TEACHING NOTE FOR CASE STUDY: “STRATEGIC DECISION-MAKING UNDER UNCERTAINTY: INNOVATION AND NEW PRODUCT INTRODUCTION DURING VOLATILE TIMES”

This teaching note accompanies the case study titled “Strategic Decision Making under Uncertainty: Innovation and New Product Introduction during Volatile Times” published under the reference: Boehlje, M. And M. Roucan-Kane, ”Strategic Decision Making under Uncertainty: Innovation and New Product Introduction during Volatile Times”, International Food and Agribusiness Management Review, 12 (4), 2009. This case study outlines the strategic, marketing, and organizational issues facing the farm machinery and equipment division of Deere and Company as it is considering the development of products in the information domain, which encompasses many opportunities of disruptive innovations to market to new or underserved customers. While these disruptive innovations face uncertainties and challenges, they can also, if successful, generate more profits. Instructors can use the case to discuss uncertainties and tools to mitigate risk. Readers must think strategically about innovation and the uncertainties associated with each innovation project. Beyond a listing of uncertainties, readers are also challenged to think about ways to mitigate risk through the use of real options, an options portfolio, and organizational structure. This teaching note presents some suggested answers to the discussion questions presented in the case study.