This case recounts Uber's experience in four cities at different points in time. This approach offers a way to examine Uber's strategy for market entry and evaluate the performance of that strategy in these four cities, as well as elsewhere in the world. The cases included here help frame the discussion on the future of Uber's expansion, and extract lessons for how a firm can successfully navigate the beyond-market business environment.
This is an update to GS-61, describing developments at the company through 2011, including a major acquisition, distribution in China, and an initiative to cultivate start-ups that might grow into future clients.
This case recounts Uber's experience in four cities at different points in time. This approach offers a way to examine Uber's strategy for market entry and evaluate the performance of that strategy in these four cities, as well as elsewhere in the world. The cases included here help frame the discussion on the future of Uber's expansion, and extract lessons for how a firm can successfully navigate the beyond-market business environment.
This case recounts Uber's experience in four cities at different points in time. This approach offers a way to examine Uber's strategy for market entry and evaluate the performance of that strategy in these four cities, as well as elsewhere in the world. The cases included here help frame the discussion on the future of Uber's expansion, and extract lessons for how a firm can successfully navigate the beyond-market business environment.
This case recounts Uber's experience in four cities at different points in time. This approach offers a way to examine Uber's strategy for market entry and evaluate the performance of that strategy in these four cities, as well as elsewhere in the world. The cases included here help frame the discussion on the future of Uber's expansion, and extract lessons for how a firm can successfully navigate the beyond-market business environment.
A reliable, safe, supply of drinking water is essential to the survival of communities. In many places the water supply is under stress-a condition that is expected to get progressively more challenging in the future. There are several ways that municipalities can improve their drinking water supply, including conservation, purchases from external suppliers, desalination, and recycling. Recycling wastewater into potable water is attractive in many situations. However, this alternative has not always been successful-in some cases, public opposition has defeated recycling plans, while public concerns have been successfully addressed in others. This case gives an overview of water supply issues and examples of successful and unsuccessful attempts to implement recycling programs. Programs in Singapore and Orange County, California are profiled as examples of successful recycling efforts, while failures in San Diego, California, and Toowoomba, Australia are described.
By the early 21st century, the economics of thoroughbred horse racing in the United States was backwards - owners invested about four times as much money into the sport than the total amount of purse money available. Owners raced their horses as early as possible, and for as short a time as possible to prove that they were valuable for breeding-then sold them to breeding operations. The industry relied heavily on new entrants who had money from outside horse racing to buy and race their foals. Stonestreet Farms was founded by Jess Jackson, a billionaire wine entrepreneur, who invested more than $200 million in the sport. Unlike most in the horse racing business, Stonestreet was involved in both training and racing horses and in breeding. Two of its horses, Curlin and Rachael Alexandra, won the coveted North American Horse of the year for three consecutive years, from 2007-2009. Both later became part of Stonestreet's breeding operation. This case discusses the challenges facing owners and breeders in the North American thoroughbred racing industry. It can be used as a companion case to SPM-49: Del Mar Racetrack: Reinventing the Horse Racing Fan Experience, which focuses on the industry from the perspective of race tracks.
Thoroughbred horse racing was in decline at the end of the 20th century and beginning of the 21st century. Nearly all metrics, from number of horses and races, to attendance, and amount wagered, was falling. Studies indicated this was likely to continue. Horse race tracks made their money from wagering-where once racing had a monopoly on gambling in the U.S., now there were a wide range of options for gamblers. Del Mar racetrack in California was suffering the same fate as other tracks. In 2001, it embarked on a radical new marketing strategy, appealing to a young, hip demographic, families, and couples, rather than older, male gamblers. The case describes the situation facing the racing industry and track management, the rebranding strategy, and results. It challenges students to determine whether the strategy used by Del Mar is applicable to other tracks, or if it is limited due to unique circumstances at Del Mar. This case focuses on horse racing from the perspective of tracks. A companion case, SPM-50: Stonestreet Farms: Making a Business in the "Sport of Kings," focuses on the industry from the perspective of race horse owners and breeders.
