AWARD-WINNING CASE - Continuous Improvement: the Journey to Excellence Category, 2019 European Foundation for Management Development (EFMD) Case Writing Competition. In 2016, the supply chain manager at Northwestern Memorial Hospital recognized that many problems occurring throughout the hospital originated at the hospital receiving area. Some problems had reached epic proportions: overstocking at par locations, stocking at temporary locations, misplaced items, expired items, and inaccurate inventory records. Most of the problems could be traced to the receiving area’s procedures and average three-day dock-to-stock lead time. A value-stream mapping kaizen event revealed that a big contributor to the long lead time was the receiving area’s reliance on batch-oriented processing. The supply chain manager recognized the severity of the situation and urgent need to do something to improve operations in the receiving area and shorten the lead time from package arrival to final delivery. He felt that reducing the lead time from three days to one day would reduce or eliminate many of the problems, and it seemed a reachable goal. The supply chain manager intended to approach this challenge using the lean production practices he had successfully employed elsewhere.
In late September 2017, the country manager of Garrard Japan was reviewing an interim strategy to deal with emerging, negative views on the ongoing globalization of industry and commerce. Garrard Japan was a wholly owned subsidiary of Garrard S.A., a leading packaged foods company. The European-based multinational enterprise had been a major contributor to globalizing trade and commerce, and the survey results had highlighted a Japanese view that global companies were concerned more with profits than with meeting the needs of local communities. The country manager wondered whether the strategy developed by his team to change these perceptions was adequate. He was also considering how to execute the strategy and who should pay for it: Garrard Japan or Garrard S.A.?
In June 2018, Ow Fook Chuen, the Accountant-General of the Accountant-General's Department (AGD), was in charge of the Accountant-General's Department (AGD) as it sought to improve through innovation and the use of technology. Being the steward of public sector finance transformation, AGD partnered public sector agencies to uplift the role of finance from being the custodian of public finance, to a strategic partner who empowers decision-making. In its role, AGD had to handle various financial transactions related to the government and its vendors, and process the payroll of all government officers. Staff from AGD were seconded to work closely with other public sector finance professionals in the finance and internal audit departments of various public sector agencies in order to implement key initiatives. To improve the accuracy and efficiency of its processes, AGD had reviewed new technologies and spoke to private sector companies on their experiences. It linked many individual systems used by various ministries across the Whole-of-Government (WOG) into a central data analytics platform to enable public sector agencies to perform their jobs more effectively and efficiently. Despite facing a few challenges, Ow knew that the data analytics journey would help AGD strengthen finance functions across WOG.
In 2013, India passed a law to make corporate social responsibility mandatory for large companies. The case examines the context in which the CSR legislation was introduced and how Tata Motors Ltd (TML) responded to it. Case (A) explores the meaning of corporate social responsibility and the question of whether a company should put community projects before profits. Case (B) examines Tata Motors' CSR programmes in depth and provides an opportunity to consider their impact. Students are challenged to come up with their own ideas for how the philosophy of "more from less for more" can be used to address issues related to poverty and lack of education in India.
Supplement to case IN1581 In 2013, India passed a law to make corporate social responsibility mandatory for large companies. The case examines the context in which the CSR legislation was introduced and how Tata Motors Ltd (TML) responded to it. Case (A) explores the meaning of corporate social responsibility and the question of whether a company should put community projects before profits. Case (B) examines Tata Motors' CSR programmes in depth and provides an opportunity to consider their impact. Students are challenged to come up with their own ideas for how the philosophy of "more from less for more" can be used to address issues related to poverty and lack of education in India.
Baabuk, a Swiss based start-up with a branded offering in wool footwear was founded in 2014 by the married couple Dan and Galina Witting. Since then and to 2018, the founders have grown the firm to now offer three product lines of wool footwear, employ 5 staff and book CHF 1.4 Mio net revenues from selling its products across online, distributor and retail channels. The case introduces Baabuk's history, current business and financial situation. The case also highlights the competitive environment with specific focus on Allbirds, a venture-capital backed US start-up. Allbirds has a similar core product to Baabuk. Whilst Baabuk has remained self-financed, Allbirds has raised a number of funding rounds with a most recent valuation of US1.4bn. The case presents the founders in a position where they feel the potential of the product has been clearly demonstrated but also face an increasingly competitive environment. Their primary concern is to formulate the right channel and pricing strategy, but they are also considering external investment to help scale the business. They are in a dilemma as to how to take Baabuk forward and wonder whether they are asking themselves the right questions.
The senior vice-president for sustainable investing at the U.S.-based Pax World Funds, a leader in socially responsible investing, needed to identify and invest in companies for the company's Pax Ellevate Global Women's Leadership Fund, an investment fund that promoted labour rights through gender equality. The fund had more than US$200 million in assets under management, a 25 per cent one-year rate of return, and a three-year annual rate of return of 10 per cent. In June 2018, a newly hired analyst was asked to evaluate a company to determine its suitability as a potential gender-lens investment target for the fund, using specific socially responsible investing criteria. She wondered how she should evaluate the company. What characteristics would make it suitable as an investment target for the fund?
The senior vice-president for sustainable investing at the U.S.-based Pax World Funds, a leader in socially responsible investing, needed to identify and invest in companies for the company's Pax Ellevate Global Women's Leadership Fund, an investment fund that promoted labour rights through gender equality. The fund had more than US$200 million in assets under management, a 25 per cent one-year rate of return, and a three-year annual rate of return of 10 per cent. In June 2018, a newly hired analyst was asked to evaluate a company to determine its suitability as a potential gender-lens investment target for the fund, using specific socially responsible investing criteria. She wondered how she should evaluate the company. What characteristics would make it suitable as an investment target for the fund?
