• Asocomun-Peacebuilders: Negotiating Resources for Social Projects. Confidential instructions for Peacebuilders International

    Asocomún and Peacebuilders are two organizations that have made an oral and informal agreement to present a joint proposal to the European Union (henceforth the EU) about coexistence incubators in schools. Peacebuilders has been working on the technical and economic proposal for the last month and despite having had several meetings with Asocomún, they never defined how to distribute the budget between the two organizations. Both organizations worked on the premise that it was very important to carry out the project due to its social scope and therefore the economic issues became secondary, assuming, moreover, that it would be easy to reach an agreement. This, however, was not the case.
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  • Asocomun-Peacebuilders: Negotiating Resources for Social Projects. Confidential instructions for Asocomun

    Asocomún and Peacebuilders are two organizations that have made an oral and informal agreement to present a joint proposal to the European Union (henceforth the EU) about coexistence incubators in schools. Peacebuilders has been working on the technical and economic proposal for the last month and despite having had several meetings with Asocomún, they never defined how to distribute the budget between the two organizations. Both organizations worked on the premise that it was very important to carry out the project due to its social scope and therefore the economic issues became secondary, assuming, moreover, that it would be easy to reach an agreement. This, however, was not the case.
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  • Boosting Business Value by Reducing COVID-19 Transmission Risk

    Given the continued risks to public health during the COVID-19 pandemic, boosting a company's risk-to-value proposition is both a financial and moral imperative. Companies that establish reputations for having safer locations will be rewarded by risk-averse clients. Leaders should keep in mind that the effectiveness of potential interventions will vary depending on their business's type of location.
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  • Blurring the Lines between Physical and Digital Spaces: Business Model Innovation in Retailing

    Traditional retail practices are under stress as retailers ponder various ways of setting up a sustainable omnichannel business model. A significant challenge in their endeavor relates to the blurring lines between physical and digital worlds. This article analyzes three retailers' exploratory efforts of alternative physical retail spaces. There are five key innovation areas to revamp for such a retail store: in-store technology, the role of sales associates, leveraging a mobile channel, data analytics, and collaborations. Moreover, physical retail space can serve as an aggregation hub that connects various retailer-customer interaction points across physical and digital spaces.
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  • Bridgestone: A Winning Channel Strategy for the Passenger Car Tire Business

    The Bridgestone case takes place in an increasingly tough landscape for the passenger car tire industry in Europe. Competitive pressure keeps increasing from Asian importers, the Retail channel is shrinking, end-consumers understand neither the product nor the development and technology behind it - they don't understand differences between brands and products and are not permeable to traditional marketing tools. Furthermore, the car market is aging and decreasing year after year. Bridgestone group is the world-leading tire manufacturer. In this thrilling and changing reality, several strategic decisions have to be made by the Bridgestone group in Spain in terms of where to invest (channel, product, brand, research, logistics etc.) and how to invest (price, advertising, consumer promotion, trade marketing). This case demonstrates the need to invest with an omnichannel mindset.
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  • Green Monday: How Should a Hong Kong Social Enterprise Explore the International Market?

    Green Monday began in 2012 in Hong Kong as a nonprofit organization advocating sustainability and a plant-based diet. After three years of consumer education, in 2015, the group set up a commercial branch, Green Common, as a retailer and wholesaler of plant-based groceries. In 2017, the group further diversified its business to set up an R&D company, which successfully formulated Asia's first plant-based minced meat, OmniPork, in April 2018. Two months later, it opened its first restaurant, Kind Kitchen. In November 2018, Green Monday Group officially launched in Singapore, its first international market, where it partners with a local distributor to sell plant-based products across the country. Currently, the Green Monday nonprofit movement is present in over 30 countries, while the Green Common commercial platform is available in 7 countries, with plans for China and the UK by the end of 2019. This growth was especially impressive in the pessimistic socioeconomic atmosphere in the second half of 2019, when both the local and global economy were doomed by political tensions. Green Monday Group is a "miracle" that performs strongly and surprisingly well in this negative climate. How does Green Monday Group commercialize a philanthropic idea with a sustainable business structure? What are the factors should it consider when it chooses its international market? What business model should it adopt in its overseas operations? How does it manage domestic and international supplier risk?
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  • Dilemma of More Dividends Now or Stronger Stock Later: What's Next for HSBC?

