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Teaching Note: Case 2 – Edward Marshall Boehm, Inc.
Case Objectives
1. To provide an introduction to the conceptual framework of strategic management.
2. To introduce students to the process of problem identification and potential solution
See the table below to determine where to use this case:
NOTE: This is a COMPREHENSIVE case, so this Teaching Note covers concepts from all
chapters in the text. Instructors can move from chapter to chapter, or focus on specific chapters at
their discretion.
Chapter Use Key Concepts
1: Strategy Concept Leadership for strategic management; sustainable competitive
2: External
Environment
Industry competition five forces; general environmental factors
3: Internal Analysis Value-chain analysis; resource-based view of the firm; VRIN
5: Business-Level
Strategy
Competitive strategy; generic strategies
Strategy
Strategies
9: Strategic Control Informational vs. behavioral control
10: Organizational
Design
Organizational structure; functional structure
Leadership
Innovation
Case Synopsis
Edward Marshall Boehm, Inc. was a small, high-quality porcelain art objects company that was
very successful, particularly at producing images of vanishing species of birds. These pieces are
complex sculptures selling from $100 to over $20,000, and are sought by some sophisticated
collectors. The company was run by Mr. and Mrs. Boehm (pronounced “beam”): he was the
Teaching Plan
It’s possible to ask students to read this short case in class during the 2nd or 3rd class meeting, after
they’ve had a chance to read and discuss Chapter 1. Despite its brevity, this case can be used to
demonstrate how all the components of strategic management are necessary in order to achieve a
competitive advantage and makes a great point about the need for a business-level strategy. The
Edward Marshall Boehm story contains short examples of almost all the major concepts
contained in the textbook, so the instructor can use the case with Figure 1.3 to show how
strategic analysis, formulation, and implementation are linked. Either use the case PowerPoint
slides or ask the discussion questions directly. As students respond, either write answers on the
board or refer to the PowerPoint slide answers.
NOTE: As you will see in the Case Update, Boehm appears in danger of closing for good, so
enterprising students who may have done some research on their own might question the value
of discussing a case where the strategy eventually was unsustainable. Point out that this doesn’t
matter. When the case was written, the company, started in a basement in New Jersey in 1949,
was still recognized as creating some of the most outstanding porcelain art available. Ask
students to put themselves in the shoes of the Boehms, and analyze the strategic environment as
it existed when the Boehms were still alive. What advice might students give that could protect
the legacy of this company?
Summary of Discussion Questions
Here is a list of the suggested discussion questions.
1. What are the strategic challenges facing Edward Marshall Boehm? What business are
they in, and what strategy should they choose? Is there a certain sequence of actions that
would be best to take when developing a competitive strategy?
Discussion Questions and Responses
Referencing Chapter 1: Introduction and Analyzing Goals and Objectives
1. What are the strategic challengers facing Edward Marshall Boehm? What business
are they in, and what strategy should they choose? Is there a certain sequence of
actions that would be best to take when developing a competitive strategy?
