When industry conditions are disrupted, planning for the future can be difficult. For instance, the COVID-19 pandemic had a profound impact on the hospitality industry, not only depressing demand during the height of the crisis but also holding implications going forward for hotel demand in a future "new normal." How can mature, established organizations rethink their business models when circumstances demand it? How can firms envision possible scenarios and make plans to deploy resources when accurate forecasting is difficult or impossible? This case is used at Darden in the first-year core Strategy course, often in conjunction with concepts and frameworks such as hypothesis testing and scenario planning (see chapters 10 and 14 of The Strategist's Toolkit). The case would also be suitable for any course or module discussing disruptive innovation, business model change, organizational change, strategic planning, or resource allocation. The case highlights a female executive at the company.
There are change efforts, and there are change efforts. Edna Adan Ismail, referred to in the Western press as the Muslim Mother Teresa, created a small revolution when she founded the Edna Adan Maternity Hospital in Hargeisa, Somaliland. From securing buy-in and permissions from Siad Barre's government, acquiring land and struggling to keep it, and designing and constructing a new building, to educating a health care workforce, attracting physicians, and attending to the health care needs of a poor population, the case sets the stage for an analysis of change management. As Edna Adan Ismail feels the impact of globalization and the demands of global standards of care from the developed world, she faces some complex problems. How would she continue to add and improve hospital operations, educate the local population of health care providers and patients, and meet the objectives and standards of international actors? The material in this case presents complex problems around efforts to innovate and implement change on a grand scale.
David Brennan, CEO of AstraZeneca UK Limited (AZN), was passionate about bringing new medicines to patients. But the industry was transforming to one that featured less patent protection, more competition from generic drugs, stiffer government regulations, and decreased productivity in R&D. The strategy? Build a pipeline with new prescription drugs that were unique enough to provide a differentiated benefit to patients, grow the business globally, streamline the organization and increase efficiency, and build a culture of courage, creativity, and collaboration. Would the firm be able to provide a sustainable and consistent pipeline of new products-at lower cost, likely with fewer people? How might the firm average two new products to market each year? What areas of R&D should the company invest in, and what would the R&D transformation look like?
Strategy is complex, requiring clarity about organizational objectives as well as the variety of external forces-competitive, economic, and technological-that come into play. Ultimately, strategy is an integrative exercise. This technical note provides a concise basis for a comprehensive discussion of strategic concerns.
Can the return of its founding CEO turn a lagging Starbucks around? Howard Shultz must map a strategy that addresses the company's decreasing sales and perhaps too rapid growth. Had the previous CEO's efforts to streamline operations compromised the Starbucks experience or was a changing economy to blame? Schultz considers whether to close existing stores, slow U.S. growth while expanding overseas, and improve the customer experience, which he believed had eroded the company's value proposition.