The National Basketball Association (NBA) is one of the most successful sports leagues in the world. Under the leadership of David Stern, the NBA has undergone unprecedented globalization. An NBA game in 2007 between the Rockets and Bucks — featuring the meeting of two Chinese players — drew an estimated 250 million television viewers in China. In 2008, a local, independent company, NBA China, was created and majority-controlled by the NBA, taking the NBA’s business in China to the next level. Up until now, China has been the NBA’s number one market outside the United States by a large margin. However, nothing comes easily. Social networking services have developed quickly, redefining how fans watch games and interact with each other; the traditional merchandise strategy based on franchised stores is being challenged by booming online businesses; the annual NBA China Games are no longer able to satiate Chinese fans’ growing appetite for games; relations with the government-affiliated Chinese Basketball Association are tense; and no Chinese have played in the NBA since Yao Ming’s retirement. Facing all these challenges in a nation with an entirely foreign system and culture, what should the new CEO of NBA China do?
Since 1976, Yamato had enjoyed steady growth in the Japanese domestic parcel delivery market. Yamato had maintained its leading position in Japan through its highly acclaimed TA-Q-BIN service. However, with changing demographics and market conditions, the business landscape had been changing. Overdependence on the domestic delivery business limited the overall growth of Yamato. Furthermore, the growth of the TA-Q-BIN business in Japan was limited by the stagnant growth of Japan's economy. Makoto Kigawa, president and then chairman of Yamato Transport, had been relentlessly pursuing business restructuring as well as promoting productivity improvements. His goal was to increase the share of the delivery business related to overseas markets from four to twenty per cent of total revenue by the time of Yamato's centennial celebrations in 2019. How could he successfully implement the TA-Q-BIN service system in overseas markets such as Taiwan, Singapore, Shanghai, Hong Kong and Malaysia?
Namo Alloys, a medium-size, secondary-metal manufacturing firm, is seeking to expand by investing in new technology. The co-founder's challenge is to select a technology that aligns with the company's sustainable manufacturing philosophy by creating not only economic value but also sustainable societal and environmental values that will ensure triple bottom line value creation for all company stakeholders.
The National Basketball Association (NBA) is one of the most successful sports leagues in the world. Under the leadership of David Stern, the NBA has undergone unprecedented globalization. An NBA game in 2007 between the Rockets and Bucks - featuring the meeting of two Chinese players - drew an estimated 250 million television viewers in China. In 2008, a local, independent company, NBA China, was created and majority-controlled by the NBA, taking the NBA's business in China to the next level. Up until now, China has been the NBA's number one market outside the United States by a large margin. However, nothing comes easily. Social networking services have developed quickly, redefining how fans watch games and interact with each other; the traditional merchandise strategy based on franchised stores is being challenged by booming online businesses; the annual NBA China Games are no longer able to satiate Chinese fans' growing appetite for games; relations with the government-affiliated Chinese Basketball Association are tense; and no Chinese have played in the NBA since Yao Ming's retirement. Facing all these challenges in a nation with an entirely foreign system and culture, what should the new CEO of NBA China do?
This note is used in the Darden course elective, "The Economics of Water." In many cities, water, sewage, and electricity utilities are city-owned, not-for-profit institutions. Indeed, a 2011 survey of 330 major cities worldwide published by Global Water Intelligence reveals that almost 85% of the water services of the cities surveyed are publicly managed; public-private partnerships account for 5%, and about 10% are privately run. As this note argues, there is a reason for this institutional setup.
BGI has the largest installed gene-sequencing capacity in the world, and to Zhang Gengyun, general manager of the Life Sciences Division, this represented an opportunity to apply his training as a plant breeder and his early career work as a biochemist to improving important parts of the world food supply. But his biggest challenge was in scaling up his organization to address the multitude of opportunities he wanted to address. Along with its massive investments in gene sequencing machines and computing resources for data analysis, BGI had built a large cadre of data scientists who could develop and run programs to sift through the mountains of genetic data that were being generated every day. But the approach raised other questions. Could people trained in traditional fields of botany, biochemistry, and animal husbandry simply use the BGI sequencing platform as a black box, much as people in other industries relied on specialization and a modular division of labor? Or did it take the kind of cross-training and cross-boundary work in which Zhang himself had invested two decades of his professional career? Could the data scientists in BGI's "factory" grow sufficiently to understand the science, and was that now even necessary?
