November 29, 2010 was "Cyber Monday," one of the busiest online shopping days of the year, with the potential to approach $1 billion in online sales in North America. The chief designer of fashion company Donna Karan New York (DKNY) was facing a difficult situation. On this particular Cyber Monday, activists for the animal-rights group People for the Ethical Treatment of Animals (PETA) had posted simultaneous messages on DKNY's Facebook page. Anyone viewing the page could not fail to discern the message, "DK Bunny Butcher." This action by PETA was the culmination of several years, beginning in 2005, of attempting to convince DKNY to stop using fur in its collections. This November 29 message was a sharp reminder to both DKNY and its Cyber Monday customers that, to this point, the company had refused to stop including fur. This message was available to be viewed by DKNY's over 200,000 fans as well as the millions of online Cyber Monday shoppers. The chief designer was unsure how to respond: on one hand was the desire to clearly explain the use of fur, on the other was to avoid escalating the publicity surrounding the matter. She needed an immediate strategy that would retain her brand's image and protect future sales.
The Tim Hortons Brier (Brier) is an annual men's national curling championship in Canada. In this case, students will assume the role of Peter Inch, Chair of the 2011 Brier Host Committee to create/finalize the promotional plan for the 2011 Brier, to be held in London, Ontario. Students' objectives are two-fold: i) drum up interest for the event and the sport of curling and ii) execute a safe, and profitable event.
At the University of Wyoming, home games played by the men's basketball team generated significant revenues for the Athletics Department through ticket and concession sales. With the 2009-2010 season ending, it was time to forecast revenues for the upcoming season. Even though ticket prices were already set, providing a revenue forecast was difficult, as the schedule of home games for the 2010-2011 season was not yet known, and both ticket and concession sales for each game were uncertain.
Sumeru Software Solutions was a software-development-consultancy organization headquartered in Bangalore, India, with offices in Washington D.C., Dubai and London. It began operations in July 2001 as a single project with two employees, and grew to an organization with approximately 200 employees over a period of 10 years. The founding objective of Sumeru Software Solutions was to support Art of Living's (AOL) social development initiatives through profits earned from delivering high quality services. The Art of Living (AOL) was founded in 1981 by Sri Sri Ravi Shankarji as a not-for-profit, educational and humanitarian non-governmental organization engaged in stress-management and service initiatives. Art of Living offered stress-elimination programs, which included breathing techniques, meditation and yoga that were intended to help individuals get rid of stress and experience inner peace. Sumeru had developed a unique culture that combined corporate culture with the Art of Living principles of Seva, Satsang, Sadhana and smiling even in the face of adversity. The organizational culture was based on the AOL values of a stress free mind. In line with the AOL principles, the four pillars of Sumeru culture were ethics, caring, sharing and trust. It purported to follow a peaceful yet aggressive way of doing business called "Serene Dynamism." Sumeru tried to balance happiness, productivity and profitability. Harish Ramachandran, CEO of Sumeru Software Solutions, had created an enterprise that was different from other IT organizations. He was wondering how he would sustain the culture of the organization and make Sumeru a high performance company over the next 10 years as it expanded its business and hired new employees.
The China national image film "People Chapter" - officially a sub-series of the "Experience China" campaign - was launched by the Chinese government to coincide with President Hu Jintao's visit to the United States in mid-January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per day, and had appeared approximately 8400 times when the broadcast ended on February 14, 2011. The video showed a series of Chinese people, ranging from ordinary citizens to celebrities, in various areas. It was a publicity effort aimed at promoting a truer image of China abroad, and further signalling that China was opening to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly controversial since the initial release of this promotional film. Experts from China and abroad were skeptical of the effectiveness of the campaign in promoting the national image of modern China to the world.
This note states that growth research demonstrates that growth is much more than a strategy and it happens when the right kind of leadership, internal environment and processes come together to create a small-company-entrepreneurial soul in a large-company body. The Growth System Assessment Tool that illuminates the presence of growth inhibitors, nonalignment, and bad growth behaviors is discussed, and students are provided with a mini-assessment model of this tool to use to start thinking about how to create their own System for enabling and promoting growth mindsets and behaviors.
