Infosys, an India-based global IT consulting and software services provider, had more than 200,000 employees, mainly software specialists and technical consultants, who were assigned to projects by a talent allocation team that made staffing recommendations based on detailed manual assessments of employees' skill sets and experience. However, Infosys delivery managers, responsible for managing the talent assigned to projects, often rejected the matches proposed by the talent team and hoarded human resources for their own projects. In fall 2017, Infosys leaders assembled a cross-functional team and tasked it with developing a new AI-based talent management system to replace the old manual process. The new system was to provide a 360-degree view of open positions and available employees and use an algorithm to make hiring recommendations for projects. The AI team members had to make various data, design, and deployment decisions before they could begin building the new solution. First, they had to select data variables to define "supply" (i.e., employees available for assignments) and "demand" (i.e., staffing needs for client engagements). They also had to establish a system for ensuring this data was kept accurate and up to date after launch. Last--but perhaps most critical--the team had to develop a plan for maintenance and continuous improvement of the model, even at this early stage.
The rise of financial technology companies-"fintechs"-is changing the way money moves around the world, leading to greater financial inclusion and closing a credit gap that historically has hampered small businesses. According to the World Bank, small and medium enterprises (SMEs) is the engine driving world economies, representing 90 percent of all businesses worldwide, providing 50 percent of all employment, and responsible for up to 40 percent of national income in developing economies. Even so, research has shown that 65 million businesses-or 40 percent of SMEs in developing economies-face an unmet financing need of $5.2 trillion per year. This gap translates to 19 percent of the gross domestic product of the 128 countries surveyed and attests to the vital role that SMEs play in the world economy as a driver of employment and overall economic health.
Emerging markets often are portrayed as dysfunctional and are characterized by weak institutions. Such environments can expose foreign direct investment to myriad challenges, including the demand for bribes, regulatory obstacles, government and business partner hold-up problems, macroeconomic meltdowns, and even civil war. This case underscores how non-market risk factors can have powerful implications on the success or failure of a business and must be monitored continuously and addressed with deliberate strategies. The case features SOCO International, a British oil and gas exploration and production company fighting in February 2015 to maintain its license to operate in Virunga National Park in the Democratic Republic of Congo (DRC) amid a worldwide backlash against its practices. Students will step into the shoes of SOCO, the DRC government, the local community, and the international community as they develop a 360-degree view of the situation. Discussions should highlight how to diagnose and address challenges on multiple fronts.
Armed with a patent on technology that allowed users to modify existing websites and then provide access to the improved versions, Oded Golan and his startup cofounder had turned an idea born in Golan's Tel Aviv apartment into a business that had raised $3.5 million in venture capital funding and now served more than 3,000 of the world's biggest brands. Turning their technology into a profitable business had been quite challenging for the entrepreneurs, however. Over the course of four years, they had launched several products serving several different customer segments, continually chasing the goal of sustainable profits and growth. In 2017, they received the news that their much-needed second round of financing had fallen through. With only $350,000 left in the company's bank account, the founders needed to act fast once more to save their business. Students will explore Start A Fire's monetization strategies and experimentation with different product types in the founders' effort to create value from their patented technology. The case also illustrates how a firm's choice of customer segment affects its strategy.
In the summer of 2014, a large energy company was poised to begin expanding its unconventional natural gas operations in northeastern British Columbia in the hopes of capitalizing on the Canadian province's determination to build a liquid natural gas industry. The company had secured mineral rights from the province but had not simultaneously pursued surface rights from a First Nation community that historically had used the land. When a seismic exploration team appeared on the tribe's traditional territory without consulting it, as was customary (and in some cases legally required), the company unwittingly ignited a firestorm of protest from both First Nation and non First Nation local citizens. Recognizing the importance of social acceptance both to operations and profitability, the company sent senior vice president Maria Paquet to participate in fireside discussions with tribal, regional government, and environmental leaders in the hopes of finding some common ground. Could these leaders arrive at sufficient trust and agreement to allow the company to move forward with its plans? Or would the company face gridlock, community blocking, or even financial peril? In a small-group role-playing exercise, students will step into the shoes of each of these stakeholders as they try to forge a path forward that is acceptable to all.
