case studies each quarter. Additionally, you can always click on the "case studies" category of blog topics, on this page, to view previously published case studies.
Case Study - A century of automotive sales
Periodically, The Training Doctor releases case studies used in our Teaching Thinking Curriculum.Since we want everyone to improve their thinking skills - not just those who are enabled to do so through their employer-sponsored training - we offer these case studies for use in your personal development, corporate or higher ed classrooms.In this case study look at the evolution of auto sales in America you'll learn about a delivery strategy that must be re-invented about every 25 years and contemplate
Stakeholders
Market expansion and contraction
Sales approaches and profitability
and more (see the discussion questions at the end of the post)
There is no argument that automobiles have changed drastically in the last 125+ years – from motorized horse-carriages that needed to be cranked to start, to the battery and electric fueled cars of today, and driverless cars of tomorrow.During that span of time, auto sales and auto ownership have changed drastically as well.
In the Beginning
From the 1920’s, when the first “affordable” American automobile was built (Ford’s Model T), through the 19040’s, an automobile was considered a luxury item. Most people walked or took mass transportation (buses and trains) to get around; women often didn’t learn to drive. Families, who were lucky enough to own a car, owned just one.
1970’s
In the 1970’s America’s auto manufacturers were in their heyday; this was a period of peak production as it became more common for women to be in the workforce and households needed two cars to accommodate two working spouses. Auto manufacturing was generally confined to the “Big Three:” Ford, Chrysler and General Motors – who had a combined market share of nearly 90%.Automobile sales dealerships were in their heyday at this time as well because the only place to buy a car was from a dealership and dealerships specialized in one type of car. If you wanted a Ford – you went to the Ford dealership; likewise if you wanted a Chevy or a Chrysler. It was uncommon for the owner of a dealership to represent more than one brand, but when he did – those brands were on separate lots and often in separate parts of town or neighboring towns. During this time nearly all vehicles were made in America and were US-brands (no imports – as we call them today).Beginning in the late 1970's "foreign" cars began to have more of a presence in the US - starting with Volkswagen, Datsun (which later became Nissan), and Toyota.Imported cars became popular because they were generally smaller in size and therefore more fuel efficient (which was important during the 1973 oil crisis / embargo and the 1979 energy crisis).As can be imagined, no dealership of US automakers simultaneously represented a foreign manufacturer. People who purchased a foreign-made car were considered almost radical.During this same period, used car dealerships were non-existent. Generally, a used car was purchased in one of two ways: 1) from a dealership, which had taken it in on trade (and only a Ford was traded-in at a Ford dealership, of course) or 2) from a local garage which had done the work on the car and sold it via consignment for the owner. More often than not, when new cars were purchased, older cars were simply handed down to family members.
1990’s
The United States suffered a significant economic recession in the early 1990’s and auto sales suffered their first-ever slump. In order to revitalize sales, the concept of a lease was introduced. A lease allowed one to get a new car without having to buy it – the payments were lower than if the car had been purchased and, at the end of three years, one could simply turn the car back in at the dealership. New-car “sales” surged for a time, but then a glut of used cars came on the market not long after, as people turned their cars back in at dealerships.Another tactic used to increase sales during this decade was for US auto manufacturers to purchase “foreign” brands, which allowed them to appeal to a wider audience. Auto-malls were soon the norm, with multiple brands represented at the same location because they were all owned by the same parent company. (See sidebar).
2000’s
The 2000’s also began with a recession, following the September 11, 2001 attack on the World Trade Center. Once the economy turned however, a never-before seen resurgence in car buying began. Many middle class families began to buy third and even fourth cars for teenagers in their homes who had school, activities, and jobs they needed to get themselves to.Due to the steady expiration of leases, there was now a glut of used cars on the market – which was perfect for teenage drivers. No longer were used cars found only on the dealership lot. Now, retailers that specialized solely in used cars appeared (and flourished), and one could find any brand and style on the used car lot.No longer a luxury, by the 2000’s cars had become just another commodity; with families owning multiple vehicles and buyers purchasing new cars before their prior ones were paid off. Mom-and-pop local used car lots quickly morphed in to mega-malls of used cars, which carried any make and model one could want, and soon those types of dealerships becoming “brands” of their own.
