The case study follows Microsoft's transformation under CEO Satya Nadella over the last decade. The story of the transformation emphasizes two critical and inseparable themes, namely strategy and leadership. In doing so, it hews closely with the classical view of a turnaround and how Nadella was able to command the attention of the organization as he breathed new life into what had become a complacent company resting on past laurels. It traces a host of changes that were made to articulate and implement a cloud-first strategy with an emphasis on customer centricity and ubiquity of the product suite. The changes called for destroying some of the core advantages the company had relied in the past to deliver predictable revenue growth. It discusses the approaches that Nadella deployed to reengage the talent of the company and rebuild a new culture consistent with his new vision for the company, and the manner in which he infused a growth mindset among the rank and file. It closes with the partnership deal with OpenAI and the changes that have followed at the company. The case also raises questions about the viability of another turnaround, this time a pivot toward generative AI in an intensely competitive landscape.
This case explores the challenges faced by the University of Virginia (UVA) in defending against sophisticated social engineering cyberattacks. Despite proactive measures, UVA Chief Information Security Officer Jason Belford and his team grapple with evolving threats that exploit human vulnerabilities. The case examines the university's cybersecurity landscape, detailing the methods used by cybercriminals and the institution's response strategies, including phishing training and awareness programs. Students are tasked with analyzing the data from phishing simulations and developing new initiatives to foster a culture of resilience. The case provides a platform for discussing the complexities of cybersecurity in large institutions and the critical importance of organizational awareness and proactive defense mechanisms.
At the dawn of the twenty-first century, Boeing and Airbus, the leading manufacturers of large commercial aircraft, were locked in a battle for market share that drove down prices for their new planes. At about the same time, the two industry heavyweights began developing new aircraft families to address their projected future market needs. Large commercial aircraft (generally defined as those carrying more than 100 passengers) were among the world's most complex and expensive manufactured products. A wide-body jet comprising millions of parts and nearly 200 miles of wires and tubing could be priced at $300 million or more. Design and manufacturing took up to ten years, from initial research to a finished product. The process required large numbers of highly trained and specialized workers. It also took large amounts of capital; recent aircraft programs were estimated to cost more than $13 billion. Manufacturers had to invest in extensive and highly specialized facilities and equipment and commit to high attendant fixed costs. To maximize their development investment, manufacturers created aircraft "families" that used the same airframe or body as a platform for multiple models. Within each family were aircraft that varied in numerous dimensions, the most important of which were passenger capacity and flight range--critical determinants of the airline's strategy. In October 2007, the Airbus superjumbo A380 made its first flight. The A380 carried more passengers than any other plane in history and had as a solution to increased congestion at global mega-hub airports. Four years later, the Boeing 787, a smaller long-range aircraft, was launched to serve secondary cities in a point-to-point network. When these planes made their inaugural flights, the global environment had significantly changed from when they were first planned. China and other emerging Asian economies were growing rapidly, spawning immediate and long-term demand for more aircraft. At the same time, changes to the market for air travel had created opportunities for new products. These opportunities had not gone unnoticed by potential new entrants, which were positioning themselves to compete against the market leaders. The case provides students with an opportunity to analyze the profit potential of the global aircraft manufacturing industry in 2002 and 2011. Students can also identify the actions of participants that weakened or intensified the pressure on profits within the industry.
In 2019, Parker Hannifin, one of the world's largest manufacturers of motion and control technologies, did something unusual for an industrial company: it created a purpose statement. Even though it already had a clear business strategy and longstanding culture of empowering its employees, creating a nine-word purpose statement proved transformational. This was particularly true during the pandemic, when Parker's purpose-Enabling Engineering Breakthroughs that Lead to a Better Tomorrow-came to life as team members built parts for lifesaving ventilators and designed a filtration system that enabled the mass-production of vaccines. Now Parker's new CEO must determine how to bring Parker's purpose fully to life, using it to inspire team members, connect with customers, and guide the company as it navigates clean energy technologies and other challenges.
