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Generative AI: Reimagining Business Beyond ChatGPT
In November 2022, OpenAI launched the artificial intelligence (AI) chatbot ChatGPT on the web. Demonstrating the ability to understand human language and generate human-like, high-quality dialogues, answers, essays, jokes, and even poetry, ChatGPT attracted 100 million users within two months—setting the record of the fastest-growing consumer app in history. This case introduces ChatGPT and generative AI, elaborates on ChatGPT’s underlying large language models, examines the drivers of the technology’s rapid adoption, and investigates potential use cases, risks, and societal impacts. Finally, through an optional design exercise, the case leads the students to explore how the technology can shape the future of business and society. -
Designing Global Corporate DEI Initiatives in Wake of US Decision on Affirmative Action
In June 2023, the Supreme Court of the United States imposed strict limitations on the use of race in college admissions decisions. Given the outsized nature of US influence on both global perceptions and corporate practice, it is essential to consider how the Students for Fair Admissions (SFFA) decision is likely to affect corporate diversity, equity, and inclusion (DEI) initiatives around the world. In this article, the authors discuss how an incorrect understanding of the SFFA decision could negatively impact global perceptions of DEI and provide guidance for how to minimize these impacts. Put simply, the Supreme Court decision does not substantially change US corporate DEI methodology. The SFFA opinion is consistent with the “anti-discrimination” approach to advancing racial equality that has long been a feature of US law. Formal US “affirmative action” programs are strictly limited to circumstances where the employer is adopting targeted remedies to correct its own specifically identified discriminatory practices. Policies such as “employment equity” in Canada, “positive action” in Europe, “special measures” in Australia, or “affirmative action” in Brazil require, encourage, or tolerate to varying degrees social identity-based quotas, preferences, and exclusive recruiting measures of the type prohibited in the United States. Finally, understanding the anti-subordination approach—rejected by the Supreme Court majority but embraced by many national laws—allows for a recommitment to “do equity” using explicitly affirmative actions, where they are permitted, and an equity-based approach to all DEI initiatives. -
A. P. Moller-Maersk: Enabling Strategic Business Transformation
A.P. Moller-Maersk (MAERSK), an integrated container logistics company based in Copenhagen, Denmark, has been on a decade long strategic transformation journey that was accelerated by the COVID-19 pandemic. MAERSK’s ambitious strategic business transformation converted the organization from an unwieldy family-owned conglomerate to an integrated container and logistics company. This massive shift required new organizational capabilities, new leadership, and most importantly, a significant change in company culture. The transformation helped make MAERSK successful both from a business perspective (e.g., digital transformation, mergers, acquisitions) and from a culture transformation perspective. The company took appropriate steps to break away from a traditional culture without jeopardizing its core values. From a change management perspective, MAERSK’s 9,000 people managers evolved from “a victim mindset” within “a cycle of despair” to a “growth mindset” within “a cycle of hope.” However, the company faced several key questions about its future: “Why did it implement strategic change in the first place? What are the benefits of strategic transformation? Was the company’s transformation successful? What comes next? What challenges will it face in its consistent drive to be better? -
Worn Again Technologies: Replicating a Circular Model
In June 2022, the chief executive officer (CEO) of Worn Again Technologies (Worn Again), a polymer recycling technology company based in London, United Kingdom, was examining the way forward with a new technology that the company had developed and fine-tuned. The technology had been tested successfully at the company’s demonstration plant in Switzerland and was capable of processing fifty thousand tons of material per year. The CEO now needed to find new markets where the technology could be set up and scaled for commercialization. -
Stars and Rain: An Autism Rehabilitation Institute
<p align="justify">The Beijing Stars and Rain Education Institute for Autism (Stars and Rain) was established in 1993 as the first private non-profit organization to provide educational services for children with autism in China. As a social enterprise, Stars and Rain worked to connect with various partners, raise funds through multiple channels, and co-operate with social welfare organizations. In addition to providing better autism rehabilitation services, it was also dedicated to facilitating family intervention and pre-employment training for adolescents with autism through its professional service and social influence. Since 2020, the spread of the COVID-19 pandemic had led to a continued downturn in the global economy, which greatly affected Stars and Rain’s operations and funding. How could the organization obtain a more stable source of funding, achieve sustained viability, and execute on its mission, vision, and strategic priorities? -
