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Bank4's New CHRO Confronts Health Care Costs
This case explores the challenges facing a new Chief Human Resources Officer as she evaluates health insurance benefits at a financial services company with 100,000 employees. Bank4 faces increasing costs while its employees see rising out-of-pocket expenses. Students will participate in workgroups focusing on pharmacy, provider prices, benefit and plan design, or prevention and wellness to evaluate the different options to address rising health care costs. -
Lakeshore Tea Company: Merchandising Operations
At month's end in May 2021, the owner of Lakeshore Tea Company Inc. (Lakeshore) located in Mississauga, Ontario, Canada, was reviewing her company's merchandising operations for the preceding month. Lakeshore operated as an herbal tea processor and supplier, importing herbs and tea leaves from a variety of sources across the globe. Over its first two years of operations Lakeshore had experienced significant growth and had begun supplying a variety of restaurants, health food stores, and small grocery outlets in the Greater Toronto Area. The owner was now tasked with recording all accounting entries relating to Lakeshore's merchandising operations for the past month. -
Uncertainty in Surgical Supplies-A Cardinal Error (A): Decision-Making as a Crisis Unfolds
This case set is about the unfolding uncertainty associated with a supply chain issue involving Cardinal Health (Cardinal), the primary supplier of surgical packs to Garfield Health System (GHS). John Jenkins, MD, the newly appointed chief medical officer (CMO) at a medium-size university hospital at GHS, must assess the issue and respond as Cardinal notifies GHS of potential contamination in the manufacture of surgical gowns. Cardinal initially notifies customers of a potential problem, and then over the next several days, releases more information, culminating in the recall of virtually all of its surgical supply packs. Many institutions, including GHS, are thus forced into a dire situation, resulting in some cases in cancelation of surgical procedures. In this A case, Cardinal issues its first warning of a potential contamination problem. In the B and C cases, the crisis unfolds, and in the D case, a new crisis appears. This case set could be utilized in health care courses or courses in business decision-making. -
Uncertainty in Surgical Supplies-A Cardinal Error (B): Decision-Making as a Crisis Unfolds
Case Supplement for Case UV8665 -
Uncertainty in Surgical Supplies-A Cardinal Error (C): Decision-Making as a Crisis Unfolds
"This case set is about the unfolding uncertainty associated with a supply chain issue involving Cardinal Health (Cardinal), the primary supplier of surgical packs to Garfield Health System (GHS). John Jenkins, MD, the newly appointed chief medical officer (CMO) at a medium-size university hospital at GHS, must assess the issue and respond as Cardinal notifies GHS of potential contamination in the manufacture of surgical gowns. Cardinal initially notifies customers of a potential problem, and then over the next several days, releases more information, culminating in the recall of virtually all of its surgical supply packs. Many institutions, including GHS, are thus forced into a dire situation, resulting in some cases in cancelation of surgical procedures. In the A case, Cardinal issues its first warning of a potential contamination problem. In the B case, Cardinal warns that only a specific set of surgical gowns has been affected. In this C case, Jenkins learns that all the elements in Cardinal's surgical packs have been compromised. This case set could be utilized in health care courses or courses in business decision-making." -
Uncertainty in Surgical Supplies-A Cardinal Error (D): Uncertainty in Everything as COVID-19 Arrives
This case set is about the unfolding uncertainty associated with a supply chain issue involving Cardinal Health (Cardinal), the primary supplier of surgical packs to Garfield Health System (GHS). John Jenkins, MD, the newly appointed chief medical officer (CMO) at a medium-size university hospital at GHS, must assess the issue and respond as Cardinal notifies GHS of potential contamination in the manufacture of surgical gowns. Cardinal initially notifies customers of a potential problem, and then over the next several days, releases more information, culminating in the recall of virtually all of its surgical supply packs. Many institutions, including GHS, are thus forced into a dire situation, resulting in some cases in cancelation of surgical procedures. In this D case, the contamination crisis has been resolved, but a new and potentially much more serious crisis looms: COVID-19. This case set could be utilized in health care courses or courses in business decision-making. -
Haidilao International Holding Ltd: Initial Public Offering for Expansion
On September 26, 2018, the Chinese hotpot chain Haidilao International Holding Ltd. launched an initial public offering, during a time of ongoing trade tensions between the United States and China, and started trading of the company's shares on the Hong Kong Stock Exchange. The Beijing-based company sold 424.5 million shares at HK$17.8 (US$2.27) per share, which was on the high end of the indicative price range. Its price-to-earnings ratio of 30.2 was higher than that of its peers, which ranged from 16 to 27. In addition, the CSI 300 Index, which monitored the performance of 300 stocks on the Shanghai Stock Exchange and the Shenzhen Stock Exchange, was down 27 per cent year-to-date at that time. Another key factor was that the company's stock would likely be included on the Stock Connect program that enabled access from Mainland China to the Hong Kong Stock Exchange. Investors had an opportunity to value the company at the time of the initial public offering launch and analyze the information provided in the company's prospectus. Based on their assessment, investors had to decide if the company's stock was a good investment. -
