China's economy has experienced multiple radical changes since 1978, in which state-owned enterprises (SOEs) have played vital roles and transformed accordingly. In the era of Xi Jinping, China has been launching new plans for SOEs reform aiming to improve enterprise efficiency and adjust the industrial structure. This case discusses the development of socialist economy and key characteristics of SOEs reforms before and after 2012, and explores the challenges China faces in the new stage.
In early 2017, the directors at Protospace, a makerspace in Calgary, Alberta, Canada, faced some challenges. The nine-year-old member-run organization operated as a "do-ocracy," with a minimum of official oversight. However, the directors and some of the membership wondered whether Protospace could and should scale its growth by recruiting and accepting new members. Would a larger membership help or hinder the membership-driven makerspace? Should the organization hire a staff member so that members would have more time to work on their projects? What would be the implications of a having larger membership and a paid staff member?
In 2016, Pepperfry.com (Pepperfry) was India's leading online retailer of furniture and home products. As a pioneer in the online furniture and furnishings space, Pepperfry had a first-mover advantage that led to the achievement of significant milestones within a short period. Online marketing, however, involved distinct challenges compared with traditional marketing practices. Improving customer experience at the different stages of a consumer's purchase could be the foundational strategy to resolve these challenges. How could Pepperfry's service design further enhance the customer experience and achieve a competitive advantage?
In January 2017, the co-founder and chief executive officer (CEO) of StarTech.com was meeting with the chief operating officer to discuss the London, Ontario, company’s supply chain strategy. With sales of $190 million in 2016, StarTech.com, a manufacturer and distributor of hard-to-find technology products, had grown by almost $70 million in the previous four years and was expected to grow at 20 per cent a year for the next three years. The CEO wanted to ensure that the firm’s supply chain strategy simultaneously supported its aggressive growth targets and optimized its inventory investments. What initiatives should the company consider to ensure high levels of product availability for end-users? How could the company enhance its value proposition to customers while also improving operating margins and inventory productivity?
In early 2015, the newly appointed country head of PharmaCorp's operating unit in Ukraine faced internal and external challenges in managing the global pharmaceutical company's operations in the crisis-ridden country. Since November 2013, Ukraine had undergone massive disruptions, including riots in Kiev, the annexation of Crimea by Russia, and a war in its easternmost region. Amid these economic and political turbulences, PharmaCorp Ukraine experienced plummeting sales, increased workload, amplified human resources issues, and decreased market share. Furthermore, the multinational corporation's internal routines became less effective in the context of the crisis. Although the regional headquarters in Lausanne, Switzerland, offered guidance and resources, inefficiencies in responding to local issues emerged during the crisis. Should PharmaCorp exit the market? Or should it stay in Ukraine and revise its local marketing strategy by offering more innovative products? Should it implement cost-saving measures? Should the business model be revised to gain more autonomy for its operations? The country head was scheduled to meet with representatives from the regional headquarters and needed to prepare a comprehensive strategy for improving the local situation.
In January 2017, the co-founder and chief executive officer (CEO) of StarTech.com was meeting with the chief operating officer to discuss the London, Ontario, company's supply chain strategy. With sales of $190 million in 2016, StarTech.com, a manufacturer and distributor of hard-to-find technology products, had grown by almost $70 million in the previous four years and was expected to grow at 20 per cent a year for the next three years. The CEO wanted to ensure that the firm's supply chain strategy simultaneously supported its aggressive growth targets and optimized its inventory investments. What initiatives should the company consider to ensure high levels of product availability for end-users? How could the company enhance its value proposition to customers while also improving operating margins and inventory productivity?
In January 2016, the chief executive officer of Harley's Corner, an India-based online retailer of gourmet dog food, faced a decision dilemma. He needed to decide on the most suitable positioning strategy for the business, which competed against several well-known brands, including other fresh, gourmet, home-cooked food for pets. Harley's Corner needed to convey a proposition that ran deeper than simply representing an "all-natural, home-cooked" fresh pet food. How could he differentiate the offerings in a relevant way to retain his loyal customers, attract new customers, and thereby grow the business? What was the best way to position his brand, Harley's Corner, which catered to a niche segment?