Strategy is all about the ideas, decisions, and actions that enable a firm to succeed. See Chapter
1, Exhibit 01: Strategic management consists of the analyses, decisions, and actions an
organization undertakes in order to create and sustain competitive advantages:
●strategy directs the organization toward overall goals and objectives;
●includes multiple stakeholders in decision making;
Strategic management involves
●Analysis of strategic goals (vision, mission, strategic objectives), and of the internal and
●Decisions - Formulation about what industries to compete in, and how to compete in
●Actions -Implementation to allocate necessary resources and design the organization to
An interesting question that the instructor can ask at this point is: What business is Edward
Marshall Boehm in? Some students might say porcelain manufacturing; some might say art. The
Leaders face a large number of complex challenges. Leaders must be proactive, anticipate
change and continually refine changes to their strategies. This requires a certain level of
See Chapter 1, Exhibit 06: The primary role of the organizational leader is to articulate vision,
mission and strategic objectives. Leaders must communicate their initial vision of the
How well did Mr. Boehm seem to do this? It appears from the case that his passion, his love, was
A mission encompasses both the purpose of the company, as well as the basis for competition
and competitive advantages. Organizations must respond to multiple constituencies if they are to
The mission of Edward Marshall Boehm is clearly stated. The Boehms were interested in: (1)
having Mr. Boehm’s art recognized and honored in the art world, (2) supporting nature and
Anticipating that things might change, the leader must establish strategic objectives to
operationalize the mission statement. That is, objectives help to operationalize the mission
At least one of the objectives established in the case was to further develop the techniques of
high-quality porcelain manufacturing. This objective has implications for how to acquire both
tangible and intangible resources, how to monitor and control performance, and how to analyze
During strategic analysis, the leader does “advance work” to anticipate unforeseen
environmental developments, identify unanticipated resource constraints, assess changes in his or
her preferences for how to manage. During strategy formation, depending on the type of
The basic question strategic management tries to answer is: How can we create competitive
advantages in the marketplace that are not only unique and valuable but also difficult for
Referencing Chapter 2: Analyzing the External Environment
See the segments of the external competitive environment that include competitors, customers,
What business is Boehm in? If the Boehms are considered to be in the business of selling
Regarding the general external environment, Boehm must consider the political/legal, economic
and global, sociocultural and demographic, and technological forces that might affect the ability
Referencing Chapter 3: Analyzing the Internal Environment
See the concept of the resource-based view of the firm, and the three key types of resources:
tangible resources, intangible resources, and organizational capabilities. A firm’s strengths and
capabilities – no matter how unique or impressive – do NOT necessarily lead to a competitive
advantage. The resource-based view of the firm takes the perspective that firms’ competitive
It’s possible that Boehm has all these attributes, based on the valuable, rare, and unique porcelain
In addition, Boehm must assess the relationships between the elements in its value chain.
Remember, value-chain analysis is a strategic analysis of an organization that uses value-creating
activities. Value is the amount that buyers are willing to pay for what a firm provides them and is
Every activity should add value. Take a look at Exhibit 3.1 to see the value chain activities. It
Referencing Chapter 4: Assessing Intellectual Capital
See the concepts of intellectual capital and human capital, both of which are intangible assets
that a company such as Boehm needs to have in order to compete successfully. Intellectual
Human capital involves the individual capabilities, knowledge, skills, and experience of the
company’s employees and managers. This knowledge is relevant to the task at hand, as is the
Referencing Chapter 5: Formulating Business-Level Strategies
See the types of competitive strategies, including the three generic strategies that are used to
overcome the five forces and achieve a competitive advantage:
●Overall cost leadership
oLow-cost-position relative to a firm’s peers
●Differentiation
oCreate products and/or services that are unique and valued
●Focus strategy
oNarrow product lines, buyer segments, or targeted geographic markets
Generic strategies are plotted on two dimensions: competitive advantage and strategic target. The
Given the business the company is in, and Boehm’s goals, low-cost leadership is not an option.
It’s more likely that a focused differentiated strategy would work best. As can be seen by a quick
Referencing Chapter 6: Formulating Corporate-Level Strategies
See the concept of diversification. Diversification is the process of firms expanding their
operations by entering new businesses. Diversification initiatives – whether through mergers and
acquisitions, strategic alliances and joint ventures, or internal development – must be justified by
If Boehm wants to grow, this might be an option. Some possibilities include:
●Mergers and acquisitions
●Strategic alliances
Whatever the choice of initiative, it should create value for all stakeholders – employees,
suppliers, distributors, and the Boehms themselves. The choice of diversification strategy should
create synergy so that all parties gain something they would not have had on their own. Boehm
Referencing Chapter 8: Entrepreneurial Strategy & Competitive Dynamics
See the concept of opportunity recognition, the process of discovering and evaluating changes in
the business environment, such as a new technology, socio-cultural trends, or shifts in consumer
Entrepreneurs must go through a process of identifying, selecting, and developing potential
Edward and especially Helen Boehm seemed very aware of the possibilities here. At the time of
Boehm’s founding there were few fine porcelain manufacturers in the U.S. (NOT IN THE
CASE: As of 2013, over sixty years later, Boehm was the last American porcelain company left