Kamrul Tarafder was the President and CEO of ASA Philippines Foundation, a social enterprise dedicated to empowering women by providing microloans for them to start or run small businesses. Unlike traditional microfinance models, these loans are underwritten by able family members and disbursed in groups to reduce administrative costs. The organisation's prudent approach to screening, delivery and collection, which includes starting repayment before the tenure of the loan is over, has made ASA Philippines shape a successful model which aims to solve some challenges of the Grameen cooperative model. Throughout challenging economic periods, Tarafder maintained a strong commitment to financial inclusion by extending the loan duration or waiving loans to support borrowers during difficult times. He operated a sustainable business model by raising funds in the capital markets and ensuring timely repayments to build a positive track record and a credible reputation with lenders. Tarafder hoped to share his insights and strategies with other stakeholders in the industry in order to amplify the impact of microfinance on poverty alleviation and economic empowerment.
The primary objective of this case is to introduce the notion of why and how businesses are transforming by leveraging digital information technologies. Additionally, the case reinforces concepts typically covered in today's introductory information technology and systems (ITS) courses. The secondary objective of the case is to illustrate the importance of integrating information technology and operations to operate successfully in today's digital economy. Key IT concepts that can be examined using this case are: (1) the need for a business to leverage technology and transform to survive in today's digital world; (2) the role digital information technologies play in creating new business models; and (3) differentiating digitization and digital transformation in organizations. The supplemental operations management concept examined in this case is: process mapping and process analysis.
When the "King of Pop," Michael Jackson, unexpectedly died in 2009, he left behind an estate that was over $500 million in debt, with largely illiquid assets, and legions of creditors poised to begin to seize assets in as soon as 60 days. The task of managing Jackson's estate, in the role of co-executor-bitterly contested by some members of the Jackson family-fell to celebrated entertainment lawyer John Branca, who was re-hired by Jackson just two weeks prior to his death after on-and-off engagements with the entertainer since the mid-1980s. Soon after Jackson's death, Branca's closest colleagues and advisors recommended that he begin to sell assets, but he decided to go down a different path. This case explores the intricately executed series of negotiations Branca undertook to revive Jackson's legacy with many initiatives including a major movie deal, lucrative multi-album recording agreements, two Cirque de Soleil shows, a Tony Award winning Broadway musical, and even more ambitious plans. While Jackson had earned about a billion dollars during his lifetime as a performer, Branca's stewardship brought the entertainer's estate from the edge of bankruptcy a value of about three billion dollars and rising.
The use of intense emotions in marketing campaigns is not unusual. This case illustrates the use of negative emotions in advertising in order to decrease competition and enable prices to increase. It examines examples in two common emotional contexts-embarrassment and fear-reviewing ads promoting funerals, public service campaigns, mouthwash, diapers, and infant formula. Substantial issues about emotional marketing concern whether it is moral and whether it is deceptive. The case includes discussion of social taboos and, as such, may upset the sensibilities of some students, although this is not the author's intention. Please note that the phenomenon of social taboos creating such sensibility is precisely the basis of higher prices and the learning value of this case.
In early 2015, many economies around the world were already dealing with a downturn in the markets when the price of oil dropped steadily, which had a strong impact on oil-dependent economies in the Persian Gulf region. As the corporate debt market decreased considerably, the airline Emirates (owned by The Emirates Group) decided to try a distinctly new approach by issuing a sukuk, or Islamic bond, with the backing of the United Kingdom’s Export Credits Guarantee Department. If successful, it would become the first sukuk certificate guaranteed by an export credit agency. It would also be the largest-ever debt capital markets offering in the aviation sector with a guarantee from an export credit agency. Surprisingly, the sukuk was not rated by any of the three major global credit rating agencies. Why was the sukuk issued by Emirates not assessed by a major credit agency? If it had been, what rating would it have received? Most importantly, what were the sukuk’s risks and how should such an innovative bond be priced?
The chair of Aditya Birla Group (ABG)—an Indian conglomerate whose businesses ranged from cement production to textiles—stressed to the leadership team that sustainability in business was a holistic pursuit with a three-step agenda. This involved (a) managing business operations responsibly; (b) understanding material issues from all stakeholder perspectives; and (c) seeking ways to create and share value with each stakeholder group by active use of knowledge. The meet this sustainability vision, the leadership team established an independent Group Sustainability Cell, which was tasked with formalizing and integrating the principles and standards needed to develop and improve sustainability across ABG. The sustainability cell would support the development of governance structures, a sustainability framework, and clear road maps for the business to prepare for a more sustainable future. In 2015, Aditya Birla Fashion Retail Limited (ABFRL) emerged after a consolidation of ABG’s apparel businesses. Ashish Dikshit, appointed as ABFRL’s business head, was tasked with leading the company toward a Group-wide Sustainability 1.0 framework. One morning, Dikshit was pondering this new challenge on his way to work. On reaching the Bangalore office, he sat down with his team to decide the way forward: How could the organization’s structure be adapted to achieve this sustainability vision? What should be the governance structure? What was ABFRL’s sustainability road map? How could sustainability progress be monitored?
