In 2014, the Delhi Metro Rail Corporation (DMRC) had just taken over operations of the Delhi Airport Metro (DAM), which connected the Indira Gandhi International Airport to the New Delhi railway station. However, high capital expenditures, excess operational expenditures, and low ridership meant that the concessionaire, which had been operating since 2011 on a public-private partnership model, was continuously reporting losses and therefore decided to quit the project in June 2013. When project operations were transferred to the DMRC, the metro's overall capacity utilization was a very low 5 per cent and the line had few riders and operational losses. The DMRC's director of operations had the challenging task of making the DAM operationally viable. There were several available options. Should he consider rationalizing the fares; increasing ridership by connecting the Delhi Metro Airport Express Line to passenger hubs; improving the amenities or attractions at the metro stations; or offering hassle-free travel for different groups of customers?
After the former chief executive officer (CEO) of U.S.-based Starbucks started to voice his political opinions in September 2016, both Starbucks and the CEO faced backlash. As the CEO and former chairman of a large company, he may have felt entitled to voice his opinion as an individual voter. However, public backlash-from both sides of the U.S. political spectrum-suggested that commentators, looking to respond to him, were actually targeting Starbucks. In 2019, the challenge for Starbucks' new CEO was to find a way to tactfully extricate Starbucks from political conversations.
With the acquisition of Rustan Supercenters Inc. (Rustan's) in November 2018, Robinsons Retail Holdings Inc. (Robinsons) had become one of the top retailers in the Philippines, with over 1,800 stores. Although the acquisition brought Rustan's network of more than 80 stores, located largely in Metropolitan Manila, under the Robinsons umbrella, the multiformat retail giant could not use the trademark and trade name "Rustan's" without the Tantoco family's approval. This case assesses the Robinsons brand and the retailer's possible post-acquisition growth strategies. It also discusses the benefits and risks associated with this acquisition, the possible brand-transition options available to Robinsons, and whether this trend-reversal strategy will provide the retailer with a competitive edge.
In 2000, The Gap, Inc. (Gap) was the world's largest player in specialty fashion retailing, and companies such as Inditex of Spain, H&M of Sweden, and Fast Retailing of Japan were less than a quarter of Gap's size. But after two decades of growth, Gap's progress stalled in the early 2000s, while these players continued to expand. Inditex overtook Gap in 2008, H&M in 2010, and Fast Retailing in 2016. Inditex continued to set the pace ten years later in 2019, and Gap appeared to be falling ever further behind. Since 2000, four Gap CEOs had struggled to turn around the company. While several temporary profit increases appeared to herald a recovery, a sustained rally remained elusive and the share price remained volatile. Mickey Drexler, who joined the firm in 1983 and became CEO in 1995, had been primarily responsible for Gap's rise to global prominence, but he was fired in 2002 after two years of double digit, same-store sales declines and a 75% drop in the stock price. His successor, Paul Pressler, appeared to have engineered a remarkable recovery, but was fired in 2007 after disappointing sales and another slump in profits, leaving Gap to be run by interim CEO Robert Fisher, son of founder Donald Fisher. Pressler's permanent replacement, Glenn Murphy, fresh from a successful turnaround at a Canadian drug-store chain, promised tighter price controls, lower administrative costs, and a leaner, more aggressive Gap. He cut costs and drove up earnings per share, but sales continued to decline in his first few years in office. A sales and profit revival in 2012 looked promising, driving the company's share price up 50%, but it proved short-lived, and Murphy announced in 2014 that he would step down, handing over to company veteran Art Peck (HBS '79). After four years under Peck's leadership, the company was still struggling to rediscover its old magic, while Inditex was going from strength to strength.
Joyous Group Holdings, a small and medium enterprise, provides photography, portraiture services and regalia rental for graduation events in Singapore. It competes against more established players in a market that appears to have limited growth. While competition in this market appears stable, headwinds are brewing in the horizon on multiple fronts. How can Joyous Group Holdings navigate an increasingly digital environment and grow its business in the age of wefies, selfies, and instant mementos? This case challenges readers to assess the external environment and capabilities of Joyous Group Holdings so as to recommend strategic actions to achieve growth.
After the former chief executive officer (CEO) of U.S.-based Starbucks started to voice his political opinions in September 2016, both Starbucks and the CEO faced backlash. As the CEO and former chairman of a large company, he may have felt entitled to voice his opinion as an individual voter. However, public backlash—from both sides of the U.S. political spectrum—suggested that commentators, looking to respond to him, were actually targeting Starbucks. In 2019, the challenge for Starbucks’ new CEO was to find a way to tactfully extricate Starbucks from political conversations.