Environmental stewardship was part of REI's culture since the company was founded, and integral to its corporate purpose. In 2005, REI began carefully measuring its environmental impact, establishing aggressive sustainability goals, and implementing programs to achieve these goals. The corporate social responsibility group, which oversaw the environmental sustainability program, took the approach that social and financial objectives should not be viewed as tradeoffs. For instance, growth objectives (increasing the number of stores and sales per store) should not come at the expense of energy consumption objectives for flat or decreasing corporate energy usage. Insisting that both objectives be met would lead to creating thinking and innovative solutions. The case describes the environmental stewardship program at REI, its objectives, and philosophy of implementation.
In 2010, Recreational Equipment, Inc. (REI) considered adding photovoltaic solar panels to the roofs of some of its facilities. This was driven by both financial and environmental considerations. In 2008, the company had added solar panels to 11 buildings in a project ("Phase 1") that was justified largely as a learning exercise. The new project ("Phase 2") would have to meet both financial and environmental objectives. The case describes the company's experience with solar power generation as well as providing representative assumptions for parameters in the financial analysis. An Excel spreadsheet is available for students, incorporating the basic analytical methodology used by REI.
Mountain Hazelnut Venture Limited ("Mountain Hazelnuts") was founded with economic, social, and environmental objectives. It planned to distribute young hazelnut plants at no charge to a large number of subsistence farmers in Bhutan. The farmers would plant the trees in fallow or degraded land, tend them, and sell the resulting nuts to the company at a price negotiated between the Bhutanese government and the company. If successful, this would generate a financial return for investors, greatly increase the cash income of participating farmers, help preserve rural Bhutanese communities, and improve the environment by stabilizing hillsides, reducing erosion, and providing other benefits. Mountain Hazelnuts was the first 100 percent foreign direct investment company in Bhutan. By early 2011, when the case is set, Mountain Hazelnuts had successfully established a nursery in rural eastern Bhutan, with a capacity to produce millions of plants. It was preparing to distribute its first trees to Bhutanese farmers-a project that would involve 10 million trees over five years, and involve about 15 percent of the country's population. This case is intended for use in a course on supply chain management, but can be used in classes focused on the environment, entrepreneurship, social entrepreneurship (for instance, within a philanthropy course), global business, or business in developing economies.
Through 2007, Crocs grew rapidly, and its stock soared. In early 2008, the stock plunged, as analysts cited excess inventory. During 2008, revenues decreased, and the company restructured. The B case summarizes these developments, and asks what the company should do now.
Nature plays an important role in maintaining the flow and purity of water. Human activities often degrade the quality and/or quantity of water flowing to downstream users, but the maintenance of natural ecosystems and the sound conservation management by those living upstream in watersheds can help provide a clean, reliable supply of water for downstream water users. Water funds are a way for downstream water users to preserve their water supply, by paying to restore and conserve natural ecosystems. They also enable upstream and downstream communities to work together for mutual benefit, preserving or restoring nature's ability to improve water quality and reliable flow while providing economic opportunities for upstream communities. This case introduces the concept of ecosystem services (the role that natural ecosystems play in sustaining and fulfilling human life) and payment for ecosystem services (PES), in which stakeholders pay in order to preserve or restore the ability of nature to provide these services. It describes water funds and other PES arrangements, as well as some of the challenges that water funds face. Several examples are provided of water funds and other PES programs.
