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An Inside Perspective on Carbon Disclosure
Part of the underlying vision of CDP (formerly the Carbon Disclosure Project) is to enhance firms' climate change strategies by encouraging them to measure their emissions and corresponding risks and opportunities. Drawing on interviews with 38 firms in seven countries that participated in CDP, we found that the benefits firms experience from the measurement and disclosure process are more diverse in nature than expected. They can be both operational and strategic, and internal as well as external. From our analysis of the firms' experiences, we draw several implications for managers. First, managers should beware of various biases that may inhibit investments in profitable emission reduction opportunities. Second, participating in a disclosure-oriented process can be beneficial, even for a firm that ultimately decides not to disclose. Third, when disclosing greenhouse gas-related information, managers need to address multiple groups of stakeholders, not just investors. Fourth, when searching for emission reduction opportunities and in organizing the disclosure process, managers should not neglect opportunities that exist elsewhere in the supply chain. -
An Integrated Approach to Managing Extended Supply Chain Networks
In an effort to improve their competitive position in a rapidly changing marketplace, many companies have replaced their traditional supply chains with extended supply chain networks built on a foundation of supply chain collaboration. These extended networks require the use of decision support tools and technologies to improve both operating efficiencies and customer service, but many companies have struggled to realize the expected benefits of these tools and the increased collaboration. This article recommends that companies adopt an integrated strategy of people, processes, and technology to achieve their competitive supply chain goals. Our recommendation is backed by the results of a survey we conducted of senior-level practitioners concerning the importance and challenges of supply chain collaboration. The article concludes with a set of managerial recommendations to improve a company's collaborative efforts within its supply chain. -
What Happened to Civility? Understanding Rude Behavior Through the Lens of Organizational Justice
The ability to have polite conversation between individuals who disagree with one another seems to be a rare occurrence today. Organizational justice theory may help explain why rude behavior seems so prevalent and whether the rudeness in politics and society creates a polarized environment that could impact the workplace. Three recent legal decisions concerning healthcare, same-sex marriage, and the Michael Brown case, along with three workplace examples of deliberate rudeness, are examined to analyze the polarization of opposing viewpoints and the incivility that resulted from these situations. When a decision is viewed as a win-lose situation and people perceive the decision process as unfair, losers in the decision may feel threatened and react by engaging in deviant behavior that is uncivil. Winners may also engage in behavior that is uncivil and intolerant of opposing viewpoints. The result is a cycle of incivility that may include character assassination, protests, and a diminished willingness to compromise. Managers should be cognizant of the dangers of rude behavior and create a workplace environment that counters productivity interference caused by incivility and inability to compromise. I suggest specific steps to help stop workplace incivility before it starts. -
TTTech in 2017: When Market and Technology Trends Align with Company Capabilities
For 20 years, TTTech had honed its innovative suite of technology solutions, developing cutting-edge products for customers such as Audi, General Electric, Cisco, Boeing, Airbus, and HYDAC International. Yet the two cofounders were perhaps even more excited by a confluence of market and technology trends in TTTech's favor-trends that aligned perfectly with TTTech's products and capabilities. One of the most pronounced tailwinds was the race towards fully autonomous vehicles. Within the industry, there was growing consensus that cars would become fully autonomous in the next decade or two. Given the complexity associated with developing the networks and electronic systems that would enable autonomous vehicles, manufacturers looked to companies like TTTech to provide the underlying technology needed to turn this vision into a reality. Yet the trend towards increasingly complex electronic systems was not restricted to the automotive industry. Across every industry, physical devices, machines, vehicles, and buildings were becoming embedded with electronics that allowed for the collection and exchange of data, all of which enhanced automation. Against this backdrop, Kopetz and Poledna believed that TTTech could reach more than $200 million in revenue by 2020. Yet achieving this success would not be without its challenges. TTTech would have to align itself with the right strategic and financial partners, continue to hire top managerial talent, and compete in multiple industries, each of which had its own set of unique regulations and standards. TTTech was in a strong position to achieve explosive growth, yet Kopetz and Poledna would have to navigate several hurdles in order to realize that growth. -