    This case explores the corporate finance issues arising from the suspension of HSBC Holdings plc's (HSBC, stock code: 5.HK) dividend payout in March 2020. Such abrupt change in pattern was immediately met with tremendous reverberation and discussion in the market. The case seeks to highlight the considerations of HSBC in deciding on a dividend policy, both from a corporate finance and behavioral finance perspective. Through the case, students will grapple with the practical questions of how a listed company should structure its dividend payout pattern. The pattern is structured in such a way to satisfy the operational and financial needs of itself while minimizing the negative impacts to shareholder relationships. There is a dilemma that a listed company's dividend policy, while constituting part of the current cost of capital, is a means to maintaining a stable share price and shareholder "clientele". As such, it is important for students to be aware when such dilemma arises, how to strike a healthy balance between satisfying the shareholders and adhering to Milton Friedman's "business of business is business" convention.
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  • Salt n Soap: Online Retailing of Food and Groceries

    In January 2020, the founder and chief executive officer (CEO) of Salt n Soap, an online retailer of food and groceries in Kolkata, India, was reviewing the company's strategy and business model. Salt n Soap had been in operation for six years, and now offered nearly 15,000 food and grocery (F&G) products of 1,000 distinct brands through its online retailing website. However, the Indian online F&G retail industry was highly competitive. Salt n Soap had a limited business footprint, mainly concentrated in Kolkata, India and unlike its competitors, it had not raised external equity funding. The CEO had to quickly reassess the current business model and strategy and prepare for the oncoming challenges from an increasingly competitive business environment. The decision had to be made before the end of the month so that any strategic changes could be implemented within the current financial year.
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  • General Electric: Turnaround Management Under Three Different CEOs

    In 2019, after one year in the position, H. Lawrence Culp Jr., the first outsider chief executive officer (CEO) of General Electric Company (GE) was faced with the task of gaining the stock market's faith in his ability to turn GE around. During the tenure of his two predecessors (from 2001 to 2018), GE's stock price had declined significantly, and investors were concerned. The new CEO introduced the lean management philosophy and restructured divisions like GE Power to enhance free cash flow (FCF), a key concern of GE investors. By October 2019, analysts believed that strategies taken by him were not enough to improve GE's stock market performance. Could he, as an outsider, prove to be a better CEO than the insiders had been? How should he manage GE's business units? How could he increase FCF and the market valuation of GE? Should he continue with lean management?
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  • BharatAgri: Strategy of an Indian Agritech Startup

    In June 2019, the cofounders of BharatAgri, an Indian agritech (agricultural technology)-focused entrepreneurial venture, were reviewing their strategy. BharatAgri leveraged information technology to provide crop-management related advisory services to Indian farmers and provided data analytics-driven decision dashboards to organizations that worked with farmers. They had onboarded nearly 6,000 Indian farmer-customers and had raised ₹40 million (INR) of venture capital funding to date. Their target was to onboard 20,000 farmers as paying customers by 2021. Could they also generate revenues by selling farm-management related data to agriculture-related organizations? In the next meeting, they were expected to present a comprehensive and cogent strategy to their financiers.
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  • 1928 Diagnostics: Fighting Antibiotics Resistance

    In 2019, the co-founders of the Swedish medical start-up 1928 Diagnostics, CEO Dr. Kristina Lagerstedt and COO Dr. Susanne Staaf, had to pick the right business model to commercialize their novel technology to hospitals and health care providers. Developed in partnership with research hospitals to help fight the global antibiotic resistance crisis, the firm's cloud-based technology platform helped partners identify resistant genes and mutations in bacteria more quickly and accurately, allowing for easier outbreak cluster tracking in support of hospital infection control management, as well as better diagnostics and antibiotic selection. By 2019, they had raised $5 million, employed 16 people, and had their tool deployed at 24 partner sites in 10 different countries. Their decisions on which markets to focus on and with which business model would crucially impact the young firm's chances at successfully converting existing users and attracting new clients.
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  • Sangu Delle

