JF is an Argentine business founded in 2003, engaged in the design, production and commercialization of women's lingerie with high design content. Although the venture initially opened stores in Argentina, the entrepreneur's plans were to quickly become an international company. In 2006, the firm started to export its products. Its main market destinations were Brazil, Dubai, Spain and Japan. By 2011, exports amounted to 65% of the firm's revenues.The country´s economic scenario, favorable for exports in previous years, had now changed. The Argentinian government had started to increasingly resort to instruments to restrict imports with the aim of protecting dollars as reserve currency. In turn, inflation was hitting an all-times-high in 10 years, amounting to an annual 30%. During 2013, JF lost customers abroad, evincing a notorious loss in profitability, plummeting from 30% back in 2009, to 15% in 2013. MarÃa Jesús and his partner, Alejandro Dancetti, agreed on the analysis and diagnosis: sticking to the original strategy was no longer viable. Therefore, they had to define the best way to reorient their products to the local market. The crux of the matter was what to do and how to do it. Why not develop a sound strategy for the domestic market? Why not think of a wider range of products to reach other segments? Why not explore the channel of multi-brand stores carrying women´s apparel? Why not launch a more affordable line, a line of equal quality, yet more volume, introducing a more-linear design? For the time being, the foreign market did not look like a feasible option.
This case explores the transformation of a company, ComplexAminos, from a failing start-up to a successful organization preparing for a liquidity event. After conducting a six-year turnaround strategy, the CEO needed to decide whether the company should go public or be sold. During the turnaround, the company adopted a roll-up strategy to grow quickly. This case explores such issues as when roll-ups are appropriate and how the CEO gained the funding and board support to successfully implement the strategy.
"Telemetrix" is a two-part case study; its parts can be used alone or in sequence. Case A "North-South Exports Lends a Helping Hand to Telemetrix: Mexico or Brazil?" showcases a young analyst at North-South Exports, a small Quebec-based export management firm that helps SMEs with international expansion. The analyst must make recommendations as to the best way for the company's client Telemetrix to rapidly achieve sales in Latin America, and whether to focus on Brazil or Mexico. Case B "Telemetrix in Brazil: Indirect Export, Outsourcing, or Licence?" focuses on the choice of an entry mode to penetrate a foreign market, in this case, Brazil, and, based on this choice, on the selection of a local business partner. It also addresses the difficulty of developing international supplier-customer relations. Just like Case A, Case B is a decision-making case. The analyst must determine the best entry mode and which partners will lead Telemetrix to success in Brazil and, subsequently, elsewhere in South America.
Supplement to case HEC149. "Telemetrix" is a two-part case study; its parts can be used alone or in sequence. Case A "North-South Exports Lends a Helping Hand to Telemetrix: Mexico or Brazil?" showcases a young analyst at North-South Exports, a small Quebec-based export management firm that helps SMEs with international expansion. The analyst must make recommendations as to the best way for the company's client Telemetrix to rapidly achieve sales in Latin America, and whether to focus on Brazil or Mexico. Case B "Telemetrix in Brazil: Indirect Export, Outsourcing, or Licence?" focuses on the choice of an entry mode to penetrate a foreign market, in this case, Brazil, and, based on this choice, on the selection of a local business partner. It also addresses the difficulty of developing international supplier-customer relations. Just like Case A, Case B is a decision-making case. The analyst must determine the best entry mode and which partners will lead Telemetrix to success in Brazil and, subsequently, elsewhere in South America.
Traditionally, firms have tried to listen to primary stakeholders (e.g., customers, suppliers, creditors, employees) but have paid little attention to the concerns of secondary stakeholders (e.g., the general public, communities, activist groups). This is because primary stakeholders were perceived to have power, legitimacy, and urgency behind their requests, while secondary stakeholders had little or no leverage. With the coming of the Internet and social media this asymmetry of influence has changed. Today, secondary stakeholders have to be managed as adroitly as primary stakeholders. In this installment of Marketing & Technology, we show managers how social media and the Internet have amplified the influence of secondary stakeholders, and offer guidance on how to manage these groups effectively.
Professional service firms are facing new competitive challenges in a global market with more value-focused clients, service commoditization, regulatory changes, and new Internet-enabled business models. They increasingly need to improve competitiveness through sustained innovation of the value they provide and the efficiency with which they provide it. But how can firms establish an effective and sustainable innovation system? This Executive Digest shares a best practice model for innovation based on academic research and honed by a decade of practical experience in application across professional service firms in consulting projects. This work covers how to develop innovation strategies by establishing processes and organization to support innovation, providing innovation training, developing new services, and re-engineering existing services. The author, Alastair Ross, details the practices required and shares some of the challenges encountered in realizing them. This article draws heavily on his latest book, Innovating professional services: Transforming value and efficiency.
