In cross-border mergers and acquisitions (M&A), post-merger integration is a challenge. The main questions posed are how should the expected operating and financial targets and a smooth transition be achieved and synergies be generated. These factors directly affect the ultimate realization of the value of overseas M&A transactions. This case, as the third one in the series of cases on BlueStar's acquisition of Adisseo, highlights new strategic initiatives adopted by the Bluestar Group in recent years to boost Adisseo's growth. Furthermore, this case focuses on the promotion of further integration between the Bluestar Group and Adisseo at various levels since the completion of the acquisition of and integration with Adisseo in 2012. The case focuses on the following questions: How did China National Chemical Corporation Ltd. (ChemChina) and the Bluestar Group promote the successful listing of Adisseo, the acquired companyin China's A-share market? How did the A-share listing transform Adisseo's corporate governance? Backed by the Bluestar Group and ChemChina, which initiatives did Adisseo take in terms of related diversification, capacity expansion, and global layout? How did ChemChina and the Bluestar Group further promote the merger and integration, as well as the sustainable development of Adisseo? Which innovative practices were adopted by the parties and how did they benefit? These explorations and practices provide useful experience for Chinese companies' M&A of overseas companies and integration after M&A.
Psychedelic drugs have a history clouded by stigma, but a new wave of clinical research could change how they're perceived and used. Today, a psychedelic renaissance points to potential uses of such drugs in the fields of psychiatry, mental health, and well-being. Some companies have seized upon psychedelics' potential to treat psychological conditions and spur creativity and are making business investments that they hope will pay off in breakthroughs that improve people's lives.
Set in 2021, the case highlights how S4Capital, a digital-first advertising and marketing services company, develops a disruptive and innovative business model to meet the industry's growing demand for agility, digital prowess, flexibility, and efficiency, better than the traditional, analogue, holding company model of existing advertising networks. The company's practice of a 'zero earn-out' approach in its mergers and acquisitions, along with an upfront cash payment, share in its equity to the entrepreneur-founders, and incentives to retain the senior management of the acquired firms, also made it a favourite potential partner for like-minded technologically savvy companies in the domain. By September 2021, the S4Capital group comprised more than 26 companies, had a market capitalisation of around US$6.5 billion, and its revenues had grown by 49%. However, it faced many challenges as well. While S4Capital's adoption of unitary branding provided a platform for seamless integration of talent and capabilities across its offices globally, it required constituent agencies to give up their individual, and often highly iconic identities, and build a collaborative mindset for the collective good. In 2021, the group's merger with Zemoga, a digital transformation company, enabled S4Capital to plug a crucial gap in its menu and offer tech services besides content and media solutions. However, the inclusion and integration of a new practice area as the third pillar would entail having a more complex and unwieldy structure. In immediate terms, S4Capital faced an uphill task in acquiring and retaining talent in some of its markets. In Asia Pacific, where it was focusing on growth, the availability of suitably qualified tech-savvy manpower was inadequate. While in the US, its largest market, the pandemic had unleashed a wave of 'Great Resignation' in the corporate world, resulting in high staff turnover as people increasingly opted out of their current jobs.
Bengaluru Airport began an expansion project worth US$2 billion in 2018, but by mid-2020 COVID-19 had severely impacted the aviation industry and reduced passenger volume at the airport by half. Although the airport’s leadership team had detected the crisis early and taken swift action, with no cure for the virus in sight business continuity and staff safety were in jeopardy. The next board meeting was in August 2020, less than seven weeks away, and the pandemic threatened to derail the expansion plans. Among other pressing questions the leadership team had to address—including whether to continue with the expansion plan, reduce its scope, or delay it—was whether they had done enough throughout the crisis to inspire confidence.
Costco Wholesale Corporation (Costco), the world’s second-largest retailer, officially entered the Chinese market in Shanghai in August 2019. The opening day was so jam-packed with customers that the massive influx forced the company to close early, after only five hours of operations. However, after only one week, customers were lining up outside the store, asking Costco for refunds for their membership cards. The warehouse’s traffic declined significantly as well. What caused this situation? Did Costco make the right decision to enter the Chinese market? Does Costco’s membership system fit the Chinese market? What kinds of challenges will Costco face in the future?
The Center for Sustainable Agriculture was founded in 2004 as a solution to various problems in India's agricultural industry. The founder developed a sustainable agriculture model to help farmers lower crop failure risk and reduce production costs, to which pesticide and fertilizer use contributed over 30 per cent. The Center for Sustainable Agriculture built a sustainable agriculture model by collaborating with farmers, producer associations, governments, and markets. The introduction of organic products allowed the company to integrate sustainability into its core business plan. In 2021, after achieving success in Telangana, India, the founder was planning to expand his organic farming model across the country, but he wondered what challenges he would face in other states and how he could overcome these.
This case describes The Boeing Company's production process for assembling and supplying kit carts to 787 Dreamliner final assembly lines and explores appropriate strategies for solving challenging issues within the process. The case employs a systems analysis approach to break the process into sub-systems and analyze inputs and outputs at every level. The 787 program pioneered numerous innovative manufacturing processes Boeing planned to implement on other commercial airliners. Chief among them was the use of kit carts to deliver parts and tools to mechanics. However, after kitting was implemented in 2016, the 787 program experienced challenges delivering kits to the right place, at the right time, and with the right parts. Kitting was a critical part of the streamlined 787 assembly process. Just one incorrect or incomplete kit on the production floor led to delays, and challenges with assembly schedules, on-time delivery, and financial consequences. Students will use a holistic approach to analyze complex information systems, as well as identify internal process improvements to ensure on-time parts delivery.
Three strategies can help employees anywhere feel connected. Plus, one way to beat inflation, what umpires' calls reveal about our "attention budget," and more.
