The Dutch company HEINEKEN, one of the leading global brewers known for its brands like Heineken, Amstel, or Desperados and for its award-winning marketing campaigns, seeks to closely integrate its long-term sustainability "Brewing a Better World"-approach into its corporate strategy. HEINEKEN had set itself ambitious 2015 and 2020 sustainability targets in six pillar areas around Energy/CO2, Water, Sustainable Sourcing, Responsible Consumption, Community/Inclusive Growth, and Health & Safety. The case zooms in on HEINEKEN's efforts in the sustainable sourcing pillar, with its work on farming standards and supplier code as well as its support for local sourcing programs in the growing African market. HEINEKEN's management finds that marketing its achievements in these sustainability areas poses new challenges though. For example, its current "mass-balance" sourcing in which sustainable and traditional material got mixed in the supply chain did not allow for effective communication on a given bottle. But was this reason enough to try to move to "segregated" sourcing, if that was even reasonable?
Susie Mulder must decide how to lead NIC+ZOE-the women's apparel brand she had recently joined as CEO-from its start-up phase into a disciplined growth phase. With growing revenues, a successful product line, and savvy private equity investors, NIC+ZOE seems perfectly positioned for growth, but the company is struggling to execute efficiently, and senior managers are torn about a key decision: whether to go into e-commerce or not.
Unique among the world's countries, the Himalayan Kingdom of Bhutan had abandoned the traditional policy goal of increasing Gross Domestic Product (GDP) in favor of pursuing Gross National Happiness (GNH). Famously, Bhutan ranked highly on lists of the happiest countries in spite of a tumultuous history, a low life expectancy, a dismal literacy rate, a small and undiversified economy, and low GDP per capita. Everyone, it seemed, from tourists and Hollywood screenwriters to leading development economists, looked to Bhutan for enlightenment and perspective on crises both personal and global. GNH had become the country's brand and suggested a possible future for capitalism. Was Bhutan on to something? Was there really a tradeoff between growth and happiness, and, if so, was it acceptable? In early 2014, Bhutan's newly minted Prime Minister Tshering Tobgay was faced with these questions as he deliberated on whether to approve a massive new Bhutanese-Indian hydropower collaboration that experts argued would provide energy, foreign exchange, and invaluable jobs, but which also risked undermining the country's brand as well as its happiness.
SABMiller, the world’s second largest brewer, has developed a business model in Mozambique that represents a radical departure from the firm’s traditional approach to beer production. Despite this multinational’s well-developed global supply chains and heavily centralized processes, it has disrupted both established processes and products and has, instead, innovated to produce a cassava-based beer in an effort to serve the low-income consumers who comprise the bulk of the African economic pyramid. In a marked departure from corporate best practices, the manufacturing process begins outside of the brewery and in the vicinity of the scattered and rural cassava farming plots.
Teofilo Oil Services was a privately owned Brazilian oil services and production company. Roberto Teofilo, the owner, had started the company in 2000. Originally founded to provide oil field services, it had eventually moved into field operations management, and was now expanding into full field production. The company would now be investing significantly in field licenses and well work (revitalization of an older closed field), and not just providing fee-based services. The Brazilian government was about to ask for tenders on a number of fields, and Teofilo was interested in Field 17A. The current challenge was to decide if and, if so, how much to bid on the closed field.
Ideas Kitchen is a medium-sized kitchen maker that specializes in customizing the modular kitchen. As a result, it has built a loyal customer base. Business has been relatively good for Ideas Kitchen, and the company has been doing well financially. It has been capitalizing on the burgeoning growth of the modular kitchen market in India. However, several foreign players have begun entering the Indian market and almost all of them have been expanding at a rapid pace either through franchise models or by opening showrooms in a number of cities. The founder of Ideas Kitchen is in a dilemma about whether to stay a niche business or to take a bold step toward expanding product range and geographical reach.
In April 2014, Alibaba's impending initial public offering (IPO) projected to be among the world's largest IPOs. Alibaba faced many choices regarding ownership structure, trading location, IPO pricing and IPO timing. The Hong Kong Stock Exchange seemed like a natural fit for its IPO due to geographical, cultural and language proximity. Furthermore, 86.7 per cent of Alibaba's revenues originated within China. However, Alibaba insisted on "partnership governance," and the Hong Kong Stock Exchange did not allow listing of companies with dual-class share structure. In contrast, the New York Stock Exchange and NASDAQ did not object to Alibaba's proposed ownership structure. While the Hong Kong investors knew Alibaba's business better, the New York exchanges provided more liquidity and visibility. Against this backdrop, Alibaba needed to make difficult decisions regarding its IPO.
