Alvéole was an urban beekeeping start-up in Montreal, Quebec. Founded in 2012, Alvéole offered beekeeping services and products in support of its social mission of educational outreach surrounding issues related to the natural environment, food security, and ecological concerns facing society. The company had successfully launched in the Montreal region and was now considering how to grow the firm. At the same time, Alvéole wanted to address some existing challenges such as seasonal labour and cash flow management.
This case illustrates the challenge and opportunities that firms face when developing and executing new business models in high-risk, low-infrastructure, low-trust countries. It features a global logistics group, Agility, that aimed to become the leader in supplying innovative solutions that provide the backbone to growing consumer markets across Africa. Agility's objective was to fill the institutional voids in the warehousing and logistics space that prevented multi-nationals and local firms from successfully operating at a level similar to Western countries and other emerging markets. After proof-of-concept success in Ghana's free zone, Agility faced the challenge of expanding its business model across a diverse continent of 54 countries. Agility Africa's CEO, Geoffrey White, needed to plot the way forward. Should he set a high entry barrier by building several warehouse parks in one of Africa's economic regions? Or, should he expand across the continent with one facility in each of the large and growing countries? If the decision was to pursue regional expansion, should he try to open one park per country-even in small ones-or build satellite developments in secondary cities where Agility already had facilities? He also needed to consider the pace of phasing in each park and the possibility of developing multiple parks in existing locations. With the world's fastest growing middle-class population and an internet revolution poised to spur the growth of consumer products and industrialization, Africa was considered by many as the world's leading and largely untapped, emerging market. White needed to make difficult and nuanced decisions that took account of the continent's many differences, as well as business similarities.
Gupta Media is a Digital Marketing firm started in 2005 that places advertisements and marketing promotions for its clients in digital media, mainly social media such as Facebook and Google. Over the years it had built its expertise in promoting music labels, artists and music festivals. Because its media placements were carefully optimized, it was able to return a high degree of performance on the marketing dollar for its clients. The case focuses on how to optimize performance for two such clients, the Governors Ball Music Festival in NY and Fender Play (a musical instrument company). The case ends with the question of whether such performance marketing techniques can be applied to consumer packaged goods (Red Bull) sold through indirect distribution.
In 2009, Dan Meyer and Richard Palmer, two veterans of the fast-moving consumer goods (FMCG) industry, founded Nehemiah Manufacturing to build FMCG brands while providing jobs to Cincinnati, Ohio's beleaguered urban core. Two years later, the pair made their first "second-chance" hire of a convicted felon, a successful experiment which would grow to define the company. By 2019, Nehemiah's factory floor, as well as several supervisory and management positions, would be staffed by ex-offenders. With a robust net of social support services and a non-profit foundation for training peer companies in how to hire second-chance employees, Meyer and Palmer advocated using second-chance hiring to decrease turnover and create staff loyalty. This case deals with the challenges and opportunities associated with growing a manufacturing company while prioritizing a social mission, and enables students to evaluate the potential of second-chance hiring programs.
In May 1932, US president Herbert Hoover and British prime minister Ramsay MacDonald called for leaders from 65 nations to attend the World Economic Conference, scheduled to occur in the winter of 1933 after the American presidential election. Hoover turned his attention to the instructions he would have to give to the American delegation about the forthcoming conference. Arguments by pundits, critics, and Hoover's advisers fell into at least three mutually exclusive camps. Some wanted the United States to assume world monetary leadership, since the world needed a financial hegemon. Others thought the United States should simply promote better financial cooperation among nations, since the world needed cooperation more than hegemony, and hegemony was costly. The third camp wanted the United States to simply let the markets equilibrate, since even mild "cooperation" might sacrifice national self-interest without much benefit. The global economic depression presented a dire situation. All the old rules of international monetary stability had been broken. Now, what new rules should Hoover aim to promote?
Supplement to case UV7884. In this B case, the actual events of the 1933 World Economic Conference are summarized, along with the actions and intentions of newly elected President Franklin D. Roosevelt, and reactions by the domestic press and the international community. It also includes the text of his remarks to the conference.
The cases of Standard Chartered v. Directorate of Enforcement (2005), Iridium India v. Motorola Inc & Ors. (2011), and Sunil Bharti Mittal v. Central Bureau of Investigation represent a significant development in India's corporate criminal liability jurisprudence. Standard Chartered reconciled mandatory imprisonment (as prescribed for punishing many offences under Indian law) with the impossibility of imprisoning corporations, Iridium explained whether corporations are capable of committing crimes which require intent (mens rea), and Sunil Bharti Mittal clarified whether the liability of a corporation for a criminal act can be attributed to its directors/promoters.
