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After several years of effort, Dalian Zhongding Information Co. (DZI) had become the leading prepaid card distributor in Liaoning Province. When government regulations and the rise of online third-party payment options sent the prepaid card business into decline, DZI transformed itself into an online intermediary by building a regional e-commerce platform offering fast home delivery, mainly of supermarket products. Despite its marketing efforts, the company faced fierce competition, difficulty attracting users, and a low secondary purchase rate. In 2015, the company needed to adjust its development strategy. What practices should this regional e-commerce platform adopt to obtain traffic, increase purchasing conversion rate, and increase visitor retention?

Netflix, Inc. (Netflix), the world’s leading provider of subscription video on demand (SVoD), launched its Indian platform on January 6, 2016. Due to its huge population, India represented a lucrative market. Furthermore, the younger generation in India had dynamic consumption patterns that were comparable to those of Western consumers, giving Netflix another reason to invest in the country. However, six months after Netflix’s launch in India, as the initial buzz surrounding the entry subsided, important questions loomed: Would the company be able to meet the diverse needs of Indian consumers? Was the Indian market and consumer seasoned enough to adopt a more sophisticated model of SVoD? How could Netflix get a stronghold in a market that was still grappling with basic infrastructure problems and low Internet penetration, as well as censorship issues? Even though Netflix was a formidable player globally, it was not the first mover in the Indian market and many of its competitors were already doing extremely well. How could Netflix compete and move forward in India?

Mary Kay (China) Cosmetics Co., Ltd. (Mary Kay China) was one of China’s leading direct-enterprises in skincare products and cosmetics. In September 2015, the president of Mary Kay China was considering how best to continue to grow the company in the face of increasing e-commerce. The parent company and all its subsidiaries ascribed to the mission of enriching women’s lives; its guiding principles emphasized relationships and connections between people. Mary Kay China’s development was a testament to its success as a people-oriented culture that contributed to the environment and society. However, the Internet era had raised concerns about whether the connections among the company's people were strong enough to succeed against competitors who maintained a broad network developed through the Internet. Should Mary Kay China expand into e-commerce, or would relying on the Internet undermine the principles and values that grounded the company?

Joneja Bright Steels Private Limited (JBS) was one of many major players in India’s bright steel industry, serving almost every automobile manufacturer in Northern India. After the business launched in 2002, the automobile market expanded, leading JBS to an early strong position. But in fiscal year 2014/15, the company experienced working capital management issues. JBS considered using credit policies as a way of improving profitability—shifting from a strict credit policy of net 45 days to a flexible credit policy with a 2 per cent discount for accounts paid within 10 days (2/10 net 45 days). Should JBS implement a cash discount for fiscal year 2016/17? The discount could potentially increase the burden caused by already declining sales, but could also improve the company’s cash position.

Founded in 1997, Allegiant Airlines (Allegiant) was one of the most profitable ultra-low-cost airlines in the United States. Allegiant maintained high profit margins by targeting the uncaptured market segment for leisure travel and using a unique way of managing cost and revenue drivers. Allegiant avoided direct competition with traditional airlines and captured the new market of price-sensitive leisure travelers. After employing extreme cost-reduction and revenue-enhancement strategies, Allegiant achieved one of the highest profit margins in the industry. In 2015, despite inexpensive airfares, Allegiant received low scores on customer satisfaction. The airline also faced labour and safety issues by the end of 2015, but it took several steps to resolve the issues in 2016. With increasing competition, rising costs, and low customer satisfaction, maintaining long-term profitability remained a challenge for Allegiant. How could the airline sustain its position in the market?

In 2014, Alibaba—the Chinese e-commerce giant who, in September 2014, completed the largest initial public offering (IPO) in New York Stock Exchange (NYSE) history—was preparing itself for an additional round of capital fundraising. This time, Alibaba focused its efforts on a new, large bond issue. Its chief executive officer would lead Alibaba’s finance team in meetings with investors in Hong Kong, Singapore, and London to gather information about this pending bond issue. <br><br>Although Alibaba was listed on the NYSE, an overwhelming majority of its revenues originated in China. Most U.S. investors had not heard of Alibaba until just a few months prior to its IPO in September 2014. Also, being a high-tech company, Alibaba was subject to the potential for large swings in valuations typical for the industry. Fluid valuations and matters related to country risk premia meant pricing the bond issue was going to be a challenge. How would Alibaba estimate the bonds’ pricing? Further, how should the firm determine the location and timing of the new bond issue?

