This three-part case covers the history of Samsung from its origins as a small trucking company to one of Korea's largest conglomerates. Part A, "Drivers of Success, Family Assets and Business Strategy", charts the growth of Korea's the export-led economy after the end of Japanese occupation in 1945, driven by a handful of family-owned 'chaebols'. Founder Lee Byung-chull's trucking business, set up in 1938, diversified in the aftermath of the Korean War, as he forged a strong political network that enabled him to embed his family's influence and assets in the business strategy. Part B, "Heart Attack Puts Succession Planning at Risk", describes how the ill health of the second-generation leader Lee Kun-hee deprived the firm of a clear succession plan. As the de facto leader of Samsung, his son had to build up his power base to assume the role in the context of a complex ownership structure. Part C, "Court calls time out on Lee Jae-yong", examines how the de facto heir was convicted of bribery and given a five-year prison sentence, prompting speculation that he would run the Samsung empire from his cell.
This three-part case covers the history of Samsung from its origins as a small trucking company to one of Korea's largest conglomerates. Part A, "Drivers of Success, Family Assets and Business Strategy", charts the growth of Korea's the export-led economy after the end of Japanese occupation in 1945, driven by a handful of family-owned 'chaebols'. Founder Lee Byung-chull's trucking business, set up in 1938, diversified in the aftermath of the Korean War, as he forged a strong political network that enabled him to embed his family's influence and assets in the business strategy. Part B, "Heart Attack Puts Succession Planning at Risk", describes how the ill health of the second-generation leader Lee Kun-hee deprived the firm of a clear succession plan. As the de facto leader of Samsung, his son had to build up his power base to assume the role in the context of a complex ownership structure. Part C, "Court calls time out on Lee Jae-yong", examines how the de facto heir was convicted of bribery and given a five-year prison sentence, prompting speculation that he would run the Samsung empire from his cell.
Worldwide, there is no parallel comparison to China's Tencent Holdings. The $22 billion tech giant is a collective answer to Facebook, WhatsApp, Spotify, Kindle, Skype, Pinterest, Apple Pay and others. This case explains how Tencent built a digital platform business from scratch over a period of nearly two decades. Undoubtedly, it gained significant benefits from being an early mover in developing a massive one-billion-strong user base on its gaming and messaging platforms. However, what is exceptional about Tencent is that it has been able to successfully monetize its social audience at scale - a tough challenge for most digital platform companies. Tencent's double digit growth boosted investor confidence that the company would continue to tap the spending power of its users while leveraging the growth potential of its still-nascent advertising and payments businesses. Could the most valuable company in Asia, continue to meet shareholder expectations in 2017 and beyond? Learning objective: 1. Understand the platform business model compared to the traditional pipeline business model; 2. Recognize how network effects create value on a platform; 3. Examine the three types of value that digital disruptors deliver - cost value, experience value and platform value; 4. Comprehend the challenges in monetizing platforms effectively.
NourishCo Beverages Ltd.’s newest drink, Tata Gluco Plus, was an innovative ready-to-drink product that offered instant energy and wellness with a blend of dextrose, electrolytes, and iron. It was available in six different flavours and packaged in a 200-millilitre cup. The economical cup was targeted to consumers at the bottom of the economic pyramid. Despite strong initial sales and customer recognition, the brand was unable to build a distinct identity or a clear connection with consumers, and sales dropped by 11 per cent in 2014. In 2016, the vice-president of marketing and innovations, who was given the task of reviving the brand, was left with several questions to resolve. How would he create an image for the brand that could be adapted to local energy needs? Would the brand be able to relate locally while resonating nationally? Could the brand compete in territories where both regional and international cola brands dominated the market? NourishCo Beverages Ltd.’s business model emphasized operational efficiency and cost efficiency, but would the challenge of achieving a national presence be possible with a conservative promotional budget?
NourishCo Beverages Ltd. (NourishCo) was founded as a fifty–fifty joint venture between one of the world’s best-known companies, PepsiCo India Holdings, and one of India’s most respected and trusted brands, Tata Global Beverages. The long-term corporate vision of NourishCo was to focus on the health and wellness needs of India. In May 2016, after a considerable amount of investment in product, packaging, manufacturing, and innovation, NourishCo had successfully met the objectives of its business model. The company wanted to continue its expansion nationwide. NourishCo had a distinct, low-cost, and effective business model. However, the low barriers to entry in this segment could lead to fierce competition. To retain its first mover advantage and achieve financial viability, it needed to move quickly to become a national company. How could NourishCo strike a balance between managing cash flows and expansion?
In January 2017, the owner of Kookie Kutter Bakery in Sackville, New Brunswick, Canada, needed to make some challenging decisions about the future of his bakery. He enlisted a small marketing firm to help him determine the marketing options available to him, including introducing new cookie flavours, and reaching out to new markets. Because of the bakery’s precarious financial situation, the owner needed to decide how to move forward to ensure that his bakery would succeed in the long run. What should the bakery owner do to keep Kookie Kutter Bakery alive?
QualityKiosk Technologies Private Limited (QualityKiosk) was an information technology company providing software application testing and quality assurance services to banks and insurance companies in India. In 2015, QualityKiosk had over 70 per cent penetration in the insurance sector in terms of numbers of customers, and only 30 per cent penetration in the banking sector. Anuroop Krishna, head of QualityKiosk’s banking vertical, must put together a coherent sales strategy for 2016–17, and present his recommendations to QualityKiosk's chief executive officer.