JetBlue Airways grew rapidly from its founding in 2000, focusing on providing low-cost service to previously underserved cities, while giving passengers a high-quality experience, ("bringing humanity back to air travel"). An ice storm at JFK airport on February 14, 2007 caused 1,195 flights to be cancelled over a six day period, and stranded several planes on the taxiway for many hours. JetBlue, previously viewed as one of the best airlines (if not the best) for customer service, took extensive criticism from the public, press, and Congress. In addition, the disruptions caused by the storm cost the company over $41 million. The 2007 storm highlighted deficiencies in JetBlue's operational infrastructure. Some top-down changes were made, but disruptions caused by thunderstorms in summer 2008 demonstrated that the airline's ability to deal with irregular operations (IROPs) was woefully inadequate. The company instituted a program (IROP Integrity) that utilized the talents of more than 200 employees, from all levels, and all parts of the airline, to address these problems. This was done through process mapping, root cause analysis, and cross-discipline cooperation working on 100 projects to improve both technology and processes. In February 2010, an ice storm far worse than the 2007 event again disrupted operations at JFK. This time, the airline had to cancel far fewer flights, which were mostly done before passengers arrived at the airport, operations the next day, and the cost was a small fraction of the cost of the 2007 disruption. This case describes the IROP Integrity project-its origins, the role of executive sponsors, project leadership and organization, and the processes used to identify and carry out improvement projects. It also describes the legacy of IROP Integrity on the JetBlue organization and culture.
This case describes the history, operations, and economics of Infineon Raceway (Sears Point Raceway) in Sonoma, California, and the challenges facing the racetrack as a result of the economic recession of 2008-9. The racetrack's most important race is a NASCAR Sprint Cup event. It also hosts IndyCar, NHRA drag races, and other events. Speedway Motorsports Inc. purchased the track in 1996, and made substantial a capital investment to improve the spectator experience. The track is heavily dependent, financially, on corporate sponsorship. Its naming rights agreement with Infineon Technologies was expiring in 2012, and many of its other corporate sponsors were cutting back or ending their sponsorships due to economic stress. The case describes the advantages of corporate sponsorship, and the ways in which a company can utilized sponsorship to build its brand, reward and motivate employees, drive retail traffic to stores and distributors, and entertain customers. The case includes a 10 page appendix with background information of the basic types of motor racing and descriptions of major racetracks in California.
Revenue recognition is a critical issue for companies. Proper revenue accounting can be complex, particularly when vendors provide a mix of products and services, making it difficult to determine the appropriate timing and amount of revenue to be recognized. Financial reporting standards require disentangling multiple revenue streams to ensure that revenue is not recognized before it is earned. Compliance with recognition standards can affect access to capital, firm valuation, and employee bonuses. Errors can have severe consequences, including earning restatements. The case discusses key issues in revenue recognition, with particular focus on transactions with multiple deliverables. It uses Fluidigm Corporation to illustrate revenue recognition principles. This company sells a range of products, including analytical instruments, disposables, software, and services. The case also illustrates the evolving nature of revenue recognition standards, and the consequences of guidance changes on financial reporting and company procedures.
In 2008, more than 750 million cell phones were produced in China. A significant portion (20 percent, or about 150 million units) of these phones were produced by Shanzhai companies. These companies had rapidly taken a significant share (about 10 percent) of the worldwide market. This phenomenal growth was primarily due to nonconventional approaches to the global market in market positioning, rapid product development, and tightly coupled, responsive and efficient supply chain management. Though Shanzhai often has been perceived as a term for counterfeiting, in reality it is more than just copying. Modern cell phones contain sophisticated hardware, software and systems technology, yet Shanzhai companies of only 10 people could leverage a sophisticated (though informal) network of product designers, manufacturers, and distributors to make a successful business. This case describes the Shanzhai phenomenon, and how these companies operate. It also provides an example of one company that successfully transitioned from a Shanzhai culture to become a major mainstream force in the Chinese mobile phone industry. The case also discusses forces that challenge the future of the Shanzhai model.
The Institute for Healthcare Improvement's (IHI) 100,000 Lives Campaign ended in June 2006. This 18-month campaign sought to save 100,000 people from unnecessary death in U.S. hospitals, and is the subject of case L-13. To successfully accomplish its goals, IHI enlisted a wide range of organizations, including hospitals, regulatory agencies, insurance companies, medical associations, and other Healthcare-related groups to work together toward the common objective of increasing patient safety. In December, IHI launched a follow-up campaign intended to prevent 5 million instances of medical harm over the next two years. This case describes the 5 Million Lives Campaign, how it built upon the previous campaign, and issues faced by IHI at the end of the effort.