This case series was developed around QuMei's takeover bid for Ekornes ASA, a company headquartered in Norway. QuMei, the Chinese furnishings manufacturer established in 1993 and listed on Shanghai Stock Exchange in 2015, was the promoter of the takeover bid. In the same year, it introduced its "New QuMei" strategy, pivoting from a pure furnishings supplier to a content and service supplier in the furnishings industry. The target company, Ekornes, was a prime Norwegian furnishings manufacturer with four affiliate brands, including "Stressless", known as the "most comfortable chair in the world". It also had vast market bases in Europe and America. Case A mainly discusses the reasons behind QuMei's takeover of Ekornes. First, it explores why QuMei opted for acquisition rather than organic growth. Second, having decided to take the acquisition route, how did it choose Ekornes as its target. Finally, the case examines the feasibility of the takeover and potential ensuing risks. Based on case discussions, students are given the chance to analyze the logic behind takeovers, how target companies are selected, how takeovers take different forms depending on purpose, and how to analyze and avoid potential risks that may be involved. Case (B) focuses on the transaction arrangements in QuMei's takeover of Ekornes: was Ekornes suitably valued? How would QuMei reach a consensus with the target company's shareholders regarding the reasonable consideration for takeover? Then, after valuation, how should the transaction be funded and structured? By the end of 2017, QuMei's assets were at ¥2.1 billion, while its overseas sales were a mere ¥4.87 million. In contrast, Ekornes's assets were valued at over ¥4 billion. This case therefore can be reference for practical problem-solving in acquisition of snake swallowing elephant.
The idea that "statistics are enough" is prevalent within stable organizations; however, this framework is not enough to understand organizational change. Data-especially less visible data-is necessary. This book explores the intersecting social systems of organizations and looks at organizational challenges in a new light. Each chapter is written by a different author and provides thoughts useful in context; rather than offering one-size-fits-all solutions, the authors construct pathways for exploration and experimentation, starting with the "why" behind organizational challenges before moving on toward "how:" practical ways to change. Business leaders and followers will benefit from this text, learning to uncover and frame the dynamics that influence change and crisis on all levels-individual, group, and organizational. Businesspeople can and should look into the less visible parts of organizational life; this can change the world of work. Chapter 1 begins with a discussion on crisis and change in organzational contexts. We are living in a time of continual global upheaval, which brings about organizational challenges. These challenges can be intimidating and cause psychological distress, making it difficult to logically address them. They are also increasingly interrelated, creating unpredictable consequences. A systems-psychodynamic approach offers a more holistic view of crisis and change in organizations; it looks at the overlaps between the intrapersonal (a person's inner life), the interpersonal (pairs and groups), and the system (inside and outside the organization). Five premises underly the systems-psychodynamic approach, all of which are discussed. This chapter ends by describing the organization of the rest of the book with specific chapters being dedicated to the three different levels of the systems-psychodynamic approach.
The idea that "statistics are enough" is prevalent within stable organizations; however, this framework is not enough to understand organizational change. Data-especially less visible data-is necessary. This book explores the intersecting social systems of organizations and looks at organizational challenges in a new light. Each chapter is written by a different author and provides thoughts useful in context; rather than offering one-size-fits-all solutions, the authors construct pathways for exploration and experimentation, starting with the "why" behind organizational challenges before moving on toward "how:" practical ways to change. Business leaders and followers will benefit from this text, learning to uncover and frame the dynamics that influence change and crisis on all levels-individual, group, and organizational. Businesspeople can and should look into the less visible parts of organizational life; this can change the world of work. Chapter 2 discusses organizational crisis and related systems-psychodynamic concepts, focusing on crises that are ultimately self-inflicted (e.g., underperformance, mismanagement, poor decision-making). Five case examples of recovery are given; a defining characteristic of these cases is their use of a bottom-up approach instead of the more typical top-down approach. A framework based on these cases is described to help organizations recover after a cumulative crisis. Several systems-psychodynamic concepts are woven into this framework-including emotional capital, the relational system theory, and fair process-which call for a more holistic leadership style when facing recovery challenges. The framework is tested on ABN AMRO's recovery, which confirms the theoretical foundation and suggests that it is an effective model for developing a comprehensive recovery strategy.
