The new chief executive officer (CEO) of ING Insurance Asia/Pacific wants to improve the regional operation of the company. ING Group was a global financial services company of Dutch origin with more than 150 years of experience. As part of ING International, ING Insurance Asia/Pacific was responsible for life insurance and asset/wealth management activities throughout the region. The company was doing well, but the new CEO believed that there were still important strategic and operational improvements possible. This case can be used to discuss the local versus regional or global management issue and will yield best results if the class has already been introduced to different strategic and organizational alternatives in the international business context.
Over the past two years, ING Insurance Asia/Pacific had successfully implemented a new organizational and operational framework called Towards Performance Excellence (TPE), which was developed with inputs from functional heads, senior management and staff at the business unit level. TPE detailed and organized everything ING Asia/Pacific needed to execute its strategy effectively. TPE divided ING's business processes into six core categories: portfolio, marketing, organizational, operational, reputation and financial. Each category included aspects of execution known as drivers, which required managers to identify specific objectives and key performance indicators (KPIs) for each driver or sub-driver. The case includes many original exhibits and is ideally taught as the follow up case of the ING Insurance Asia/Pacific, Ivey product #9B06M083 or as a standalone case, which illustrates a real example of regional versus local organizational management.
In 2006 Wal-Mart, the second largest firm in the world by sales, was looking to improve its already efficient supply chain. The company's supply chain was closely integrated with its retail and information systems strategies and has been developed incrementally over the past 40 years. However, rivals are copying every aspect, from the way Wal-Mart cross-docks product in warehouses, to Wal-Mart's use of a sophisticated database to capture, store and disseminate store-level information to suppliers. Wal-Mart's new executive vice-president, logistics was overseeing a handful of initiatives designed to improve the firm's supply chain. However, it was not certain that these initiatives were going to have a significant impact on Wal-Mart costs, and he needed to consider what the company should do to stay ahead of the competition.
Faced with capacity constraints at the company's river fed facilities, the president and general manager of Piscifactorias de los Andes (Piscis), the largest trout farming company in Peru, is considering an option to create a trout farm on Lake Titicaca. Although Titicaca was the largest lake in South America and was in many ways ideally suited to trout farming, all previous attempts to commercialize the lake's fishery had failed. In addition, Piscis faced potential opposition from local fishers and environmentalists. Titicaca was also too distant from the company's existing fish plants. Therefore, if it were to establish operations on the lake, Piscis would need to build a processing plant at a cost of several million dollars. However, because of the region's history of political instability and violence, financial institutions were reluctant to offer loans.
A student project team must recommend to a firm whether or not it should acquire its largest competitor in the salmon farming industry, and if so, at what maximum price. The case does not provide enough information for students to solve the case, instead, students must think about the data and analysis they would need in order to answer their client's question. This case highlights framing a strategic problem for analysis and decision making as well as the preliminary analysis and planning required for efficient and effective data gathering. The case provides an opportunity to focus on secondary sources of data and introduces students to the resources available through the university library.
The case begins with an overview of the business environment that led Hydro-Quebec to adopt a new approach to managing its information resources. The main external factors at play are described, along with their impact on Hydro-Quebec's decision to create six independent corporate divisions. This restructuring had the effect of substantially modifying Hydro-Quebec's organizational environment. The case chiefly describes how the company's response to these external pressures led to major internal changes, such as the establishment of a shared services centre and the transfer of responsibility for information resource management to the divisions. The case demonstrates how, through a major project to computerize Hydro-Quebec Distribution's (HQD) activities, a new IT management model came to be and how the sharing of roles and responsibilities was implemented. Finally, the case study discusses the challenges faced by the company in implementing the new information resource management model.
In a premortem, team members assume that the project they are planning has just failed--as so many do--and then generate plausible reasons for its demise. Those with reservations may speak freely at the outset, so that the project can be improved rather than autopsied.
Employees in stigmatized occupations can be helped with an array of techniques to cope with or even feel proud of their jobs, including developing an occupational ideology to confer a more positive image on the work; creating social buffers such as professional associations; and avoiding specifics in conversation with outsiders.
Failing to reduce poverty by supporting the wrong microcredit program can tarnish a company's good name. Executives in charge of corporate social responsibility should insist on clearly defined measures of success, invest in improving microcredit's effectiveness, and support the growth of small companies in regions of poverty.
For customers, value has two components: benefits received and price paid. After gauging their customers' perceptions of value, managers can plot a simple chart that reveals any misalignment and use it to balance the benefit-price equation.
Companies are beginning to use their brand-enhancing sponsorship of teams and events internally, to motivate employees or facilitate major structural change. Sports-related communications and incentives can create cohesion and foster pride in the company.
Chris Van Dyke, the CEO of the outdoor apparel start-up Nau, offers some intriguing ideas about how to engage a generation of customers who are comfortable shopping online and eager to enter into a dialogue with the companies they buy from.
The Delphi technique involves recruiting panels of experts from a variety of fields and asking them to iteratively evaluate predictions about the future of, say, an emerging innovation until they reach consensus. Shaping the strongest predictions into several possible scenarios prepares managers to act quickly when one begins to unfold.
CEOs tend to have a rosier view of senior management's performance than other top team members do, according to new research--and it looks like the former need a reality check. The authors offer three simple questions that can provide one.
If designers are brought into the innovation process at the very beginning, they can test prototypes and share users' responses even as the business case is being developed, enabling companies to nimbly adjust to changes in market opportunities.
As the chief financial officer of The Walt Disney Company, Tom Staggs was responsible not only for the financial management of the company, but also for the communication of the company's financial and strategic objectives to its investor base. Because of Disney's stature as the world's most iconic entertainment brand, the company had a particularly broad investor base: over 991,000 common shareholders in fiscal year 2006 compared with 51,400 for Time Warner. Staggs had to develop and implement a communication strategy that was appropriate for the diversity of this investor base, which included individual, institutional, brokerage house, and mutual fund investors. In doing so, he had to be mindful of the fact that these constituencies often had different time horizons and investment perspectives. In addition, Staggs had to bear in mind several other factors. First, he had to consider that any message delivered was perceived by investors as a direct reflection of management's capability and credibility. Second, he had to consider how the company's stated objectives influenced the behavior of its employees. Third, he had to decide how to implement the communication strategy across a wide array of channels, keeping in mind the purpose of the forum, regulatory requirements, and investor expectations.