This case study is set in Harvard Square in 2012-2013, and explores how a diverse group of local stakeholders (e.g. the Cambridge Police Department, city agencies, churches, nonprofit service providers, Harvard Square businesses) comes together to understand and respond to the influx of "travelers." These young homeless individuals travel from city to city in a nomadic way, and Harvard Square has become more popular on the travelers' circuit. The travelers' aggressive behavior and drug use challenge local stakeholders who have developed reasonably effective strategies to support the chronically homeless population on Cambridge streets. Better forms of collaboration and collective action are required to address this new set of challenges. This case study describes the stakeholders involved, the multiple interests at stake, and the broader context in which collaboration and collective action must take place.
The case follows Scott Painter and his executive team as they deal with a crisis that threatens the survival of TrueCar, a company founded by Painter to improve consumers' car buying experiences. TrueCar's automotive dealer network, from which the company earns its revenue, is rapidly declining in size as dealers leave to protest TrueCar's practices. The case also describes Painter's career and his personality as context for the situation. Painter and his team must persuade dealers to rejoin its network in order to survive, which will require the company to rethink its identity.
This case focuses on the investment strategy employed by 500 Startups, an early-stage investment firm founded by Dave McClure. McClure, an outspoken personality in Silicon Valley, believes that the venture capital industry is not innovating quickly enough to adapt to large-scale changes. The cost of starting a company has plummeted over time, enabling investors to write smaller and smaller checks. The exit options for companies have expanded, allowing investors to realize returns earlier than in the past, though typically at lower valuations. Major customer acquisition platforms are enabling startups to disrupt traditional businesses. Finally, opportunities for investment abound overseas in rapidly growing emerging markets, in McClure's opinion. Though not everyone in Silicon Valley agrees with all of McClure ideas, he seeks to scale 500 Startups into the first "guild-based" international venture capital firm.
Four managers at Jones Schilling, an Asia-based retailer, are preparing to coach their Gen Y employees on how they can better contribute to the firm's performance. Each of these managers needs to coach an employee with distinct issues.
This case is about government bonds, using specific bonds issued by the UK Government. It can be used to teach the basics of time value of money and discounting cash flows. But it can also be used to delve into fundamental issues surrounding bond valuation and bond pricing methodologies, as well as to explore more general topics such as corporate financing. Finally, the case serves as an introduction to the yield curve, its role and interpretation, an understanding of the risk of investing in bonds, and a discussion on risk-free rates and sovereign risk. The case provides the opportunity to emphasize important concepts such as: (1) Time value of money; (2) Net present value (NPV) and internal rate of return (IRR); (3) Valuing bonds by discounted cash flows (DCF); (4) Difference between yield to maturity (YTM) and coupon rate; (5) Above or below par; (6) Relative attractiveness of long vs. short bond maturity and when it is most appropriate to use each type; (7) Liquidity and bond pricing; (8) Yield curve shape; (9) Sovereign bond spreads. Learning objectives: Participants will also have the chance to work on several practical problems during class, such as: (1) Discounting cash flows and computing NPV; (2) Estimating the yield to maturity for a given price and coupon rate (e.g. IRR); (3) Understanding the risk of investing in bonds with different maturities. This case has been used effectively with MBAs and executives alike, in sessions running from 90 minutes to three hours, and with audiences from around the world. The case is also suitable for distance learning programs, including online degree and post-graduate courses in basic finance.
This case looks at the impact of an innovative digital marketing campaign on bringing new customers and increasing brand awareness and recognition.It is set in September 2013, when Groupon India, a local e-commerce marketplace, decided to sell onions online. The price of onions in India had been rising sharply throughout 2013, making this humble vegetable nearly unaffordable for the average Indian household. With the idea of launching a bold public relations campaign, the marketing team proposed selling onions on its website at a heavily discounted price. The deal, which was accompanied by a tongue-in-cheek advertising campaign, was an immediate hit. At the end of seven days, Groupon India had acquired 15,000 new and the daily average value of business had increased by an impressive 50% over the seven days of the promotion. The media coverage of the deal was even more remarkable - both the Indian and the global press couldn't get enough of what was being termed as "the great onion digital deal". Now Ankur Warikoo, head of Groupon India, is thinking ahead. How will he ensure that the new and existing customers drawn in by the onion bargain continue to spend on his company's website? How can he convert the strides made in brand recognition into brand loyalty?
