In October 2010, the recently appointed CEO of the Singapore Exchange (SGX) wanted the SGX to grow faster than organic growth alone would allow. The most logical acquisition target was the Australian Securities Exchange (ASX). Executives from the SGX and the ASX announced an agreement to merge. The two exchanges would remain separate legal entities for regulatory purposes but both would be owned by ASX?SGX Limited, a new holding company that the deal would establish. But why did the merger fail? This left executives at the SGX and other foreign securities exchanges pondering whether the conditions the Australian Treasurer specified for a merger could ever be met and, if so, would a foreign securities exchange really be allowed to acquire the ASX?
In May 2015, the chief executive officer (CEO) of a small social enterprise was trying to decide how to expand its business. Textbooks for Change collected used texts from universities and supported African entrepreneurs and universities by donating text sales proceeds or through the distribution of donated materials to deserving schools. The CEO was considering expanding the business to collect textbooks from universities outside its region, and wanted to assess the potential financial viability of three targeted universities.
Bisleri International, a household name in the bottled water segment in India, launched a new energy drink called Urzza in 2014. The energy drink market in India, dominated by Red Bull, was in a nascent stage but was growing at a rapid pace. Recently, energy drinks had been the subject of grave health concerns owing to the harmful effects of excessive caffeine. Urzza, an energy drink without caffeine, had been launched with the intention of creating a new category of drinks that could appeal to everyone. However, it remained to be seen whether Urzza could succeed in creating mass appeal and could meet ambitious sales targets. Was its unique positioning correct, or was it better off marketing itself as a more traditional energy drink?
By August 2015, Berlin-based advertising technology venture Roq.ad had grown from a chance encounter between its two co-founders to become a revenue generating operation with 18 full-time employees in Germany and Poland -- in just 10 months. Their goal was to develop new cross-device, user-recognition technology that would enable advertisers to accurately target consumers across a range of devices such as personal computers and peripheral devices. Roq.ad's co-founders had decided from the beginning not to seek out venture capital and instead to retain tight control of their business. Given the lead time needed to develop technology, they had also decided to use an industry-standard agency model for generating revenues that would be used to fund the development of technology and the eventual launch of the program. As Roq.ad approached the end of its first year in business, the co-founders faced an important strategic challenge: How could they successfully transform the company from its initial mobile-advertising agency model to become Europe's number one provider of cross-device, user-recognition technology?
When Margaret A. Cargill passed away in 2006, her 17.5 per cent stake in Cargill went to Margaret A. Cargill Philanthropies (MAC). MAC lobbied for her stake to be liquidated. Cargill proceeded to shed its 64 per cent stake in Mosaic, North America’s second-largest fertilizer company, in exchange for Margaret Cargill’s stake in the company, in order to maintain control over the company. Like many second- and third-generation family businesses, Cargill’s current family owners were not actively involved in the day-to-day running of the company. Was spinning off Mosaic in the best long-term interests of Cargill? Were there other feasible ways in which Cargill could have better facilitated the liquidation of Margaret Cargill’s stake?
Bimbra 4x4 was established in 2010 as an after-market customization service providing aesthetic and functional modifications for off-road vehicles. The platform of choice was a utility vehicle called the Mahindra Thar, popular for its bare-bones design that allowed for a wide range of modifications. Bimbra 4x4 adopted a buffet-like approach to its business, where customers were able to pick and choose options to completely customize their vehicles according to their taste and budget. The customer service, quality, and quick turnaround time made this service a preferred choice among off-road enthusiasts. Competition came from two very different segments. The first was local garages offering rudimentary vehicle modifications; the second was the vehicle manufacturer itself. Bimbra 4x4 needed to stabilize and grow based on an understanding of the competitive forces. Was the orientation toward the Mahindra Thar justified or was it a narrow dependence on a single platform? How could the business grow from a one-platform, one-location business into a sustainable multi-location company?
