Thirteen years of research on more than 2,000 Japanese companies and their U.S. subsidiaries shows that the longer it takes to get from headquarters to that subsidiary, the less likely the subsidiary is to make a profit. Productivity, teamwork, trust, and staff retention can be eroded by long travel times.
Tiny verbal clues can speak volumes about your personality. New research from the chair of psychology at the University of Texas reveals that someone's use of function words--the pronouns, articles, prepositions, conjunctions, and auxiliary verbs that are the connective tissue of language--offers deep insights into his or her honesty, stability, and sense of self.
The social sector could learn a lot from the "just do it" approach of design firms. When designers want to explore a new strategy, product, or service, they don't waste time describing it to dozens of groups and trying to get them to adopt it wholesale. They build prototypes, test them with small sets of users, and then roll out what works.
In preparation for the 90th anniversary of Harvard Business Review, the editors combed the magazine archives and other sources to select iconic charts that relate to the practice of management. This two-page spread illustrates the Experience Curve, the Growth Share Matrix, the Five Forces, Disruptive Innovation, and the Market Pyramid.
The Madurai District Cooperative Milk Producers' Union Ltd. also known as Madurai Aavin Milk Dairy (MAMD) has been one of the largest dairies in the southern part of Tamil Nadu, India. One of the major activities in the MAMD's supply chain was to procure milk from the farmers and also to provide necessary technical input facility to them. The procurement was carried out by forming village-level milk producers' cooperative societies (MPCS). The supply of raw milk to MAMD from the farmers around Madurai is decreasing, whereas the demand is increasing. Several strategies are explored by Aavin to meet the demand for their main product, "premium milk". Aavin faces two challenges: 1. Forecasting the demand for premium milk and 2. Meeting the demand in an optimal manner that would maximize their profit.
Bell, Nortel and Chapleau, Ontario, set out to transform the community of Chapleau through the deployment of technology and business solutions. Together they deploy a wireless broadband network in town, providing mobile internet access to the 2800 residents and town visitors. They also worked with the town's five schools, hospital and local businesses to identify and deploy business solutions. The hospital is given an indoor wireless network, an upgraded telephone system and additional computers. The schools are given laptops, wireless access, multimedia equipment, and teacher training. The community itself, in addition to the free wireless broadband service, is provided with a community portal, computer training and free access to a myriad of technologies. The local community centre is set up with multimedia equipment. University researchers are brought in to study the impact of the technology on the community, small businesses, health and education. A diabetes healthcare trial is launched. Employment is provided to 5 local residents. Over the course of two years, millions of dollars are spent and much is learned, by not only Bell and Nortel but also the community itself, government (federal, provincial, municipal) and others. Bell and Nortel create lasting relationships with community members. A degree of interdependence is established. Almost two years later, the project is nearing its end. The Chapleau Town Council voices their concern about what will remain in the community. They request sustainability solutions for the investments made by the project team. The steering committee must determine the needs and saliency of the project stakeholders and propose a sustainable solution.
The case is designed to generate a discussion concerning the motivations and risks of initiating policies of corporate ethics and social responsibility and the potential advantages and disadvantages of embracing these policies. It describes a situation in which an international giant in the tourist and hospitality industry must make a choice between profit maximization and the risk that a new venture has potential for contributing to sex trafficking and the sexual exploitation of children. As such, it looks at the role of the travel and tourism industry in the sexual exploitation of children, including the ways in which airlines and hotels transport pedophiles to countries where children are available for exploitation. It also discusses national and international law and remedies regarding the sexual exploitation of children. By focusing on the Chief Executive's commitment to children and to combating child sex trafficking, the case encourages undergraduate and graduate-level students of business ethics, corporate social responsibility and leadership studies to consider the competing demands of business opportunity and social responsibility and the obligations business leaders must assume toward resolving moral issues. The case calls attention to the challenges of corporate social responsibility in a complex world
Rait Kalda, vice president of operations for AS Estonian Air, faced a challenge: how should Estonian Air address projected increases in intra-European flight demand in light of high fuel costs, competitive challenges, economic uncertainty, and last year's net loss? If Kalda's assessment led to expanding Estonian Air's fleet, he had to decide which plane model would achieve operational efficiencies, satisfy load factor requirements, and meet various other performance and financial metrics. In order to fully comprehend Kalda's challenge, the case first presents the reader with a brief synopsis of Estonia's economy; the airline industry; and the three types of competitive airline industry groups- legacy carriers, low cost carriers, and regional carriers. This is followed by an overview of Estonian Air's competitors and its opportunities for growth. The case provides detailed information regarding the advantages and disadvantages of the Boeing 737 Jet, the Bombardier Q400 Turboprop, and a used Saab 340A turboprop. Finally, the case summarizes Estonian Air's internal analysis and growth strategy, with pertinent input from conversations between Rait Kalda and the vice president of finance and administration, Andrus Aljas. Students are required to complete an operational analysis on factors such as capacity, fuel savings, and utilization rates. If Estonian Air does indeed decide to expand, the case states that the airline will continue with its past practice of leasing the aircraft. Using current financial statements, as well as information presented in the case, students can also prepare a basic net present value (NPV) model and scenario analysis for leasing each of the aircraft alternatives. Finally, students have the opportunity to combine both qualitative and quantitative factors to support their analysis.
