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Will Our Partner Steal Our IP? (Commentary for HBR Case Study)
A Taiwanese manufacturer of hybrid-car parts faces risks to its proprietary technology in its partnership with a Chinese automaker. Case Study authored by Willy C. Shih and Jyun-Cheng Wang, featuring commentaries by experts Eric Giler and Mats H. Olsson. -
Redesigning Knowledge Work
Competitive advantage today increasingly comes from the particular, hard-to-duplicate know-how of a company's most-skilled knowledge workers: talented (and highly paid) engineers, salespeople, scientists, physicians, and other professionals. The problem is that in many industries there aren't enough of them to go around--and the situation promises to get worse. In this article, Dewhurst, Hancock, and Ellsworth of McKinsey & Company examine how companies can redefine the jobs of their experts, transferring some of their tasks to lower-skill people inside or outside their organizations and partnering with external providers for work that requires scarce skills but is not strategically important. Redesigning jobs so that prized experts are freed up to do the work that only they can do involves four basic steps: identifying the gaps between the talent your firm has and will need; creating narrower, competencies-based job descriptions in areas where talent is scarce; choosing from various options for filling the skills gap; and rewiring processes for talent and knowledge management to accommodate the new way of working. The authors' research and experience show that redesigning jobs in this way can help companies not only address skills shortages but also lower costs and increase job satisfaction. -
Quadrant Homes: Adapting a Lean Operating Model to New Market Realities
Quadrant Homes, a subsidiary of Fortune 500 Weyerhaeuser Company's Real Estate Division, had gained renown for its lean-oriented business model. Starting with a major overhaul in 1996, Quadrant built a formidable operating system that effectively served the needs of first-time home buyers in the Puget Sound region of Washington State, on the Northwest coast of the U.S. The operating system, built on a solid employee culture of operational excellence, produced partly customized, build-to-order homes using an "even-flow" process that delivered on Quadrant's value proposition, "More House, Less Money." Between 1996 and 2007, customer referrals more than quadrupled, market share expanded ten-fold, net margin per house had tripled, and the company's revenues and profits had soared. Quadrant's fortunes changed dramatically when the housing bust hit the Seattle area in 2007. Risk-averse, first-time home buyers pulled out of the market or gravitated toward foreclosed or distressed properties at bargain prices. Additionally, the preferences of the market had shifted away from Quadrant's rather bland-looking, boxy houses toward more customization and differentiation. In reading and discussing the case, students are challenged to consider what led Quadrant temporarily down the wrong path, and how it can reinvent its value discipline and supporting operating system in light of new insights about customer preferences and economic factors. -
Caspian Oil (A): Tengiz
The Tengiz Field in Kazakhstan was discovered by Soviet geologists in 1979 but largely ignored for years as the Soviets focused their oil development efforts elsewhere. When Chevron formed a joint venture with the Kazakh government in 1992, development of Tengiz started. By the spring of 2011, although producing 700,000 barrels of oil per day (bbls/d), Tengiz was yielding only half the oil expected. Chevron was under increasing pressure from its partners, including the Kazakh government, to bring the joint venture to its productive promise. -
Procter & Gamble in China
The case is set in 2011. P&G has announced that it wishes to serve an additional billion customers globally within the next five years. To do so, it will have to expand its activities in China. P&G is widely considered successful in China, and it is the leader in several product categories in a rapidly growing China market, but Chinese people still buy only a fraction of the value of P&G products as in the US or the rest of the world. The case allows for a detailed discussion of how P&G has built up its business system in China, the challenges it faces in expanding its position in China, and its strategy to focus more on emerging markets around the world. The case can be used as a comprehensive country strategy case. -
Entrepreneurial Management in a Turnaround Environment (EMTE) Fall 2012: Course Overview and Syllabus
Course Overview and Syllabus in the Fall Term 2012 for the Entrepreneurial Management in a Turnaround Environment (EMTE) course. -
Online Ad Targeting at Thunderbird