In the fall of 2014, Chad Kartchner, senior manager of marketing and product management at Honeywell Aerospace (HA), pondered how technology could transform the way aircraft were maintained. He had heard a lot of buzz about cognitive analytics, an artificial intelligence term referring to the use of computer models and algorithms to simulate human thought through self-learning systems, data mining, pattern recognition, and natural language processing. The sheer volume of parts and the time-sensitive nature of repairs in the aviation industry made it complicated to identify problems and address them quickly. Kartchner contemplated the options for updating HA's ground-based maintenance system. Should he emulate HA's state-of-the-art on-board system for an entire aircraft or try something new? Emulating the on-board system, which HA developed internally, would be an easy sell to leadership given internal buy-in and satisfaction with the on-board system, but he contemplated new approaches because he did not want to overlook rapidly emerging technologies. The latter could include crowdsourced features that leveraged the abundance of knowledge among HA's customers' technicians or a cognitive analytics approach. Even if he could persuade leadership to try a new cognitive analytics approach, should HA partner with an established entity or work with a relatively unproven startup who promised lower cost, better features, and quicker turnaround to develop a new system? Students will step into the shoes of Kartchner as he leads the internal discussion on whether and how to tap into the benefits of cognitive analytic solutions for Honeywell Aerospace and its customers.
At the dawn of the twenty-first century, Boeing and Airbus, the leading manufacturers of large aircraft, were locked in a battle for market share that drove down prices for their new planes. At about the same time, the two industry heavyweights began developing new aircraft families to address the future market needs they each projected. Aircraft take many years to develop, so by the time the new planes made their inaugural flights, significant changes had occurred in the global environment. First, emerging economies in the Asia-Pacific region and elsewhere were growing rapidly, spawning immediate and long-term demand for more aircraft. At the same time, changes to the market for air travel had created opportunities for new products. These opportunities had not gone unnoticed by potential new entrants, which were positioning themselves to compete against the market leaders. In October 2007, the Airbus superjumbo A380 made its first flight. The A380 carried more passengers than any other plane in history and had been touted as a solution to increased congestion at global mega-hub airports. Four years later the Boeing 787, a smaller long-range aircraft, was launched to service secondary cities in a point-to-point network. The case provides students with an opportunity to analyze the profit potential of the global aircraft manufacturing industry in 2002 and in 2011. Students can also identify the actions of participants that weakened or intensified the pressure on profits within the industry.
In January 2012, the Jane Addams Hull House Association--one of Chicago's largest and oldest social service agencies and arguably its most iconic--announced that it might have to close in the spring due to financial difficulties. Just days later, the 122-year-old organization stunned the philanthropic world when it laid off its employees without notice, declared its intention to liquidate in a Chapter 7 bankruptcy, and shut its doors forever. In the weeks that followed, more and more people began to ask: What had happened to the board? Had bankruptcy really been inevitable? This case chronicles the organization's final decade and enables students to step into the shoes of the chairman of the board, Steve Saunders, as he led the board through its last two years. Students will examine the roles and responsibilities of effective boards and determine how internal and external factors contributed to Hull House's demise.
The Kenyan government's announcement of a new 10 percent tax in March 2013 threatened the future prospects of M-Pesa, Safaricom's mobile money transfer service, which had revolutionized the way money moved in Kenya. The new tax would be levied on all cash transfers but was largely targeted at M-Pesa, which controlled around 80 percent of the cash transfer market. In response to the new tax, Safaricom, the mobile communications market leader, announced a 10 percent price increase. The case presents the structure Safaricom established in order to develop a mobile money transfer service in Kenya. As a concept, M-Pesa was unprecedented in Kenya: prospective customers had to get comfortable with the idea that a mobile communications company could provide a payment system, that transactions could be initiated through a mobile phone, and that nonbank outlets could provide cash-in/cash-out services. Even when the concept was accepted, however, customers needed a convenient network of agents to handle transactions, and stores needed to see demand from customers in order to be motivated to become agent outlets. Thus, in order to grow, M-Pesa needed to aggressively pursue and acquire both customers and agents in this two-sided market.
During one of the most nerve-wracking football matches of the 2012-2013 Bundesliga season, life-long friends Franz Dully and Max Vogel begin arguing about whether the wealth of a football club determines its success during the season. In order to disprove Vogel's claim that "money scores goals," Dully must analyze the Bundesliga's current market values, points earned, and mid-season leader data.
The case tells the story of Synthroid from its development in 1958 as the first synthetic thyroxine molecule to its competition against generic equivalents in 2004. The case introduces students to the pharmaceutical industry, its practices, and some of the complexities of pricing and drug choice, with drug manufacturers, insurance companies, physicians, pharmacists, and patients all playing a role. It also provides a primer on hypothyroidism, its symptoms, and its treatment. Because Synthroid was developed and introduced before FDA regulations and drug standards of identity were fully established, it was difficult for competitors to get their drugs certified as identical to Synthroid. Through a series of efforts with physicians, especially endocrinologists, Synthroid's owners were able to maintain the perception for forty-six years that Synthroid was uniquely effective. In 2004, however, the FDA declared several competitive products to be bioequivalent to Synthroid, which posed a significant challenge to its owner, Abbott Laboratories. Students are challenged to consider options to maintain the drug's unit volume, revenue, and/or profit in these difficult circumstances. The case is written in two parts. The (A) case provides background on the history of the drug, the pharmaceutical industry and its marketing practices, and hypothyroidism and its treatment, and it concludes in 2004 as Abbott's marketers face the impending challenge of defending the Synthroid business against generic competition. The (B) case describes what Abbott actually did to maintain its share in the United States and outlines its strategy in India, a market without patent protection for pharmaceuticals.
