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Kepak and the Future of the Irish Beef Industry
As Ireland's third largest beef processor, Kepak faces new opportunities as well as significant challenges from the collapse of the "Celtic Tiger." The government has identified food and agriculture as one way the country could significantly grow exports. However, the beef industry is suffering from overcapacity and from an inefficient farming structure. CEO John Horgan is considering the best way to position Kepak for success, including the possibility of an umbrella Irish beef brand, opportunities for "co-opetition" within the industry, and how to expand the firm's successful convenience foods business to more countries. -
Danimal in South Africa: Management Innovation at the Bottom of the Pyramid
The case focuses on management innovation in the South African dairy industry, describing how an innovative new yoghurt product, Danimal, was created specifically for the market at the base of the pyramid. It explains how management of the product line embodied the various innovation opportunities and challenges presented. The concept was initially introduced in order to assess the feasibility of profitably servicing this market. However, the project was not simply about introducing a cheap brand to poor people but was more about creating brand awareness in the market at the base of the pyramid. The new product took into consideration the nutritional shortcomings in the diet of children in this market and also allowed for the lack of available infrastructure - electricity and refrigeration. The case illustrates the importance of a product being affordable, relevant and available for this market. Innovation went further than product design and also took into account the necessity of a lean distribution channel. This took the form of micro-distributers, referred to as Danimamas, who comprised township residents, unemployed or part-time employed individuals. The case offers insights into the complexity of doing business in developing countries. The company admits that it has not been a sustainable business model in terms of current profitability but the value that has been gained from social marketing and long-term brand development has been great. The case concludes with the challenge of how to ensure that the project continues on its upward trajectory. The objectives of the case are to encourage students to have a better understanding of the strategies required to successfully impact on low-income markets in developing countries, the different metrics that one could consider when assessing the impact of interventions on the base of the pyramid market, and the importance of harnessing opportunities and overcoming the challenges of management innovation. -
Options for growth: The case of Haier (A)
The cases focus on how Zhang Ruimin, CEO of the Qingdao refrigerator factory, managed to turn around a nearly bankrupt factory which produced bad quality refrigerators into one of the world's largest white goods producers. With a series of rigorous steps, Ruimin succeeded in improving the quality of the refrigerators by putting the right incentives and processes into place. In addition, he expanded the product range into other areas of the white goods sector, and last but not least, moved aggressively into foreign markets with inroads into the largest and most competitive markets of America and Europe. -
Options for growth: The case of Haier (B)
The cases focus on how Zhang Ruimin, CEO of the Qingdao refrigerator factory, managed to turn around a nearly bankrupt factory which produced bad quality refrigerators into one of the world's largest white goods producers. With a series of rigorous steps, Ruimin succeeded in improving the quality of the refrigerators by putting the right incentives and processes into place. In addition, he expanded the product range into other areas of the white goods sector, and last but not least, moved aggressively into foreign markets with inroads into the largest and most competitive markets of America and Europe. -
Asian Agri and the Future of Palm Oil
For Asian Agri and other Indonesian palm oil producers, the future promised rising demand from fast-growing Asian populations, but also intensifying criticism from environmental groups. With the highest yield and lowest production cost of any edible oil, palm oil constituted an abundant, inexpensive source of food for Asian and, to a lesser extent, international markets. Its production had soared from 1970 to 2010, sparking concern from environmentalists over the conversion of high-value conservation land in Malaysia and Indonesia (where nearly 90% of palm oil was produced) into palm oil plantations. Critics had intensified their campaigns in recent years, urging-at times successfully-packaged food makers and investors to boycott palm oil suppliers accused of environmental mismanagement. While noting that some accusations were unjustified, palm oil producers argued the industry was making strides towards greater sustainability and cited the unique advantages of palm oil: it was free of unhealthy trans fats, for example, and required less land to produce more oil than any known substitute. Asian Agri, an established Indonesian palm oil grower and exporter, had thus far avoided public scrutiny. The company was a key source of employment in many rural communities, had extensive experience negotiating the complex Indonesian regulatory environment, and was moving to certify its operations according to industry-set sustainability guidelines. In 2010, Asian Agri appeared well positioned to capitalize on the growing palm oil market, but the broad-strokes vilification of the palm oil industry was a source of serious concern. In the face of great uncertainty, the management team needed to devise a strategy for the future. -
Stalemate at the WTO: TRIPS, Agricultural Subsidies, and the Doha Round
This note analyzes disputes over intellectual property enforcement and agricultural trade barriers at the center of the Doha Round of World Trade Organization (WTO) negotiations. Fundamental principles of intellectual property rights and agricultural subsidies are described, along with the challenges of creating and operating multilateral institutions. The note begins with a brief history of multilateral negotiations under the General Agreement on Tariffs and Trade (GATT), then describes key events of the Doha Round that began in 2001, and the WTO's dispute settlement process. A stalemate has developed between developed and developing countries in WTO talks, leading to the proliferation of bilateral agreements. The note challenges readers to develop an informed position on global trade governance and the economic benefits and political tradeoffs associated with reduced trade barriers and the elimination of domestic subsidies. -
Growing Pains at Stroz Friedberg
In late spring 2009, Stroz Friedberg co-presidents Edward Stroz and Eric Friedberg had to set growth targets for 2010. The leading global consulting firm they had built specialized in managing digital risk and uncovering digital evidence and had grown very rapidly. With the firm's CFO, they believed that the firm could grow from $58 million to $72 million, a growth rate of 27% over the preceding year. However, the firm's 11 offices had submitted first draft FY 2010 plans that together added up to firm-wide revenues of only $53 million, a growth rate of negative 10.2%. The preceding years of rapid growth had been successful but challenging, and a thorough review of the firm's culture, systems, structure, and processes in late 2008 had resulted in a significant set of changes to which the organization was still adjusting. Stroz and Friedberg wondered whether to push for continued, aggressive growth. -
Ten Tools for Design Thinking
This technical note is part of a course module that focuses on teaching design-thinking skills and 10 tools to identify and implement innovation and growth opportunities. It can be taught to MBA, undergraduate, or executive groups. The note and its accompanying teaching note includes an explanation of why design thinking is a useful addition to a business curriculum, an outline for a 15-session course, a description of the 10 design tools taught, and a set of student exercises to practice them. It also summarizes a series of 10 video interviews with leading designers and teachers that are available for free on the designing at Darden website. -
Lamont Golf Club: What Next?
