Standards and regulations exist to ensure supply chains are not exploitative of the people, environments, and materials with which they interact. This technical note concentrates on two aspects of the process for electronics supply chains: the responsible sourcing of raw materials and end-of-use recycling. It is recommended for use with a companion technical note, "Electronics Supply Chain Overview" (UVA-OM-1716); as well as with the following cases: "Fairphone (A): Can a Start-Up Change an Industry?" (UVA-OM-1712); "Fairphone (B): Is It Really Worth It?" (UVA-OM-1713); and "iFixit: If You Bought It, You Don't Really Own It" (UVA-OM-1772).
Electronics are sophisticated products with an equally complicated supply chain. Within the consumer electronics industry, revenue is forecast at 1.82% annual growth, with user penetration climbing from an estimated 29.7% in 2022 to 36.8% by 2025. Because electronics are so popular (and potentially expensive), there is also a growing market for used electronics and their recycled parts. The growth of this sector is critical for sustained development, as the raw materials necessary for future production are in short supply and electronic waste (e-waste) has a major impact on the environment. In 2019, the world generated a striking 53.6 metric tons of e-waste, and this figure is projected to grow to 74.7 metric tons by 2030. This technical note explores the electronics value chain, forward supply chain, the final assembly stage, reverse supply chain, and the financial benefits of e-waste parts reuse and recycling. It is recommended for use with a companion technical note, ""Regulations and Standards: Electronics Supply Chain"" (UVA-OM-1714); as well as with the following cases: ""Fairphone (A): Can a Start-Up Change an Industry?"" (UVA-OM-1712); ""Fairphone (B): Is It Really Worth It?"" (UVA-OM-1713); and ""iFixit: If You Bought It, You Don't Really Own It"" (UVA-OM-1772).
Fairphone, a "social enterprise" that created the world's first ethically sourced smartphone, had revolutionized consumers' and investors' expectations around environmental, social, and governance (ESG) responsibility in the electronics industry. The company was justifiably proud of all its accomplishments, but in 2017, Fairphone had been plagued with supply issues ranging from mining to component production. Due to the global nature of the supply chain and mega-companies like Apple dominating the market, it was hard for smaller companies like Fairphone with low production volumes to keep a steady and cost-effective flow of materials-especially when Fairphone was committed to making a product that was not only "good" by consumer standards but also good for the people and environments involved in its production. How could a company trying to do its best to behave ethically overcome its challenges and allay its investors' concerns? This case and its follow-up, "Fairphone (B): Is It Really Worth It?" (UVA-OM-1713), are recommended for use with two companion technical notes: "Regulations and Standards: Electronics Supply Chain" (UVA-OM-1714) and "Electronics Supply Chain Overview" (UVA-OM-1716).
This case is a follow-up to "Fairphone (A): Can a Start-Up Change an Industry?" (UVA-OM-1712). Fairphone's goals to keep producing an ethically sourced smartphone were noble, but "doing well by doing good" could only be an idealistic slogan unless Fairphone could figure out a way to be profitable. The company needed money to invest in its supply chain, to buy component inventory, and to pay for its own operations. When Fairphone began brainstorming about making the Fairphone 2, the next generation of its smartphone, one of the company's largest investors had encouraged creative thinking about how to make a device that was both good for the environment and good for Fairphone's bottom line. One solution seemed to be modularity-making the phone easy to repair could not only reduce its environmental footprint by allowing reuse and recycling, but create new revenue streams for Fairphone. In theory, reselling a used phone or extracting precious metals from e-waste would be profitable-but would those profits be enough to significantly impact Fairphone's bottom line? Could Fairphone actually "do well" because of its commitment to doing good?
Founded in 2017, the canned-water company Liquid Death had raised about US$125 million in venture capital funding and created a strong following within the punk and heavy metal communities. However, the brand was seeking to expand and needed to choose the best growth strategy, which involved deciding which customers to target, whether to develop new products or line extensions, how to continue to use promotions and communications to defend the brand's "cool" and eco-friendly image while appealing to a broader range of consumers, and how to stave off competitive threats.