Sally Maven had advised many clients about pricing strategies over the years, but in the fall of 2023, she felt anxious about how to direct her newest customer, multinational brewer Anheuser-Busch (AB) InBev. Antitrust authorities had scrutinized AB InBev on multiple occasions in the past, and as a prominent player in the drink market, the company seemed like a possible target for future inquiry. Even if market circumstances warranted raising prices of AB InBev products, would doing so be wise given the potential for action by the Federal Trade Commission (FTC)? This case was written for use in Darden's global economies and markets (GEM) core course for a class on the economics of market power. The case helps students understand the differences in profit-maximization for firms in monopolistic and competitive markets while compelling students to think about various issues that can influence the ultimate price of a product. Using demand and cost schedules for AB InBev, students will need to calculate the firm's optimal price for a six-pack of beers under multiple demand scenarios. With the potential for FTC scrutiny in mind, students will need to consider whether to recommend a price that maximizes short-run profits or an amount closer to the competitive market price.
This case portrays the entrepreneurial journey of two academic scientists who spent much of their careers addressing the problem of substance use disorder (SUD). Warren Bickel, a psychologist with a deep understanding of behavioral economics, had what he believed to be a valuable approach to fighting opioid addiction. It complemented clinical and pharmacological therapies that were the current standard of care. The case describes the journey that he and his colleague, Lisa Marsch, took to bring this digital therapy to the market. The context is one in which the offering is an avoidance product for may consumers, in a product category of interest to the public health sector, and relies on a indirect payment model. Market structure, technological development, partnership options and organizational structure uncertainties abound, making this case an excellent vehicle for students to learn tools and methods associated with opportunity identification and elaboration. The Learning Plan offers a method for identifying the full spectrum of uncertainties and managing them proactively.
This case portrays the entrepreneurial journey of two academic scientists who spent much of their careers addressing the problem of substance use disorder (SUD). Warren Bickel, a psychologist with a deep understanding of behavioral economics, had what he believed to be a valuable approach to fighting opioid addiction. It complemented clinical and pharmacological therapies that were the current standard of care. The case describes the journey that he and his colleague, Lisa Marsch, took to bring this digital therapy to the market. The context is one in which the offering is an avoidance product for may consumers, in a product category of interest to the public health sector, and relies on a indirect payment model. Market structure, technological development, partnership options and organizational structure uncertainties abound, making this case an excellent vehicle for students to learn tools and methods associated with opportunity identification and elaboration. The Learning Plan offers a method for identifying the full spectrum of uncertainties and managing them proactively.
A Polish restauranteur and entrepreneur, Christopher Przemyski (Chris) founded Bistro Concept Group in 2015. Thereafter, he created a portfolio of themed restaurants congregated around Sai Ying Pun and nearby Central district on Hong Kong Island. His restaurants are designed around a strategy of affordable good food in an artsy environment. He was eager to improve the restaurants turnover for both dine-in and takeaway. The Case provides an overview of the business model of online food delivery platforms, the competitive dynamics, and the industry's efforts in market development. It serves as a canvas for students to learn price setting and multichannel price management when designing integrated marketing programs.
In recent years, as the initial surge of new consumer brands has subsided, attention has refocused on established "heritage brands." The real challenge now under study is how a brand can achieve initial success, scale sustainably, and maintain its legacy over time. This case study traces L'Oreal Group's branding strategy evolution since its entry into the Chinese market. Founded in 1909 with a single hair dye product, L'Oreal expanded through strategic acquisitions to become the world's largest cosmetics group. Today, it boasts a portfolio of over 500 brands encompassing hair color, skincare, makeup, and fragrances. Beginning in 1996, L'Oreal introduced diverse brands such as Lancôme and Garnier to China, achieving significant success in the luxury cosmetics segment. However, its penetration into the broader mass skincare market proved challenging. L'Oreal acquired local favorites like Mininurse and Yue-Sai in 2004 to bolster its presence in this arena. Unfortunately, these acquisitions did not meet expectations and gradually faded from prominence. By 2022, L'Oreal had established an investment firm in China, focusing on equity investments to foster deeper collaboration with local brands. L'Oreal's journey in China illustrates a strategic evolution from brand introduction to local acquisitions and subsequent equity partnerships. Each strategic pivot reflects a nuanced understanding of market dynamics, a critical review of past approaches, and an ongoing commitment to innovation in response to evolving challenges.
