In 2016, the general manager of Stone Rock Golf & Country Club (SRGCC) in Ainslie, Ontario, was considering an opportunity to grow the club’s weddings and special events business. SRGCC, a popular 18-hole golf course in a small town, was owned and operated by four local families, who ran the business according to their family values and their sense of loyalty and pride in their community. Since the golf industry had recently experienced a significant decline, the manager believed that increased investment in the weddings and special events business would help to strengthen and diversify SRGCC’s revenues. He was considering three different options, from modest to quite substantial: (1) focus on the immediate capital need of renovating the outdated maintenance facility; (2) make a large investment that included adding a new space for weddings and special events, expanded parking, and a new maintenance facility; or (3) do nothing and maintain the status quo. To complete the entire renovation, the club would require an investment of close to $1 million as well as approval from the four families. How could he build a case to increase SRGCC’s revenues and convince both his banker and the board of directors to accept his choice?
When it comes to separating the roles of company CEO and board chair, many arguments—both for and against activist calls to do so—have been made. Arguments against the idea generally insist that separating the roles adds complexity to running a business by creating two armed camps with blurred responsibilities. Meanwhile, arguments in favour of separation tend to highlight numerous benefits, including improved executive oversight, diversity of thinking, and financial savings. The authors of this article argue that governance improvements alone justify separating the CEO and board chair functions. As investment industry professionals at one of Europe’s largest asset managers, they have long been concerned by a worrying pattern of companies only splitting these functions after a scandal. Separating the roles of CEO and board chair doesn’t just reduce costs along with the risks of bad behaviour—it can help companies achieve and maintain profitability, mitigate challenges, and focus on growth to create long-term value—even in times of crisis. The authors’ approach in advocating for better governance measures is twofold. On the one hand, they want to guide companies toward more responsible and sustainable behaviours; and on the other, they are acting out of self-interest to protect their shareholders as asset managers because they believe creating a more sustainable capitalist system is in the best interest of all investors.
When it comes to how decision makers understand problems, Nietzsche’s insights are as valuable to executives today as any lesson offered by modern business schools.
For people who aspire to drive change, studying the impact that character had on RBG’s judgment is as important as replicating her commitment and competence
The sole owner of the Gusto 54 Restaurant Group (Gusto 54), which owned and operated nine restaurant concepts in Toronto and Los Angeles, had grown the restaurant group into a huge success story. In a competitive, low-margin industry, Gusto 54 outperformed its peers and consistently achieved its desired profit margins. Gusto 54's strategy was grounded in innovative growth, the use of technology, and empowerment of all employees to take an entrepreneurial approach to their roles. The owner had grown the company strategically, making business decisions based on her belief that her most valuable resource was having the right employees. She focused on building culture, hiring employees who fit the culture, and investing in the employee experience to retain them. She also made efforts to keep the leadership team lean and to include all members in decision-making. While Gusto 54's strategy had fuelled its present growth, in 2020, the owner was concerned about the impacts of rapid expansion. She wondered how to balance growth plans with the need to hire and retain top talent and maintain an engaged, motivated workforce. How could she scale up without losing the family-style culture her employees valued?
New research shows that market leadership is increasingly temporary. Just 17% of companies are able to significantly outperform their industry average for five years. The ones that do continually find new sources of competitive advantage by reinventing their businesses and adapting to evolving market conditions. Their example offers lessons for leadership teams trying to fight the relentless pull to the mean.
This note provides general information about climate change and its implications for business. Included is an overview of climate change science and a number of its impacts, including rising sea levels, changing weather patterns and extreme weather, pressure on water and food, political and security risks, human health risks, and impact on wildlife and ecosystems. Next, responses to climate change are outlined, including improvements in energy efficiency, moving away from fossil fuels, changes in land use and agriculture practices, and geoengineering. The note concludes with the debate over how much should be spent to mitigate and adapt to climate change, who should pay, and the implications for the private sector.
This case explores Ontario's Fair Hydro Plan, a 2017 policy of the Government of Ontario that aimed to reduce consumer electricity rates by borrowing to provide subsidies. This borrowing was to be repaid through increased rates levied on future consumers in the province. This policy was accounted for using the principles of rate-regulated accounting. The impetus for these changes was the rapidly rising electricity rates.
