On April 2, 2017, the two founders of Foxcore Retail were preparing for a third summer managing their small retail business in Ontario, Canada. They had spent the weekend reviewing budgeting, staffing schedules, and inventory planning for their biggest expansion to date. There was only one pressing concern that had not been solved. In the past, employees had tracked sales by hand, on paper, which led to headaches when it came to calculating sales representatives' commissions. Additionally, the two partners knew that by not documenting key information about each sale, they were missing the opportunity to collect valuable data that could provide insight into the performance of employees, events, and products. As the business grew, they were starting to notice the impact of these inefficiencies on customer service, and it was clear that this was the right time to implement a more disciplined database system.
In January 2017, the founder of Sunton Manufacturing in Wuxi, Jiangsu Province, China, boarded a flight to Cambodia. He had to tackle the performance issue of the company's garment manufacturing joint venture (JV) there-after two years in operation, it had run out of cash. After meeting with his JV partner, he concluded that the existing JV in Sihanoukville was beyond repair. He now needed to decide whether to exit Cambodia or to remain there, albeit in a different city and with a new partner. A new factory would require further investment. If he quit Cambodia, could his company survive and develop in the future?
Sichuan Haidilao Catering Co., Ltd. (Haidilao) was the leading hot pot company in the Chinese market and the largest hot pot chain of restaurants in the world. Haidilao was famous for its extraordinary customer service, which had made it a legend in the catering industry. However, on August 25, 2017, a news report with online videos revealed that mice were in the kitchen of one of Haidilao's restaurants, that dustpans and tableware were washed in the same sink, and that spoons intended for customer use were used to unclog blockages in the plumbing. How could Zhang Yong, the founder and chair of Haidilao's board of directors, respond to the crisis, turn threats into opportunities, and prevent the recurrence of such a crisis?
In 2014, Yildiz Holding, a Turkish conglomerate, had just acquired the UK-based biscuit maker United Biscuits, the premium chocolate maker Godiva Chocolatier Inc., and the US-based company DeMet's Candy Company. As Yildiz Holding moved forward in pursuit of its goal of dominating the global confectionery market for biscuits and snacks, senior management members were questioning whether the company's business model (which had brought it success for many years) would continue to be viable, and particularly, what the implications of its global expansion were for its diversified business model.
This note can be used at the undergraduate or graduate level to accompany a case on strategy or international business. It is especially helpful when analyzing an emerging market company expanding into developed economies and the challenges associated with this.
Founded in 1969 as a small operation, Otsuka Kagu, Ltd. became Japan's largest furniture retailer and was listed on the Tokyo Stock Exchange in 1980. A membership program in 1993 managed to revitalize the company's sales at a time when Japan was in a recession. Years later, after sales began to decline and the founder was convicted of insider trading in 2008, the presidency was transferred to the founder's daughter, who applied a more customer-centric model to the business. This change infuriated the founder, who removed his daughter from the company's leadership. After persistently poor performance, the company's board of directors reinstated the founder's daughter; she then launched a notorious public battle for control of the company. Despite new environment-responsive strategies, revenues continued to decline to the point of the company declaring its biggest loss by the end of 2017. In August 2018, the company reported a net loss of ¥2.3 billion, with the company's shares trading at their lowest level ever. Facing financial distress, the company had to look both inward and outward to determine its next steps.
In January 2017, the online cake company Ohmycake.in, which was started two years earlier by a young entrepreneur in Kerala, India, ran into trouble after a series of successful experiments. Adding to the company's problems, customers were becoming more demanding and the competition was catching up. The entrepreneur had hired a new operations executive to help solve the company's business strategy and scalability issues, including a current problem: whether to accept or reject demanding custom orders that were appearing in the company's online order management system.
In 2015, the corporate affairs executive of the leading Swiss agribusiness company Syngenta Crop Protection AG (Syngenta) and founder of the next-generation innovation platform Thought for Food, faced a dilemma about whether to register Thought for Food as an independent non-governmental organization, or to keep it housed within Syngenta. The choice had implications for Thought for Food's potential for future growth and for its impact on global food-security challenges. To grow within Syngenta, Thought for Food would have to close the gaps between its open innovation practices and Syngenta's traditional operations. To grow independently, it would have to develop a business plan that assured financial security. In either case, Thought for Food had to continue growing in relevance to its non-financial stakeholders, like the student participants and expert judges in its annual innovation challenge and summit.
