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YG Entertainment (YG) is the second largest entertainment company in the South Korean pop music (K-pop) industry, and has experienced rapid growth while maintaining a profit margin of over two times the average profitability of top U.S. record labels. The case examines how YG and other K-pop entertainment companies have developed a unique system to produce a competitive advantage in an industry that typically experiences high failure rates and substantial uncertainty regarding the success of artists. The, founder and chairman of YG, must decide the company's next steps for growth, and whether Japan, China, or the United States will be the most promising for YG's future success. The song Gangnam Style was created by YG artist PSY. Also see case supplement 9B16M010.

Supplement to 9B16M009.

Coal India Limited, the world’s largest coal mining company and India’s largest corporate employer, regularly produced less coal than was both achievable (i.e., it had excess capacity) and needed. As a result, it failed to meet the demand for coal from power utilities and other industries in the country. The Government of India, which had a persistent and large fiscal deficit, held the majority interest in the company. In January 2015, the government wanted to reduce its deficit and improve both the productivity of Coal India Limited and India’s coal supply. Should the government opt to disinvest from Coal India Limited or privatize the company?

On June 13, 2013, an online news portal reported on a press conference at which India’s finance minister urged Indians to refrain from buying gold. India was facing a huge economic challenge. Its account deficit had hit a record high of 6.7 per cent of its gross domestic product. This increase was attributed to rising gold imports and was a major cause of concern for the Indian finance minister and the governor of the Reserve Bank of India, India’s central bank. This crisis raised some questions that had come up before: Why was gold such an obsession in India? Why was it seen as a good investment? How could the country’s financial leaders address this situation?

Instructor spreadsheet for product 8B16N009.

Student spreadsheet for product 9B16N009.

In 2012, the executive producer of the hit radio show Q and the director of Network Radio at the Canadian Broadcasting Corporation (CBC) faced employees’ complaints against the show’s star host, Jian Ghomeshi. The employees alleged that Ghomeshi’s treatment of employees was problematic and contrary to the corporation’s values and policies. A few years earlier, a female employee had also alleged mistreatment by Ghomeshi but no disciplinary action had been taken. The two managers faced a difficult decision. Ghomeshi had strong support among CBC executives, including from their boss, and his popular radio program had achieved high ratings among the younger audience that the organization needed to appeal to.

In November 2010, the senior director of Inpatient Services at Guelph General Hospital, which was situated in a small city in Southwestern Ontario, Canada, was facing questions about the implementation of the Process Improvement Program, part of a province-wide pilot project. Beginning in October 2009, the program had been tested at the hospital to deal with a deteriorating organizational culture and poor performance reviews. Guelph General Hospital was plagued with inefficiencies: patients leaving untreated, low staff morale, a defensive (blame) culture, and a lack of interdepartmental collaboration. The new program was based on the “lean” methodology developed by Japanese automotive manufacturers, but its use in the hospital had raised questions about whether it was suitable in a healthcare setting. Some employees did not support it and were threatening to leave. Should the hospital continue to implement the lean strategy? How should it move forward?

Jaipur Rugs Company Private Limited, a family-owned business, was founded with the twin goals of leading a thriving export business and helping artisan weavers to live with dignity and keep their heritage alive. In 2015, this company was the largest exporter of hand-knotted carpets from India and faced two dilemmas: Should the company focus exclusively on hand-knotted carpets, as preferred by the founder and some family members, or should it focus on tufted carpets, which also provided a considerable share of the company’s total revenue and had increased the company’s sales? Also, because of the number of recent departures by non-family members from the management team, a balance was needed in terms of the family's values and those of the hired professionals that were brought into the company. Many initiatives had been introduced at the company, but would they be sufficiently helpful to achieve the company’s goals?

By July 2012, the founder of Clover Food Lab (Clover) had created a profitable business that served locally sourced, organic, vegetarian fast food. Over the course of four years, Clover had grown from one food truck parked on the Massachusetts Institute of Technology (MIT) campus in Cambridge to five food trucks and two brick-and-mortar restaurants in the metropolitan Boston area. With loyal customers advocating for the brand, the CEO knew that his company was well positioned for continued growth. He dreamed of turning Clover into a global fast-food provider, capturing enough market share to compete directly with international fast-food chains like McDonald’s. In 2014, he considered expanding his company into a new market and wondered whether Clover’s vision and operations could be duplicated.

This case is about a small American auto parts producer trying to diversify its way out of dependence on the major automakers in 2013. A promising new product is developed and the company gets a chance to license it to a Scottish manufacturer. The issue of whether to license or go it alone in international markets is central to the case. A full class sequel to this case is available, titled Cameron Auto Parts: Joint Ventures, Licensing or Exporting, 9B16M044.

In 2015, two years after signing a license agreement in the United Kingdom, Cameron Auto Parts (Cameron) now faces an opportunity to establish with another firm a joint venture in France for the European market. However, the prospect upsets the U.K. licensee who is clearly doing very well, and who even wants Cameron to consider joint venturing with him in Australia. The case ends with Cameron, run off its feet in North America, trying to decide whether to enter Europe via licensing, joint venture or direct investment. (This case is a sequel to Cameron Auto Parts: Early Internationalization, case (9B16M043).

