Introduces students to factors that impact global equity flows, including institutional friction, investor protection, firm visibility, firm understanding, and culture.
Explores the globalization strategies of Natura, Brazil's largest cosmetics company. Founded in 1969, Natura grew using a direct selling model. Led by its three founders, the firm made distinctive use of Brazil's diversity and became characterized by high ethical and environmental standards. Natura began to seek international markets in 1982, but experienced many setbacks until surviving the economic crisis in Argentina in 2001. The company opened operations in France and Mexico in 2005, and the three founders are now exploring opportunities in Moscow. To pursue further globalization, Natura must now decide whether to continue to rely primarily on the direct sales model or to experiment with other models--and whether to make acquisitions or become part of a larger group.
The case traces the history of Ahold, the world's third largest food retailer, describing in detail the events in the 10 years leading up to its collapse. After the new CEO, Cees van der Hoeven, took over in 1993, Ahold embarked on a program of rapid expansion with a target of 15 per cent growth in earnings per share per year. The strategy took the form of penetrating new geographic markets and diversification into related industries. While van der Hoeven appeared to be achieving his targets, in reality, he was sowing the seeds of his own destruction. While the apparent reason for Ahold's downfall was the discovery of fraud at one of its US subsidiaries, the actual causes were much more complex. The company itself survived, thanks in part to the existence of a "poison pill", but was radically restructured over the next two years with many of van der Hoeven's ventures being dismantled. The case offers the opportunity to discuss many of the common causes of company failure: 1) poor strategic decisions, 2) over-expansion, especially through ill-judged acquisitions, 3) a dominant CEO driven by greed and hubris, 4) weak internal controls, particularly in regard to remote operations, 5) ineffective boards. The case can also be used to comment on the existence and effect of "poison pills" and other restrictions on ordinary shareholder power; corporate governance and the many reforms now in place or being proposed; and how distant operations can be effectively controlled.
To ensure transformation beyond its core brand, the European management team of Eccho, a globally operating fast-moving consumer goods company, had decided to invest in building leaders who could deliver growth in new categories. This case describes how Eccho goes about putting together a European leadership development program.
One of six cases that describe the roles and responsibilities of managers at each of the hierarchical levels of management within the U.S. Stores business unit of Staples, the world's largest office supply company. Together, the cases form a complete integrated package. Explores five distinct jobs--store manager, district manager, regional vice-president, division senior vice-president, and president of the U.S. Stories business units--and, for each level, describes the key management tasks, planning, decision-making, and leadership processes and critical choices that lead to superior execution and operational performance. Provides background information on Staples' organization and strategy.
The managing director of Pakistan State Oil (PSO) must oversee the most significant transformation in the company's 29-year history, from a lumbering bureaucracy-laden state enterprise to the most technologically sophisticated oil marketing company in Pakistan. The company had recently embarked on a New Vision marketing program, which included loyalty cards, a 24 hour toll-free customer relations line, and renovated state-of-the-art service stations replete with convenience stores and Internet kiosks. However, at the time of the case, only about one in four service stations had been renovated under the New Vision program. A more recent proposal involved automating the company's retail outlets by linking online tracking of fuel deliveries to retail outlets, where specially designed sensors could monitor gasoline inventory and automatically place orders when stocks were low. Retail automation would allow PSO to know its exact inventory at any given time and thereby more efficiently manage its supply chain and logistics. To keep capital expenditure costs within limits, the managing director must decide whether or not to invest in retail automation or expand the company's New Vision program. At the same time, deregulation of Pakistan's oil industry was expected to result in increased levels of competition.
When Michael Feinberg and Dan Levin established their fledgling Knowledge is Power Program (KIPP) school in Houston in the early 1990s, they hoped only to prove in their own school that a highly-structured and demanding program could lift the academic performance of disadvantaged students. Little more than 10 years later, however, the name KIPP and the approach they had honed had become an education "brand name," used by more than 40 schools overseen by the KIPP Foundation they had helped to establish and operate. This case tells the story of how KIPP grew from a single school to an education franchise, all the while taking steps to ensure that its special approach continued to be employed in schools bearing the KIPP name. More specifically, the case focuses on the relationship between KIPP founders Levin and Feinberg and two key philanthropists, Donald and Doris Fisher, who used the fortune earned in their GAP apparel chain to help the KIPP idea "go to scale." The case focuses on the decisions of Fisher, Feinberg, Levin, and the legal staff of the San Francisco based KIPP Foundation, financed by the Fishers, to ensure that KIPP standards would be maintained at KIPP schools. HKS Case Number 1847.0
Eat2Eat.com was an Internet-based restaurant reservation service covering a dozen cities in the Asia Pacific region. The principal business of Singapore-based Eat2Eat Pte Ltd., it was launched in 2000 by an entrepreneur and former investment banker with US$1 million of his own capital. He quickly established the capabilities and business model, but after five years the registered user base remained relatively small at about 12,000. He thought the next step for the company was to expand that user base and hoped that the company could change the way people made plans to eat out. Resources--specifically, time and money--were limited, so any promotional efforts would have to be innovative and efficient. Focuses on entrepreneurial marketing with sub-themes of financing and small enterprise management as it tells the story of an entrepreneur who had an idea and enough money to launch it, but then struggled to achieve adequate scale.