"Chi Forest, a beverage company founded in 2016, breathed new life into the long-unchallenged Chinese beverage market with its innovative, internet-focused approach. The company was renowned for rapidly creating differentiated blockbusters, including its signature Sparkling Water, Alien Electrolyte Water, R Tea, and Milk Tea Classic. Its Sparkling Water, launched in 2018, quickly took the market by storm and has since maintained its leading position. Over the next three years, Chi Forest saw its sales revenue skyrocket 15-fold from ¥160 million to ¥2.5 billion, making it a force to be reckoned with in China's beverage industry. Chi Forest's rapid rise to prominence captured the attention of entrenched industry leaders, prompting them to unite in an attempt to thwart its development. These industry giants introduced their own sugar-free sparkling water products mirroring Chi Forest's offerings, pressured distributors to exclude its products from their channels, and persuaded suppliers to cut ties with Chi Forest. Flush with financial and logistics resources, these large companies sought to disrupt Chi Forest's dominance in the market. Faced with these hurdles, Chi Forest recalibrated its operational approach. To mitigate its comparative disadvantages, this internet-based company began adopting strategies similar to those of traditional beverage companies, such as building its own production facilities, expanding its distribution networks, and restructuring its organizational framework. In addition, Chi Forest aggressively ventured into the cola sector, a segment long dominated by the duopoly of Coca-Cola and PepsiCo. By launching cola-flavored sparkling water, Chi Forest aimed not only to disrupt the market with another innovative product but also to demonstrate its boldness and readiness to take on the industry titans.
This case study series delves into the innovative evolution of the Yang brothers' business model, segmented into three main parts: Cases A, B, and C. Case A reveals the captivating transformation of the Yang brothers from comedic influencers to pioneers in live stream sales, marking a significant milestone as they became the first to amass over a hundred million followers on TikTok. Their unprecedented popularity and commercial triumph, however, came with its own set of challenges. Numerous editors began segmenting their live streams into a variety of short clips for unauthorized distribution, aiming for profits but instead causing consumer confusion and discontent. The critical issue at hand is: How do the Yang Brothers intend to tackle the problem of these unauthorized clip accounts? Case B follows Case A and outlines the Yang brothers' clever solution: they began licensing their livestreams to clip editors, thus entering the livestream clip distribution market. This savvy strategy not only boosted their profits but also benefited the clip editors, consumers, and other stakeholders involved. However, the rapid increase in licensed editors eventually led to market saturation. The pressing question now is: What strategies should the Yang brothers employ to address this oversaturation? Case C follows Case B and introduces the launch of 'Everyone's Assistant' by the Yang brothers, a platform embodying a novel business model designed to address the saturation and competitive challenges in the livestream clip market. This platform brought a wide array of clip editors and livestreamers together for collaboration, thereby standardizing the industry and accruing significant benefits for both the Yang brothers and other stakeholders. However, this innovation also ignited discussions on the heightened competition and concerns about product integrity, prompting contemplation on the future trajectory of 'Everyone's Assistant': What strategies should the Yang brothers adopt to ensure sustainable expansion of this business segment? This series illustrates the dynamic process of business model innovation navigated by the Yang brothers against the backdrop of an ever-changing stakeholder landscape. Each phase of innovation not only resolves immediate issues but also introduces new challenges, driving the need for continuous innovative solutions. Through relentless innovation, the "Crazy Yang Bros" brand has seen its value soar, benefiting an expanding network of stakeholders-an exemplary model of adaptability and success worth studying.
Supplement to The Crazy Yang Bros (A): Revolutionizing Live Commerce with Comedy. Case B outlines the Yang brothers' clever solution: they began licensing their livestreams to clip editors, thus entering the livestream clip distribution market. This savvy strategy not only boosted their profits but also benefited the clip editors, consumers, and other stakeholders involved. However, the rapid increase in licensed editors eventually led to market saturation. The pressing question now is: What strategies should the Yang brothers employ to address this oversaturation?