In 2016, the founder and managing director of Smaart Home Furniture, a furniture manufacturer in southern India, faced a dilemma. Although the business remained profitable, it was facing stiff competition from local players, branded and non-branded players, and online retail stores. The founder and managing director was considering extending his manufacturing business by also offering sofa servicing, which would require changes in the company’s production, organization, and management. It would also require a rethinking of the firm’s approach and interaction with its consumers. Should he start offering services? If so, should sofa servicing be launched as a separate entity or as part of the offerings of the existing manufacturing unit?
PowerChina was an integrated construction group that provided investment and financing, planning design, engineering construction, equipment manufacturing and operations management for hydraulic and hydropower projects and infrastructure. According to the company’s data, PowerChina had over 50 per cent of the medium- and large-sized flood mitigation and water supply reservoir construction market worldwide. The aim of the company was to build a world-class comprehensive construction investment group that was globally competitive and of high quality and efficiency. However, the integration of international business and localization in certain markets combined with international and domestic development meant that PowerChina needed to remain cautious and vigilant. PowerChina’s managers were confident with the prospect of its international expansion to accelerate the company’s growth rate, but it was still necessary for them to seriously consider the strategy they should choose in the next phase of their internationalization, and how to upgrade their risk management system in these changing times.
In March 2018, Ontario Education Collaborative Marketplace (OECM) was an unlikely high-growth company. From its humble origins as a collaborative experiment to create efficiencies for the education sector—an experiment that had lost money and had to be financially supported by the government—the organization had adopted the culture of a high-growth start-up. OECM facilitated the procurement by universities, colleges, and school boards of everything from pencils to computers. By pooling orders, OECM was able to provide better prices from suppliers, thereby saving taxpayer dollars. OECM aimed to become “the Amazon of education sector” procurement. The total education sector procurement market in Ontario was CA$4 billion. OECM currently facilitated CA$255 million in transactions, but it was looking to control CA$2 billion of the market. Having become profitable under the leadership of a new chief executive officer, and newly independent of government support, OECM’s management was now challenged to continue to transform the organization’s public-sector culture in order to achieve high growth. What strategy should OECM use to achieve its aggressive growth targets? How should OECM scale up?
The chairman of Fuyao Glass Industry Group Co. Ltd. was pleased with his company’s financial results for the first half of 2018. Two years earlier, the organization’s subsidiary, Fuyao Glass America Inc., had completed the construction of the largest auto glass manufacturing facility in the world, which was located in Moraine, Ohio. Its revenues in the first half of 2018 had surged 27 per cent compared with the previous year, while groupwide revenues of the organization had grown 16 per cent. Fuyao Glass America Inc. had converted its loss of ¥65 million into a profit of ¥48 million. With deteriorating relations between the governments of China and the United States (U.S.) indicating an uncertain future, some social pundits were criticizing the organization for deserting China by investing overseas. The chairman remained defiant and confident in his strategy, but how would the company’s U.S. expansion and global strategy be affected by recent developments in the relationship between China and the United States?
By the end of 2018, a recent business program graduate had found that his first social enterprise had been a success, and he wanted to start his next venture in the Kenyan agricultural market. He identified three challenges in this area—climate change, lack of market access, and ineffective education systems—and he wanted to try to address one of these with a new business. Case A explores how he needed to perform a market assessment to understand the opportunities and constraints of the Kenyan market, identify the resources and processes that would be available to him when starting the business, and form strategies for performing customer research.
With his primary research on the Kenyan agricultural market completed, the entrepreneur needed to analyze the new data using design-thinking frameworks, and then formulate a value proposition that used his resources and processes to address the large-scale improvements identified in Case A.
A management science professor had an unpleasant experience with a hotel she stayed at in New York City. Consequently, she wanted to figure out if hotel ratings were enough to recommend a hotel, or if customers’ text reviews could be used as more important and accurate indicators of customers’ hotel experiences. The exercise serves as an introduction to the topic of text analytics—specifically, sentiment analysis—and introduces the concept of text mining and the importance of dealing with unstructured datasets. Much of the exercise focuses on the method and rationale behind document indexing and the subsequent weighting of the indexed terms through term frequency–inverse document frequency. Textual data from customers’ hotel reviews are provided to apply the text mining techniques and to provide insight for a better decision-making process that would help the professor in her next hotel booking.
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.
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.
Kewal Balana, Proprietor of Ganga Enterprises (Commission Agent firm) at Sriganga Nagar, Rajasthan, a province in western India, was worried about the government decision of abolishment of 2 % commission in May 2018, in 'Kachi-Aadat' line of business, due to the direct online transfer of money to farmer's bank account. Due to the abolishment of commission the firm suffered a net reduction in profit of INR 1 million, 2% of INR 50 million of commodities sold by the business to the government every year. More than the abolishment of commission, he was concerned about the recovery of interest on credit which he had been providing to approximately 400 farmers for more than 40 years. Ganga enterprises provided short term credit to farmers on interest rates ranging from 15% - 18%. Considering the above situation, Bhushan Kumar, younger brother of Kewal Balana, wanted to quit the Kachi- Aadat line of business and move to Pakki-Aadat line of business. This would help the firm to sell commodities directly to the industrial unit and charge 1% commission on net sales. His son Shobhit Kumar Balana on the other hand wanted to enter into an entirely new line of business where in the firm would buy the commodities, store them and sell them later when the prices increase (stock trading). He wanted to enter the business of stock trading using his knowledge of agricultural market and commodity derivatives and trading.