As of 2015 there were 127,940 used car dealerships in America, as compared with3,300 Ford dealerships 2,328 Chrysler dealerships, and approximately 3,600 GM dealers
Sales Shift
Between 2015 and 2017, the used-car industry represented half of US auto sales (approximately 44 million used cars vs. 17 million new cars).In the first-half of 2017 new car sales began a steady decline, with sedans taking the hardest hit due to low gas prices, it seemed affordable to own a bigger SUV or crossover (SUV-type vehicle built on a sedan chassis). It was reported that auto makers paid (on average) $3,800 in incentives, just to move cars off of new-car lots in the first-half of 2017 (while the profit margin on a new vehicle is about $2,000).Additionally, thanks to the wide-spread use of technology and a mobile population, by 2015 both new and used cars no longer needed to be viewed, evaluated, or purchased at a point-of-sale.
Most major auto manufacturers now had interactive websites that allowed the customer to “custom design” a vehicle – surround sound? sunroof? V6 engine? metallic black paint? All could be “ordered” in advance of going to the dealership.
Used-car mega malls offered the ability to see their entire inventory on line, choose 2 or 3 cars to compare their features side by side, and whittle down one’s choice before going to see the car in person.
Still other options enabled buyers to find their ideal vehicle anywhere in the US and have it shipped to a local dealer for inspection or directly to one’s home, if the vehicle was purchased online.
Summary
In less than a century (since Ford’s Model T was considered the affordable car for “every man” in the early 1920’s) the way that autos are purchased in America – by whom and from whom – where – and how - has changed drastically. As evidenced in this analysis of The Evolution of Auto Sales in America, manufacturers have adapted and forged ahead despite mounting competition for sales. What is the next evolution?= = = = =Discussion Questions:
How many stakeholders are in this ‘space?’ What are their interests?
Is adding more and better (new brands) the right strategy? Should the industry consolidate?
Is a dealership network the only way to sell new cars?
Price margins for dealerships are horrible – what’s the rationale for continuing this model?
Consider the need for: physical space, staff, inventory (cars and parts), warranty work, buildings, lighting,
What’s the next evolution of how to buy a car?
Think about the whole infrastructure – What can be eliminated? What can be morphed? What can be capitalized on?
= = = = =
Can you timeline your own industry similarly?
What opportunities do you see next in your own industry?
Giving Your Product Away - Bombas Case Study
Periodically, The Training Doctor releases case studies used in our Teaching Thinking Curriculum. Since we want everyone to improve their thinking skills - not just those who are enabled to do so through their employer-sponsored training - we offer these case studies for use in your personal development, corporate or higher-ed classrooms. In the Bombas case study you'll be able to discuss and dissect concepts around:
Ethics
Product development
Corporate/Social impact
Super-niche Bombas makes one product and one product only - socks. And half the products they make they give away through partnerships with 600 organizations in all 50 US states. How do they stay in business? How is it sustainable? What is the company's real mission?
Learn more here and develop your thinking skills by using the discussion questions posed at the end of the case study.
Ethics, Leadership, Volkswagen - case study
Periodically, The Training Doctor releases case studies used in our Teaching Thinking Curriculum.Since we want everyone to improve their thinking skills - not just those who are enabled to do so through their employer-sponsored training - we offer these case studies for use in your personal development, corporate or higher ed classrooms.
In the Volkswagen case study, you'll be able to discuss and dissect concepts around:
Ethics
Leadership
Decision making
Stakeholders
In September of 2015, the United States Environmental Protection Agency (EPA) accused the automaker of installing engine control unit (ECU) software in its diesel cars (beginning in 2008). The software worked as a "defeat device," allowing VW models to avoid violating the Clean Air Act by sensing when the cars were being subject to emissions testing, enabling emissions controls, and thereby enabling VW brand cars to pass inspection.
However, during normal driving conditions, emission control software was shut off in order to attain greater fuel economy and additional power, resulting in as much as 40 times more pollution than allowed by law. Eventually, VW admitted that the sensing device was installed in approximately 11 million vehicles in both the US and Canada.
Learn more here and develop your thinking skills by using the discussion questions posed at the end of the case study.
Update: March 2019. VW has been charged by the Securities and Exchange Commission (SEC) with securities fraud to the tune of $13 billion.
What Happened at Nasty Gal? Case Study
Periodically, The Training Doctor releases case studies used in our Teaching Thinking Curriculum.Since we want everyone to improve their thinking skills - not just those who are enabled to do so through their employer-sponsored training - we offer these case studies for use in your personal development, corporate or higher ed classrooms.
In the Nasty Gal case study, you'll be able to discuss and dissect business
Risk
Leadership
Finance
Market forces
and individual
Self management
Decision making
In just 6 short years, Nasty Gal went from being declared the "fastest growing retailer" (by Inc. Magazine) to filing for bankruptcy. What happened? Did the company grow too fast? Did it take too many risks? Was its founder and leader a creative - not corporate - type? Read the case study and decide for yourself..