Haidilao International Holding Ltd: Initial Public Offering for Expansion, Student Spreadsheet
Student Spreadsheet to accompany product W24090. -
Leading The UK Vaccine Task Force
This case describes the first six months of the UK Vaccine Taskforce, under the leadership of Kate Bingham. With a career spent in the private sector as a biotech investor, Bingham's appointment within the government was considered unusual. The overarching brief given to her by the UK Prime Minister was simple: "Stop people from dying." At that time, however, no vaccine for human coronaviruses had ever been successfully developed, and the average time to take any new vaccine to market was over ten years. Furthermore, the UK had a relatively weak market position. Bingham assembled a senior leadership team of private sector experts and civil servants with the skills required to think about how to make vaccines, test them, deliver them, and build long-term resiliency into the system. Beyond building a diversified portfolio of vaccine candidates, the team took a commercial approach and aimed to make the UK the best global client possible. While there were some frictions due to the unusual setup of the taskforce, the team's work was an unequivocal success. The UK became the first country to approve and administer a COVID-19 vaccine outside of a clinical trial context, and had placed its bets on safe and effective vaccines. -
Stanford Health Care: Telehealth During a Global Pandemic
This case describes the rapid shift to a virtual care model at Stanford Health Care following the onset of the COVID-19 pandemic in March 2019. SHC's quick pivot allowed caregivers to continue to monitor, diagnose, and treat patients, while also preventing the spread of disease within SHC facilities. Financial considerations and insurance reimbursement issues are covered, and the case concludes with the discussion of a post-pandemic strategy for the long-term use of telehealth at SHC. The case also discusses the history of the telehealth industry. -
Linking Executive Compensation to Climate Performance
Climate change has risen to board level on the corporate agenda. Under pressure from institutional investors, companies are reformulating their strategies for a low-carbon world. A novel aspect of the emerging corporate response is that executive compensation is being linked to climate performance. This article examines the different ways that climate-linked incentive pay is used at European and U.S. energy majors, and it develops a framework - aimed at companies in "hard-to-decarbonize" sectors - to understand the benefits, challenges, and key design options. It also makes recommendations on how this organizational practice might be refined over time. -
Xiabu Xiabu: From Hotpot to Crisis Management
On September 6, 2018, a couple was enjoying a meal at a hotpot restaurant in Weifang, Shandong Province, China. The restaurant was a branch of the popular Chinese hotpot restaurant chain owned by Xiabuxiabu Catering Management (China) Holdings Co. Ltd. (Xiabu Xiabu). Halfway through the meal, the pregnant wife found a dead rat in her soup. The news spread on social media, and according to some analysts, Xiabu Xiabu's share price dropped US$190 million in market value. Had Xiabu Xiabu's lack of quality assurance undermined the company's success? How could the company improve its risk and crisis management? -
Breastcancer.org: Fundraising Challenges of a Social Enterprise in a Crowded Market
Breastcancer.org (BCO), a small, Pennsylvania-based non-profit organization with a $5.4 million annual budget in 2020, was looking ahead several months to the start of Pink October (also known as Breast Cancer Awareness Month). Unlike the many non-profits that focused on medical research to find a cure for breast cancer, BCO was dedicated to helping patients and their caregivers make sense of complex information, and it had established a digital community that became a trusted source of information and stories. BCO's vice-president of partnerships and development was preparing for the 2019-2020 fiscal year-end review with the chief executive officer and the board of directors. While BCO was not at risk of closing, it had to find ways to increase revenue beyond individual donations and corporate sponsorships. The organization needed funding from additional revenue streams to expand its program offering, and the vice-president had just a few weeks to complete her assessment of BCO's assets and revenue strategy, which she would present to the board. -
Top Performers Have a Superpower: Happiness
Research research has found that employee happiness, well-being, and an optimistic outlook are powerful predictors of how well that employee performs. Business executives who consciously promote employee well-being and take steps to eliminate toxic leadership in their business units will reap the benefits. -
Toraya
