Globally acclaimed singer, actor, author and Grammy Award winner Ricky Martin “decided [on March 29, 2010] to put an end to the hell that was going on inside [his] mind” by using Twitter to openly declare his homosexuality. Issues posed by the revelation included: What options were available to Martin’s management before and after the revelation in order to effectively deal with situations that could have jeopardized Martin’s career and future projects? Should those close to Martin have planned for a potential brand repositioning strategy? If so, how should they have handled it?
In September 2008, the CEO of Rainbow Group, a Chinese group of companies specializing in environmental protection services, was in Beijing, China, thinking about his experience that evening. A few hours ago, eight senior executives from Rainbow Group’s subsidiary in Hangzhou had come to Beijing requesting that the CEO fire their general manager, who had been appointed by the CEO only six months ago. This manager had taken control of the Hangzhou subsidiary with ambitious efforts to implement lean management and better cost control, but had met resistance from the other managers. The CEO was reviewing this appointment and thinking hard. What was the problem? What should he do?
In 2014, Paris Baguette was the largest bakery chain in South Korea with 3,200 stores throughout the country and 178 locations in China, Southeast Asia and the United States. Since 1988, the company had vertically integrated with ingredient suppliers and developed its own food processing capability, giving it considerable control over the value chain. In addition, it had developed an innovative franchise arrangement that allowed for improved cash flow from operations. However, in response to domestic market saturation, intense competition from local and multinational bakery chains and independent bakeries and a recent change in government regulations, its chief executive officer is wondering how best to achieve his goal of operating 6,000 stores in 60 countries worldwide and achieving revenue of KRW4 trillion by 2020. He is also considering whether it would be better to focus instead on improving the profitability of the company’s domestic operations and delay his expansion plans.
In 2010, Human Rights Watch, a well-regarded international NGO, approached Barrick Gold asserting that members of the company's security force at the Porgera Gold Mine in Papua New Guinea had on multiple occasions raped women who were trespassing onto the mine's waste dumps in search of gold. Subsequent investigations identified significant evidence to support the allegations, and the revelations led to broad ranging change at both Porgera and at Barrick more generally. Drawing heavily on the United Nation's Guiding Principles on Business and Human Rights (GPs), Barrick not only moved to make efforts to provide restitution to the women involved, but also designed and rolled out a comprehensive set of policies designed to embed the protection of human rights into the entire company. Barrick also played a central role in leading the development of an auditing and verification framework for the Voluntary Principles on Security and Human Rights (the VPs), a set of commitments embraced by most of the world's largest extractive companies. The case provides students with an opportunity to analyze the challenges that arise from operating in environments with weak state institutions; to examine the challenges of implementing voluntary frameworks, such as the GPs or VPs, and their potential as alternatives to state institutions; to learn about the field of business and human rights; and to develop an analytic framework for evaluating the responsibilities of business leaders to society, especially from the perspective of human rights.
In 2014, Paris Baguette was the largest bakery chain in South Korea with 3,200 stores throughout the country and 178 locations in China, Southeast Asia and the United States. Since 1988, the company had vertically integrated with ingredient suppliers and developed its own food processing capability, giving it considerable control over the value chain. In addition, it had developed an innovative franchise arrangement that allowed for improved cash flow from operations. However, in response to domestic market saturation, intense competition from local and multinational bakery chains and independent bakeries and a recent change in government regulations, its chief executive officer is wondering how best to achieve his goal of operating 6,000 stores in 60 countries worldwide and achieving revenue of KRW4 trillion by 2020. He is also considering whether it would be better to focus instead on improving the profitability of the company's domestic operations and delay his expansion plans.
This technical note explores one of the most important topics for firms and their managers: labor. In particular, how many people should a firm hire, and how much should they be paid? The note uses the example of Wail Al-Hayani, the owner of a kitchen that provides fresh prepared food to quick-service restaurants, to explore hiring decisions and setting wages and salaries-and the marginal values that matter. If Al-Hayani hires more workers, it would mean extra output and revenue, so long as the value of the marginal product of labor exceeds the wage. To maximize profits, a competitive firm should hire workers up to the point where the value of the marginal product of labor equals the wage.
Most talented executives can recognize when an acquisition has strategic or financial benefits, and in this case, the decision to be acquired was an appropriate exit strategy for a successful start-up. Peter Street's start-up had been growing quickly and was building a reputation for reliability in a booming industry when a Japanese firm offered to pay a premium for the U.S. firm. Having done business in Japan (and extensively with the acquiring company) before the sale of his company, Street entered the acquisition with enthusiasm. As part of the deal, Street's former company would continue to operate in the United States as a division of its parent company and Street would remain as CEO. A few months into the transition, however, Street discovered a huge difference between working with and working for the Japanese firm. Cultural norms for confronting seemingly small problems quickly became bigger operational issues, and Street experienced a growing dichotomy between corporate (in Japan) and his division (in the United States). This case focuses on the challenges of implementing a cross-border acquisition.
