The case is set in 2023; the protagonist is Chris Kempczinski, CEO of McDonald's Corporation. McDonald's is the world's largest hamburger fast-food restaurant chain, with 40,000 restaurants in over 100 countries, $23 billion in annual revenue, and a net income of $6 billion. Since being appointed CEO in 2019, Kempczinski launched the Accelerating the Arches strategic initiative (MCD, also the ticker symbol): maximize our Marketing, commit to the Core Menu, and double down on the 4 Ds of delivery, digital, drive-thru, and development. Although McDonald's has significantly outperformed the broader stock market for most of the past decade, Kempczinski wonders how long this can last. McDonald's faces significant headwinds, including recessionary pressure, high inflation, supply chain problems, rising wages, and significant labor shortages.
In the summer of 2022, the Lyric Opera of Chicago (Lyric), a major opera company, is facing a deepening challenge. Lyric has seen ticket sales decrease, declining from 54% of revenue in 1998 to 33% by 2018. Since 2010, the primary source of this decline has been a loss in subscribers--high-value patrons who attend several operas per year. This subscriber lack is concerning not just for the lost ticket sales but also because subscribers are far more likely than single-ticket buyers to make gifts (a stream that now constitutes 51% of Lyric's revenue). As it plans to counter this downward trend, Lyric's marketing team has two questions to answer: First, the team must decide which audiences to focus on to fill its empty seats--past subscribers, "opera-primed" lookalikes of past subscribers, more diverse audiences closer to Chicago's urban core, or millennials; then, once the team chooses a target audience, it must determine how Lyric should address that audience with its product, customer experience, and opera programming choices.
When staff as well as investors participate in a profitable exit by a global private equity firm, the industry pays attention. KKR's sale of CHI, a garage door manufacturer, for a 9.8X multiple of invested capital (MOIC) made headlines in early 2022 as one of KKR's highest returns since the 1980s and for CHI's hourly workers and truck drivers for whom the pay-out would be life changing. More than 600 strong blue-collar workforce got an average of US$175,000 each, rising to US$800,000 for the longest serving employees. KKR had acquired the company in 2015 for US$700 million, and sold it to Nucor Corp for US$3 billion in early 2022. The celebrations were the result of a movement led by Pete Stavros, Chairman of CHI, and also Co-Head of the Americas Private Equity platform at KKR, who had worked with CHI management to give every employee an equity stake in the company, allowing them to participate in its growth as well as a substantial return upon KKR's exit. The case shows the power of equity ownership and incentive structures, as well as the challenges of implementing such fundamental changes in any business, setting the scene for discussions that go beyond DEI (diversity, equity and inclusion) to tackle issues such as social justice and the equitable distribution of wealth. https://publishing.insead.edu/case/kkr-chi
When staff as well as investors participate in a profitable exit by a global private equity firm, the industry pays attention. KKR's sale of CHI, a garage door manufacturer, for a 9.8X multiple of invested capital (MOIC) made headlines in early 2022 as one of KKR's highest returns since the 1980s and for CHI's hourly workers and truck drivers for whom the pay-out would be life changing. More than 600 strong blue-collar workforce got an average of US$175,000 each, rising to US$800,000 for the longest serving employees. KKR had acquired the company in 2015 for US$700 million, and sold it to Nucor Corp for US$3 billion in early 2022. The celebrations were the result of a movement led by Pete Stavros, Chairman of CHI, and also Co-Head of the Americas Private Equity platform at KKR, who had worked with CHI management to give every employee an equity stake in the company, allowing them to participate in its growth as well as a substantial return upon KKR's exit. The case shows the power of equity ownership and incentive structures, as well as the challenges of implementing such fundamental changes in any business, setting the scene for discussions that go beyond DEI (diversity, equity and inclusion) to tackle issues such as social justice and the equitable distribution of wealth. https://publishing.insead.edu/case/kkr-chi
Ambareen Musa started Souqalmal by adapting the business model of UK-based online insurance brokers (e.g., MoneySuperMarket) to the UAE context. This two-part case describes some of the ups and downs of her journey, emphasizing the need for innovation and nimbleness in a rapidly changing competitive and regulatory environment.
