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How to Survive Climate Change and Still Run a Thriving Business: Checklists for Smart Leaders
Climate change presents clear and pressing threats to business--materials and product shortages, price volatility, legal bans or consumer backlash, and damaged transportation infrastructure, to name just a few. But there are opportunities as well. Lowitt, a consultant in the sustainability field, has developed a series of detailed checklists that will help smart managers reduce operational, regulatory, and reputational risk while finding new ways to cut costs, improve performance, enhance customer relationships, and otherwise increase competitiveness. The checklist recommendations, tested and refined through Lowitt's research into and work with firms including Coca-Cola, GE, and Owens Corning, cover four broad areas in the product life cycle: sourcing, manufacturing, distribution, and consumption. Actions range from educating and incentivizing employees to use climate change-conscious behavior to measuring and reporting key metrics to deter- mining when alternative materials, methods, sites, or contract partners may be called for. Like any such tool, the checklists don't provide a one-size-fits-all plan. Rather, they equip executives to customize their strategies according to factors such as their goods and services, risk tolerance, customer needs, and reliance on third parties throughout the value chain. -
The Limits of Scale
The value of many products and services rises or falls with the number of customers using them; the fewer fax machines in use, the less important it is to have one. These network effects influence consumer decisions and affect companies' ability to compete. Strategists have developed some well-known rules for navigating business environments with network effects. "Move first" is one, and "get big fast" is another. In a study of dozens of companies, however, the authors found that quite often the conventional wisdom was dead wrong. And when the rules failed, the reason was always the same: Companies trip up when they try to attract large volumes of customers without understanding (1) the strength of mutual attraction among various customer groups and (2) the extent of asymmetric attraction among them. Looking at examples such as TripAdvisor, Wikipedia, and the New York Times, the authors offer strategies for competing in markets with network effects. New entrants should focus on customer groups that they are uniquely positioned to serve or appeal to the most attractive customers in a market. Incumbents pursuing growth strategies in adjacent markets or new geographies should consider how similar the needs of new customers are to those of existing customers. Offering complements also allows incumbents to reach additional customer groups. -
Coaching the Toxic Leader
In his work as an executive coach, psychotherapist Kets de Vries sometimes comes across bosses with mental demons. The four kinds he encounters most frequently are pathological narcissists, who are selfish and entitled, have grandiose fantasies, and pursue power at all costs; manic-depressives, who can leave a trail of emotional blazes behind them; passive-aggressives, who shy away from confrontation but are obstructive and under-handed; and the emotionally disconnected--literal-minded people who cannot describe or even recognize their feelings. Left unchecked, these personalities can warp the interactions, plans, and systems of entire organizations. But with appropriate coaching, toxic bosses can learn to manage their conditions and become effective mentors and leaders. This article describes how to recognize each pathology and, step by step, guide people who suffer from it toward healthier and more-productive interactions. -
Europe's Solution Factories
Manufacturers in developed countries can no longer rely on lean management practices to stay profitable. They face increasing competition from plants in large emerging economies that are able to produce on a large scale at a lower cost, while still providing high quality. The way forward, the authors suggest, can be glimpsed from analyzing past winners of Europe's annual Industrial Excellence Award. Those companies have succeeded by using one or more of these strategies: (1) Leveraging data flows to integrate closely with supply chain partners. Germany's Schmitz Cargobull, for example, has become a leading trailer manufacturer by using sophisticated information technology to help customers monitor their vehicles. (2) Creating value downstream in other parts of the supply chain. One example is Markem-Imaje, a maker of industrial printers for coding products; the company adds value for customers by offering a variety of ancillary services. (3) Collaboratively designing manufacturing processes that can rapidly evolve to meet customers' needs. A prime example is ASML, which works closely with customers and suppliers to make innovations in production technology for the semiconductor industry. (4) Specializing in customized products. Focusing on small runs of custom-designed products has been an effective strategy for companies like BuS Elektronik and the Daimler Group's Smart car division. -
15 Rules for Negotiating a Job Offer
