This case is one of a series of cases that examines corporate governance in Hong Kong using the financial crises of 2008 that engulfed CITIC Pacific (now CITIC Limited) as the study. The first case dealt with the mechanics of the foreign exchange hedging which caused considerable losses at the company. The present case examines the governance structures at the start of the crisis, and how such structures have changed up to the present. There has been considerable change of the leadership at CITIC and new financial governance committee structures have been formed in order to manage risk. The case poses the question of whether such changes will prevent future challenges when operational and financial risks arise from cross-border activities. Finally, the case considers the role of the regulatory bodies that formulate the rules by which such companies have to operate. The case considers whether the standards that govern the activities of companies in an industry are adhered to or are viewed merely as guidelines since all the competitors are pursuing the same activity.
As organizations plan for ways to bring remote employees back to the workplace, they should take advantage of the opportunity to rethink how and where work is best done, and how to combine the best aspects of remote and colocated work.
COVID-19 is driving a transformation in the ways we work, accelerating a shift to hybrid virtual and in-person models, and requiring a fundamental change in the skills team leaders need to succeed. Leaders will need to play four roles Conductor, Catalyst, Coach, and Champion as they adapt to managing a hybrid post-pandemic workforce.
During the Indian general election of 2019, the Nizamabad constituency in Telangana state found itself in an unprecedented situation with a record 185 candidates competing for one seat. Most of these candidates were local farmers who saw the election as a platform for raising awareness about local issues, particularly the perceived lack of government support for guaranteeing minimum support prices for their crops. More than 185 candidates had in fact contested elections from a single constituency in a handful of elections in the past. The Election Commission of India (ECI) had declared them to be "special elections" where it made exceptions to the original election schedule to accommodate the large number of candidates. However, in the 2019 general election, the ECI made no such exceptions, announcing instead that polling in Nizamabad would be conducted as per the original schedule and results would be declared at the same time as the rest of the country. This presented a unique and unexpected challenge for Rajat Kumar, the Telangana Chief Electoral Officer (CEO) and his team. How were they to conduct free and fair and elections within the mandated timeframe with the largest number of electronic voting machines (EVMs) ever deployed to address the will of 185 candidates in a constituency with 1.55 million voters from rural and semi-urban areas? Case A describes the electoral process followed by the world's largest democracy to guarantee free and fair elections. It concludes by posing several situational questions, the answers to which will determine whether the polls in Nizamabad are conducted successfully or not. Case B, which should be revealed after students have had a chance to deliberate on the challenges posed in Case A, describes the decisions and actions taken by Kumar and his team in preparation for the Nizamabad polls and the events that took place on election day and afterward.
During the Indian general election of 2019, the Nizamabad constituency in Telangana state found itself in an unprecedented situation with a record 185 candidates competing for one seat. Most of these candidates were local farmers who saw the election as a platform for raising awareness about local issues, particularly the perceived lack of government support for guaranteeing minimum support prices for their crops. More than 185 candidates had in fact contested elections from a single constituency in a handful of elections in the past. The Election Commission of India (ECI) had declared them to be "special elections" where it made exceptions to the original election schedule to accommodate the large number of candidates. However, in the 2019 general election, the ECI made no such exceptions, announcing instead that polling in Nizamabad would be conducted as per the original schedule and results would be declared at the same time as the rest of the country. This presented a unique and unexpected challenge for Rajat Kumar, the Telangana Chief Electoral Officer (CEO) and his team. How were they to conduct free and fair and elections within the mandated timeframe with the largest number of electronic voting machines (EVMs) ever deployed to address the will of 185 candidates in a constituency with 1.55 million voters from rural and semi-urban areas? Case A describes the electoral process followed by the world's largest democracy to guarantee free and fair elections. It concludes by posing several situational questions, the answers to which will determine whether the polls in Nizamabad are conducted successfully or not. Case B, which should be revealed after students have had a chance to deliberate on the challenges posed in Case A, describes the decisions and actions taken by Kumar and his team in preparation for the Nizamabad polls and the events that took place on election day and afterward.
