The Tender case follows the journey of Miles Parker from his early days of joining an equipment financing company as a partner to the company's founder, through pivoting the company's product, and working with several different investors including high-net-worth individuals and private equity.
India headquartered Mahindra Group is a multibillion-dollar federation of companies operating across the globe. It is ahead of its time in articulating its purpose and mapping its values, something it had first done at inception and then refreshed yet again as 'Rise' in 2011. Over the past decade, it has cascaded the essence of 'Rise' as a purpose through the organization. The idea was to "challenge conventional thinking and innovatively use all their resources to drive positive change in the lives of stakeholders and communities across the world to enable them to Rise." As its senior leadership team contemplate Mahindra's future, they wonder how they should balance the 'Rise' philosophy with a focus on financial returns that is critical for the group, especially in the aftermath of the health and economic crisis triggered by the coronavirus pandemic and a leadership transition at the group.
This case describes the corporate turnaround of the Ford Motor Company under the charismatic leadership of Alan Mulally. Ford was in deep trouble in the early 2000s as its prices and debt ratings plummeted and employee morale suffered. In 2006, the company anticipated a loss of $17 billion. Ford's declining product quality and lackluster designs led to declining sales. Moreover, the company struggled with a dysfunctional, ego-driven corporate culture. External factors like rising oil prices and raw materials costs also posed problems. To address these widespread challenges, Bill Ford, then CEO of Ford and great-grandson of Henry Ford, recruited Alan Mulally from Boeing, who had turned around that company in the wake of the 9/11 attacks. Mulally developed and implemented an ambitious transformation of Ford; his plans included instituting accountability among senior executives using a data-driven approach that eventually trickled down to frontline employees and simplifying Ford's product line, portfolio of brands, and organizational structure. The sweeping restructuring and culture change allowed Ford to once again, become a profitable automaker.
In 2016, Peter Keith and his cofounders started Meuwly’s Ltd. (Meuwly's) as a subscription food-box service, and in 2018, they established a physical presence in one of the liveliest locations in downtown Edmonton, Alberta. The expansion diversified the company’s revenue streams, including retail, wholesale, special events, and subscription sales. The company strove to be sustainable, but faced a number of challenges. First, customers valued the sustainable, “eat-local” ethos of Meuwly’s locally sourced products but not its single-use product packaging, which failed to reflect the company's sustainability goals; Meuwly’s experimented with alternatives, but these compromised the product quality customers expected. Second, the company’s commitment to paying employees above minimum wage affected its profit margins and financial resources and constrained its availability to pursue sustainability initiatives. Third, misleading industry marketing pervaded the delicatessen market, compromising growth and pricing strategies. Finally, the local delicatessen market was saturated and very competitive. In November 2019, Keith faced important questions regarding the future direction of the company’s sustainability strategy: how could he design an appropriate stage-two sustainability strategy for Meuwly’s while retaining the company’s loyal customer base?
In May 2020, a senior business analyst at Workplace Safety Trainers (WST), a small business based in London, Ontario, was developing an initiative to increase efficiency in WST's shipping and logistics warehouse. The coronavirus pandemic had just started to shift the landscape of business, and WST had decided to procure and sell personal protective equipment through its online safety supply shop. After one month of unprecedented demand and round-the-clock efforts, orders had started to stabilize, and WST was considering implementing some investment initiatives to help the shipping and logistics team build out their shipping infrastructure. The senior business analyst needed to decide whether to invest in a developer to implement an e-commerce fulfillment platform, or invest in semi-automated sealing and labelling machines.
Kia Motors India (Kia) had tasted success in India within a year of the launch of its product Seltos. Kia's managing director and chief executive officer was quite happy with the sales figures for Seltos, the mid-sized sport utility vehicle (SUV) launched in August 2019, and was fairly confident that Kia's compact SUV Sonet would follow the same path. Kia's positioning strategies had worked very well thus far, and the company had been able to cultivate a brand image of a premium automaker whose products were considered aspirational. However, Kia's competitors seemed to have learned from Kia's success in realizing what worked for Indian consumers and were starting to launch new variants of existing models. In the face of this competitive onslaught and slowing economic growth in India, the chief executive officer had to formulate strategies that would keep Kia's growth trajectory on track. Could his understanding of the dynamics of the SUV segment in India enable him to frame effective positioning and growth strategies that would continue to work for Kia?
