This is a two-part case series. Case A begins in October 2012, when Encompass Singapore has introduced innovative ways to increase the capacity of its facility to cope with its fierce growth over the past few years in the Pay-tv industry. The company has captured over 50% of the market for outsourced digital playout services in Asia. The sheer speed of growth that Encompass Singapore is experiencing calls for an innovative, solutions-driven approach to almost all aspects of the business. Growth in the media industry is costly and capital intensive. At the same time, the group is facing increased competition. Process innovation has been critical in supporting the growth of the company since 2009, but can that alone continue to fuel double-digit growth? Case B is set in April 2019, when the media industry has shifted gear, and Pay-tv demand is declining. Online television content and Video on Demand services have instead started to see a growing demand in the market and Encompass is forced to adjust its strategy to cope with changing industry and market. Can process innovation continue to support the growth of the company amidst technology disruption and changing trends? What can be Encompass's growth strategy moving forward?
In 2019, the general manager of the Xiamen branch of Eastern Lotus Bank was facing difficulties overcoming customer-introduced variability, which significantly influenced the efficiency of the bank's front-office service. She needed to analyze and summarize the different types of customer-introduced variability. Then she had to identify potential strategies that would enable the bank to accommodate this customer-introduced variability while maintaining a high-quality customer service experience. She also needed to decide how to allocate and arrange the limited human resources at the bank efficiently and effectively. To make these decisions, she had to systematically evaluate the efficiency and effectiveness of the front office under both pooled- and separated-resource allocation scenarios. For instance, how long did customers have to wait for services in each different resource allocation scenario? Moreover, how well were the limited human resources (staff) utilized under each scenario?
In March 2016, the chief executive officer (CEO) of ICICI Bank Ltd. (ICICI), one of the largest private sector banks in India, was accused of non-disclosure and exploitation of conflict of interest by an investor. The CEO, who had successfully led the bank since 2009, had been featured in two Forbes lists of the most powerful women in 2017. Initially, the ICICI board of directors supported the CEO for two years, until March 2018, when Indian regulatory agencies including the Central Bureau of Investigation opened investigations. In January 2019, following the findings of an internal investigation report by ICICI, the newly appointed chairman of the ICICI board terminated the CEO over non-disclosure of conflict of interest. The board chairman also demanded the return of all bonuses and stock options received by the CEO since her appointment in 2009. Was the ICICI board chairman right to take strict action against the CEO for non-disclosure of conflict of interest? What could he do to improve governance practices at ICICI?
This case describes UMM Bank in Indonesia, a service operation that is working to improve profitability by selling more services to its customers. To achieve this goal it is using a cross-selling approach entitled the Personalized Plan Program (PPP). However, there are several challenges with the PPP initiative. The cornerstone of the PPP is a free, one-on-one meeting between the customer and a bank sales agent, if the customer responds by providing some information online within a 15-day promotional period. But these meetings often must be scheduled after the promotional period, seemingly due to the amount of time the bank's support staff needs to prepare Personalized Plans for customers once they enter their financial information online. UMM Bank sales agents imply that clients are frustrated with the delays and this may be hampering the success of the entire PPP initiative. Students will learn that initiatives like cross-selling can stress a service system's operations. Therefore, it's important to understand the operational levers of capacity, demand management, demand variability, and pooling to help anticipate and overcome these challenges.
A discussion between two hedge fund managers is used to examine the merits of investing in Wesfarmers, an industrial conglomerate, following a transformative acquisition of a retail business called Coles, in 2007. Coles had been underperforming and was open to bids from Private Equity firms. It was a classic turnaround story. The case is brought to life as Wesfarmers has announced a demerger of Coles in 2018, hence it enables a comprehensive evaluation of the acquisition. The operation turnaround of Coles has been spectacular and the share price ten years on has also done well. However, the case stresses the importance of capital discipline in acquisitions and what optically can look like a good result, on closer examination may not really be the case. It also brings into the question of risk versus reward. The case examines the ways in which the success of major acquisitions can be assessed and the methods through which conglomerates can operate successfully. Study of conglomerates is in response to evidence of trends towards business diversification, as a means of delivering growth objectives.
Continuation of Case A, IMD988 A discussion between two hedge fund managers is used to examine the merits of investing in Wesfarmers, an industrial conglomerate, following a transformative acquisition of a retail business called Coles, in 2007. Coles had been underperforming and was open to bids from Private Equity firms. It was a classic turnaround story. The case is brought to life as Wesfarmers has announced a demerger of Coles in 2018, hence it enables a comprehensive evaluation of the acquisition. The operation turnaround of Coles has been spectacular and the share price ten years on has also done well. However, the case stresses the importance of capital discipline in acquisitions and what optically can look like a good result, on closer examination may not really be the case. It also brings into the question of risk versus reward. The case examines the ways in which the success of major acquisitions can be assessed and the methods through which conglomerates can operate successfully. Study of conglomerates is in response to evidence of trends towards business diversification, as a means of delivering growth objectives.
Jai Vakeel, a nonprofit organization in India, serves individuals with Intellectual Disability (IQ below 70). The organization was founded by the parents of a child with Down Syndrome, and they (and their next generation) steadily built the organization over 60 years to the become the largest such organization in India. Yet the organization served only some 1000 children annually when there were millions more needing the healthcare, education and skills to lead a decent life with ID. This case describes the evolution of the organization from the founder's family (six decades) to the first CEO from outside. As Archana Chandra appointed in 2013 brings about several changes to the organization she wonders how to scale the organization from the current 1,000 people it serves annually to at least 10,000 and then to the many millions who are in need.