This note addresses the key concepts of food security and sustainability, non-linear innovation, and open innovation models such as incubators and accelerators.
By August 2015, Swiggy, an on-demand food delivery start-up, had been operating for almost one year in Bengaluru, India. The exponential growth of the business was expected to persist. However, Swiggy was incurring a loss, or a cash burn, on each delivery it was making. The company's current cash reserves were also drying up, and its chief executive officer had been unsuccessful in attracting new venture capital funding to finance the cash burn estimated for the next four quarters. Swiggy must figure out how to pursue its growth without the injection of any fresh funds.
This mini-case set describes the challenges facing the new leadership of Richmond's Virginia Museum of Fine Arts (VMFA) to revitalize and save the Museum. Alex Nyerges and Michael Taylor arrived in 2006 at a key point in the institution's history. Membership was flagging at around 5,000, and a major construction project was $20 million over budget. Residents of Richmond felt increasingly disconnected from the museum. Some even viewed its collection as irrelevant to modern life. Nyerges and Taylor faced difficult decisions regarding membership fees, museum hours, and the need to establish community engagement. As with other museums across the nation they also faced the daunting challenge of attracting younger patrons and families while preserving the older donor base. This case set is suitable for a class in Change Management, Designing for Growth, or any Nonprofit or Leadership class.
Sichuan Haidilao Catering Co., Ltd. (Haidilao) was the leading hot pot company in the Chinese market and the largest hot pot chain of restaurants in the world. Haidilao was famous for its extraordinary customer service, which had made it a legend in the catering industry. However, on August 25, 2017, a news report with online videos revealed that mice were in the kitchen of one of Haidilao’s restaurants, that dustpans and tableware were washed in the same sink, and that spoons intended for customer use were used to unclog blockages in the plumbing. How could Zhang Yong, the founder and chair of Haidilao’s board of directors, respond to the crisis, turn threats into opportunities, and prevent the recurrence of such a crisis?
On April 2, 2017, the two founders of Foxcore Retail were preparing for a third summer managing their small retail business in Ontario, Canada. They had spent the weekend reviewing budgeting, staffing schedules, and inventory planning for their biggest expansion to date. There was only one pressing concern that had not been solved. In the past, employees had tracked sales by hand, on paper, which led to headaches when it came to calculating sales representatives’ commissions. Additionally, the two partners knew that by not documenting key information about each sale, they were missing the opportunity to collect valuable data that could provide insight into the performance of employees, events, and products. As the business grew, they were starting to notice the impact of these inefficiencies on customer service, and it was clear that this was the right time to implement a more disciplined database system.
Since its founding in 2014, Malus Analytics International (MAI), a US-based player in the analytics consulting industry, had focused on helping its clients move to cloud-based computing and database management. However, by 2018, this strategy had left many of MAI's customers vulnerable to “Shadow IT,” an information technology (IT) phenomenon where employees used computing devices, data, and software that were not provided, approved, or sanctioned by an organization’s IT department for work. Twenty of MAI’s top clients had experienced data breaches as a result of the use of unsanctioned applications. In response, MAI's management team needed to develop a collaborative plan to help ameliorate the natural tensions between the chief information officers and the end-users. The plan needed to balance security requirements and resource management with innovation and flexibility.
In 2014, Yildiz Holding, a Turkish conglomerate, had just acquired the UK-based biscuit maker United Biscuits, the premium chocolate maker Godiva Chocolatier Inc., and the US-based company DeMet’s Candy Company. As Yildiz Holding moved forward in pursuit of its goal of dominating the global confectionery market for biscuits and snacks, senior management members were questioning whether the company's business model (which had brought it success for many years) would continue to be viable, and particularly, what the implications of its global expansion were for its diversified business model.
This note can be used at the undergraduate or graduate level to accompany a case on strategy or international business. It is especially helpful when analyzing an emerging market company expanding into developed economies and the challenges associated with this.