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ASML and the Geopolitics of Chip Manufacturing: Balancing Strategic and Political Pressures
ASML Holding NV (ASML) was a leading technology company headquartered in the Netherlands that specialized in the design and production of advanced semiconductor manufacturing equipment. It had a global presence, with operations in Asia, Europe, and North America. Its unique chip manufacturing technology was essential for the development of technology products from military equipment and laundry machines to the smartphones in peoples’ pockets. ASML produced complex and consequential products that were the foundations of the modern economy. Because of this, ASML played a significant role in global geopolitics and found itself in the middle of the West’s increasing efforts to control exports of semiconductor technology to China. In December 2022, a couple of months after the US government unilaterally restricted exports of chip technology to China, ASML faced a strategic crossroads: should it maximize company profits and ignore Western policy by engaging China, or should it weigh the pitfalls of ignoring the West’s political decision to block China from essential technology and disengage from its business with the People’s Republic of China? -
Should Dangote Farming Exit the Tomato Paste Market?
In July 2021, a major supply-side crisis in Nigeria forced the Dangote Tomato Processing Co. Limited plant of Dangote Farming to operate at just 20 per cent of its production capacity. Since its inception in 2016, the plant was shut down several times due to a shortage of fresh tomatoes of the required quality. Although the Nigerian government supported Dangote Farming by pursuing pro-tomato and pro-tomato-paste policies, it was unable to operate its processing plant at full capacity, reduce per-unit cost, and improve profitability. Due to various constraints, several tomato processing plants had exited the Nigerian market in the past several years. In view of persistent supply-side problems and tough competition from low-priced Chinese tomato paste, Dangote Farming needed to decide about the continuity of its tomato processing plant in the Nigerian market. If it decided to remain in the market, then it needed to devise strategies that could make the plant competitive and profitable. -
Options Pregnancy Centre: Too Many Options?
In December 2021, the director of Options Pregnancy Centre (Options) was challenged with determining how to expand the services offered by the organization in its Montreal, Quebec, community, as the need to support women who planned to carry their pregnancies and pursue parenting was becoming more acute. Options already offered counselling, grief and loss support, and a variety of parenting programs; it also facilitated required medical services and provided opportunities for pregnant teens to live with host families on either short- or long-term bases. The organization occasionally had opportunities to develop its own residential program. Doing so would mean shifting its strategy from providing services on a non-residential basis to having its own residential program. Should Options expand its current non-residential programs? Should it more actively recruit families who were willing to take pregnant teenagers into their homes for short periods of time? Should it take the bold step of making an offer on a residential building that was currently available? The director recognized that it would be necessary to carefully prioritize Options’ programming to ensure that it could secure the resources it needed to run effective programs. -
ZGM: Balancing Culture and Productivity at a Service Company
The partners at ZGM Modern Marketing were pleased with their growth and progress of working within the highly competitive marketing industry and had confidence in their team of skilled employees supporting the company’s success. But they also knew a good thing never lasts forever and had to continually strategize to stay ahead of the competition. While the partners were used to being very hands-on with the day-to-day management of people, ZGM had grown to a point where it was becoming difficult to juggle all aspects of the business without adding specialized resources. Bringing on non-billable people such as the new HR Director puts a strain on the profitability of a company. The challenge was how to maximize the value of these new resources. -
Action Education: A Customer-First Strategic Change
Founded in 2006, Shanghai Action Education Technology Co., Ltd. (Action Education), a provider of management training services for small and medium-sized private enterprises, was the first listed management education company in China. In 2014, due to the fierceness of the market competition and the splitting of the top management team, Action Education changed their strategy from a product-oriented one to customer-oriented one and repositioned themselves as a “world-class practical business school.” This strategic change not only helped Action Education win the recognition and loyalty of their customers but enhanced the company’s profitability and management ability. However, with the COVID-19 pandemic in 2020 and rising consumer demand, Action Education faced increasing pressure. Li Jian, the chair of Action Education, is considering two paths with different customer value focuses: should he add a consulting business unit and provide one-stop services for customers or standardize the company’s management training services and improve their quality and delivery? -
Should Dangote Farming Exit the Tomato Paste Market?
