Link REIT, Asia's largest real estate investment trust and the second largest of its kind globally, holds a position of infamy in Hong Kong, its headquarters and primary market. A decade on from its formation, which occurred through the divestiture of what were previously public retail assets, Link REIT has been both lauded by investors for its superior returns and vilified by the general public as an agent of the city's gentrification. Critiques have raised two sets of allegations against Link REIT: that their approach to redeveloping the city's public markets has made these spaces unaffordable to the poor, previously the markets' principal patrons; and that many of the markets' legacy vendors, themselves also often impoverished, have been forced to leave their businesses post-renovation, unable to afford refurbishment. Redeveloped wet markets are now more upmarket and almost European, with Link REIT targeting a decidedly more bourgeois patron. But at what cost to the city's social fabric? And should this be a material concern? The story's protagonist, Calvin Kwan, is the General Manager of Sustainability at Link REIT and has spent his tenure attempting to demonstrate that sustainability has a place in the corporate boardroom. Now tasked with rethinking his company's approach to managing these assets, Calvin must consider to whom Link REIT holds obligations and how outside approaches to urban redevelopment might generate sources of value that are both financially accretive and socially beneficial. Faced with heightened levels of public scrutiny, Link REIT's response may shape their continued right to operate within the city.
In February 2019, Cognizant Technology Solutions (Cognizant), an American information technology (IT) outsourcing company, was ordered to pay a total of US$28 million in penalties to the U.S. Securities and Exchange Commission and the US Department of Justice. Certain payments relating to facilities in India were allegedly made improperly and in possible violation of the US Foreign Corrupt Practices Act (FCPA). In April 2019, Brian Humphries took over the role of chief executive officer at Cognizant. What could Humphries and Cognizant do to recover and to prevent future incidents of corruption?
In 2019, the founder and chief executive officer of StoreKing, a distribution company that sold consumer products to rural India through designated retailers, faced the challenge of attaining 100,000 retailers by 2020. The chief executive officer (CEO) had previously identified an opportunity to use an assisted e-commerce model to reach rural consumers and offer them a better variety and choice of products than offered by traditional distribution channels. The challenge now was to grow the business rapidly to be viable and to achieve a leadership position to compete with not only similar players but also the large e-commerce company, Amazon.com, Inc. The CEO needed to decide on a growth strategy, how to promote the concept to retailers, and how to develop an edge over the competition.
In February 2019, Cognizant Technology Solutions (Cognizant), an American information technology (IT) outsourcing company, was ordered to pay a total of US$28 million in penalties to the U.S. Securities and Exchange Commission and the US Department of Justice. Certain payments relating to facilities in India were allegedly made improperly and in possible violation of the US Foreign Corrupt Practices Act (FCPA). In April 2019, Brian Humphries took over the role of chief executive officer at Cognizant. What could Humphries and Cognizant do to recover and to prevent future incidents of corruption?
In 2019, the founder and chief executive officer of StoreKing, a distribution company that sold consumer products to rural India through designated retailers, faced the challenge of attaining 100,000 retailers by 2020. The chief executive officer (CEO) had previously identified an opportunity to use an assisted e-commerce model to reach rural consumers and offer them a better variety and choice of products than offered by traditional distribution channels. The challenge now was to grow the business rapidly to be viable and to achieve a leadership position to compete with not only similar players but also the large e-commerce company, Amazon.com, Inc. The CEO needed to decide on a growth strategy, how to promote the concept to retailers, and how to develop an edge over the competition.
This case examines the business model and growth of a start-up company in the private aviation industry. In June 2020, amidst the COVID crisis, the company's co-founder and CEO must make a decision regarding an order of new jets that will significantly expand the company's fleet. The case will explore how a company should approach such strategic capacity expansions given significant uncertainty in demand. This can be tied to a broader discussion of the company's overall growth strategy and the scalability of its business model and operating system.
