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?
Raymond was lagging behind in their customer order fulfillment process due to inefficiencies in their warehouse operations. Further, slotting of stock keeping units to the right bins was not in order. As a result, the warehouse capacity was limiting the company's growth. This case draws lessons about how warehousing technology and scientific warehouse management practices can significantly improve warehouse pick efficiencies and have a positive impact on other business performance indicators.
The case describes the strategy of a large Indian Public Sector Bank (PSB) to enhance financial inclusion and financial literacy of less privileged people located in poorly accessible parts of India. While pursuing the developmental objective 'imposed' by the Central Bank/government, being a listed entity, the PSB had to be mindful of the financial viability of the strategy so as to protect the interest of its minority shareholders. The issues covered are endemic to most developing countries where public enterprises often become instrumentality of the state.
The case focuses on a start-up, The Grommet, which views itself as an intermediary between small and independent makers of high-quality products, and sophisticated buyers that value the uniqueness of the products. The Grommet, initially called Daily Grommet but renamed in 2011, was founded to create a more equitable link between product creators and product consumers. The founders trademarked the term Citizen Commerceâ„¢ as the manifestation of this equitable foundation for merchandising. The two co-founders, Jules Pieri and Joanne Domeniconi, have been serving as the company's CEO and Chief Discovery Officer, respectively. The company grew steadily but slowly during its first years. The case's main protagonist is Ray Hallare, who finds himself responsible for ordering decisions for the upcoming December holiday selling season. As preparation, students are asked to develop an ordering and inventory strategy for Ray. The discussion in class then commences as an inventory case, and it successively expands to a broader and broader view of the business model itself and the challenges and opportunities that growth creates for this start-up.
Ramesh is the founder of a startup 'Artistically Yours'. Ramesh wants the company to become a market place which brings together artists who can sketch a portrait and consumers who want to get a portrait sketched. Ramesh along with his friend Vijay has conducted an exploratory research and now wants to conduct a confirmatory research. The case discusses how they use the insights from the exploratory research to prepare a questionnaire for conducting a confirmatory research. The case can be used to discuss different exploratory research techniques, how to interpret the findings of exploratory research and questionnaire construction.
Supplement to case A00120. Ramesh is the founder of a startup 'Artistically Yours'. Ramesh wants the company to become a market place which brings together artists who can sketch a portrait and consumers who want to get a portrait sketched. Ramesh along with his friend Vijay has conducted an exploratory research and now wants to conduct a confirmatory research. The case discusses how they use the insights from the exploratory research to prepare a questionnaire for conducting a confirmatory research. The case can be used to discuss different exploratory research techniques, how to interpret the findings of exploratory research and questionnaire construction.
In late 2014 SoulCycle management was preparing for its IPO. Founded in 2006 in Manhattan, the high-end cycling studio was planning to expand to 47 studios by mid-2015, with locations in eight metropolitan markets. With a celebrity following and studios operating at or near capacity, SoulCycle management expected to open 10 to 15 studios per year going forward. But competition was heating up in the niche cycling segment and cautionary tales in the broader fitness segment-like that of Bally Fitness and DavidBartonGym-were well known. In this case, students consider how to place a value on SoulCycle-and whether mainstream fitness companies, athletic apparel manufacturers, or providers of high-end spa and leisure services would provide the best comparable by which to estimate SoulCycle's growth and revenue trajectory.
In late 2014 SoulCycle management was preparing for its IPO. Founded in 2006 in Manhattan, the high-end cycling studio was planning to expand to 47 studios by mid-2015, with locations in eight metropolitan markets. With a celebrity following and studios operating at or near capacity, SoulCycle management expected to open 10 to 15 studios per year going forward. But competition was heating up in the niche cycling segment and cautionary tales in the broader fitness segment-like that of Bally Fitness and DavidBartonGym-were well known. In this case, students consider how to place a value on SoulCycle-and whether mainstream fitness companies, athletic apparel manufacturers, or providers of high-end spa and leisure services would provide the best comparable by which to estimate SoulCycle's growth and revenue trajectory.
