iQmetrix, a company founded in 1999, developed and sold point-of-sale (POS) software using the software-as-a-service model. Two iQmetrix enterprise account managers were discussing strategies for closing a software subscription deal with a large customer who asked for significant customization to be completed before the deal could be signed. The customization appeared to be critical for the customer, and the account managers thought the added functionality might be valuable for the rest of the company's customer base. iQmetrix's product was specialized for use by mobile wireless retailers, and the company was the current market leader with approximately 60 per cent of the POS market in Canada and the United States. The company's executives now needed to make a decision. Should iQmetrix commit to the customer's request for significant customization?
In October 2015, five years had passed since John Trautwein's oldest son, Will, had taken his own life. Trautwein, a former Major League Baseball player, was now president and chief operating officer of an information technology solutions company, and president and co-founder of the Will to Live Foundation. He had started the Will to Live foundation to save lives and honour his son, but was concerned about developing a long-term strategy and suitable performance metrics for the organization. He also wanted to identify a suitable balance between his work, his foundation, and his family. Since 2010, Trautwein had delivered many presentations and speeches to schools, teams, coaches, and religious groups in order to spread the message that teen suicide was a national epidemic and that people needed to talk openly and candidly about it. Yet he knew that he could not continue to devote this much time to only one aspect of his life. How could Trautwein grow the foundation while prioritizing his family and his own well-being?
At the dawn of the twenty-first century, Boeing and Airbus, the leading manufacturers of large aircraft, were locked in a battle for market share that drove down prices for their new planes. At about the same time, the two industry heavyweights began developing new aircraft families to address the future market needs they each projected. Aircraft take many years to develop, so by the time the new planes made their inaugural flights, significant changes had occurred in the global environment. First, emerging economies in the Asia-Pacific region and elsewhere were growing rapidly, spawning immediate and long-term demand for more aircraft. At the same time, changes to the market for air travel had created opportunities for new products. These opportunities had not gone unnoticed by potential new entrants, which were positioning themselves to compete against the market leaders. In October 2007, the Airbus superjumbo A380 made its first flight. The A380 carried more passengers than any other plane in history and had been touted as a solution to increased congestion at global mega-hub airports. Four years later the Boeing 787, a smaller long-range aircraft, was launched to service secondary cities in a point-to-point network. The case provides students with an opportunity to analyze the profit potential of the global aircraft manufacturing industry in 2002 and in 2011. Students can also identify the actions of participants that weakened or intensified the pressure on profits within the industry.
Environmental activist groups have traditionally opposed nuclear energy. However, the growing environmental problems associated with global climate change requires major changes to reduce the carbon intensity of electricity generation. Should environmental groups reverse course and support the construction of new nuclear plants--using technology that could be rapidly deployed at scale--to reduce greenhouse gas emissions that are causing global climate change?
An engineer and technology entrepreneur, Nobu Okada, had turned a mid-life crisis into a bold-some would say quixotic-quest to prevent a tragedy of the commons at the global scale. Namely, Okada believed the accumulation of debris in near-Earth orbital space posed a serious threat to a vast array of critical satellites and, thereby, both the modern information economy and the future of human activities in space. Frustrated at what he saw as far too slow a reaction to the threat among major space powers, Okada planned to develop a spacecraft capable of adhering to, and redirecting, that debris. By lowering the costs of debris removal, he hoped to make it routine, even in the absence of government action. As of 2016 his company, Astroscale, which had secured private funding years earlier, was nearing the first demonstration of the technology. This case is intended to help students understand how a tragedy of the commons develops in a specific, nearly textbook example. As important, this case is about potential solutions to the tragedy of the commons when the market and policy both fall short.
In 1950 it looked highly doubtful that Indian democracy would hold -- typical family income was $6 a month, only about 15 percent of the population was literate, there were deep religious and ethnic differences, and more than a dozen national languages were spoken. But after a half a century, India had proved to be the first democracy anywhere near so poor to survive. Why? As well, in 1950 India's economic prospects looked bright for a developing country -- it had a well trained government bureaucracy bequeathed by the British, a secure legal system, national railroads, and more advanced industry than, for example, China. Why did the economy do so poorly?
This case looks at the Ambatovy mining project in Madagascar, which involves exploring and exploiting a giant nickel and cobalt mine near Moramanga, on Madagascar's east coast. The project could bring important economic and social development to Madagascar, one of the poorest countries in the world but requires a high level of commitment to environmental protection along with the support of local communities. The company is developing programs to compensate for its ecological footprint and to achieve the goal of "no net loss" of biodiversity. The case gives a history of the project, the main actions taken, and the results delivered by the company while attempting to engage in "sustainable exploration and exploitation" and to be a "responsible" corporate citizen. The company's perspective of the social, economic, and environmental issues surrounding the project is compared with that of two other stakeholders: the government and local communities.
