This case revolves around a private hospital in Hong Kong. The hospital suffered a huge net loss during the preceding fiscal year, and the board of directors would like to improve cost management. Dr. Harris Pang, a prominent endocrinologist in the hospital, was appointed to review the existing costing model and to pinpoint opportunities for cost reduction. The case commences with an introduction of the "dual-track" system of the Hong Kong healthcare financial model. It then provides a brief background explanation of the hospital through four lenses: positioning strategy, organizational culture, financial structure and management, and the existing costing. The background information is intended to instill a key message: While the hospital focused on the value of operational excellence and patient-centered care, it failed to capture such value from patients due to inaccurate cost information. While considering the aforementioned case background, Dr. Pang began to design an alternative costing model that would improve the accuracy of cost information. He proposed adopting activity-based costing (ABC). Various costing systems have different results in terms of accuracy and administrative efficiencies. Based on the explanation of the costing methodologies, students are required to (1) compare the individual patient costs of different clinical considerations through the original and proposed costing models, (2) propose potential areas of application, and (3) acknowledge the embedded limitations.
Many of the world's most valuable brands are global in scope. They benefit from shared meanings, systems, and stories across markets, and much of their allure for consumers lies in their "global-ness." Creating value from global brands requires successfully managing many issues related to the demand side and supply side economics of global branding, the management of global brands, and the mobilization of organizations around global brands. This note explores these issues and highlight key opportunities and challenges in the future of global branding. It will outline the conditions under which a global branding strategy is preferred to a local branding strategy and those under which glocalization (global brands that have some level of local customization) are warranted.
When seasoned entrepreneur Glen Tullman founded the chronic health care startup Livongo in 2014, it was personal. His son lived with diabetes, and Tullman knew firsthand how taxing it could be to manage such an unrelenting disease. Livongo set out to empower people with chronic conditions to take control of their health through better behaviors, and in the process save money for themselves, their employers, and healthcare providers. In the years to follow, he and a motivated team of technologists and medical professionals built a purpose-driven organization that in turn created an easy-to-use mobile experience that was medically sound to deliver on that promise. "Members" (the individuals Livongo served) loved the product, and by 2020, Livongo had contracted to provide its services to nearly a third of the Fortune 500, and the company was doubling in size annually and went public. But as Livongo grew, leadership recognized that Members also needed virtual access to medical professionals, or telehealth. After an intensive search, the company confronted a major new opportunity: whether to merge with telehealth behemoth Teladoc, with the prospect of becoming one of the largest digital health companies in history. But despite the strategic appeal, Livongo and Teladoc were very different companies. This divergence raised important questions for Tullman and Livongo's leadership: could Livongo live up to its potential, and retain its distinctive and passionate culture, if it joined with Teladoc?
Since its inception in 1994, Sterlite Copper (Sterlite), a subsidiary of UK-based mining and metals conglomerate Vedanta Resources plc, had encountered many controversies. Sterlite’s difficulties included accusations of manipulative compliance practices, legal issues arising out of land acquisition, gas leaks, and the depletion of the environment around its plant in Thoothukudi (also known as Tuticorin) in the Indian state of Tamil Nadu. Sterlite planned to expand and double its copper production, but various stakeholders raised concerns regarding alleged misconduct by the company and the adverse impact of its actions on the lives of the community surrounding the plant.<br><br>In May 2018, these agitations took a violent turn. The public protest led to the death of 13 citizens, and the events attracted negative media exposure. As Sterlite awaited Madras High Court’s ruling which was due in August 2020, the possibility of the plant’s permanent closure seemed likely.<br><br>While Sterlite Copper had been an organization of national importance, contributing to the GDP and creating employment, it suffered from adverse community opinion of allegedly being unethical while remaining in the realm of legality. The entire incident had Sterlite fighting more for its image than its environmental and legal positions. What had gone wrong for Sterlite by August 2020?
At the beginning of 2021, TikTok was facing multiple market threats and had to decide what strategies to implement to manage them. TikTok was the world’s largest short-video platform, with users in 155 countries. But along with great success in entering numerous geographic markets, TikTok faced various geopolitical pressures, mainly concerning the company’s origins in China. The company had to consider how it could survive emerging geopolitical pressures, manage competitive threats from global technology giants as well as platform envelopment threats, and capitalize on its creative and somewhat addictive platform to expand its reach into new promising markets such as the African continent.