Mismanagement of Fiscal Policy: Greece's Achilles' Heel
In December 2016, the debt-stricken Greek government announced the distribution of a sizeable “Christmas gift” to its low-income pensioners, a one-time bonus that would cost the government €617 million. This cost was in addition to suspending increases in the value-added tax on some Greek islands. These plans were in clear violation of the terms of a bailout provided to Greece by Eurozone nations in 2015, which required Greece to implement austerity measures and achieve specific fiscal targets. What was the reason for Greece’s economic troubles and why did Greece’s debt-to-GDP (gross domestic product) ratio climb to its current three-digit figure? Faced with an imminent exit from the Eurozone, how could the country’s government solve Greece’s longstanding fiscal problems? -
RoboTech: Storming into the U.S. Market
The RoboTech case describes the challenges facing the CEO of a small, Singapore-based industrial robotics company that decides to diversify away from its core industrial robot business by leveraging its expertise into the medical-devices industry. It launches an innovative product (a specialized surgical robot) in an unfamiliar market segment (spinal surgery) and decides to enter the unfamiliar, distant U.S. healthcare market, which is characterized by rapid technological change and intense competition with large, established competitors. RoboTech's initial struggles with maintaining product supply and customer support are also complicated by regulatory pressures and shifting reimbursement rates. The case illustrates the strategic and organizational pressures that result from facing numerous unanticipated pressures in a company that lacks the resources, capabilities, and management experience to deal with them. Although the case was developed for courses in international management/international business, it is also well suited to courses in strategy, technology management, and general management. -
Linkfluence: Building on ActSocial's Relationships
Founded in 2008 in Singapore and China, ActSocial was a social marketing company that initially provided brands with word-of-mouth (WOM) marketing services. The firm then adjusted its model to focus on providing online social media and digital content marketing services. After significant success from 2013 to 2015, ActSocial was fully acquired by Linkfluence, a leading global social media monitoring and research company. As part of this larger company, the new leadership team at Linkfluence Asia now needed to decide how to proceed and wondered if they would have influence over the direction of their product, hiring decisions, team-building, and growth plans. -
Canadian Pacific Railway (A): Border Skirmish or Nuclear Winter?
In early 2012, the chair of the board of directors of Canadian Pacific Railway (CP) had to determine how to respond to demands made by the company's largest shareholder, Pershing Square Capital Management (Pershing), an activist hedge fund. Pershing's chief executive officer (CEO) claimed that CP was underperforming, and expressed his desire to replace two board members and appoint a new CEO. The chair of the board of directors had to determine the best means to fight the proxy battle and serve the interests of shareholders. Pershing was not likely to back down easily. With a shareholders' meeting expected to occur in the next few months, the chair had to resolve the matter quickly. Because shareholder activism was relatively new in Canada, the outcome of this conflict would send a message to other activists interested in Canadian organizations. -
Canadian Pacific Railway (B): CP Rising
Supplement to case W17568. -
Canadian Pacific Railway (C): The Final Hours
Supplement to case W17568. -
OrganiGram:Navigating the Cannabis Industry with "Grey Knowledge"
OrganiGram Holdings Inc. (OrganiGram), a New Brunswick-based company, was a licensed producer of medical cannabis in Canada. On April 20, 2016, the Canadian government announced that legislation to legalize recreational cannabis would be introduced in the spring of 2017 with the intention of having it become law in the spring of 2018. The announcement triggered expansion activities at all of Canada’s largest licensed producers of cannabis. However, there were many unknowns in terms of how the legalization of recreational cannabis would happen. What would the timeline be? Who would be allowed to grow cannabis? In anticipation of regulatory changes, OrganiGram needed to analyze the Canadian cannabis industry and engage in a scenario-planning exercise. How could OrganiGram move through this time of uncertainty, while both creating a strategy for the anticipated recreational cannabis market and continuing to work on its medical cannabis sales? -
FJ Management Inc.