This case teaches students the importance of maintaining a strong FICO score by illustrating the consequences of paying bills late or not at all. The protagonist is David Molina, a waiter at a struggling Italian restaurant located down the block from where he lives. Money is tight for Molina right now-his limited income means he lives paycheck to paycheck. However, Molina knows things will be looking up for him soon because he recently accepted a job as a bank teller across town-his first desk job. Molina has been putting off paying two of his bills: a cable bill and his Bank of America credit card bill, both of which are late and have been issued, this time, in the form of threats to impact Molina's credit score if he doesn't pay them. He has just enough money to afford the minimum payments on each overdue bill. But then he receives a phone call from his friend, Jim Lindsey, reminding him about an invitation to go to Myrtle Beach for the upcoming weekend. Molina knows he cannot afford it, but a woman he's attracted to, Jessica, will be there too. Should Molina put off the bills yet again, and if so, how exactly will being late on them hurt his credit score?
This case describes the growth of Glenn Defense Marine Asia (GDMA) under the leadership of Leonard Glenn Francis. GDMA provided ship husbanding and logistical support services to the United States Navy when Navy ships visited various ports in Southeast Asia. The case details the role of ship husbanding in U.S. Navy operations and the contracting process for procuring ship husbanding services. In order to help win contracts, Francis developed relationships with an extensive network of U.S. Navy officers, often by treating them to lavish meals and luxury accommodations during port visits. He used this network of contacts to acquire confidential information about U.S. Navy ship operations and port visits, giving GDMA an advantage in bidding for contracts. The case relates how Francis and GDMA came under investigation for these tactics and allows for discussion of whether these tactics were potentially illegal and/or unethical. The (A) case concludes with Francis' arrest by U.S. authorities. The (B) case describes the aftermath of Francis' arrest, including the prosecution and sentencing of his co-conspirators and the termination of U.S. Navy contracts with GDMA. The (B) case further describes a U.S. Navy audit of contracting practices and changes implemented to prevent future unethical or corrupt contracting as had occurred on a widespread basis between GDMA and the U.S. Navy. This case supports a discussion of internal control practices to contain risk of fraud and misconduct.
Supplemental to case 120036 This case describes the growth of Glenn Defense Marine Asia (GDMA) under the leadership of Leonard Glenn Francis. GDMA provided ship husbanding and logistical support services to the United States Navy when Navy ships visited various ports in Southeast Asia. The case details the role of ship husbanding in U.S. Navy operations and the contracting process for procuring ship husbanding services. In order to help win contracts, Francis developed relationships with an extensive network of U.S. Navy officers, often by treating them to lavish meals and luxury accommodations during port visits. He used this network of contacts to acquire confidential information about U.S. Navy ship operations and port visits, giving GDMA an advantage in bidding for contracts. The case relates how Francis and GDMA came under investigation for these tactics and allows for discussion of whether these tactics were potentially illegal and/or unethical. The (A) case concludes with Francis' arrest by U.S. authorities. The (B) case describes the aftermath of Francis' arrest, including the prosecution and sentencing of his co-conspirators and the termination of U.S. Navy contracts with GDMA. The (B) case further describes a U.S. Navy audit of contracting practices and changes implemented to prevent future unethical or corrupt contracting as had occurred on a widespread basis between GDMA and the U.S. Navy. This case supports a discussion of internal control practices to contain risk of fraud and misconduct.
In April 2019, Manoj Badale and Charles Mindenhall, co-founders of Blenheim Chalcot, were contemplating how they might go about developing their portfolio. Since founding the company as an internet consultancy called netdecisions in 1998, Badale and Mindenhall had transformed Blenheim Chalcot into the United Kingdom's "leading digital venture builder," having successfully built, and, in 15 instances, exited, 42 businesses across a number of sectors, including technology, financial services, sport, media, property, and education. In 2018, Blenheim Chalcot had portfolio sales of over £350 million and employed over 3,000 people. Unlike a traditional venture capital firm, Blenheim Chalcot was a "venture builder," often developing its own ideas then bringing in and supporting entrepreneurs with a range of services and support, and funding them in return for a majority equity stake (typically 80-90%). The idea was to increase the probability of success by allowing the entrepreneurs and their teams to spend less time fundraising and dealing with time consuming tasks, such as property, recruitment, legal set up, and gaining access to a client network. This enabled the entrepreneur to focus more on product and customers. The downside of this approach was that the growth of the group was somewhat constrained by the founders' own capital and their access to co-investment funds. As Badale and Mindenhall contemplated the future, they were asking themselves how they could best develop their ecosystem for building innovative businesses. In October 2018, they had opened an office in New York. They were also partnering with Imperial College London to open a 200,000 square-foot tech and innovation campus in early 2020. Should they continue on their current track? Or, should they be bolder, perhaps going public, adding new sectors, more businesses, bigger opportunities, and expanding into new geographic markets?