In 2015, Biziga Solutions Private Limited (Biziga), a first generation start-up based out of the National Capital Region, India, operated within the “instructional games” industry. Its first product, MarkLabs, was an emerging market-centric business simulation that promised to provide a contextually relevant simulation. Biziga had recorded revenues of ?20 million in FY2014/15. By the end of 2019, the company wanted to build a portfolio of 20 simulations across five domains and serve 25,000 learners. While the founders were convinced about the market opportunity, a lot depended on their ability to articulate the benefits convincingly to the defined target market, as well as the ability to build critical capabilities and resources needed to deliver benefits to customers.
Since its founding in 2002, Fengshou Crab Manor had become one of the top brands in China’s mitten crab sector by using a distinctive gift voucher model. The company had attracted over 100,000 loyal customers from companies and non-profit institutions in Beijing and Shanghai. At the beginning of 2013, however, the government’s Central Committee unveiled an eight-point code of conduct to reduce bureaucracy and boost ties with the public, which adversely affected sales of Fengshou Crab Manor’s gift vouchers. Throughout 2013, sales revenues plummeted by over 30 per cent. In such a critical moment, Fengshou Crab Manor began to ponder the limitations of the gift voucher model, coupled with a rising quantity of fresh foods sold online. Would the Internet mindset help the company survive the current crisis? What e-commerce marketing strategy should the company adopt to win over more users?
In June 2012, the Kingston, Frontenac, Lennox, and Addington chapter of the United Way had the opportunity to present its views at an upcoming public forum on a proposal to build a casino in Kingston, Ontario. The possibility of a casino in Kingston was a controversial and emotional topic; it was supported by influential business and government leaders but also had many detractors. Pro-casino advocates said a casino would create jobs, spur local business, and contribute millions of tax dollars to municipal coffers. Opponents contended that the social costs of a casino would outweigh the touted economic benefits and that a casino would lead to an increase in problem gambling. City councillors were evenly divided on the issue. For the United Way, many of the proponents and opponents alike were active and financially supportive of the organization. The United Way was asked to take a stand, and yet was hesitant to enter into a political debate. Was it possible for the United Way to uphold its values without alienating pro-business donors and local government officials?
In January 2016, the president and chief executive officer of Canaan Group in Richmond, British Columbia, was evaluating plans for a proposed trans-loading facility, which would be located inland from Port Metro Vancouver. The trans-loading facility had the potential to simultaneously offer a lower-cost transportation alternative for exporters and significantly reduce greenhouse gas emissions in the Lower Mainland. Despite the potential opportunities, three important hurdles needed to be overcome before successfully launching the new operation. First, co-operation was needed from exporters and their shipping companies to provide sufficient throughput of containers. Second, an agreement from Canadian Pacific Rail to provide service at a competitive rate was essential. Third, successful negotiations were required for a long-term lease for the proposed site to justify the necessary investment. The Canaan Group president reviewed the data from a completed pilot study and wondered what his next step should be. With which stakeholder should he start his negotiation? What were his bargaining strengths and weaknesses? Were there other stakeholders that should be engaged?
The Container Store (TCS) is a Texas-based retailer of organization and storage solutions. The company prides itself in taking care of its employees first and its co-founder and CEO Kip Tindell practices Conscious Capitalism. Since it beginnings in 1978, TCS grew to a chain of around 70 stores located in over 20 states by 2013. Tindell believed TCS's employee-first culture and the seven Foundation Principles, which guided the company, were what differentiated the company from other retailers. With plans to grow to 300 stores, TCS went public in late 2013. Since its IPO same store sales have suffered and the company's stock in early 2016 was trading well below its IPO price. As such, the company's culture and Foundation Principles were being put to the test. This product can be used with the free Job Design Optimization Tool (JDOT), available at: hbsp.harvard.edu/jdot
In January 2016, the president and chief executive officer of Canaan Group in Richmond, British Columbia, was evaluating plans for a proposed trans-loading facility, which would be located inland from Port Metro Vancouver. The trans-loading facility had the potential to simultaneously offer a lower-cost transportation alternative for exporters and significantly reduce greenhouse gas emissions in the Lower Mainland. Despite the potential opportunities, three important hurdles needed to be overcome before successfully launching the new operation. First, co-operation was needed from exporters and their shipping companies to provide sufficient throughput of containers. Second, an agreement from Canadian Pacific Rail to provide service at a competitive rate was essential. Third, successful negotiations were required for a long-term lease for the proposed site to justify the necessary investment. The Canaan Group president reviewed the data from a completed pilot study and wondered what his next step should be. With which stakeholder should he start his negotiation? What were his bargaining strengths and weaknesses? Were there other stakeholders that should be engaged?