Netflix Inc. (Netflix) had surpassed Blockbuster, the previous movie rental leader, before making the successful transition to digital delivery of video content. But despite Netflix's success, in 2017, numerous competitors, including both established, mainstream content producers and digital upstarts, were making it difficult for Netflix to recreate its earlier dominance. Critics pointed to Netflix’s slowing acquisition of subscribers and accelerating debt levels. Netflix's chief executive officer was confronted with disruption from a variety of digital rivals. How should he respond? Should Netflix continue to try to be a content producer, competing with Hollywood’s industry leaders? Should it form a partnership with other media companies to align everyone’s incentives? Perhaps it could move into other media content areas outside of traditional entertainment. Further, there remained the question of how to treat its legacy DVD-by-mail business. As the incumbent firm, Netflix needed to respond to competitors and avoid a fate similar to that of Blockbuster.
Supplement to case UV7380. In this case, James Jones and William West's company, JW Sports Supplies, has begun to offer a second product line-a customized gym bag. The owners consider the topic of overhead allocation in determining the cost of its basic gym bag and the new customized gym bag. The company currently uses a traditional overhead allocation system, with one cost pool being allocated based on units. Noticing that the custom gym bags tend to be ordered in small batch sizes and require more time from the sales staff to sell, the owners consider the implications of an activity-based cost system. After allocating overhead costs based on an activity-based cost system, students must consider potential alternative courses of action that they could explore.
NourishCo Beverages Ltd. (NourishCo) was founded as a fifty-fifty joint venture between one of the world's best-known companies, PepsiCo India Holdings, and one of India's most respected and trusted brands, Tata Global Beverages. The long-term corporate vision of NourishCo was to focus on the health and wellness needs of India. In May 2016, after a considerable amount of investment in product, packaging, manufacturing, and innovation, NourishCo had successfully met the objectives of its business model. The company wanted to continue its expansion nationwide. NourishCo had a distinct, low-cost, and effective business model. However, the low barriers to entry in this segment could lead to fierce competition. To retain its first mover advantage and achieve financial viability, it needed to move quickly to become a national company. How could NourishCo strike a balance between managing cash flows and expansion?
NourishCo Beverages Ltd.'s newest drink, Tata Gluco Plus, was an innovative ready-to-drink product that offered instant energy and wellness with a blend of dextrose, electrolytes, and iron. It was available in six different flavours and packaged in a 200-millilitre cup. The economical cup was targeted to consumers at the bottom of the economic pyramid. Despite strong initial sales and customer recognition, the brand was unable to build a distinct identity or a clear connection with consumers, and sales dropped by 11 per cent in 2014. In 2016, the vice-president of marketing and innovations, who was given the task of reviving the brand, was left with several questions to resolve. How would he create an image for the brand that could be adapted to local energy needs? Would the brand be able to relate locally while resonating nationally? Could the brand compete in territories where both regional and international cola brands dominated the market? NourishCo Beverages Ltd.'s business model emphasized operational efficiency and cost efficiency, but would the challenge of achieving a national presence be possible with a conservative promotional budget?
In January 2017, the owner of Kookie Kutter Bakery in Sackville, New Brunswick, Canada, needed to make some challenging decisions about the future of his bakery. He enlisted a small marketing firm to help him determine the marketing options available to him, including introducing new cookie flavours, and reaching out to new markets. Because of the bakery's precarious financial situation, the owner needed to decide how to move forward to ensure that his bakery would succeed in the long run. What should the bakery owner do to keep Kookie Kutter Bakery alive?
Netflix Inc. (Netflix) had surpassed Blockbuster, the previous movie rental leader, before making the successful transition to digital delivery of video content. But despite Netflix's success, in 2017, numerous competitors, including both established, mainstream content producers and digital upstarts, were making it difficult for Netflix to recreate its earlier dominance. Critics pointed to Netflix's slowing acquisition of subscribers and accelerating debt levels. Netflix's chief executive officer was confronted with disruption from a variety of digital rivals. How should he respond? Should Netflix continue to try to be a content producer, competing with Hollywood's industry leaders? Should it form a partnership with other media companies to align everyone's incentives? Perhaps it could move into other media content areas outside of traditional entertainment. Further, there remained the question of how to treat its legacy DVD-by-mail business. As the incumbent firm, Netflix needed to respond to competitors and avoid a fate similar to that of Blockbuster.
In March 2009, Ulrich Bez, CEO of British carmaker Aston Martin Lagonda Ltd., found himself grappling with some tough news from Switzerland. The company had just debuted a novel car concept, its first crossover model under its rarely used historic Lagonda brand, at the Geneva Motor Show, but the negative press criticizing the four-wheel drive, four-seater car's design and concept was troubling and unexpected.
In 2017, a successful online dating company, Mate1.com, based in Montreal, was pursuing a two-year goal of increasing revenue by 50 per cent and net operating margin by 15 per cent. However, its ambitions were being hampered by unavoidably high advertising costs, an inadequate reporting system, and a maturing industry life cycle. Should the firm explore new business models and consider acquiring a competitor-or was it time to divest and sell the firm?
In 2017, a successful online dating company, Mate1.com, based in Montreal, was pursuing a two-year goal of increasing revenue by 50 per cent and net operating margin by 15 per cent. However, its ambitions were being hampered by unavoidably high advertising costs, an inadequate reporting system, and a maturing industry life cycle. Should the firm explore new business models and consider acquiring a competitor—or was it time to divest and sell the firm?
This technical note provides descriptions of the basic forms of organizational structure and the conditions under which each organizational design choice might be made.