The idea that "statistics are enough" is prevalent within stable organizations; however, this framework is not enough to understand organizational change. Data-especially less visible data-is necessary. This book explores the intersecting social systems of organizations and looks at organizational challenges in a new light. Each chapter is written by a different author and provides thoughts useful in context; rather than offering one-size-fits-all solutions, the authors construct pathways for exploration and experimentation, starting with the "why" behind organizational challenges before moving on toward "how:" practical ways to change. Business leaders and followers will benefit from this text, learning to uncover and frame the dynamics that influence change and crisis on all levels-individual, group, and organizational. Businesspeople can and should look into the less visible parts of organizational life; this can change the world of work. Chapter 3 explores the emotional life of organizations. Several interviews were conducted with questions focusing on nostalgia and postalgia, both of which can contribute to understanding the existing and desired state of a business. Both concepts are discussed, including how they can affect organizations. Idealization is foundational to nostalgia and postalgia, and a particular type of idealization, "chosen glory," is typically practiced in response to organizational crises. Chosen glory is a collective emotional and mental representation of an event seen as a triumph; the story is repeated to build self-esteem within the group. The organization may not be interested in assessing the entirety of the situation, such as how they contributed to the challenge in the first place. Idealization of purpose and idealization of leadership are also discussed as well as the negative consequences of idealization. In times of crisis, idealization comes through in organizational stories and is highly significant.
The idea that "statistics are enough" is prevalent within stable organizations; however, this framework is not enough to understand organizational change. Data-especially less visible data-is necessary. This book explores the intersecting social systems of organizations and looks at organizational challenges in a new light. Each chapter is written by a different author and provides thoughts useful in context; rather than offering one-size-fits-all solutions, the authors construct pathways for exploration and experimentation, starting with the "why" behind organizational challenges before moving on toward "how:" practical ways to change. Business leaders and followers will benefit from this text, learning to uncover and frame the dynamics that influence change and crisis on all levels-individual, group, and organizational. Businesspeople can and should look into the less visible parts of organizational life; this can change the world of work. Chapter 4 discusses narcissistic leadership and how to survive it. Narcissistic characteristics are sometimes seen as beneficial for leadership positions, but narcissists create toxic work environments. An explanation of narcissism and examples are given. Narcissistic leadership involves three components: arrogance and a sense of entitlement, a strong need for power and recognition, and difficulty managing emotions and accepting faults. There are both pros and cons to having narcissistic leadership, but experiences working under narcissistic leaders are predominantly negative. Employees may use various coping strategies, including influence, relationship-building, self-protection, avoidance, and ground-standing strategies. Having a sense of agency is the most effective tool when dealing with toxic work environments. Its main components are sense of self, sense of responsibility, and sense of choice. Self-reflection and awareness are necessary. The challenge of narcissistic leaders can be survived by striving to learn from it.
The idea that "statistics are enough" is prevalent within stable organizations; however, this framework is not enough to understand organizational change. Data-especially less visible data-is necessary. This book explores the intersecting social systems of organizations and looks at organizational challenges in a new light. Each chapter is written by a different author and provides thoughts useful in context; rather than offering one-size-fits-all solutions, the authors construct pathways for exploration and experimentation, starting with the "why" behind organizational challenges before moving on toward "how:" practical ways to change. Business leaders and followers will benefit from this text, learning to uncover and frame the dynamics that influence change and crisis on all levels-individual, group, and organizational. Businesspeople can and should look into the less visible parts of organizational life; this can change the world of work. Chapter 5 looks at what happens on a leader's conscious level and subconscious level when vilification occurs. A case study based on several interviews is provided. Five meta-experiences are offered to categorize the effects of and reactions to vilification: emotional state, impact on relationships, social defenses, conflict management, and recovery and healing. These are all conscious experiences. Subconsciously, leaders perceive they are being vilified by others in these situations, which equates to being stigmatized. This in turn can trigger threat appraisal, identity threat, and cognitive dissonance. Ultimately, leaders can make sense of things, which leads to healing. Rewriting self-narratives and telling their story can be integral for recovery. Awareness of these experiences and mental processes can be applied in the professional and personal domains. Insights particularly for executive coaches are also offered.
The idea that "statistics are enough" is prevalent within stable organizations; however, this framework is not enough to understand organizational change. Data-especially less visible data-is necessary. This book explores the intersecting social systems of organizations and looks at organizational challenges in a new light. Each chapter is written by a different author and provides thoughts useful in context; rather than offering one-size-fits-all solutions, the authors construct pathways for exploration and experimentation, starting with the "why" behind organizational challenges before moving on toward "how:" practical ways to change. Business leaders and followers will benefit from this text, learning to uncover and frame the dynamics that influence change and crisis on all levels-individual, group, and organizational. Businesspeople can and should look into the less visible parts of organizational life; this can change the world of work. Chapter 6 discusses stress in executives and how it can impact leadership performance. Chronic stress and busyness lead to burnout, but reflection and self-awareness can be effective coping strategies. A therapeutic system for accessing and addressing emotions is presented: the Deep Emotion Expression and Processing (DEEP) System. The theory underlying the DEEP System is discussed, including Malan's triangle of conflict. Interoception and expressive writing are two approaches to emotional processing and are essential for the DEEP System. Interoception is the process of recognizing emotional signals the body is sending. Expressive writing lets people reflect on negative experiences without being overwhelmed by them; meaningfulness and integrative processing are two vital components of expressive writing. To test the effectiveness of the DEEP System, the Positive and Negative Affects Schedule (PANAS) is incorporated into it. Examples are provided showing the influence of the DEEP System.
