The media industry is explored in this paper, highlighting both ongoing changes and recent trends. Students will learn about large transactions in recent years that have changed the media landscape as well as the growth of new competition of subscription video.
When Covid-19 hit the US in 2020, the grocery retail industry underwent a greatly accelerated digital transformation as consumers' habits changed drastically in a matter of weeks. As Americans sought to avoid their risk of exposure to the coronavirus, the adoption of online grocery shopping, click-and-collect and self-checkout skyrocketed. By 2022, it appeared this shift was here to stay, changing the grocery business for the long term. Yet, while big supermarket chains were scrambling to capture this new wave of digital shoppers, Trader Joe's consciously decided not to invest in e-commerce or omnichannel solutions. The company doubled down on experiential retail, choosing to remain a pure brick-and-mortar player and to keep its stores low-tech. Can this maverick company maintain a competitive advantage by going against the macro-trend of digitalization?
Herend Porcelain Manufactory Ltd. (Herend) was an almost 200-year-old porcelain manufactory located in western Hungary. The company had weathered multiple social and political changes, world wars, and hardships and had variably experienced prosperity, international recognition, and, on one occasion, bankruptcy. However, under the current chief executive officer, Herend had become a stable and profitable organization. Then, in March 2020, the COVID-19 pandemic created unprecedented challenges. Government-mandated lockdowns-an attempt to contain the spread of COVID-19-restricted consumers from shopping in person at Herend's shops and diminished the use of porcelain in hospitality and gastronomy where the porcelain sets would be used. The health safety of employees, production disruptions, and decline in orders were other concerns. How could Herend prepare for and survive this extraordinary challenge?
This case explores a way to identify an industry by simply examining a set of financial ratios. Certain industries have unique financial statement items and, hence, unique financial ratios. Some, on the other hand, have a few financial ratios that are consistently high or low. Students will grapple with practical questions on the identification of various industries simply by analyzing sets of financial ratios. In a practical context at school or workplace, students will then be able to reverse the process, i.e., to identify and apply financial ratios to certain significant industries, such as a stock exchange, banking, insurance, oil and gas, IT consultancy, e-commerce, and pharmaceutical.
In May 2021, Asahi Group Holdings, Limited (Asahi), a Japanese global beer, spirits, soft drinks, and food company, shifted its focus to non-alcoholic beers. The shift was made after spending US$20 billion to acquire premium beer brands from Anheuser-Busch InBev SA/NV, a Belgian multinational drinks and brewing company. The Japanese beer market had been shrinking for decades with Japan's declining population, and more recently, the market had shrunk further because of restrictions imposed during the ongoing COVID-19 pandemic. In response, domestic beer producers were looking abroad for better market opportunities.<br><br>Asahi needed a strategy to compete against the Belgian beer giant. Considerations included whether to pursue growth in Asahi's core beer business or diversify in the food industry, how to position a growing portfolio of products to minimize cannibalization, whether to shift focus from the premium to the lower-mass beer market, and how to approach the potential Chinese beer market. Regardless of growth strategy, Asahi needed to deal with a loss in share value, triggered by investors nervous about Asahi's acquisition spree. To regain investor trust, Asahi needed to manage its financial leverage.
After years of learning from the best bakeries around the world, Polish entrepreneur Monika Walecka returned to her native Poland and, in 2019, opened her artisanal bakery, All in Flour. The bakery was an extension of her values and struck a delicate balance between financial and social objectives. All in Flour was located in one of the most upscale districts of Warsaw and focused on top-quality bread products. It used high-quality, diverse, and expensive ingredients sourced from small, local suppliers, and its bread prices were probably the highest in Warsaw. Walecka was considering whether to pursue any development options. In fact, her preferred option, at present, was to do nothing. She knew that growth was not an obvious choice because it came with risk, costs, and problems. Nevertheless, the decision of whether to change something was becoming the most important challenge of her entrepreneurial career as a baker.
OnlyFans, a paywalled platform primarily known for hosting adult content, had drifted towards sexually explicit content since COVID-19-related lockdowns began in March 2020. However, given pressure from its investors, in August 2021 OnlyFans announced it would ban sexually explicit content from its site later that year. Following the announcement, the company came under fierce criticism from its adult content creators, who maintained that OnlyFans owed its growth to pornography, an industry that had been evolving as technological advancements arose. On August 25, 2021, upon renegotiating with its capital providers, OnlyFans suspended the ban, though irreversible damage had been done. Considering the related information technology (IT) management and ethical issues, what should the chief executive officer of OnlyFans have done when OnlyFans' different stakeholders pulled the platform in different directions and expressed opposing ethical views? How was an open platform like OnlyFans supposed to judge what was ethical and what was not? Was banning (or not banning) sexually explicit content ethical?
In innovation, experimentation is much talked about in the abstract, but poorly understood in practice. It bridges solution generation and implementation, yet often takes the form of smaller-scale pilots rather than learning-oriented experiments. Building an evidence base behind new ideas, and particularly being ready to discard what doesn't work, is critical for successful innovation. This technical note provides a hands-on, step-by-step guide and templates to lead students in any discipline through a structured process for the design of experiments, from what it takes to frame testable ideas all the way through to choosing the best experimental design and prototype.