Nord Stream 2 was an offshore pipeline project of the Russian energy company Gazprom to transport natural gas to Europe. The US government was skeptical about this project as it believed that Russia would use the pipeline to increase its influence in Europe. The Russian annexation of Crimea and reported Russian support to the secessionist groups in Eastern Ukraine further complicated the situation. The events in Ukraine resulted in the United States and European Union imposing economic sanctions on the Russian government, institutions, and specific individuals. The pipeline construction was completed amid continued hostilities, repeatedly imposed sanctions, and political transitions in the US and Germany. Nord Stream 2 AG, the Swiss-based subsidiary of Gazprom which was created to operate the pipeline, applied to the German national energy regulator for pipeline certification but was refused until Gazprom created a German subsidiary to operate the pipeline. Such a condition would require Gazprom to dilute its stake and control over its critical asset; however, not meeting the regulator's conditions would ensure that the pipeline remained inoperative and that the company's US$11 billion investment to complete the project would be held up until Gazprom could mount a legal, diplomatic, and geopolitical campaign to overturn the regulator's decision.
The Procter & Gamble Company (P&G) was facing a proxy attack from Trian Fund Management, L.P. (Trian) after Trian declared a US$3.5 billion position in P&G, equivalent to a 1.5 per cent shareholding, in February 2017. The fund manager called for a reorganization of the company to improve its performance and for a seat on P&G's board of directors for Trian's co-founder Nelson Peltz. Over the next few months, both parties discussed Trian's proposals, but the negotiations broke down in July 2017, and the conflict became public. Trian announced it would put its demands to a vote during the annual shareholder meeting in October. A month before the meeting, P&G CEO David Taylor had to make a recommendation to the board: should the company accept or rebuff Trian's attempt at gaining influence?
The decision to go public is a very complex process for a growing business. From completing the requirements of the US Securities and Exchange Commission (SEC) filings to answering complicated questions from potential investors, it is a major decision and an inflection point in the journey of a private company. Yet, the benefits often outweigh these downsides and cofounders are usually excited by the prospect of an initial public offering (IPO). This technical note aims to unpack the process of IPO, including the internal and external factors companies need to judge when considering taking the step.
This case examines Rent the Runway (RTR), a company that provided its customers the luxury of getting to wear the hottest designer fashions without having to pay the often exorbitant price to own the clothing. RTR built the world's largest shared designer closet, containing over 18,000 styles by more than 750 designer brands. Customers could rent individual pieces, buy products through resale offerings, or pay for a subscription guaranteeing new deliveries monthly. RTR went public with an initial public offering (IPO) on October 26, 2021. While some investors were initially excited about the first company with an all-female board and all-female leadership team to go public, RTR's unicorn status was not enough to guarantee success. RTR had decided to go public to fuel its expansion plan as well as pay off debt, but things didn't go smoothly after the IPO, and the company suffered from bad press related to its unexplained financial reporting. The case, appropriate for finance, leadership communication, and general management courses, encourages students to consider communication strategies employed by firms going public and digs into several specific issues such as depreciation of assets. Though the case focuses on the struggles of the company focused on a public offering to generate capital, it also provides a variety of other discussion topics such as the purpose of an IPO, the right time for a company to go public, and how to tackle the scrutiny of investors in a newly public company. It pairs well with a technical note, ""All Things IPO"" (UVA-BC-0282), which unpacks the process of an IPO, including the internal and external factors companies need to weigh before taking the step.
This case describes the March 2018 Ransomware attack on the information technology (IT) systems of the city of Atlanta and the response by Mayor Keisha Lance Bottoms and her administration. The case includes a brief background on Bottoms and her young administration at the time of the attack. The case also includes background information about the trend of ransomware attacks against organizations, including government entities such as municipalities. Several cybersecurity experts describe the tactics of ransomware attackers and potential strategies to respond when ransomware attacks occur. The (B) case concludes with a description of Bottoms and her administration's approach to managing the crisis, including her decision to not pay the ransom and instead use Atlanta's cyber-insurance policy award to invest in remediation and upgrading of the city's IT systems.
This case describes the March 2018 Ransomware attack on the information technology (IT) systems of the city of Atlanta and the response by Mayor Keisha Lance Bottoms and her administration. The case includes a brief background on Bottoms and her young administration at the time of the attack. The case also includes background information about the trend of ransomware attacks against organizations, including government entities such as municipalities. Several cybersecurity experts describe the tactics of ransomware attackers and potential strategies to respond when ransomware attacks occur. The (B) case concludes with a description of Bottoms and her administration's approach to managing the crisis, including her decision to not pay the ransom and instead use Atlanta's cyber-insurance policy award to invest in remediation and upgrading of the city's IT systems.
Researchers interviewed a diverse group of employees to gain insights into their experience of inclusion in the workplace. They found that inclusive leaders are skilled at creating voice space an environment in which employees feel confident about openly communicating their ideas, recommendations, concerns, or other work-related opinions. Based on their study, the researchers offer four ways leaders can create voice space while elevating the confidence of their team members.