In late 2015, Crystal Call Maggelet, president and CEO of FJ Management, is working with her investment committee to help set the company's strategic direction. Maggelet, daughter of the company's founder, has led FJ Management since 2009 when she stepped in as CEO following an unexpected bankruptcy. At that time, FJ Management was known as Flying J. Flying J owned and operated hundreds of truck stops-which it called Travel Plazas-nationwide and was a growing multi-billion dollar business, but broader problems in the oil and credit markets in late 2008 forced it to declare Chapter 11 bankruptcy. Maggelet, who had been serving on Flying J's board, became its new CEO and was able to successfully manage competing stakeholder demands, keep the business running, and ultimately paid back every dollar it owed to its creditors by selling the company's core assets-its travel plazas-to its main competitor in 2010. Since that time, the company had returned to a healthy financial position, diversified its holdings, and made investments in diverse industries to determine how to grow the company, since renamed FJ Management. In 2015, Maggelet now wants to set a clear path forward for the company. -
StartUpValley: Platform Strategy in Equity Crowdfunding
In 2012, after the U.S. government passed the Jumpstart Our Business Startups (JOBS) Act, the founder of Hudson Integrated, a website development company, decided to launch StartupValley, an equity crowdfunding company focused on the Title III provisions of the JOBS Act. These provisions allowed companies to solicit equity investments directly from small investors by using an intermediary registered with the U.S. Securities and Exchange Commission, consisting of either a broker–dealer or an approved funding portal. However, three years passed before all Title III regulations were finalized, and more than six months later, they came into effect. During that time, the market became crowded with both start-ups and established companies. In 2016, when the Title III provisions finally went into effect, the entrepreneur faced two key challenges. How should he position StartupValley for success in this new industry? And how should he balance his own time and resources between his existing web development business and the new venture? -
Gildan Activewear Inc. (A) - 2010
In the early 1990s, the company now known as Gildan Activewear was a small children's wear firm with revenues of $40 million. Its competition, legendary companies such as Russell, Fruit of the Loom, and Hanes, had sales in the billions of dollars. From its small beginnings and through unparalleled growth, Gildan went on to dominate most segments of the world's activewear market. This case presents the history of both the company and the industry, with an overview of major competitors. It systematically outlines Gildan's march toward domination, explaining not only how it built its position but also the in-house development of all its functions to strengthen that position. Finally, the case describes the strategic focus of the company as well as the values that motivate its managers. 2010 (Case A) The 2010 Gildan case (A) shows how a single company can influence industry leaders and dynamics and provides a classic example of the importance of the three pillars of strategic management: environment, internal management, and leadership. 2016 (Case B) The 2016 Gildan case (B) describes the situation in 2016. It can be used as a conclusion to the 2010 case for an interesting discussion of the social responsibility of a large company, or as a standalone case. -
Gildan Activewear Inc. (B) - 2016: Profitable and Socially Responsible
Supplement to case HEC175. In the early 1990s, the company now known as Gildan Activewear was a small children's wear firm with revenues of $40 million. Its competition, legendary companies such as Russell, Fruit of the Loom, and Hanes, had sales in the billions of dollars. From its small beginnings and through unparalleled growth, Gildan went on to dominate most segments of the world's activewear market. This case presents the history of both the company and the industry, with an overview of major competitors. It systematically outlines Gildan's march toward domination, explaining not only how it built its position but also the in-house development of all its functions to strengthen that position. Finally, the case describes the strategic focus of the company as well as the values that motivate its managers. 2010 (Case A) The 2010 Gildan case (A) shows how a single company can influence industry leaders and dynamics and provides a classic example of the importance of the three pillars of strategic management: environment, internal management, and leadership. 2016 (Case B) The 2016 Gildan case (B) describes the situation in 2016. It can be used as a conclusion to the 2010 case for an interesting discussion of the social responsibility of a large company, or as a standalone case. -
Growing Pains at Santropol Roulant, Part A: A New Beginning