The Paddle8 case is a short case that presents the idea for a new business in the global art market and asks students to evaluate whether it will work, given the structure and unique workings of the art market. Paddle8 is a New York-based startup that partners with well-known galleries to offer art works from their collections for sale on the Paddle8 website to carefully selected, globally-dispersed members. The firm aims to help galleries overcome their geographic limitations and to make art more accessible to a wide range of new collectors with the help of its technology platform. The question is: will this succeed in the context of the art market where exclusive access is a prime driver of value?
This case explores the dynamic set of political risks raised by a local-partner contract renewal within the context of Syria's unfolding political upheaval. Cambell Technologies, a US-based software firm, was evaluating whether to renew its licensing agreement with Elevate, its Damascus-based distributor. Elevate's strong sales performance and sound management seemed to justify a renewal of its agreement, but the possibility of political change in Syria added potential new variables to Campbell's calculus. The case protagonist, Steven Fox, CEO of risk assessment and advisory firm Veracity Worldwide, had to evaluate the risks at play and advise Campbell's CEO on whether to renew its relationship with Elevate Software Solutions.
Business Intelligence Advisors, Inc. (BIA) was an investment research firm that had developed methods to help professional investors discern when CEOs and other executives in publicly traded firms "either lacked confidence in or were conveying less than complete or reliable information" in their public statements. BIA aimed to give its clients a better way of interpreting information provided in analyst calls, media interviews, and other events where executives publicly faced skeptical questions and had to give unscripted answers. BIA's methodology used verbal and nonverbal cues to identify executives who parsed their words too carefully or displayed discomfort with what they were saying. In analyzing the case, students will learn about the role of information in markets-how investors get it, how they process it, and why it matters. The case asks students to evaluate why BIA's methods might work and to analyze how BIA should leverage its approach to build a sustainable business.
This note describes capital efficiency metrics including RONA, ROIC, and EVA. This note is intended to be used with the case "Boeing 737 Industrial Footprint: The Wichita Decision," HBS No. 612-036.
The note discusses the modularization of design, and the modularization of manufacturing in the commercial aerospace industry. It is intended to be taught with the case, "Boeing 737 Industrial Footprint: The Wichita Decision," HBS No. 612-036.
The case examines the circumstances leading up to the Boeing Company's decision to spin-off its Wichita Division. This case is intended to be taught with two other notes: "On the Use of Capital Efficiency Metrics," HBS No. 612-034, "Modularity in Design and Manufacturing: Application to Commercial Aircraft," HBS No. 612-035.
When Diane Paulus, artistic director and CEO of the American Repertory Theater (A.R.T. - also seen spelled as American Repertory Theatre) first started in 2008, she attracted media coverage around an aesthetic that aimed to give the audience more ownership over the theater experience, excited theatergoers by experimenting with new venues and received critical recognition for the breadth and range of the work she staged. Paulus also recognized the changing realities in theater, which included dropping subscription numbers and an increase in single ticket buyers. Paulus, inspired by the mission of the A.R.T. - to expand the boundaries of theater - hastened a shift in the A.R.T. business model. Her new plans included operating two unique segmented venues, creating and presenting varied content that aimed to be both challenging and popular, and driving a sales and marketing campaign focused on single ticket buyers, memberships and dynamic pricing. Early results showed some promise; the A.R.T. was closer to break-even than in previous years. However, some questioned if the A.R.T. was beginning to look like a commercial theater, focused on presenting theater that sold, rather than truly expanding boundaries. Despite the questioning, Paulus remained committed to fulfilling her vision of the A.R.T. mission in order to solidify A.R.T. as a leading and financially stable not-for-profit regional theater.