This case is about global marketing, brand equity, overall business strategy and supply management. The case outlines the bold and polarizing strategic choices made by The Macallan management between 2009 and 2017 and offers an opportunity to debate and discuss the next best strategic move for The Macallan brand. The Macallan is part of the Edrington Group, which distributes the Famous Grouse, Scotland's leading blended whisky and The Macallan, which is now the global number three single malt Scotch whisky. The Macallan built a strong brand equity and reputation with its rich flavored whiskies, using age as the key communication tool to indicate quality for decades. In 2009 The Macallan launched its first single malt whisky in travel retail without any age statement on it. The travel exclusive line up was followed by additional products for retail focused on color as a differentiator. These new retail products replaced the majority of The Macallan's age line-up in the biggest market Europe (ages between 8 and 17), while older versions stayed on the market. These surprising innovations were in response to the growing demand combined with serious supply constraints. The Macallan invested in extending its production capacity, and students will be able to debate whether The Macallan should move back to the old age days or keep moving on with the strategy introduced in 2009. Or use a strategy combining both.
On 18 November 2018, Dolce & Gabbana S.R.L. (D&G) released three short videos on Instagram, Facebook, and Twitter as well as Sina Weibo in China to promote its first-ever fashion show in mainland China. The campaign was specifically designed to drum up excitement about an important catwalk event to be held at the Expo Center of Shanghai on 21 November 2018. However, the videos did not create the intended positive effect. In fact, the incongruous or extreme presentations in the videos jeopardized the entire promotion campaign. From the Chinese audience's perspective, the D&G videos were not entertaining but inappropriate, offensive, and racist. The result enraged the Chinese audience and fueled a heated online debate. Within 24 hours, under public pressure, D&G was forced to remove the videos from its Weibo promotion channel. While many Chinese media users were demanding a formal apology from D&G for the videos, the company allowed the debate to simmer and boil for the next few days. This case is the first case of a three-part case series. It can be used on a stand-alone basis or in combination with Case B (D&G's Marketing Missteps in China (B): The Deepening Crisis) and Case C (D&G's Marketing Missteps in China (C): The Epilogue).
On the morning of 21 November 2018, Diet Prada, an Instagram account that uncovered the dark secrets and stories about the fashion industry, posted alleged text messages between Dolce & Gabbana S.R.L. (D&G)'s cofounder Stefano Gabbana and fashion writer Michaela Phuong. In the exchange, Stefano complained about the removal of D&G's videos (#DGLovesChina and #DGTheGreatShow) from Chinese social media Weibo amid an onslaught of criticisms. Stefano's alleged anti-China comments on Instagram, coupled with the D&G videos that were perceived as racist and offensive, prompted a slew of outraged responses not only from the Chinese consumers but also from its own brand ambassadors and celebrity partners in China. Many immediately severed ties with the brand. Following this intense backlash from celebrities and consumers, a number of retailers took swift action to sever connections with D&G and removed its products. Bowing to the public backlash from the controversial videos and the Instagram post, the founders of D&G made a personal apology through a video address. This case is a continuation of D&G's marketing missteps in China (A).
In November 2018, Dolce & Gabbana S.R.L. (D&G) faced a serious brand crisis following the release of three short videos on Instagram, Facebook, and Twitter as well as Sina Weibo in China to promote its first-ever fashion show in mainland China. The brand crisis was further exacerbated by derogatory comments alleged to have been made by the cofounder, Stefano Gabbana, on Instagram. The failure of D&G to take swift action to quell the controversy triggered by the videos had resulted in cancellation of the Shanghai catwalk event and a public relations disaster. This case summarises the reputational damage caused by the crisis and initial marketing efforts made by D&G to rebuild its image in China from the end of 2018 up to May 2019. It is the third case of a three-part case series and should be used in conjunction with Case A (D&G's Marketing Missteps in China (A): How to Balance Fashion Brand Strategy and Cultural Sensitivity?) and Case B (D&G's marketing missteps in china (B)-The Deepening crisis).
Ellen J. Kullman, the retired Chairman and CEO of DuPont, describes how she guided the storied science and technology company through a contentious proxy battle with activist investor Trian Partners, which acquired DuPont shares in 2013 and sought to break up the company. Trian's pursuit of board seats led to a 2015 shareholder vote, which DuPont won under Kullman's leadership. In a sweeping interview with Professor Lynn S. Paine, Kullman describes lessons from her experiences navigating the proxy contest that captured national attention as well as about working with your board, setting company strategy, leading a large corporation, evaluating time frames for shareholder returns, measuring stakeholder performance, assessing shareholder engagement, considering joining a new board and boardroom dynamics, and understanding how boards have changed over the years.
Gupta Media is a Digital Marketing firm started in 2005 that places advertisements and marketing promotions for its clients in digital media, mainly social media such as Facebook and Google. Over the years it had built its expertise in promoting music labels, artists and music festivals. Because its media placements were carefully optimized, it was able to return a high degree of performance on the marketing dollar for its clients. The case series (A), (B), and a data intensive Excel Spread sheet focuses on how to optimize performance for two such clients, the Governors Ball Music Festival in NY and Fender Play (a musical instrument company). The case ends with the question of whether such performance marketing techniques can be applied to consumer packaged goods (Red Bull) sold through indirect distribution. The case series provides students hands-on experience with "performance marketing" data and teaches them how to make data driven digital marketing budget allocation decisions.