In 2021, the HBS Impact Investment Fund student team had found a promising impact investment in the co-operative trouser manufacturer, Southwick Social Ventures. Their 100% immigrant workforce sought to pave the road to transforming Lawrence, Massachusetts, a city that was once a manufacturing hub that had recently seen less economic investment than other U.S. cities. The student team was then charged with recommending a set of terms to their investment committee. They needed to determine how exactly to strike the right balance between providing an acceptable return to the fund while providing founder-friendly terms to Southwick Social Ventures.
In the summer of 2022, it became clear that Netflix would introduce an ad-supported tier alongside its existing subscription plans in the near future. Speculation abounded as to the details of the new tier: How many minutes of advertising would it include? What picture quality would it offer? How many screens could be viewed at the same time? And, critically, how much would it cost the consumer per month? In this exercise, students are tasked with trying to assess whether Netflix should indeed go ahead with introducing a new ad-supported tier - and if so, how? - or whether the company would be better off sticking with its existing tiers and repricing them - and if so, by how much? Students need to evaluate which of these options would maximize the number of subscribers, and importantly, profits. Students have at their disposal results from market research (specifically a conjoint analysis study), financial reports, and industry data. The exercise also allows for a conceptual discussion of the merits of alternative revenue models: ad-driven vs. pure subscription-driven vs. a hybrid of the two.
Organizations and top teams downplay or ignore how hard it is to be a good manager to skillfully hire, engage, develop, coach, supervise, evaluate, and promote people. Most managers aren't held accountable for building and exercising these critical skills. Instead, they've internalized the strong message that qualities like strategic vision and executive presence matter much more, leaving them and their organizations poorly equipped to deal with reality. Here are the skills that can turn the tide.
June 16, 2020, marked another milestone in the Hong Kong Jockey Club (HKJC)'s long history - the opening of the new Clubhouse. Scarlette Leung, the Executive Director of Corporate Planning, Branding and Membership at the HKJC, was introducing the new clubhouse to the guests attending the opening ceremony. Nearly forty months after the new Clubhouse design and business plan was approved by HKJC's Board of Stewards, it was finally ready to be unveiled to HKJC's members. The HKJC had long contemplated the implementation of a digital transformation. The launch of the new Clubhouse project provided the opportunity to go ahead and realize new benefits and services for the members. The initial usage patterns and informal feedback indicated that members were delighted with the new Clubhouse, especially the younger segments. With the new clubhouse, the demand pipeline had increased. Many members had also started using the new digital app, even some of the older ones who were less tech savvy. Still, it was too early to pop the champagne bottles. Challenges remained on the horizon. The pandemic was still ebbing and flowing. Government-imposed social distancing measures severely complicated hospitality businesses, including private clubs such as HKJC. Scarlette was reflected on some of the challenges lying ahead. Would the recent initiatives be sufficient to attract younger members to the Club without alienating older club members? Would there be more breakthroughs for operations to realize new capabilities from the membership transformation? Would new programs and events realize the intent of the business design to attract the younger segments and their social circles for more regular visits? And how about the operational staff who had all learned the new way of operation that was hardwired by the new systems - would they continue to improve and buy into the new direction the Club was heading toward?
Honorable Mention; 2022 DEI Global Case Writing Competition. It is March 2022, and Imani Furaha, founder and CEO of Dynamo Relations, is at a key point with respect to the next step of her company's growth. After growing her public relations and brand management firm in both 2018 and 2019, the company had been hit by hard times during the COVID-19 pandemic, forcing her to make some tough adjustments. As the pandemic waned, Furaha was ready for lucrative new projects. But what had at first looked like the project that could give Dynamo a huge lift, turns out to be possibly detrimental to a star employee-Nathaniel de Guzman-who was born with cerebral palsy. Dynamo just received a proposal from one of its biggest clients, the mayor of Chicago, who is running for governor of Illinois. The mayor wants de Guzman as her key PR representative on her campaign and he clearly has the required skills and experience, but Furaha has many concerns. Are there increased physical risks for de Guzman due to the many on-site appearances required with a statewide campaign? Will Dynamo have to bear additional costs associated with his travel and work accommodations for this assignment? Might he become tokenized as a "voted-getting" element?
This note provides an overview of real estate iBuying, or instant buying, a business model that involves buying homes and then reselling them at a profit. Introduced in the mid-2010s, iBuying streamlined the process of selling a home by offering instant, all-cash offers to sellers. This note includes context on the traditional home buying and selling processes, the impact of property technology (PropTech), the iBuying process and unit economics, and the iBuying market landscape (e.g., top players and geographic markets).