A partner in the public sector operations strategy practice of International Business Machines Corporation (IBM) must prepare for a briefing for United States Air Force (USAF) senior leadership proposing ways for the USAF to recognize significant cost savings and continuous process improvements in its Financial Services offices (FSO). Presently, each of the approximately 100 USAF bases around the world has its own local FSO that provides pay and travel processing and customer support. Similar processes are performed at each location. Staffing and quality assurance are managed locally, and legacy systems have been modified over time in response to local preferences. The IBM team has collected a vast amount of base-level process data and conducted focus groups with USAF financial management leadership, FSO personnel, and FSO customers; the partner's team must analyze the Current State and deliver a comprehensive set of cost savings' recommendations to maintain the current level of services proficiency.
After working together on a university business plan, two entrepreneurs had worked for three years to develop their venture: Shutout Solutions Inc. Their startup venture was established in response to an issue familiar to most hockey players: notoriously smelly equipment. While their familiarity with hockey equipment helped them identify a specific problem, subsequent research had revealed a much broader issue: the need to clean products that were made of micro-fibre. Utilizing a technology that addressed the micro-fibre odour issue, they believed they had a five year opportunity window to develop and profit from the business before it was imitated or superseded. As the considered their options, they realized that they may have to choose to focus their resources on a single product line rather than continue to develop their current portfolio of a detergent, a body wash and a spray. They also questioned whether they were using the right channel - gyms and sporting goods stores - to reach their customers. The opportunity to pursue bulk institutional sales was also intriguing, though it would require a different sales, pricing and distribution strategy. And they also considered how they might respond to an offer to sell the company in its current form.
A junior investment analyst at Maple Toronto Fund (the Fund), a “deep-value shop” whose main strategy was to invest in deeply undervalued businesses, was screening hundreds of small-cap stocks and came across HQ Sustainable Maritime Industries Inc. (HQS), an aquaculture and aquatic product processing company that operated in two product segments in China. A quick look at HQS’s financials suggested to the junior investment analyst that he had found the “holy grail” of value investing: a net-net stock. The junior investment analyst knew he had to perform in-depth due diligence to estimate the stock’s intrinsic value and determine whether the stock was truly undervalued. He wondered how to tackle the valuation; in addition to developing a deep understanding of the industry and the company’s business model and numbers, he considered the value-investing-based valuation approach. The junior investment analyst knew that demonstration of thorough analysis and accurate valuation of HQS might convince senior management of the Fund to acquire a substantial stake in HQS. If this investment was profitable, it could boost his career and prospects of advancement within the Fund. The junior investment analyst had one week to put his presentation together.
Rogers Communications’ new president and chief executive officer (CEO) contemplated the future growth opportunities of the company. The CEO was taking control of Rogers at a high point — it was a powerful player in all areas of the telecommunications sector including wireless, television, Internet telephone, and landline telephone. However, competition in the industry was also at an all-time high and innovations were abounding. The CEO knew that to successfully develop Rogers’ strategic direction for the future, he would have to make tradeoffs that would require a strong understanding of the competitive landscape and the future of the industry. Could Rogers afford to be a leader in all four product areas: wireless, television, Internet, and landline telephone? Where should it be willing to lead and where should it be willing to lag behind competitors? Should it think about its future as four (or less) distinct businesses or as one company? Should it think about entering markets in which it did not currently have a strong presence? How much financial flexibility did Rogers have for enacting any future strategies? In making tradeoffs, Rogers would have to explore its resource strengths and weaknesses: this would allow it to gain an in-depth understanding of its competitive advantage. Understanding its competitive advantage would help it make decisions concerning future resource investments that would allow it to lead the industry. No matter which tradeoffs Rogers considered making, the results needed to help it continue to outperform its competitors by maintaining net margins of at least 20 per cent.
An entrepreneur is at a crossroads. He has successfully executed a pilot event in Las Vegas for THUNDERBALL!, his long-drive golf media property that includes live events, television production, and sports wagering. He has also secured a prime-time airing commitment with The Golf Channel for three episodes. However, he must cover the costs of hosting a live event and producing it as a television show. The business model would combine sponsorship from television, event tickets, commissions for players, merchandise, and a partnership with a licensed casino for wagering. This case exposes readers to the world of television/media production and financing and the challenges entrepreneurs can face in spite of a successful initial effort.