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This case explores the common cash-flow challenges that start-up businesses face as they straddle the conflicting objectives of business growth and cash preservation. In August 2022, Alex French, the CEO and cofounder of Bizzy Coffee (Bizzy), an emerging business in the rapidly growing cold-brew coffee market, prepares for a meeting with potential investors. His preparation requires a diagnosis of why Bizzy is burning so much cash, a proposal for getting the business to positive cash flow, and an assessment of the amount of financing required to get there. Students complete these tasks and build an understanding of cash flow and its importance to business stakeholders. It is designed for use in the core finance curriculum at Darden as part of a module covering financial modeling and analysis.

Spreadsheet Supplement for Case UV8754

In late 2022, E-Mart, South Korea's leading supermarket chain, had pulled out of major Asian markets such as China and Vietnam after experiencing poor performance, and the company planned to expand into the US market. In the Asian markets, E-Mart relied on a direct entry mode, but in the US it changed its mode of entry by acquiring local companies and planning to open new grocery brand stores. Although the US market has substantial growth opportunities due to its large size, it is not easy to succeed there because of limited profit margins and fierce competition. Could E-Mart establish a foothold in the US supermarket and grocery store industry? What strategies should it develop to succeed in this new market?

In the quarter ending March 2022, Apple Inc. (Apple)'s share in the Chinese smartphone market fell to 17.9 per cent from 21.7 per cent in the previous quarter. Business analysts attributed the falling share to weak consumer sentiments; a lack of innovations; and major supply-side headwinds, including frequent COVID-related lockdowns in China, power shortages, Russia's invasion of Ukraine, and the trade and technology war between the United States and China. Apple needed to identify strategies to gain a leading share in the Chinese market. In the face of demand- and supply-side adversities in China, it also needed to reconsider its supply chain and manufacturing base. Should Apple keep its supply chain concentrated in China, to reap the benefits arising from the economies of scale in the production process? Or should it pursue geographic diversification for its supply chain, to protect itself from the major problems hovering on the horizon?

In recent years, there has been a major shift in the dining preferences of consumers, more so, after the current Covid-19 crisis. Considering safety and hygiene, now, consumers would rather enjoy food in the comfort of their homes as against dining out. This change has completely revolutionized the food service industry, to the extent that some restaurateurs are finding it challenging to adapt to this sudden development. At the same time, this shift has offered great opportunity for cloud kitchens. The case demonstrates the strategies that the growing businesses in the food service industry can adopt during such times, to make decisions in terms of expansion, selecting ordering channels, and managing their employees and customers.

Rather than building strategy around the people they have, organizations should develop a better understanding of the roles that will be most critical in executing the most promising strategy, and then putting top performers in those positions. The authors demonstrate how this can be accomplished using data analysis and examples from professional soccer and the retail industry.

In May 2021, Discovery, Inc. announced the acquisition of WarnerMedia from AT&T, with David Zaslav to become the Chief Executive Officer of the new consolidated media giant, which would be called Warner Bros. Discovery. Now, the company and new leadership face the simultaneous issues of immediate debt servicing concerns as well as longer-term trends leading to the decline of demand for cable television. With the consolidation, there was also organizational restructuring, which included a steep reduction in headcount as well as brutal, decisive cuts of less profitable business lines.

Sigma Ventures is a venture capital (VC) firm that invests in technology, intelligent manufacturing, healthcare, and consumer services companies in their early and growth stage. In late 2017 Li Yuan, Sigma Ventures' founder and managing partner, needed to decide whether a startup called Isolimit was worth investing in. If so, then Isolimit was to be valued. The case describes how Sigma Ventures assessed Isolimit's team, market, and technology and shows how Sigma used the venture capital method to evaluate its potential investment. Specifically, the case discusses three aspects of early-stage venture capital investments: (1) How should venture capital firms evaluate early-stage startups? (2) What is the logic of the venture capital method? (3) How should venture capital firms apply the venture capital method to determine the percentage stake they should receive in exchange for their investment?

