Changes in the external environment and internal responses to these changes demonstrate the impact of government policies and administration on the strategic and tactical options for businesses - government decisions can produce unanticipated threats as well as provide unforeseen opportunities for businesses. This case looks at the provision of financial services both when a banking system is weak and inefficient and when it is liquid, solvent, and highly competitive, seen through the lens of Akbank's adaptation to the evolution of Turkey's banking sector. Of special interest are the effects on financial depth and financial inclusion of a commercial bank's efforts to align its internal capabilities with external opportunities. The film component (available soon) gives one a deeper understanding of both Turkey and Akbank in 2008, to better appreciate the context of Akbank's strategic and operational options. It portrays the dynamism of Turkey and Akbank, as well as both Akbank biases and beliefs of potential customers that might lead to missed opportunities in the provision of financial services for low income households and family businesses. HKS Case Number 1912.0
The city of McAllen, Texas and its partners have worked on attracting an automotive assembly plant to the region for over fifteen years. Under the North American Free Trade Agreement (NAFTA) provision, this region enjoys the advantages offered by both sides of the Mexican-U.S. border. Even during the economic downturn of 2007 to 2008, McAllen experienced a lower unemployment rate compared to other cities in the United States. One of the primary reasons was its close proximity and economic ties to Mexico. Lower labor cost, a right-to-work state and proximity to Mexico were some of this region's strengths, while a high illiteracy rate, limited numbers of automotive suppliers and small workforce were among its weaknesses. Based on publicly available data and aggregate score evaluation methods, McAllen is compared to other potential sites. The case addresses a wide range of issue regarding site selection factors within the automotive industry. Teaching objectives include: 1) to examine essential factors for site location of different industries, including the automotive industry 2) to evaluate the potential sites based on a quantitative method, such as the relative aggregate score 3) to understand other qualitative factors that can affect the decision. The case is suitable for courses and workshops concerning operations management, supply chain management, production management, project management, decision science and management science. Exhibits can be omitted for graduate and executive levels, requiring the students to research and come up with their own factors.
Jeremy Leahman, president of Filtroil, Inc., and Albert Randolph, founder of the firm, had partnered with a supplier in China to ramp up the manufacture of their China-based filtration system and start a new zinc alloy venture. They opened a new factory in Dongwan that was a merger between Shenzhen Filtroil and their supplier, Liu Li-whose own factory was on the verge of bankruptcy. Liu would own 10% of the merged factory and Shenzhen Filtroil would own the rest and acquire all of the necessary equipment. The two businesses filter and zinc would operate under the same roof. One year later Leahman was on a plane headed for China to hash out problems with Liu, who had demanded a monthly raise for himself and his wife, a new company car, and an increase in profit sharing. He had also threatened to delay product shipment to the United States if his conditions were left unmet. Qian Kai Nam (Qian) and Shea Kai Young (Thomas), who ran Shenzhen Filtroil and were in on the zinc partnership, believed that Liu's behavior put the entire business relationship at risk. The case reveals options Leahman could take to manage the situation. The case is suitable for use in organizational behavior, human resource management, and strategy classes at the MBA and executive education levels. The material can be used to exemplify the challenges of changing a U.S.-based company into a global competitor.
This mini-case details the history of Dell and its made-to-order production system. From a simple computer assembly and delivery company, Dell grew to dominate the PC industry by leveraging information and focusing on efficiency throughout the supply chain. However, changes in consumer tastes and supplier cost structure led to the decline of Dell's performance in 2005. What happened? This case is included in Module 2 of the course Business Thought & Action.
Executives at biotechnology firm Genzyme are debating funding a clinical trial for a new version of a medical device called Synvisc. The trial is expensive and the odds of success are not high, but the upside is substantial. The case presents a common business question: invest or not? The case forces students to wrestle with a number of complex issues and analyze the financials of their decisions.