Homemaking had been a centuries-old industry that supplied a variety of services to customers, from more commoditized tasks such as cleaning and laundry to specialized tasks such as elderly care, and prenatal and postpartum care. In China, this industry had traditionally been fragmented and associated with limited innovation. Homeking At Home Information Technology Co., Ltd. (HAH), a company founded in 2010, set the goal of transforming China's home services industry in the digital age. Using an Internet-based operating model and a digital-first mindset, the company sought to reinvent homemaking, and grew from a startup into a leading player in the homemaking market in China. To sustain its success, the company needed to continually evolve.
A team of analysts at Nedbank Group (Nedbank) had generated a solution to an important client-centered issue, but the solution was not welcomed by the operations team. A business executive at Nedbank created an opportunity for the creative design team and operations team to collaborate. A solution was successfully implemented in 2019 and the executive and analysts' team leader were summoned to present their ideas at a business banking executive committee meeting to demonstrate how their initiatives supported the bank's strategic direction. Would the executive committee agree to invest capital in new ways of work to move the bank forward on its digital strategy?
In September 2019, the founder of a personal emergency response systems (PERS) company reached a pivotal point with her business. She had created the ORA device, a customized hardware and software product, intending to disrupt the growing PERS industry while helping to improve the lives of older adults and their caregivers. But while the product and the company received considerable positive feedback and publicity, sales had not met the founder's expectations. The founder brought plenty of experience, skills, and innovation to her business, and also identified an important new market segment for her product. Still, she was aware that technology start-ups were notoriously challenging to start, grow, and maintain. The founder felt that she had reached the end of the line for her business and had to make a decision about its future. She had to identify opportunities and threats in the market and determine if the company had a sustainable competitive advantage. She also had to decide whether to focus entirely on the new segment she identified or make a new strategic move and raise another round of funding for growth. Alternatively, she wondered if she should instead sell the technology, or the entire company, and resume her executive position in the financial industry.
In 2019, the head of leadership development for Anglo American plc (Anglo American), a global mining conglomerate, was reviewing the two years she had been working with the human resources (HR) leadership team to establish the company's international Leadership Academy. Her task was to determine leadership development solutions that supported Anglo American's strategy and to recommend how to resource, identify, develop, and retain the diverse talent pool required to achieve the company's business objectives. She had gone to great lengths to ensure the Leadership Academy's offerings underpinned the organization's strategic imperatives. She now pondered how to assess the impact of the Learning Academy. Was the human resources leadership team looking at and measuring the right things?
Imperfect Foods is a grocery delivery company providing lower-cost items that may have aesthetic shortcomings and would typically be discarded. Despite its laudable anti-waste goals, Imperfect Foods has received significant pushback from the sustainability community. Critics are concerned that the for-profit organization is diluting its goal of reducing food waste by incentivizing overproduction. The director of public affairs for the company must soon deliver a communications strategy to Imperfect Foods' executive team that addresses critics' claims that the company is harming the environment by commoditizing "ugly" foods and working closely with industrialized farms that can profit from overproduction. The case presents a robust opportunity for students to debate whether or not a private company can focus on purpose and profit simultaneously.
Focal Systems, with fresh new Series B funding and more new orders than it could handle, believed its novel out-of-stock detection system would prove the sweet spot in the automation of traditional brick and mortar retail stores. Small cameras on store shelves could automatically log any products in need of resupply, but also order the items to restock, saving store managers valuable time each day. Stores would see lower labor costs but also would benefit from a more efficient resupply system. The competition for automation in retail was stiff, and becoming more intense. How could Focal convince retailers to give its innovative technology a try-and could the company fend off the competition?