AcademyOne, Inc. (AcademyOne) was a small privately owned software provider whose focus was on providing students with college transfer solutions. It operated as an educational technology company that provided software as a service (SaaS) products to simplify and streamline the college transfer and advising process. After surviving an economic recession and an industry lawsuit, the firm had regained its financial footing, and in 2021, now that it was financially secure, some of its long-term investors had asked to cash out their investments. AcademyOne's president and chief operating officer was tasked with looking for ways to grow the business and with valuing AcademyOne, with the end game of selling the business.
This case follows the decision-making of Connie Ovalspot, fictional head of human resources at Squarespace. Ovalspot is being called on to advise the CEO and board members on how to address white supremacy on the company's platform following a domestic terror attack in Charlottesville, Virginia, in August 2017. After the event, employees reached out to Squarespace executives to protest the existence of extremist and hate-related groups on the company's platform. They asserted that Squarespace had a responsibility to remove these profiles. Ovalspot is tasked with determining the most appropriate and prudent course of action, including drafting a corporate response to the Charlottesville tragedy. This case examines the intersection of a firm's responsibility to its strategy, employees, customers, and values, viewed through both a legal and social lens.
Ecosystems are the result of a delicate balance between centripetal forces that push economic activities toward integration, and centrifugal forces that pull economic activities out onto the market. Ecosystems evolve when these forces change. For example, technological complementarities - the main source of centripetal force - are dynamic and may be commoditized, generalized, or standardized over time. Management and coordination also change: for example, open innovation practices enable firms to move innovation activities from the in-house R&D lab out into the ecosystem. This article discusses how such dynamics in technologies and management lead to ecosystem evolution.
Twelve years ago, in 2010, the private equity firm New Mountain Capital acquired a little-known Wisconsin software company, RedPrairie, for $565 million. In September 2021 it sold that same company, now named Blue Yonder, for $8.5 billion to Panasonic. About $5.7 billion of the gain had come from organic growth, not acquisitions. That success wasn't driven by any specific lucky break, technology breakthrough, or new product. Rather, it was the result of continual investment and improvement in the company's management, strategy, and governance--the same approach that best-in-class private equity firms have employed for years across dozens of industries and thousands of companies. By explaining how New Mountain transformed Blue Yonder, this article shows how private equity firms create value for businesses and for the economy. And it underscores how much the PE industry has evolved since its inception.
Resignations are at an all-time high, and companies desperate to fill vacancies are trying everything from pay raises to trendy perks. But those interventions are falling short, because the real problem, as the author explains, is that so many jobs are stressful, meaningless, and unlovable. Buckingham's data on what keeps employees engaged (from his work at ADP Research Institute) suggests that companies should change their approach to performance management to take advantage of each employee's unique skills and passions. That necessitates three mindset shifts: viewing employees as the key stakeholders in the organization; moving away from standardization in performance management tools; and trusting employees to accomplish their performance goals the way they see fit. No company today is yet the full "Love + Work" organization that Buckingham describes, but lululemon, Walmart, Amazon, McKinsey, and Cisco are among those that have begun to embrace some of its characteristics and have seen improvements in both retention and overall performance.
Traditionally, the most reliable way for a firm to find its next wave of growth was to apply the capabilities of its core business in an adjacent market. But recently a new pattern has begun to emerge. More firms are learning the art of building large second cores--what Bain's Zook and Allen call "engine twos." Given that in the past five years, 60% of big public companies have seen their growth stall out or stagnate--often because of technological disruption--finding an engine two has become increasingly imperative. What does it entail? Successful engine twos have four factors in common. They target markets where the profit pool is sizable and growing or shifting, as Amazon's cloud computing business did. They have a differentiated competitive advantage, which is often built up through acquisitions, as happened at Disney+. They adopt entrepreneurial approaches, like Bradesco's digital unit, Next, and leverage the scale and assets of the original core, as the industrial cleaning company Ecolab's new water-purification business did. In combination these four elements magnify one another's effects, often creating businesses that have much greater potential than firms' original cores.
Contrary to what many people think, virtual health care, also known as telemedicine or telehealth, is much more than a cheap digital knockoff of in-person care. When used appropriately, it improves patient health, reduces costs, and makes care more equitable and accessible to anyone with a smartphone. Its use has soared during the Covid era--and the authors argue that providers around the world should aggressively strive to tap its full potential even after the pandemic abates. Pearl and Wayling take readers inside Kaiser Permanente and Intermountain Healthcare, two of telehealth's earliest adopters and most effective users in the United States. They show how telehealth can reduce expensive and unnecessary trips to the ER, reduce America's chronic-disease crisis, address disparities in care, make specialty care faster and more efficient, and provide access to the best doctors. And they outline what's needed to spur adoption to a fully telehealth-driven system. Employers, who currently provide health insurance coverage to nearly half the U.S. population, could drive such a change by banding together and designing new reimbursement and care delivery approaches. The resulting savings could amount to tens of billions of dollars a year.