In May 2010, the chief pain officer of SalesBrain, a neuroscience-based marketing research and coaching company located in California, United States, has been approached by the marketing head of Digital Technology International (DTI), a provider of technology solutions to the global publishing industry, based in Utah, United States, for advice. DTI has been struggling with communicating the core value proposition of its offerings to customers consisting of leading newspaper publishers. Its frontline people are delivering messages that are technical, jargon-filled and complex. Publisher-customers are unable to understand quickly how the technology solutions being offered by DTI can help them become competitive. The sales messages are also not consistent. Not all sales persons of DTI seem to be speaking the same language.SalesBrain is suggesting a three-step process wherein it will identify the pain points being experienced by the publisher-customers of DTI; create a compelling set of claims that DTI could offer about its technology products; and guide its frontline salespersons towards developing appropriate sales scripts that they could use with prospective clients. SalesBrain is deploying the cutting-edge tools of neuroscience marketing in each of the three processes.
In September 2011, the CEO of First Energy Private Ltd, a start-up enterprise in the alternative energy industry in India, is at a critical juncture. The company has commercialized the technology of biomass cook stoves and has been providing, since 2007, clean and affordable cooking solutions to customers in rural India. A marginal rise in the price of biomass fuel in early 2011 has, however, led to a steep fall in demand, making the continuance in the rural household market unsustainable. The company is at a disadvantage in the household segment because the competing product, liquid petroleum gas (LPG), enjoys a price subsidy provided by the federal government. First Energy has been quick to target a niche in the urban commercial market consisting of restaurants, eateries, and hostels. While the margins are high in this segment, the volumes are low. The company must therefore build scale to be able to service the investments in plant capacity, which is under-utilized. The case enables students to come up with strategies for the CEO for market expansion. They will also decide whether to exit from or hold on to the household segment, where the margins are low but the volumes, considering the imminent de-subsidization of LPG, will be high.
By 2007, AirAsia had become one of the most successful budget airlines in the world. Having dominated Southeast Asia and entered China and India, AirAsia was poised to solidify its place as a top budget airline and one of the most consistently profitable globally. But company founder Tony Fernandes had bigger plans. From the outset in 2001, Fernandes had intended to offer long-haul service, competing against the largest and most established airlines in the world. However, his advisors had urged him to focus on regional, short- to medium-distance service. With many previous successes, Fernandes was once again ready to attempt long-haul service. Despite warnings from industry insiders, Fernandes pushed forward with the expansion. <br><br>Hiring 36-year-old Azran Osman-Rani as the CEO for the new long-haul venture, nicknamed X, was a critical step in this process. By early 2010, X had received its eleventh aircraft and was flying to 15 destinations on three continents. However, over time the substantial differences between long-haul and short-haul operating requirements became more apparent. Consequently, the management decided to formally separate X from AirAsia. This separation, and the inherent challenges for X and its recently appointed head of commercial operations, included: (1) how best to leverage the extensive network of the regional sister company AirAsia in selecting new and profitable destinations for X, (2) how to increase revenues without raising ticket prices, (3) how best to globally position the airline’s brand in non-Asian markets, (4) how to shift his marketing team’s mentality away from a start-up mindset, and (5) how to prepare for a global initial public offering within the next year. See supplement 9B15M018.
In 2008 and 2009, a period of severe economic turmoil, Macy's CEO Terry Lundgren led a large-scale transformation of the iconic department store. Having previously converted the many department stores owned by Macy's to the Macy's names (except Bloomingdale's), Lundgren and his team set out to create a more efficient, dynamic organization. Their "One Macy's" initiative consolidated and centralized all key functions, while their "My Macy's" initiative focused on customizing the offerings of individual stores to local markets. By 2011, Macy's had many advantages, including an energized, highly experienced executive team; a nationwide presence and strong brand in the U.S.; a competitive offering of private label and exclusive brands; and, following the execution of One Macy's and My Macy's, a fresh, unique foundation for future growth. However, the company still faces significant challenges, including low sales productivity (in part due to the large size of its stores), the decline of mall-based shopping, poor floor-level sales capabilities, lack of appeal to younger consumers, intensifying competition, and an overall dearth of future growth opportunities. This case allows students to assess Lundgren's leadership to date and options for the future, as well as the overall viability of the department store business model.