Headquartered in Mississauga, Ontario, Kat Rose was founded in 2009 to produce small strategic business conferences and corporate hospitality events. After mixed success, it was presented with an opportunity in 2011 to organize a cricket match in Toronto. Although sports were not on its radar, the company decided to use the project as a base for expansion. It put in place an aggressive advertising plan, largely aimed at South Asian and West Indian communities in the city who were fans of the game, and contracted Universal Productions, an ethnic marketing agency, to procure sponsorships. However, with only 10 weeks to go before the International Cricket All-Star T20 Match was scheduled to kick off on May 12, 2012 at the Rogers Centre, Toronto, only $60,000 had been raised; $750,000 was needed to break even. Management had four choices: give Universal Productions more time, offer it a financial incentive to step up performance, switch to another agency with a proven track record in this field or increase its own in-house sales force to focus on countertrade barter agreements. Each option required different skills, knowledge, experience and risk. Given the severe time constraint, any change must be implemented immediately. What should Kat Rose do?
It is year-end 2013 and management at Gabriel Resources, a Canadian junior mining corporation, is attempting to handle investor relations and political tensions surrounding its Rosia Montana mine project in Romania. Recently, the Romanian Parliament voted overwhelmingly against granting the final permit for the gold and silver mine until a more thorough environmental and legal framework is established. Although the company promises that its project will bring significant financial benefits to the state and needed infrastructure improvements and employment in the region, both national and international civilian and non-governmental organizations have protested vociferously against a development that they see harming not only the fragile geographic ecosystem but also historical artifacts that have been a major tourist draw. The draft bill was set to allow the company to begin work on developing the potentially lucrative mine, which has been 15 years in the making and has not yet generated any revenues. Investors are worried and the company's share price is sinking. How can the company calm shareholder panic and negative stock price movement? What can it do to persuade the Romanian government and people to support the mine?
The Anheuser-Busch InBev case represents a major cross-border M&A transaction. Because the material covers a large, well-known transaction involving food and beverage companies, students can focus on both the strategic rationale behind the transaction as well as understand the various valuation issues associated with any M&A deal-including some specific to cross-border M&A, such as currency conversion of foreign sales. The material includes both student and instructor spreadsheets.
The Anheuser-Busch InBev case represents a major cross-border M&A transaction. Because the material covers a large, well-known transaction involving food and beverage companies, students can focus on both the strategic rationale behind the transaction as well as understand the various valuation issues associated with any M&A deal-including some specific to cross-border M&A, such as currency conversion of foreign sales. The material includes both student and instructor spreadsheets.
The CEO of clothing manufacturer and retailer Abercrombie and Fitch defends his decision that the company will not offer plus sizes for women, although extra large sizes are available for men, because average- to large-sized female consumers do not fit the company’s target market. This insistence on a standard of female beauty as young, svelte and tall has enraged consumers who have criticized the company, and the CEO in particular, in both the traditional and social media for exacerbating problems of body image and gender stereotypes, especially among teens. Increasing sizes, however, presents not only logistical and manufacturing challenges but may lead to charges that the company is encouraging obesity and unhealthy lifestyles as happened when a competitor, H&M, introduced large-size models and mannequins in its stores. Abercrombie and Fitch’s popularity with its target teen market depends on its promulgation of exclusivity, which in turn depends on its vision of what is “cool.” Yet, in the face of mounting criticism and declining sales, does sticking to the segmentation strategy make sense?
China's healthcare reforms in the 1980s left the country's hospitals under-subsidized and its medical officials underpaid. Hospitals relied on profits generated from the provision of medical services to cover the funding gap, while doctors became kickback seekers to make up for their low rates. In traditional markets, global pharmaceutical companies ("pharm companies") are no strangers to wooing hospitals and doctors to favor prescriptions of their drugs. These questionable "marketing" practices were taken to the next level in the China market. Streams of financial flows, legal or not, from pharm companies to hospitals and doctors to win their favor in prescribing their drugs became a structurally embedded problem of the country's healthcare system. The Chinese government introduced a new round of reform in 2009. While it promises to spend millions more on healthcare, its action to wipe out bribery and other kickback-seeking behaviors of the industry left many players perplexed. The first to take the heat was GlaxoSmithKline Inc. ("GSK"), a large British pharm company active in the China market since 1984. In July 2013, the Chinese government launched an investigation on GSK's China operation regarding its activities that lure hospitals doctors and administers to buy GSK drugs. The alleged practice of bribery is an industry open secret common to pharm companies. Is this investigation an indication that the Chinese government is targeting multinationals in favor of local players? Despite high-voltage growth rates, this regulated industry in the market economy with Chinese characteristics only has a bare-boned distributions infrastructure, while it is filled with patient-trying administrative hurdles, has price restrictions on an expanded list of drugs, and offers weak institutional protection for companies' intellectual property. Will long-term investment in the country pay off? Should GSK continue its China business? Should it change its strategy in China?
