In 2015, the chief executive officer of Natco Pharma Limited, a commercial manufacturer of pharmaceutical drugs in India, needed to raise funds either through debt or equity to meet the company's capital expenditure and working capital requirements of ₹3.41 billion. The company could finance a loan at an interest rate of 12 per cent or raise funds through public deposits at an interest rate of 13 per cent. The company could also use equity to raise the requisite funds through either a rights offering or a seasoned equity offering. The chief executive officer needed to present his recommendation to the board of directors the following week. Which option should the company adopt?
As a pioneer and leading competitor among China's online travel-service providers, Ctrip.com International, Ltd. (Ctrip) had successfully integrated technology into China's rapidly growing travel industry by 2017. The company's platform provided a comprehensive set of travel services including hotel reservations, flight and train ticketing, vacation packages, business-travel management, and dining reservations. Praised in the industry as the exemplary combination of traditional tourism and e-commerce, Ctrip had experienced significant success. However, the company still had to adapt to an ever-changing and increasingly complex internal and external business environment. How would the company evolve its business model to sustainably compete in the global online travel market?
The owner and sole shareholder of a Vanderbilt Financial Services brokerage in London, Ontario, must decide on the best course of action to grow his business. In 2018, the owner was concerned that he had not accomplished as much as he could with his current business strategy. He was a financial adviser specializing in life insurance and mutual fund products, and he was looking to find new ways to grow. The owner had come up with two options to help achieve growth within his brokerage: enter the real estate market by building business office space to use and to rent to prospective tenants, or build a larger team of life insurance and mutual fund representatives to help manage his growing client base.
LaundryWala was an online, on-demand laundry service provider in the suburbs of Delhi, India. In 2018, three years after its inception, the firm had more than 30,000 individual and business customers. The 33-year-old owner had to make quick strategic decisions regarding the next phase of the firm's growth. She looked at the firm's operation details to assess the following: Was her service model viable and profitable? Should the customer segment focus be business-to-consumer or business-to-business sales? Was a company-owned business model the best option, or should she look at outsourcing operations? Could the young start-up move into new territories and service offerings?
Datri Blood Stem Cell Donors Registry (DATRI), a not-for-profit social venture established in 2009 with 3,000 donors, was India's largest stem cell donor registry. Since 2009, it had expanded until its donor base was over 267,000. While DATRI continued to work towards its vision to find a matching donor for every patient in need of life-saving stem cells, its dependence on voluntary donations was causing some pressing issues. Donors who voluntarily enrolled in the registry were backing out of the process when contacted for a transplant, and the organization was also facing fundraising difficulties. DATRI's co-founder and chief executive officer felt that not addressing these issues soon would undermine the organization's purpose. In May 2017, he was preparing for a meeting with his team to finalize a future plan of action that would solve these problems.
Datri Blood Stem Cell Donors Registry (DATRI), a not-for-profit social venture established in 2009 with 3,000 donors, was India’s largest stem cell donor registry. Since 2009, it had expanded until its donor base was over 267,000. While DATRI continued to work towards its vision to find a matching donor for every patient in need of life-saving stem cells, its dependence on voluntary donations was causing some pressing issues. Donors who voluntarily enrolled in the registry were backing out of the process when contacted for a transplant, and the organization was also facing fundraising difficulties. DATRI's co-founder and chief executive officer felt that not addressing these issues soon would undermine the organization’s purpose. In May 2017, he was preparing for a meeting with his team to finalize a future plan of action that would solve these problems.
This case examines the opportunities and challenges faced by an entrepreneur behind a beauty startup, YOURFIT, as she attempts to break into the crowded Korean beauty (or "K-beauty") market. Leveraging on technology, YOURFIT uses a mobile application which allows customers to customise facial masks for their unique face size, skin type, and skincare goals. This case traces the entrepreneur's journey as she gets her startup off the ground in the cut-throat K-beauty market.