Germany's Chancellor Angela Merkel faced economic and moral pressure to encourage greater immigration from struggling European, and especially Eurozone, countries after the economic downturn that began in 2008. In fact, it was possible that both the Euro currency union and the European political union depended on increasing migration across member countries, including into Germany. But German domestic politics made Merkel's decision a difficult one. Instructors may also obtain a Teaching Note, written by this case's author, that provides suggestions for using this case effectively in the classroom.
Tracks the first six months of a recent MBA grad, Tim Keller, at Katzenbach Partners, a boutique consulting firm focused on organizational change and strategy. Covers how Keller initially struggles with his assignment and ends with a question of whether or not he should attend a meeting that he was not invited to, where more senior consultants plan to implement the system dynamics tool that he was responsible for creating-on a Sunday when he had a major personal engagement.
The Ethics Advisory Committee of the Institute of Chartered Accountants in England and Wales (ICAEW) provides training and support for member Chartered Accountants to help them deal with difficult professional situations. Members can seek help through through call centers and in person meetings with accounting experts in the field to discuss how to best handle difficult situations. In addition, the Ethics Advisory Committee meets regularly to identify new issues that raise questions for professional standards. This case examines professional standards for ICAEW Chartered Accountants and a number of challenging ethical situations that members have faced.
This case introduces students to the topic of mergers and acquisitions. At the time that Microsoft purchased aQuantive there was a mixed reaction by analysts and investors on whether this transaction would increase shareholder value. Ultimately the transaction turned out to be a colossal failure, and Microsoft received a substantial amount of bad press. This case allows students to discuss firm's grow strategies (through mergers and acquisitions vs. organic growth) from both an economic perspective and through the accounting lens. The case offers an opportunity to introduce accounting for mergers and acquisitions, i.e., purchase price allocation rules, and other specific accounting issues associated with mergers and acquisitions in the internet advertising setting.
In April 2014, Hector Guerra (GMP 16) was discussing his company's dilemma with his living group of the General Management Program (GMP) at the Harvard Business School. Guerra was Vice President of Operations at Evans Food, a $100 million company, which produced pork rinds - salty snacks made out of pork skin - and sold at some of the largest US retailers such as HEB, Meijer, ALDI and Wal-Mart. In the last few years, the cost of pork skin had increased dramatically but Evans Food's selling price to its customers had not kept pace with the increase in raw material costs. The company was losing money on some of the largest accounts but it seemed difficult, if not impossible, to seek price increase from multibillion-dollar retailers.
In 2015, the I-PASS Patient Handoff Program Team, led by six pediatricians around the U.S., had to determine the best way to disseminate their program that had been proven to reduce communication errors in patient handoffs in hospital settings. Should they turn it into a standalone business, continue publishing in academic journals, license their content to an established medical vendor, or do some combination of these? This case allows students to develop and evaluate approaches to disseminating simple and proven innovations with complex service settings.
The University of Regina faculty association and the University of Regina administration are entering into contract negotiations just six months after settling their previous contract through mediation. Although the two parties have both conflicting and compatible interests regarding the ultimate collective agreement outcomes, their strained relationship complicates the bargaining process.
The University of Regina faculty association and the University of Regina administration are entering into contract negotiations just six months after settling their previous contract through mediation. Although the two parties have both conflicting and compatible interests regarding the ultimate collective agreement outcomes, their strained relationship complicates the bargaining process.
In late January 2009, the assistant deputy minister of Industry Canada was considering how to design the Knowledge Infrastructure Program, which had unexpectedly been assigned to the department in the recent federal budget. A $2 billion spending program focused on knowledge infrastructure, its projects were required to be completed within two years. The immediate goals were to provide a significant short-term economic stimulus and help create jobs during the economic recession. The long-term objective was to fund the modernization plans of universities and colleges. However, there were severe challenges that had to be met: the program must begin within 120 days; there were significant staff constraints in the department; the regulatory process and Auditor General's standards must be followed and met; accountability standards had to be addressed; and the political element (both federal and provincial) of project selection must be taken into account. How could the program be designed and administered quickly despite the department`s limited capacity?
This case assesses Actis' optimal exit route for Umeme, a Ugandan electricity distribution company in their investment portfolio. Actis, a private equity firm that invests exclusively in Africa, Asia, and Latin America, had spent seven years substantially transforming Umeme. In their search for a suitable exit, the partners at Actis weighed their ability to leave Umeme well positioned to continue the operational and financial improvements that Actis had made during their investment period, while also ensuring a robust return for Actis' investors. By exploring the various routes available to Actis, this case demonstrates the factors at play in the creation of social and economic gains through private equity investment.
In late January 2009, the assistant deputy minister of Industry Canada was considering how to design the Knowledge Infrastructure Program, which had unexpectedly been assigned to the department in the recent federal budget. A $2 billion spending program focused on knowledge infrastructure, its projects were required to be completed within two years. The immediate goals were to provide a significant short-term economic stimulus and help create jobs during the economic recession. The long-term objective was to fund the modernization plans of universities and colleges. However, there were severe challenges that had to be met: the program must begin within 120 days; there were significant staff constraints in the department; the regulatory process and Auditor General’s standards must be followed and met; accountability standards had to be addressed; and the political element (both federal and provincial) of project selection must be taken into account. How could the program be designed and administered quickly despite the department`s limited capacity?