The term "social entrepreneurship" refers to the rapidly growing number of organizations that have created models for efficiently catering to basic human needs that existing markets and institutions have failed to satisfy. Social entrepreneurship combines the resourcefulness of traditional entrepreneurship with a mission to change society. One social entrepreneur, Ibrahim Abouleish, recently received the Alternative Nobel Prize for his Sekem initiative; in 2004, e-Bay founder Jeff Skoll donated 4.4 million pounds to set up a social entrepreneurship research center; and many social entrepreneurs have mingled with their business counterparts at the World Economic Forum in Davos. Social entrepreneurship offers insights that may stimulate ideas for more socially acceptable and sustainable business strategies and organizational forms. Because it contributes directly to internationally recognized sustainable development goals, social entrepreneurship may also encourage established corporations to take on greater social responsibility.
A client asks Luc Giraud, CEO of the structured finance solutions provider Nexgen Financial Solutions, to put together a solution that allows the client to add AAA-rated bonds to its portfolio. The client cannot find suitably priced top-rated bonds in the market and wonders whether Nexgen can use lower grade bonds to create AAA-equivalent instruments. The process of securitization packages together securities to create new securities with different risk and return profiles.
In late 2004, a cashed-out entrepreneur in the health sciences decides to pursue private-equity angel investing as a means to fulfill her professional, financial, and personal objectives. Jocelyn Chang investigates three different types of angel organizations: the Band of Angels, Tenex Medical Investors, and the Washington Dinner Club. As part of her research into private-equity investing, she explores recent (postbubble) developments in both angel investing and the venture-capital industry.
Deals with the growth of the icewine industry and follows Vincor International as it creates an international market for its Inniskillin Icewine--a luxury alcoholic beverage consumed as a dessert wine. Gives the history of the alcoholic beverage industry in Canada and details trends in the current global wine industry. Follows Roger Provost (HBS MBA 1980), chief marketing officer for Canadian-based Vincor, as he develops Inniskillin's initial marketing strategy within Canada. Goes on to detail Inniskillin's challenges as it enters other markets, initially through the travel retail distribution channel. Deals with issues in brand management, product development, and international marketing. Explores the opportunities and challenges facing luxury niche products in the global economy.
In early 2002, Levi Strauss was considering rekindling its Wal-Mart relationship with a new value brand. How should the brand be developed to preserve sales with existing customers in other channels? Was it possible to leverage the iconic Levi's name while remaining competitive and not affecting consumers' propensity to purchase other Levi's product lines at higher price points?
Inequality represented a major issue at the dawn of the 21st century. By many measures, inequality had increased over the previous several decades, within both developed and developing countries. Whether global inequality (measured across countries or among the people of the world) increased remained controversial. Even in those cases where experts agreed that inequality had risen, there was little consensus about the causes. Some blamed globalization for the growing gulf between rich and poor, whereas others pointed to technology, government policies, and even social norms. Experts also disagreed over whether rising inequality was even a problem, particularly in those places where the poverty rate was low or falling.
Chen Feng and three others started Hainan Airlines in China during a historic transformation and privatization of the civil aviation industry. From a small loan from the local province in 1992, Chairman Chen built the company into a conglomerate that, by 2003, owned airlines, hotels, airports, travel agencies, an insurance company, and a department store. Despite its many successes, including being the first airline in China to attract foreign capital, the company faces many challenges at both the business and corporate levels. Was the company's increasing breadth a distraction to the airline business or a route to competitive advantage? Going forward, what should be Chen's priorities?
Tracks Merck's efforts to adapt to changes in the pharmaceutical industry. Key challenges include adapting Merck's internally focused, science-led culture to a more open environment, where marketing performance has become increasingly important. Examines Merck's efforts to adapt to the external changes without compromising its internal values and capability architecture.
Gives students an opportunity to understand the challenges inherent in forecasting the diffusions of innovations. Provides data for forecasting the adoption of electronic books. Students are encouraged to use the Bass Model framework, while being cognizant of its limitations.
