Supplement to case A00024. Towards the end of 90s, mounting losses forced Madhya Pradesh State Road Transport Corporation (MPSRTC), the sole provider of public transport in Madhya Pradesh, to suspend their urban services. As a consequence, organized public transport services ceased to exist in Indore, the largest metropolitan city of the state of Madhya Pradesh. This void was filled by Intermediate Public Transport (IPT) consisting of minibuses, tempos and auto rickshaws. As of January 2004, 300 private minibuses, 150 tempos, and 10,000 auto rickshaws were plying as IPT, but with poor service levels. Lack of public transport was a catalyst for rapid increase in personalized vehicles, and high level of pollution and accidents. Worried over the rapid growth of personalized vehicles, and high levels of pollution and accidents in Indore, policy makers and administrators had made several attempts of reviving the public transport system in the city. In 2005, the Collector and District Magistrate of Indore decided to make another attempt of reviving the public transport. The two cases, Indore City Bus Transport Service (A) and Indore City Bus Transport Service (B) discuss the complexity involved in the planning, rolling out, and running of public transport services in Indore on a sustainable basis. Case (A) details the prevalent socio-economic condition, travel characteristics, and positions taken by various stakeholders on provisioning of public transport service in Indore as of November 2005. Case (B) discusses the challenges during the growth and operation of the services as of June 2008. Unprecedented rise in crude oil prices along with (i) increase in maintenance cost of buses, price of new buses, and bank interest and (ii) decrease/marginal increase in the fare box revenue (more people were shifting to passes) and advertisement revenue depleted the margin of the operators. The fares had not been increased since the launch of services in February 2006.
These three vignettes present various issues around the strategy and management of a private equity firm. In one, a senior partner must decide how to manage an over-extended colleague and how to reduce the risk of the firm's portfolio; in the second, a limited partner must decide how to respond to tensions between general partners in a fund, and in the third, the general partners must decide whether to invest in an intriguing opportunity that lies outside the firm's carefully developed investment strategy.
In many organizations, employees know more about their work than their managers. This reality should force organizations that still cling to the old, top-down style of managing to recognize that many employees today are very capable of managing themselves. This author explains the Why and How of a new style of managing for today.
While American venture capital firms are coated with an aura of glamour they are also shrouded by a cloud of mystery. Just how do they operate? How do they raise their money? Why do some VC firms succeed while others do not? The authors of this article, who were given unprecedented access to key executives of prominent VC firms, answer these and other questions that will take readers inside one of the more mysterious, but critically important institutions in American business.
The smart, aware executive today is doing something different. He or she is asking questions. Almost like leading itself, asking has different techniques and styles. Readers will learn which ones are right and the best fit for them in this article.
Hunkering down may be the preferred strategy in tough economic times. But as these authors suggest, companies that recognize the opportunities and modify their business model, can actually grow. Managers will learn some key tactics that will make their companies stand up and out during tough times.
A manager who regularly steps in to solve a problem for an employee may think that he or she is helping. In fact, this well-intentioned manager is actually limiting - and hurting - the employee. The effective manager enables employees to utilize the full depth and range of their intellect and capabilities. In this article, readers will learn how managers can do that.
Informal and formal direct selling play a particularly important role in developing countries characterized by markets with limited retail sectors. This note explores the practice of direct selling for the company, the sales person and the consumer, as well as the potential of direct selling as a means of reaching the base of the pyramid for both commercial and social purposes.
The majority of new product ideas never make it to market. This note is a concise description of what separates the winners from the losers. In other words, what are the characteristics of good opportunities for successful new products or services? This note is an ideal tool for introducing research and insights about product success rates. This case can be taught in conjunction with the profile "A Personal Genomics Company: 23andMe." This case is included in Module 2 of the course Business Thought & Action.
A successful Canadian road construction and maintenance company is contemplating U.S. market entry via a subsidiary in Texas. The case deals with market entry considerations: speed of entry, the need to invest in learning about a market, and the importance of staying focused on what was a reasonable, original strategy.
This note profiles two companies--Gap Inc. and Deckers Outdoors Corp--with a focus on their value chains. It includes financial information and breaks down the parts of the two companies' value chains for students to analyze and compare. It is intended to be preceded by "Note on the Value Chain: A Framework for Analyzing Firm Activities." This case is included in Module 1 of the course Business Thought & Action.
This case details the history of Zantac, one of Glaxo's most successful products, from inception to deterioration when faced by the rise of generics. In doing so, the mini-case describes the main players, trends and obstacles dominating the pharmaceutical industry today. This case is included in Module 1 of the course Business Thought & Action.
When social media propagate a complaint about poor customer service, an international media event ensues. How do viral videos spread and what can firms do about them? This case dissects an incident in which a disgruntled customer used YouTube and Twitter to spread a music video detailing United's mishandling of his $3,500 guitar and the company's subsequent refusal to compensate him. The song was called "United Breaks Guitars." Within one week it received 3 million views and mainstream news coverage followed, with CNN, The Wall Street Journal, BBC, the CBS Morning Show, and many other print and electronic outlets picking up on the story. The mechanics of viral propagation are uncovered and the limited opportunities for response by the firm are revealed. The case supports the notion of the Internet as an insurgent medium, better at attack than at defense.
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.
This case illustrates HUL's conflict resolution and people development policies using a 'Leading from the middle' example. The story centers around the challenges faced by an HR manager at a factory who must meet organizational objectives, while handling multiple trade unions that are resisting change as well as having conflicts amongst themselves.
The purpose of this note is to consider the decisions that firms' leaders make about the scope of their business. It examines three companies--Domino's Pizza, General Mills, and General Electric--who define their businesses in different ways and asks students to evaluate them from the perspective of a potential investor. They should consider the following: What does the company do? What does it sell, and how does it make money? Does the company operate in more than one line of business, and why? Which of its products or businesses make money? What are its prospects for the future? Why does each company exist in its form (i.e. Why are their lines of businesses under the control of one firm)? This short note gives students an introduction to thinking about firms from a managerial/strategic level. This case is included in Module 1 of the course Business Thought & Action.
This mini-case provides a concise description of Ford's early history, highlighting milestones like the debut of the Model T, the use of labor specialization, the first moving assembly line, the famous "$5 a day" plan for employee motivation, etc. The mini-case focuses on the challenges that Henry Ford faced (timing production activities, industrial shortages, price increases, etc.) and how vertical integration helped him to overcome many of these challenges. This case is included in Module 1 of the course Business Thought & Action.
Coping with the complexity of today's business environment is not about predicting the future or reducing risk. It's about building the capacity, in yourself, your people, and the organization to adapt continuously and learn speedily, in order to maximize the chances of seizing fleeting opportunities. These authors' excellent suggestions will help today's leaders cope with complexity.
It may make sense to offer 12 varieties of lattes, at least to the company that markets the offering. In most cases though, too many choices create complexity and frustrate the customer. Moreover, there are times when the offering flummoxes the company's staff. Slimming and streamlining the offering is the way to go, says this author, who suggests 3 practical steps an organization can apply to simplify things.