In early 2010, Paul Conforti of Finale, the Boston-area premium dessert restaurant, decided to replace its more traditional mystery shoppers with Survey on the Spot to collect market research data. Survey on the Spot uses a smart phone-based 'app' to collect data from actual customers in real time. Based on early results, Conforti was concerned that the results might be 'too good' and his decision to end mystery shopping might be precipitous. Students can evaluate both the new market research technique and the conclusions drawn from the information. Note: Finale and Survey on the Spot is one of two companion cases. The companion case, Finale - Just Desserts, deals primarily with data analysis and data interpretation and has an SPSS data set available. Finale and Survey on the Spot allows students to deal with the managerial implications of the data.
In early 2010, Paul Conforti of Finale, the Boston-area premium dessert restaurant, decided to replace the more traditional research methods with Survey on the Spot mobile surveys to collect market research data. The company used a smart phone-based 'app' to collect data from actual customers in real time. With early results in, Conforti found that while Finale was getting positive results, he questioned whether his summary provided a complete picture and has asked market researcher Felicity Klass to do a more thorough analysis. Students have access to the mobile survey data and can perform their own analysis, drawing conclusions and making recommendations to the restaurant co-founder, based on stated goals for the survey. Note that Finale-Just Desserts is one of two companion cases. This case, Finale - Just Desserts, deals primarily with data analysis and data interpretation and has an SPSS data set available.
In June 2010, New Zealand "ecopreneur" Grant Hall needed to make some hard decisions regarding the future of his company, Good Water. He had started the company with the vision of wanting to sell water in bottles made from local biomass, with the used bottle waste separated, recycled, and transformed into plant containers. These would biodegrade to support new plant-life and eventually local biomass for further production of water bottles. A number of key partners had come together in the wider Good Water Project to develop a revolutionary square, biodegradable, plant-based plastic PLA bottle. These included an environmental trust, the Sir Peter Blake Trust, to which Good Water donated a small percentage of the sales revenue from each bottle. The Good Water Company, selling water in these bottles, had started making a small profit. Grant believed a tenfold increase in PLA bottle sales volume would result in PLA making up the required level of 3-4% of plastic bottles recycled. That level would mean PLA was likely to be separated in the waste stream in New Zealand, and allow his vision to become a reality. Grant had convinced one competitor to adopt the PLA bottle, but overall, PLA volume was still way too low. Grant had also just been told that the Good Water Company's own sales volume did not justify shelf preference at a major supermarket chain - and he knew the business was not well-capitalized to take on a further investment in the bottled water industry that was dominated by two big players. He had called a meeting of his staff to discuss with them how to reconcile his environmental vision with a viable business model.
Briefly describes content of case. In August 2008 two young entrepreneurs created the iPhone application iBART, which offered instant access to all of the San Francisco Bay Area Rapid Transit information. After achieving rapid success, they were at a critical juncture with their start-up. How could they monetize their app? What growth strategies should they pursue for their company?
The owner of Mundell & Associates is making plans to embark on a significant remake of the company culture. To that end, he is considering specific, concrete changes in company policies and practices in order to more fully embed his faith convictions and spiritual values in the culture of the company and the consciousness of employees. Those values have always been present and active in shaping the business; the company is one of the largest companies participating in the Economy of Communion (EOC) project, a worldwide, faith-based, effort to humanize economic activity through use of thoughtful business practices and profit redistribution. The owner is convinced that being an EOC company requires more than sharing profits or following particular practices. It means being an actual community, one marked by the involvement and engagement of all employees. The way forward is not at all clear and so the owner, and students, must consider several possible options, weigh the advantages and disadvantages of different organizational behavior approaches, and devise a concrete course of action.