This Note has two parts. The first part (A) explores how US private equity firms are incorporating ESG (Environmental, Social, & Governance) factors and impact objectives into their investment strategies and firm practices. It is based on publicly available information and on interviews with representatives from leading firms, limited partners (LPs), academic experts, and relevant nonprofit organizations. The note begins with background on the PE industry. It then examines why and how firms are incorporating ESG and impact objectives, identifies the barriers to integrating these objectives more fully, and summarizes some areas of possible improvement. The second part (B) offers suggestions for offers suggestions for roles various constituents can play in advocating for improved ESG and impact efforts in the PE industry.
This is the second part of a two-part note. The first part (A) explores how US private equity firms are incorporating ESG (Environmental, Social, & Governance) factors and impact objectives into their investment strategies and firm practices. It is based on publicly available information and on interviews with representatives from leading firms, limited partners (LPs), academic experts, and relevant nonprofit organizations. The note begins with background on the PE industry. It then examines why and how firms are incorporating ESG and impact objectives, identifies the barriers to integrating these objectives more fully, and summarizes some areas of possible improvement. The second part (B) offers suggestions for roles various constituents can play in advocating for improved ESG and impact efforts in the PE industry.
Kamal Kapoor, a cotton shirting fabric wholesaler based in Delhi, India, was unable to decide whether or not to continue his business. Retailers had been procrastinating regarding their outstanding payments and international suppliers offering exclusive goods were asking for advance payments. Domestic suppliers had disintermediated the channel by directly approaching retailers or launching their own retail brands. In addition to these challenges, e-tailors were eroding Kapoor’s business, as modern consumers preferred ready-made shirts at reasonable prices that were available at their convenience.<br><br>In light of this changing landscape, Kapoor was unsure whether his business model was sustainable. He considered various alternatives, such as whether he should move forward in the value chain by starting his own private retail brand or move backward by acting as an agent. He even contemplated focusing on a niche segment of the market that offered higher margins but not high volumes. Time was running out. Kapoor had to investigate the three options and make a choice, keeping the working capital cost of each in mind. Or was it simply time for Kapoor to liquidate his assets and exit the business on which he focused so much time and energy?
Kamal Kapoor, a cotton shirting fabric wholesaler based in Delhi, India, was unable to decide whether or not to continue his business. Retailers had been procrastinating regarding their outstanding payments and international suppliers offering exclusive goods were asking for advance payments. Domestic suppliers had disintermediated the channel by directly approaching retailers or launching their own retail brands. In addition to these challenges, e-tailors were eroding Kapoor's business, as modern consumers preferred ready-made shirts at reasonable prices that were available at their convenience. In light of this changing landscape, Kapoor was unsure whether his business model was sustainable. He considered various alternatives, such as whether he should move forward in the value chain by starting his own private retail brand or move backward by acting as an agent. He even contemplated focusing on a niche segment of the market that offered higher margins but not high volumes. Time was running out. Kapoor had to investigate the three options and make a choice, keeping the working capital cost of each in mind. Or was it simply time for Kapoor to liquidate his assets and exit the business on which he focused so much time and energy?
Kelvin Teo, Group CEO of peer-to-peer (P2P) lending platform Funding Societies Pte Ltd, has submitted an application for a Singapore digital wholesale bank (DWB) licence to the Monetary Authority of Singapore (MAS), Singapore's central bank and financial regulator. For the purpose of this application, Funding Societies had set up a consortium with smartphone manufacturer Xiaomi Corp, investment bank AMTD Group, and electricity and gas grid operator SP Group. The questions that the case tackles include: Should Funding Societies remain a P2P lending platform or seek to become a digital bank? What were its reasons for choosing to team up with this specific set of consortium partners? Why did Funding Societies abandon its initial plan to be lead partner of the consortium? If the application failed, what should be its back-up plan?
