This case examines the business strategies available to an Indian company, Indraprastha Cold Storage Ltd. (IPCSL). It has made substantial investments in upgrading its existing cold storage to differentiate itself from the competition based on the premise that by providing superior product quality, it could charge a premium for its value added cold storage service. However, competitors lowered their rates in an attempt to capture even more customers, and IPCSL was concerned about the long-term viability of the business. It must decide on a course of action, taking into consideration the constraints of growing, transporting, storing and selling fruit in India; the asymmetry in price information available to growers and commission agents in the market, coupled with the old-fashioned way of doing business through open and closed auctions; and the costs and benefits of vertical integration between grower and IPCSL.
This note explores the ongoing evolution of the corporate communications function from the management of public image and public relations to the integrated cultivation of internal values and external stakeholder relationships.
This case describes the formation and operation of Leopard Capital, a "Frontier Market Private Equity Fund" from its establishment in 2007 up through the end of 2012. The case focuses on the fund's founder, Douglas Clayton, and his history doing business in Asia and what led him to the decision to start Leopard Capital as a Cambodia- focused private equity fund, and later to expand into other frontier markets such as Mynmar, Mongolia, and Haiti. The case emphasizes the fundraising challenges Clayton faced as a first-time fund manager operating in a developing country, and some of the creative strategies Leopard employed in order to attract capital from investors. The case also overviews the economic and political history of Cambodia.
Greg Popovich, head coach of the National Basketball Association’s (NBA) San Antonio Spurs (Spurs), decides to rest his three aging star players during a highly-anticipated game against the NBA champion Miami Heat (Heat). Miami fans have paid a premium for tickets to the game. Many intend to bring their children to see the young, upstart Heat face the much older, but still highly-competitive Spurs. This is a Thursday night game, nationally-televised by the important sponsor of the NBA, TNT. Not to have the Spurs’ stars in the game is very disappointing to fans and to the NBA itself. Popovich needs to decide whether it's right to rest his players, and what to say to the fans and to the NBA.
The director of a rural metropolitan water supply facility faces a complex risk management challenge. The facility uses chlorine gas in its water treatment, largely because it has determined that chlorine is the most effective treatment available, in terms of safety, cost and environmental impact. However, a security report from the Department of Homeland Security suggests that chlorine, a hazardous chemical, can be used by terrorists, both during its transport to the treatment facility and at the facility itself. The director of the water supply facility wonders whether the Department of Homeland Security made its recommendation based on an isolated risk without considering the big picture. The case provides students with an opportunity to analyse a complex sustainability-related management issue.
This case examines the unique business model of Ristorante D'O, a high end gourmet restaurant located near Milan, Italy. Founded by Chef Davide Oldani, D'O offers meals at approximately one-third the price of other Michelin starred restaurants. Oldani has made this business model profitable by making a conscious set of operating strategy choices (menu, meal design, service process, lay-out, reservation process) that reduce waste and inefficiency, while preserving quality. The case enables students to understand how cost-quality trade-offs can be altered through creative operating strategies, and sufficient data are available to analyze the operating model in depth. A second focal point of the case concerns Oldani's choices for growth. The wait list for D'O is currently 18 months. He can presumably open another D'O at a different location. At the time of the case, however, is considering opening a new restaurant in the same vicinity as D'O that would operate at an even lower price point. Case debate can center around whether this new restaurant format makes sense from a strategic point of view, and, in particular, whether the capabilities and know-how acquired in operating D'O are applicable to the new restaurant. The deeper issue in the case concerns how businesses based on the creative talent of an individual (like Chef Oldani) can grow, without losing what makes them special.
After rising through the ranks of Corporate America, Beth Stewart has become a corporate director on the board of General Growth Properties. Stewart is struggling with how to address her mounting concerns over the financial health of the growing large publically traded real estate investment trust (REIT) to her fellow board members and company management. The case explores interpersonal communications, influencing one's peers, leadership style, and board dynamics. The case also chronicles Stewart's career progression focusing on different stages including work/life choices she made as a wife and mother of five children.
