Totgars' Co-operative Sale Society (TSS) is an arecanut marketing co-operative headquartered at Sirsi in Uttara Kannada (UK) district of Karnataka, India. As on March 31, 2019, it had more than 30,000 members (including both primary agricultural co-operative societies (PACS) and individuals), total turnover of ₹5047.87 million, and net profit of ₹21.03 million. The primary objective of TSS is to undertake the marketing of the agricultural produce of its members. It has several other objectives that have direct or indirect bearing on the lives of arecanut growers in UK district. The key activities of TSS could be broadly classified into those which are directly related to arecanut marketing and the support services. Activities directly related to arecanut marketing include managing the sale yard in a regulated market, trading arecanut, manufacturing value-added products, and providing storage facilities. Support services include credit, agri-inputs, extension services, animal husbandry, rice milling, transport facilities, health services, consumer goods, and guest house. The business and service portfolio of TSS is highly diversified. The co-operative balances the interests of various stakeholders such as members, employees, traders, and state agencies. This case presents how TSS integrates various businesses and services to provide benefits to its member farmers, while creating value for other stakeholders. Several lessons can be drawn from the experience of TSS.
VA Tech Wabag, an Indian MNC firm was an industry leader in total water management. The case presents an alternative method of talent development that focuses on leveraging an individual's strengths against the practice of focusing on functional and behavioral competencies and develops training need analysis (TNA). This approach appears to be contrary to the ongoing deficit culture, which concentrates on weaknesses. The HR head of the organization resists the paradigm shift in the approach to capability development. The case addresses three principal issues. 1. Understanding the strengths-based approach to capability building 2. Clarifying the competency-based approach to talent management 3. Building leadership capabilities by understanding and leveraging individual strengths and appreciating the role of competencies in enabling success. All of this raises the question of the role of competency frameworks, the TNA approach's limitations, and synergizing both ideologies. Some specific questions raised by this case are: Is it possible to build capability by adopting either approach? What are the challenges of adopting strengths-based approach for recruitment? How can the organization leverage team strengths? Understanding these dichotomies can help L&D functions manage the best out of their talent and build effective leaders.
This case describes the rise of Mary Kay, the founder of the worldwide cosmetics company. As a young single mother, Mary Kay had to overcome many obstacles to start her business and guide it to success. Today, there are more than 3.5 million Mary Kay beauty consultants selling Mary Kay products in 36 countries. The company is still privately owned. Students will learn how Mary Kay navigated life's choices to leave a lasting impact on the world.
This case follows Christophe Weber, President and CEO of Takeda Pharmaceutical Company Limited, a leading pharmaceutical company headquartered in Tokyo, Japan, as Takeda considers acquiring Shire Plc, a biotech company based in Ireland. The acquisition would turn Takeda into a top ten global pharmaceutical company; however, other pharma companies were showing initial interest in acquiring Shire, and the acquisition would require a large amount of funding. Other concerns about the bid were nonfinancial. Over the last two decades, Takeda had aggressively pursued globalization and was now a global company with two thirds of revenue raised outside Japan and a diverse management team. What was the implication of acquiring Shire? Was now the right time to take such a big step? Was the acquisition in line with the company's goals? How would the combined company be managed? Would the acquisition put an end to Takeda as a Japanese company?
This case is a follow up to HBS Case No. 721-373, Takeda Pharmaceutical Company Limited (A). Following the events of the previous case, Takeda reached an agreement to acquire Ireland-based Shire Plc. The case follows some of the achievements and challenges Takeda and its employees face following the acquisition. It outlines the company's situation in 2019 and raises discussion about its future prospects.
Explores the tradeoffs between climate change action and economic development from the perspective of Greenland, a self-governing territory of Denmark. Greenland lacks autonomous decision-making authority in several key international fora, including the United Nations international climate negotiations. The Paris Agreement was a milestone in international climate negotiations, and an important step towards limiting global greenhouse gas emissions. Greenland, as part of wealthy Denmark, would be considered under the Paris Agreement obligations of the European Union and Denmark. The central conflict explored in this case is whether Greenland should participate in the Paris Agreement or request a territorial exclusion from Denmark. The Paris Agreement was widely accepted by the international community, with signatories ranging from the wealthiest nations to the least-developed nations. However, countries are not equally responsible for historical emissions. With a population of approximately 56,000 (90% indigenous Inuit), Greenland has contributed a negligible amount of historic emissions, but is experiencing disproportionate impacts from climate change, including rapid melting of its ice sheet. During the case, Greenland is in the process of nation building. Greenland's economy historically has been dependent on fisheries, but with climate change transforming the landscape, Greenland has an opportunity to pursue economic development by tapping into its abundant natural resources, including minerals, oil, and gas, or developing other sectors like tourism. This development is seen as the key to Greenland's economic growth and ultimate independence from Denmark. Many in Greenland's government are concerned that joining the Paris Agreement would limit Greenland's ability to achieve economic growth and independence. Others were in favor of participating in the Paris Agreement to demonstrate Greenland's active participation in global efforts against climate change.
Digital collaboration tools are designed to help people work together and learn from one another by facilitating knowledge sharing. But they also provide a window into who knows and does what in the organization. People who collaborate regularly and those who collaborate sporadically have different needs and require different types of tools.
Despite the important role that assumptions about intentions play in our judgments of others' actions and how we respond to these actions, most of us haven't thought much about the accuracy of the inferences we make, the ways our decisions about "what he meant to do" or "why she did that" might be unintentionally biased, or the potential negative effects that result when inferences about intentions affect how we judge a behavior. Nor have we thought about steps we might take to question or correct our initial inferences, or whether we should aim to set aside inferences altogether in judging and determining the consequences of a behavior. The goal of this note is to help you think about exactly these things.