During Sir Robert Wilson's 30+-year Rio Tinto career, the company evolved from taking a reactive response to external stakeholder criticism to a proactive position to help the mining industry embrace sustainable development practices. Wilson championed Rio Tinto's efforts to transform the company with initiatives such as those that countered apartheid in South Africa; introduced conservation programs in Madagascar and Western Australia; and established the Inland Sea Shorebird Reserve project in Utah-efforts which have all become models for the mining industry. He championed the Global Mining Initiative and the Mining Minerals and Sustainable Development project to encourage the improvement of industry sustainable development practices thorough shared learning and dialogue. Along with 40 transnational companies, Rio Tinto signed the Global Compact, which supported the promotion of sustainable development. Despite all of these activities, Rio Tinto encountered significant criticism from a variety of stakeholders. As Sir Robert Wilson prepared to hand over the reins of the company to oil industry veteran Paul Skinner, he contemplated the insights he would pass along to his successor. He was certain that society's expectations of the corporate responsibility of all industry, and especially of MNCs, were going to continue to increase. He was also certain that sustainable development had to be more than a one-off effect on communities in which they operate. Yet, there were important questions to be answered: Sustainable development sounded good, but could Rio Tinto make the business case for embracing this approach? Why had some stakeholder groups persisted in believing that a mining company claiming to embrace sustainable development was a sham? What steps would he recommend that Skinner take to continue Rio Tinto's sustainable development agenda?
Tom Henderson, engineering manager and 10-year veteran of ABCO, leads the 25-member Omega product development team. While presenting his team's performance data at a monthly briefing meeting, Henderson is subjected to the verbal jabs of Bill Fenner, ABCO's VP of Distributed Services. As the meeting progresses, Fenner becomes increasingly aggressive, causing Henderson to falter in front of his colleagues and senior executives. After learning that their boss has been "shredded" by Fenner, the Omega team reduces its exceptional performance. Part B (in the Teaching Note) reveals Henderson's next actions. Part C (also in the Teaching Note) concludes with longer-term consequences for Henderson and ABCO.
In 2014, Khuram Mir, CEO of HN Agri Serve, an innovative apple orchard company in the Kashmir region of Northern India, wonders about the best growth strategy for his company.
Christopher Lenard and his longtime friend Kimberly Slater are exploring the idea of developing a student-housing complex near the University of Wisconsin, Madison, by replicating Slater's highly successful, similar development near the University of Florida. Madison seemed to present attractive market and demographic conditions for investment in student housing in the summer of 2012. But before committing a large share of his personal wealth to the project, Lenard needs to conduct a more careful analysis of its potential risks and returns. By putting themselves into the shoes of a budding real estate entrepreneur, students will evaluate both the merits and pitfalls of various approaches to the financial analysis of real estate development projects.
During December 2012, Jorge Paulo Lemann, a co-founder and partner at 3G, proposed to Warren Buffett that 3G and Berkshire Hathaway acquire H. J. Heinz Company. Lemann and Buffett, who had known each other for years, jointly decided that the Heinz turnaround had been successful and that there was significant potential for continued global growth. 3G informed Heinz CEO William Johnson that it and Berkshire Hathaway were interested in jointly acquiring his company. Johnson then presented the investors' offer of $70 per share of outstanding common stock to the Heinz board. After much discussion, the Heinz board and its advisors informed 3G that without better financial terms they would not continue to discuss the possibility of an acquisition. Two days later, 3G and Berkshire Hathaway returned with a revised proposal of $72.50 per share, for a total transaction value of $28 billion (including Heinz's outstanding debt). Following a forty-day "go-shop" period, Heinz, 3G, and Berkshire Hathaway agreed to sign the deal. But was this, in fact, a fair deal? And what might be the future consequences for shareholders, management, employees, and citizens of Pittsburgh, the location of the company's headquarters? Last, what was the role of activist investors in bringing Heinz to this deal stage?
The director of Planning and Development Services for the City of Prince Albert, Saskatchewan, is evaluating various models of regional economic development. He needs to recommend to the Economic Development Committee whether an in-house, arm's-length or blended model would be best for the City of Prince Albert and its surrounding region. He also needs to provide direction on the strategic planning process that should follow the formation of a new regional body. Although the director is optimistic about the possibilities, he knows that some stakeholders perceive the City of Prince Albert as fostering an attitude counter to inclusiveness. Gaining buy-in from these stakeholders is critical to success, regardless of the model he proposes.
This case has been taught successfully in a second-year MBA elective, "Management of Service Operations," in a module on service system design. The material works well to unfold with Frances Frei's service model framework. Ari Straus, a former customer of Monticello Motor Club (MMC), brought that customer perspective with him to take on the roles of CEO and president. MMC was a high-end service business with an exclusive clientele. As much as the asphalt track, racecars, and clubhouse facilities attracted members and guests, the staff's professionalism and personal touch kept them coming back and kept them recommending the club to their acquaintances.
This case explores how a hiring manager at LinkedIn uses a selection interview to ensure a new employee fits the organization's values and culture. This selection interview provides a glimpse into how this manager puts the organization's values and culture into practice while recruiting a new employee. The case provides students with background information about LinkedIn's growth and success, its culture, and the value CEO Jeff Weiner's places on compassion. It also introduces Ryan Giles, a hiring manager at LinkedIn who poses an interview question to Lindsay Reed, a student pursuing an internship with LinkedIn. The case puts the student in the role of Lindsay as she debates the best way to answer the interview question. The epilogue to the teaching note describes Lindsay's answer as well as Ryan's explanation as to why he used this approach.
Dhamani started as a loose gemstone dealer in 1969 in Jaipur, India. By the 2000s, it was headquartered in Dubai, United Arab Emirates and had expanded into diamonds and retail. The family business was now in its second generation of leadership and aimed to become a top global jewelry brand within the next 10 years. The family had been successful throughout its various inflection points in the past-had it positioned itself well to soon begin competing with the global, high-end jewelry houses such as Cartier and Bulgari?