Bain Capital had purchased Outback Steakhouse in 2007 and despite the myriad initiatives to improve operations, the financial collapse in 2008 threatened the company's ability to meet its loan covenants. Outback's performance steadily declined throughout the year. How should Bain Capital manage the company's debt while improving Outback's performance?
This field-based case introduces Ron Helton, a partner in a civil-engineering and design firm called Thompson & Litton. The firm has just learned that it did not get two major contracts it had bid on. Sales are flat. Still, there is a proposal on the table for Thompson & Litton to begin working with a consultant to develop and initiate new construction deals with the state. There is a good upside to the proposal, but the downside is that the risk is significant. Meanwhile, because prison reform has become a prominent political issue, Helton is exploring an alternative option-building new rehabilitation facilities instead of prisons. Helton and the rest of the firm's management must decide how to proceed. This case can be useful in courses exploring government procurement contracts, public-private partnerships, and political attitudes about business practices.
Ford Motor Company is considering whether to reverse the valuation allowance it has recorded over its deferred tax assets. Due to substantial losses from 2006 to 2008, Ford has $10.3 billion of tax loss carryforwards in addition to other deferred tax assets; however, due to uncertainty, Ford has not recorded the value of those deferred tax assets on its balance sheet. To improve business conditions over 2009 and 2010, Ford must now decide whether it is “more likely than not” to realize the value of its deferred tax assets and reverse the $15.7 billion valuation allowance it has recorded. If the valuation allowance is reversed, Ford must also decide how to present the change in valuation in its financial statements.
Between 2004 and 2011, the Universal Robina Corporation (URC) launched its first ready-to-drink bottled tea product, C2, in three Southeast Asian markets: the Philippines, Vietnam, and Indonesia. URC’s founder hoped to replicate the success that ready-to-drink tea had achieved in China and Japan. Because of the differences in competitive tactics and consumer preferences in each market, URC needed to modify its strategic plan for each to improve the likelihood of achieving success with C2. These cases encourage students to discern which characteristics are most important for success and thereby determine the profitability of each new international venture.<br><br>In addition, the cases explore several issues pertaining to the internationalization of an emerging market firm — particularly one lacking the advantage of being based out of a larger developing country like India, China, or Brazil. Based in the Philippines, URC did not have a sufficiently large domestic market to subsidize its international operations or an internationally known brand or national characteristic to achieve leverage in new markets.<br><br>The cases provide a comparative illustration of expansion into three different markets. Case (A) illustrates a local market expansion, while cases (B) and (C) describe international expansions. In each case, students are encouraged to understand the type of localization strategy required to ensure the success of the product launch. Students will also realize that despite being neighbours, the three Southeast Asian countries in these cases have such diverse tastes and consumer preferences that knowledge and experience gained from one market will not necessarily translate to success in the others.
Ford Motor Company (Ford) is considering whether to reverse the valuation allowance it has recorded over its deferred tax assets. Due to substantial losses from 2006 to 2008, Ford has $10.3 billion of tax loss carryforwards in addition to other deferred tax assets; however, due to uncertainty, Ford has not recorded the value of those deferred tax assets on its balance sheet. In light of improving business conditions over 2009 and 2010, Ford must now decide whether it is "more likely than not" to realize the value of its deferred tax assets and reverse the $15.7 billion valuation allowance it has recorded. If reversed, Ford must also decide how to present the change in valuation in its financial statements.
