David Heath and Randy Goldberg founded Bombas in 2013 to serve two missions: to deliver the "best socks in the history of feet," and to donate socks (the most requested item in homeless shelters) to Americans experiencing homelessness. Eight years later, Bombas had established itself mostly through online marketing as a preeminent direct-to-consumer sock maker, and had introduced lines of underwear, T-shirts, and slippers as well. Bombas was also one of America's most visible buy-one-give-one companies, with over $250 million in annual revenue and 50 million pairs of socks donated. As it grew, however, the company faced mounting challenges. What pace of growth would best allow Bombas to reach new customers while maintaining focus on its social mission? How could the company attract the talent necessary to manage such a complex online operation? And with a sprawling network of 3,500 Giving Partners of varying sizes around the U.S., was it time for Bombas to simplify its giving program?
Should FIFA host its biggest event-the FIFA World Cup-every two years instead of every four, as it has been doing since the event's inception in the 1930s? In September 2021, Gianni Infantino, the president of the International Federation of Association Football (FIFA), addresses representatives of the 211 national associations that are members of football's highest-level governing body, from a conference room in FIFA's headquarters in Switzerland. The members have convened to discuss proposed reforms spearheaded by former coach Arsène Wenger, FIFA's Chief Football Officer, who is seated next to Infantino. News of the planned reforms already have sent shockwaves through the world of football. For instance, the president of football's European confederation, UEFA, has referred to a biennial World Cup as a "killer" and vowed to boycott the idea. The president of the Spanish league, one of football's top three domestic leagues, has dismissed the plans as "a threat not just to domestic football leagues but to the overall tradition of world football." Are the proposed reforms-all part of a 'Future of Football' project designed to reshape the sport-the right bet for FIFA? And if so, what can the governing body do to guide the process along the right path?
Founder-CEO of one of India's largest clean energy companies, ReNew Power, which develops, builds, and operates utility-scale wind and solar energy projects, has to decide the way forward for the company as the country and the world stand poised at the cusp of an energy revolution. In 2021, at the COP26 summit, India's Prime Minister had pledged that the country would achieve net-zero emissions by 2070 and raise renewable energy capacity fivefold by 2030. What role will ReNew Power play in this transition? Besides, with traditional power generators, which had focused on fossil fuel-based sources, finally taking notice of the renewables market, how can ReNew Power stay ahead of the competition?
In October 2018, Canada legalized recreational use of cannabis. One year later, in late 2019, after share prices had fallen significantly from their peak, investors were looking for favourable investment opportunities in the cannabis industry. HEXO Corp. and Aurora Cannabis Inc. were two cannabis companies that traded on the Toronto Stock Exchange and followed International Financial Reporting Standards. In such a young industry, many companies were still reporting losses. Therefore, potential investors focused on a company’s enterprise value (EV) and used the EV-to-revenue multiple as a useful metric for assessing a company’s value. Before conducting an analysis of the two companies’ values, however, investors had to consider several accounting directives issued by the International Accounting Standards that affected their financial statements. In particular, IAS 41 Agriculture posed various difficulties for Canadian cannabis companies. Investors who were interested in pursuing opportunities in Canada’s cannabis industry had to pay close attention to this accounting standard and to the financial statements of individual companies.
Hongxing ERKE Industrial Co., Ltd. (ERKE), founded in 2000, was the first large Chinese sportswear company to list overseas. Despite the difficulties it faced caused by poor management and the decline of its brand influence, ERKE donated ¥50 million worth of aid to disaster-hit areas in Henan, China, shortly after severe flooding in the province in July 2021. The donation caused an unprecedented online event in China and ignited the enthusiasm of netizens for buying ERKE products. Millions of netizens rushed to ERKE's livestreaming studios and expressed their gratitude and support for the company through "wild consumption." ERKE became representative in consumers' minds of excellent domestic products that were part of Chinese fashion trends. Why had ERKE's donation become such a hot topic and triggered a consumption binge in China? On the heels of this situation, how should ERKE use the opportunity to achieve a long-term competitive advantage in the future?
The historic Lund Resort at Kla ah men (the Resort) was wholly owned by the Tla'amin Nation and operated by Tla'amin Management Services LP (TMS). The Tla'amin Final Agreement had been in effect since April 2016, making the Tla'amin Nation self-governing over its land, resources, and members. The Resort, on British Columbia (BC)'s Sunshine Coast, featured thirty-one renovated guest rooms that ranged from budget-friendly units to luxury ocean-front suites. In addition to hiring a new general manager, the Resort needed to increase bookings in the shoulder season and stabilize staffing. By 2018, the Resort had had six general managers in two years and needed a highly experienced professional to fill the position. TMS hoped to retain this person for at least three years. The new manager would need to be a good fit in terms of Tla'amin culture and values; given the complex reporting structure, they would need to be adaptive and willing to work with multiple people within the Tla'amin leadership, including the TMS board of directors and the Tla'amin operating board. While it would have been best to hire a manager with experience working with Indigenous communities, the TMS had determined that this was not feasible and that it was best to hire someone who was experienced and open to learning about Tla'amin culture and values.
