This case set is part of the Giving Voice to Values (GVV) curriculum. To see other material in the GVV curriculum, please visit http://store.darden.virginia.edu/giving-voice-to-values. Simon is a data scientist in the advanced analytics team of a large German corporation. In its hiring process, the company uses artificial intelligence (AI) that analyzes video interviews to create personality profiles of applicants. It is Simon's job to further develop the AI software according to the needs of the HR department. In this A case, Simon is asked by his HR counterpart, Luke, to program the AI to display not only an applicant's personality profile but also the likelihood that they will soon become pregnant. Luke justifies the request by saying that it is important that applicants be physically fit and resilient, as they must be able to operate large machines, and he does not want to put pregnant workers at risk. Although Simon has the data points and capabilities to program the software as desired, he feels uncomfortable and wants to find a way to effectively enact his values. This case is intended for use at the graduate/MBA level in courses on information technology management, technology development, data ethics, organizational behavior, and leadership and ethics; it would also be suitable for advanced undergraduates in these fields.
This case set is part of the Giving Voice to Values (GVV) curriculum. To see other material in the GVV curriculum, please visit http://store.darden.virginia.edu/giving-voice-to-values. Simon is a data scientist in the advanced analytics team of a large German corporation. In its hiring process, the company uses artificial intelligence (AI) that analyzes video interviews to create personality profiles of applicants. It is Simon's job to further develop the AI software according to the needs of the HR department. In the A case, Simon is asked by his HR counterpart, Luke, to program the AI to display not only an applicant's personality profile, but also the likelihood that they will soon become pregnant. Luke justifies the request by saying that it is important that applicants be physically fit and resilient, as they must be able to operate large machines, and he does not want to put pregnant workers at risk. Although Simon has the data points and capabilities to program the software as desired, he feels uncomfortable and wants to find a way to effectively enact his values. In this B case, Simon shares his concerns with Luke. This case is intended for use at the graduate/MBA level in courses on information technology management, technology development, data ethics, organizational behavior, and leadership and ethics; it would also be suitable for advanced undergraduates in these fields.
By October 2021, the US social media giant Facebook Inc. had been dominating the social media market globally with the highest number of active users. It owned four of the biggest social media platforms—Facebook, WhatsApp, Messenger, and Instagram. However, the company’s history was marked by controversies ranging from ethical matters to social issues. The various crises it had faced to date included thousands of internal documents leaked by whistle-blower Frances Haugen, public criticism by former director Tim Kandell, and data breaches by Cambridge Analytica. These crises were symbolic of the anguish that various stakeholders were feeling. In the aftermath of these events, Facebook Inc. had to contemplate various key questions. Were the controversies destructive to the company, or were they adding value to its growth? Had the company taken the right actions to address its issues, or could it do more to make amends? How could the company prevent the recurrence of such situations in the future?
On March 26, 2020, Singapore Airlines was reeling from the impact of the COVID-19 pandemic. To raise badly needed capital, it announced that its shareholders would be offered S$5.3 billion worth of rights shares and S$3.5 billion of rights mandatory convertible bonds, both of which would be reflected as equity on its balance sheet. Should shareholders take advantage of this offer or not? To make this decision, investors had to analyze the airline’s reasons for choosing this form of equity financing, the impact of this capital-raising exercise, Singapore Airline’s valuation, and the role of sovereign wealth funds in equity financing. Investors would have to decide the appropriate response to the rights issuances.
Roy He, founder and majority shareholder of his family construction material production company, was preparing to pass down the family business through its first generational handover to his children. His decision would establish his familial legacy and set a precedent for both future generational takeovers and the future of family unity and identity. To assist, He had brought in Hefeng Family Office to develop his succession plan by establishing a family ownership structure, governance system, family trust, and family agreement. However, he remained dubious: was now the time for him to step back and pass on his legacy to the next generation? He remained reluctant to give up control of the company, and the succession process would require passing on the majority of his shares to his successor. How should he establish a family governance structure that would protect the next generation's interest and benefits while also allowing flexibility for future generations' decisions? The structures were now in place, but was the family truly ready for him to pass the baton?
