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After 15 years of great performance, Target's faltering performance during an economic downturn led an activist shareholder to initiate a proxy fight. Target Corporation, the second-largest discount store retailer in the U.S., had competed successfully against industry leader Walmart for years by promoting an upscale discount shopping experience in comparison to Walmart's focus on low prices. This strategy worked well for Target in good economic times. The economic crisis of 2008-2009, however, caused shoppers to abandon Target in favor of Walmart. In the spring of 2009, one of Target's largest shareholders initiated a proxy fight to place his five director nominees on the board. Target won the proxy fight, but still faced questions about whether it had a strategy that could work in both good times and bad.

For 200 years, there were substantial differences among U.S. regions in per capita incomes and economic growth. Each region had a distinct set of economic activities and, to a major degree, the differences in regional economic performance were linked to the differences in economic structure. Individual states experienced periods of expansion and contraction as the basic business activities dominating their economy expanded and contracted. These changes led to significant migration of people and businesses among regions and to a gradual narrowing, since the 1930s, of regional disparities. Over the period of 1990 to 2007, the United States experienced outstanding economic success. Many analysts expressed the view that this economic success rested on consistently high productivity growth. The public philosophy supported low taxes and low government expenditure for health, education and welfare, with a heavy reliance on the need for each individual to succeed on one's own. In the second half of the 20th century, a general recognition developed that knowledge has a major impact on economic growth, and that increasingly intense international competition is based upon knowledge and innovation. Each nation, as well as each region within a nation, has a distinct "innovation system." At the forefront has been the United States. By the fall of 2008, it was clear that the United States had entered a major financial and economic crisis, and that reforms might be needed to achieve recovery and to prevent a recurrence.

In February 2008, the president of Vacances Paradis Inc. (Paradise) was assessing his options for the company's competitive strategy for the future. Paradise was Quebec's market leader in the tour operating industry but was facing a significant challenge: FunTours Holidays (FunTours) had stolen a sizeable portion of Ontario's market share in only two years and was planning on conquering the Quebec market for the 2008/09 winter season. FunTours' aggressive strategy was to provide large capacity at low prices, thus creating a price war and decreased margins. The president had to consider how to meet FunTours' threat in the face of several challenges: the tour industry was fundamentally changing as a result of shifting from traditional travel agents towards Internet distribution; limited differentiation in product offering forced competing on price; and a growing customer base as more people could afford travel. Price had emerged as the dominant criteria for travelers and a huge consideration for tour operators. The president wondered which strategy would be best for the company's short- and long-term viability.

Spreadsheet Supplement for case 109010

Describes an IT security crisis, and raises issues of risk management, preparation for crisis, management of crises, computer security, and public disclosure of security risks.

The chief executive officer (CEO) and owner of Alara Agri, a major Turkish cherry and fig producer, wants to convince retailers in Belgium and Germany (and, later, other parts of Europe) to change cherries from a bulk product to a higher-end luxury product packaged in small carry bags. The move from bulk to small packages has been highly successful in the United Kingdom where retailers reduced waste and increased margins. The German and Belgian retailers are resisting the change, claiming greater price sensitivity in their consumer base. The CEO thinks he needs a detailed test marketing plan to offer to selected retailers.

In late May 2009, Albert Bohemier, CEO of Survival Systems Limited (SSL), located in Dartmouth, Nova Scotia, paced the deck of the training pool at Survival Training Simulation Theatre wondering how best to transition the company to new leadership. During the past five years, attempts at succession planning had been unsuccessful. As the leader of the company for over 25 years, Bohemier was ready to retire, but there were many aspects of succession planning to consider. Bohemier's personal criteria for incoming leadership were threefold: it had to be good for SSL's existing clients, a positive move for the company as a whole and good for the current team.

Taiwan-based HTC Corp. had emerged as the world's fourth largest smartphone manufacturer by 2009. CEO Peter Chou was extremely proud of the remarkable achievements his company had made over the last 12 years since starting off as an unknown manufacturer of PDAs for other companies. Yet Chou faced several decisions in order to move his company forward. Competition for high-end, sophisticated mobile devices was intensifying as HTC faced big name players such as Nokia, Apple, and Samsung Electronics. Many companies were offering their own application stores. What did HTC have to do to become a more powerful global brand? Where should HTC participate in the value chain in one of the most exciting, innovative product categories in the technology world?

