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Alphabet Inc.'s Google LLC (Google) purchased Fitbit Inc. (Fitbit) in November 2019 for US$2.1 billion, marking its foray into health care, and by January 2021, the US Department of Justice was conducting a probe into the Google-Fitbit merger amid Fitbit users' skepticism and distrust of the deal with regard to data privacy. Although Google's senior vice-president of devices and services assured users that the intent of the deal was to "spur innovation in wearables" and not to sell personal information or use Fitbit's health and wellness data for Google Ads, Fitbit users remained concerned regarding Google's access to incredible amounts of personal data. While the acquisition would help Google address its hardware failures of the past, gain an edge in software through an instant foothold in the growing smartwatch market, and integrate Fitbit's smartwatches more deeply with Android, the larger goal was more likely maximizing Fitbit's business-to-business (B2B) partnerships with "health insurance companies and direct corporate wellness programming." What strategies should Google use to leverage Fitbit's hardware strengths, B2B partnerships, and technical expertise? What steps should Google take to assuage data privacy concerns to become a serious contender in the smartwatch and health care markets and to realize its goal of revolutionizing digital health care? Did Fitbit stand to benefit from the deal?

Presentation to accompany product 8B21M075.

Alphabet Inc.’s Google LLC (Google) purchased Fitbit Inc. (Fitbit) in November 2019 for US$2.1 billion, marking its foray into health care, and by January 2021, the US Department of Justice was conducting a probe into the Google–Fitbit merger amid Fitbit users’ skepticism and distrust of the deal with regard to data privacy. Although Google’s senior vice-president of devices and services assured users that the intent of the deal was to “spur innovation in wearables” and not to sell personal information or use Fitbit’s health and wellness data for Google Ads, Fitbit users remained concerned regarding Google’s access to incredible amounts of personal data. While the acquisition would help Google address its hardware failures of the past, gain an edge in software through an instant foothold in the growing smartwatch market, and integrate Fitbit’s smartwatches more deeply with Android, the larger goal was more likely maximizing Fitbit’s business-to-business (B2B) partnerships with “health insurance companies and direct corporate wellness programming.” What strategies should Google use to leverage Fitbit’s hardware strengths, B2B partnerships, and technical expertise? What steps should Google take to assuage data privacy concerns to become a serious contender in the smartwatch and health care markets and to realize its goal of revolutionizing digital health care? Did Fitbit stand to benefit from the deal?

Spreadsheet supplement for case W21328.

In May 2019, a retail investor in the Philippines had to decide whether or not to immediately sell his shares in Holcim Philippines, Inc (HPI). The San Miguel Corporation had just announced the acquisition of around 86 per cent controlling interest in HPI. The price of HPI had increased considerably in the months leading up to the acquisition announcement, and this investor was anticipating a large gain. Now, he needed to run a fair value estimate of HPI's price using both the capital-asset-pricing-model-based discounted cash flow method and the comparable multiples method in order to decide what to do: Should he sell his shares at the prevailing market price, wait until the future potential tender offer, or hold his shares indefinitely?

The case deals with the international expansion of Jollibee across Asia, USA and Europe along various dimensions (in particular its brands portfolio)

The owner and founder of The Talking Hands, a socially responsible restaurant, in Nagpur, India, had launched his company to create job opportunities for persons with disabilities. He wanted to find a balance between customer experience and customer service, but he also wanted to open two new outlets in his city and seriously consider his friend’s proposal of opening franchisee outlets of The Talking Hands in two Indian cites—Mumbai and Pune. He wanted to consolidate and expand his business without denting the restaurant’s brand identity. Also, as demand for the restaurant grew, the increasing delays in order taking and delivery needed to be managed. Could he hire some non-disabled staff members to manage rush orders and deliveries and still keep operating expenses under control? Should he go through with his expansion plans with the franchise model at this time? He needed to make a decision while renovations to his restaurant were underway.

The owner and founder of The Talking Hands, a socially responsible restaurant, in Nagpur, India, had launched his company to create job opportunities for persons with disabilities. He wanted to find a balance between customer experience and customer service, but he also wanted to open two new outlets in his city and seriously consider his friend's proposal of opening franchisee outlets of The Talking Hands in two Indian cites-Mumbai and Pune. He wanted to consolidate and expand his business without denting the restaurant's brand identity. Also, as demand for the restaurant grew, the increasing delays in order taking and delivery needed to be managed. Could he hire some non-disabled staff members to manage rush orders and deliveries and still keep operating expenses under control? Should he go through with his expansion plans with the franchise model at this time? He needed to make a decision while renovations to his restaurant were underway.