The case tells the story of Synthroid from its development in 1958 as the first synthetic thyroxine molecule to its competition against generic equivalents in 2004. The case introduces students to the pharmaceutical industry, its practices, and some of the complexities of pricing and drug choice, with drug manufacturers, insurance companies, physicians, pharmacists, and patients all playing a role. It also provides a primer on hypothyroidism, its symptoms, and its treatment. Because Synthroid was developed and introduced before FDA regulations and drug standards of identity were fully established, it was difficult for competitors to get their drugs certified as identical to Synthroid. Through a series of efforts with physicians, especially endocrinologists, Synthroid's owners were able to maintain the perception for forty-six years that Synthroid was uniquely effective. In 2004, however, the FDA declared several competitive products to be bioequivalent to Synthroid, which posed a significant challenge to its owner, Abbott Laboratories. Students are challenged to consider options to maintain the drug's unit volume, revenue, and/or profit in these difficult circumstances. The case is written in two parts. The (A) case provides background on the history of the drug, the pharmaceutical industry and its marketing practices, and hypothyroidism and its treatment, and it concludes in 2004 as Abbott's marketers face the impending challenge of defending the Synthroid business against generic competition. The (B) case describes what Abbott actually did to maintain its share in the United States and outlines its strategy in India, a market without patent protection for pharmaceuticals.
The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the "new economy" boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.
The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the "new economy" boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.
The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the "new economy" boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.
After Hurricane Katrina hit the coast of Louisiana on August 29, 2005, Wal-Mart initiated emergency operations that not only protected and reopened its stores, but also helped its employees and others in the community cope with the disaster's personal impact. This response was part of a wider effort by the company under CEO Lee Scott to improve its public image. Wal-Mart's efforts were widely regarded as the most successful of all corporations in the aftermath of the disaster and set the standard for future corporate disaster relief programs.
Wall Street hedge fund manager Kim Meyer is considering investing in an SFA (slate financing arrangement) in Hollywood. Dave Griffith, a Hollywood producer, is pitching for the investment and has conducted a broad analysis of recent movie data to determine the important drivers of a movie's success. In order to convince Meyer to invest in an SFA, Griffith must anticipate possible questions to maximize his persuasiveness.
The financial success of dairy farms depends critically on the price of their main output, milk. Large volatility in the price of milk poses a considerable business risk to dairy farms. This is particularly true for family-run dairy farms. The question then arises: how can a farm owner hedge the milk price risk? The standard approach to establish a price floor for a commodity such as milk is to purchase put options on commodity futures. At the Chicago Mercantile Exchange, farmers can buy put options on the price of a variety of milk products. However, the price a farm receives for its milk depends on many factors and is unique to the farm. Thus, a farmer cannot directly buy put options on the price he receives for the milk his farm produces. Instead the farmer needs to determine which of the options available for trade at the Chicago Mercantile Exchange offer the best hedge for his own milk price. The assignment in this case is to examine historical data on several prices of milk products and the milk price received by a family-run dairy farm in California. Students need to find the price that is most closely correlated to the farm's milk price and to then choose options with the appropriate strike price that serve as the best hedge for the farm's price risk.
The financial success of dairy farms depends critically on the price of their main output, milk. Large volatility in the price of milk poses a considerable business risk to dairy farms. This is particularly true for family-run dairy farms. The question then arises: how can a farm owner hedge the milk price risk? The standard approach to establish a price floor for a commodity such as milk is to purchase put options on commodity futures. At the Chicago Mercantile Exchange, farmers can buy put options on the price of a variety of milk products. However, the price a farm receives for its milk depends on many factors and is unique to the farm. Thus, a farmer cannot directly buy put options on the price he receives for the milk his farm produces. Instead the farmer needs to determine which of the options available for trade at the Chicago Mercantile Exchange offer the best hedge for his own milk price. The assignment in this case is to examine historical data on several prices of milk products and the milk price received by a family-run dairy farm in California. Students need to find the price that is most closely correlated to the farm's milk price and to then choose options with the appropriate strike price that serve as the best hedge for the farm's price risk.