The idea that "statistics are enough" is prevalent within stable organizations; however, this framework is not enough to understand organizational change. Data-especially less visible data-is necessary. This book explores the intersecting social systems of organizations and looks at organizational challenges in a new light. Each chapter is written by a different author and provides thoughts useful in context; rather than offering one-size-fits-all solutions, the authors construct pathways for exploration and experimentation, starting with the "why" behind organizational challenges before moving on toward "how:" practical ways to change. Business leaders and followers will benefit from this text, learning to uncover and frame the dynamics that influence change and crisis on all levels-individual, group, and organizational. Businesspeople can and should look into the less visible parts of organizational life; this can change the world of work. Chapter 7 offers final thoughts from each of the authors. There is always more to crisis and change than meets the eye. A systems-psychodynamic approach can help people work with realities they see and sense. Instead of solely focusing on the solution, the lived experience of a crisis must also be addressed. Thinking systemically is a vital skill for leaders and change agents because of the constant ambiguity they face. Several key takeaway messages from the text are offered, including the need to recognize that organizations are shared spaces of feeling and the importance of self-reflection on all individual and organizational levels.
The case analysis facilitates deeper understanding, critical thinking and application of concepts pertaining to organizational environment and strategic planning using the example of Starbucks, an American multinational chain that positions itself as a premier roaster, marketer and retailer of specialty coffee. The case illustrates how the macro and competitive environments impact the Starbucks' strategies and performance, focusing in particular on macro elements such as Economy, Technology, Laws and Regulations, Demographics, Social and Natural Environment/Ecology. The competitive environment analysis explores the five key elements of Industry Rivalry, New Entrants, Customers, Substitutes and Complements and Suppliers. Students are encouraged to investigate the implementation of appropriate effective strategies after gaining a thorough comprehension of the external and internal environmental factors.
This case describes how Qinheyuan Group Co., Ltd. (hereinafter "Qinheyuan") created shared value by solving pain points associated with traditional elderly care. In addition to providing elderly care services, Qinheyuan also sought to address the psychological needs of senior citizens-specifically, to give them a sense of self-worth by making them feel needed or able to help others. In the late 2000s, Qinheyuan pioneered an upscale, membership-based elderly care model that sought to give the elderly sufficient freedom and respect while engaging them in creating and sharing value. This model was implemented in its two retirement communities, namely Kangqiao Apartments (dubbed "Version 1.0", with a 95% occupancy rate) and Yingfeng Apartments ("Version 2.0", with a 90% occupancy rate). The company's founder Xi Zhiyong subsequently decided to develop an improved version of the company's elderly care model (dubbed "Version 3.0"). This coincided with claims by parent company Yihua Healthcare that Qinheyuan had failed to meet its performance targets for 2019. As a result, Yihua Healthcare demanded compensation of ¥81.7 million and required Qinheyuan to ramp up efforts to market its existing apartments. Despite these pressures, Xi insisted that Qinheyuan should continue to work on its new model. Could Xi turn a blind eye to the demands of Qinheyuan's parent company, and if not, could he find a compromise?
This technical note introduces dynamic programming (DP), a powerful tool for finding optimal solutions to complex problems that involve a concatenation of multiple decisions. This note assumes some familiarity with decision trees. Compared to decision trees, DP simplifies the problem representation by pooling together similar decision situations, allowing us to apply backward induction in batches by means of the Bellman equation. The note stresses the importance of data to estimate transition probabilities, as well as to proxy the value-to-go in some complex situations. The note includes four exercises, which are supported by spreadsheets for both students and instructors. These cover job search decisions, pricing of American options, and hotel pricing (revenue management).
Desi Hangover, an Indian company empowering artisans to manufacture handcrafted leather footwear, was a finalist at Lakmé Fashion Week in 2020 in the category of Circular Changemakers. The chief executive officer had a dream of establishing his company as a leading circular economy fashion brand, and now he had a chance to pitch his vision of the future. But his core team had reservations and worried about the cost and risk of transitioning fully to a circular model. Considering the journey Desi Hangover had taken since its inception, the changing needs of the market, and the unpredictability of the business economy, Desi Hangover had to come up with the right pitch for the event—one that would continue on the path to conscious fashion while ensuring growth in revenues to sustain operations.