In July 2021, a major supply-side crisis in Nigeria forced the Dangote Tomato Processing Co. Limited plant of Dangote Farming to operate at just 20 per cent of its production capacity. Since its inception in 2016, the plant was shut down several times due to a shortage of fresh tomatoes of the required quality. Although the Nigerian government supported Dangote Farming by pursuing pro-tomato and pro-tomato-paste policies, it was unable to operate its processing plant at full capacity, reduce per-unit cost, and improve profitability. Due to various constraints, several tomato processing plants had exited the Nigerian market in the past several years. In view of persistent supply-side problems and tough competition from low-priced Chinese tomato paste, Dangote Farming needed to decide about the continuity of its tomato processing plant in the Nigerian market. If it decided to remain in the market, then it needed to devise strategies that could make the plant competitive and profitable. -
ASML and the Geopolitics of Chip Manufacturing: Balancing Strategic and Political Pressures
ASML Holding NV (ASML) was a leading technology company headquartered in the Netherlands that specialized in the design and production of advanced semiconductor manufacturing equipment. It had a global presence, with operations in Asia, Europe, and North America. Its unique chip manufacturing technology was essential for the development of technology products from military equipment and laundry machines to the smartphones in peoples' pockets. ASML produced complex and consequential products that were the foundations of the modern economy. Because of this, ASML played a significant role in global geopolitics and found itself in the middle of the West's increasing efforts to control exports of semiconductor technology to China. In December 2022, a couple of months after the US government unilaterally restricted exports of chip technology to China, ASML faced a strategic crossroads: should it maximize company profits and ignore Western policy by engaging China, or should it weigh the pitfalls of ignoring the West's political decision to block China from essential technology and disengage from its business with the People's Republic of China? -
Action Education: A Customer-First Strategic Change
Founded in 2006, Shanghai Action Education Technology Co., Ltd. (Action Education), a provider of management training services for small and medium-sized private enterprises, was the first listed management education company in China. In 2014, due to the fierceness of the market competition and the splitting of the top management team, Action Education changed their strategy from a product-oriented one to customer-oriented one and repositioned themselves as a "world-class practical business school." This strategic change not only helped Action Education win the recognition and loyalty of their customers but enhanced the company's profitability and management ability. However, with the COVID-19 pandemic in 2020 and rising consumer demand, Action Education faced increasing pressure. Li Jian, the chair of Action Education, is considering two paths with different customer value focuses: should he add a consulting business unit and provide one-stop services for customers or standardize the company's management training services and improve their quality and delivery? -
Options Pregnancy Centre: Too Many Options?
In December 2021, the director of Options Pregnancy Centre (Options) was challenged with determining how to expand the services offered by the organization in its Montreal, Quebec, community, as the need to support women who planned to carry their pregnancies and pursue parenting was becoming more acute. Options already offered counselling, grief and loss support, and a variety of parenting programs; it also facilitated required medical services and provided opportunities for pregnant teens to live with host families on either short- or long-term bases. The organization occasionally had opportunities to develop its own residential program. Doing so would mean shifting its strategy from providing services on a non-residential basis to having its own residential program. Should Options expand its current non-residential programs? Should it more actively recruit families who were willing to take pregnant teenagers into their homes for short periods of time? Should it take the bold step of making an offer on a residential building that was currently available? The director recognized that it would be necessary to carefully prioritize Options' programming to ensure that it could secure the resources it needed to run effective programs. -
ZGM: Balancing Culture and Productivity at a Service Company
The partners at ZGM Modern Marketing were pleased with their growth and progress of working within the highly competitive marketing industry and had confidence in their team of skilled employees supporting the company's success. But they also knew a good thing never lasts forever and had to continually strategize to stay ahead of the competition. While the partners were used to being very hands-on with the day-to-day management of people, ZGM had grown to a point where it was becoming difficult to juggle all aspects of the business without adding specialized resources. Bringing on non-billable people such as the new HR Director puts a strain on the profitability of a company. The challenge was how to maximize the value of these new resources. -
Feel the churn: Exercising talent management practices to support a climate for career mobility