This case explores the major considerations involved when choosing the most suitable listing market. In August 2020, Shanghai Lujiazui International Financial Asset Exchange Co Ltd, better known as Lufax, filed a confidential application to the US Securities and Exchange Commission for initial public offering in August 2020. The news stirred up heated discussions in the market, as Lufax was obviously of Chinese background. US-Sino relations had been experiencing more and more tensions. Even the US securities regulations had turned against US-listed Chinese firms. Amid this backdrop, is the US market the right choice for Lufax to go for an IPO? The market wonders if Lufax made a wise choice on the listing venue. The case seeks to highlight the considerations of Lufax in deciding on a jurisdiction to be listed in. Every venue has its own listing requirements and should fit differently for firms with different intentions and characteristics. Through the case, students will grapple with the step-by-step practical questions concerning the comprehensive list of considerations for choosing the suitable listing market and conduct an analysis of the suitability of the US market as Lufax' listing choice, compared to the market in Hong Kong and mainland China.
Etsy, the online seller of handmade goods, was founded in 2005 on an almost utopian ideal-a responsible, caring company that offered individual crafters a place to sell their wares, a wholesome alternative to companies that sold mass-manufactured products. The company grew substantially-though unprofitably-under the freewheeling leadership of two early CEOs. In 2015, Etsy went public and was forced into a new arena, beholden to new stakeholders who demanded financial success and accountability. Unable to contain costs, the company teetered on the precipice of being bought out by private equity firms. In came a new leader-Josh Silverman-with a mission: to save the company financially and, in the process, save its soul. This case examines the strategic, financial, organizational, and purpose-driven turnaround Silverman and his team led at Etsy. The turnaround not only greatly bolstered Etsy's finances, but also improved its social and environmental impact and helped the organization truly live up to its ideals. This case examines the circumstances that led Etsy to require a turnaround, how the turnaround was executed, and what challenges still remain.
This case explores the competitive war between Snap, Facebook, and TikTok in 2021. The strategic focus is on Snapchat: how should it respond to the emergence of TikTok, and how should it compete with the dominant competitor in its space - Facebook. The case examines the history of Snap, its emerging threat from TikTok, and its on-going struggles to become profitable in the shadow of intense competition from Facebook, and especially Instagram. Looking at strategy from the perspective of Snap CEO, Evan Spiegel, the case asks whether Snap should seek new demographics to grow the user base, explore alternative business models such as WeChat, differentiate itself with augmented reality, or focus on privacy to distinguish itself from the competition. The context of these strategic choices is how do you win in a world with strong network effects and much larger competitors.
On February 20, 2020, the executive vice-president and chief financial officer of Input Capital Corporation, the first agricultural commodity streaming company in Canada, was reviewing a capital stream contract that one of his associates had prepared for Sustainable Farms Inc. and submitted for his approval. One important consideration was the rate of return expected from the contract and the risks involved. The executive called a co-op student to his office and assigned her the task of calculating the internal rate of return, or effective yield, on this capital stream contract. He also hinted at an alternative way to assess the profitability of the contract, which was to estimate the contract's mark-to-market value.
In mid-2020, Uber Technologies, Inc. (Uber) acquired Latin American-based mobile application Cornershop, which delivered online grocery purchases to the consumer's home. The operation involved technology firms based on multisided platforms. Uber, which focused on the intermediation of passenger transport, had expanded to businesses such Uber Eats for the delivery of restaurant meals, while Cornershop's focus was the purchase and delivery of supermarket products. Recently, Walmart had attempted to acquire Cornershop, but Mexico's antitrust authorities would not authorize the acquisition. Uber's acquisition of Cornershop involved important managerial challenges. What were the main sources of value? Should the two companies be managed separately or as joint units? Would Walmart have been a better fit for Cornershop? What was the best strategy to grow in this multisided business space?
Xiaomi India Private Limited (Xiaomi India), a subsidiary of the Chinese smart phone company Xiaomi Corporation, controlled a major share in the Indian market. However, its dominance was threatened by geopolitical tensions between India and China. The two countries shared a 4,000 kilometre border and a history of dispute over the border's actual demarcation. Tensions brewing over the international border during early 2020 precipitated an armed clash between Indian and Chinese troops at one border post that resulted in the death of 20 Indian soldiers. In response, the Indian government issued orders for companies to declare the identity of products made in China, with a preference for products made in India. A consumer boycott of Chinese products was also posing a threat to the Xiaomi brand's market leadership position, while competitors saw an opportunity to expand their market share. How could Xiaomi India overcome the current negative environment and prepare for similar potential conflicts in the future?