The summer of 2022 marked a crucial period for Heritage Holding co-founders, Alex de Pfyffer and Ross Porter. The pair successfully acquired a large telecom business in 2016 through the search fund model, and several follow-on acquisitions between 2016 and 2022. In 2018, Heritage holding officially adopted the independent sponsor model, and adhered to the framework until the summer of 2022. The case explores a moment when Alex and Ross face a decision: advance Heritage Holding further as an independent sponsor, or convert the company to a private equity model.
This case continues the themes discussed in "Pricing at Netflix" (Case 521-004). Following the conclusion of the original case, Netflix developed new, high-profile original content, added millions of subscribers, and introduced another price increase in January 2022. Yet Netflix struggled to grow as streaming rivals such as Disney+, Hulu, and HBO Max captured market share and the global pandemic was winding down. The case describes actions that Netflix considered to remain competitive, such as developing video games, charging users for sharing passwords, and, particularly, rolling out an ad-supported tier at a cheaper price than the other plans it currently offered. The case describes other streaming platforms' ad-supported tiers and asks readers to consider whether and how Netflix should design its own ad-supported plan; as well as whether raising subscription prices yet again on its existing plans was advisable.
Firms in mature industries often find themselves at a strategic crossroads, forced to choose between consolidating their position in existing market segments or breaking into new markets. At SAIC-GM-Wuling Automobile Co., Ltd. (hereinafter "Wuling"), the scales tipped in favor of the latter option: the company challenged the status quo by developing the Hongguang MINIEV (hereinafter "MINIEV"), a model featuring a minimalist design and no redundant features. The company also encouraged customization to adapt to shifting user preferences, turning the MINIEV into a fashion statement. By doing so, Wuling could avoid fighting for existing market share and break into the mass market for customized cars. In April 2021, nine months after its launch, the MINIEV was China's best-selling electric vehicle (EV) for the eighth consecutive month. It also topped the global EV sales rankings in January and April 2021. Despite its success, the MINIEV did not bring a sense of safety for Wuling's general manager Shen Yang and deputy general manager Xue Haitao. Instead, the two worried about how long the sales momentum would last, what sort of product strategy Wuling should adopt in the future, and which path to take-specifically, to tap into the higher-end segment with upgraded products or to consolidate its position in the value-for-money segment.
"The fast-growing educational technology start-up Resilia had successfully initiated its operations in Brazil. It trained full stack developers and connected them with entry-level jobs at unicorn start-up companies such as iFood, Stone, and Nubank, as well as traditional established companies going through a digital transformation process, such as Globo, one of Brazil's largest media conglomerates. After two years of growth between 2019 and 2021, and with evidence for the potential of his start-up idea, the cofounder of Resilia, Bruno Cani, found himself in a challenging position after attracting the investment of XP Investimentos, one of Brazil's largest financial technology firms. As of 2022, Resilia's dilemma was to find a way to scale up the start-up without losing sight of its original purpose, but at the same time to show the potential value of monetizing this initiative in a near future, so that the business could operate without the need for investors' money. Resilia had developed three key major capabilities: (1) acquiring customers (i.e., students) from among the low-income population and selecting the applicants with the most potential, (2) training them and funding their training through a system in which they would pay back the investment based on a percentage of their income once they had completed the program and found work, and (3) connecting with partnering companies to facilitate their employment and career advancement. This case is appropriate for use in an MBA, executive education, or undergraduate course on social entrepreneurship, innovation, marketing, or corporate social responsibility."