With SAR 14 billion ($3.7 billion) in 2017 revenues, Almarai was Saudi Arabia's largest dairy producer, distributor, and marketer, with a large portfolio of branded dairy products, juices, bakery goods, and infant formula and a sales presence across the Gulf region, Jordan, and Egypt. Almarai employed some 42,000 people across its operations, from its massive dairy farms to its processing plants to its vast sales and distribution operation that reached over 100,000 outlets. Notwithstanding its diverse portfolio, the core of Almarai's business was (1) sales of branded fresh/chilled dairy products, (2) in Saudi Arabia, (3) distributed through the traditional retail channel made up of thousands of small neighborhood shops called bakalas. In October 2018, all three of these focal points were under pressure. Under the economic-restructuring programs of Saudi Arabia's new crown prince, Mohammed bin Salman, new taxes and subsidy cuts were squeezing household budgets. Concurrently, changes to other government policies were causing expatriates-who made up about a third of Saudi Arabia's population and were a key consumer of Almarai's dairy products-to leave the country in droves. This case finds Almarai's management team, led by soon-to-retire CEO Georges Schorderet, debating how the company can defend and grow its position in Saudi Arabia while also finding new sources of future growth (e.g., bringing its production model to new markets with fragmented dairy sectors or entering new product categories such as fish or ice cream). The decision of how to move forward will be based on an assessment of Almarai's strengths, how they can be best used to drive future growth, and how relevant they will remain in a market that is changing so dramatically.
California Closets had used robust net promoter score (NPS) data, surveyed across its locations, to create a more consistent and satisfying customer experience. CEO Bill Barton wanted to further optimize the customer experience around best practices. He also wanted to attract newer customers, members of the millennial generation. How could Barton and California Closets leverage NPS to achieve these goals?
Komatsu's Komtrax system started as a way of remotely monitoring and tracking equipment for the purpose of improving operational efficiency. This case follows its evolution towards other uses including demand forecasting for its sales, marketing, and production operations.
Kamil Yazici and Izzet Ozilhan founded and built Anadolu Group Holding; a family business that grew into a multi-billion-dollar regional powerhouse. For 57 years they were equal partners in running the company. They then handed over a leadership role to a next generation family member; Izzet's son Tuncay; who became the CEO and later also chairman. Under Tuncay's leadership; the company was primarily run by professional managers; supplemented by a limited number of second- and third-generation family members in senior executive positions. However; in 2017; when the number of next-generation family members reached 85; Kamil and Tuncay began work on a governance structure they hoped would sustain the company when they left. Under their plan; family members would no longer be allowed to hold general management positions. As a result; Tuncay retired as CEO and other family members with senior executive roles resigned. A holding company was created to bring all the company's subsidiaries under a common structure. And a process was created to allow some members of the two surviving families to hold board seats. Although the stock market reacted positively to the increased transparency brought about by the changes; it remains to be seen whether the new formula will achieve its goal of successfully transitioning the company from a family-managed business to professionally-run company.
In 2016, the hair-loss solutions company Hair Club conducted a review of its business practices and identified issues with its sales operations. Although Hair Club had some very satisfied customers, it struggled to convert potential customers into regular, paying clients resulting in a loss of revenue. To address the issues identified in the review, Hair Club hired Marcus Wright, a sales professional in the healthcare and beauty industries, as its vice president of sales operations. He was tasked with analyzing Hair Club's sales process to determine how the company can turn more potential customers into paying clients who will also refer their friends and family. Wright and Hair Club considered how to improve the quality and number of potential clients who set up a meeting with a consultant and how to modify the consultation process and follow-up to increase Hair Club's sales.
This case describes the challenge faced by Pizza Hut Hong Kong. Pizza Hut dominated the territory's pizza delivery business. It eliminated competitors by engaging digitally savvy consumers with innovative, integrated marketing and technology solutions. As independent food delivery firms like Food Panda and Deliveroo started to enter Hong Kong, Pizza Hut Hong Kong had to consider how to leverage its core competencies to tackle these disruptors and protect its market.
Cathay Pacific's announcement that it would eliminate 600 staff jobs from its head office made headlines in the territory and internationally. The mass layoffs followed the loss of HKD3bn the previous year. This case study discusses the possible causes of Cathay Pacific's plight. Cathay had been among the best airlines in the world and a source of pride to many Hong Kongers. From the service management perspective, this case study describes the situation Cathay Pacific was facing in terms of service marketing, service human resource management, and service operations.
Shanghai Contron Information Technology Co., Ltd. was a small technology company in Shanghai, China, established in 2011. The company's main customer was the government, and sales management was the company's primary department. In a rapidly expanding market, the company moved very quickly from the start-up phase to the growth phase. In 2016, the company’s chief executive officer faced challenges in terms of obtaining, stimulating, and managing sales talent, and improving the leading role of the sales department. What could the chief executive officer do to address these challenges?