1-800-Flowers.com was a market leader in the floral gift industry, offering solutions for everyday gift needs as well as for special occasions. The U.S. company’s mission was to “deliver smiles” to its customers by designing and delivering innovative and valuable gifts. 1-800-Flowers.com had a very good brand in terms of floral distribution. However, the online market for flower and gift sales was changing rapidly, presenting new opportunities for efficiencies and market expansion. In March 2012, the company's chief executive officer was faced with a pressing decision. How could 1-800-Flowers.com gain competitive advantage through collaborations with the extended supply chain?
In 2016, Canadian Arrow Mines Limited (CRO) had a promising nickel property, the Kenbridge deposit, located 70 kilometres southeast of Kenora, Ontario. The spot had been the site of significant exploration in the past. Further exploration by CRO had indicated that it could be profitable. CRO had spent close to CA$10 million on redevelopment, and needed a further $3 million for the final feasibility study before going into full operation. In 2007, nickel hit a high of $27 per pound, but by 2009, prices had dipped to under $8 per pound, which severely curtailed the firm’s ability to raise the final $3 million. CRO turned its attention to other projects to raise money in the hope of a recovery, but the trend had been negative until mid-2016. To save the property, CRO had laid off all of its employees and reduced expenses to the minimum required. With a small recovery evident, CRO management wondered if CRO should hang on further and wait for nickel prices to rise enough to support the final feasibility study. The team wanted to know what nickel price was required to run a profitable operation. Were there any indicators about which direction this price would take in the future?
In 2012, an MBA intern at Sifton Properties Ltd. had to decide on a recommendation to top management about the installation of a renewable energy installation for the company's new community development project in London, Ontario. The intern had to consider numerous internal and external factors in his decision-making process. Three emerging technologies were specifically relevant for renewable energy systems: aquifer thermal energy storage, sewer heat recovery, or anaerobic digestion and cogeneration. The intern needed to consider the social, environmental, and financial impact of each energy generation system and the preferences of varied stakeholder groups.
Over the past five years, Patanjali Ayurved Ltd. (Patanjali) had emerged as a major player in India's fast-moving consumer goods industry. Building on the capabilities of its two founders, the company had differentiated its products with a unique mix of Indian nationalism, yoga spiritualism, and natural/Ayurvedic ingredients. In combination with its low-price and low-cost position, this strategy had challenged the incumbent multinational and conventional Indian competitors. In October 2016, Patanjali's two co-founders considered adding blue jeans to the company's business portfolio and expanding its current products into international markets. However, some observers doubted whether Patanjali's successful strategies could be successfully extended to fashion. Others believed the jeans initiative would be problematic because Patanjali had more compelling growth opportunities, such as increasing sales of its existing products within India and abroad. Patanjali's founders needed to decide on the appropriate priorities for their company's continued growth and success.
In 1995, many of the flights at Edmonton City Centre Airport (ECCA) were being diverted to Edmonton International Airport. By 2008, ECCA's two runways required an estimated CA$10 million in capital upgrades and CA$35 million in additional maintenance costs over the next 10 years. In light of these facts, in November 2011, Edmonton's city council had begun to consider whether maintaining ECCA was feasible or if other alternatives would put the land to better use. The options available included the following: 1) maintain ECCA and the status quo by completing the repairs, 2) sell the property to a real estate developer and generate immediate revenue for other city projects, or 3) close ECCA and have the city redevelop the land for a community project. City councillors needed to find a clear and sustainable solution to the challenges presented by ECCA.
Through this series of increasingly more sophisticated exercises authored by Aradhna Krishna, students gain a deep understanding of the strong connection between price, demand, variable cost, and capacity. In their efforts to help Katja maximize profit in her bread-making venture, students will learn the concepts of sunk fixed cost, incremental fixed cost, and variable cost. They will discover how a profit-maximizing price depends on all three factors of demand, variable cost and capacity, and how they all interrelate. For example, students learn that fixed cost is important because it affects capacity decisions and hence also entry/exit decisions. However, given a pre-existing capacity, fixed cost does not affect the pricing decision. Students also learn how price can be used strategically to avoid increasing capacity. This exercise series is presented in five short parts (Katja's Danish Bread Exercises A-E). Exercise A is given to students to prepare before class, and Exercises B-E are read in class and done sequentially during class.