This case describes the task that confronted Coast Guard Captain Suzanne Englebert, the staff point-person who led an initiative to develop new regulations intended to improve the security of the nation's ports from terrorist attacks, in the wake of the September 11, 2001 attacks. It is intended for use in a strategic management class. Students are challenged to weigh an array of political, practical, legal, and technical considerations in assessing Englebert's approach. The case provides students with the background information they need to discuss the challenges inherent in tightening port security, including: basic information about the economic import of maritime trade, the range of conditions at US ports, the nature of international shipping and regulation, the particular problems posed by containerized shipping, and the kinds of terrorist attack foreseen by security experts. This case also describes several initiatives, undertaken in parallel, to improve port security immediately after 9/11, including immediate protocol shifts in the international ports, and bilateral negotiations with the largest ports outside the United States. The case introduces Englebert and describes her role in the Coast Guard's simultaneous efforts to work with US legislators to create a domestic port security law and with international partners in the International Maritime Organization to create a worldwide port security regime. The case ends with Englebert facing her next herculean task: to turn the mandates of the new federal law into specific, concrete regulations in just a few months' time. The case was designed as a companion piece to a dvd, case number: 1946.9. Case number 1946.0
The collective buying industry has grown by leaps and bounds over the past several years, and Groupon stands out as a major player that has revolutionized this market. This case study describes the beginnings of Groupon, as well as the firm's rise to power, the rise of its numerous competitors, its decisions and expansion strategies, and the collective buying industry as a whole. Key demographic data about Groupon's customers (consumers and small businesses) are also described, along with recent developments at Groupon and within the industry in general. While Groupon has undoubtedly discovered a unique model that takes advantage of a 'white space' in sales and marketing to local businesses, it is unclear what the future holds for Groupon. Will it be able to sustain its incredible growth rate, or is its business going to peak quickly and then fade?
The collective buying industry has grown by leaps and bounds over the past several years, and Groupon stands out as a major player that has revolutionized this market. The case describes the beginnings of Groupon, as well as the firm’s rise to power, the rise of its numerous competitors, its decisions and expansion strategies, and the collective buying industry as a whole. Key demographic data about Groupon’s customers (consumers and small businesses) are also described, along with recent developments at Groupon and within the industry. While Groupon has undoubtedly discovered a unique model that takes advantage of a “white space” in sales and marketing to local businesses, it is unclear what the future holds for the company. Will it be able to sustain its incredible growth rate, or is its business going to peak quickly and then fade?
Global electrical products company assesses growth and market demands in India. Company must decide between a products acquisition or developing a service business. Students need to be aware of different country conditions, demands on implementation of different strategies, impact on culture. Also discusses energy performance contracting in the context of making India energy generation capability more efficient.
What should business leaders do about corruption? In December 2011, four HBS alumni met to debate how to engage the unprecedented protests against Vladimir Putin's corrupt government, which had erupted in Russia in response to alleged fraud in the recent parliamentary elections. A notable figure in the protests was anti-corruption blogger Alexey Navalny. Navalny used publicly available requests for tender, "crowd-sourcing", and volunteer experts to discover, expose, and encourage prosecution of corrupt dealings by the Russian government. These efforts made Navalny a cause celebre in Western media, and a popular figure with Russia's tech-savvy population. But was Navalny the right figure for business leaders in Russia to organize around? What were the risks of getting involved with a politically volatile activist?
In response to growing concern about childhood obesity, in February 2006 the Council of Better Business Bureaus (CBBB) announced an initiative to examine its self-regulatory program on children's advertising. The existing program was a voluntary cross-industry program that monitored advertisements directed to children. However, the program did not stipulate which products companies could or could not advertise to children. In response to calls for action on childhood obesity, the CBBB was considering a number of approaches, including revising children's advertising guidelines, but staying within the basic parameters of the current program. Alternatively, the CBBB was considering launching a new self-regulatory program in which participating firms would constrain the amount of their children-targeted advertising of less-nutritious products. It was widely believed that children's food advertising was a major contributor to childhood obesity, and within the food-advertising category, considerable attention was directed to advertisements of children's presweetened cereals. The major ready-to-eat (RTE) cereal manufacturers, such as Kellogg's and General Mills, were supporters of the CBBB self-regulation programs and were invited to participate in the CBBB initiative. Each manufacturer had been taking different individual approaches to address the concerns of childhood obesity. The case discussion focuses on what actions General Mills should take with respect to the CBBB initiative and on its own.
This note describes the market for consumer finance products in the United States. The note focuses on the changes in supply and demand that have occurred since the mid-20th century, and highlights recent approaches to finance for low-credit rated borrowers.
In early 2011, the senior executives of the venerable Canadian hockey stick manufacturer Sher-Wood Hockey were considering whether to move the remainder of the company’s high-end composite hockey and goalie stick production to its suppliers in China. Sher-Wood had been losing market share as retail prices continued to fall. Would outsourcing the production of the iconic, Canadian-made hockey sticks to China help Sher-Wood to boost demand significantly? Was there any other choice?