In 2009, Enbridge announced the Neutral Footprint program to enhance its social licence to operate, increase its corporate responsibility, and in turn improve its corporate reputation through good performance. The program also gave Enbridge an opportunity to provide information about its financial and non-financial performance. By the end of 2012, Enbridge had suffered from unfavourable publicity due to oil spills. It also encountered a great deal of opposition against its proposed Northern Gateway pipeline project. The company’s situation was further complicated by the retirement of its chief executive officer who had started the Neutral Footprint program. Enbridge’s new chief executive officer and president needed to be convinced of the benefits of the Neutral Footprint program, most of which were difficult to quantify. Would the project be cancelled, continue as is it was, or become even more engrained in Enbridge’s culture?
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER -Corporate Social Responsibility Award, European Foundation for Management Development (EFMD) Case Writing Competition</strong></p><br>In the fall of 2013, the family-owned Martin Bauer Group, a German-based company and world leader in the business-to-business market for tea and herbal extracts, became interested in the idea of collaborating with the frugal innovation company EinDollarBrille (OneDollarGlasses). The Martin Bauer Group was engaged in multifaceted corporate social responsibility activities, both domestically and abroad. Specifically, it fostered the development and diffusion of frugal innovations, which were affordable products or services developed under strict financial constraints to cater to low-income individuals in emerging markets. These companies usually worked in collaboration with partners. One such frugal innovation company, OneDollarGlasses, created durable, yet affordable, eyeglasses for people in the African country of Sudan, a prime sourcing market for the Martin Bauer Group. The work of OneDollarGlasses illustrated the reasons, motivations, and challenges that innovators often faced within developed and emerging markets when engaging in corporate social responsibility activities. Should The Martin Bauer Group work with OneDollarGlasses? Could the company be helpful and make a meaningful difference to the people in emerging markets by collaborating with frugal innovators like OneDollarGlasses? What benefits would there be for the Martin Bauer Group if they do?
Jacob Madisson is wondering how General Mills will make it to its goal of sourcing 100% sustainable cocoa by 2020. Demand is increasing and some are wondering if the supply of the precious raw material will dry up. Prices will certainly increase, nevertheless. With only 10% of its African-based cocoa sourced sustainably, General Mills needs a new strategy. How will the company move forward?
The oil and gas industry is one of the largest, most complex, and most important global industries. The industry touches everyone's lives with products such as transportation, heating and electricity fuels, asphalt, lubricants, propane, and thousands of petrochemical products from carpets to eyeglasses to clothing. The industry impacts national security, elections, geo-politics, and international conflicts. The prices of crude oil and natural gas are probably the two most closely watched commodity prices in the global economy. In recent years, the industry has seen many tumultuous events, such as the growth in oil and gas production in the United States; sanctions on Russia and improved international relationships with Iran; continued technological advances in unconventional oil and gas; ongoing strife in Iraq, Libya, and various other oil-exporting nations; continued heated discussion about climate change and non-hydrocarbon sources of energy; and continued uncertainty in crude and gas prices. All of this comes amid predictions that the global demand for energy will increase by 30-40% by 2040.
A product market firm faces an inventory investment decision in the face of demand uncertainty. To hedge against some of the uncertainty, the firm contemplates an additional fixed investment that would offer the flexibility of diverting inventory in case of weak sales. In a follow-up case, the repercussions of this flexibility are explored.
This is a follow-up case to "Curtis LLP: A Case on Cases." It explores the challenges facing debtors when dealing with borrowing firms that have operational flexibility.
BancoSol, a microfinance bank headquartered in La Paz, Bolivia, was forced to adjust its lending strategy and business model because of a regulatory change. 60% of the bank's lending portfolio would have to move to the productive sector of the Bolivian economy by 2018, and these loans would have a controlled interest rate of 11.5%. How would BancoSol meet these targets, fulfill its mission, and remain profitable?
Two undergraduate business students wanted to assess the feasibility of starting a business that would sell an all-natural and completely biodegradable alternative toothbrush - the Miswak. A total of $50,000 had already been secured for the initial investment; however, the young partners wondered whether this investment would be sufficient to sustain the cash flows of the business for its first three years of operations and, if not, how much additional funding would be needed. To discover whether their proposed venture would be feasible, the pair set out to perform a variety of qualitative and quantitative analyses.
This case describes how Hong Kong Broadband Network (HKBN), a leading provider of broadband, IPTV, and long-distance services in Hong Kong with approximately 2 million Internet subscribers, went through a management buyout (MBO) transaction with CVC Capital Partners (CVC), a global private equity investment firm. Subsequently, the case describes how HKBN's unique corporate culture, particularly its Co-Ownership scheme, led the company from an MBO to a successful IPO. In May 2012, CVC along with key management team members purchased HKBN from Ricky Wong, a well-known Hong Kong entrepreneur in the technology, media, and telecommunications (TMT) industry, and completed the MBO transaction. Through a series of value-added efforts made by both the management team and the CVC team, two years and 10 months after the MBO, HKBN made an IPO in early 2015, resulting in HKBN being one of the few successful MBO transactions in Asia. What are the key factors that contributed to this success within a short time? How should the management team ensure that these success factors, particularly the Co-Ownership scheme, continue to guide HKBN to success in its industry?