In some industries, a weak labor market has left candidates with fewer options and less leverage, and employers better positioned to dictate terms. Those who are unemployed, or whose current job seems shaky, have seen their bargaining power further reduced. But the complexity of the job market creates opportunities for people to negotiate the terms and conditions of employment. Negotiation matters most when there is a broad range of potential outcomes. There are 15 rules for negotiating a job offer. One is "don't underestimate the importance of likeability," which means managing inevitable tensions in negotiation, being persistent without being a nuisance, and understanding how other people perceive your approach. Another rule is "make it clear they can get you." Indicate that you're serious about working for a potential employer, and don't discourage them from trying to win you by suggesting you have too many better options. You should also "be prepared for tough questions," like Are we your top choice? Don't lie or try too hard to please, lest you lose your leverage. And "consider the whole deal," including the job's perks, location, opportunities for growth, and flexibility in work hours-not just the salary. These and other guidelines can help you attain the terms and conditions of employment you want. -
Can an "Ethical" Bank Support Guns and Fracking? (HBR Case Study and Commentary)
As the founder of a new "ethical" bank focused on environmental sustainability, Jay McGuane realizes that he has to come up with clear rules about how the board should make decisions on "values" grounds--and quickly. Already, the bank is facing loan approvals involving two hot-button issues. Without clear guidelines, the bank's directors may fall into bitter squabbling, which could lead to resignations, negative media attention, and a flight of investors. Expert commentary comes from Ken LaRoe, chairman and CEO of First Green Bank, and John Replogle, president and CEO of Seventh Generation. -
Life's Work: Zandra Rhodes
The 73-year-old Zandra Rhodes became famous in the 1970s, had to close up shop in the 1990s, and is now enjoying a renaissance. In this interview with senior editor Alison Beard, she talks about working while she travels, how she faces setbacks, and her opinion of the fashion industry today. -
Can an "Ethical" Bank Support Guns and Fracking? (HBR Case Study)
As the founder of a new "ethical" bank focused on environmental sustainability, Jay McGuane realizes that he has to come up with clear rules about how the board should make decisions on "values" grounds--and quickly. Already, the bank is facing loan approvals involving two hot-button issues. Without clear guidelines, the bank's directors may fall into bitter squabbling, which could lead to resignations, negative media attention, and a flight of investors. Expert commentary comes from Ken LaRoe, chairman and CEO of First Green Bank, and John Replogle, president and CEO of Seventh Generation. -
Can an "Ethical" Bank Support Guns and Fracking? (Commentary for HBR Case Study)
As the founder of a new "ethical" bank focused on environmental sustainability, Jay McGuane realizes that he has to come up with clear rules about how the board should make decisions on "values" grounds--and quickly. Already, the bank is facing loan approvals involving two hot-button issues. Without clear guidelines, the bank's directors may fall into bitter squabbling, which could lead to resignations, negative media attention, and a flight of investors. Expert commentary comes from Ken LaRoe, chairman and CEO of First Green Bank, and John Replogle, president and CEO of Seventh Generation. -
Cerenity Sanitizer: Marketing Research for New Product Launch (A)
The case deals with the application of marketing research for launching a new product in the market place. The company was planning to enter the Fast Moving Consumer Goods (FMCG) market in India with its new product Cerenity. Cerenity was a toilet seat sanitizer for women who frequently use public restrooms. The case describes the exploratory study conducted by the research team. The team used different qualitative marketing research tools such as focus groups, in-depth Interviews and participant observations. -
Cerenity Sanitizer: Marketing Research for New Product Launch (B)
The case deals with marketing research study undertaken to introduce a new product in the market. The company was planning to introduce Cerenity, a toilet seat sanitizer for women who frequently use shared restrooms. The case discusses the conclusive study undertaken involving quantitative marketing research. The research team carried out quantitative survey and collected the data. It applied various quantitative research methods such as factor analysis, multiple regression, cluster analysis and conjoint analysis for analysis the collected and drawing managerial inferences. -
Azza Fahmy Jewellery: International Expansion
This is the third case in the Azza Fahmy series. This case and the three others in this series (9B13M097, 9B13M098 and 9B14M023) can be used together or on a standalone basis.This case series features a female Egyptian entrepreneur who faces the challenge of developing her self-titled jewellery brand. This case describes some of the first steps of doing business internationally in the West. Lacking international experience, the entrepreneur seeks to minimize risk by entering into a strategic alliance with renowned fashion designers. They systematically help her to introduce her brand to the international market, albeit on a limited scale. After the initial success, she begins to plan a more structured approach towards internationalization. She decides to commission a thorough study of France, Spain and Turkey, as they are historically familiar with Arabic jewellery designs. Accordingly, the case identifies specific information about the three countries so that students can compare them in order to reach the best decision about structured international expansion. -