Viking River Cruises Inc.: Cruising to New Markets
Led by iconoclastic founder and chief executive officer Torstein Hagen, Viking River Cruises, Inc. (Viking) had revolutionized river cruising and established a leading market share in that segment of the cruise travel industry. In 2022, the firm chose to enter the fast-growing expedition segment of the industry with two newly constructed ships. It faced a critical strategic question: could Viking’s proven formula in river and ocean cruising convey a competitive advantage in the expedition segment as well? Viking had to decide how to position itself in this segment and whether to scale up quickly in advance of projected demand growth. -
Autosalon Klokočka: Seeking Directions for Growth
Autosalon Klokočka Holding s.r.o. (Autosalon Klokočka), a Czech Republic-based car dealership, needed to change its business ways. A family-owned car dealership, the company was founded in Prague in 1988 by Jan Klokočka. In the last thirty years, the company had grown into one of the largest authorized car dealers in the Czech Republic by providing a comprehensive range of services to car owners. But the automobile industry had been among the most severely affected by the COVID-19 pandemic. As automotive companies braced for a revival, they had to be prepared to undergo significant modifications to alter how they operated and generated value for consumers. Despite its continuous expansion over thirty years, Autosalon Klokočka had been experiencing substantial slowdown and financial losses. In 2020, the company recorded a significantly lower revenue than in the previous years. By early 2022, it was still unclear how long the aftermath of the COVID-19 pandemic would last and how changes in customer behaviour and capabilities, supply chains, channels, original equipment manufacturer strategic choices, and other crucial factors would affect Autosalon Klokočka. As the company found its financial position vulnerable, Jan Klokočka needed to determine how to mitigate negative consequences and create growth opportunities. How could the firm adapt its existing business model to improve profits in the next three to five years? -
PLT Consulting: Navigating Inclusion as a Linguistic Minority
In 2021, Robert, a highly qualified immigrant from the United Kingdom, had recently joined PLT Consulting (PLT), a multinational management consulting company, as a junior consultant in the Tallinn, Estonia, office. This professional services firm had a strong international brand. However, Robert soon realized that the organization catered both internally and externally to more local demands. In particular, his lack of local language proficiency made the organization a challenging work environment for him, both professionally and socially. Robert raised the issue with his boss, who invited him to a meeting with representatives from PLT’s human resources department and his work team. What concrete steps could they suggest that would help resolve the situation? -
A Study in Grey: Lisa LaFlamme’s Dismissal from CTV News
Lisa LaFlamme was the trusted face of CTV National News. In 2022, she was at the height of her career. It was therefore a shock to her colleagues and viewers when, on August 15, 2022, she posted a video on Twitter to announce that she had been abruptly ousted from CTV by its parent company, Bell Media Inc. (Bell Media). Bell Media was hit with seemingly never-ending waves of negative press, including speculation that sexism and ageism had been the reasons behind LaFlamme’s ousting. The choice to get rid of LaFlamme, and the manner in which that choice was exercised, had lasting negative effects that Bell Media surely had not anticipated. Looking back, was replacing LaFlamme unequivocally the wrong choice? Or could it have been handled in a way that would have prevented such backlash? -
Insider Trading Without Cooling Off
In May 2021, the majority shareholder and chief executive officer of Ontrak Inc., a US health care services company, established two 10b5-1 trading plans to sell approximately one million shares of stock he acquired by exercising expiring warrants. Before he began the process to execute the first 10b5-1 plan, Ontrak Inc. had just lost its largest client. Three days into the process for the second 10b5-1 trading plan, the company announced that it was losing another major client. On March 1, 2023, two concurrent insider trading lawsuits were filed against the chief executive officer by the United States Securities and Exchange Commission and by the United States Department of Justice. The lawsuits contended that he sold his stock the day after filing the plans instead of waiting a set number of days, commonly known as a “cooling-off” period. However, the chief executive officer was arguing that a cooling-off period was not mandatory when he sold his stock, insisting that the “government [had] clearly overreached in this case.” He was forced to prepare a defence against two separate lawsuits filed against him. -
Zhuiyi Technology: Develop or Diversify?