Ambareen Musa started Souqalmal by adapting the business model of UK-based online insurance brokers (e.g., MoneySuperMarket) to the UAE context. This two-part case describes some of the ups and downs of her journey, emphasizing the need for innovation and nimbleness in a rapidly changing competitive and regulatory environment.
Manuel Hernandez, mill manager at Duoro Mine (Duoro), located near Arequipa, Peru, was considering options for increasing output to take advantage of a recent spike in commodity prices. It was Wednesday, January 25, 2023, and prices for copper and gold, the main products of Duoro, were trading at historical highs compared to their five-year average. The mine manager had asked Hernandez to make recommendations about increasing production, and Hernandez had identified three options. Students are expected to evaluate each option and decide which, if any, would address Diaz’s objectives of increasing output and minimizing financial risks.
While not every organization will need to build a brand in the metaverse or transact with cryptocurrencies, all organizations manage credentials as issuers, holders, and verifiers. That's why the one piece of Web3 technology that managers should begin looking at is decentralized credentialling systems based on blockchain. While it's still early days for this application area, pilot projects are showing promise, in addition to highlighting issues that must be addressed.
Developers of many new AI solutions produce statistics showing that the tools make critical decisions with greater accuracy and efficiency than humans. But managers tasked with evaluating these applications need to peel back the layers of developers' performance claims and focus on the ground truth used to train and validate the AI tool. This article explains what ground truth is, how to identify it for a given tool, and how to understand the implications for tool quality.
Much of the quantum research community is focused on showing quantum advantage that a quantum computer can perform a calculation that is impossible on a classical computer. The authors contend that enterprises should focus instead on seeking opportunities for quantum economic advantage when a quantum computer provides a commercially relevant solution faster than a classical computer could, or when a quantum computer provides viable solutions that differ from what a classical computer yields.
Singapore Airlines Ltd (SIA) is an aviation company headquartered in Singapore. It is majority-owned by Temasek Holdings, a Singapore government investment and holding company. SIA adopts various strategies to sustain and grow its business operations, even in the midst of the Covid 19-pandemic, while devising plans to propel it toward a bright future. The evolving key issues and challenges SIA faces include: (a) Covid-19 pandemic travel restrictions that have impaired SIA's business operations; (b) the lack of sustainable alternative revenue generating options outside of commercial and cargo flight services; (c) its inability to cover expenses and recurring payments that affected the optimization of its commercial flights operations that eventually led to its underutilization; (d) damage to its corporate reputation stemming from backlash from environmental activism groups in Singapore and other eco-conscious customers; (e) developing viable business strategies to bounce back while navigating the post-Covid-19 pandemic era. Aside from these, when examined from the decarbonization and environmental sustainability across its operations front, there are strategic systematic issues in SIA's usage of its new-generation aircrafts, adoption and implementation of low-carbon technology. The case is intended to help participants to better appreciate how an airline operates to sustain its business operations and growth.
In August 2022, the Pentagon tasked U.S. Air Force Captain Victor Lopez to launch a new office for AFWERX, an Air Force innovation unit that leveraged commercial developers and military talent to acquire advanced technologies. This task was particularly arduous because Lopez would be the first and only member of this new office. Having been granted flexibility in the setup of the office, he pondered the complexities of his assignment, the decisions around organizational design he would have to make, and reflected on his recent experiences, particularly those as part of the team that launched the Air Force's AI Accelerator.
Shelly Sun had founded BrightStar Care, a home health care and medical staffing agency, 20 years earlier and had grown the business to over 300 franchised locations and $654 million in annual system-wide sales. Sun had spent years working to get "the right people in the right seats" and now had a strong bench of executive talent. Sun loved being an ambassador for BrightStar and spent considerable time with external stakeholders, including policymakers. But there were times she still felt she needed to take the reins-after all, no one knew BrightStar like she did.