Describes a firm that markets a laser for a fictional problem. Asks readers to evaluate Scopie's marketing and production strategy (it plans to start in India and then expand to the United States) and its long-term viability.
As part of the privatization in Eastern Germany after the fall of the Berlin Wall, Dow Chemical made a major investment in the Halle-Leipzig region, one of the largest chemical industry sites in Europe. The executive in charge of Dow's operations in the region, Bart Groot, increasingly felt that the long-term success of Dow's investment depended on a more dynamic development of the entire regional economy. On his own initiative, in 1997, Groot launched a private sector-driven effort to enhance the economic development in central Germany, the region located around Halle-Leipzig. Bundling together 50 other firms and four cities, he founded a regional marketing effort to brand or market the area, but then shifted focus to building clusters. Examines the motivations of companies and company executives to get involved in regional competitiveness efforts and provides a platform to discuss the factors that drive the success of cluster-building efforts through cooperation across firms in a disadvantaged area.
The September 2001 terrorist attacks in the United States precipitated US military actions in Afghanistan and Iraq, increasing demand for certain military assets. Domestically, the attacks crippled an already struggling airline industry, hurting domestic aircraft orders at Boeing Company, the only US producer of large-frame commercial aircraft. Boeing's supporters on Capitol Hill proposed procuring converted Boeing 767 airframes to replace the Air Force's aging fleet of aerial refueling tanker aircraft. Yet, the Air Force could not fit a purchase of the tanker aircraft into its budget without sacrificing other key programs. Leasing the aircraft through a special purpose entity was suggested as a solution. Critics questioned the cost, need, and structure of the tanker deal and pushed Secretary Donald Rumsfeld to reject the agreement. HKS Case Number 1845.0
In May 2003, Defense Secretary Donald Rumsfeld approved an agreement allowing the Air Force to lease 100 converted Boeing 767 aircraft as aerial refueling tankers. The deal's critics, most prominently Senator John McCain, argued that no the aircraft were not needed, that the lease was a thinly disguised purchase designed to circumvent the budget process, and that the agreement was a government handout to the Boeing Company. As the deal neared Congressional approval, evidence surfaced of illegal conduct involving an Air Force acquisition executive and Boeing, casting uncertainty over the agreement's prospects. This case discusses the financial and accounting issues of leasing rather than purchasing the aircraft, the translation of commercial business practices to government, and the process and purpose of government budgeting. This case is best used in concert with "The Boeing Tanker Lease Deal (A)." HKS Case Number 1846.0
This case looks at the adoption by the city of Coventry, UK, of a 1998 law meant to enhance collaboration among public agencies to reduce crime rates. Coventry created a Crime and Disorder Reduction Partnership and hired staff to coordinate activities among the police, local government, public housing, nonprofits, and the business community (plus later, fire and the national health service). The law gave communities little guidance on what anti-crime activities to pursue, or how to coordinate them, yet it proposed to hold partnerships responsible for crime rates. This case traces Coventry's efforts to find mechanisms for implementation, as well as the spillover effects of the law onto other areas of potential cooperation among government bodies. Students will gain an understanding of the challenges at the local level of implementing well-intentioned, but poorly specified, national legal mandates. They will see how an individual leader can make a difference in setting common goals and holding agencies accountability. They will also learn about some innovative collaborative approaches to crime prevention. This case can be used in courses about public management, about leadership, or about policing. HKS Case Number 1831.0
Mark Jacoby, VP of the Americas sales organization at Clearion, a fictional software firm, has missed his quota for the first time in his career at the company. He needs to reevaluate his strategies for setting quotas, allocating headcount, and assigning territories. Describes the changes he makes and asks students to consider making improvements on them.