Founded in 1986, Red Star had become the leading department store in China for furniture and home equipment products (bathroom, lamps, textiles complements, etc.). The business model of Red Star was to provide adequate space for vendors (that rented the space) in good shopping mall facilities, well designed and equipped (parking, transportation, services) located in key developing zones of Chinese growing cities. In the first 27 years, Red Star had opened 115 shopping malls in 85 different cities. With capacity to launch up to 10 new malls per year, Red Star expected to reach 200 malls by 2020. By 2012, the company employed over 15,000 people. With increased competition, and the growing complexity of its operations, how should the company manage its ambitious growth strategy?
In 2009, Caterpillar shipped its first D7E tractor, an "electric drive" machine in which electric motors moved the tracks and blade, using electricity from a generator powered by a diesel engine. In an industry where new products provided performance gains of just a few percent, the D7E moved 10 percent more material per hour, using 10-30 percent less fuel that its predecessor. It was also easier to operate, had 40 percent fewer moving parts, and a far lower lifetime operating cost. When the project was originally approved in 2003, the D7E was intended to prove out the electric drive concept for tractors. The D7E was chosen for this role in part because it was a relatively low-volume machine, and provided less risk for the new technology. If successful, electric drive was expected to be adopted by other products in Caterpillar's tractor product line. However, by the end of 2013, this had not yet happened, nor had the company announced plans to do so. This case describes the D7E project from its conception, including the organizational and technical challenges it faced, and how the project team overcame these challenges. It raises questions about why the technology had not been rapidly adapted to other Caterpillar tractors.
A firm's raw material sourcing knowledge can be a strategic resource. This article explores how firms can capture and use this knowledge. It examines the sourcing experiences of four firms in four different countries in the automotive industry and identifies the raw material sourcing knowledge-related parameters. Synthesizing the findings from these case studies, it proposes the concept of the sourcing hub, a collaborative center involving the firm, its suppliers, and raw material suppliers, which can effectively capture and deploy the raw material sourcing knowledge for managing value in upstream sourcing.
Retail inventory is a statistic that is closely watched by retailers as well as their investors, lenders, and suppliers. Retailers not only benefit from inventory, but also bear the cost of excess inventory. Investors, lenders, and suppliers interpret this statistic for signs of the retailer's health, future sales prospects, and impending costs. This article synthesizes the perspectives of investors, lenders, and suppliers on inventory. Moreover, the article shows that inventory turns, a commonly used metric to identify excess inventory, has important limitations that reduce its utility for all these stakeholders. It then presents a new metric, adjusted inventory turns, which can be effectively utilized by all stakeholders to assess whether a retailer is carrying too much or too little inventory.
Open innovation often requires wholesale changes to the nature of R&D. However, academic research and managerial practice have paid little attention to the challenges that individuals face in the daily pursuit of open innovation. As a result, there is little understanding of how individuals cope with open innovation, and which organizational practices can support them in this role. Drawing on the experiences of R&D professionals, this article identifies four specific challenges and coping strategies of individuals engaged in open innovation. It proposes a range of open innovation practices that organizations can implement to better equip their staff to undertake effective external engagement.
This case study describes the culture change process and positive outcomes at one of Genentech's largest divisions, Immunology and Opthamology (GIO). Senior Vice President Jennifer Cook worked with her team to develop a culture that would tie together four brands that previously were not in the same division. Despite various challenges along the way, Cook pursued a culture change approach with definitive and relatively rapid outcomes. This is a story of the role that leaders have in undertaking and inspiring major culture change.
This article critiques Porter and Kramer's concept of creating shared value. The strengths of the idea are highlighted in terms of its popularity among practitioner and academic audiences, its connecting of strategy and social goals, and its systematizing of some previously underdeveloped, disconnected areas of research and practice. However, the concept suffers from some serious shortcomings, namely: it is unoriginal; it ignores the tensions inherent to responsible business activity; it is naïve about business compliance; and it is based on a shallow conception of the corporation's role in society. [Michael Porter and Mark Kramer were invited to respond to this article. Their commentary follows along with a reply by Crane and his co-authors.]
