For 10 years the president of the University of Pennsylvania--the first female president of an Ivy League university--Rodin has been president of the Rockefeller Foundation since 2005. When she joined the foundation, the trustees were already focused on its 100th anniversary, in 2013. An anniversary inspires a sense of pride and unity, Rodin says, making it an ideal time to ask people to think together about why their work matters and how it should move forward. A way to begin that process is to trace the historical trends that have affected the organization and project how they might continue.
A visual representation analyzes the 12,000 articles HBR has published over the past 90 years--a detailed time line of the most influential ideas that have shaped management thinking over the years.
The case starts in 1973 when Pina Bausch stood at the turning point of her professional career: the transition from being a celebrated dancer to becoming a choreographer. Reflecting on what made Pina Bauschs career as a dancer exceptional, the case then elucidates Pina Bausch´s leadership and working style during her years as artistic director at the Tanztheater Wuppertal. Not only did Pina Bausch become famous for her artistic work and creative productivity, but also for her way of leading people and making them grow long-term. Her capability of leveraging the diversity of her dancers - the collective genius - made her choreographies inherently innovative and ground-breaking. Demanding highest performance, she created one of the most successful companies worldwide. She died 2009, leaving behind a dedicated and outstanding dance theater.
On 9 May 2005, Oriental Land Co, Ltd ("OL") announced changes in the company's top management. They were feeling the heat not only from the humid weather in Tokyo in the rainy season but also as a result of the visitors' numbers that had just come in. The total combined attendance at Tokyo Disneyland Park and Tokyo DisneySea Park for the fiscal year (1 April 2004 to 31 March 2005) amounted to 25.021 million guests, 98.2% of the previous year's attendance. The top management was concerned that this decrease in attendance might be a bad sign of tough times ahead and it was a prime example of a successful foreign investment in Japan now caught in a completely new structural change. The factors that had been critical to its past success were now diminishing. The top management thought that the amusement park and leisure land industry provided little cause for optimism, due to factors such as slackening consumer spending and demographic changes. Under these conditions, the top management felt that a study was needed to determine whether OL could diversify the operating base. They specifically wanted to know whether the current pricing policy was effective under deflation, which the Japanese economy had been suffering for a long time, and how changes in pricing to visitors, if necessary, would affect the company's cash flow in the future. The new pricing strategy would be based on the price elasticity of demand by the visitors to the company's services.The top management asked the planning department to study the possible price changes and use net present value ("NPV") methods to evaluate these alternatives on the effect of the future cash flow. The strategy would also need to incorporate the company's long-term strategies.
In the late 1970s, Walt Disney Corporation sought to expand its enterprise to Japan. Oriental Land Corp, which represented the Japanese side of the negotiations, and Walt Disney had to decide on a licensing arrangement or a joint venture. The objective of this study is to examine the actual determinants, models and data of that investment choice. This case study is of value to governments and multinational enterprises that want to explore an optimal alliance with a foreign partner. Based on the law, the Japanese government intervened in the negotiations between the Oriental Land Corp and Walt Disney as to the form of the arrangement for Tokyo Disneyland. Thirty eight years later, it is worthwhile to examine the validity of their decisions and which arrangement benefited the project and the partners most. This case study presents ex post empirical evidence for this discussion. The efficacy and effectiveness of the law that allows the Japanese government to intervene are also questioned.
With several brands in the premium shirt market, the Arrow brand faced the challenge of balancing its premium associations that had been nurtured in the past to make the brand contemporary. The concept of "premiumness" with regard to the category had undergone a shift, with equally strong brands (comparable to the Arrow brand) strengthening their positioning on premiumness. Arrow faced several challenging decisions that involved its original positioning. The fundamental decision on revitalizing and reinforcing the brand would depend on the analysis of the changing environment, competitive offerings from competing brands and the perception of consumers on Arrow and its competitors. The premium shirt market had brands that offered comparable functional attributes; and the differentiation of brands was built by both functional attribute positioning and symbolic positioning. Balancing the two aspects and alternating between these two aspects in a dynamic category and environment required an approach that would bring several aspects of consumer behavior towards a brand's strategy. As the competition intensified, there was need for any brand to delve into the finer aspects of consumer behavior rather than depend on the basic positioning strategies. There was a need to analyze how consumer behavior strategies could contribute to the brand's positioning strategies. Should Arrow retain its category expertise? Should the brand retain its "country of origin" associations? Should the brand focus on the self-concept associated with the consumer segment? A medley of concepts that can trigger Arrow's next level of brand strategy is the context posed by this case in an emerging market such as India.
