This case provides a brief history of the development of the Chinese securities market and details Anthony Neoh's involvement with it. It concentrates particularly on exploring issues specific to emerging markets.
This case uses vignettes and statistics of the broader issue discussed in each vignette to explore some of the ways in which gender is played out in the struggle for power and control. Disenfranchised groups--those not allowed access to critical resources--have little access to power. In many countries, women represent one of these disenfranchised groups. Women around the world are disproportionately denied access to employment, education, religious freedoms, many traditional routes to business funding, collective action, and social welfare. The vignettes explore ways in which inroads to equality are being made on new, innovative paths. Even mainstream approaches to accessing critical resources are becoming more gender neutral. The vignettes and statistics are meant to be illustrative rather than exhaustive.
This series of diversity caselets is designed to present short, quick vignettes of different workplace situations involving issues of gender, sexual orientation, race, disability, age, religion, culture, and ethnicity.
Examines the economics of the oil and gas industry with a focus on 1998 through 2001. Discusses the rationale behind using a growth in scale as a means to increase profitability and to gain competitive advantage. Also examines the classic strategic implications of vertical integration and questions the necessity of remaining vertically integrated in today's markets. During 1998-2001, the industry structure changed dramatically with the occurrence of a wave of merger activity. Set at the end of 2001, as BP's chief executive, Lord John Browne, ponders the company's future. BP set off the merger activity in 1998 with its combination with Amoco. Other major oil concerns quickly followed suit. Several large and dominant firms, termed "supermajors," separated themselves from the rest of the competitors. Although a large number of independent specialty firms also exist, the supermajor firms no longer believe them to be direct competitors. After the case discussion, students should be able to: 1) understand the basic economics of the oil and gas industry, 2) analyze the rationale behind vertical integration strategies, 3) analyze why the industry restructuring occurred, and 4) understand the economies of scale of the supermajor firms as well as the potential problems their immense size could create.
Microsoft is preparing for the launch of the Tablet PC, which allows users to use a pen (stylus) to run Windows and Windows applications, annotate documents, and create handwritten documents for later reference or even conversion to text. Microsoft's original equipment manufacturing partners are developing the Tablet PC hardware, while Microsoft develops the software (the Windows XP Tablet Edition). The Microsoft Tablet PC team is grappling with two critical issues related to the final marketing plan. The first concerns the positioning of the Tablet PC. One option is to position the device as a radical breakthrough in computing technology that will dramatically change the role of computers in the workplace and home. A much more conservative option is to position the Tablet PC as merely a high-end laptop with several interesting new features. The second concerns the initial target market for the device. Includes color exhibits.
This note outlines a set of behavioral techniques for expressing emotion effectively in interpersonal interactions. The skillful expression of emotion holds a number of benefits in interpersonal interactions. The note begins with the premise that emotions are always present in every interaction, no matter the topic or the participants. Expressing those emotions, instead of merely suppressing them, by using the techniques described in the note leads to greater effectiveness in interpersonal interactions.
Just as they can fail to recognize their weaknesses, leaders sometimes underrate their strengths--and everyone pays the price. Positive feedback can help bring executives' perceptions in line with reality.
Consumers are finding it hard to distinguish among competing products. The fault lies partly with marketers and ad agencies, but ultimately it's the CEO's job to stop brand dilution.
In this conversation, McKinsey's T. Michael Nevens takes the wraps off the "productivity paradox" and explains why competition and innovation, not IT, are the real drivers of productivity.
Business decisions based on poor valuation practices can create significant losses. Here's a straightforward set of calculations that will help your company assess the impact of its valuation decisions on shareholder returns.