The case describes the 25-year transformation of Peabody Essex Museum, which was created in 1993 by the merger of two sub-scale predecessor cultural institutions, operating since 1799, in Salem, Massachusetts. Dan Monroe, its founding CEO, began a process of building the institution, which, when he arrived, had a budget of $3 million and an endowment of $23 million in 1993, as compared to a budget of $33 million and an endowment of $650 million in 2018. Monroe made changes in practically every aspect of the museum's operations as PEM broke into the ranks of the top 15 museums in the U.S. All of this was happening at a time when museums in general had lost some 20% in visitation as a result of significant shifts in population demographics and what they understood by "cultural experience." As Dan Monroe handed off the reins of an institution that had successfully run counter to trend to his successor in 2019, the trustees of the museum and its new CEO faced the challenge of how to keep the positive momentum going-and how potentially to reinvent PEM again for a rapidly changing world.
By the late 2000s, rapid changes in the telecommunications industry forced AT&T's management team to take on a task that CEO Randall Stephenson called the "biggest logistical challenge" they had ever seen: retraining 100,000 workers by 2020. In 2012, internal company analyses found that AT&T's workforce would lack the skills it needed to fulfill emerging job requirements. AT&T responded by creating "Workforce 2020," a company-wide initiative that sought to address potential skill shortfalls. The initiative aimed to transform AT&T's workforce by implementing multiple changes, such as redesigning job roles, developing new educational curricula with Udacity, and incentivizing employees to retrain themselves for high-demand careers. Some gave high praise to the "Workforce 2020" model, going so far as to call it a new "social contract" between employers and employees. Others worried that the new program was systematically disadvantaging specific groups of workers. In 2018, AT&T rebranded Workforce 2020 to "Future Ready," signaling the company's commitment to retraining its workforce beyond 2020.
This case asks students to consider how to prioritize goals when placed in a new leadership role. In August 2014, Meredith "Max" Hodges became the youngest Executive Director (ED) in the Boston Ballet's 51-year history. In her first year, she was able to claim several early wins, including key adjustments to ticket pricing, new hires, and updated marketing and box office data analysis. But at beginning of her second year, Hodges received disheartening news-a developer had purchased one of Boston Ballet's school locations and was planning to terminate Boston Ballet's lease. Hodges already had several major projects planned, including a major website overhaul and a revamped performance schedule. However, without a new school location, Boston Ballet's revenue would take a hit. Given Boston Ballet's limited resources and the urgency of the terminated school lease, how should Hodges reprioritize her plans for the upcoming year?
This case focuses on the supply chain strategy of Walmart. Set in 2019, it provides a detailed description of the company's supply chain network and capabilities. Data in the case allows students to compare Walmart's source of competitiveness with those of other retailers-both online including Amazon.com and traditional brick-and-mortar retailers, such as Target-to develop insights into the management of a large, complex, global supply chain network. As competition between Walmart and its online and offline competitors heated up, a key challenge for the company's president and chief executive officer was deciding what changes made to Walmart's expanding supply chain would best support its strategic objectives. What supply chain capabilities would Walmart need as its business model continued to evolve?
In 2018, the Singapore-based telecommunication operator StarHub Ltd. (StarHub) acknowledged that in 2017 its total revenue was relatively flat and its net profit had declined. In the face of rising competition and a slowing global economy, the company needed to explore new sources of revenue growth. Two areas of growth seemed promising. The first area involved the launch of StarHub's smart retail analytics for small and medium enterprises in the retail food and beverages industry, which had been experiencing a high churn rate. The second area would apply StarHub's new robotics and automation solutions in the labour-intensive hospitality industry, which suffered from an oversupply of properties and would likely see exits and consolidation. StarHub needed to choose between the two investment options.
By February 2019, General Motors Company (GM) had evolved into one of the three dominant North American automobile manufacturers, selling over 10 million vehicles annually. However, GM’s global market share had been declining over the previous 10–15 years due to intense competition in the small and mid-sized car segment from new entrants with a cost structure unlike global competitors and a product marketing strategy more focused on price than quality products. This development forced GM to rely heavily on sales of its pickup trucks and sport utility vehicles to increase gross margins that had been consistently below industry averages. At this point, the industry was also shifting toward a new automotive platform and related business model dominated by autonomous and electric vehicles. GM had to find a way to transform its current business and profit model to meet the needs and trends of an emerging electric and autonomous vehicle industry.
Zimmerli of Switzerland is a small Swiss brand that offers the highest quality underwear for men and women in the luxury segment. It has a loyal customer base including celebrities from all over the world. The case describes the dilemmas Zimmerli's CEO Marcel Hossli faced in January 2018, when deciding on Zimmerli's future strategy and how the company should continue to innovate to sustain brand desirability in a disrupted environment. In 2012, Zimmerli had decided to rely less on B2B distribution through wholesalers and to follow a multichannel strategy with direct sales channels (B2C). Since then, it has opened 15 mono-brand boutiques in Europe and Asia, as well as an e-commerce platform. As a result, Zimmerli grew 8% between 2011 and 2017. However, physical stores were expensive and impacted Zimmerli's net margin (0%-5%). Zimmerli faced the challenge of rejuvenating its customer base, without losing its traditional, older customers. In the past, Zimmerli had not invested much in advertising. Although it had a presence in various social media channels, it had few followers and not much user-generated content. Could Zimmerli attract new customers and gather data about their preferences on underwear through digital channels? So far, it had focused on product innovation by offering the highest quality products "Made in Switzerland." This USP came at a high cost and restricted further growth, due to production capacity constraints and a decline in suitable suppliers. Another challenge was Zimmerli's strategy of making investments out of cash flow only. The case stimulates discussion on how luxury brands can innovate along the customer journey using digital technologies. Zimmerli's strengths, its gaps, and its strategic options going forward can be explored using frameworks such as STEEP, Unique Competing Space (UCS) and the New Customer Journey.