In early January 2012, the director of social media for the McDonald's Corporation (McDonald's) was challenged with a tall order. The corporation had just launched a large public relations campaign using the Twitter hashtag "#MeetTheFarmers" to promote connections with family farms and local suppliers. Maximizing a Twitter Promoted Trends expenditure, the director had switched the hashtag from "#MeetTheFarmers" to "#McDStories" halfway through the first day of the campaign. However, numerous detractors used the hashtag to express negative comments towards the corporation. A few days later, the media started to run negative coverage with mocking headlines and articles providing screenshots of the negative tweets but no statistics that explained or put proper context to the situation. The director needed to devise a better strategy for McDonald's social media campaigns in order to prevent potential media fallouts.
In 1995, Paul Shipman, CEO of Redhook Ale Brewery, and his management team prepared to enter uncharted territory by taking their craft-brewing operation public in the United States. Although there already were massive large-batch breweries that were profitable, publicly traded firms, Redhook was different: it embodied the ethos and grassroots beginnings of the microbrew movement. Still Shipman wondered about the potential of the craft-brewing industry segment.
The inventor of the Kinkajou, a portable glass bottle cutter, has successfully completed a crowd-sourced financing campaign. His funding goal of $75,000 was considered to be quite ambitious and the timeframe in which he aimed to secure the funding was only 30 days. He managed the campaign impressively and exceeded his goal on the last day of the campaign. At this point in his business development, this entrepreneur has secured an offshore manufacturer, all backers have received their products and he has resolved a number of technical and operational problems. With so many challenges behind him, he now faces questions of future distribution through multiple wholesalers and is considering the opportunity of joining with a major international retailer.
The VerniSoks case highlights the entrepreneurial challenges of building a social start-up and the circumstances surrounding a visionary idea that struggled to gain financial traction from private investors and the venture capital community. The VermiSoks story paints a picture of a complex business model with a strategy that may have been too convoluted for potential investors to believe in its financial viability. There is no doubt that the VermiSoks business functions were both intricate and technical. Miguel attempting to package an incredible complex system, the Virtuous Cycle, struggled to gain financial traction in its holistic form. VermiSok' business model was designed to be monetized; the "social" purpose often took the spotlight. The Virtuous Cycle, in its entirety, was capable of serving a huge need in the world. Miguel's desire to "close the loop" of the Virtuous Cycle and build his start-up around the entire system, rather than individual components, stood as a deterrent to attracting needed investors. On their own, the compartmentalized business elements had strong potential revenue opportunities, but the system as a whole was still difficult to grasp and presented a much greater investment than financiers were willing to undertake.
Hideo Seto, the recently appointed chairman of the investment committee of the Enterprise Turnaround Initiative Corporation, must decide whether to push JAL group, Japan's largest airline, into bankruptcy or to act as a sponsor in an out-of-court restructuring. The bankruptcy of JAL would be the largest ever for an industrial firm in Japan's history. The case introduces the mechanics of bankruptcy, the tradeoff between out-of-court restructuring and bankruptcy, and the costs of financial distress. At the level of public policy, the case also serves as a useful backdrop to discuss the role of bankruptcy in the efficient functioning of the economy, and the related comparison between Japan and the U.S. in terms of both the bankruptcy code and the cultural attitudes toward corporate restructuring. This case can fit into an introductory course in a module on capital structure and the tradeoff between the costs and benefits of debt or in an advanced corporate restructuring course in a module on the effect of different legal and cultural environments on bankruptcy proceedings.
The inventor of the Kinkajou, a portable glass bottle cutter, has successfully completed a crowd-sourced financing campaign. His funding goal of $75,000 was considered to be quite ambitious and the timeframe in which he aimed to secure the funding was only 30 days. He managed the campaign impressively and exceeded his goal on the last day of the campaign. At this point in his business development, this entrepreneur has secured an offshore manufacturer, all backers have received their products and he has resolved a number of technical and operational problems. With so many challenges behind him, he now faces questions of future distribution through multiple wholesalers and is considering the opportunity of joining with a major international retailer.
Motivating employees has long been a topic of fascination for business leaders. Psychologists have developed many useful insights that are helping businesses to accrue value from their workforces. Regulatory focus theory stands out as one of the newer theories that is gaining traction as well as substantial empirical support. The purpose of this reading is to explain the basic tenets of regulatory focus theory and to discuss how it can be used to enhance motivation and engagement in the workplace.