Innovative marketers can now leverage augmented reality to craft immersive brand experiences, create more interactive advertising, and enable consumers to experience products and spaces in novel ways. Augmented reality (AR) is the practice of displaying digital information over people's real-time view of objects, people, or spaces in the physical world. While AR can play a valuable role in integrated marketing programs, little is known about the practice and how to execute effective AR programs in the marketplace. We address this gap by presenting a framework that describes the active and passive ingredients of augmented reality. We then describe the basic design decisions that marketers need to make when planning an augmented reality campaign. In addition, we explain how understanding and addressing the dynamics between various active and passive AR ingredients can help marketers to optimize their AR campaigns and enhance various types of consumer engagement: user-brand engagement, user-user engagement, and user-bystander engagement. Through our framework and analysis, we develop eight actionable recommendations--described with the acronym ENTANGLE--marketing managers can use to design immersive AR experiences that maximize consumer engagement.
The resource-based view (RBV) of the firm has become a prominent management theory that firms can use to analyze resources as potential sources of competitive advantage. Theorists have suggested sponsorship of sport properties as one such resource, yet specific cases of sponsorship's role in a firm's achievement of a sustained advantage over competitors have yet to be explored. This article illuminates the case of Visa's longstanding global sponsorship of the Olympic Games, which was initiated and leveraged to counteract competitor American Express' advantage with global business travelers. Evidence is presented that supports Visa's achievement of a competitive advantage during the term of the sponsorship. The case is then used to develop a conceptual model based on the RBV to identify the key characteristics of sponsored properties capable of assisting the sponsoring firm in achieving a sustained competitive advantage. From a managerial perspective, the model is designed to assist marketing managers tasked with the identification and evaluation of potential sponsorship properties.
Social media networks have become essential to the modern business world and are especially vital for sports firms and athletes. Social media networks are new channels for firms to connect with their audience and establish a social customer relationship. For sports firms, athletes play a special role, as they are the firms' ambassadors and the focus of virtual communities of fans. For most athletes, social media is a powerful tool to take advantage of their time in the spotlight. However, social media has much more potential. This work analyzes the social media profile and content created by six well-known sports figures--Cristiano Ronaldo, Lionel Messi, Tom Brady, Aaron Rodgers, LeBron James, and Kevin Durant--to develop a model (STAR) for social media use. The adoption of this model can enhance fan engagement online and therefore increase athletes' and firms' brand value and connectivity with consumers.
Sports performance is not the unique ingredient of a sports star's market value. Some gifted players are undermined by weak media exposure while some less talented players who actively engage in social media and attract fans in millions benefit from exorbitant contracts. This research conceptualizes the effect of social media in the sports business and analyzes the recipes that lead to high market value for sports stars. This study uses qualitative comparative analysis (QCA) on a sample of 95 top soccer players in Europe. The empirical results reveal that sports performance and social media activity are both necessary but insufficient conditions for a high market value condition. This research provides a roadmap for managers and sports stars to navigate in the social media arena.
College students are inseparable from their smartphones, and heavily engaged in Snapchat. This social media app allows low-consequence expression: messages disappear within 10 seconds to 24 hours of their receipt, depending on the content. Because college students seem strongly attracted to Snapchat, the implications for brand managers interested in reaching this target market deserve exploration. Four focus groups of self-described heavy users show that this media app allows college students to enter the virtual Snapchatverse and find a sweet spot of acquaintances. The sweet spot is associated with feelings of relatability, inclusion, and effortlessness and has the potential to produce empowering experiences. The verbal protocols of college students suggest that Snapchat is an ideal social media for developing acquaintance brands: brands that aim to make themselves part of an inclusive, feel-good experience or highly relatable acquaintances.
While social media can have significant benefits for organizations, the social media presences and postings of employees can be problematic for organizations. This is especially true when employees have connections to co-workers and managers. Workers posting content deemed inappropriate or detrimental to the organization has led to a significant number of workers being fired for their social media behavior. To avoid such situations, organizations should create social media policies to guide employee content. Organizational implementation of social media policy is on the rise, but serious questions remain as to how to make it effective. One crucial question is how well employees know and understand their employer's policy. In this article, we discuss how to communicate social media policies to workers and help their understanding. To inform our recommendations, we draw on exploratory data from a sample of young adult workers regarding their knowledge of their own company's social media policies.