In July 2014, WH Group faced the issue of attempting to launch an initial public offering for the second time, after having previously failed to list its shares on the Hong Kong Stock Exchange. WH Group originated from a merger between two meat-processing companies: China’s Shuanghui International—a global leader in animal protein and the world’s largest pork producer—and Smithfield Foods from the United States. Both Shuanghui and Smithfield Foods commanded top market shares of pork consumption in their respective countries; Shuanghui controlled 2 per cent in China and Smithfield Foods captured 26 per cent in the United States. With many challenges ahead, WH Group had some decisions to make about the company’s future. Should the company try again to launch an initial public offering? Or should the company remain private?

In late 2015, South African telecommunications giant MTN was fined US$5.2 billion by the Nigerian authorities for a mass of improperly registered subscribers—the largest fine of its kind ever imposed in the industry anywhere in the world. MTN was an emerging-market multinational corporation with a track record of successfully operating in some of the toughest, riskiest emerging markets. Thus, it was surprising that MTN had been unable to avoid a fine of this magnitude. Three factors had preceded the fine and changed the business environment in Nigeria leading up to 2015: the first was the war against the Boko Haram movement in Nigeria, which led security forces to demand the registration of prepaid phone cards; the second was the economic crisis caused by the impact of falling oil prices; and the third factor was a change in government. In light of these political risks and government regulations, how could MTN recover and move forward from this difficult situation?

In 2012, an MBA intern at Sifton Properties Ltd. had to decide on a recommendation to top management about the installation of a renewable energy installation for the company's new community development project in London, Ontario. The intern had to consider numerous internal and external factors in his decision-making process. Three emerging technologies were specifically relevant for renewable energy systems: aquifer thermal energy storage, sewer heat recovery, or anaerobic digestion and cogeneration. The intern needed to consider the social, environmental, and financial impact of each energy generation system and the preferences of varied stakeholder groups.

Jiemo.net (Jiemo), an Internet-based study-abroad consultant agency headquartered in Dalian, China, began in 2010 by providing application support to customers who wished to apply to study abroad. In 2014, the company discovered that profit existed in providing services to students once they had been accepted to study abroad. Jiemo changed its traditional pricing model, used social media marketing, and collaborated with other agencies to establish an ecosystem for these students. The result was that Jiemo acquired customers by providing free Internet-based application support (“front end” services), and reaped profits by providing services that those customers needed once they were studying abroad (“back end” services). However, as Jiemo grew, the designed profit model was not supporting growth. Jiemo had to modify the model. Should it improve the back end services to reduce costs and gain more profit from existing customers, or explore the needs of potential customers and add new services?

In 2016, Chinese telecommunications equipment firm Huawei Technologies Co. Ltd. (Huawei) aspired to be the world’s top smartphone manufacturer. The company had identified German camera company Leica Camera AG (Leica) as a long-term partner to reinvent Huawei’s smartphone photography to beat an influx of domestic rivals and the market leaders, Apple and Samsung. The flagship dual camera smartphone that was co-engineered by Huawei and Leica, the P9, contained a camera module that was actually made by a Chinese manufacturer, Sunny Optical Technology Co., under Leica’s authorization. As a result, Huawei’s motives for the partnership with Leica were criticized as a quick fix to beat Apple in the dual camera market and repair negative publicity the company had suffered earlier. Was the long-term alliance really the best solution for both Huawei and Leica? Was it the right alliance in an emerging market?

In the winter of 2012, the New Belgium Brewing Company (NBB) in Fort Collins, Colorado, was considering becoming a certified B Corporation (B Corp). Dedication and willingness to share with employees had always been a part of NBB, whose values also extended to consideration of the natural environment and philanthropy. NBB had grown tremendously over the years, partly thanks to its focus on the triple bottom line. Already the third-largest craft brewery in the United States, NBB was now considering opening a second brewery. Perhaps surprisingly, this economic growth was accompanied by a reduction in the company’s carbon footprint, and a greater impact on industry and society through philanthropy and lobbying for stricter environmental requirements. The board of directors had asked the assistant director of sustainability to make a recommendation regarding B Corp certification. Should she recommend certification, she would also need to convince the employees of its value; at that time, employees owned part of NBB, and they would soon own 100 per cent.

In 2014, the owner of Shiva Tourist Dhaba, a highway restaurant specializing in authentic Indian cuisine, faced a pressing decision. The business had been successful since opening in 1995, but it now faced intense competition. The owner was working with a marketing research team in pursuit of two objectives: to gain insight into customer loyalty and to decide on his restaurant’s positioning strategy. After conducting a survey of restaurant customers, the marketing research team needed to determine the tool that would best analyze the data to help resolve the issues facing the restaurant owner.