Value Retail PLC owned and managed a number of premium shopping destinations (Villages) across Europe. Soon the company would be moving into an entirely new market: China. The company's Villages had proven popular with both shoppers (many of whom were international tourists who had come to Europe specifically to visit one of Value Retail's Villages) and brands, a number of which were luxury brands that had historically avoided selling product at outlet locations. The company's Founder and Chairman, Scott Malkin, looked to the future challenges his company might face in China, as well as to the challenges his company faced around human resource management and organizational control as the company grew in size and formalized parts of its processes, and how his company would be impacted by the ongoing changes in the retail industry, including the rise of online shopping.
The regional manager of Latin America for a Canadian defence contractor must decide whether or not to employ a South American agent to represent the company and negotiate an agreement to supply body armour to the procurement group of a Central American country's armed forces. The Canadian manager is concerned about whether or not the employment of this agent poses a reputational risk to his company, given the current Canadian legislation with respect to the corruption of foreign public officials, legislation that parallels that in the United States and in most other developed countries. He also wonders whether he will even be able to build business in that region if he opts against using agents with local knowledge and connections.
On October 1, 1891, as Senator Leland Stanford cut the ribbon at the ceremony gifting 8,000-acres of his Palo Alto, California, stock farm to a new, 559-student university bearing his name and seeking to produce "useful" in addition to "cultured" graduates, the majority of onlookers were orange groves and wildflowers. There was, as Gertrude Stein would remark of nearby Bay Area city, Oakland, nearly 50 years later, almost "no there, there." That is, it was a place with little social depth, identity, or culture. But over time, the region became synonymous with a culture of entrepreneurialism and developed into the most significant innovation hotspot in the world. What factors, if any, made what was to become known as "Silicon Valley" unique? Will Silicon Valley remain a vibrant community of technological innovation and economic growth, or will it decline like other previously thriving U.S. regions?
The Sunrun case profiles the evolution of this residential solar financing startup, focusing on the company's milestones leading up to the Series A financing round. Founded by two GSB graduates, Ed Fenster and Lynn Jurich, together with one of Fenster's high school classmates, Sunrun applied an innovative model from the commercial sector to residential solar, whereby homeowners could lease the solar panels that Sunrun owned and installed on rooftops. The case goes on to describe the co-founders' journey seeking Series A funding after they have invested their own money and raised outside capital from angel investors. It also provides the perspective of one of the leading VC firms in the Valley with regard to the strengths and weaknesses of the deal. Ultimately, the co-founders faced a decision: Should they accept more favorable terms with lower valuation from VC #1, more onerous terms but a higher valuation from VC #2, or could they afford to wait a bit longer until they closed a partnership to create a tax equity fund (used to fund the solar installations), which would potentially increase their valuation and the overall attractiveness of the investment?
The general manager of Luotang Power, a coal-fired power plant located in central China, reviews annual results before a meeting with the board of directors. He thought the company performed well during the year and both plant availability and fuel economy had improved over the previous year. However, the positive performance does not show in the financial results and he must investigate before presenting to the board. He considers performing a variance analysis to better understand plant performance compared to the previous year. He also examines the contractual arrangement the plant has with the provincial power company for a minimum purchase of electricity to supplement regional demand. The company had been successful at selling excess electricity to the power plant but over the past 12 months, demand has decreased. Students must complete a quantitative analysis of the plant's performance and prepare recommendations to improve reporting and evaluation of the plant's performance. This case can be used in an introductory managerial accounting course to explore variance analysis and incentives in contracts.
The CEO and founder of ExerciseApp decided to take the plunge and spec out the features of his new iPhone mobile application and supporting website. He planned for ExerciseApp to stream exercise workouts from pro-athletes to followers who wanted to “Train. Play. Be. Like the Pros” and get an edge to their workouts. As he envisioned the application, he realized he would need a lot of help with the technology and the setup of this entrepreneurial venture in order to successfully bring it to market. With limited funding, he must decide on the next steps for the business, including the application’s features, business model and market strategy.
In October 2011, MF Global Holdings LTD, a New York City brokerage company, filed for bankruptcy. Almost a billion dollars was missing from customer accounts that were supposed to be segregated from MF Global's trading accounts. Thousands of U.S. farmers collectively lost millions in their trading accounts at MF Global. This note explains the risks many businesses face including unknowable future material prices, interest rates, and currency exchange rates and how derivative securities are often used to hedge or protect against these risks.