In 2021, a coalition of seven First Nations communities was exploring a potential partnership with Premium Brand Holdings Corporation (Premium Brands). If executed, this partnership would constitute the single largest investment in the seafood industry by any Indigenous group in Canada. Chief Terry Paul, the Chief of Membertou First Nation in Cape Breton, Nova Scotia, had ambitious goals. He desired to develop his community to become economically and financially self-sufficient in order to free it from dependence on government funding. In 2020, John Risley, co-founder of Clearwater Seafoods Incorporated (Clearwater), shared his plans to retire with Paul and asked him to consider purchasing the company, as he believed Paul and his community would be good stewards of Clearwater. Seeing the opportunity, Paul formed partnerships with six other First Nations communities in Atlantic Canada, but they needed to secure additional funding, and sought a corporate partner to assist. While Paul searched for a partner who would be willing to eventually allow the coalition to purchase 100 per cent of Clearwater, the best offer he received was for a 50/50 ownership split with Premium Brands. Although Premium Brands was not willing to accept Paul’s ownership criteria, this deal would have a significant impact for the First Nation communities. Should Paul set aside his criteria and accept the counteroffer? How could he secure this deal while maximizing the benefit for all stakeholders?
Syngenta AG (Syngenta), the Monsanto Company (Monsanto), Bayer Crop Science (Bayer), BASF SE (BASF), Dow AgroSciences (Dow), and DuPont de Neumours, Inc. (DuPont) were the only multinational firms engaged in the discovery of new agrochemical and seed technologies. Despite their fierce rivalry, the six competitors had forged strong collaborative relationships to manage the rising challenges in developing and launching agricultural innovation. A wave of unprecedented mega mergers transformed the industry into even fewer and larger firms. Syngenta, Bayer, BASF, and Corteva became the four new leaders in agriculture. As rivalry increased and innovation became even more challenged, the four competitors were pushed to reassess how they could innovate and collaborate together. Their key challenge was to determine how they could work together to develop the next wave of innovation in agriculture without compromising their individual strengths and competitive advantages.
This case follows Sam Byker, the Founder and CEO of Atticus, as he creates, scales, and fundraises for the company. Atticus is a platform that serves individuals in need by connecting them with law firms that can help. The case covers the company's history from its inception through to its Series A financing. The case explores the tension Byker faces between Atticus' opportunities for growth and maintaining focus on the company's mission when selecting a lead investor. The first vignette leaves Byker choosing between two Series A term sheets: one from an impact-focused investor, and the other from a venture capital firm with a track-record of building iconic brands. The second vignette explores a set of strategic decisions Byker must make that place growth and impact in tension with one another.
The case outlines the development of Boston-based start-up Rethink Robotics Inc., a leader in a rapidly growing part of the booming robotics market: collaborative robots (cobots), which work side by side with humans. This case also traces the moves of a mid-sized German hardware engineering company, HAHN Automation, a leader in integrated automation systems. With a keen interest in cobots, HAHN Automation had invested in the start-up and acquired the rights to distribute, sell and service Rethink Robotics' products globally. This had made HAHN Automation a leader in the growing global market for cobots. When Rethink Robotics suddenly announced that it was liquidating, HAHN's leaders needed to act. They saw three options: acquire, develop IP in-house or find another solution.
In June of 2022, Jada Abimbola, chief executive officer and owner of Workplace Safety Trainers (WST), needed to develop a strategy for the business after experiencing stagnating profits during the coronavirus pandemic. WST was one of Ontario's foremost private occupational health and safety companies, providing training for businesses that needed to comply with the standards of the Ontario Ministry of Labour, Immigration, Training, and Skills Development. Abimbola was considering several alternatives to revive the business while remaining committed to its new employee-centred focus: maintain the status quo, offer first aid training, or develop and sell a new line of physical goods. Abimbola was also considering cashing in on her investment by selling the business and moving on. This case will also serve as a talking point for the importance of occupational health and safety in various industries.