Vaccines for children has been a long-standing focus for the Bill & Melinda Gates Foundation, and their critical role in public health made their production an important economic and political issue. This case describes the Foundation's investment in a breakthrough vaccine manufacturing platform for the Sabin inactivated polio virus. While the new technology promised a much lower cost per dose, it also raised questions about the consequences of lowering entry barriers to vaccine production, as maintaining high quality and production standards, a strong regulatory environment were critical to protecting the integrity of the vaccine supply. The new technology also threatened to encourage more developed country vaccine manufacturers to exit the market, not an outcome the Foundation was hoping for, as they possessed the capabilities and resources to invest in future developments. It raises the question of whether vaccines are a public good, and who should be responsible for their production.
The consulting field, with its variety of different experiences and scenarios, often presents numerous challenges and conflicts for those involved. These vignettes, some based on actual situations, present a number of dilemmas in which the protagonists must determine the right course of action, often when that is not easily identifiable. These vignettes identify situations in which one's values, ethical judgment, and sense of fairness might be tested and where the road to a good resolution might not always be clear.
A sound internal control system does not only help organizations satisfy their legal and compliance obligations. It also provides assurance that an organization can achieve its objectives and reduce financial losses through timely response to internal and external risks, failures and weaknesses. This case walks through the whole process of how consultants review the internal control system of an organization in practice, from understanding client's needs and setting project objectives, defining the scope of the review, evaluating the design and operating effectiveness of the controls, to identifying and remediating control deficiencies.
This study integrates insights from Self-Determination Theory and Boundary Theory to present scenarios on how flexible workplace designs can trigger multiple motivational processes underlying gendered work/nonwork integration behaviors, and how these affect work/life conflict. We disentangle processes underlying work engagement and work/life conflict, explaining the paradoxical outcomes found with regard to gender inequality in terms of work/life performance, satisfaction, and health. Policy makers and organizations need an increased understanding and a reconceptualization of these issues, realizing that the ideal worker does not exist. Instead, a long-term perspective is needed in order to truly realize the potential benefits of flexible workplace designs for all stakeholders. Organizations need to take responsibility for preventing individual workers' depletion and stimulating the regeneration of workers' resources.
Although participation of women in entrepreneurship continues to grow, a gender-performance gap persists. While the differential inputs and values perspectives have investigated both external and internal forces that help explain this gap, neither perspective has considered an important cognitive mechanism that captures gender differences: identity. The purpose of this article is to examine the role of impostor fears in shaping entrepreneurial identity and the desire for business growth. Entrepreneurship has long been associated with masculine notions of success, which may lead women to discount themselves as 'real'entrepreneurs or successful in the context of these masculine norms. Our goal is to draw attention to women entrepreneurs' imposter fears in order to understand how women think about and construct their identity as entrepreneurs and subsequently contemplate the success and growth of their ventures. We also propose mitigating factors that can disrupt gendered norms and facilitate self-efficacy for women entrepreneurs in the pursuit of business growth.
Recent research has developed an in-depth understanding of how workers change their jobs on their own to improve their performance and well-being, a process called job crafting. This research suggests that managers, coworkers, and organizations need a better understanding of how to manage job crafting to capitalize on its benefits and reduce costs. This article will help organizations diagnose the occurrence of job crafting, recognize the differences between goal-oriented approaches to job crafting as opposed to withdrawal-oriented avoidance job crafting, and identify the seven specific types of job crafting: work role expansion, social expansion, work role reduction, work organization, adoption, metacognition, and withdrawal. We conclude with recommendations for managers, coworkers, and organizations on how to diagnose and manage job crafting.
Corporate accelerator programs-accelerators managed by or directly sponsored by one or multiple established firms-are becoming an integral part of startup ecosystems and an important startup engagement vehicle for established firms. Previous research focused either on independent accelerators or on corporate accelerator programs that one established firm operates internally. However, new accelerator models emerged recently, making the corporate accelerator phenomenon more diverse. The purpose of this article is to provide an overview of the different types of corporate accelerators, along with their objectives and characteristics in order for managers to better understand which type best fits their organization. Our insights on corporate accelerators emerged from secondary data and interviewees from companies and accelerator programs. We used these insights to categorize the programs into four corporate accelerator models that vary according to number of participants and the accelerator's management structure and explain how companies can select the right model for their objectives.
The workplace of the future focuses on how and what work is done, not where and when it is done. Thus, organizations increasingly provide new and innovative information technology (IT) to create the workplace of the future by effectively facilitating digital work. However, digital work means more than just using new, innovative IT. Along with increasing flexibility, employees also crave balance and structure when, for instance, it comes to the blurred boundaries between private and business life. Our article investigates how three organizations from diverse domains establish digital work. Based on our empirical results, we identify four major management challenges organizations need to overcome in order to introduce digital work environments effectively. Further, we identify lessons learned and derive eight recommendations for organizations to facilitate digital work.