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PhonePe: Democratizing Payments in India
The co-founders of PhonePe, India's leading digital payment platform are considering pursuing various growth opportunities in a huge country just entering the digital age. In a highly competitive industry, the founders are keenly aware that making the right choices is not only a matter of opportunity cost but critical to preserving the company's market leadership. PhonePe began as an enabling platform between parties and, unlike some of its competitors, did not get involved up to now in the direct delivery of goods and services. But PhonePe's brand and reach make it relevant now to revisit the question. In the next board meeting, three areas of obvious digital potential are likely to come up: lending, education and gaming. Another is taking the model international. What should the founders recommend to their board? -
upGrad: Delivering Career Outcomes Online: Degree by Degree
In August 2021, the founders of upGrad, the latest unicorn in the Indian higher education online space, were deciding how to best use the funds to execute on their ambitious growth plans. Ronnie Screwvala, Mayank Kumar and Phalgun Kompalli had envisioned upGrad as an online education platform to enable working professionals to access university degrees from around the world. The pandemic induced lockdowns that confined millions to their homes due to COVID-19, supercharged the growth of upGrad, and indeed all online higher education providers, leading to both growth and competition. The founders of upGrad were keen to ensure they would continue to be a winner in the evolving sector-but which route should they prioritize? Should upGrad continue to focus on offering academic credentials through university partnerships to working professionals, or strengthen their position in the college learners (aged 18 to 23) segment by offering job-oriented test prep and bachelor's degrees? -
The Big Blue: Starting a Real Estate Firm
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Coinbase: The Exchange of the Cryptos
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Diversifying P&G's Supplier Base (A)
In February 2003, P&G hosted two meetings-one with its largest woman- and minority-owned suppliers and one with its largest non-minority-owned suppliers. Attendees in each meeting heard the same message: P&G was keen to grow its commitment to inclusive supply chains, but felt hamstrung by the limited scale and scope of its existing woman- and minority-owned suppliers. It was up to the attendees to determine how to work together to meet P&G's needs. Otherwise, the consumer packaged goods giant would be forced to look outside its home city of Cincinnati, Ohio, for diverse suppliers at scale. This case tells the story of how Carl Satterwhite, president and co-owner of Infinity Services, a minority-owned furniture installation business, and J. Scott Robertson, president and owner of Globe Business Interiors (GBI), a non-minority-owned office furniture company, responded to P&G's call. -
Diversifying P&G's Supplier Base (B)
This (B) case accompanies the (A) case of the same title. -
Jeevika: Supporting Producers at the Base of the Pyramid
In May 2019, project managers with the Bihar Rural Livelihoods Promotion Society (Jeevika) in Patna, India, met to consider their role in creating farmer producer companies (FPCs) that helped poor agricultural producers access markets and receive fair prices for their produce, mainly litchi fruit. The creation of such producer companies was not a spontaneous process but often required a catalyst to harness community-based networks. While Jeevika, a project supported by the Government of Bihar and the World Bank, had been successful in alleviating poverty among those at the base of the economic pyramid, the project managers were now reflecting on the way forward for the producer company. Their overarching aim was a comprehensive understanding of the effects of their efforts on the community and the key variables affecting the sustainability of their efforts. They were aware that they could not support the community indefinitely, and they needed to consider how best to empower the producers to do this work on their own once Jeevika was no longer available. What new capabilities would farmers need to develop over time? How would the relationships between farmers and other stakeholders change when support from Jeevika was reduced or removed? -
Project Maji: Pricing Water in Sub-Saharan Africa