A SAFE ("Simple Agreement for Future Equity") is a security increasingly used in seed financings. Not equity or debt, SAFEs allow founders to "get capital now and sell equity later." This Technical Note covers: 1. What is a SAFE and why use one?, 2. The key concepts involved when calculating a SAFE's future ownership in a start-up, 3. Calculating a "fully-diluted" capitalization table with multiple SAFEs, and 4. Some not-so-safe wrinkles to the security.
Companies seeking more sustainable product strategies should explore using biological (nonfossil) resources, waste streams, and manufacturing byproducts. New materials technologies and processes are replacing fossil-based ingredients with bio-based alternatives from the agriculture, forestry, and marine industries.
Gold, tungsten, tantalum, and tin are essential to a wide array of today's products. Industries ranging from electronics to health care to defense rely on these minerals. A sizable portion of these minerals are sourced from Democratic Republic of the Congo (DRC) where funds raised from mining these minerals have fueled a decades-long civil war. Thus these minerals from the DRC are referred to as "conflict minerals." Global supply chains have been designed to use DRC sources based on economics and logistics; although, there are alternative sources. Some U.S. policymakers sought limit the conflict in the DRC by reducing the flow of conflict minerals. Initial Congressional action was unsuccessful; however the policy was incorporated into section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in 2010. The legislation required the Securities and Exchange Commission (SEC) to establish a reporting requirement for publicly traded corporations using conflict minerals in their supply chains. These corporations could also certify their supply chains as DRC conflict-free through an independent private sector audit. The primary focus of the case is on how supply chains can be modified by public policies to achieve desired social outcomes. The case can also be used to teach the policymaking process.
Gold, tungsten, tantalum, and tin are essential to a wide array of today's products. Industries ranging from electronics to health care to defense rely on these minerals. A sizable portion of these minerals are sourced from Democratic Republic of the Congo (DRC) where funds raised from mining these minerals have fueled a decades-long civil war. Thus these minerals from the DRC are referred to as "conflict minerals." Global supply chains have been designed to use DRC sources based on economics and logistics; although, there are alternative sources. Some U.S. policymakers sought limit the conflict in the DRC by reducing the flow of conflict minerals. Initial Congressional action was unsuccessful; however the policy was incorporated into section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in 2010. The legislation required the Securities and Exchange Commission (SEC) to establish a reporting requirement for publicly traded corporations using conflict minerals in their supply chains. These corporations could also certify their supply chains as DRC conflict-free through an independent private sector audit. The primary focus of the case is on how supply chains can be modified by public policies to achieve desired social outcomes. The case can also be used to teach the policymaking process.
In 2015, Modelo was tasked with growing sales from 50 million cases to 100 million cases within five years. Imported from Tacuba, Mexico, the brand had a solid and loyal following of Hispanic beer drinkers. To achieve more than double sales growth, however, the brand needed a broader target. The brand aimed to grow by targeting a more general market around the idea that the product was associated with a fighting spirit. In 2016 the brand ran two campaigns, one directed at the general market and one at the Hispanic market. The results were encouraging, but the brand felt it needed to dig deeper and find a more robust insight to achieve further growth.
For decades in the United States, the name Hershey has been synonymous with chocolate. From the iconic foil-wrapped Hershey's Kiss to the chocolate syrup for milk or ice cream, the company's offerings have been enjoyed by generations of consumers. Over its long history Hershey has found dozens of ways to keep innovating with chocolate and other sweet treats--different brands, flavors, sizes, packaging, and products--and taken them to other geographic regions. In the past few years, however, the company has embarked on a more ambitious journey. First, it set a bold new strategy: to make Hershey a powerhouse in snacks as well as confections, by expanding into savory and better-for-you product categories. Then it streamlined global operations, bolstered its core businesses, developed a more courageous culture, and executed a series of diversifying acquisitions. In the process, Hershey became more entrepreneurial, adaptable, and resilient.
Harvard Business Review published its first issue 100 years ago with a mission to help leaders put the best management thinking into practice. To mark our centennial, we asked eight current and former CEOs from some of the world's top companies to describe the ideas that have propelled their own careers and organizations. Stephane Bancel, the CEO of Moderna, on planning from the future back; Anish Shah, CEO of Mahindra, on purpose-driven strategy; Roz Brewer, CEO of Walgreens Boots Alliance, on listening as a leader; Nicolas Hieronimus, CEO of L'Oreal, on global vision with local execution; Joey Wat, CEO of Yum China, on continuous innovation; Mo Ibrahim, former CEO of Celtel, on inclusive capitalism; Ignacio Galan, CEO and chairman of Iberdrola, on transparent sustainability reporting; Indra Nooyi, former CEO of PepsiCo, on performance with purpose. As we at HBR look to the future, we recommit to our mission of helping leaders build a better world for customers, employees, partners, and communities.
Toto Wolff, the team principal for Mercedes-AMG Petronas--arguably the most impressive team in F1 racing history--has led his organization to unparalleled success. Mercedes earned the Constructors' Championship (for best overall team performance) every year from 2014 through 2021, and over that time frame it won nearly 70% of the Grand Prix races it competed in. To understand what made that possible, Harvard Business School's Anita Elberse spent time with the team in 2021, conducting interviews and watching what went on behind the scenes before, during, and after races. She found that Wolff shapes the culture at Mercedes to a remarkable degree. Elberse's takeaway? What you say and do as a leader has a surprisingly powerful effect on the organization you run. In this article, drawing on her observations of Wolff's management style and practices, Elberse presents six lessons that can help any leader cultivate a winning team: (1) Set the highest standards for everyone; (2) put people front and center; (3) analyze mistakes continually--even when winning; (4) foster an open, no-blame culture; (5) trust superstars but maintain authority; and (6) relentlessly battle complacency.