Student spreadsheet supplement to case W20664

On June 11, 2018, Jake Veluz, portfolio manager at BDO Asset Management had to decide whether or not to invest in the initial public offering (IPO) of D.M. Wenceslao and Associates (DMW), a Philippine-based integrated property developer. The IPO price of DMW was reduced from ₱22.90 to ₱12 because of deteriorating stock market conditions. There is substantial concentration risk because most of the company's land is in a single location and it is subject to long-term competitive pressures. However, DMW also has good prospects for future growth and capital appreciation in real estate rentals and development. Veluz had to prepare an internal memo to explain the merits, risks, and fair valuation of a possible investment in the DMW IPO in the context of weak stock market conditions.

Instructor Spreadsheet to accompany product 8B20N025.

Student Spreadsheet to accompany product 9B20N025.

On June 11, 2018, Jake Veluz, portfolio manager at BDO Asset Management had to decide whether or not to invest in the initial public offering (IPO) of D.M. Wenceslao and Associates (DMW), a Philippine-based integrated property developer. The IPO price of DMW was reduced from ₱22.90 to ₱12 because of deteriorating stock market conditions. There is substantial concentration risk because most of the company’s land is in a single location and it is subject to long-term competitive pressures. However, DMW also has good prospects for future growth and capital appreciation in real estate rentals and development. Veluz had to prepare an internal memo to explain the merits, risks, and fair valuation of a possible investment in the DMW IPO in the context of weak stock market conditions.

Presentation to accompany product 8B20A060.

In January 2020, Jai Prakash Chaubey, the managing director of Sarva Pharmaceuticals Private Limited (Sarva), needed to decide whether or not to accept a proposal from Gursim Pharmaceutical Limited (Gursim) to market some of Sarva’s products in Cambodia. Sarva had been performing well; however, the company’s profitability in Cambodia was minimal. Should Chaubey accept Gursim’s offer? Or should he hire a new country head who could drive the sales in the country and motivate the sales team for better results? Other options included restructuring Sarva’s product portfolio or shutting down the company’s marketing arm to focus solely on distribution. What strategies should he adopt to turn around his company's performance, strengthen its presence in Cambodia, and remain on course to achieve the company’s target for 2020?

In January 2020, Jai Prakash Chaubey, the managing director of Sarva Pharmaceuticals Private Limited (Sarva), needed to decide whether or not to accept a proposal from Gursim Pharmaceutical Limited (Gursim) to market some of Sarva's products in Cambodia. Sarva had been performing well; however, the company's profitability in Cambodia was minimal. Should Chaubey accept Gursim's offer? Or should he hire a new country head who could drive the sales in the country and motivate the sales team for better results? Other options included restructuring Sarva's product portfolio or shutting down the company's marketing arm to focus solely on distribution. What strategies should he adopt to turn around his company's performance, strengthen its presence in Cambodia, and remain on course to achieve the company's target for 2020?

Tea Connect, a chain of five tea cafés in India, had ended 2019 with sales revenues of ₹48.1 million. The co-founder of Tea Connect had the ambitious target of opening 20 cafés and achieving sales revenues of ₹200 million by 2020. The co-founder planned the renovation of the cafés to improve the speed of service, but he also wanted to launch Tea Connect-branded consumer packaged products. Three franchising offers for stores in Jaipur, Jodhpur, and Mount Abu were also under consideration. He was wondering whether renovation would help to enhance the customer experience and whether this was the right time to launch consumer packaged goods. Also, was it the right time to explore the franchise route of expansion?

Brewing Peace was a company based in the Philippines that sold coffee beans. Despite having a base of 80 customers, 70 per cent of its business depended on 9 key accounts; this included its biggest buyer, Concepcion Coffee Enterprises Limited (CCEL), which accounted for 20 per cent of Brewing Peace's revenues. After a ₱30 million order from CCEL with a profit margin of less than 20 per cent, a payment period of 90 days, and a short delivery time, the co-founder of Brewing Peace was forced to review its relationship with its biggest client. The dilemma facing Brewing Peace was that it could not accept this order on CCEL's terms without jeopardizing the company's payment terms with its vendors and affecting the supply for orders, worth ₱25 million, to its other customers.

Brewing Peace was a company based in the Philippines that sold coffee beans. Despite having a base of 80 customers, 70 per cent of its business depended on 9 key accounts; this included its biggest buyer, Concepcion Coffee Enterprises Limited (CCEL), which accounted for 20 per cent of Brewing Peace’s revenues. After a ₱30 million order from CCEL with a profit margin of less than 20 per cent, a payment period of 90 days, and a short delivery time, the co-founder of Brewing Peace was forced to review its relationship with its biggest client. The dilemma facing Brewing Peace was that it could not accept this order on CCEL’s terms without jeopardizing the company’s payment terms with its vendors and affecting the supply for orders, worth ₱25 million, to its other customers.

How to position Netflix in the Indian entertainment market?