With the advent of big data, the Internet of Things, cognitive computing, and social media, it is becoming more difficult to argue that one could not have known or at least have considered more alternatives, particularly negative unintended consequences that happen in addition to the intended positive ones. Organizations too often make a decision that will produce a positive consequence and then focus on how to implement it, rarely stepping back to ask ''What else could happen?'' Any decision changes the system in which it exists. The longer the time required to implement a decision, the more systemic changes can alter the effects of the decision on the system. Decisions to implement Corporate Social Responsibility and sustainability initiatives usually involve many different stakeholders and may involve systems in which organizations have little expertise or experience. A major negative unintended consequence, even for a CSR initiative, can damage the stakeholders' trust in the organization. This article proposes a 5-step process to answer the question ''What else could happen?'' in order to identify possible unintended negative consequences, thereby helping organizations support their commitment to people, planet, and profit.
High-reliability organizations operate in highly regulated sectors in which the main concern is ensuring the safety of people and goods. Despite high levels of formalization, organizations have to be sensitive to contingent situations and ready to face the unexpected, so the role of the people in command remains crucial. When unanticipated events and contingencies arise, organizational improvisation comes into its own. Improvisation is the deliberate fusion of design and execution in a novel production entailing the cognitive, rational, and event intuitive interpretation of prescribed rules and standards of conduct at various levels of aggregation. Standardization and improvisation are often represented as two conflicting demands rather than as necessarily interdependent; hence, the possible presence of improvisation in high-reliability organizations has been left underexplored. While most of the extant studies on improvisation have stressed the wisdom of improvised choices, not all improvisations are so successful. In this article we illuminate the dark side of organizational improvisation by analyzing the notorious case of the sinking of the Costa Concordia. The case shows how conformity to the formal adoption of standards and compliance to them can provide a shelter under which impromptu adaptation can be pursued, expressing the negative side of improvisation.
Many retail and restaurant companies adopt international expansion as a strategy to take advantage of business opportunities presented by target markets. Common objectives include increasing revenue, escaping a hypercompetitive or saturated home market, entering an emerging or lucrative market, and leveraging domestic capabilities in a bordering country. Success in international expansion is not guaranteed, however; the business world is littered with failures. In this article, we examine the international expansion failures of five service companies that opened physical facilities in a foreign country: Target, Tim Hortons, Best Buy, Tesco, and Walmart. While a variety of factors led to these failures, some common causes have been identified. These include a lack of understanding of the purchasing characteristics of consumers, underestimation of the local competition, supply chain issues, and poor strategic decisions regarding facility location and the rate of expansion. Not all international expansions are failures, though, and herein we also present the success stories of Aldo, Carrefour, and Nordstrom. These companies understood customer preferences and focused on location issues and their supply chains. Based on the aforementioned failures and successes, we offer guidance for companies looking to expand their business operations via a physical presence in a foreign country.
Describes the detailed inner workings of a high performance Formula One (F1) racing team. It shows how Lotus F1 Team has been able to battle bigger rivals in a very fast-moving, highly regulated, and ultra-competitive environment, where winning races can come down to split seconds. The case explores all elements a of their high performance system: strategy, innovation, leadership, technology, engineering, and operations. Emphasis is placed on the interplay of these elements and how they confer competitive advantage to teams. Management dilemmas that are explored: retention of high performing individuals, response to disruptive technological changes, and regulatory design in competitive environments.
Communicating persuasively is a critical skill for leaders of any team or organization. Yet, connecting and resonating with an audience can nevertheless be a challenging task. We outline how to effectively mobilize groups through the power of communication. This note will serve leaders and members of diverse groups as they find their voice to inspire, unite, and engage others through messaging. With multiple examples as a backdrop, we highlight four key components of effective messaging in this note: 1) Structuring Messages and the Persuasive Story Pattern; 2) Appealing to the Audience; 3) Persuasively Communicating through Rhetorical Devices; and 4) Delivering Clear and Captivating Messages.
From 1980 to 2010, frequent flyer programs (FFPs) had evolved from simple customer reward programs to independent profit-generation business models. The airline industry had seen enormous success with FFPs, which had become businesses of their own. In June 2014, however, United Airlines announced that as of March 1, 2015, it would move from awarding miles based on distance flown to awarding miles for dollars spent per ticket, following in the footsteps of Delta Air Lines. According to the new mileage accrual plan, most United Airlines passengers would earn fewer reward miles. Many customers saw this change as a significant devaluation of award miles and complained about United Airlines' new policy. Who benefited from the revenue-based FFPs and how would the new program affect the behaviour of United Airlines' customers? Should American Airlines also adopt the revenue-based FFP?