Lamont, a private golf club, had survived another year, but things weren't like the good old days, when waiting lists to join were long, environmental issues were not front and centre, and outside tournaments as a source of revenue were plentiful. The general manager has to work through a changing environment and the current situation at Lamont to set a new direction for the club. How is the club to grow, given old and new clubs drawing existing and potential members away from Lamont, declining corporate budgets to support golf outings, and competition for charity tournaments and events such as weddings? How could the general manager deliver the expected profits with costs increasing by at least 10 per cent per year? -
Yum! China
Since the first KFC opened in China in 1987, Yum--under Sam Su's leadership--had built the largest restaurant company by far in mainland China. Averaging one new restaurant opening a day for the past five years, in 2010 Yum ran over 3,600 restaurants in 650 cities and employed over 250,000 people, many of them college students in their first jobs. In the third quarter of 2010, Yum China's revenues surpassed U.S. revenues for the first time and many analysts expected that Yum's China business--driven by a rapidly growing middle class--would be twice as large as its U.S. business within five years. But before rushing out to open thousands more stores, Su wondered what the company should do to forestall some of the problems plaguing the fast food industry in the West. -
Fortis Industries, Inc. (A)
Fortis Industries' packaging division manufactures steel and plastic strapping. In 2007, the company underwent a leveraged buyout. The case focuses on the packaging division's need to maintain high profitability in a declining market for steel strapping. Since 1998, Fortis has been losing 1% per year of the steel strapping market. Since then, there has also been significant erosion of prices. The division president is faced with 1) decreasing price to increase market share, or 2) maintain/increase cash flow. The specific decision revolves around the potential adoption of a price-flex system that is designed to authorize selective discounting by the division's sales personnel. -
Fortis Industries, Inc. (B)
Describes whether the company adopts the price-flex policy discussed in the (A) case. Price increase in steel strapping raw materials is rescinded by steel industry. -
Fortis Industries, Inc. (C)
Describes whether the company adopts the price-flex policy described in the (A) and (B) cases. -
Fortis Industries, Inc. (D)
Fortis' packaging division president makes a final decision on the price-flex policy. -
D-Bamboo Home and Garden Shop
The owner of a small home and garden shop in Chaguanas, Trinidad is faced with declining sales and the recent entry of a competitor offering similar products at competitive prices. In order to compete, he is thinking of moving to a larger location and expanding his business to capitalize on emerging opportunities, such as the demand for landscaping services by wealthy professionals. He is uncertain how his current customers would react to such a move and is considering what kind of marketing activities he should engage in to ensure the business's long-term survival. -
What Makes a Policy Intervention Successful? Glimpses of experience in Brazil's Fundescola education reform, Part B
Fundescola is an educational reform introduced in Brazil in the first decade of the 21st century. It was introduced after Brazil's successful educational access reforms in the 1990s led to skyrocketing enrollment rates, leaving schools unprepared and under-resourced. This led to problems with education quality, especially in poorer communities and poorer states in the North-East. Fundescola was developed by the Federal Government and the World Bank in response. It blended decentralization of funds to schools with the adoption of various new management practices-like strategic planning-to make the schools more effective in providing education. The intervention was subjected to various World Bank evaluations and generally presented as a success. HKS Case Number 1928.1 -
A350 XWB: Airbus' answer to Boeing's Dreamliner
The case describes the strategic moves of Airbus in the twin-aisle-twin segment following Boeing's announcement of the launch of its 787 Dreamliner. Airbus's clients initially reacted negatively to the strategic response by criticizing the design. By the end of 2006, however, there were positive signs that the new design, the A350 XWB, would be able to find its market. The formal industrial launch had not yet been made and the A350 management office had been asked to prepare a series of proposals to the board of EADS regarding the next steps. -
Logoplaste: Global Growing Challenges
In 2010, Logoplaste, a top 10 manufacturer of rigid plastic containers, was debating a more dramatic expansion strategy as a means to guarantee the company's continued success. The company, which began with a few plants in Portugal in the 1990s, now had 60 plants across five continents and was a valued partner to large multinational consumer goods companies, many of which were pressuring Logoplaste to expand. -
Vodafone in Japan (A)
Despite a rough start in the Japanese telecom market, by late 2003, Vodafone seemed to have weathered the storm, largely based on the strength of their mobile phone unit. But was it simply the calm before the storm? -
Vodafone in Japan (B)
By 2005, Vodafone Group was losing its footing in the sophisticated Japanese telecom market. What were they doing wrong? Should they cut their losses and leave Japan, or could they learn from mistakes and turn things around?