In 2015, Puma became the market leader in sportswear sales in India, leaving Adidas, Reebok, and Nike behind for the first time since Puma entered the market. Puma’s success in India was primarily attributed to its marketing techniques, judicious expansion, and customer acquisition strategy. Indian consumers had been embracing lifestyle changes associated with increased health concerns and the popularity of fitness programs. As a result, the sportswear segment grew, presenting an opportunity for companies to maximize their return on investments. While Puma moved ahead of Adidas to become the leading sportswear brand in India, the market evolved and became competitive. Puma needed to continue innovating its marketing strategies to hold onto its leadership position. Meanwhile, domestic footwear brands were expanding their retail footprints and distribution networks beyond their regional presence in order to gain a substantial market share. Could Puma strengthen its branding and hold its market position despite continuing competition from established brands and new competition from domestic companies?

After suffering severe complications from a relatively minor surgery at a California children’s hospital in early December 2013, a young teenage girl was declared brain dead. However, to her family, the girl seemed responsive and they refused to accept the hospital’s statement that their daughter was deceased. The hospital arranged visits with social workers and other staff in an attempt to help the family understand that their daughter was dead and, after three days, informed the family of its plan to move the teen’s body to the morgue. The case quickly became a nationwide media event. The family acquired a noted lawyer to ensure the teen received the care the family thought was needed, while the hospital hired a public relations firm to become the hospital’s voice in the issue, a move that might have exacerbated the problem. With such a complex and tragic crisis that rapidly unfolded, should the hospital have a policy in the event that family members disagree with an official medical diagnosis? How could the hospital have managed the aftermath of the teen’s death and prevented a media embarrassment?

Honda Canada was coping with a communications and supply chain crisis after a triple disaster — an earthquake followed by a tsunami and a nuclear meltdown — that hit Japan in March 2011. Honda’s worldwide supply chain was characterized by a just-in-time, single-source approach, wherein the supplier for each component provided the best quality at the lowest price. The approach normally ensured economies of scale but now, in an abnormal time, Honda’s supply chain was vulnerable. In the short term, Honda Canada had to manage the chaos through effective communication with its stakeholders. In the long term, it had to ensure checks and balances in its supply chain. See supplemental case 9B16D005.

Supplement to be used with 9B16D004.

Excel spreadsheet for students.

In a 2014 documentary, the multinational technology company Apple Inc. was implicated in alleged human rights violations at Pegatron, a large Chinese supplier that assembled Apple's iPhones. The allegations followed similar, well-publicized violations in 2009 at another China-based Apple supplier. Although Apple had promised to improve its practices, doing so had clearly proven to be a difficult task. How should Apple respond to these new allegations? Should it evade the accusations and instead point to its existing efforts? Could it do more to protect workers? Should it rethink its offshoring and outsourcing strategy? Is it fair to blame Apple for the activities of its suppliers? Where does the blame fall?

At the Benedictine monastery of Admont in Austria, which had been economically active for over 940 years, the monks tended to think in centuries rather than quarters. However, the monastery’s business director needed to make a decision in a much shorter timeframe. The monastery employed approximately 600 people in its forestry, wine-growing, energy, real estate, services, and industrial businesses. Its largest subsidiary, an industrial manufacturer of wooden floorboards, was faced with severe challenges in 2015, including highly fluctuating demand and a growing pressure on margins due to low-cost competition from Asia. The business director had to decide how to proceed with the loss-making company, bearing in mind his responsibility towards the monastery and its higher purposes (such as providing pastoral care and fostering regional development through the creation of jobs).

Not long ago, it was generally accepted that nice guys and gals finish last in the cutthroat world of big business. Over the past decade, the social enterprise movement has changed the way many people view the end game of capitalism. Nevertheless, the idea that jerks make better CEOs survived the 2008 financial crisis. Since then, Ivey Business School research on leader character has demonstrated that long-term sustainable success is best gained through company executives having a balance of personality traits including compassion, humility, and empathy. In other words, putting a jerk at the helm of a company isn’t advisable even if they have excellent experience, drive, and competencies. <br><br> There is a persistent notion among entrepreneurs that the right “Startup DNA” is comprised of characteristics such as resilience and the ability to accept risk, along with arrogance and the ability to be a huge jerk. But what if billionaire jerks had reined in their inner boor when bringing ideas to market? According to Ivey Professor Ann Frost, many of the world’s successful jerks might be richer if they had played nice, or at least nicer. When venture capitalists invest in start-ups, they spend a lot of time with the management team they’re betting on. VCs also typically add founders of their new portfolio companies to their CEO networks, which tend to function better when members comfortably share ideas instead of aggressively clashing over egos. As such, some VCs have “no A-holes” policies, meaning having a bad reputation can limit one’s ability to strike a favourable deal before negotiations even begin. “The goal [of negotiations] is really finding common ground,” says Professor Frost. “And nobody wants to share ground with a jerk, so they are inclined to make them pay.” While conflict over ideas generally leads to superior outcomes, interpersonal conflict leads to the A-hole tax.