Marshall School of Business
University of Southern California
Wongs Pharmacy
Teaching Note
Purpose of Case
This case was designed to contrast with the Leos Four-Plex Theater case. Like the theater case,
it is intended as an in-class, warm-up case on the first day of class where students cannot be
Questions
1. What are Thomas Wongs options?
2. Would you characterize the Wong Pharmacy problems as control problems?
Analysis
Start by asking students what the problem is. Here it is a small pharmacy that apparently cannot
compete with a larger competitor. There is no evidence of behavioral problems at the store level.
Then ask what Thomas Wongs options are. He can:
Close the store or sell out;
Move to a different location;
P
rofessor Kenneth A. Merchant wrote this teaching note as an aid to instructors using the Wongs Pharmacy case.