In October 2018, Canada legalized recreational use of cannabis. One year later, in late 2019, after share prices had fallen significantly from their peak, investors were looking for favourable investment opportunities in the cannabis industry. HEXO Corp. and Aurora Cannabis Inc. were two cannabis companies that traded on the Toronto Stock Exchange and followed International Financial Reporting Standards. In such a young industry, many companies were still reporting losses. Therefore, potential investors focused on a company's enterprise value (EV) and used the EV-to-revenue multiple as a useful metric for assessing a company's value. Before conducting an analysis of the two companies' values, however, investors had to consider several accounting directives issued by the International Accounting Standards that affected their financial statements. In particular, IAS 41 Agriculture posed various difficulties for Canadian cannabis companies. Investors who were interested in pursuing opportunities in Canada's cannabis industry had to pay close attention to this accounting standard and to the financial statements of individual companies.
The case describes a successful Singapore-based venture capital (VC) firm, Openspace Ventures, and its decision to incorporate elements of sustainable investing throughout its business. Similar to many early-stage investors, Openspace's early returns were driven by portfolio companies with a combination of large addressable markets, dedicated entrepreneurs, and a strong product offering aligned with the opportunity. Issues of sustainability or environmental, social, and (corporate) governance (ESG) were not initially part of their process, but after their initial success the founders are interested in "doing well by doing good"-and believe that it will not require sacrificing returns. This case illustrates how traditional early-stage investors such as Openspace can evaluate the trade-offs associated with adding a sustainability component to their investment process. In this brief case we introduce the protagonists, Shane Chesson, his co-founder Hian Goh, and the proposal they deliver to a room full of investors: to integrate sustainable investing principles throughout their successful, traditional VC business. Class discussion should lead to a decision on whether Openspace should proceed with Openhand, and if so, how to successfully manage the implementation.
Hotel Kinara is a newly built, well-functioning 4-star hotel in Ahmedabad. But the hotel owners desire an exit from the market. A transaction advisory consultant values the hotel right before the COVID-19 pandemic. However, as happens with big-ticket transactions, the sale is delayed. The hotel is revalued after the first wave of COVID-19 subsides. The valuation is substantially below the original estimates. The consultant contemplates the valuation two years later. The case is centred around valuing a commercial property asset in different market conditions using the discounted cash flow method. Students develop a cash flow pro forma on the basis of market information. The case exposes students to several nuances of pro forma development. Students are sensitised to the idea that valuation is about not just cash flows but also the perceived risk in cash flows. The perceived risks may result from investors' overreaction to market conditions and irrational sentiments. The discount rate, capitalisation rate, etc., must be revised carefully as the market cycles change.
The case, based on extensive interviews with top executives and two generations of Dachser family owners, documents the genesis and spectacular growth of the global logistics specialist, a group that now has close to 400 locations on all five continents and employs 30,000+ people. Despite its global footprint, Dachser stayed loyal to both its core business - intelligent logistics - and to Kempten, a picturesque town of 70,000+ inhabitants and the center of gravity for Dachser's operations and the place the Dachser family owners call home. Dachser received the IMD Global Family Business Award in 2019
This case explores a current but also enduring and widely relevant intersection of challenges facing managers who compete in rapidly evolving technology markets. In the landmark US$9 billion Google LLC v. Oracle America, Inc. case, Google LLC (Google) leads development of the now-ubiquitous Android mobile operating system, used by billions of people globally. However, many of the laws governing development were unclear, having been written before the technologies being developed were even imagined. Thus, Google must balance competitive risks with other risks, such as legal uncertainty.
This case explores a current but also enduring and widely relevant intersection of challenges facing managers who compete in rapidly evolving technology markets. In the landmark US$9 billion Google LLC v. Oracle America, Inc. case, Google LLC (Google) leads development of the now-ubiquitous Android mobile operating system, used by billions of people globally. However, many of the laws governing development were unclear, having been written before the technologies being developed were even imagined. Thus, Google must balance competitive risks with other risks, such as legal uncertainty.
In January 2020, Paddy Padmanathan, president and CEO of ACWA Power, was reflecting on the company's sixteen-year record of success and thinking about its future growth plans. Founded in 2004, ACWA Power was a Saudi Arabian developer, owner, and operator of power and water desalination plants, was thinking about the company's future. Over the past 16 years, ACWA Power had grown its footprint with 56 assets across 11 countries, with a combined value of over $45 billion. ACWA Power had been studying the prospects of a non-carbon fuel, green hydrogen. To date, no large-scale green hydrogen plant had been attempted, predominantly because it was too costly to produce. However, with green hydrogen production costs declining and increasing commitment from countries and companies to decarbonization, projections for the hydrogen market were optimistic though highly varied. Padmanathan believed that ACWA Power with its low-cost business model and track record would be able to deliver green hydrogen at a competitive price and was keen to embark on the world's first large-scale green hydrogen project. He saw several challenges, including ACWA Power's lack of experience working with industrial gases and finding an attractive project site. The project would require partners with complementary expertise, and ACWA Power would need to determine how to structure the relationships. Padmanathan was excited about the possibilities, but was the timing right? Would being a first mover outweigh the pioneering costs? If so, what would be the best way forward?
This note provides background information on a French law ("the Florange law") passed in 2014 that the French government said would encourage long-term shareholdings. The note describes the law, what led to it, the reactions it evoked, and similar initiatives in other European countries. The note also provides examples of what the application of the Florange law looked like in the real world and how companies and their shareholders were impacted by it.