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The United Daily News Group, a leader in Taiwan’s media, faces the imminent death of the country’s newspaper industry. The founder’s grandson took over as the company’s chair just four years earlier, during a time when an increasing number of readers were turning to the Internet for their news. Looking ahead, he needs to sustain the company’s future development while recognizing that the business of running traditional newspapers may no longer be profitable. He needs to assess the company’s strengths, integrate the group’s resources, improve news content, introduce digital media and, in doing so, create a new business model. He wonders how to best initiate the integration of resources and which media innovations he should introduce. See supplement cases 9B15M076 and 9B15M077.

Supplement to United Daily News Group (A): Building Hybrid Business Models, 9B15M075.

Supplement to United Daily News Group (A): Building Hybrid Business Models, 9B15M075.

The United Daily News Group, a leader in Taiwan's media, faces the imminent death of the country's newspaper industry. The founder's grandson took over as the company's chair just four years earlier, during a time when an increasing number of readers were turning to the Internet for their news. Looking ahead, he needs to sustain the company's future development while recognizing that the business of running traditional newspapers may no longer be profitable. He needs to assess the company's strengths, integrate the group's resources, improve news content, introduce digital media and, in doing so, create a new business model. He wonders how to best initiate the integration of resources and which media innovations he should introduce.

The United Daily News Group, a leader in Taiwan's media, faces the imminent death of the country's newspaper industry. The founder's grandson took over as the company's chair just four years earlier, during a time when an increasing number of readers were turning to the Internet for their news. Looking ahead, he needs to sustain the company's future development while recognizing that the business of running traditional newspapers may no longer be profitable. He needs to assess the company's strengths, integrate the group's resources, improve news content, introduce digital media and, in doing so, create a new business model. He wonders how to best initiate the integration of resources and which media innovations he should introduce.

In May 2011, the Public Bike System Company, based in Montreal, Canada, was preparing to answer a request for proposal by New York City to create a financially self-sustaining public bike-sharing system. Three years earlier, the company, owned by the Montreal Transit Authority, had created Bixi, a service that made bikes available to members through docking stations, powered by solar energy, spread across the city. Although its financial structure was still unproven, it was a promising solution that aimed to revolutionize urban transportation. In partnership with other private bike-sharing organizations, the company had successfully expanded to Minneapolis-St. Paul and Washington D.C. but had experienced problems with its implementations in Melbourne, London and Boston. Furthermore, the system in Montreal could not provide evidence of profitability, forcing the city government to step in by guaranteeing loans and providing additional cash flow. It also did not have a clear business plan as to how, when and where its international expansion should take place. Now, news of its problems in Montreal had made headlines in New York, putting the future of its expansion ambitions in doubt.

The newly appointed innovation manager at Purolator, a market leader in the parcel delivery industry in Canada, is under pressure to deliver quick wins. The manager faces three dilemmas in his role, which is the first-of-its-kind in the company. How should he bring innovation to the attention of Purolator employees, particularly the senior managers? How should he develop the roadmap and set an agenda for unveiling innovation at Purolator? How should he ensure that innovation becomes a source of long-term competitive advantage at Purolator?

The newly appointed innovation manager at Purolator, a market leader in the parcel delivery industry in Canada, is under pressure to deliver quick wins. The manager faces three dilemmas in his role, which is the first-of-its-kind in the company. How should he bring innovation to the attention of Purolator employees, particularly the senior managers? How should he develop the roadmap and set an agenda for unveiling innovation at Purolator? How should he ensure that innovation becomes a source of long-term competitive advantage at Purolator?

In early 2014, Ferio Pugliese looked back on his turbulent first year as president of WestJet Airlines Ltd.'s new regional air service Encore. Encore represented the company's most significant organizational change in its 18 years of dramatic growth. Expanding the airline's fleet to include smaller, short-haul aircraft that could service smaller destinations throughout Western Canada had not been without growing pains. For example, a number of employees reportedly felt they were losing their sense of belonging in the company that prided itself on employee satisfaction. Pugliese wondered how he should proceed in putting Encore on a successful path.

The world's second largest home appliances company has introduced a change in its global organization structure. Electrolux AB has consolidated its research and development, marketing and design functions at the top to form what is known as the "Innovation Triangle." This change is in tune with the pursuit of innovation as a source of differentiation in a competitive industry. The concept has been tested in Electrolux Brazil for four years before being scaled up globally. The amplified version of the Innovation Triangle has a singular objective: to facilitate innovation enterprise-wide by leveraging cross-functional, cross-geographical and cross-business synergies. The ultimate goal is to launch new products faster, better and in greater number. The unveiling of the new organizational structure presents an opportunity for the company's Innovation team to review the company's ongoing innovation initiatives. The four-member team grapples with issues around improving the company's innovation pipeline.

