A Crisis of Ethics at Starstruck Media

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Case ID:

E-STM-20230719-1-V1

License:

CC BY-NC-SA 4.0

Pages

3 pgs

Case Study Analysis

Not Included

Teaching Notes

Not Included

Ai Level

Content co-authored with the OpenAI API
The author generated this text in part with GPT-4, OpenAI’s large-scale language-generation model. Upon generating draft language, the author reviewed, edited, and revised the language to their own liking and takes ultimate responsibility for the content of this publication

Category(s)

Ethics (9/10)
Marketing (8/10)
Finance (8/10)
General Management (7/10)
Strategy (7/10)

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This case study delves into the ethical and management crises faced by Starstruck Media, a globally recognized online streaming platform, during 2023. Two main issues take center stage: a marketing controversy over a sensitive documentary and significant accounting errors that overestimated profits. These dilemmas force Starstruck’s leadership to navigate a challenging terrain of public relations, investor trust, and potential legal consequences, while reconsidering their commitment to ethical business practices. The case serves as a potent tool for exploring the complex dynamics of ethics, marketing, finance, and strategic decision-making in business.

Rating of Case Categories

  1. Ethics (9/10): The case presents a significant ethical dilemma, addressing both marketing ethics and financial reporting ethics, making it an excellent fit for courses dealing with business ethics.
  2. Marketing (8/10): Starstruck's marketing campaign and its related ethical implications are a central issue, making this case applicable to marketing courses, especially ones focusing on ethical aspects.
  3. Finance (8/10): With accounting errors leading to financial misstatements and stock price implications, this case could be used in a finance course to discuss the impact of financial transparency and errors on investor confidence.
  4. General Management (7/10): The case addresses decision-making under pressure, leadership, and crisis management, all of which are key topics in general management.
  5. Strategy (7/10): The case poses strategic decisions in terms of public relations, investor relations, and long-term company image. However, it's not deeply rooted in strategic development or analysis.

Weaknesses of This Case Structure

  1. Lack of Concrete Data: The case lacks specific financial, customer, or market data, making it difficult for students to perform quantitative analysis or apply analytical frameworks.
  2. Undefined Characters: There's an absence of clearly defined characters. Highlighting key decision-makers or stakeholders and their perspectives can enrich a case study's storytelling element.
  3. Limited Background Information: While some information is given about Starstruck, deeper context regarding the company's history, culture, previous controversies, and competitive landscape would provide a more comprehensive perspective.
  4. No Clearly Defined Outcome: There's no information on what decisions were actually taken by Starstruck's executives and what the consequences were, which could be used to generate additional discussion and learning.
  5. Lack of Stakeholder Perspectives: The case does not dive into the perspectives of different stakeholders, which could provide valuable insights into the complex dynamics of business decisions.

Strengths of This Case

  1. Strong Ethical Dilemma: The combination of marketing controversy and financial errors makes for an engaging ethical case study.
  2. Real-world Relevance: The scenario is believable and reflective of the kind of crises companies can face, increasing its value as a learning tool.
  3. Interdisciplinary Approach: The case integrates ethics, marketing, finance, and strategy, promoting a holistic understanding of business operations.
  4. Stimulates Critical Thinking: The case poses complex, open-ended dilemmas, promoting debate and critical thinking among students.
  5. Invokes Stakeholder Analysis: Despite not directly providing stakeholder perspectives, it sets the stage for a discussion about different stakeholders and their potential reactions, promoting an understanding of stakeholder management.
  6. Potential for Further Exploration: The case leaves room for students to delve into areas like crisis management, public relations, corporate social responsibility, or investor relations, making it a versatile teaching tool.

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