This case asks students to review 10 columns of financial data drawn from 10 different companies and to match each with an industry in a list of 10 industries.
This case represents an amalgam of commonly reported experiences people have when interacting with others from different social class backgrounds and positions of power. The A case takes the perspective of Dan Marlow, who grew up with access to financial and cultural resources and has built his own construction company. He has just fired Robby Gomez, an otherwise great worker, for chronic lateness, and he wonders why he is having trouble motivating and keeping employees. The B case takes the viewpoint of Gomez, who works hard but has trouble getting to work on time because of practical difficulties like car trouble and obligations to family and others in his community. By comparing the perspectives and experiences of these two protagonists, students learn to see how our own experiences and cultural knowledge can inform our decisions and the employee programs that we design. Because we are not aware of cultural norms that we have not personally experienced, we need to include a diversity of viewpoints in the decision-making and design process in order to design effective systems and have effective interactions across differences.
B Case to case UV7765 This case represents an amalgam of commonly reported experiences people have when interacting with others from different social class backgrounds and positions of power. The A case takes the perspective of Dan Marlow, who grew up with access to financial and cultural resources and has built his own construction company. He has just fired Robby Gomez, an otherwise great worker, for chronic lateness, and he wonders why he is having trouble motivating and keeping employees. The B case takes the viewpoint of Gomez, who works hard but has trouble getting to work on time because of practical difficulties like car trouble and obligations to family and others in his community. By comparing the perspectives and experiences of these two protagonists, students learn to see how our own experiences and cultural knowledge can inform our decisions and the employee programs that we design. Because we are not aware of cultural norms that we have not personally experienced, we need to include a diversity of viewpoints in the decision-making and design process in order to design effective systems and have effective interactions across differences.
A group of Canadian parents wanted the Canadian government to create a redress system related to Canada's no-fly list, which affected some of their young children whenever they flew. The parents formed an advocacy group called the No Fly List Kids group in 2016, and the group undertook various campaigns-including innovative guerrilla marketing campaigns and uses of both digital and traditional marketing-to highlight the issue of Canadian children being identified as potential security risks before they boarded flights within Canada. Over a three-year period, the group worked to raise awareness of the issue and to pressure the Canadian government to create a redress system similar to that in the United States. Its efforts eventually resulted in the allocation in 2018 of CA$81.4 million dollars for a redress system. In November 2018, the group was scheduled to meet members of the Senate, and it had to decide what short-term and long-term activities to undertake to achieve its stated goal of having a functioning redress system that would help all those affected by the no-fly list-not only children of group members, but all people, young and old, from various backgrounds.
In 2018, Volkswagen Group's newly appointed chief executive officer renewed the company's commitment to Strategy 2025, an ongoing plan intended to radically transform the German automaker. Volkswagen was being challenged by tectonic changes in the automotive industry, including the phasing out of the long-standing internal combustion engine, ongoing digitization, the entry of new competition from technology companies, the introduction of electric vehicles, and the launch of ride-sharing applications. Strategy 2025 was designed to reshuffle the company's existing formal and informal structures and restructure the automaker into a nimble, agile, and innovative corporation ready to face the realities of mobility in the digital age. The new chief executive officer faced huge expectations concerning the effectiveness and sustainability of Strategy 2025. Was the automaker doing enough to transform into a competitive mobility company?
Building on his father's legacy, Omar Alghanim (MBA 2002) had been working on strengthening a performance-driven culture based on meritocracy in the family business, Alghanim Industries. The task had been particularly challenging because of traditional Middle East practice of relying on relationships and influence to conduct business. Omar's vision attracted and empowered like-minded employees who were rewarded on merit and who delivered on the firm's mission of providing excellent service to its customers. Together, they revamped the company's performance and compensation system and established a well-structured control and compliance mechanism. The next challenge for Omar was to transform the workforce from a mono-culture, male-dominant expat community to a diverse mix of people, cultures, backgrounds, and viewpoints. In particular, he needed to find a way to attract talented women and local Kuwaitis to become part of his organization.
By 2019, two-sided online platforms (or marketplaces) were among the highest-growing internet startups around. These marketplaces sought to match suppliers of assets for rent, physical products, or services with customers demanding them. Among the most notable two-sided platforms that quickly reached millions of customers were Airbnb, Etsy, and Uber. They offered short-term property rentals, handcrafted goods, and car rides, respectively. As two-sided markets grew past the 1 million customer mark, challenges of typical large businesses appeared. Among the challenges facing Airbnb, Etsy, and Uber were maintaining the fast pace of customer acquisition, reducing customer retention problems, and avoiding regulatory issues. How did these platforms balance their fast growth and massive size with so little time to adapt to ever mounting challenges? How did they adapt and change their customer acquisition tactics to grow from 1 million to many millions of customers so quickly? This is the third and final instalment of the Airbnb, Etsy, Uber trilogy.