In July 2021, Sunil Lalvani, founder and CEO of Project Maji, a non-profit social enterprise headquartered in Dubai that had already provided sustainable, clean water solutions to 80,000 people living in rural communities across Ghana and Kenya, was facing an important decision. Traditionally, fees collected from community members covered the operating and maintenance costs of the solar-powered water kiosks, while donations paid the initial capital expenditure and setup costs. Yet Lalvani needed a more scalable financing solution to reach a hefty goal: impacting 1 million lives by 2025. Serving larger, more affluent peri-urban communities was a viable alternative, as the additional revenue could be channeled to rural projects. Thus, Lalvani and his team worked on a pilot for three peri-urban sites and looked to Danone Communities, a venture capital fund that invested in social businesses, to provide a loan. The team mapped out a feasible system, but debated what fees to charge residents. A low price meant that Project Maji would pay off the loan for the first four years, and only then start accumulating funds to support its activities in rural areas. This would delay scaling. Alternatively, a high price, coupled with an offer to establish direct connections in more well-off households, would allow Project Maji to generate excess earned revenue from the get-go, but it would also raise questions of equitability. All of this weighed on Lalvani as he pondered what price point to include in the investment proposal. -
HOW COVID-19 TESTS ENTREPRENEURS' AGILITY (A): SUCCESS HANGING IN THE BALANCE
Case A focuses on how entrepreneurs and leaders deal with sudden unexpected events and crises. It describes the tensions that Russian female entrepreneur and CEO Anastasia Tatulova had to deal with in response to the coronavirus pandemic that wrought wide-scale disruption on society and businesses across the world. Tatulova founded the AnderSon café to address a lack of family-friendly cafés in Russia. Having started in 2009 with a single café in Moscow, AnderSon celebrated its 10th anniversary in 2019 as a chain of 52 cafés in Russia and neighboring countries. It employed 1,500 staff in its cafés and in the "Factory of Happiness," which produced the confectionery sold in the cafés. At the beginning of 2020, Tatulova was poised to expand her business with outside investment, but by March, as COVID-19 triggered restrictions and the shutdown of society, her core business was paralyzed by a 90% drop in sales. This put her in the critical situation of having to fight for AnderSon's survival. Along with other small and medium enterprises (SMEs) in Russia, AnderSon was obliged to pay staff during the lockdown and received very limited government support. The case highlights the struggles that Tatulova faced and it ends with her having to decide what to do with her business. -
HOW COVID-19 TESTS ENTREPRENEURS' AGILITY (B): MOBILIZING THROUGH THE CRISIS
Case B describes Tatulova's actions in response to the crisis. This included a meeting with President Putin to discuss the situation of small businesses. Tatulova's speech, in which she pleaded with him to support Russian entrepreneurs, made her very visible in Russia and propelled her into a nationwide role as the ombudsman for small businesses during the crisis. This new role provided her with an opportunity to influence at a broader level, yet it diverted time from nurturing her own business. Her choice to accept the ombudsman role provides an opportunity to discuss what motivates entrepreneurs to stretch and reinvent themselves and the role of communication and networks in crisis management. -
AI-at-Scale Hinges on Gaining a 'Social License'
For AI deployments to succeed, the systems must be trusted and accepted by those who use their input and those who are affected by the decisions these systems make or support. That means being accountable for the use and outputs of AI technologies, and transparently communicating both the benefits and drawbacks to all stakeholders. The authors describe the three sources of stakeholders' trust in artificial intelligence and suggest four steps companies can take to earn that trust. -
A Framework for Understanding Racial Disadvantage within Organizations
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Sparking Growth at Consumer Reports
Consumer Reports (CR) is a nonprofit organization that traditionally provided independent testing and research on consumer goods. With the need to diversify its audience and revenue streams CR partnered with market research firm Spark No. 9 to identify potential digital products and services for younger audiences using digital marketing tests. This case provides background on various social media platforms and their advertising offerings along with details on running "smoke tests" to validate product concepts before investing resources to build them. -
Jay Bharat Spices Pvt. Ltd.: A Spicy Quandary
Jay Bharat Spices Pvt. Ltd., a company located in Cuttack, India, was involved in the manufacturing and distribution of spices across India under the brand name Bharat Masala. The company specialized in producing basic spices such as turmeric powder, cumin powder, and chili powder. The senior management team had recently noticed a rise in demand for the spice garam masala in the East India market and asked the company's vice-president of East India operations to oversee the launch of this new product over the next six months. The vice-president was now struggling with multiple constraints related to the launch, including storage capacity in the warehouse and various financial constraints that were forcing him to look for a more economical and efficient solution. -
Jay Bharat Spices Pvt. Ltd.: A Spicy Quandary, Student Spreadsheet
Spreadsheet Supplement for Case W25298 -
Quibi: The Failure of Hollywood's "Next Big Thing"