In 2003, in the midst of industry turmoil and company-specific challenges, Stefano Natella was named Global Head of Equity Research at Credit Suisse. Over a six-year period, Natella implemented and refined a new methodology for valuing equity research analysts, both individually and as a collective unit. Natella's system, known as the 'Scorecard' was also used as the basis for compensating, hiring, and promoting analysts. Over time, the Scorecard was refined to allow Credit Suisse to improve its customer service efforts in a way that maximized profitability for the firm.
IFP, Ltd. is a Europe-based multinational mining and minerals company contemplating an investment to produce forest products in Indonesia. The primary case decisions are 1) how to assess political and operating risk, 2) how to integrate economic and political risk analysis in order to select among the alternative spatial and operating configurations, and 3) how to manage operations in order to minimize risk. This case is an effective vehicle for discussing the complex issues involved in operating in the difficult, uncertain political environment of a developing country.
Twitter is a micro-blogging company that allows users to send short text updates to others. The site is used by people, including celebrities, government officials, and businesses. It helps to raise money for non-profit organizations and provides first-responders with information during a natural disaster. Even though almost 10 million people visited the site in early 2009, the site had no strategy for monetizing the traffic. The case allows students to examine potential monetization strategies for Twitter.
Ledina Lushko was diagnosed with Adrenal Cortical Carcinoma in 2008 and sought care at a highly regarded medical institution in the United States. This case lays out her journey through the health care system in detail and all of the effort involved in finding appropriate care. It is meant not to illustrate good or bad care, but to reflect on the nature of the current health care delivery system and serve as a starting point for discussion.
After its successful new U.K. venture, the Hospital for Special Surgery wants to do more of the same, without decimating its core New York City facility. The case provides considerable details about the different options it is exploring.
To protect patient confidentiality, Abiomed, makers of the AbioCor artificial heart, adopt a 30-day "quiet period" surrounding implantations, which is construed by mainstream media as a "news blackout." In late 2002, James Quinn, the fifth transplant recipient, dies after 289 days. A month later, in a New York Times article describing Quinn's pain and suffering, Quinn's widow claims that her husband had not been adequately informed of the likely ordeal. This case raises issues about transparency and communication with stakeholders. The A-case may lead some students to focus on the public sensationalism surrounding the Quinn story, but a closer examination of the case reveals that the more urgent issue for AbioMed is getting the stalled clinical trial back on track and bouying a slumping stock price. The B-case provides a detailed epilogue, including reactions to the Quinns' informed consent lawsuit and AbioMed's handling of the on-going clinical trial and investor relations.
GPS-to-GO is a successful company that has a wealth of brilliant researchers and scientists who have created advanced global positioning systems (GPSs) for complex air-traffic control and logistics systems. Now, the vision of one of the up and coming managers is to use GPS-to-GO's knowledge to dominate the consumer market with premium-priced and feature-rich GPS units. Even though GPS-to-GO is far ahead in terms of GPS technology, the consumer market demands low-cost units and yearly follow-on products, which requires drastically different skills than GPS-to-GO's typical five- to 10-year cost-plus government projects. One of the managers is tasked with how to meet the cost target and market window for the new product, while working with the same engineering group that caused the unit manufacturing problem and launch delays in the first place. The key issues concern 1) engineering-centric companies and their culture, business strategies and processes for managing new product development 2) the implications these strategies and processes have on addressing the needs of customers, shareholders and employees in a totally new market segment 3) the role managers can play in making critical decisions with a keen eye on roadblocks to success, such as culture, inadequate skills and overly optimistic and myopic visionaries. The case includes an Excel spreadsheet with break-even scenarios that professors can use to complement the teaching note. The case is intended for courses in managing new product commercialization, managing technology and innovation, strategic thinking, operations management and leadership.