Saksham Wealth Solutions P. Ltd. (Saksham), founded in 2005, was an investment company that survived the challenges of the Indian wealth management industry and the ups and downs of the financial market. Saksham's success was due in part to a strategy of building trust with clients and educating them about the nuances of creating wealth through various financial instruments. Transparency, assistance, timely advice, and a goal-oriented approach were considered the company's essential services. In 2008, the company turned down a purchase proposal from top international bankers who valued Saksham at three times its annual profit. Ten years later, Saksham was four times bigger. If a similar offer were made, should Saksham take it?
Screen Microtech Inc., a capacitive touch screen manufacturer, had seen significant growth over the past year: it had moved its manufacturing plant, expanded operations, built a larger client base and seen an unprecedented increase in sales. Its chief executive officer was preparing an initial public offering that could lead to a significant bonus and stock shares for himself and for the company's chief financial officer. This could be enough to induce them to secure improved financial results through any means necessary. Certainly, it could bias their approach to accounting policy choices. Was the company's accounting ethical? Did it feature earnings management or earnings manipulation? What was the difference between the two, if any? What was the effect of such accounting practices on the financial markets?
This case is a supplement to Nintendo: Game On! Released in July 2016, Pokémon GO was a location-based virtual reality mobile game in which players needed to locate and capture virtual creatures from the Pokémon family. Although it was a revolutionary concept, would its release mark a change in Nintendo’s recent history of continuous decline in revenues and profits? Supplement for product 9B16M158.
In 2008, the chairman of the Zuellig Family Foundation and former Secretary of Foreign Affairs for the Philippines, asked the foundation’s president to take up the challenge of providing health care for the poor of the Philippines. The foundation’s president was particularly struck by the health inequities between the urban rich and the rural poor. The rich had a life expectancy above 80 and the poor below 60; the maternal mortality ratio was 15 among the rich but over 150 among the poor. The foundation’s president had spent much of his career working to bridge fundamental divides within Philippine society. Within four years, he led the foundation to complete a health care program with remarkable success in selected areas of the country, which transformed the inert and broken health care system into a living, thinking, intelligent network of stakeholders. A dignitary praised the program and asked the foundation’s president to roll out the program country-wide. Could the foundation succeed with such a broad undertaking while preserving the efficacy, soul, and sustainability of the program?
The case puts students in the shoes of a private banker who wants to price a structured note for European high net worth clients with low levels of risk tolerance. The principal-protected equity-linked note (PP-ELN) provides investors with fixed income-like principal protection together with upside exposure to the S&P 500 Index. The students are asked how the bank should allocate the client's money to buy call options and invest in zero-coupon bonds to deliver this PP-ELN and still earn a fee. By adjusting the amount of principal protection or capping the upside potential, the students can calculate whether there is an opportunity for increased upside participation. This financial engineering case can be used to teach put-call parity, option strategies, and Black-Scholes pricing.
This case puts the students in the shoes of Jeff Thomas, a high-yield credit research analyst for a hedge fund. Thomas' portfolio manager has asked him to come up with a potential trade idea for AMR Corporation (the parent company of American Airlines) using a credit default swap (CDS). Thomas wanted to gauge whether the CDS spread prevailing in the market was too high or too low relative to AMR's credit outlook. He was going to use both structural and reduced form CDS pricing models and compare them against the prevailing CDS spreads in the market. More importantly, Thomas needed to come up with a trade recommendation.
By September 2015, Deep Roots Distillery (DRD) had been operating for 22 months. While starting up had taken a little longer than originally estimated, material progress was now evident. By November 2015, the company expected to have six of its products (either spirits or liqueurs) available in the Prince Edward Island liquor store outlets. However, numerous questions remained for DRD's owner and his small, family-run business. Given capital and resource constraints, how could DRD grow into a competitive business? How should time be allocated between research and development, production, marketing, and administration? Would the start-up's current product/market strategy allow it to achieve its goals? If not, which expansion route should DRD take?
The founder of a data analytics company, Stefan Brecht, has several issues with his key business developer and head of marketing and sales, Tamara Smithson. Smithson, an early hire who had been instrumental in building the firm operates as an individual contributor, is hesitant to delegate tasks and clients, and, as Brecht sees it, "often puts client affairs ahead of company needs and procedures." Brecht is evaluating different options for dealing with the situation.