Planet Fitness, one of the largest health club chains in the world, developed a strategy that enabled it to achieve solid profits in a highly competitive industry. By 2018, the company operated more than 1,500 gyms, most of which were owned and operated by franchisees. In its 2017 annual report, Planet Fitness boasted of 44 consecutive quarters of same-store sales growth. By August 2018, the company's stock price had risen by over 150% since its initial public offering in 2015, outpacing the S&P 500 index by a wide margin. CEO Chris Rondeau expressed a desire to open 1,000 additional locations in the next five years, largely through franchising, and proclaimed a desire to eventually operate more than 4,000 locations in the United States. Some observers expressed skepticism about the company's aggressive growth objectives. At the same time, fitness enthusiasts and serious athletes often mocked the company's approach to fitness because it proudly proclaimed itself a "judgement-free zone" where people could exercise without feeling intimidated by serious athletes and muscular bodybuilders. Could Planet Fitness sustain its competitive advantage while aiming to grow so rapidly? Could it succeed long term in an industry where many competitors had failed?
While still a general partner at Silicon Valley-based New Enterprise Associates (NEA), Ravi Viswanathan considered the challenges presented by evolving market dynamics in the venture capital space. Startups were staying private longer, which led to limited partners thirsty for liquidity and venture capital funds managing overloaded portfolios. Viswanathan and the senior leaders of NEA orchestrated the purchase of 31 NEA unrealized portfolio companies by the newly created $1.35 billion NewView Capital spinout that he would head. This secondary transaction provided liquidity to NEA's limited partners and reallocated NEA partners' time to shepherd other portfolio companies, while at the same time allowing NewView Capital to reap gains from future exits from a portfolio of diverse, high-quality growth stage technology companies. Now, as he prepares to raise Fund II, Viswanathan acknowledges that the unique circumstances that enabled the launch of Fund I would not be replicable, and he must consider alternative strategies to pursue next. Should he continue to focus on secondary transactions, focus on direct investments, or some combination of the two?
Driven largely by advances in perception and situational awareness, robots in the 2010s were gaining functionality that allowed them to be applied to fundamentally new types of work. The expanding range of new types of tasks that could be completed by machines had significant implications for businesses, the workforce, and society. This primer grounds conversations about these implications by illustrating real-world examples of the new types of activities that robots were becoming able to perform. It describes the functionality limitations which dictated how earlier robots could be deployed and the advances in underpinning technology which have moved these boundaries and led to the current inflection point.
Globe Telecom, a leading telecommunications service provider in the Philippines, had a long history in the communications business. The company was incorporated in 1935 as an international wireless communications company connecting the Philippines to the rest of the world, and in 1994, it became the first company in the country to offer mobile telecommunications services. Nearly 25 years later, more than half of the Philippines' 100 million residents were Globe subscribers, generating nearly US$280 million in net revenue. But the company was not always so well-positioned. Despite its first-mover advantage, Globe had found its market share steadily eroding, and by 2010, its market share had shrunk from 42% to 33% in just under six years. Morale within the company was at an all-time low, and the workplace had become toxic. Globe was clearly failing in the execution of its strategies, and also did not appear to have the right capabilities to conceive effective ones. Spearheaded by Ernest Cu, who had joined Globe in 2008 as the Deputy CEO and subsequently became President and CEO in 2009, Globe set out on a transformation journey to meet the competition head-on. It established a framework that systematically addressed these challenges by focusing on three pillars: Network; IT and Systems; Talent and Culture. Investment into these pillars proved essential to transforming Globe's commercial offerings into an ever-growing array of sophisticated products and services supported by high-tech capabilities and entrepreneurial competencies. But was this framework robust enough to future-proof the company? Could Globe's sheer size and complexity of its offerings become a liability going forward?
Mark Cooke, Global Head of Operational Risk, needed to decide between a traditional regulatory control system and a new regtech system to manage non-financial risks. Non-financial risks failures such as money laundering and tax evasion had cost HSBC billions of dollars in fines and settlements over the previous decade. In response, HSBC had hired thousands of risk and compliance staff and invested billions in traditional control systems. Cooke, however, could not be sure HSBC's traditional methods were sufficient and he was worried they were not sustainable. Cooke recently ran a pilot test of a regtech solution that promised to warn of problem areas in advance, and do so at a much lower cost than traditional systems. The regtech solution provider was a small startup and the technology was not fully developed. Cooke wondered how much he could trust a technology from a startup company with a handful of employees and almost no revenue to meet the needs of a world-leading bank with global operations.
An unlikely but highly effective leader of a traditional bank, Rakefet Russak-Aminoach, simultaneously leads a classic change effort and an unconventional effort to innovate.