The March 2002 decision by President George W. Bush to impose tariffs on some imported steel capped a long-running campaign by the US steel industry and its unions for assistance in dealing with surges of low-priced imported steel, often said to be sold in the US below its cost of manufacture. The Bush decision came as a surprise to many convinced that a free trade-oriented administration would not adopt measures likely to be viewed as protectionist. This case provides definitive historical context for those seeking to understand the Bush decision. It uses the long-running dispute over whether steps should be taken to limit the quantity of steel imported by the US as a window on the wide range of laws, factors, and players who influence the making of American trade policy. The case traces the steel dispute through the late 20th century, with particular focus on the Clinton administration. It provides a primer on trade laws-particularly the roles of the Commerce Department, which determines whether illegal "dumping" (selling below cost of production or home market price) of imported goods has occurred, and the International Trade Commission, the quasi-judicial federal agency which rules on whether imports have injured a domestic industry. HKS Case Number 1651.0
Cochin International Airport opened in 1999 to widespread acclaim as the first and only airport to be constructed and operated by a private company in India. By 2001 the airport was generating enough revenue to cover its operating costs, but not enough to service its debt or to pay dividends to its shareholders. The airport company was already in technical default to its lenders, and its Managing Director had to figure out quickly how to improve profits or to convince shareholders to make further large infusions of equity. This case is intended to support a discussion of the advantages and disadvantages of having private companies build and operate major infrastructure facilities, such as airports. It was developed for use in an executive program on the privatization and regulation of infrastructure and utilities, but it could also be used in Master's level courses on privatization, infrastructure, and industrial policy. HKS Case Number 1650.0
Jared Gordan, the president of the Industrial Products Division for Compunext, is a first-rate manager. In just three years, he's turned around a flagging division and increased sales and profits by 50%--a dramatic shift from five years earlier, when analysts were suggesting that the company sell the division. But that's not all. In addition to being a turnaround expert, Jared has shown a special aptitude for recruiting and developing talent. Many executives have noticed this faculty, and--unfortunately for Jared--those running Compunext's biggest, most glamorous divisions are poaching his best managers. In fact, Industrial Products has just been raided for the tenth time in two years, and Jared is spitting mad. This time, the Telecommunications Division has wooed--and won--Stan Simpson, Industrial Products' VP of sales. Jared, right or wrong, confronts Hank Dodge, president of Telecommunications, for not coming to him before offering Stan the job. Still furious, Jared then meets with Sue Patel, Compunext's VP of human resources, to discuss what can be done to avoid future raids. Does Jared have good reason to be angry? What lies at the root of the problem, and how can Jared solve it? In R0203A and R0203Z, Peter Browning, Frank Morgan, Hubert Saint-Onge, and Charles H. King weigh in on this fictional case study.
David James is a professional crisis manager. For almost 30 years, his job has been to rescue companies on the brink of bankruptcy. By the time he's called in, it's usually too late to save much for the shareholders. In almost every case, however, there is still a lot to salvage: Nearly all the companies James has managed continue to operate in some form. More than 2 billion British pounds have been repaid to banks and unsecured trade creditors. And more than 30,000 jobs have been saved. The key to preserving value, James has found, is to resist the urge to try to generate cash from operating the business. In most cases, these companies have taken on far too much debt ever to sell their way out. Indeed, trying to expand operations beyond what the market would bear was what got them into trouble in the first place. James argues against waiting until the company is dead to break it up. A more effective course is to sell off valuable assets while the company is still a going concern. In vivid and sometimes hair-raising detail, James recounts how he has discovered valuable assets in unexpected places, salvaging everything from airlines to soft-drink makers to Britain's Millennium Dome. He has a routine for accomplishing this, which involves locking up the checkbook on day one and, more often than not, firing the senior management. His is a cautionary tale for top executives who, it is clear, should be concentrating their efforts on never needing to call on him in the first place.
How do game designers approach their work? Perhaps in the same way that managers should. Here, the author, an expert in board-game design and the world's foremost authority on Monopoly, translates six tenets of game design into management principles. Three tenets focus on giving players the right level of structure. First, design simple and unambiguous rules: That also holds true in business; people engage most when responsibilities, objectives, and evaluation criteria are clear. Second, avoid frustrating the casual player. Just as not every game player aspires to be a grand master, not every employee wants to think like an executive. Third, establish a rhythm so that players know intuitively whether they are at the beginning, middle, or end of the game. Managers can also engineer such shifts of momentum and motivation for workers. Three more principles focus on providing entertainment. The most important is to tune into what's happening off the board. For many people, the real joy of a great game--or a great job--comes from the larger social experience surrounding it. Another key is to offer chances to come from behind. Even struggling employees want to believe, "The odds may be stacked against me, but just one great stroke and I'm right back in it." Finally, managers, like game designers, should provide outlets for latent talents. Games themselves can be useful in the workplace. Managers may come to appreciate that games succeed depending on how well designed they are--and that many design challenges have their equivalents in the art of management.