For nearly two decades, the leading evidence on hormone therapy was based on findings from observational studies like the Nurses' Health Study. In 1985, researchers at Nurses' Health Study confirmed that postmenopausal women who took estrogen had lower rates of heart disease than women who had never taken the hormone. These influential findings helped drive the surge in hormone prescriptions in the 1980s and 1990s. But in 2002, in a stunning turnaround, researchers for a randomized clinical trial called the Women's Health Initiative reported that hormone therapy, in fact, increased the risk of heart disease and stroke among postmenopausal women. Almost overnight, prescriptions for hormone treatment plummeted. For millions of women who were either abruptly taken off hormones or denied treatment, though, the feeling of confusion and anguish remained. At the heart of the hormone therapy controversy was the fact that two different research approaches-observational studies and randomized experiments-had arrived at diametrically opposite results, once again raising questions about what constituted reliable evidence. Case Number 2005.0
Ministry of Supply is an entrepreneurial venture in the apparel sector. The firm focuses on a specific segment - 'performance professional wear' - within the sector, specializing in clothes that use fabrics with high-tech performance features (such as moisture-wicking, deodorizing, and temperature control) to make professional attire (button-down shirts, dress pants, etc.) for men. The firm has had success in fund-raising and its innovative product has garnered it good publicity, but the unusual combination of seemingly contradictory features - performance fabrics commonly used in outdoor leisure activities and a professional look and design - in the product has also generated cognitive challenges among consumers. How, if at all, can the firm increase the sales of its products?
Motivating employees has long been a topic of fascination for business leaders. Psychologists have developed many useful insights that are helping businesses to accrue value from their workforces. Regulatory focus theory stands out as one of the newer theories that is gaining traction as well as substantial empirical support. The purpose of this reading is to explain the basic tenets of regulatory focus theory and to discuss how it can be used to enhance motivation and engagement in the workplace.
Established in 1958, Xinhua Hospital Affiliated to Shanghai Jiao Tong University School of Medicine (hereafter referred to as "Xinhua Hospital") is an integrated modern teaching and research hospital with a comprehensive set of disciplines and a specialization in paediatrics. Xinhua Hospital currently has 1,586 beds, 47 clinical departments and 66 specialties. It has three National Key Disciplines, one Shanghai Key Discipline, five Shanghai Jiao Tong University School of Medicine Key Disciplines, one Ministry of Education Key Laboratory (MOE-Shanghai Key Laboratory of Children's Environmental Health), and two of Shanghai clinical centres, respectively. In 2005, Xinhua Hospital co-founded Shanghai Xinhua Hospital Group with Shanghai Children's Medical Centre Affiliated to Shanghai Jiao Tong University School of Medicine, No.3 People's Hospital Affiliated to Shanghai Jiao Tong University School of Medicine, Chongmingbao Town People's Hospital, and Xinhua Hospital Chongming Branch. Under the arrangement, members remain as stand-alone legal entities, and are financially and operationally independent. Since 2007, Xinhua Hospital has been importing talent to lead its disciplinary development and enhancing its management through informatization development. In 2011, the hospital had 3,400 employees and its number of accident & emergency unit patients reached 3.3 million, the highest in Shanghai; it treated 69,000 inpatients and undertook 41,000 operations. Xinhua Hospital is a large Class 3A (the highest grade in China) public hospital. The focus of this case study is to understand how was it able to implement an EMR-centered (electronic medical records, also known as electronic patient records or electronic health records) information system within its complicated, traditional organizational structure.
Online storage company Dropbox provided remote-storage over the internet of any type of computer file, along with file sharing, synchronization and backup. Using a freemium pricing strategy whereby a basic service was free-of-charge and a premium service was paid, Dropbox grew into a business with 200 million users. But only an estimated 1.6 to 4.0% of its users provided any revenue to the company. This case examines how Dropbox used freemium pricing to facilitate product adoption and user referrals. A survey is provided of the cloud-storage industry, including an overview of the largest players and their pricing/service models. Further, various freemium-based companies across industries are compared, including user conversion rates and revenue profiles.
The case shows how a technology services company shaped and reshaped - and reshaped again - its IT governance structure to better integrate the IT function with business clients. The company is a large Italian telematics provider - Octo Telematics - which is specialized in the provision of telematic services and systems for the insurance and automotive markets. During the period described in this case, the company was growing and globalizing rapidly. The desired alignment between IT and the business units is needed to promote behaviors consistent with the organization's mission and strategy. As Octo experimented with new processes, committees and reorganizations the company 'traveled' through several governance archetypes.