Thunderbird has built a strong and efficient Internet presence in the past five years. The effort was supported by a consistent effort to develop its internal online marketing capabilities, resources, and technical infrastructure. As the MBA recruitment process becomes increasingly dependent on its online marketing strategy, the ability to buy media effectively, measure performance, and adjust plans quickly acquire incredible relevance. Kelly Santina, the school's online marketing director, must assess the Google Analytics data covering the past seven months of website activity. Thunderbird's online marketing goals are defined as follows: (a) to improve the effectiveness of display/sponsored ads placement; (b) to increase traffic to the programs pace by 25%; (c) to improve conversions, measured by the downloading of an application form, by 30%. -
Medneo: Radiology as a service
The case is set in July 2010. André Glardon, who is the regional sales director of a major health care products provider for the Levante and the Balearic Islands regions, returns from an unpleasant customer visit. The head of administration to the Hospital de GandÃa, one of his important customers, just delayed the order of two MRIs, making it almost impossible for André to reach his personal annual sales targets. External factors such as the health care reforms, the exploding costs of the health care system, a shift in the buying behavior of hospitals and increased economic pressures on hospitals, might be causing a fundamental shift in the industry. Although this might raise serious questions regarding the existing business models of established industry players i.e. the major producers of medical equipment, radiology centers and hospitals, it might also offer likeminded sales directors, the chance to benefit from these developments. How though? Through the implementation of new business models that address these issues. André and two friends developed a business idea and were wondering whether they should push this idea within their company or leave their company and launch the business on their own. -
Xiamen Honda 4S Shop
Based on the automobile sale model in the mainland of China, this business case describes Xiamen Honda 4S Shop's current sales situation, marketing strategy and management. It emphasizes the dilemma faced by the company CEO - whether or not he will implement the plan proposed by the sales department to offer lifetime car care for customers who bought car insurance from the company. Deeper marketing management problems are also raised, such as how to distribute marketing resources, how to evaluate the marketing plan and its performance and how to raise company value when it supplies better value to the customers. This case can be used in marketing management for MBA students and senior undergraduates. It provides an opportunity to discuss the subjects of customer lifetime value and marketing budget management. -
The Market for Gold: SPDR Gold Shares and Beyond
This case is used in Darden's second-year elective, Financial Institutions and Capital Markets, and would work well in courses covering exchange-traded commodities funds. A teaching note for this case is pending publication. At the end of May 2012, Aram Shishmanian, CEO of the World Gold Council (WGC) was considering alternatives to promote gold as an investment asset. The WGC was the sponsor for SPDR Gold Shares, which was launched in 2004 and had become the most successful commodity-based exchange-traded fund, reaching a market value of around $64 billion. This had exceeded expectations, but allocations to gold remained small among U.S. long-term institutional investors. There would also an expected shift of wealth to countries such as China and India in the coming decade. Shishmanian was considering which gold investment vehicles would be best for the WGC to promote in the United States and other markets going forward. -
Amar Chitra Katha: Changing the Brand with Changing Times
This case concerns the branding and marketing of a comic book series that started in the 1960s as an educational tool to make Indian children aware of Indian mythology, history and culture. By 2010, Amar Chitra Katha had around 500 titles covering a vast range of topics, but it was facing competition not only from international and indigenous comic book companies but from electronic media such as children's games and shows on cable TV and the Internet. In November 2007, all the Amar Chitra Katha titles and Tinkle magazine were bought by Mumbai-based entrepreneur Samir Patil, who created ACK Media as an umbrella brand. The company tried to reach its audience through the launch of an online portal, the creation of DVDs/VCDs, sponsoring movies based on Amar Chitra Katha and placing comics on mobile phone platforms, etc. However, such actions were shifting the focus of the brand from books to electronic media. The shift was inevitable to maintain a stable position in the marketplace and to achieve growth, but the management wondered how it could and whether it should maintain its print presence in the marketplace. -
Bio-Vert: Green to What Limit?