In the last year, war broke out, the economy took a nosedive, and an alarming number of businesses went belly up. Thus, it is with some urgency that we bring you this year's list of the seven best new business ideas to help you find your way through these complex times. History Returns. Many thought that the fall of the Berlin Wall marked the beginning of a new world order, one in which history didn't matter. But September 11, 2001, put an end to that theory. And it raised serious questions about globalization, security, and strategy. Enter the Everyday Leader--at Last. CEOs are used to getting all the glory, but leaders outside the limelight--middle managers and tempered radicals--are beginning to receive the attention they deserve. The Internet Is Not About You. The real value of the Internet may lie less in connecting individuals than in connecting databases, servers, and devices--a web not of people but of machines. Mind Your Behavior. Behavioral scientists are beginning to be able to predict accurately the ways individuals and crowds will respond to stimuli, and the implications for business are profound. Don't Delight Your Customers Away. Companies have wooed and coddled customers for too long. The truth is, people delight in being teased and are repelled by those who try too hard to befriend them. Games Are for Losers. Financial game playing and verbal politicking are seriously damaging businesses. Honesty is more than an admirable virtue; it's the foundation of every lasting enterprise. Three Cheers for Creativity (Sometimes). Creativity and best-practice replication are fundamentally different undertakings. Managers who mix the two achieve creativity that is merely incremental and replication that is sadly inept.
Executives who want to make their organizations better corporate citizens face many obstacles: If they undertake costly initiatives that their rivals don't embrace, they risk eroding their company's competitive position. If they invite government oversight, they may be hampered by costly regulations. And if they adopt wage scales and working conditions that prevail in the wealthiest democracies, they may drive jobs to countries with less stringent standards. Such dilemmas call for clear, hard thinking. To aid in that undertaking, Roger Martin introduces the virtue matrix--a tool to help executives analyze corporate responsibility by viewing it as a product or service. The author uses real-life examples to explore the forms and degrees of corporate virtue. Martin uses the virtue matrix to examine why the public clamor for more responsible corporate conduct never seems to abate. Another issue the author confronts is anxiety over globalization. Finally, Martin applies the virtue matrix to two crucial questions: What are the barriers to increasing the supply of corporate virtue? And what can companies do to remove those barriers?
Cultural differences can influence business negotiations in unexpected ways, as many a hapless deal maker has learned. But the differences extend well beyond surface behaviors, such as proper table manners and the exchange of business cards--and even beyond deeper cultural characteristics, such as attitudes about relationships and deadlines. Indeed, there's another, equally treacherous aspect to cross-border negotiation: the ways that people from different regions come to agreement or the processes involved in negotiations. Decision-making and governance processes can vary widely from culture to culture, not only in terms of legal technicalities but also in terms of the behaviors and core beliefs that drive them. Numerous promising deals have failed because people ignored or underestimated the powerful differences in process across cultures. In this article, James Sebenius offers ways in which negotiators can prepare for such cultural differences. A useful approach, he says, is to map out the decision-making process--including who's involved, what formal and informal roles people play, and how a resolution is actually reached. With that knowledge, you can design a strategy that anticipates obstacles before they arise. Those negotiations that might otherwise have failed because people ignored or underestimated powerful disparities in process will, in the end, yield a meaningful "yes."
Large companies have long sensed the potential value of investing in external start-ups, but more often than not, they fail to get it right. Remember the dash to invest in new ventures in the late 1990s and the hasty retreat when the economy turned? This article presents a framework that will help a company decide whether it should invest in a particular start-up by first understanding what kind of benefit might be realized from the investment. The framework--illustrated with examples from Intel, Lucent, and others--explains why certain types of corporate VC investments proliferate only when financial returns are high, why other types persist in good times and in bad, and why still others make little sense in any phase of the business cycle. The framework describes four types of corporate VC investments, each defined by its primary goal--strategic and financial--and by the degree of operational linkage between the start-up and the investing company. Driving investments are characterized by a strong strategic rationale and tight operational links. Enabling investments are also made primarily for strategic reasons, but the operational links are loose. Emergent investments, which are characterized by tight operational links, have little current--but significant potential--strategic value. Passive investments, offering few potential strategic benefits and only loose operational links, are made primarily for financial reasons. Passive corporate VC investments dry up in a down economy, but enabling and driving investments usually have more staying power. That's because their potential returns are primarily strategic, not financial. In other words, they can foster business growth. Emergent investments may make sense even in a weak market because of their potential strategic value--that is, their ability to help companies identify and spark the growth of future businesses.