Integrative Cases: Answers to Discussion Questions
Integrative Case Part 1
1. What turbulent forces are causing business leaders to rethink their use of energy?
Technological advances in clean energy are compelling managers in many industries to ask
managers to rethink their energy use.
2. Which managers—top managers, middle managers, or first-line managers—would make
companywide decisions about energy use? How might the new workplace enable all managers to
capitalize on the Great Shale Gas Rush?
Decisions about an organization’s energy use are high-stakes determinations for managers at
higher levels of the organizational hierarchy. In today’s organizations, the primary focus for top–
3. Which historical management perspectives have particular relevance to the exploration and
extraction of natural gas? Explain.
Answers will vary, but students should recognize that natural gas drilling is a high-tech
Integrative Case Part 2
1. Explain how UPS’s alternative–fuels fleet is a response to trends taking place in the company’s
general environment.
UPS has developed its alternative-fuels trucking fleet in response to uncertainty originating in
2. Describe how UPS is using boundary-spanning roles to adapt to energy-related uncertainty in
its environment.
Effective organizations use boundary-spanning roles to identify, track, and respond to changes in
the external environment. Specifically, boundary-spanning roles are managerial activities and
3. How does UPS’s clean fleets initiative illustrate the concepts of sustainability and corporate
social responsibility?
Sustainability refers to economic development that generates wealth and meets the needs of the
current generation while saving the environment so that future generations can meet their needs
Integrative Case Part 3
1. Why do businesses form strategic partnerships? Does the creation of America’s Natural Gas
Highway require such a partnership? Why or why not?
Strategic partnerships are a new trend in strategic planning, and with good reason. Collaboration
among organizations can be a way to enter new areas of business that were previously
2. What opportunities in the external environment may have led Navistar and Clean Energy to
formulate their plan for America’s Natural Gas Highway?
In a SWOT analysis, opportunities are those characteristics of the external environment that have
3. What threats in the external environment could cause this comprehensive natural gas strategy
to fail? What can managers do to help ensure that the plan is executed successfully?
Threats that could cause the strategy to fail include government regulations, a shift in energy
prices, competition, or the failure of individual partners to execute their part of the plan. First,
Integrative Case Part 4
1. What type of change and innovation is taking place at Westport Innovations Inc.? Which
innovation strategies helped turn Hill’s research ideas into successful new products?
With the invention, manufacture, and sale of HPDI-based natural-gas engines, Westport
2. Which structural design approach are managers using to organize and grow Westport
Innovations Inc.?
Five approaches to structural design include functional, divisional, matrix, teams, and virtual
networks. Since founding the company, CEO David Demers has used a divisional approach to
organizing and growing Westport. After assessing the market possibilities of Hill’s innovation,
3. In what way has Westport’s organization structure followed its business strategy?
Westport’s divisional structure was developed to promote strategic business goals, including
differentiation, innovation, and flexibility. The Westport HD business unit was created after
Integrative Case Part 5
1. Range Resources CEO Jeffrey Ventura emphasizes public safety, environmental concern, and
open communication with stakeholders. Which of the four contemporary leadership approaches
do you think best describes Ventura? Explain.
The four main approaches to contemporary leadership are Level 5 leadership, servant leadership,
authentic leadership, and interactive leadership. Answers may vary, but students should
2. Managers at Range Resources use communication to develop a climate of trust and openness.
Why is this especially important for energy companies, and what specific actions can managers
take to enhance this communication approach?
As a result of unexpected energy spills and leaks in recent years, managers of energy exploration
companies may feel inclined to guard production data and restrict communication with the
3. How might Range’s leadership, communication, and values affect employees’ organizational
commitment? Explain.
Organizational commitment means an employee’s loyalty to and engagement with the
organization. Employees with high organizational commitment like being part of the
Integrative Case Part 6
1. Managers at Range Resources say that maintaining a low-cost structure is the job of every
employee, and they make cost control part of the company culture. Is this indicative of a
hierarchical or a decentralized philosophy of control? Explain.
In Integrative Case Part Six, Range’s CFO articulates the ideals of decentralized control: the use
of culture to direct behavior, active participation by all employees, and empowerment and
2. What is liquidity, and how can Range’s managers know if they have enough of it to keep the
company’s finances on track?
Liquidity is an organization’s ability to convert assets to cash to meet debt obligations. As CFO
Roger Manny states, liquidity is crucial in a turbulent economy. Range’s vast land drilling leases
3. Short-term thinking can be disastrous for a business. What indications are there to show that
financial managers at Range Resources take a long-term approach to financial performance and
control?
In Integrative Case Part Six, managers discuss a ten-year plan for the company. They also