Bio-Vert is a leading Canadian brand of eco-cleaning products manufactured by Quebec-based Savons Prolav. Run by a brother and sister team, Savons Prolav bases its products on their vision, which includes eco-friendliness, affordability and effectiveness. Demand for Bio-Vert's phosphate-free detergents has increased dramatically since the 2007 blue-green algae bloom outbreaks in Quebec's waterways and subsequent legislation restricting phosphate use in cleaning products. However, now that "green" cleaning products have become more mainstream, Savons Prolav faces the issue of how to adapt and grow in an increasingly crowded marketplace. This discussion considers how Savons Prolav can remain competitive in this difficult industry segment while maintaining its environmental focus. This case highlights the pressures that an SME with strong environmental values faces in a competitive market. It includes a portrait of the cleaning products industry, consumer patterns with regards to eco-friendly products, and a background of the provincial socio-environmental event that triggered increased demand for green cleaning products in Quebec. Savons Prolav's history, business model and core values are discussed along with potential growth options. Details on related industry, societal and marketing perspectives are provided to guide the reader through the advantages and disadvantages inherent to each opportunity. -
Information Technology at Cirque du Soleil: Looking Back, Moving Forward
The case takes place in early 2008. It illustrates the remarkable use that Cirque du Soleil makes of information technology. The case is based, in part, on the keynote speech that Danielle Savoie - who was then Vice-President of Information Technology and Knowledge Management at Cirque du Soleil - gave at the International Conference on Information Systems (ICIS) in Montreal in December 2007. The case is structured around the touring show life cycle and describes how information technology supports the complete process involved in designing, producing, staffing and diffusing shows at Cirque du Soleil. The case presents key infrastructure and applications and offers insights into how IT can support the key operational processes in an artistic, creative and innovative organization. -
Domaines Barons de Rothschild (Lafite): Plus ca change...
For centuries Lafite has been the most admired wine Estate in the world. How does Baron Eric de Rothschild protect this crown jewel in a conservative manner while DBR develops other Chateaux blending wine programs,and reaches out to new areas such as China and begins to take a more active interest in the world's number one market- the United States. -
Trouble Brewing for Green Mountain Coffee Roasters
In October 2011, noted hedge fund manager David Einhorn of Greenlight Capital delivered a presentation at an investors' conference analyzing the business and accounting quality weaknesses of Green Mountain Coffee Roasters. Until then Green Mountain had exhibited rapid business and stock price growth. He questioned Green Mountain, the maker of Keurig single-serve coffee machines and their famous K-Cups about their growth prospects, their handling of acquisitions, their plan for the expiration of an important patent, accounting practices and other issues. Following Einhorn's presentation Green Mountain's stock experienced a significant decline despite claims by many analysts that Einhorn had not presented any new information. The case presents Einhorn's argument and the counter claims by the analysts. Students are charged with assessing the merits of Einhorn's arguments and the counter claims. The case exposes students to a detailed strategic, financial and accounting analysis of a business and provides an example of how a thorough business and accounting analysis using primarily public information can change market's perception of valuation of a company. -
JetBlue Airways: Valentine's Day 2007 (Abridged)
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Residencial Los Andes
Peninsula Investment Group is deciding wether or not to recapitalize an equity investment in a Residencial Los Andes, a residential project in Santiago, Chile, or take a substantial loss. The project did not met its sales goals and the bank pressured the investors to liquidate the construction loan. Early on, Peninsula had identified Chile a target market, however, in investing in Residencial Los Andes, it had made several exceptions to it's investment strategy. The case addresses what went wrong in the evolution of the project, what measures need to be taken if Peninsula did increase it's capital committment. -
Developing the Materiality Matrix at Telefonica
Telefonica, one of the largest telecommunication companies in the world and headquartered in Spain, has been issuing a corporate sustainability report since 2002. In its 2011 Sustainability report, the company included a "materiality matrix," and was one of only five of the 97 companies in Spain that produced a sustainability report that year. The case describes the purpose of the materiality matrix, how it was developed, and the opportunities the company sees for improving it. -
Olam: On a New Course
From modest beginnings as a cashew trader in Nigeria, Olam, founded by Indian nationals in 1989, has grown into a leading global agricultural trading company, with annual revenues of $14 billion. The company recently has begun investing in farms and in the production of packaged goods, shifting from its traditional focus on the midstream of the value chain. The case raises questions involving competitive positioning, corporate strategy, sustainable development, and the management of business and political risk. -
Rodan + Fields Dermatologists
The case focuses on issues involved in managing the direct multilevel marketing sales consultants who sell R+F skin care products. The company is trying to better manage the inconsistent and highly variable recruitment behavior of the sales force i.e., the degree to which existing consultants recruit new consultants. The company utilizes a range of periodic incentives for recruitment, but hopes to build a system of salesforce compensation and management that relies more on intrinsic rewards and less on these periodic incentive programs. The case forces students to address principles of compensation system design, as well as more fundamental issues around what they believe motivates this "volunteer" (i.e., non-employee) sales force.