Before he accepts the new CEO position, Dick Williams wants founder Lew Cirne to step down as chairman. While considering Williams' incredible demand, Cirne reflects on everything he has already given up to get Wily Technology to this point. He agreed to step down as CEO and take what could be a largely symbolic CTO title. He also agreed to give Williams roughly as much equity as he himself owned and far more in salary. As the founder, CEO, and chairman of Wily Technology, Cirne had worked hard to build the skills necessary to lead his start-up. He had developed Wily's early technology single-handedly, had hired 50 employees to help him build his company, and had successfully spearheaded a strategic transformation of his company. He had led Wily to the point where several important customers bought its flagship product and had successfully raised two rounds of financing from top investors. Cirne wonders what he could have done to be pushed to the side like this. What should he do now?
In September 2004, four months after Hungary joined the European Union, the strategy group of Matav, Hungary's largest communications company, is working on its mid-term strategic plan. Since being privatized from the state in 1993, the company has seen several changes in its strategy, structure, and culture. Nearly 15 years later, the company is a fully integrated telecommunications company involved in a broad range of services, including fixed line telephony, mobile communications, Internet services, data transmission, and outsourcing. The company's latest acquisition of a state-run telecommunications company is considered a success, and management believes that international expansion is necessary to realize dynamic growth as its domestic fixed line business is declining. In addition, Hungary's mobile market is highly competitive and saturated with 80% of the country having mobile phones. The management team feels that Matav is at a crossroads with three main options: expansion in Hungary, regional expansion, or organic growth in existing product lines. The team has to consider all of the lines of business in forming a strategy and whether Matav's resources and organization are suitable for a healthy future.
KTM is a successful European off-road motorcycle manufacturer with sales in 72 countries. KTM has been experiencing impressive growth in both its top and bottom lines over the past several years, but it is facing significant growth pressure from its venture capitalist investor. The chief financial officer must determine how the company could achieve its growth objectives. Options include geographic expansion (increase U.S. emphasis or expansion to new European Union countries) or product expansion. Implementation options include a merger, acquisition, or internal growth. Several opportunities for geographic expansion and product diversification exist, and implementation options include make, buy, or ally decisions.
A+J+O uses quantitative stock picking engines based on statistical stock return anomalies. They use neither outside research nor soft dollars. They have a developed a relationship with brokers that fosters good execution quality of trades. Ted Aronson, the founder is wondering whether the firm should expand further the long-short investment strategy.
The case is about the privatization of water in the Argentinean province of Tucumán, and its subsequent re-nationalization, which attracted major media and NGO coverage as epitomizing the drawbacks of public-utility privatization. It looks at the conflict between the Provincial Government of Tucumán and Aguas del Aconquija SA, the concessionaire.
Is it deception or is it simply a clever business tactic? The varieties and scope of deceptive behavior are examined in this series of caselets, which offer a wide range of sample dilemmas in many fields, including medical publishing, the auto industry, investment banking, the oil industry, and even in the fine art of writing a resume.
International Accounting Standard (IAS) 39, Financial Instruments: Recognition and Measurement, has attracted considerable controversy throughout its development. Major European financial institutions and political agencies lobbied heavily against the development of certain provisions within the standard. Jacques Chirac, the president of France, suggested that the accounting treatment prescribed in IAS 39 threatens the stability of the European economic structure. Despite its efforts to accommodate constituents' concerns, the International Accounting Standards board refused to fully concede to lobby pressure and implemented a compromise standard in March 2004. As a result, the European Union's Accounting Regulatory Committee voted to recommend that the European Commission only partially adopt IAS 39, effectively "carving-out" two provisions that were the focal point of debate. Explores the history of IAS 39, describes the IAS 39 prescribed accounting treatment for fair value and cash flow hedges, outlines heavily debated issues surrounding macro hedge accounting, and illustrates the impact of politics in the accounting standard setting process. Also explores the implications of the European Commission's "carve-out" on the viability of the International Accounting Standards board and the board's overriding goal of global harmonization of financial reporting standards.
Examines how firms find pathways to high performance while simultaneously focusing on their top and bottom lines by aggressively developing and managing their relationships with key stakeholders. Top-performing firms are shrinking their core while expanding their periphery. At the same time that they are contracting their organizational centers and outsourcing increasing portions of their activities, these firms are extending their organizational borders by trying to provide customers with greater sets of products and services. As companies refocus, they have become increasingly dependent on reinforcing mutually beneficial ties to four sets of critical stakeholders: customers, suppliers, alliance partners, and intraorganizational business units. In each of these relationships, successful firms work their way up a ladder in which they intensify their collaborative efforts with that particular constituent. This phenomenon, which is evident across an array of industries, is one of the hallmarks of a new operating model: the relationship-centered organization.