Mihir is the head of the Disaster Management Department for the fictional coastal state of Udan, in South India. He receives a weather bulletin from the Indian Metrological Department (IMD) about "Ichko," a cyclone that has suddenly changed course and is set to make landfall in the southernmost district of Iramuk in the next 24 hours. Mihir's department typically received early warning of such events, making it possible to mobilize the oficial machinery to mitigate the damage caused by the cyclone through a series of measures before, during and after the cyclone. In this case, with very little time on hand, Mihir has to work with Kiran, the district collector of Iramuk, to handle the complex crisis that threatens loss of life and widespread damage. The situation is complicated by the urgent need to alert a large number of fishermen who are at sea and beyond the reach of any communication channels. On the ground, other issues at the community and political level are making for an explosive situation: What if the fishermen lose their lives, and the government is seen as not having done enough?
This case details the competitive and macroeconomic challenges that faced the automobile giant before and after the onset of the 2008 financial crisis-including continually rising commodity prices, looming declines in demand for its automobiles, high fixed costs, and the financial exposure that resulted from dependence on its financing division to remain profitable. Students are asked to analyze data (provided in a supplementary spreadsheet) to recommend what the best course of action for GM would have been in response to the approaching financial crisis.
In 2020, Mike Heyink and Maya Stewart, co-founders of the Pay-as-you-Go Solar company Yellow were considering how to grow their startup. They had achieved some success in their first market, Malawi, and had recently entered Uganda, where business was slower. What did they need to do to succeed in new markets? How could they continue to grow the business in Malawi?
Sonova, market leader for hearing aids, has rapidly grown through acquisitions of manufacturers and retailers while maintaining acquired brands. Recently launched digital solutions offer Sonova's products with new options but challenging to scale in light of multiple brands and diverse channel situation. Amplifon improves its position by selling own branded hearing aids connected with a proprietary digital platform. As the market moves towards digital, Amplifon seems to be better positioned since they can offer an end-to-end solution under one single brand. In the landscape of multiple product and channel brands and the fast-moving competitive environment, how should Sonova react?
Luckin Coffee Inc. (Luckin), an emerging growth firm that aimed to become the market leader in the coffee industry in China, had quickly grabbed market share by using freebies and discounts to entice cost-conscious Chinese consumers to try its products. Luckin sold its coffee and snacks through a proprietary mobile app, and customers either picked up their orders from strategically located stores or had them delivered. By the end of 2019, Luckin had served 40 million customers from its 4,500 stores. While the path to Luckin's goal was clear, investigations revealed that key executives and board members had allegedly defrauded investors by distorting revenue and expense figures and engaging in related-party transactions that channeled resources out of the company. The accounting scandal led to further investigations, penalties from Chinese regulators, and a drop in the company's share price and valuation, which went from $12 billion to below $1 billion within 11 months of listing. By August 2020, the company had been delisted from the Nasdaq exchange, its board composition had been changed, and it had been placed under the supervision of "light touch" provisional liquidators in the Cayman Islands. Was there a chance that Luckin could survive the scandal and its investors could recoup their funds? What could the company do to restore investor confidence and regain its path to becoming the market leader in the Chinese coffee industry? What were the implications of the accounting scandal to current and future listings on US stock exchanges?
China's strong collectivist culture may have helped it to become a manufacturing powerhouse, but the individualistic United States may have an edge in technology-driven innovation.
In 2018, the LEGO Group defined a new way of leading to enable the company to move more quickly, to make the right decisions, to deliver its mission and the commercial momentum that sustained it, and to shape the LEGO® culture in a positive way. This new way of leading would need to be modeled at the top of the organization. That was certain. But CEO, Niels Christiansen, and Chief People Officer, Loren Shuster, believed that the task of defining the new way of leading should not be done by the Executive Leadership Team or by HR. It should be developed bottom up. The LEGO Group was no longer the patriarchy it had once been under its founder, but Shuster saw that patriarchal assumptions about leadership lingered in its culture. If the LEGO Group was going to move towards a balanced system where leadership responsibility was more distributed and less hierarchical, it would be ironic to impose this top down. A better way to start would be to invite people from different levels and different functions of the organization to answer the question: What kind of leadership do we need in the LEGO Group and how can we embed the new way of leading into the fabric of the organization so that it can be self-generative? Case A describes the process that the LEGO Group used to create what they called The Leadership Playground and bring it to life in the company.