Sigma Ventures is a venture capital (VC) firm that invests in technology, intelligent manufacturing, healthcare, and consumer services companies in their early and growth stage. In late 2017 Li Yuan, Sigma Ventures' founder and managing partner, needed to decide whether a startup called Isolimit was worth investing in. If so, then Isolimit was to be valued. The case describes how Sigma Ventures assessed Isolimit's team, market, and technology and shows how Sigma used the venture capital method to evaluate its potential investment. Specifically, the case discusses three aspects of early-stage venture capital investments: (1) How should venture capital firms evaluate early-stage startups? (2) What is the logic of the venture capital method? (3) How should venture capital firms apply the venture capital method to determine the percentage stake they should receive in exchange for their investment?

Background Note for product #CB0261 and CB0262.

How would Cummins Inc., a global leader in internal combustion engines, map out a strategy for the great energy transformation ahead-one that would grow the company while addressing the twin challenges of climate change and the world's insatiable need for power? Cummins Inc., founded in 1919, had become a leading designer, manufacturer, and distributor of internal combustion engines, power generation systems, and related parts and technologies. The case study discusses the strategic thinking behind Cummins' goal of Destination Zero, the company's zero-emissions target for 2050, and the interim steps, partnerships, innovation, and customer education needed to reach that goal. Cummins technology was integral to light-duty trucks, medium-duty trucks, heavy-duty trucks and buses; the company's engines were widely used in industries such as construction, mining, marine, and oil & gas. Major customers included original equipment manufacturers such as Daimler Benz, Navistar, Volvo, Paccar, and Tata. Evolving the Cummins product portfolio would require a series of interim goals, and juggling continual improvements to core engine products while building out zero-emissions solutions.

This case explores the opportunities and challenges associated with expanding the operations of a complex entrepreneurial business model. It highlights how cultural aspects of different geographies impact a startup's operational and economic models. The case also debates the considerations of expanding operations internationally versus penetrating new customer segments within a company's existing market. Lastly, the case presents the tensions that may exist between investors and entrepreneurs in deciding the desired course of action.

Jill Herzog founded Caring@Work Support Services (Caring@Work) in 2014 with a desire to give back to the community. After running a successful plastics recycling business for many years and building goodwill in both her community and in the recycling industry, Herzog saw an opportunity to start a second business dedicated to social impact, one that focused on providing both paid work and support services for clients with intellectual and developmental disabilities. Herzog expected that her team members would be highly engaged in their work, which involved helping people with disabilities live healthier and happier lives. However, she was shocked to find out that the opposite was true. Herzog noted several instances of Caring@Work employees lacking motivation and spreading gossip. Even more problematic was the fact that the service provided to the clients was being compromised, and employees frequently failed to complete the required note taking for Medicaid reimbursements. Herzog wondered if her goal of giving back to the community while earning a modest profit would ever be realized. Were the problems due to her leadership style? Were there larger, more systemic problems precipitating the counterproductive workplace behaviour? Clearly, something had to change. After eight years in business, Caring@Work had yet to earn a profit. Herzog knew that her business could not grow to the point of being financially sustainable without a committed workforce that shared her passion for the company's mission. When one of Caring@Work's top performers, Sylvia Ward, threatened to leave due to the toxic work environment, Herzog knew she needed to act fast. Over the weekend, she drafted a speech to deliver at the next staff meeting on Monday, but she wondered if this was the right approach. Would the speech alienate her workforce even further? Or might it urge them to take their jobs more seriously?

Dabba Chetty Shop was a small unique retail shop in Chennai, India that had been in operation for four generations. For more than a century, the shop had sold natural and processed materials to customers who used alternative medicines for well-being. The shop's strong reputation was based on the quality of the materials sold. Key factors for success included the ability to identify and reliably procure materials, having an intimate knowledge of various natural ingredients and processed goods, providing appropriate quality, and maintaining strong customer relationships. The continued success of Dabba Chetty Shop over four generations was primarily attributable to the family's emphasis on customer service and wellness, rather than on increasing profits. During the pandemic, Koonala Badrinath, the shop's current owner, used the Indian postal service to fulfill customer orders. With the growing demand for his shop's products from consumers outside the region and across the world, he was considering expanding the shop's services to customers in different locations, especially the numerous Indian diaspora consumers residing abroad.

This case examines a fictional hedge fund manager's decision about whether to maintain his fund's position in bitcoin. It provides an opportunity for students to develop an investment thesis for or against bitcoin, evaluate alternative ways to gain exposure to bitcoin, and consider bitcoin's economic function (e.g., as a currency or commodity). The case can be used in an MBA elective course on fintech, capital markets, or investments.