In February 2016, the president of the Union Pearson Express was being pressured to lower the fare price. The rail link between Union Station in downtown Toronto and the Toronto Pearson International Airport had only been running for eight months, but ridership was well below targets. On average, the train ran at only 10 per cent of capacity, and current revenue only covered 35 per cent of operating costs. The president and her team had set the one-way fare price at CA$27.50 to reflect the high-value positioning of the train. However, this price had received a great deal of criticism. The president had attempted to combat the criticism both in the press and with marketing actions, blaming entrenched consumer behaviours regarding travel. She also offered discounts and promotions to boost ridership, which ultimately failed. Now she had to decide whether to lower fares and how to market the Union Pearson Express.

Instructor Spreadsheet for 8B17A006.

In early December 2016, the owner of the Asian Grill restaurant in Henderson, Nevada, noticed that the restaurant had busy nights where customers left due to long wait times, yet there were empty seats due to small groups occupying large tables. She had a proposed new table layout before her and had to evaluate whether this would allow the restaurant to seat more customers on her busiest nights (Thursday to Saturday), or whether a different table layout would be even better.

In 2014, the chief executive officer (CEO) of Calvert Investments (Calvert) found herself at a crossroads. Under her stewardship, Calvert had become one of the world’s leading investment management firms, specialized in using sustainability as a platform to create value for investors. After having been recruited to the position from Wall Street, the CEO had enthusiastically embraced and encouraged Calvert’s unique positioning for 17 years. The idea of environmental, social, and governance sustainability had not only defined Calvert’s niche in investments, but had come to describe the CEO’s personal leadership style and shaped how she ran the company. However, with many apparent challenges to the environmental, social, and governance community and the broader investor community, the CEO wondered if the old way of doing sustainable and socially responsible investing was sufficient to support the changes that she felt were needed.

In 2015, Corticeira Amorim, S.G.P.S., S.A. (Amorim), the world’s largest cork manufacturer, was facing multiple strategic dilemmas. After enjoying a near-monopoly in the wine stopper market for over 300 years, cork’s reputation had been damaged in the 20th century by concerns over “cork taint,” and the cork industry had been challenged by the resulting disruptive technologies of screw caps and synthetic corks. Amorim needed to rethink its core assumptions, including product design and supply chain strategy. The company had taken a new direction in the previous 15 years, and appeared to have regained a secure niche for the foreseeable future. The family-owned business was now emerging from its comeback and reviewing various strategic options to secure a sustainable future. Should Amorim rely more or less heavily on its wine stopper business in the future? Which form of competition should Amorim confront most directly? Should the company compete primarily based on cost or value?

In 2016, the community engagement manager at Biblio Credit Union, a financial institution in Ontario, Canada, was concerned about rising social inequality. The company was respected in the community for its high business ethics and careful attention to corporate social responsibility. Although most of the company’s employees were paid well, some employees received little more than the minimum wage. The community engagement manager wondered how to reduce that inequality. If the company were to give a raise to the lowest paid employees, all other employees would likely also expect a pay increase. Therefore, to bring all employees to what was considered to be a living wage, the company would need to adjust its pay scale. But would the credit union’s board of directors support a sudden change in expenses? Would the increased expenses be offset by a corresponding increase in revenues? Would new customers pay more for the services of a living wage employer? The company needed to weigh the implementation of a living wage against the possibility of declining revenues, which could place the company in serious jeopardy.

CompuSoluciones, based in Guadalajara, Mexico, was a value-added distributor of information technology hardware, software, and services that grew from its origins as a reseller for Hewlett-Packard to become the second-largest distributor in Mexico. The company was best described as a collection of team-based businesses. It had 18 independent business units—each of which managed its own supply chain and produced its own profit-and-loss statements—and over 415 employees spread out over three offices. It was also governed by multiple consultative and representative boards. The company relied on the advice, insights, and experiences of these key advisory groups to improve the quality of its decision making and inform strategic decisions. At the same time, it had a policy to achieve consensus on major strategic decisions. In January 2017, the chairman of CompuSoluciones was reviewing his company’s corporate governance policies and practices. Given the independent nature of the individual business units, he wondered whether a consensus-based model of management was still the best way to lead the firm forward and whether the current corporate governance structure was optimal for managing this particular business.