Founded in 2008, Khan Academy was a global educational nonprofit with a mission to provide a free, world-class education for anyone anywhere in the world. By 2018, the organization had expanded into numerous content areas, product areas, and geographic markets. However, a newly minted 3-year strategic plan called for greater focus and prioritization to enable the young organization to maximize its impact. It also called for increased fundraising efforts to ensure long-term sustainability. The case poses several questions: how to balance Khan Academy's far-reaching aspirational vision for transforming education globally with the short term need for greater focus? Would the priorities set in the strategic plan enable Khan Academy to create systemic global change? How should donors evaluate the attractiveness and impact of a potential investment in Khan Academy relative to other organizations in the educational market? Was Khan Academy on the right path to ensuring long-term sustainability?
Marcos Galperin, a graduate of Stanford Graduate School of Business, founded Mercado Libre in 1999 with a vision to build an e-commerce company focused on serving the nascent but fast- growing Spanish and Portuguese-speaking markets in Latin America. In the spirit of a Silicon Valley start-up, the company was started in a garage in Buenos Aires. By 2006, Mercado Libre hosted the largest online trading platform in Latin America. Just prior to the company's 2007 IPO, Mercado Libre achieved what eluded most internet start-ups―profit. It had recorded $52 million in revenues and $1.1 million net income for the full year in 2006. The IPO itself raised $289 million. By 2019 Mercado Libre was largest online commerce ecosystem in Latin America based on unique visitors and page views. It operated in 18 countries across Latin America: Brazil, Argentina, Mexico, Chile, Colombia, Peru, Uruguay, Venezuela, Bolivia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Paraguay and El Salvador. Over the past 20 years, Mercado Libre had developed a diversified business model, one aimed at boosting electronic commerce. With the Mercado Libre Marketplace as the hub and engine, the company developed additional business units to provide payment solutions, logistics, financing, advertising and software services. The Mercado Libre ecosystem was designed to provide users with a complete portfolio of services to facilitate commercial transactions and to provide buyers and sellers with an environment that fostered the development of a large e-commerce community in Latin America, a region with distinctive cultural and geographic challenges. Mercado Libre had penetrated Latin America; however, Mercado Libre faced a formidable competitor - Amazon. Amazon entered Latin America in 2012 and was rapidly expanding.
This case focuses on Cindy Padnos's and Aileen Lee's experiences founding their own VC firms. It introduces some of the tradeoffs and challenges facing both founders. In particular, the case highlights some of their early investing experiences as women VCs and how those experiences shaped decisions with their funds.
Razorpay is one of the leading Indian business-to-business (B2B) payment solution providers. Its growth has been based on its technological leadership and service differentiation. While it has worked in a matured market so far, the company has recognised the need to enhance its business model and service offerings. It intends to reduce its dependence on its core payment gateway by launching multiple products covering payment processing and disbursement. It also plans to move to a more platform-centric business model by launching a digital lending marketplace. The case provides details for discussing the challenges involved in transforming the product and market strategy of Razorpay in an evolving B2B payment market.
A large-scale study in Europe of funding decisions finds that VCs evaluate male and female entrepreneurs by different standards. Savvy entrepreneurs can anticipate potentially biased responses to their pitches and plan accordingly. Certain tactics keep audiences engaged and confident of the idea's potential, positioning the petitioner to succeed.
The Peruvian government saw the opportunity to leverage digital technologies to increase transparency, rebuild trust, competence and credibility, and get closer to its constituents. In October of 2016, with the mandate to "bring the Government closer to its citizens through innovation," the government launched the Innovation Unit. In Peru, there was an increasing disconnect between society, markets, and public institutions. Lower than expected economic growth, a growing number of middle class citizens with unmet aspirations, and corruption had widened the gap between government and its constituents. In 2015, almost 94% of Peruvians perceived their central government as corrupt (vs OECD average of 65%). With digital transformation leaders who included Daniella Raffo, Heidi Uchiyama, and Zoila Palma, the Peruvian government saw an opportunity to use digital technologies as one tool to tackle the challenge. Case number 2171.0