In 2018, the LEGO Group defined a new way of leading to enable the company to move more quickly, to make the right decisions, to deliver its mission and the commercial momentum that sustained it, and to shape the LEGO® culture in a positive way. This new way of leading would need to be modeled at the top of the organization. That was certain. But CEO, Niels Christiansen, and Chief People Officer, Loren Shuster, believed that the task of defining the new way of leading should not be done by the Executive Leadership Team or by HR. It should be developed bottom up. The LEGO Group was no longer the patriarchy it had once been under its founder, but Shuster saw that patriarchal assumptions about leadership lingered in its culture. If the LEGO Group was going to move towards a balanced system where leadership responsibility was more distributed and less hierarchical, it would be ironic to impose this top down. A better way to start would be to invite people from different levels and different functions of the organization to answer the question: What kind of leadership do we need in the LEGO Group and how can we embed the new way of leading into the fabric of the organization so that it can be self-generative? Case B describes how the LEGO Group brings the Leadership Playground to life in the company.
This case explores the audit considerations in relation to revenue arising from the operations of a cryptocurrency trading platform. The protagonist is Global Token Limited (Global Token or the Group, stock code: 8192.HK), which commenced its "blockchain technology-related business" segment in FY2018. In the year of commencement, the independent auditors issued a "qualified opinion" on the "commission and service income" recognized from the cryptocurrency trading platform (crypto exchange or cryptocurrency exchanges). In the following year, the auditors issued the same opinion on the same subject matter for the same reasons. Eventually, Global Token resolved to cease all blockchain-related operations during FY2020 owing to the alleged cost pressure. The case seeks to highlight the audit considerations at the stage of client acceptance and continuance. Through the case, students will grapple with the practical questions of how to identify the "assertions" in question, suggest the possible "what can go wrong(s)" (WCGWs) within Global Token's operating procedures, as well as what substantive procedures auditors could perform to obtain assurance in light of the assertions.
Managers - whether they realize it or not - have a profound influence over how people they work with think and feel. This article presents ten nonverbal behaviors managers should (or should not) be doing, the science behind them, and the tools to start modifying them. The ten topics covered are: avoiding micro-aggressions, liking and valuing others, building trust and consensus, listening, resting "cranky face," power, status, intelligence, deception, and how to leverage the "wisdom of the crowd" to better "read" others. Knowing these nonverbal strategies can potentially make managers more effective in their workplace.
While millennials appear motivated to support the evolution of stakeholder capitalism and solve challenging social problems via entrepreneurship, the challenges they face as business founders are also greater than those experienced by previous generations. Canadian start-ups can experience significant challenges when trying to secure financing, which is why some of our best and brightest entrepreneurs relocate to the United States. In Canada, there are three categories of business incorporation: charity, non-profit, and for-profit. Charities and non-profits are heavily reliant upon government grants, but they pay no taxes because they exist to contribute to society. Social enterprises are required to incorporate as for-profit ventures and so they pay the corporate tax rate. Now imagine a Canada with a fourth category of incorporation, one designed to give social enterprises the same tax benefits that are offered to charities and non-profits. This fourth “social enterprise” category could make our nation a tax haven for social entrepreneurship. Instead of pushing entrepreneurs away, Canada would attract top social entrepreneurial talent from the global talent pool. In addition, this simple policy adjustment has the potential to mitigate long-term fallout from pandemic measures that have left too many entrepreneurs struggling to survive.
In September 2020, Moovaz, a startup in the tech-enabled relocation space, was at a critical juncture in its evolution. In the three years since its founding, the company had established its business model, shown impressive growth in revenues, raised S$7 million in Series A funding and acquired a portfolio of established magazines in the form of The Finder. Junxian Lee, co-founder and CEO of Moovaz was optimistic about the prospects of the company going forward, despite the COVID-19 pandemic. However, there were a number of caveats to his optimism. Specifically, possible decline in demand if the world economy continues to struggle and challenges in raising the next round of funding in the face of uncertainty.