Ramesh and Gargi (A)
This case describes the deterioration of the relationship between three people in an organization. Ramesh, Learning and Development Head, Chrysalis Pharmaceuticals, undergoes a couple of bitter experiences at his office. He tries to speak to his boss, Kamla, regarding the matter, in vain. He feels that he is being eased out of the company and being replaced by a new, young, and very competent woman employee, Gargi. Part A of the case ends on a confused and unhappy note. It is unclear whether Ramesh is going to leave the organization or stay on. -
Ramesh and Gargi (B)
This is a follow up of 'Ramesh and Gargi (A)'. Part A describes the deterioration of the relationship between three people in an organization. Ramesh, Learning and Development Head, Chrysalis Pharmaceuticals, feels that he is being eased out of the company and being replaced by a new, young, and very competent woman employee, Gargi. In Part A of the case it is unclear whether Ramesh is going to leave the organization or stay on. . Part B of the case reveals that there were no plans to replace him. The losses for the individual and the organization were unnecessary. -
Unilever Vietnam: A One-Rinse Revolution Towards a Sustainable Future (A)
It is October 2007 and competition in the fast-moving consumer goods space is heating up in the developing markets. Vietnam is no exception and Unilever believes it can seize greater market opportunity through innovative and environmentally sustainable product offerings. Nguyen Van Linh, head of marketing at Unilever Vietnam is concerned. Back in April, Unilever launched Comfort One Rinse, a fabric conditioner designed to reduce water use for rinsing hand-washed laundry by 66%. However, consumers are sceptical of the product's efficacy and do not believe that this new fabric conditioner will work as advertised. To complicate matters, P&G just launched their own nearly identical product, Downy One Rinse. In part A of this case series, Nguyen addressed the new product's credibility issue while contending with P&G's challenger product. Will she secure Comfort's market leadership and reach 50% market penetration before Downy? -
Unilever Vietnam: A One-Rinse Revolution Towards a Sustainable Future (B)
Supplement to case SMU117. Part B of this case series takes place in December 2008, a little more than a year following the events of part A. Although significant progress has been made since then, the Comfort One Rinse range has not yet reached 50% market penetration ... though neither has Downy. The biggest obstacle is rural activation. What more can Nguyen do to push into the rural market? -
Bloomberg LP - More Than the Box?
In late 2013, Bloomberg LP, the financial information powerhouse, was challenged by a competing messaging service owned by a consortium of banks, many of whom were Bloomberg's customers. This development came when growth was slowing and news was emerging that Bloomberg's business practices may have compromised the privacy of its customers. Did these events serve to open fissures in the company's ability to maintain industry dominance? This case asks students to consider Bloomberg's business model and the industry's competitive landscape to assess the company's market position. -
Bayer in India: Intellectual Property Expropriation?
Bayer Group needed to reassess its strategies regarding intellectual property, as well as its emphasis on research and development. The Indian government had ruled against Bayer by granting a compulsory licence to a local generic drug manufacturer that allowed them to distribute a copy of Bayer's blockbuster cancer drug at a fraction of the original price. This ruling demonstrated that pharmaceutical innovation could not be effectively protected by conventional intellectual property rights in emerging markets. As a result, the core of the pharmaceutical industry's business model was called into question: If ideas and inventions could not be protected, was the there any incentive for firms to innovate? Would this victory for generic drug manufacturers trigger similar rulings elsewhere? Would the prevailing patent-centric IP strategies need to be adapted to emerging markets? Or would innovator companies finally have to withdraw from markets with weak IP protection? -
Managing Change at Axis Bank (A)
Axis Bank is India's third largest private sector bank. In April 2009, Shikha Sharma, an outsider, was appointed as its CEO. She took over from a person who had overseen ten years of rapid growth at the bank. The selection of an outsider as the new CEO surprised many inside and outside the bank. Sharma changed the bank's hierarchical culture, strengthened the core team by appointing new talent where needed, sought to build its core processes and infrastructure, and filled several gaps in its business portfolio. Despite these changes, the stock market continues to undervalue Axis Bank compared with its chief rivals. In light of this, Axis Bank needs to figure out what more it needs to do to ensure that the market values the franchise correctly. -
Performance and Value Analysis
This note introduces the Performance and Value Analysis (PVA) framework, an integrated framework to analyze strategic performance (i.e., performance corrected for temporary and random effects). This framework (quantitatively) decomposes a firm's performance into 3 consistent parts - common performance, value creation advantage, and bargaining advantage - and then provides frameworks to analyze each.