Axis Bank was the fifth-largest bank in India, one of the world's fastest-growing economies. In 2006, the bank set up a trust, Axis Bank Foundation, to manage its corporate social responsibility (CSR) initiatives. In Phase 1 of its CSR journey, it had followed three of the Millennium Development Goals of the United Nations and achieved the mission of "generating one million livelihoods in a sustainable manner," ahead of schedule. Encouraged by the success of Phase 1, Axis Bank planned to include three additional Sustainable Development Goals to guide Phase 2 with the mission of "generating livelihoods in a sustainable manner for two million households." Rajesh Dahiya, who oversaw Axis Bank's CSR initiatives, was faced with several key decisions for framing the CSR strategy for Phase 2 based on an evaluation of the performance in Phase 1 and the lessons learned in that phase.
In June 2021, John Crain and Jonathan Perkins, the founders of SuperRare, a marketplace for non-fungible tokens (NFTs), contemplate whether to transform their company into a decentralized autonomous organization (DAO). Crain and Perkins founded SuperRare in 2018 to provide a marketplace for fine art NFTs. However, after experiencing rapid growth in late 2020 and early 2021, they believed it was time to transition control of the platform's governance, curation, and strategic direction to the SuperRare community. Under the DAO, the platform's revenue would shift from SuperRare's balance sheet to a community treasury. Breaking new ground for startups, the founders have a difficult set of choices. They could immediately transform SuperRare into a DAO, pursue a tapered option in which the revenue gradually transitioned to the community treasury, or stay the course as a private company. They considered which option was the best for SuperRare and its community of artists and collectors as well as the SuperRare investors and team.
Fear of failure weighs heavily on many leaders tasked with managing new workplace expectations. Tackling uncertainties begins by seeing these challenges not simply as binary judgments (office or home; full time or part time) but as the impetus to give work a structural overhaul. Leaders are redesigning work by moving through four steps: understanding people, networks, and jobs; reimagining how work gets done; modeling and testing redesign ideas against core principles; and taking action widely.
Researchers studied eight multinational firms to learn what makes some companies better able to deal with a host country's hostility than others. They found that firms operating in foreign countries through a joint venture with local companies tended to rely too much on their partners to relate to stakeholders and missed early warning signs of hostile government actions. In comparison, companies that operated through directly controlled subsidiaries had better intelligence and better outcomes.
Set in two parts the case documents the manoeuvres of a creative digital business school, Hyper Island (HI). Part A is set in December 2019 and narrates the biased decisions HI to pursue a flawed business model. The case is discussed from the perspective of Melanie Cook, the Asia-Pacific Managing Director of HI in Singapore. Cook played a key role in HI's strategy team. In 2017, HI launched a consulting service to design and deliver bespoke learning journeys for its corporate clients to generate more revenue and create a unique competitive advantage. Since it overlooked the potential pitfalls due to prolonged sales cycles and resultant costs, HI landed in financial troubles. Cook and her team faced the dilemma of abandoning the consultancy business model and switching to a new business model that would shorten the sales cycle, slash costs, and bring in more revenue. Part B of the case documents how pivoting to a productized business model helped HI gain revenue growth and improve its bottom line. While the course correction saved HI from imminent financial failure, new challenges emerged. Cook had to find means of keeping the employees engaged and securing their buy-in to drive the productized business model.
Set in two parts the case documents the manoeuvres of a creative digital business school, Hyper Island (HI). Part A is set in December 2019 and narrates the biased decisions HI to pursue a flawed business model. The case is discussed from the perspective of Melanie Cook, the Asia-Pacific Managing Director of HI in Singapore. Cook played a key role in HI's strategy team. In 2017, HI launched a consulting service to design and deliver bespoke learning journeys for its corporate clients to generate more revenue and create a unique competitive advantage. Since it overlooked the potential pitfalls due to prolonged sales cycles and resultant costs, HI landed in financial troubles. Cook and her team faced the dilemma of abandoning the consultancy business model and switching to a new business model that would shorten the sales cycle, slash costs, and bring in more revenue. Part B of the case documents how pivoting to a productized business model helped HI gain revenue growth and improve its bottom line. While the course correction saved HI from imminent financial failure, new challenges emerged. Cook had to find means of keeping the employees engaged and securing their buy-in to drive the productized business model.