The rise of employee mobility over the past few decades has significant implications for both organizational performance and individual careers. The traditional organizational response aims to combat turnover with increased retention efforts, but we offer an alternative strategy. In this article, we suggest that organizations also support employee mobility by proactively implementing practices that prepare workers for the next step in their career, whether that be internal or external from the company. When strategically combined, these practices can support a climate for career mobility. Drawing on extant management literature and industry publications, we demonstrate how organizations can create and support a climate for career mobility via workforce planning, job design, recruiting, onboarding, offboarding, and total rewards. Taken together, a strategic bundle of practices allows employers to support the careers of mobile workers as well as advance the goals and performance of the organization. -
How business pivots during war: Lessons from Ukrainian companies' responses to crisis
This article explores how large companies in Ukraine have been responding to the crisis caused by the war. We find that the core theories of managerial reaction to crisis-the threat-rigidity and contingency theories-aptly describe companies' responses to the war, with the first theory explaining companies' initial reactions, and the latter theory explaining the subsequent behaviors of companies as the war continued. The most surprising findings here were the value of the pandemic as an experience in dealing with war, and the way in which, when war becomes the new normal, managers seek to take advantage of opportunities to build resilience and redundancy. The shift in perception and attitude this entails exemplifies the adaptability companies display in the face of such difficult situations as a full-fledged war. Our research yields four suggestions for managerial responses to crises: (1) view every crisis as a learning opportunity in preparation for future crises, (2) use business continuity plans as a means of reducing initial threat-rigidity reactions, (3) prioritize crucial over nonrelevant corrective actions, and (4) recognize that crisis-generated discontinuities may last longer than expected, thereby requiring long-term plans that respond both to emerging threats and to novel opportunities. -
To Adapt During Crisis, Take a Lesson From Jazz
What will inspire your team to gain agility during a grave crisis? A multiyear study of two prominent orchestras during the pandemic revealed three critical leadership practices to help teams transform. One key: Leaders need to think more like jazz musicians. Executives in any industry can apply these practices during their organization’s next disruption. -
Tata Motors: Challenges for the Electric Vehicle Market Leader
Tata Motors Limited (TM), a subsidiary of Tata Sons Pvt. Ltd., was the market leader in the passenger electric vehicle (EV) segment in India. Natarajan Chandrasekaran, chair of Tata Sons, was pleased with the work of Shailesh Chandra who, as managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility (TPEM), had been instrumental in TM's successful turnaround. Chandrasekaran wanted Chandra and his team to capitalize on the robust demand for passenger EVs in India to reach 25 per cent of TM's total sales by 2029, up from 8 per cent in December 2022. However, attaining it was not easy because he would face an onslaught from multiple competitors that would threaten TM's existing market share. To enable TM to maintain its leadership position in this segment in India and to grow over time, Chandra and his team had to ensure they correctly assessed the passenger EV industry's competitive forces. From this analysis, Chandra would then have to evaluate his competitors' strategies and formulate TM's defence and growth plans. -
Airtel: Create a New Brand or Use Existing Ones?
Niraj Sharma, Director of Marketing at Airtel, located in India, and his team prepared to launch India's first telecom convergence product - a single telecom plan that provided mobile, paid TV, and WiFi services under one bill plan. Telecom convergence was expected to be the next big battle against the deep-pocket competitor Jio Telecom. In January 2023, there were three branding options on the table: positioning this convergence plan as a premium offering under the current Airtel brand; using the Airtel Xstream brand; or launching an entirely new brand - Airtel Black that encompassed Airtel mobile and Airtel Xstream services. The company wanted to drive its business growth across different products, including the proposed convergence. -
The Business Value of Gamification
This article analyzes the connection between gamification and business success, focusing on customer retention, new customer acquisition, and transforming user perceptions. Based on a qualitative comparative analysis of 40 high-profile gamification projects, it shows that a combination of three key features-virtualization, social comparison, and tangible rewards-explain the various pathways to success. Each pathway requires the presence-and sometimes absence-of different design features, and firms do best when they focus on one or two objectives rather than all three at once. The article presents a framework for designing and implementing gamification more strategically and effectively, noting the ethical questions that arise. -
The Agility Myth