On Thursday January 27, 2011, hundreds of thousands of protesters in Egypt were vociferously demanding an end to the 30-year rule of President Hosni Mubarak, and to the state of emergency he had let prevail, and nurtured during that tenure. The protest movement was expected to gather even greater momentum following the afternoon prayers the next day, a Friday. The communication and connectivity through social media had acted as a key catalyst in enabling the protesters to coordinate their actions. President Mubarak's government decided to strike hard at the lifeline of this virtual medium, by exploiting some of the rights that the state of emergency had accorded them. That afternoon, the government ordered the three main voice and data communications providers in Egypt - Vodafone, Mobinil, and Etisalat - to suspend services in selected areas. Among these areas was Tahrir Square ("Freedom/Martyrs' Square") in Cairo, the biggest nucleus where protesters had assembled. Later, the government would also instruct these communications providers to broadcast propaganda text messages to all their subscribers, imploring them to be on the side of the Egyptian Army, which the government said was the true protector of Egypt. When Hatem Dowidar, CEO of Vodafone Egypt, heard about the government's order, he was about to take a crucial decision. He knew that the situation in Egypt was being observed closely from all over the world. Dowidar also realized that the course of action he opted for would have consequences not just for Vodafone Egypt, but also for the parent Vodafone Group. He contemplated the possible consequences, well aware that any decision he took would invariably evoke strong reactions.
On Thursday January 27, 2011, hundreds of thousands of protesters in Egypt were vociferously demanding an end to the 30-year rule of President Hosni Mubarak, and to the state of emergency he had let prevail, and nurtured during that tenure. The protest movement was expected to gather even greater momentum following the afternoon prayers the next day, a Friday. The communication and connectivity through social media had acted as a key catalyst in enabling the protesters to coordinate their actions. President Mubarak's government decided to strike hard at the lifeline of this virtual medium, by exploiting some of the rights that the state of emergency had accorded them. That afternoon, the government ordered the three main voice and data communications providers in Egypt - Vodafone, Mobinil, and Etisalat - to suspend services in selected areas. Among these areas was Tahrir Square ("Freedom/Martyrs' Square") in Cairo, the biggest nucleus where protesters had assembled. Later, the government would also instruct these communications providers to broadcast propaganda text messages to all their subscribers, imploring them to be on the side of the Egyptian Army, which the government said was the true protector of Egypt. When Hatem Dowidar, CEO of Vodafone Egypt, heard about the government's order, he was about to take a crucial decision. He knew that the situation in Egypt was being observed closely from all over the world. Dowidar also realized that the course of action he opted for would have consequences not just for Vodafone Egypt, but also for the parent Vodafone Group. He contemplated the possible consequences, well aware that any decision he took would invariably evoke strong reactions.
Mobile broadband carriers provide network access to the Internet for a range of devices (typically portable or mobile), including consumer devices such as smartphones, tablets and E-Readers, but also a host of new emerging devices. Mobile broadband networks enable data to travel in packets over telecommunication (telecom) companies' wireless (or cellular) networks. The number of worldwide mobile cellular subscriptions reached 6 billion in 2011, reflecting a penetration rate of 87%. This note provides some industry context for the advent and opportunities associated with mobile broadband.
"Business-to-Business Marketing" provides a comprehensive review of the fundamental concepts and theories related to aspects of business-to-business (B2B) marketing. B2B marketing refers to exchanges of goods and services between institutions rather than to individuals or end consumers. Compared to business-to-consumer (B2C) marketers, B2B marketers face distinct challenges rooted in the nature and needs of customers' buying criteria, purchasing processes, and strategic considerations. This Reading discusses five core elements of B2B marketing: 1. Links between business-to-business marketing and business strategy. 2. The impact of market and account selection. 3. The complexity of buyer behavior. 4. The need to understand and communicate buyer benefits. 5. The importance of organizational alignment.
Because of advances in technology, increasing international trade, growing global income levels, and a convergence of consumer tastes, companies worldwide must examine their business strategies and tactics with a global perspective. This Reading introduces a broad array of fundamental concepts and strategies that will enable an understanding of these dynamic changes in the global marketing environment. A Supplemental Reading offers insight into global marketing in the service industry.
The note traces the evolution of the Insurance Industry in India and looks at its state in the year 2012. It throws light on the size, products, major players and other details of the industry like penetration and density. The case also compares the Indian Insurance industry with the world insurance market and a few other countries like the USA. The case concludes with the challenges faced and the road ahead for the industry.