In the summer of 2008, Nipissing University announced their intent to launch a men's varsity hockey team. Since that time, excitement had been mounting throughout the halls of Nipissing University and within the local community of North Bay, Ontario. It had been a long and at times, challenging journey to bring this team to fruition but with the help of a private group of investors, the Nipissing University Lakers men's varsity hockey team would finally hit the ice in September 2009 and kick-off a much anticipated inaugural season. In January 2009 the Lakers Hockey marketing committee gathered to discuss how best to promote this new team. The Lakers would be playing in North Bay's largest recreational facility - Memorial Gardens, which had a total building capacity of 4,048. Their objectives were clear - the coveted Lakers varsity hockey team would have to garner widespread support and maximize fan attendance. With approximately nine months until the opening game, the marketing team focused on developing the most effective marketing plan to realize these objectives. On March 2nd, they would present their recommendations to the Lakers ownership group for final approval and implementation.
A small oil and gas operator must make a decision about whether to drill in a particular location for oil. After significant geological research, the operator has narrowed the possible outcomes to four possible scenarios, one of which was a dry hole (no oil), and provided his best estimate of their respective likelihoods. Evaluating the prospect requires making long term estimates of both the rate of decline in oil production from the prospective formation and the likely price of crude oil over the coming two to three decades. The second of these was required since drilling expenses occur in the first year or two, but revenues from the wells was generated as oil was produced over decades. To help students frame the issue of future oil prices, the cases discussed issues related to the future global supply of, and demand for, oil.
Ken Grossman walked into Bill Bales' office hoping to find an answer. Grossman, the owner of Sierra Nevada Brewing Company was considering the new reality that he was facing, and he brought the dilemma to Bales, his CFO. Grossman had made a commitment to environmental sustainability, the overriding cultural norm of his organization. Initially, the decision to install the five-phase solar array was made expecting California to provide tax incentives that would save the company a substantial amount of money on the installation. Grossman had received word that the company had run up against the "cap" for the State of California, which meant that they would no longer receive any subsidies for green power installments. With one phase of the installation yet to go, the question of possibly putting the money elsewhere kept nagging at Ken. Previous incentives meant the return on their environmental investments had always been fairly rapid, which enabled the company to continue aggressively pursuing their dedication to preserving the natural environment. Now, however, what to do? Finishing the solar array would be costly. Time to payback more than doubled from seven years to fifteen without the incentives from California State. As it stood, the brewery was light years ahead of industry standards and had completed the installation of the majority of the array.
The focus of this case is a series of ethical dilemmas faced by three undergraduate students, in their pursuit of solutions to perceived mismanagement, financial misdeeds, and possible fraud by their university's administrators. After Calvin Collins, Kent Russell, and Daniel Morris (who became known as the Tech-3) accidentally found confidential university payroll records discarded in a non-secure area, they took the records and their concerns to several administrators. Because they were rebuffed by university officials, the students "went public" to the news media and on to the state capitol. After their public cry for the resignation of the university president, the three students were put on probation and two of the three were arrested on criminal charges. University administrators attempted to break up the solidarity of the three students. After several months of "fighting the good fight," several enticements were offered to Collins by a university trustee. Collins must decide whether to accept the enticements and persuade his friends they should give up their fight to improve conditions at the university. If they continue to demand change, they would be going against extremely challenging obstacles. The administration make it impossible for them to complete their degrees. Continuing their battle will involve much personal sacrifice. Was it time for the students to give up? Had they already gone too far?
Dean Ismail, owner and general manager of the thirty-six-room Super 8 Motel located in Guelph, Ontario, was offered $2.9 million for the motel. After managing the motel for nearly twenty years, Dean and his family were faced with the decision to either sell or keep the motel. If they were to sell the motel, Dean would need to determine if the offer of $2.9 million was actually a fair selling price for the property. The decision needs to be made in the face of significant uncertainty in the local market. New hotels planned for the local area will increase the supply of available rooms by more than 80 percent in the next two years. This significant increase in the supply of available rooms could have a significant impact on occupancy rates and room rates and, consequently, on the revenues and cash flows of the Super 8 Motel. Like many owner-managed businesses, the financial statements of the motel reflect personal and corporate planning issues (e.g., salaries that are above market rates, bonuses, and management fees) making it difficult to identify the income and cash flows that are directly related to the motel operations. In addition, sale of this property could affect the value of an adjacent property owned by Dean. Dean has fourteen days to decide whether to accept the offer of $2.9 million for the motel or reject it, retaining the motel and the future cash flows that the motel generates.