This case examines the challenges faced by a grassroots non-profit struggling to carry out its mission and stabilize its finances in an increasingly competitive and demanding funding environment over a twenty-year period. It examines the issues faced by non-profits as they chart a course for growth despite precarious funding and divergent stakeholder expectations, examining the often difficult and paradoxical decisions that non-profit managers must make to ensure the survival of their organizations. Santropol Roulant (SR) is a small, community-based non-profit offering a meals-on-wheels service to individuals living with a loss of autonomy. Founded in 1995, SR's mission is to provide an important service to the community while enabling young people to gain valuable work and leadership experience. Despite numerous setbacks, many typical of those encountered by grassroots non-profits, SR managed to grow and thrive without compromising its "ethos" and happily celebrated its 20th anniversary in 2015. -
Growing Pains at Santropol Roulant, Part B: Sustaining and Disseminating the "Magic"
Supplement to case HEC183. This case examines the challenges faced by a grassroots non-profit struggling to carry out its mission and stabilize its finances in an increasingly competitive and demanding funding environment over a twenty-year period. It examines the issues faced by non-profits as they chart a course for growth despite precarious funding and divergent stakeholder expectations, examining the often difficult and paradoxical decisions that non-profit managers must make to ensure the survival of their organizations. Santropol Roulant (SR) is a small, community-based non-profit offering a meals-on-wheels service to individuals living with a loss of autonomy. Founded in 1995, SR's mission is to provide an important service to the community while enabling young people to gain valuable work and leadership experience. Despite numerous setbacks, many typical of those encountered by grassroots non-profits, SR managed to grow and thrive without compromising its "ethos" and happily celebrated its 20th anniversary in 2015. -
Growing Pains at Santropol Roulant, Epilogue
Supplement to case HEC183. This case examines the challenges faced by a grassroots non-profit struggling to carry out its mission and stabilize its finances in an increasingly competitive and demanding funding environment over a twenty-year period. It examines the issues faced by non-profits as they chart a course for growth despite precarious funding and divergent stakeholder expectations, examining the often difficult and paradoxical decisions that non-profit managers must make to ensure the survival of their organizations. Santropol Roulant (SR) is a small, community-based non-profit offering a meals-on-wheels service to individuals living with a loss of autonomy. Founded in 1995, SR's mission is to provide an important service to the community while enabling young people to gain valuable work and leadership experience. Despite numerous setbacks, many typical of those encountered by grassroots non-profits, SR managed to grow and thrive without compromising its "ethos" and happily celebrated its 20th anniversary in 2015. -
We Look Like Our Names
A team of researchers has discovered that we associate names with physical traits--and that we all subconsciously try to fit our name's stereotype. -
General Motors and the Chevy Cobalt Ignition Switch Crisis
It was Saturday, March 29, 2014, and Mary Barra, Chief Executive Officer (CEO) of General Motors (GM), was reading a letter of invitation from the families of Chevy Cobalt crash victims to meet with her the following week. The timing could not have been worse. Barra was scheduled to testify before the U.S. Congress on Tuesday, April 1st regarding the recalls of 2005-2007 model year Chevrolet Cobalts. Just the day before, on Friday, March 28th, GM had announced a third Chevy Cobalt recall. In total, 4.8 million vehicles worldwide had been recalled in connection with an ignition switch defect. There had been fatalities. It was Barra's 10th week on the job as GM's CEO. On February 7, 2014, just days before Barra had become CEO, GM had informed the National Highway Traffic Safety Administration (NHTSA) that a problem existed with the 2005-2007 model year Chevy Cobalt. GM stated in its report to the NHTSA that the problem appeared to be centered on the vehicles' ignition switch. The ignition switch's "torque performance" on these vehicles had not met GM's engineering specifications. The switches were easily jostled, and when jostled, the switches would sometimes move out of the "Run" position, causing the vehicle to stall. GM further explained that, depending on the timing of the switch moving out of the "Run" position, the airbags would not deploy. A vehicle stall, combined with the vehicle's airbags not deploying, had been a lethal combination. Following the first Cobalt recall in January 2014 and the NHTSA report in February, events had escalated rapidly. Lawyers across the U.S. had organized a class action lawsuit against GM. The U.S. Justice Department and the NHTSA had launched investigations. The media response had been hostile.