In 2000, Eaton Corporation was a broadly diversified industrial conglomerate. But its strategy was evolving and its focus was narrowing around "power management" and more recently on "intelligent power," the use of digitally enabled products and services designed to enhance efficiency and reliability. To implement this transition, Eaton had acquired more than 70 companies and divested another 50. Such active portfolio management required Eaton to regularly assess the prospects of each business unit-the profit and growth potential-and to explore opportunities to enhance its capabilities through acquisitions. In January 2020, Eaton got an offer from Danfoss, a Danish conglomerate, to buy its hydraulics business for $3.3 billion. Recently appointed CEO Craig Arnold must decide whether this deal makes sense strategically and financially. In particular, he must decide if $3.3 billion is a fair price for the firm's hydraulics business. This abridged version is shorter than the original version (HBS Case #221-006) and does not contain the appendix that explains and derives the formulas for the WACC using the capital asset pricing model (CAPM).
In April 2020, Alisha Moopen, Deputy Managing Director of Aster DM Healthcare, a network of clinics, hospitals, and pharmacies in the Middle East and India, must create her company's budget for the 2021 fiscal year in light of the onset of Covid-19. The pandemic had forced Aster to indefinitely cancel elective procedures, which represented 70% of the company's revenue. Meanwhile, materials costs increased as the Aster team had to procure enough personal protective equipment (PPE) to keep frontline staff safe from the virus, even as revenue from clinics and pharmacies declined. To offset the impact of the pandemic, Alisha and her team must decide whether to implement austerity measures, such as temporary salary decreases, whether to request temporary rent reductions from their landlords, and whether to renegotiate their debt covenants with their lenders. They must also decide what assumptions they can make about revenue: when elective procedures will resume, whether their new telehealth practice will gain traction, and when clinic and pharmacy revenue will recover.
Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 1 offers a summary of different types of financial information and their providers, focusing on information that is issued publicly. Financial information is essential for an organization to operate efficiently. Various people use an organization's financial information, such as tax authorities, lenders, and suppliers. The information requirements of users are typically met by an organization's financial information system and disclosures in income statements, balance sheets, and cash flow statements. Several examples are given of financial information from large companies. Types of financial information are also discussed that are specifically meant for those inside the company and are not available publicly. Financial information is needed by those running a business and is vital for effective management.
Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 2 introduces three main financial statements: income statements, balance sheets, and cash statements. Income statements show the profit for a specific financial period; balance sheets provide information about the assets and liabilities of an organization at the end of the financial period; cash statements reveal the money coming in and going out during the financial period. These statements are typically in an organization's annual report. This chapter will discuss how to find key figures in financial statements and learn about the company's financial position and performance. Trend analysis, vertical analysis, and comparative analysis are all explored. For-profit organizations are the focus of this chapter, and several examples are given that show how to calculate ratios in order to analyze financial success or failure. The principles in this chapter can be applied to all types and sizes of organizations.
Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 3 builds on the previous chapter, going into greater detail about analysis of financial statements. Examples of financial statements from three companies in three different countries are offered. These examples show how to look at complex financial statements and find the figures needed to conduct an analysis. This chapter focuses on analyzing a company's profitability, liquidity, efficiency, and control of cash. How to conduct a sophisticated analysis is then explained. Calculating and analyzing ratios is discussed. To analyze ratios, comparisons are needed, which can be from the company's previous financial statements or statements from other companies; these ratios are useful in understanding an organization's financial performance and standing. Limitations of ratio analysis are also discussed.
Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. This chapter discusses how information available to managers is essential for business success as it can help them make informed decisions, explore problems, set performance targets, and complete their management responsibilities. Managers are specifically interested in the costs of activities and decisions, such as operating machinery or selecting different working methods. This chapter explains what cost and management accounting are and explores various types of cost, specifically direct, indirect, fixed, and variable costs. How costs relate to the service sector and the manufacturing sector is also discussed. This chapter focuses on different types of costing to ensure an organization's efficiency, such as process costing, full costing, and standard costing. Explanations and examples are given for each.
Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Building off of the previous chapter, this chapter shows how to choose the costing methods that would be most helpful to find the financial information needed. Various methods and techniques are explained; however, businesses should be careful to select which ones would be the most helpful and tailor those techniques to meet the business's needs rather than trying to change the business to fit a specific method. Before determining what information is needed, it has to be decided where the business is going. This chapter explores business objectives, planned profit, sales objectives, and cost strategies. Every organization should have a business plan that is expressed in financial terms as well as a form of record keeping to measure success or failure in meeting the plan. Several costing methods are given that may be helpful; which to choose depends on a company's size and industry type. Two major financial approaches-activity-based and total quality management-are also discussed with the focus on the aspect of accounting.
Financial information can be difficult to interpret, but for those who are responsible for an organization's activities, it can also be very beneficial. Written for business owners and managers, this book looks at various types of organizations that produce financial information and how to use that information effectively. Information that is publicly available for large organizations is discussed as well as how to select and analyze the numbers for decision making. Detailed management accounting information is available for managers specifically to help them make well-informed decisions, investigate problems, and set performance targets. Newer issues are explored as well, including having resources to stay in business and environmental concerns with the organization's activities. Chapter 6 goes beyond looking at just financial performance and takes a broader view of a company's activities. This chapter starts by exploring Management Discussion and Analysis sections in annual reports, the growing amount of data available to companies, and how companies can use data analytics to improve decision making. Key performance indicators (KPIs) can help organizations measure performance and explain publicly available information. This chapter also discusses the potential expansion of information made available to shareholders, sustainability accounting, and integrated financial reporting. Typically, only large organizations give information on sustainability and integrate their financial reports; however, this information is of interest to investors as well as a growing number of consumers.