Following its official launch on April 6, 2020, Quibi, a mobile-only short-form video streaming platform that had raised over $1.7 billion had failed to gain the traction it was expecting and fell well short of its first-year growth projections. The company ultimately announced that it was shutting down after just six months in October 2020. Exactly where had Quibi gone wrong, and what lessons could investors learn from their failed investment in the company? -
Is it Fair to Let Them Go? Using Performance Appraisal Data to Decide on Staff Cuts
Rodey Wing, a partner at global management consulting firm Kearney, had to decide what to recommend to a struggling retailer client with over 200,000 employees. With the client's optometry division suffering from an excess of employees partly due to a pandemic downturn, Wing had initially planned to cut 1,500 employees from the division---laying off those with the lowest performance review ratings. However, a disproportionate impact assessment of the plan showed that employees from protected classes would make up a much larger share of terminated employees than expected. Wing had to determine how this information should impact his recommendations to the important client. -
BeefLedger: Cross-Border Beef Supply Chain Based on Blockchain Technology
Food safety and fraud were long-standing issues in China. For some imported products, such as Australian beef steak, food fraud could be a massive issue: consumers could purchase the wrong or even harmful products, and legitimate brands subsequently lost sales and reputation. BeefLedger Ltd. (BeefLedger) was an Australian blockchain start-up company that aimed to solve these issues by using blockchain technology to supply authentic beef products to customers in China and elsewhere. The technology also significantly improved transparency in the beef supply chain. Since 2017, BeefLedger had gained important experience in this area and achieved a certain level of success. The concept of blockchain, proposed in late 2008 and used successfully used in finance since then, was still in its infancy in other areas. The next promising field to adopt blockchain was supply chain management, where the technology had the potential to revolutionize the supply chain with its unique functions, including immutability and decentralization. However, many challenges emerged for BeefLedger during blockchain implementation-especially in early 2020, because of the COVID-19 pandemic and Australia-China tensions. BeefLedger now had to determine how to handle these recent challenges. -
Rivian Charging Ahead
In fall 2021, start-up Rivian was poised to begin delivery of its first electrical vehicles (EVs) to external customers after several delays. The company had over 70,000 preorders for its R1T (pickup truck) and R1S (SUV) models. On November 11, the company went public, raising approximately $12 billion in the largest US IPO since Facebook. Early investors were bullish on Rivian. The company's success would depend in part on the availability of charging stations. Rivian had plans to establish two networks of chargers in the United States and Canada. Rivian Adventure Network would be a network of Level 3 DC fast chargers, while Rivian Waypoints would be Level 2 AC chargers. The company had announced that it wanted to establish these networks in locations near national parks and locales it expected its customers to visit. Rivian was targeting consumers who were outdoor enthusiasts. The case describes EV charging options and challenges students to determine where Rivian should locate its charging stations, how many were needed, and what types were best to serve consumers traveling the 469-mile Blue Ridge Parkway. Ultimately, this is not simply a problem seeking an "optimized solution" given predicted demand, but one that will fundamentally shape emerging consumer behavior. This case is taught in Operations Management, a required first-year course at Darden School of Business. It can also be used in a second-year elective course that explores the major issues and managerial concepts relating to strategic management of the operations function in today's global economy. The set includes a series of short video interviews with the case protagonist. -
PittaRosso: Artificial Intelligence-Driven Pricing and Promotion
PittaRosso, a traditional Italian shoe retailer, is implementing an AI system to provide pricing and promotion recommendations. The system allows them to implement changes that would affect both the top of funnel and bottom of funnel activities for the company: once the objective function was defined, they could plan the season and choose which products to markdown and by how much, which additional promotions to apply and when, and how much to spend on online marketing. But what was the right objective function? Should they focus on revenues, margins, or the sell through of older inventory? Each department had different views. The case supplement spreadsheet contains a simplified version of the AI system to allow students to examine the effect of different strategic and tactical decisions and make data informed choices and arguments, in addition to the information provided in the case.