The Agile Manifesto offered a philosophy for accomplishing technical work efficiently; The Agile Enterprise builds on the previous text and outlines how to apply Agile concepts throughout an organization. Filled with real-world examples, this book will show students how to break large problems down into smaller, manageable ones; assist managers in finding their value with self-managing teams; and help executives track and recognize success in their businesses. Several methodologies are outlined to help teams operationalize Agile ideas. Organizations should adapt these methodologies to their own circumstances and remember that, with Agile, individuals and interactions are the key, not tools and processes. Chapter 1 introduces the concept of agile businesses and explains how most organizations are not agile because of the difficulty of developing cohesion between the various teams, such as the marketing, engineering, and human resources teams. To become agile, businesses must first examine various executives' differing goals and measures for success; customer satisfaction is ultimately the common objective among leaders. Agile companies are able to recognize when they are not addressing their customers' problems well and are then able to pivot; companies that are unable to do this will face growth issues even after being a successful startup. Change in processes, culture, and personnel may need to happen to increase company agility. Managers should create processes to fit the business's needs. -
Brief Tour of Agile Software Development
The Agile Manifesto offered a philosophy for accomplishing technical work efficiently; The Agile Enterprise builds on the previous text and outlines how to apply Agile concepts throughout an organization. Filled with real-world examples, this book will show students how to break large problems down into smaller, manageable ones; assist managers in finding their value with self-managing teams; and help executives track and recognize success in their businesses. Several methodologies are outlined to help teams operationalize Agile ideas. Organizations should adapt these methodologies to their own circumstances and remember that, with Agile, individuals and interactions are the key, not tools and processes. Chapter 2 outlines the Agile Manifesto and its main principles, which offers a new approach to software development. Differing from the popular Waterfall approach, the Agile approach to delivering working software focuses on communication and collaboration with other programmers and customers over a cycle of documentation and written specifications. However, this does not mean that process should be eliminated; it simply means that process should be balanced with communication. Different Agile methodologies are described, including Scrum and XP. Each methodology has its own strengths and weaknesses, and teams can use the aspects of each method that work best for them. Simply implementing an Agile methodology is more important than the chosen methodology itself. -
Holistic Challenges of Agile
The Agile Manifesto offered a philosophy for accomplishing technical work efficiently; The Agile Enterprise builds on the previous text and outlines how to apply Agile concepts throughout an organization. Filled with real-world examples, this book will show students how to break large problems down into smaller, manageable ones; assist managers in finding their value with self-managing teams; and help executives track and recognize success in their businesses. Several methodologies are outlined to help teams operationalize Agile ideas. Organizations should adapt these methodologies to their own circumstances and remember that, with Agile, individuals and interactions are the key, not tools and processes. Chapter 3 describes how Agile can be applied to departments other than software development. Some Agile methodologies, such as XP, cannot cross over to nontechnical use, but Scrum can be used by nontechnical teams. A case study using an Agile approach to hiring is offered. One main aspect of Agile is chunking work into smaller tasks that are able to be accomplished quickly; this allows for the concept of failing fast-if an idea does not work out in a short timespan, it does not cause too much pain, and there is still the capacity to change direction. Teams should avoid focusing too much on Agile methodologies and focus on Agile principles instead. Transitioning to an Agile mentality will require senior management support; leaders should work with teams to create processes that best fit their needs. -
The Dirty Secret of Agile
The Agile Manifesto offered a philosophy for accomplishing technical work efficiently; The Agile Enterprise builds on the previous text and outlines how to apply Agile concepts throughout an organization. Filled with real-world examples, this book will show students how to break large problems down into smaller, manageable ones; assist managers in finding their value with self-managing teams; and help executives track and recognize success in their businesses. Several methodologies are outlined to help teams operationalize Agile ideas. Organizations should adapt these methodologies to their own circumstances and remember that, with Agile, individuals and interactions are the key, not tools and processes. Chapter 4 explores a few practical challenges of Agile. The most common challenge is starting a sprint without adequately understanding the targeted stories. These sprints are not shortcuts to building better software in a short amount of time; rather, successful sprints need discovery. Sprints tend to fail when teams underestimate the complexity of stories. While Agile has surpassed the Waterfall approach, there are still aspects of the Waterfall approach that businesses can learn from, such as how the upfront study considers every aspect of the system. Exploration teams are needed to research potential projects; these teams must have senior-level employees who are typically in high demand, so funding for a permanent exploration team is ideal.