The world’s second largest home appliances company has introduced a change in its global organization structure. Electrolux AB has consolidated its research and development, marketing and design functions at the top to form what is known as the “Innovation Triangle.” This change is in tune with the pursuit of innovation as a source of differentiation in a competitive industry. The concept has been tested in Electrolux Brazil for four years before being scaled up globally. The amplified version of the Innovation Triangle has a singular objective: to facilitate innovation enterprise-wide by leveraging cross-functional, cross-geographical and cross-business synergies. The ultimate goal is to launch new products faster, better and in greater number. The unveiling of the new organizational structure presents an opportunity for the company's Innovation team to review the company’s ongoing innovation initiatives. The four-member team grapples with issues around improving the company’s innovation pipeline.

In early 2013, the head of business development and commercial operations of Arla Foods, a dairy enterprise focused on Northern European markets, is examining, in the light of a new five-year strategy, alternatives to the existing organization structure. His dilemma is to determine the best structure that can deliver the strategy, which is focused on renewed international expansion. The new structure must support the company's strategy in relation to both the existing core markets in Northern Europe and also the growth markets of the future in countries of Asia and Africa. It must ensure that Arla Foods has the right competitive stance in individual markets, which vary widely in terms of customer buying habits and retail formats. It must also ensure regular innovation of dairy categories developed from local resources and marketable globally.

In early 2013, the head of business development and commercial operations of Arla Foods, a dairy enterprise focused on Northern European markets, is examining, in the light of a new five-year strategy, alternatives to the existing organization structure. His dilemma is to determine the best structure that can deliver the strategy, which is focused on renewed international expansion. The new structure must support the company's strategy in relation to both the existing core markets in Northern Europe and also the growth markets of the future in countries of Asia and Africa. It must ensure that Arla Foods has the right competitive stance in individual markets, which vary widely in terms of customer buying habits and retail formats. It must also ensure regular innovation of dairy categories developed from local resources and marketable globally.

In 2009, after six years of operation and two negative audits, the president of the Canada Border Services Agency is thinking about initiating a reorganization to improve the way the agency is operated. Formed in 2003 from three government departments, the agency has been responsible for a range of activities represented by 90 acts and regulations that cover, for example, border security, immigration, food and plant inspection, intelligence and tax collection. Since its founding, the agency has grown substantially in the number of employees, who are spread out across the country in eight regions; some of them are in unions that are expert in the use of the news media to protect their members' interests. The lack of up-to-date communication equipment and the complexity of the organizational structure have resulted in an increased response time to matters that need immediate attention both within Canada and with international partners. No attempt has been made to streamline processes; every major initiative thus far has been focused on ensuring that nothing from the current workload gets dropped, processes remain intact and stronger controls are put in place. The president's challenge is to determine how to initiate anticipatory change. He has a limited term and needs to prepare a detailed action plan if he wants the changes to take effect before he leaves.

In 2009, after six years of operation and two negative audits, the president of the Canada Border Services Agency is thinking about initiating a reorganization to improve the way the agency is operated. Formed in 2003 from three government departments, the agency has been responsible for a range of activities represented by 90 acts and regulations that cover, for example, border security, immigration, food and plant inspection, intelligence and tax collection. Since its founding, the agency has grown substantially in the number of employees, who are spread out across the country in eight regions; some of them are in unions that are expert in the use of the news media to protect their members’ interests. The lack of up-to-date communication equipment and the complexity of the organizational structure have resulted in an increased response time to matters that need immediate attention both within Canada and with international partners. No attempt has been made to streamline processes; every major initiative thus far has been focused on ensuring that nothing from the current workload gets dropped, processes remain intact and stronger controls are put in place. The president’s challenge is to determine how to initiate anticipatory change. He has a limited term and needs to prepare a detailed action plan if he wants the changes to take effect before he leaves.

This is a supplement to 9B13M057.

A leading consumer packaged goods company manufacturing and marketing personal care products in India is examining ways of reaching its goal of 30 per cent growth in revenues per annum year after year. It has two options. It could concentrate on organic growth in the domestic market where, in spite of some categories having reached maturity, the overall demand for its products is forecast to grow consistently up to 2025. Alternatively, it could continue the inorganic path of acquiring companies globally; this appears, so far, to be the quickest route to building scale, but the long-term prospects are not certain. Case A deals with the dilemma about the fundamental growth strategy of whether to stick to the home market or go global. Case B, 9B13M058, examines the way forward with the framework of growth that the company has developed during the interim period. The company's managing director is testing this strategic framework in light of evaluating an acquisition target in Africa that has just surfaced.

A leading consumer packaged goods company manufacturing and marketing personal care products in India is examining ways of reaching its goal of 30 per cent growth in revenues per annum year after year. It has two options. It could concentrate on organic growth in the domestic market where, in spite of some categories having reached maturity, the overall demand for its products is forecast to grow consistently up to 2025. Alternatively, it could continue the inorganic path of acquiring companies globally; this appears, so far, to be the quickest route to building scale, but the long-term prospects are not certain. Case A deals with the dilemma about the fundamental growth strategy of whether to stick to the home market or go global. Case B, 9B13M058, examines the way forward with the framework of growth that the company has developed during the interim period. The company's managing director is testing this strategic framework in light of evaluating an acquisition target in Africa that has just surfaced.

This supplement to Hopax (A), product number 9B10M004, explains that, unlike the other players, Hopax decides to fight in court after Staples, Hopax's largest customer in the United States, decides to cancel its contract.