<p align="justify">The case describes how Zhuiyi, a leading conversational artificial intelligence (AI) start-up in China, developed its growth strategy and made transitions in the face of product commercialization challenges. The crux lies in the low customer satisfaction rate of AI products, which could be endogenously attributed to mismatched expectations among customers and the founding team in the product development process as well as to the lack of vertical industry knowledge among executives and employees. Zhuiyi needs to make a strategic choice between: a) developing new AI products by making large and risky research-and-development investments or b) devoting more resources to product customization and expanding the market through client diversification. -
ORA: The Power of the Pivot - Student Spreadsheet
Student spreadsheet for Ivey product 9B21M034. -
Child Rights and You: From Tears to Smiles
Child Rights and You (CRY) was a non-governmental organization (NGO) started in 1979 in India. The organization experienced pan-Indian growth and later expanded to international locations. While CRY was partnering with state governments to increase its impact and reach, the global environment was shifting toward sustainable development. At the same time, the Indian government statutorily mandated companies with a specific turnover or net worth to spend 2 per cent of their profits on corporate social responsibility activities. In 2022, CRY’s chief executive officer, Puja Marwaha, had four focus areas: education, health and nutrition, child safety and protection, and children’s participation in improving their lives. She was looking at scaling up the organization and faced four major challenges: funding, regulatory compliance, employee retention, and technology infrastructure. Marwaha was in a dilemma about how to obtain more support from corporates as well as increase the impact of funding. -
Nata Supermarkets: Customer Analytics
In January 2022, the vice-president of technology for Nata Supermarkets was reviewing the company’s performance against its competitors for the 2021 calendar year. The company had been performing poorly both based on its internal metrics and against competitor growth rates. The vice-president also noticed that many competitors began revealing new data analytics initiatives in their annual reports. Many companies experienced industry-leading growth because of these changes and upgraded their guidance for the following year. To compete with an increasing number of data-driven competitors, Nata Supermarket created its internal data set to collect information on customer shopping habits and customer demographics such as age, educational background, and frequency of complaints. With the emergence of visualization tools and data analytics, the vice-president was wondering what useful insights could be drawn from its internal data set. Could this information be useful to resolve various issues such as targeting promotions and forecasting demand? -
Nata Supermarkets: Customer Analytics - Student Spreadsheet
Spreadsheet to accompany product no. W33834. -
Guell Appliances: A Refrigerator's World We're Just Living In
In July 2022, a senior data scientist for Guell Appliances was aggregating customer reviews from the company’s recent appliance launch. The previous month, the company had launched a revamped product line that required a significant amount of investment in research and development. The success of the product line was paramount because it defined the success of the company. The senior data scientist wanted to apply modern analytical techniques to thousands of product reviews to thoroughly understand the preferences of customers, based on what they were saying about their new appliances. -
Guell Appliances: A Refrigerator's World We're Just Living In - Student Spreadsheet
Spreadsheet to accompany product no. W33837. -
Force Energy: Growing the Brand
Kae Jonishi, the protagonist in the case, is a marketing analyst at Force Energy (Force). Her company has advertised with Major League Baseball (MLB) teams in the past and has gained moderate amounts of exposure from these marketing campaigns. However, Jonishi’s manager wants to increase the company’s exposure to MLB fans. One way to do so is to sponsor teams that are likely to advance into the MLB post-season, or playoffs. The top performing teams during the MLB regular season advance into the playoffs and increase their fan base, which results in greater marketing exposure for advertisers.<br><br>Jonishi has access to a data set that contains aggregate team statistics for offence and pitching performance during all MLB seasons from 1995 to 2019. With adequate knowledge of both baseball and data science, Jonishi begins by analyzing and visualizing the data. She then builds a machine learning model that can predict whether a team will make the playoffs. Using this model, Jonishi can input future offence and defence performance predictions to determine if the team would have advanced to the playoffs in previous years. -
Force Energy: Growing the Band - Student Spreadsheet
Spreadsheet to accompany product no. W33840. -
HCF Health Insurance: Brand Repositioning Project
By 2015, HCF, Australia’s largest not-for-profit health fund, had become a tired brand that did not appeal to younger consumers despite eighty years of success. The market was changing and the combined pressure of competitors and consumer market dynamics meant that HCF was finding it increasingly difficult to maintain its position. Yasmina Pinto, the company’s head of brand, had been given the responsibility of revitalizing its tired brand so that it would once again become fresh and appealing to consumers. What was the best way forward for HCF as a brand and as a provider of high quality health care services for Australians?