Mitsuharu Kurokawa was the 18th generation leader of a family firm that produced and sold premium Japanese sweets, Toraya Confectionery Co., Ltd. He had succeeded the business from his father, Mitsuhiro Kurokawa who had led the firm for thirty years. Mitsuharu was committed to following his predecessors who had strived to please customers with delicious Japanese sweets. The challenge was how he could further improve product quality and diversify the product line to please the customers of today without affecting Toraya's brand image. Mitsuharu also believed that plant-derived "yokan" (a traditional sweet using azuki bean paste) was healthy and had the potential to become a global popular sweet, like chocolate. Thus as a long-term goal, Mitsuharu had an ambition to offer Japanese sweets to customers around the world. In planning ways to further grow the business, Mitsuharu had to pin down exactly how the family business was defined in relation to his family. He also needed to identify what role of prominence his family's position within the highest tier of decision-making meant for the rest of the larger "Toraya family," which included longtime employees. Would Mitsuharu's endeavor to expand the product line to reach a wider customer base be in line with the well-being of the company? Would there be a risk of damaging Toraya's image as a luxury brand? Would global expansion be the right decision for the firm with a long history of offering traditional sweets to premium customers in Japan? -
Paul Polman
Over his 40-year career, Paul Polman had led some of the world's largest consumer goods companies, making his biggest mark as CEO of Unilever-a multi-national corporation that produced everything from soap to soup. Polman was also well-regarded as a leader in corporate social responsibility (CSR) and had consistently staked his career on the message that doing better for the planet and its inhabitants ultimately made for better business. Many called him visionary; others felt he was misguided. But thanks to his sterling business credentials, when Polman spoke, people listened. And speak out he did, trying to win over corporate leaders to his vision of how business should serve society, and not the other way around. Now, having stepped down from Unilever and living in the midst of the biggest global health crisis in a century, he wondered how to rally business and civic leaders to do more to fight climate change, preserve biodiversity, and reduce global inequity. -
Lilium: Preparing for Takeoff
Lilium is a German company focused on developing electric vertical takeoff and landing vehicles (eVTOLs) that can be used to offer air taxi services. The company went public in September 2021 through a special purpose acquisition company (SPAC) deal, raising more than $800 million. While Daniel Wiegand (the co-founder and CEO) is confident about the design of the company's latest seven-seater aircraft, he is still struggling with the business model. Lilium has three main options. First, it can offer air mobility services to passengers, i.e., become a full-service B2C company. Second, it can become an original equipment manufacturer (OEM), selling its jets to other companies that offer mobility services (B2B option). Third, Lilium can choose a hybrid option, offering air mobility to end-users in certain markets while selling its jets to other air mobility service providers. -
Ample Hills Creamery
Ample Hills Creamery started in 2010 as a temporary ice cream pushcart in Brooklyn, New York City. On the strength of inventive flavors and clever marketing, husband-and-wife founders Brian Smith and Jackie Cuscuna built a premium, artisanal dessert empire of 16 retail locations in four states. However, some decisions that fueled their rapid growth were double-edged swords. Licensed partnerships with Disney raised the brand's profile, but necessitated expanding production. The factory they built was expensive and introduced new logistical challenges. And the native New Yorkers were unhappy with a pricey West Coast expansion. In March 2020, they filed for bankruptcy, disappointing the venture capital investors they had attracted and the legions of fans who did not understand why the popular brand was not turning a profit. The protagonists' story continues in The Social (HBS No. 822-074), which tells the story of their second ice cream venture. -
Launching the Social
This case features the same protagonists as Ample Hills Creamery (HBS No. 822-073), and can be used as a continuation of that story. Ample Hills Creamery started in 2010 as a temporary ice cream pushcart in Brooklyn, New York City. On the strength of inventive flavors and clever marketing, husband-and-wife founders Brian Smith and Jackie Cuscuna built a premium, artisanal dessert empire of 16 retail locations in four states. However, some decisions that fueled their rapid growth were double-edged swords, and the couple filed for corporate and personal bankruptcy in 2020. After ruminating on their mistakes, Smith and Cuscuna decided to start another premium ice cream brand, at a much smaller scale, using the lessons they learned in their Ample Hills experience. -
Peloton Interactive, Inc.: Connecting to Fitness at Home
On May 24, 2021, Peloton Interactive, Inc. (Peloton) announced its intention to build a new US factory to produce its stationary bicycles and treadmills. The new factory, which would be located in Ohio, was an addition to the company's investments in its manufacturing facility in Taiwan and its purchase of fitness equipment manufacturer Precor Incorporated. In deciding to invest in its own production facilities to supply exercise equipment, Peloton was in stark contrast to its competitors, who predominantly outsourced production overseas. Would Peloton's plans to build its own fitness equipment in Ohio help or hinder its ability to fulfill its goal of market leadership?