This case highlights the issues around money market mutual funds in the financial crisis of 2008.

An audit committee chair considers how he can help his committee become more effective given the increasing regulatory demands on audit committees. He also wrestles with the lack of specificity in audit committee duties and whether his committee should take on additional responsibilities. In particular, he considers the growing concern over risk oversight and wonders what kinds of risks the audit committee should consider and whether they should be the sole repository for risk management. This case includes a historical overview of the beginnings and evolution of audit committees, and the laws and regulations that have affected its role over time.

The note describes a systematic process for framing and researching the issues that should be analyzed in the course of considering a new venture idea.

The case narrates the story of the Rodamas Group, owned by the ethnic Chinese Tan family in Indonesia. The company started as a trading firm in 1951 and, over time, became a joint venture partner in manufacturing businesses with a range of mainly Japanese partners after Indonesia started to embark on an industrialization program in the late 1960s. In the 1980s, the company was slowly transferred to the second generation leader, and continued to grow and prosper until it became part of the top-20 business groups in Indonesia. The businesses included glass manufacturing (with Asahi), personal care products (with Kao), packaging (with Dai Nippon) and MSG production. The role of Rodamas in these partnerships was to deal with local regulations, hire local personnel and distribute the products in Indonesia. When the then President Suharto was toppled in the Asian Crisis in 1998, Indonesia underwent several drastic changes, including the transition to democracy. Its economy became more open, and foreign firms were allowed to operate in the country without having a local partner. In addition, several global business developments, including the tendency of multinationals to rely on lawyers and consultants rather than local equity partners, threatened the Rodamas business model. In view of this, the current leader, Mucki Tan, is reconsidering the future of his company and weighing a few options. The case ends with these strategic options: 1) internationalize with existing partners; 2) develop own businesses that need little technology, such as property; 3) buy existing manufacturing firms; 4) focus on distribution of products for foreign multinationals; 5) focus on a traditional partnership role with a new wave of foreign direct investment (FDI) from developing market multinationals, more specifically, China. Students are asked to analyze the company and its environment, decide on a strategic direction and reflect on the consequences.

Dedicated to offering high-tech solutions for environmental and social problems, a privately-owned Malaysian conglomerate, Petra Group, aimed to innovate the recycling of rubber waste. Since the 1990s, the group had tried to transform rubber waste using its patented DeLink technology to produce reusable rubber, which it branded as Green Rubber. Despite failing to make a sound industrial impact with the technology in the mid-1990s, the company wanted to reintroduce the eco-friendly solution in the new millennium. Through its subsidiary, Green Rubber Global ("GRG"), the group progressively explored partnerships with those wanted to be part of increasing demand for environmentally friendly products. In 2007, GRG opened the first US-based rubber recycling plant in New Mexico, with the support of the state government. Vinod Sekhar, the founder and chief executive of GRG and Petra Group, envisages Green Rubber becoming a global trademark for most rubber-based products, the way "Intel Inside" has for computers. However, there was industrial skepticism not only about the cost-efficiency of DeLink technology, but also the quality of Green Rubber, partly due to GRG's failure in the market a decade before. Would GRG's past failure be a stumbling block for its future business development? Would increased global expectations for corporate environmental and social responsibility be the stepping stone to a lucrative success? Because "green" claims had been over-exploited by marketers in recent years, there was also cynicism about commercial corporations selling green products. How could GRG successfully run a business driven by commercial principles that also aimed to sustain environmental and social progress? And how will GRG benefit from its connection with the parent company?