This case is the first part of a two-part series on Innova Technology, a technology start-up company based in Singapore. The two cases focus on: Case (A) - Developing, producing and marketing a product innovation Case (B) - Growth strategies for a young technology company The case is set in May 2012, and begins with the protagonist, Rick Tan, chief executive officer of Innova Technology Private Limited, contemplating what his company's go-to-market strategy should be. Tan and his business partner, Jonathan Lim, who is also the Chief Technology Officer for Innova Technology, developed PROTAG, a new anti-loss device, using Bluetooth technology. The device, which is about the size of two credit cards stacked together, is synched to a mobile phone and can be attached to valuable personal belongings such as keys, wallets, handbags, passports and even phones. If the valuable item were to be separated from the person by more than a certain distance, the device would set off an alarm alerting the owner of its potential loss. Tan and Lim are two young entrepreneurs who set up Innova Technology in January 2011 as a technology start-up under the auspices of Singapore Management University's Institute of Innovation and Entrepreneurship. Tan, the partner with the business and finance skills, focused on developing a sound business plan and raising funds for their product. Lim, the technology guru, channelled his efforts to fine-tune the technology and develop a design with unique functionality. After extensive market research and encouraging results from beta test sales using the crowdfunding site IndieGoGo, Tan had confidence in his product. Yet, he was keenly aware that a great product could fall flat in the market if it was not backed by a well-designed marketing strategy. The partners had invested in manufacturing and 5,000 pieces of PROTAG had already been shipped out from the factory.
The six vignettes in this case present situations that call for the application of one of the six leadership styles: coercive, pacesetting, authoritative, affiliative, democratic, and coaching. The vignettes, each demonstrating a correct, incorrect, or possible use of a particular style, can be used in class for the purpose of developing students' leadership style, diagnostic skills, as a group discussion material, or as test material for post-class examination. Each of the vignettes is a generalized experience story based on examples shared by participants in executive education programs run over the course of the author's eight years of teaching the leadership styles model as presented by Goleman (2000) at a leading European business school. The vignettes have been tested within the context of MBA and executive MBA programs, and executive education courses for high potentials, middle managers, and board level executives.
Landsbankinn hf. was the market leading financial institution in Iceland. The chief executive officer took on his role in mid-2010. At a time when employee morale and customer satisfaction was essentially non-existent, and bankers were widely seen as nation-destroying criminals, he was hired to build a sustainable operation with a reputable brand and restore trust among employees, politicians, regulators, industry peers and customers. Building a positive relationship with Icelanders would be particularly difficult for Landsbankinn because it was moving forward using the decimated brand of its failed predecessor. The Icelandic people would want to know and see what exactly had changed that made the bank a trustworthy institution.
In December 2005, Sapient Consulting signed a fixed-price contract with U.S.-based Global HR Outsourcing Inc. to design a human resources portal for its international customers. Sapient’s senior manager of project management, who was based in India, had been handed the project with full faith that it would not only be delivered on time but within the fixed price and using the new agile hybrid methodology. The client wanted the portal built for them and insisted that the project be delivered in a phased manner and with functionality approved by them. Thus, the challenge was to meet the needs of the client while maintaining the margins for the organization.
During the 2013 Indian festival of colours, a young green entrepreneur and owner of Green Horizon Consulting (GHC) faced a plethora of business growth challenges. His former employee, who had quit GHC a while back to work for a major rival, wanted to return. However, the entrepreneur could not figure it out — would rehiring an ex-employee be a sound business decision? Should he take a risk and give the former employee another chance? If he did, he could look after GHC business in India, and be free to work on his plans to start a new venture in Dubai.<br><br>But, his dilemma didn’t end there. Being the eldest son in his family, he realized that besides the aforementioned strategies, there was also the possibility of living and working with his joint family. His father was getting old and his younger brother had joined the family business; merging the two companies (his and his father’s) would allow both brothers to take care of the businesses and family between them. If that happened, he would no longer need his old frenemy. Even so, there was no doubt in his mind that relocating to Dubai would be a very lucrative move, especially as prospective clients in this region understood the language of green loud and clear. But, despite his excitement at the idea, he could not forget that there would still be all the usual (yet critical) business problems of low consumer awareness and the need to swiftly catch up to the existing competition. What other factors and options would he need to consider to keep his budding, eco-friendly company afloat and to successfully navigate the contemporary business world?
Intangible assets represent an accounting challenge due to their lack of physical substance. This note discusses the accounting treatment of intangible assets under International Financial Reporting Standards. The note examines the necessary characteristics of intangible assets, specifically, identifiability, control and future economic benefit. Also detailed are the origins of intangible assets through separate acquisition, business combination and internal generation. The initial recognition and ongoing measurement of intangibles are discussed, using both the cost model and revaluation model.