In December 2008, the ArcelorMittal Dofasco (Dofasco) accounting team was facing a significant challenge. In the past few years, Dofasco had undergone significant ownership changes, and when the firm had first been acquired the market had placed a premium share value on the Dofasco subsidiary. In light of a recent economic downturn, the accounting team was required to reassess the values assigned to the subsidiary's net assets. Dismal forecasted earnings for the operations indicated a potential impairment of the operation's assets under international financial reporting standards (IFRS). The team began with a review of the original fair value estimates, subsequent purchase price and its allocation to various tangible and intangible assets and liabilities. It was discovered the evaluator's fair value assessments for the various intangibles had relied on an income approach, using projected EBITDA derived from each intangible to determine its value. The team wondered how the revised EBITDA projections would change the recoverable value of Dofasco's intangible assets and therefore discover the implications of the current economic situation on the value of intangible assets recognized at Dofasco's acquisition.
What would you do if you witnessed an act of vandalism by one employee toward the property of another? This is the situation that Pat, an employee at The Heritage Business Group, faces when she witnesses a co-worker, Mark, keying a car belonging to another co-worker, Fran. Initially, Mark does not know that Pat saw him vandalize Fran's car. Pat is aware that Fran and Mark had been arguing over the past few months. Part A of the case ends with Pat wondering what she should do. Following Part A are three more parts to the story (found in the teaching note) that can be handed out or projected for the students to read. Each part sequentially adds information about the decision the individual actually made, and presents another decision required by one of the key players (Harry, the owner, in parts B and D) and Mark, the antagonist, in part C). There are three teaching objectives for this case: 1) demonstrate that limitations of a rational decision-making approach when confronted with a complex, emotionally-charged conflict situation 2) analyze a conflict situation in terms of the types of conflict observed, including antisocial work behaviour, and the conflict handling styles used by different individuals in the situation 3) evaluate the short- and long-term implications of making decisions related to antisocial workplace behaviour using different ethical frameworks.
A new production supervisor at an automobile engine plant has encountered his first challenging task. The production supervisor must find a way to diffuse the tension between his team leader and other machine operators on the line. The team leader, the hardest worker among the group, was repeatedly criticized for over-exerting himself in many areas of the line. The workers feared that their jobs would be in jeopardy if workaholics like the team leader started undertaking multiple tasks. In addition, the workers began to feel that they were receiving unequal treatment from the production supervisor as the team leader was given special permission to break team norms. As the morale of the group continued to deteriorate, the production supervisor wanted to confront the team leader about this unique quandary. The production supervisor needed to figure out a solution to best please the team leader and the entire group.
The president of a small Toronto, Ontario consulting firm specializing in sponsorship and experimental marketing looks at adding a public relations division to the firm. Students are required to analyze the external environment, identify corporate strengths and weaknesses, identify qualitative pros and cons, prepare projected statements, look at the timeliness of the option, and evaluate the business plan before arriving at a final decision.
The Swagruha Foods case has been developed to highlight the challenge facing many small and medium enterprises (SMEs) all over the world. There are many SMEs that have successfully overcome the initial survival challenge. They have a stable base of loyal customers, are able to command attractive prices, and have built up a reputation for good quality. Yet they are unable to grow beyond a certain point. Why? What must they do to overcome the growth challenge? Swagruha Foods is a good example of an SME that has enjoyed considerable success, thanks to the dedication and commitment of the Chagarlamudi family as well as to the changing socio-economic situation in India. Yet, there are several indications that it is unable to fully exploit its growth opportunities.
Against all odds, the founder of Mk II Corporation (Mk II) has started an American watch company. The founder, a former investment banker and a Wharton MBA graduate, began his venture in 2002 with no prior experience in the watchmaking trade. He started his company to produce watches in the United States during an era when U.S. manufacturing was in decline and the country had no indigenous watchmaking firms to speak of. In addition, the economy was recovering from the dotcom bust and there was intense competition from large, vertically integrated players. Despite all this, the founder has managed to deliver a few thousand watches and watch parts, and has a growing customer list. His challenge in March 2009 turns from trying to survive to figuring out how to manage Mk II's explosive growth.
A stock analyst is reviewing information about Finning International Inc. He wonders how strategy at Finning's business unit-level is translated into financial and individual performance metrics at the line of business level. The case study describes Finning's internal management systems and shows how the metrics at the various levels are in alignment with the company's overall objectives.