Masdar City broke ground in 2008 and was conceived by the Abu Dhabi government to be an international beacon of innovation in sustainable energy and real estate. It was also to be a profitable investment for the government. At first glance, the two goals pulled in opposite directions as conventional wisdom at the time claimed that building sustainably inevitably came at a premium. Over time, with each new project, Masdar learned more on how to balance building sustainably with being profitable. Masdar had financed all of its developments through equity but in 2020 was considering using debt for the first time through a "Green REIT" that was to be made up of a selection of Masdar's own properties. The question was how would this affect Masdar's ability to innovate, complete building the city, and continue to balance sustainability and cost. The case chronicles Masdar's learning journey with each of its major developments from inception to 2020 and provides students an opportunity to understand the thought processes, inner workings, and design approaches that Masdar followed in the pursuit of balancing cost and sustainability. It also allows students to consider different approaches to financing a real estate development and the implications those approaches can have.
The case describes BMW's electrification and decarbonization strategy, and how the company measured carbon emissions throughout the life cycle of its vehicles and used tools like carbon abatement cost curves to evaluate decarbonization opportunities. In mid-2022, automakers, consumers, regulators, and investors were focusing on the transition from internal combustion engine (ICE) vehicles to electric vehicles (EV). While this would reduce tail-pipe emissions, the production of EVs-and especially their batteries-increased emissions in the supply chain. Under CEO Oliver Zipse, BMW was focusing on life cycle emissions and was pursuing a flexible powertrain strategy by offering vehicles with several powertrain options: gasoline and diesel-fueled ICE, plug-in hybrid electric vehicles (PHEV), and battery electric vehicles (BEV). Meanwhile, competing automakers were announcing deadlines by which they would stop selling ICE vehicles, buoyed by investment analysts and favorable press. BMW's approach was receiving a frostier reception in the stock market. Facing these pressures, how should BMW communicate and convince its stakeholders that its strategy was sustainable for both the environment and BMW's financial performance?
The case describes Shopify's journey from a small online store to a global technology company with an ecosystem of partners that comprised of tens of thousands of developers and partners. From the inception of the company, Shopify's competitive advantage had come from being merchant obsessed. Having an easy to set-up and easy to use technological platform, as well as a commercial model that leveraged an ecosystem of partners, had accelerated Shopify's growth in building a merchant centric digital business. The case describes in detail the processes and drivers that had led to the success of Shopify. However, by 2022, competitive pressure from the other forms of commerce including live streaming commerce, social commerce and commerce from super apps had started to mount. Amazon, one of the world's largest online marketplaces, had started to encroach on Shopify's market by imitating its business model. The fusion of online and offline commerce had also driven Shopify to rethink its business model and the company started to shift its focus from eCommerce to general commerce. Shopify also wanted to penetrate the Southeast Asia (SEA) market further. High growth rates had been predicted for the region, but it was a heterogeneous market with lots of challenges including less than developed logistics infrastructure.
The authors present a framework for assessing a company's social and environmental performance based on four levers businesses can use to create impact: (1) the products and services the company develops or sells, (2) the customer segments it targets, (3) changes in operations, and (4) how profits are used. They explain the levers in detail, highlight links to the legacy concepts of ESG and impact investing, and identify tools for assessing a company's performance in each area.
The case is about the future of Dyson's foray into wearable technology with the planned introduction of the Dyson Zone that enable speople to breathe purified air while tuning out unwanted noise. Since no other device like it yet exists on the wearables market, its inventor Jake Dyson is stepping into unknown waters - another risk for a company that has taken several, including James Dyson's failed attempt to diversify into the automobile market with the introduction of an electric vehicle in 2017. Will the Dyson Zone be different? The case does not pretend to answer this question but rather looks at the business strategy of a firm that has a reputation for developing innovative products.
This case provides an account of Laura Rodriguez's career trajectory and the obstacles she has faced and still faces as a female-identifying professional. Laura is portrayed as a hardworking, achievement-oriented individual who has excelled academically and professionally. But as she reaches the middle of her career, she is challenged in attaining her career objectives and does not receive a critical advancement opportunity given to her less-qualified male colleague. Part A of the case describes Laura's pre- and post-MBA career and the beginning of building her family. In Part A, she also learns she was not selected to participate in her firms Leadership Pathway advancement program. Part B of the case describes Laura's leadership self-assessment and the development approaches she is contemplating.
This case provides an account of Laura Rodriguez's career trajectory and the obstacles she has faced and still faces as a female-identifying professional. Laura is portrayed as a hardworking, achievement-oriented individual who has excelled academically and professionally. But as she reaches the middle of her career, she is challenged in attaining her career objectives and does not receive a critical advancement opportunity given to her less-qualified male colleague. Part A of the case describes Laura's pre- and post-MBA career and the beginning of building her family. In Part A, she also learns she was not selected to participate in her firms Leadership Pathway advancement program. Part B of the case describes Laura's leadership self-assessment and the development approaches she is contemplating.