In 2015, Biziga Solutions Private Limited (Biziga), a first generation start-up based out of the National Capital Region, India, operated within the "instructional games" industry. Its first product, MarkLabs, was an emerging market-centric business simulation that promised to provide a contextually relevant simulation. Biziga had recorded revenues of ₹20 million in FY2014/15. By the end of 2019, the company wanted to build a portfolio of 20 simulations across five domains and serve 25,000 learners. While the founders were convinced about the market opportunity, a lot depended on their ability to articulate the benefits convincingly to the defined target market, as well as the ability to build critical capabilities and resources needed to deliver benefits to customers.
Umicore's CEO Marc Grynberg had been appointed chief executive officer in the last quarter of 2008 in the early stages of a global economic crisis, an ominous start of sorts. As a member of the executive committee, he had been part of the core team that transformed the company from a stagnant mining company - Union Minière - into a true global leader - Umicore Group - in the emerging global circular economy. As a result, the company was named the most sustainable company in the world in the 2013 annual Corporate Knights rankings. This was no small feat for a company that was born in 1805 as Vieille-Montagne. Umicore's complete transformation was effected in less than a decade. The copper and zinc businesses were spun-off and listed separately, leading to the adoption of a radically new business model. The old mining-refining approach to developing material solutions was replaced by a leading-edge recycling-based model that relied on chemistry and metallurgy. By adopting the new business model, the company had become a leader in terms of innovation and sustainability. It now needed to reformulate its strategy to reap the fruits of the heavy investments. Grynberg and his team were also increasingly challenged to demonstrate how the company could monetize its non-financial performance with key stakeholders. Can sustainability really create value? If so, through what mechanisms? Learning objective: Monetizing the circular economy, managing sustainability, stakeholder management, responsible management, change leadership, innovation.
In June 2012, the Kingston, Frontenac, Lennox, and Addington chapter of the United Way had the opportunity to present its views at an upcoming public forum on a proposal to build a casino in Kingston, Ontario. The possibility of a casino in Kingston was a controversial and emotional topic; it was supported by influential business and government leaders but also had many detractors. Pro-casino advocates said a casino would create jobs, spur local business, and contribute millions of tax dollars to municipal coffers. Opponents contended that the social costs of a casino would outweigh the touted economic benefits and that a casino would lead to an increase in problem gambling. City councillors were evenly divided on the issue. For the United Way, many of the proponents and opponents alike were active and financially supportive of the organization. The United Way was asked to take a stand, and yet was hesitant to enter into a political debate. Was it possible for the United Way to uphold its values without alienating pro-business donors and local government officials?
Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. In Chapter 1, Introduction (9 pages), the authors state their belief that the focus of competitive marketing is shifting from short-term transactions to long-term value. They explain that customer retention is vital to an organization. Thus, managing relationships with current customers should be a priority. They present a brief analysis of Ritz Carlton as an example of a business that builds strong relationships.
Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. In Chapter 2, What Is Relationship Marketing? (13 pages), the authors consider how marketing has shifted focus from individual transactions to customer relationships. They outline a taxonomy of markets: supplier, channel intermediaries, end users, competitive influences, and external and internal influences. They outline three levels of relationship marketing: financial, social, and strategic, and outline characteristics of each level along with examples. They analyze how IKEA conducts successful relationship marketing.