The case traces the evolution of the carbonated soft drink industry. It describes the emergence of two global majors - Coca Cola Company and PepsiCo. It describes the proliferation of brands of each of the two majors. While Coke, Diet Coke, Sprite, and Fanta belong to Coca Cola Company; Pepsi, Diet Pepsi, Mountain Dew, 7 Up, and Mirinda belong to PepsiCo. The case also describes the local Indian brands - Thums Up and Limca. Many of the soft drink brands have a high brand value and the case describes the role of advertising in building brand equity. The case traces the evolution of advertising over the years globally as well as in India. It engages with the tension between localization and standardization of advertising. It invites students to discuss the role of advertising in building the brand in an emerging market such as India.
The case describes the evolution of 3M as an innovative organization over its 110-year history. It highlights the early challenges faced by the founding entrepreneurs that had an impact on the tolerance for failure in the 3M culture, and also the entrenchment of its innovation philosophy in the ''William L. McKnight Management Principles''. Further, it describes the role of structures, processes, rewards and people in continuously sustaining the innovativeness of the company over its lifetime. The case then describes 3M's approach to innovation across its global subsidiaries, wherein innovators from subsidiaries in different geographies are expected to drive innovation for their context based on their understanding of local user needs. 3M's strategy for innovation among its subsidiaries is somewhat different from that of most other multinationals that still rely largely on innovation from their home country organization. The case throws light on the efforts by the parent company to transfer and entrench its innovative culture at 3M India, its subsidiary in India. While 3M had a presence in India for over 20 years, for much of this period, the emphasis on innovation was rather limited. However, with the inauguration of its new 3M Research and Development Centre in 2011, 3M India, with the full support of the parent organization, has provided a renewed thrust to innovation for the Indian market under its "In India for India" strategy. At the end, the case highlights some of the challenges faced by 3M India and some potential challenges that it might face as expected by analysts.
This case on CavinKare's founding describes the entrepreneurial journey of the founder, C K Ranganathan. As the enterprise outperformed expectations, the organization set itself an incredible vision. This case traces the history of the entrepreneur and the growth story of the enterprise. The case describes the context of opportunity recognition and exploitation, and elucidates the significant decisions taken by the entrepreneur and the organization in order to sustain rapid growth amidst liberalization and stiff competition from multinational companies with deep pockets and significant stakes in the industry.
This case on CavinKare describes the incredible vision the organization set itself. This case is set at a time, when the company had achieved significant progress towards its incredible vision, but needed a quantum jump in performance to sustain its growth. The case describes the FMCG industry and the firm's capabilities, and evolves strategic challenges facing the company, including sustaining high-growth, expanding the product focus to men's range of products, and investment in the services business.
This case exposes students to financial decision-making in government enterprises and the concepts of financial and economic rates of return. It is based on actual electrification projects being undertaken by Indian Railways, one of the largest government organizations in the world. Electrification projects require large capital outlays with significant financial and welfare implications. The case analysis involves (i) estimating incremental cash flows under alternative scenarios, (ii) calculating the financial rate of return, and (iii) conducting a sensitivity analysis to identify the key value drivers. It also provides opportunities to discuss nominal vs. real cash flows, differences between internal rate of return and net present value, and the choice of different discount rates. The case is suitable for a course on Corporate Finance and Valuation.
This case explores the challenge of investing in basic research as a public good. CSIRO was Australia's leading science and research agency, and it was chartered to enhance national prosperity through R&D. Its Flagships program was designed to align research interests with national priorities, with a strong focus on the adoption of research outputs. The Light Metals Flagship (LMF) was one of six flagships established in 2003, and its goal was to help the nation capture more of the added value of its resources by developing and commercializing downstream technologies in the processing and fabrication of products made from aluminum, magnesium, and titanium. While the LMF met with technical successes, Australian industry was reticent to co-invest. This lack of industry enthusiasm was in many ways unsurprising, as governments often found it important to fund long-term basic research that was outside of the horizon of firms. But what kind of a signal would stopping the program send? Was CSIRO prepared to let short-term thinking in light metals firms drive its agenda? The case examines the technical decision-making process.