Annapurna Studios was founded by legendary Indian actor Akkineni Nageswara Rao (ANR) in Hyderabad in 1975. Over the years, Annapurna had grown to become a modern-day powerhouse in the field of entertainment and filmmaking. In 2019, it was well known for its state-of-the-art production facilities, creative content production, and film and media institute. ANR's older son, Venkat joined the studio a few years after its inception but struggled to keep it afloat. Nagarjuna, ANR's younger son, began helping out at the studio after finishing college, but the studio's fortunes only changed in the mid-80s when Nagarjuna decided to become an actor In 1999, Venkat handed over management control of the studio to Nagarjuna. Their niece Supriya joined the business as a management executive. The studio had two divisions: operations and content creation. The operations division, which included post-production, editing and dubbing facilities, ran smoothly under the COO with minimal intervention from the family. In the content creation side of the business, the family's presence was greater. Nagarjuna and Supriya made all the critical decisions related to content, guided by their business sense and passion. With the second generation of the family still at the helm of Annapurna Studios, the next generation's involvement was relatively low. Chaitanya (Nagarjuna's son) had started showing some interest, but the other members of the third generation were either not yet involved in the studio or were busy with their own acting careers. Nagarjuna was worried that the next generation might not have the same level of passion for the studio as the previous generations. He wanted to ensure that the studio's legacy sustained into the future. What strategy should the studio to adopt to ensure its long-term survival in the risky and ever-changing film and entertainment business?
This case explores the organizational practices of GitLab, an "all remote" company with more than 1,000 employees located in 59 countries. GitLab solves the challenges of employees working in an online-only environment by relying extensively on asynchronous modes of coordination. The case presents a set of prototypical situations to show how this is achieved: the onboarding of a new member, internal modes of dividing and integrating tasks, and modes of internal and external communication. With plans to go public in the year that COVID-19 is spreading around the world, Gitlab has attracted the attention of several investors. But can the core ingredients of its thriving "all remote" organizational design withstand the pressures of a sudden expansion of the workforce and stronger market scrutiny and competition? And what can organizations in other sectors learn from its approach?
In the first half of 2020, worldwide lockdowns caused by the COVID-19 pandemic brought explosive growth to the Zoom Video Communications platform, as people replaced in-person work and social events with videoconferencing. Months into the pandemic, CEO Eric Yuan reflects on his company's newly central role in society, and considers how to leverage the platform's broad adoption into sustainable future growth. The case also discusses Zoom's internal culture -- which prioritized employee and customer happiness -- as well how both the company and its customers faced the transition to remote work.
Jinrun Li, chief operating officer for Goodbaby Group (Goodbaby), had to make a decision about opening a new store in a high-end mall in Shanghai, China. Goodbaby was going to manage the store for one of its clients, who had its own specifications for the dimensions and product range of the store. However, the floor space available was too small to accommodate the preferred proposal from Goodbaby's marketing department. Based on a recent pilot project, Li considered adopting a new supply chain structure that would allow for reduced floor space while complying with the client's specifications. The new supply chain structure involved an upfront warehouse that would increase the speed of store replenishments and act as a buffer between the regional warehouse and the store. Looking at the data, Li wondered if this new structure would be the solution for the proposed new store.
In February 2014, Global 3PL, one of the largest logistics companies in the world, announced an ambitious expansion strategy. In accordance with that plan, the company struck an agreement in 2017 with TradeIX Limited (TradeIX) to optimize its working capital management. TradeIX was a start-up based in Dublin, Ireland that offered blockchain technology solutions to help companies manage trade finance more efficiently, especially in the area of accounts receivable. However, the potential for improvement in the realm of trade finance was heavily restricted by a complex network of suppliers and an organizational structure of silos for data flow. Global 3PL was therefore working on a pilot project with TradeIX, using its Marco Polo platform, to connect with insurance and banking services through a secure network. The process enabled full transparency of all financing transactions in the accounts receivable process. Despite the success of the pilot project, the efficiency of the Marco Polo platform had to be assessed on a technological and strategic level. Determining if the platform could prove to be a long-term sustainable solution for full operation across Global 3PL's global trade finance system landscape was critical.