Emsad, a company in the oil and gas industry, needs to improve its safety record. The company has safety systems and safety professionals but has not established safety as a core value. Safety is based on compliance and enforcement and production is often seen as more important than safety. The company is seeking a major new client and undergoes a safety audit as part of the client's qualification process. The audit reveals various issues and now Emsad must decide what needs to change to improve safety performance.
Supplement to case TB0551 The 2014 Health, Safety and Environmental (HSE) audit by Smith Overland provided an impetus for change. At the time, Emsad's various clients would often try to get Emsadto adopt new safety programs for their specific contracts. Abdulatif Al Numairy, Emsad's CEO, explained the thinking at that time: We decided that we would not do something just for one client. I do not agree if the enhancement or the program is only for the client because we will never get the maximum return. If every client wants it done their way, we will not be successful. We decided that we should try to bring the whole company and even the whole industry to a higher level of performance. Success willbreed success.... Smith Overland agreed and supported a company-wide program. They encouraged us to get other clients on board.
In 2012, just before the Christmas holiday season, a 13-year-old girl, McKenna Pope, filed a petition of complaint to Hasbro, a leading North American toy manufacturer. She wanted to end gender stereotypes in children's toys. Hoping to fulfill her younger brother's Christmas wish, Pope realized that there was only one pink and purple variant of the Easy Bake Oven available in the market. The oven was viewed as gender specific (only for girls) making boys reluctant to play with it. Even the commercials and the packaging of the toy featured only girls, creating a reluctance among young boys to play with it. Pope decided to write to Hasbro with the support of an online collaborative platform called change.org. The petition questioned Hasbro's product planning and created awareness about the firm's gender based marketing strategies. Surprisingly, the petition gathered support from not only parents, but also from some of America's culinary experts who voiced their concerns about creating a divided culture.
India's airline industry was an oligopoly, with six major players in the market. IndiGo, launched in 2006, had become India's largest airline and a dominant player, after having taken advantage of market conditions, including a rise in per capita income that led to increased demand for air travel. However, in 2018, after a decade of consistent profitability, IndiGo was experiencing a decline in profits that was affecting its share price. The airline's management needed to consider how the company could sustain its market-leading position over the long term and even increase profits, while accepting the minimal control it and its competitors had over ticket prices, amid an atmosphere of rising costs for aviation fuel and personnel costs.
Founded in 2008, Harsh Electricals was a supplier of electrical goods and home appliances to retailers in three states of southern India. After the company's first few years of success and high profitability, the founder observed a steep decline in profits. In 2013, the founder was considering shifting the business to manufacturing and supplying air coolers, but needed to build a business plan that addressed the costs of manufacturing, the break-even point, and the new venture's projected financial statements.
India’s airline industry was an oligopoly, with six major players in the market. IndiGo, launched in 2006, had become India's largest airline and a dominant player, after having taken advantage of market conditions, including a rise in per capita income that led to increased demand for air travel. However, in 2018, after a decade of consistent profitability, IndiGo was experiencing a decline in profits that was affecting its share price. The airline’s management needed to consider how the company could sustain its market-leading position over the long term and even increase profits, while accepting the minimal control it and its competitors had over ticket prices, amid an atmosphere of rising costs for aviation fuel and personnel costs.
Founded in 2008, Harsh Electricals was a supplier of electrical goods and home appliances to retailers in three states of southern India. After the company’s first few years of success and high profitability, the founder observed a steep decline in profits. In 2013, the founder was considering shifting the business to manufacturing and supplying air coolers, but needed to build a business plan that addressed the costs of manufacturing, the break-even point, and the new venture’s projected financial statements.
This case study describes Tieqilishi (TQLS) Group's corporate social responsibility initiative in the Liangshan Yi Autonomous Prefecture in Sichuan, China. Case A, set in 2016, describes the poverty-stricken Liangshan prefecture. Famous for 'cliff villages' (villages on top of high mountains accessible only via ladders on steep cliffs), Liangshan had the largest population of Yi ethnic people, who lived in the autonomous region governed by their own set of traditional customary laws. Inhabiting remote mountainous areas, the isolated Yi people were plagued by poverty, illiteracy, drug abuse and AIDS. Lei Wenyong, Chairman and Founder of TQLS, had to decide whether TQLS should participate in the poverty alleviation program at Liangshan. Headquartered in Chengdu, Sichuan, TQLS was a leading enterprise in China's agriculture industry, specialising in animal husbandry and the production of animal feed and processed food. TQLS had a history of making charitable contributions to society in the past, but investing in Liangshan would require careful consideration.Case B traces TQLS senior management's decision to proceed with the development of a pig farming industry in Liangshan in 2016, and the many challenges they faced along the way, such as stringent environmental regulations, delays in obtaining government loans, poor transport infrastructure and manpower shortages. Case C is set in 2017, and describes the short- and long-term measures undertaken by TQLS to overcome those challenges. The company's CSR projects in Liangshan proceeded well, and were marked by the co-founding of the Liangshan Commercial Poverty Alleviation Institute with the local government, collaborations with universities, setting up of training centres and Yi Cultural Study Centres, and plans to build primary schools in the villages. In this final part of the case, Lei came to the realisation that a more effective poverty reduction approach could be achieved through collaboration with other companies.