The New Delhi Water and Power case compares the efforts by the government of the capital territory of New Delhi to privatize its electric distribution company and reform its municipal water company. The case introduces students to problems surrounding the delivery of water and power infrastructure services common in developing countries and the challenges that governments face when they attempt to reform these two sectors. The case can be taught as a technical and financial assessment of designing effective reforms for public infrastructure or as a strategic and political case, exploring the tactical and communication challenges that emerge with efforts to involve the private sector in functions that have historically been provided by the public sector. HKS Case Number 1891.0

The case illustrates a grassroots enterprise path to self-sufficiency in a subsistence market context. It explores the gradual evolution of a business model with strong pro-social mandates (pro-health, pro-women) and asks which growth options may best marry profitability and positive social change. The Mwanza-based Yogurt Mamas emerge as entrepreneurial role models in their communities; with funds from Western donors, and an exciting new technology, they seem set on their way to success. Yet close-up analyses reveal several outstanding concerns, including funding sufficiency, clarity of roles and responsibilities, patent restrictions, kitchen ownership, food safety and quality concerns and liability concerns among others. Despite positive health impact assessments, the venture is struggling to grow - and growth is the key to its future. Focused on a mix non-profit and retail model, the Yogurt Mamas produce and locally distribute a probiotic yogurt to their small community; they are interconnected in a local value chain, and benefit from annual inflows of disciplinary expertise from western partners, including free access to patented technology and free culturing of probiotic bacteria in a local lab. However, as the project funding winds down, business issues come to the fore. The case asks students to critically analyze the hurdles to profitability and suggest working solutions to scaling up the venture. Options include technology/model licensing and franchising, organic growth and expansion along value chain links to gain higher margins and greater control over the milk supply and to extend their distribution reach to neighboring communities. If the Yogurt Mamas cannot find an attractive and feasible growth option, the partners will have to contemplate venture termination once the grant funding comes to an end, or consider alternative exit options, including partnerships or adjacent business models.

The founder and sole shareholder of a financial planning company must decide whether to hire a new adviser or purchase a block of business from another financial planner. Students are asked to perform an industry analysis, a corporate size-up and consumer analysis. Students are also required to complete a statement of cash flows, a financial ratio analysis and a differential analysis. Students must design a marketing plan and prepare projected financial statements.

The case describes the foundation of Christian Dior, the leading Parisian fashion house, in 1946 and its subsequent globalization strategy. After explaining the historical origins of France's pre-eminence in upscale fashion, the case explores the challenges to this position from New York after World War 2, and the importance of Christian Dior's New Look in restoring French fashion to world leadership. The case examines, in particular, Dior's innovative strategy to combine a high fashion business in Paris with a ready-to-wear business in New York, and his subsequent pursuit of licensing opportunities in jewelry and other luxury products. The case provides an opportunity to explore the role of creativity in the luxury fashion industry, and the challenges and opportunities of globalizing such an industry.     

In October 1941, a top secret envoy from the U.S. military was sent to Crosley Corporation in Cincinnati, Ohio to request their assistance to construct a weapon that would drastically strengthen the defenses of U.S. troops: the proximity fuze. Such a fuze would allow enemy aircraft to be shot down with a rate of accuracy well above that of previous weaponry. The task would be a challenging one, as conventional wisdom held that it took at least four years for a weapon to go from concept to production, whereas the proximity fuze was needed on a shorter time frame. Moreover, the production process would be complex, requiring hundreds of components produced by dozens of manufacturers, all of which Crosley would have to assemble to produce the finished product. Would Crosley accept the assignment?

Describes a young fashion company competing in a variety of unconventional ways, many "experience economy" related. Moods fronts their brand with the "boy band" images of its three founders and designs eccentric features into their clothes as a way of gaining mindshare among customers even though they cannot spend on marketing the way their competitors do. The case invites students to explore an unusual business model in both concept and execution.

Goldman Sachs' five-year, $100 million philanthropic initiative to provide practical business and management education to 10,000 women around the globe recently celebrated its first anniversary and over 1,200 women were either enrolled in, or graduated from sponsored certificate programs. The case describes the conception, development and implementation of the initiative and outlines some key strategic decisions facing the firm as they roll-out the program over the coming years. These include: how to organize the network of schools that deliver the educational services, how to determine the best outside partners to provide additional services for the women entrepreneurs, how to best assess the impact of the program, and finally the extent to which the initiative provides contributions to the long-term strategy of the firm.