    By 2020, Sangu Delle (MBA 2016) has already made significant progress towards his life-long goal of solving Africa's myriad and diverse challenges. At 33 years old, he is the founder and chairman of the for-profit Golden Palm Investments Corporation, CEO of Africa Health Holdings Limited, author of a book on entrepreneurship in Africa, founder of a nonprofit (Cleanacwa) that brings improved fresh water infrastructure to African towns and villages, and serves in numerous other volunteer and trustee roles. He believes that he needs to work at scale and across national borders in order to solve the problems that he has identified, but he cannot help but wonder: are his efforts simply too big and too broad? Would it make more sense for him to focus on just one (or a few) industries, causes, or geographies, and perhaps grow from there? Could he reasonably expect to have meaningful impact by going for scale right away?
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  • General Electric: Turnaround Management Under Three Different CEOs

    In 2019, after one year in the position, H. Lawrence Culp Jr., the first outsider chief executive officer (CEO) of General Electric Company (GE) was faced with the task of gaining the stock market’s faith in his ability to turn GE around. During the tenure of his two predecessors (from 2001 to 2018), GE’s stock price had declined significantly, and investors were concerned. The new CEO introduced the lean management philosophy and restructured divisions like GE Power to enhance free cash flow (FCF), a key concern of GE investors. By October 2019, analysts believed that strategies taken by him were not enough to improve GE’s stock market performance. Could he, as an outsider, prove to be a better CEO than the insiders had been? How should he manage GE’s business units? How could he increase FCF and the market valuation of GE? Should he continue with lean management?
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  • BharatAgri: Strategy of an Indian Agritech Startup

    In June 2019, the cofounders of BharatAgri, an Indian agritech (agricultural technology)-focused entrepreneurial venture, were reviewing their strategy. BharatAgri leveraged information technology to provide crop-management related advisory services to Indian farmers and provided data analytics-driven decision dashboards to organizations that worked with farmers. They had onboarded nearly 6,000 Indian farmer-customers and had raised ₹40 million (INR) of venture capital funding to date. Their target was to onboard 20,000 farmers as paying customers by 2021. Could they also generate revenues by selling farm-management related data to agriculture-related organizations? In the next meeting, they were expected to present a comprehensive and cogent strategy to their financiers.
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  • Salt n Soap: Online Retailing of Food and Groceries

    In January 2020, the founder and chief executive officer (CEO) of Salt n Soap, an online retailer of food and groceries in Kolkata, India, was reviewing the company’s strategy and business model. Salt n Soap had been in operation for six years, and now offered nearly 15,000 food and grocery (F&G) products of 1,000 distinct brands through its online retailing website. However, the Indian online F&G retail industry was highly competitive. Salt n Soap had a limited business footprint, mainly concentrated in Kolkata, India and unlike its competitors, it had not raised external equity funding. The CEO had to quickly reassess the current business model and strategy and prepare for the oncoming challenges from an increasingly competitive business environment. The decision had to be made before the end of the month so that any strategic changes could be implemented within the current financial year.
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  • The Walt Disney Company: Sexual Harassment and Controversies on Social Media

    Between 2017 and 2019, The Walt Disney Company (Disney) faced two major scandals that threatened to damage its family-friendly brand image. Disney’s brand value decreased by 5 per cent from 2017 to 2018, although it remained the most valuable media brand worldwide. In November 2017, John Lasseter, Disney’s executive producer, was accused of illegal sexual misconduct at its Pixar Animation Studios (Pixar). Following the allegations, Lasseter left the company in December 2018. Further, during the June and September of 2018, Rian Johnson, the writer and director of The Last Jedi for Disney’s subsidiary, Lucasfilm Ltd. LLC (Lucasfilm), posted unprofessional, aggressive, and insulting responses on his personal Twitter account to fans who hated the film. In April 2019, Disney chief executive officer (CEO) Robert Iger announced that no new Star Wars movies written or directed by Johnson would be put into development. Why did Disney not take immediate action to address these two scandals? How should Disney mitigate the losses stemming from the two scandals and prevent them from happening again? What should Disney do to further grow its sustainably?
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  • Native Deodorants: Sell or Swell?