Since its inception in 1994, Sterlite Copper (Sterlite), a subsidiary of UK-based mining and metals conglomerate Vedanta Resources plc, had encountered many controversies. Sterlite's difficulties included accusations of manipulative compliance practices, legal issues arising out of land acquisition, gas leaks, and the depletion of the environment around its plant in Thoothukudi (also known as Tuticorin) in the Indian state of Tamil Nadu. Sterlite planned to expand and double its copper production, but various stakeholders raised concerns regarding alleged misconduct by the company and the adverse impact of its actions on the lives of the community surrounding the plant.<br><br>In May 2018, these agitations took a violent turn. The public protest led to the death of 13 citizens, and the events attracted negative media exposure. As Sterlite awaited Madras High Court's ruling which was due in August 2020, the possibility of the plant's permanent closure seemed likely.<br><br>While Sterlite Copper had been an organization of national importance, contributing to the GDP and creating employment, it suffered from adverse community opinion of allegedly being unethical while remaining in the realm of legality. The entire incident had Sterlite fighting more for its image than its environmental and legal positions. What had gone wrong for Sterlite by August 2020?
An actuarial intern at World Reinsurance Company was casually checking his e-mail and noticed that he had received a request from his manager to develop a quote for an upcoming request for proposal from one of World Reinsurance Company's larger clients, Ontario Life. The request for proposal would have to contain a quote for an excess-of-loss policy to reinsure Ontario Life's 10-year-term life insurance policy, consisting of 100 high-risk policyholders, for retention limits over CA$250,000 on a per-loss basis. The quote was to be submitted for review by the end of the day, so the intern had to get started on it immediately.
In 2016, US firm Aerojet Rocketdyne Holdings, Inc. (Aerojet) had been developing and manufacturing propulsion systems for rockets and armaments for long-range weapons systems for over 70 years. It also owned 4,634 hectares of land and an investment portfolio worth more than its stock's market capitalization-but it had a large amount of debt and an underfunded pension plan. Aerojet's stock had fallen over 30 per cent to US$16.30 under new executive leadership, and a hedge fund manager at Royal Capital Management LLC had to decide whether to wait for Aerojet to take off. After valuing the firm's various assets, he concluded the stock was worth $35 based on the sum of the parts, but he needed to consider some of the parts, including its significant debt and a pension plan underfunded by $637 million, which were still cause for concern.
Few concepts are as important as maturity transformation for understanding financial crises. This technical note guides students through the key mechanisms in the theory using a representative investor, a long-term borrower, and an issuer of shorter-term claims. It then highlights the pervasiveness of maturity transformation in modern financial products. It works well before classes on deposit insurance, bank regulation, the 2008 financial crisis, and/or shadow banking generally.
What is monetary policy and what is the Federal Reserve's (Fed's) role in determining monetary policy in the United States? How are changes in monetary policy implemented and how do these changes affect firms, households, and other stakeholders? This technical note addresses these questions by outlining the Fed's legal mandate, the tools at its disposal to achieve that mandate, and the mechanisms through which the Fed's policy choices affect macroeconomic outcomes. This note is designed to follow a sequence on the IS/LM-AD/AS model of the macroeconomy (e.g., as presented in UVA-GEM-0125, UVA-GEM-0126, and UVA-GEM-0127). In particular, students are expected to approach this note with prior exposure to a formalization of an economy's potential level of output and how changes in the money supply affect GDP, employment, and the price level. This note expands on prior technical material by distinguishing between the monetary base and the money supply (and hence defining the money multiplier).
Digital technology can improve the in-store customer experience and it can give retailers more data on shoppers' preferences and habits. Some early adopters of the "frictionless store" seek to integrate online operations with physical stores, while others are focused on making shopping quick and easy for consumers while gathering plenty of data on their buying habits. This article provides an overview of the current landscape and guidance for retail executives considering their in-store tech strategy.