Organizing speedy and efficient supply operations for unpredictable major natural disasters was a continuing challenge for the U.S. military, and the 2010 earthquake in Haiti was both unique in its operational scope and political complexity. As he reviewed the after-action reports, George Topic, the Vice Director of the Center for Joint and Strategic Logistics at the National Defense University wondered how the performance of disaster relief efforts should really be measured. How should the efficiency of the response be characterized? He wondered if they could overcome some of the hurdles to applying concepts from commercial supply chains. The case explores some of the lessons learned from the Haiti disaster, and offers an opportunity to test well-known supply chain concepts.
In May 2012, Harvard University and the Massachusetts Institute of Technology (MIT) founded edX, a new non-profit joint venture that would provide a platform for massive open online courses (MOOCs). edX did not produce original courses or instructional content-it made a web platform through which Harvard and MIT, and subsequently dozens more "partner" universities, could offer their lecture courses as MOOCs. While the future role of MOOCs in higher education remained a topic of public debate, edX needed to answer concrete managerial and strategic questions. For example, what should edX's scope be? Should edX try to develop a consumer brand of its own, or rely on the brands of its partners? And how could edX monetize its services to recoup Harvard and MIT's investments and reward participating universities? This case presented the history of edX and the online education market as background for a discussion about edX's strategic choices.
In 2003, Radiometer was the world's leading supplier of blood gas analysis equipment and accessories for critical care patients. Based in Denmark, Radiometer sold through a combination of sales subsidiaries and distributors around the world, and generated sales of over DKr 1,791 million ($272 million). Blood gas analysis formed part of the $27.7 billion in-vitro diagnostic market. Although sales were strong, Radiometer remained focused on its future. The market for blood gas analysis was growing slowly, driven mainly by new technologies that threatened to displace the high volume testing equipment that Radiometer supplied. Radiometer's recent attempts at competing in these new technologies had failed. Should it remain focused on blood gas analysis and redouble its efforts? Or should it turn to other opportunities for growth? CEO and controlling stockholder, Johan Schroder, had denied rumors of a potential sale, but an acquisition by a stronger partner could help the company expand into the United States. How should the company position itself for future success?
This supplemental case follows up on the Netflix Prize Contest described in Netflix: Designing the Netflix Prize (A). In the A case, Netflix CEO Reed Hastings must decide how to organize a crowdsourcing contest to improve the algorithms for Netflix's movie recommendation software. The B case follows the contest from the building of the platform in 2006 to the awarding of the highest prize in 2009. The B cause also considers the aftermath of the contest, and the issues of successfully implementing a winning idea from a contest.
Describes the challenges facing Dr. John Noseworthy, President and CEO, in implementing a long-term strategy for the growth of the Mayo Clinic-a leading academic medical center with a reputation for excellence in tertiary and quaternary health care. The case highlights the concurrent forces of regional and national competition and federal health care reform as factors complicating the plans of Mayo Clinic to grow through several channels. Students must ultimately decide whether Mayo Clinic should focus its future growth on its current areas of expertise (regional provision of integrated medical care and international provision of tertiary and quaternary care), new opportunities in a broader range of services and treatment channels (e.g., telemedicine, mobile health, enterprise learning and training for other health care systems), or some combination of these opportunities.
In 2013, democratic Colorado state senators John Morse and Angela Giron were recalled from office in the wake of a successful recall campaign launched by grassroots groups angered by the senators' support for newly-enacted gun control legislation. After Morse and Giron were recalled, Democrats retained a one-seat majority in the Senate. Some critics thought Morse should have anticipated the recall election result and resigned while others expressed concern that Morse's ouster had legitimized the use of recall politics-typically used to unseat politicians over ethical issues-as a way for voters to punish supporters of controversial issues. The case asks students to consider the benefits and drawbacks of recall elections and how they can be used by political activists and interest groups as a tool to manage political representation.
This case describes the challenges facing CEO Kent Thiry and DaVita as they being thinking about how to integrate a recent acquisition, Health Care Partners (HCP). DaVita had been primarily a kidney dialysis company with a very strong culture built around teamwork, fun, continuous improvement, accountability, and service. The senior management saw DaVita as "a community first and a company second." HCP was an integrated health care provider with a substantially different workforce from DaVita. The case describes the history of DaVita, its industry, its unique culture, and its success over the previous 15 years. It provides a detailed description of how the culture was developed and managed through the use of a series of processes and events including the careful use of language, symbols, and traditions (the company is a "village," team members are "citizens," the use of slogans such as "one for all and all for one," three musketeer costumes, wide sharing of information, involvement of team members, extensive recognition and reward programs, investment in training and socialization, and even a company song). This culture was a competitive advantage in DaVita's financial success by attracting and retaining staff and patients, maintaining control of costs, and improving clinical outcomes. The new challenge was whether this culture could, or should, be exported to Health Care Partners.