    <p style="color: white; background-color: rgb(3, 70, 56); font-size: 16px; display: inline-block; border: 0px solid rgb(197, 183, 131); padding: 4px 4px;"><a href="https://www.iveypublishing.ca/s/product/native-deodorants-sell-or-swell-digital-learning-experience/01tOF000001qb3mYAA" style="color: inherit; text-decoration: inherit;"> AVAILABLE AS A DIGITAL LEARNING EXPERIENCE </a></p><br><br>The founder and chief executive officer (CEO) of the direct-to-consumer deodorant startup Native Deodorant (Native) had grown the brand to one million active users in about two years. The company was founded in 2015 in San Francisco and had disrupted the deodorant industry by offering all-natural deodorants direct to consumers through its website. By cutting off retailers from the value chain, the CEO had created a feedback loop that helped him have an agile and iterative approach to his business. In 2017, he received an offer from the Procter and Gamble Company to buy his one-and-a-half-year-old startup for US$100 million. He faced a tough predicament: he could continue to leverage the business model of Native and grow to the next million customers, or he could sell to P&G for a nine-figure payday. What should he do?
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  • Native Deodorants: Sell or Swell?

    The founder and chief executive officer (CEO) of the direct-to-consumer deodorant startup Native Deodorant (Native) had grown the brand to one million active users in about two years. The company was founded in 2015 in San Francisco and had disrupted the deodorant industry by offering all-natural deodorants direct to consumers through its website. By cutting off retailers from the value chain, the CEO had created a feedback loop that helped him have an agile and iterative approach to his business. In 2017, he received an offer from the Procter and Gamble Company to buy his one-and-a-half-year-old startup for US$100 million. He faced a tough predicament: he could continue to leverage the business model of Native and grow to the next million customers, or he could sell to P&G for a nine-figure payday. What should he do?
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  • The Walt Disney Company: Sexual Harassment and Controversies on Social Media

    Between 2017 and 2019, The Walt Disney Company (Disney) faced two major scandals that threatened to damage its family-friendly brand image. Disney's brand value decreased by 5 per cent from 2017 to 2018, although it remained the most valuable media brand worldwide. In November 2017, John Lasseter, Disney's executive producer, was accused of illegal sexual misconduct at its Pixar Animation Studios (Pixar). Following the allegations, Lasseter left the company in December 2018. Further, during the June and September of 2018, Rian Johnson, the writer and director of The Last Jedi for Disney's subsidiary, Lucasfilm Ltd. LLC (Lucasfilm), posted unprofessional, aggressive, and insulting responses on his personal Twitter account to fans who hated the film. In April 2019, Disney chief executive officer (CEO) Robert Iger announced that no new Star Wars movies written or directed by Johnson would be put into development. Why did Disney not take immediate action to address these two scandals? How should Disney mitigate the losses stemming from the two scandals and prevent them from happening again? What should Disney do to further grow its sustainably?
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  • Cathay Pacific: Financial Impact and Challenges in Adopting the New Lease Accounting Standard

    This case explores how Cathay Pacific, the world's eighth-largest carrier of international passengers, deals with the new accounting standard, namely, HKFRS 16 Leases (which superseded the prior HKAS 17) as mandated, effective 1 January 2019. For lessee accounting, the new standard adopts a singular right-of-use model that applies the same accounting treatment universally to all leases (with few exceptions), while the prior standard used a dual model that required distinct classification of operating and finance leases with different accounting treatments. Companies that enter lease arrangements to access assets are affected by the new lease standard in varying degrees. In particular, the airline industry-with heavy reliance on leases for aircrafts-is one of most affected in terms of financial metrics. The case seeks to highlight the discussion surrounding the implementation of the new standard. Students will tackle practical questions about the differences between HKFRS 16 and HKAS 17, and how the implementation of the new standard affects Cathay Pacific's financial position, performance, and disclosures in the financial statements.
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