As U.S. Secretary of State, Hillary Rodham Clinton acted on a long-standing interest in public-private partnerships to elevate and activate an Office of Global Partnerships reporting directly to her. One major initiative that also addressed her interest in women's empowerment was to create an alliance for clean cookstoves, a significant environmental and public health issue in developing countries. This case examines the change process within the State Department and across the federal government as well as the process of developing partnerships, and looks at what happens on the ground to deploy resources. It raises the question of whether the alliances will be sustainable when Sec. Clinton leaves office.
From 2000-2010, John Williams, co-founder of Frog's Leap Winery in California, invested in dry farming, organic, and biodynamic agriculture; geothermal and solar power; year-round employment and benefits for immigrant workers; and the industry's first LEED-certified tasting room. Despite static production, inventory and debt load grew. In May 2011, Williams how to grow Frog's Leap sustainably.
Paul Lui, Executive President at Private Client Services Division (PCSD), had the difficult task of designing a new incentive compensation system for financial consultants at the wealth management division of a mid-tier financial services firm that had limited resources compared to its larger rivals. Luil had many objectives in mind in designing the new incentive compensation system: to motivate financial consultants to stay, perform, and excel; to attract new consultants to fill in the vacated positions; and to generate new business in the face of labor shortages and significant competition from larger firms. How did the current compensation plan at PCSD compare to those of rival firms? How could Lui change the compensation plan for PCSD, given the resource constraints his company faced as a mid-tier financial services firm? Beyond changing compensation plans, what could Lui do to recruit new experienced consultants; stop top producers from leaving; and more generally, improve the morale at PCSD?
This case details the desperate negotiations in September of 2008 to prevent the failure of the New York investment bank Lehman Brothers. Following the collapse of the U.S. subprime mortgage market in February of 2007, a downturn in the global financial markets began to accelerate. Lehman Brothers, heavily exposed to the U.S. subprime and commercial real estate markets, began to experience increasing levels of distress. Looking for a merger to save the company, Chairman of the Board and Chief Executive Officer Richard "Dick" Fuld began to actively seek a buyer for the company. Rebuffed by several potential suitors, Fuld instructed his attorney to approach Bank of America about a deal. Negotiations between Lehman Brothers and Bank of America ensued and were encouraged by U.S. government officials. Talks between Lehman and Bank of America failed. After conversations with Barclays Bank about a bid for Lehman also stalled, Dick Fuld was isolated from the discussion and U.S. government officials began to directly manage the negotiations regarding the fate of Lehman Brothers. In a critical moment, U.K. financial authorities balked at a proposed deal to save Lehman. The Lehman Brothers board of directors was monitoring these negotiations and met four times over the weekend of September 13th and 14th. During the fourth meeting, a U.S. government official addressed the board and stated that a Lehman Brothers bankruptcy would be in the best interest of the nation. The Lehman Brothers board was now faced with a stunning dilemma: whether to further stall for time, vote against the expressed wishes of U.S. government officials, or acquiesce to the bankruptcy of the company.
Defense is big business, especially for companies like Lockheed Martin. Lockheed Martin, formed in 1995 through the merger of Lockheed Corp. and Martin Marietta, was one of the largest defense contractors in the world, employing about 140,000 worldwide. Lockheed Martin was considering the acquisition of NationScape, Inc., a firm that supports U.S. military readiness, diplomatic and development efforts, and peacekeeping, stabilization and nation building activities in more than 65 countries around the world. The acquisition could increase Lockheed Martin's overseas defense support operations and expand its capabilities to provide diplomatic and development services to complement its existing defense business. The corporation needed to determine an appropriate price for the acquisition and evaluate whether the acquisition would be a good strategic and cultural fit for the corporation as well.
This is part of a case series. This case explores the process a social venture went through in raising funds to expand its business. The case focuses on the risks and opportunities of possible funding methods, and actions that can be taken to protect key values throughout the process. The case provides an opportunity to debate the challenges involved in growing socially responsible businesses, how social responsibility can be embedded in a company's value chain, and whether corporate size benefits or constrains an organization's ability to operate in a socially responsible way.