E-commerce and the pandemic have disrupted brick-and-mortar retail, but new research shows an opportunity for culturally rich brands to leverage in-person shopping to build loyalty. When it comes to items like high-end watches, wine, and designer clothes, customers still want shops where they can immerse themselves in a brand's culture and learn more from knowledgeable employees. The authors discuss winners and losers in traditional retail and how stores might transform to meet customer needs.
An important decision in starting a business is the choice of legal entity. This case provides a realistic, yet stylized, setting to facilitate a discussion of factors to consider in the entity choice decision, emphasizing legal and tax issues. Two MBA graduates have raised $5.2 million in equity from a small group of investors to buy a company. Upon deciding to buy assets from another company to start their business venture, they must determine the legal entity that best meets the needs of management and the investors. There are three alternative versions of this case, with the only difference being the allocation of profits to the investors. In this B case, the allocations of profits are not allowed for an S corporation given the restriction limiting the entity to one class of stock. This B case provides for a non-pro rata allocation of profits, which equates to management receiving a 20% profit (i.e., carried) interest.
An important decision in starting a business is the choice of legal entity. This case provides a realistic, yet stylized, setting to facilitate a discussion of factors to consider in the entity choice decision, emphasizing legal and tax issues. Two MBA graduates have raised $5.2 million in equity from a small group of investors to buy a company. Upon deciding to buy assets from another company to start their business venture, they must determine the legal entity that best meets the needs of management and the investors. There are three alternative versions of this case, with the only difference being the allocation of profits to the investors. In this C case, the allocations of profits are not allowed for an S corporation given the restriction limiting the entity to one class of stock. This C case provides for a 10% guaranteed return (i.e., hurdle rate) before the non-pro rata allocation of profits interests.
This case examines the role of beta and volatility in assessing the risk of a portfolio. Students assume the role of a fund manager who is adjusting their portfolio in response to the 2014 reconstitution of the fund's benchmark-the Russell 2000 index. The manager chooses between two stocks recently added to the index (and correspondingly to the manager's investment universe): First Citizens Bancshares, Incorporated, and Innoviva, Inc. Under the assumption that the manager's assessment of the future performance of both stocks is similar, students have to determine which stock will increase the risk of the portfolio more. Students are tasked with calculating the beta and standard deviation for the stocks individually and as part of the manager's portfolio, and then choosing which stock to add to the portfolio. The case also introduces the concepts of benchmarking and the construction and rebalancing of market indices.
Alphabet Inc.'s Google LLC (Google) purchased Fitbit Inc. (Fitbit) in November 2019 for US$2.1 billion, marking its foray into health care, and by January 2021, the US Department of Justice was conducting a probe into the Google-Fitbit merger amid Fitbit users' skepticism and distrust of the deal with regard to data privacy. Although Google's senior vice-president of devices and services assured users that the intent of the deal was to "spur innovation in wearables" and not to sell personal information or use Fitbit's health and wellness data for Google Ads, Fitbit users remained concerned regarding Google's access to incredible amounts of personal data. While the acquisition would help Google address its hardware failures of the past, gain an edge in software through an instant foothold in the growing smartwatch market, and integrate Fitbit's smartwatches more deeply with Android, the larger goal was more likely maximizing Fitbit's business-to-business (B2B) partnerships with "health insurance companies and direct corporate wellness programming." What strategies should Google use to leverage Fitbit's hardware strengths, B2B partnerships, and technical expertise? What steps should Google take to assuage data privacy concerns to become a serious contender in the smartwatch and health care markets and to realize its goal of revolutionizing digital health care? Did Fitbit stand to benefit from the deal?
The Sagrada FamÃlia was one of Barcelona's most popular tourist attractions. Designed by famed architect Antoni GaudÃ, the as-yet unfinished basilica was set to be completed in 2026. Initiated in 1882, the basilica was one of the longest-running architectural projects ever undertaken, and its construction had faced both opportunities and challenges over the years, with obstacles such as inadequate funding, a change in leading architects, and no firm deadline in place. The most recent obstacle to the completion of the basilica's construction was the COVID-19 pandemic, which had cast uncertainty over when construction would resume. Despite the focus on the Sagrada FamÃlia's completion, there was potential for tension between the artistic process and traditional project management practices. The current construction team had to determine how to proceed with the project to ensure its long-term recognition while also honouring GaudÃ's legacy.
In January 2020, Bombay Shaving Company had established an in-house digital team that was able to achieve the best digital marketing key performance indicators in its industry. BSC's marketing strategy focused on conversion rates, influencer marketing, heatmaps, A/B testing, keyword cloud analysis, and emailer marketing. In using these tools, BSC was carving out a differentiated strategy for each step of the customer journey, including customer acquisition and customer retention. However, analysis of online purchase data had indicated that out of every thousand customers who visited the company's website, only 13 ended up making a purchase. BSC had to address its poor conversion rate and determine how to ensure that its conversion rate would meet the industry standard.
In July 2016, Community Sponsorship Organization opened a retail outlet in Kochi, Kerala, India, called Aditya-The Solar Shop, which sold energy-saving and solar-powered products. The shop was opened with the support of the Indian government's Ministry of New and Renewable Energy for a limited period of two years. After that time, the shop would have to find its own means for sustainability. The shop helped support the local community by operating as a commercial business. However, Aditya-The Solar Shop was facing several business operation challenges, including reaching an agreement with manufacturers of solar systems on quota allocation, increasing sales at the shop, and determining how to provide after-sales support to customers.
This negotiating exercise is set at the time of the 2020 round of collective bargaining between the National Football League (NFL) owners and representatives from the NFL Players Association. The six parties at the bargaining table (three representatives on each side) have interests-both conflicting and compatible-regarding the preferred ultimate outcomes as well as a strained previous relationship, which serves to complicate the bargaining process.
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.
Amazon's failed bid for a second headquarters location ("HQ2") in Long Island City, New York offers many lessons for negotiators looking to avoid similar high-profile defeats in strategically important deals. The company's project - which promised to bring billions of dollars in net new tax revenue and thousands of jobs to the city - initially enjoyed widespread support on the ground, alongside vocal advocacy from political elites at the state and local level. But after the proposal was announced, a relatively small cohort of passionate opponents organized to pressure a key set of lawmakers into opposing the deal, ultimately leading the company to withdraw its offer. Amazon's HQ2 derailment at the hands of these well-organized activists, and its failure to mobilize its broad base of support in useful ways, mark a striking example of the potential pitfalls dealmakers face when negotiating large-scale projects in the public eye.
In January 2020, Bombay Shaving Company had established an in-house digital team that was able to achieve the best digital marketing key performance indicators in its industry. BSC’s marketing strategy focused on conversion rates, influencer marketing, heatmaps, A/B testing, keyword cloud analysis, and emailer marketing. In using these tools, BSC was carving out a differentiated strategy for each step of the customer journey, including customer acquisition and customer retention. However, analysis of online purchase data had indicated that out of every thousand customers who visited the company’s website, only 13 ended up making a purchase. BSC had to address its poor conversion rate and determine how to ensure that its conversion rate would meet the industry standard.