Set in 2021, this case describes the Certis Group's transformation journey from a traditional physical guarding service provider to an advanced provider of integrated operations technology services for security, facilities, visitor management, and other types of monitoring related businesses. Certis started in 1958 as a Singapore government unit for auxiliary police, and restructured into a private commercial entity in 2005. They grew to a US$1.1 billion multinational with an overseas presence in six countries and territories, while leading their home market. Their digital transformation was enabled by a platform created for orchestrating Internet-of-Things sensor streams with Artificial Intelligence-enabled analytics, centralized command and control, and workforce coordination and communication. This new "Security+" approach to delivery made it possible for Certis to scale beyond prior limits, integrate across multiple service lines, and offer new types of services. They began rolling out Security+ solutions in 2018 starting with Singapore's iconic Jewel Changi Airport, a 10-storey megamall, and expanded to other large multi-use facilities and industrial zones. Paul Chong, President and Group CEO since 2004 was keenly aware that competitors saw the success Certis was having with its digital transformation and platform-based approach. What could be their path forward for developing their next generation of delivery capabilities to drive further growth locally and overseas?
In February 2021, the owner of Anwal Gas Traders, a liquefied petroleum gas distribution company based in Sakesar, Khushab District, in the province of Punjab, Pakistan, was considering whether to invest in expansion. It would be the first significant expansion for the company since its founding in 1998. Based on data provided by a consultancy firm performing capital budgeting techniques, the company would integrate backward to take advantage of perceived market potential. The owner needed to determine whether this investment was worth making and how various scenarios would affect his decision.
By June 2020, the entrepreneurial, client-focused funeral home company Families First Funeral Homes & Tribute Centre (Families First) had expanded to four branches in the Windsor-Essex region of Ontario, Canada. Families First had served families across the region for nearly 25 years as it manoeuvred through the information era and dealt with changing dynamics in the funeral services industry; changing regional demographics; cultural elements; and the needs of its different stakeholders, including people planning their own future funerals and bereaved family and friends planning final goodbyes for their loved ones. The company recognized the need to enhance its technology, particularly in light of the changes brought about by the COVID-19 pandemic, which had heightened the need for greater technological features in the funeral services industry. Now, Families First had to consider how to continue providing value to customers and develop a strong customer management and communication plan with the use of technology, incorporating advanced technological features into its customer relationship and growth strategy.
WeWork, a fast-growing but unprofitable real estate firm headquartered in New York, which leased shared office space around the world, announced in September 2019 that it was cancelling its plans for an initial public offering (IPO). In late 2020, as the company weathered the effects of the COVID-19 pandemic, several special purpose acquisition companies (SPACs) approached WeWork, offering an increasingly popular alternative method for the company's shares to become publicly traded. In January 2021, WeWork's new chief executive officer (CEO) was considering an offer from BowX Acquisition Corp., a "blank check" corporation. The CEO and the WeWork board needed to understand the benefits and disadvantages of a SPAC merger.
Dave Balter and Jim Myers co-founded Mylestone, a death tech startup that applied technology to transform how grieving people memorialize the dead. The startup addressed a cultural problem and promised to solve a pressing need in the antiquated, multi-billion dollar death industry. But despite a well-defined market and positive response to the idea, Mylestone made little headway in the funeral industry during its first eighteen months. In response to a series of obstacles, the company made a number of pivots. All startups pivot. But recent changes felt more fundamental. The company had moved away from its initial purpose, business model, and early team. Now, user demand suggested the startup should pivot again, away from death tech to produce custom photo books. The company had pivoted so much already that it barely resembled the venture they founded. Had they pivoted to an entirely new business? With each major change, the passion both founders felt when they started Mylestone waned. Did they want to continue leading the company in the new direction? Balter believed that the new direction would limit the startup's growth capacity and, to complicate matters further, Balter and Myers recently discovered a mutual interest in cryptocurrency. They started a side project in crypto trading that showed signs of taking off in a way Mylestone never would. If they harbored doubts about Mylestone, should they inform investors, close the company, and focus their energy on founding a venture based on their side project? What legal and ethical obligations did they have to Mylestone's investors and employees?