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Global Warming Revisited (B)
Is there statistical evidence of global warming? The B case presents the results of three different analyses that are representative of MBA students' work. The case series is effective in discussing the analysis of time-series data in the context of business analytics, predictive analytics, big data, or other similar courses. Given that the case is based on global warming-a phenomenon all students are undoubtedly aware of-it is eye-opening with respect to how incorrect data analysis can indeed "support" different points of view. -
Predicting Customer Churn at QWE Inc.
This field-based case is an efficient vehicle for exposing students to predictive analytics as applied to discrete events with logistic regression. The VP of customer services for a successful start-up wants to proactively identify customers most likely to cancel services or "churn." He assigns the task to one of his associates and provides him with data on customer behavior and his intuition about what drives churn. The associate must generate a list of the customers most likely to churn and the top three reasons for that likelihood. Although the name of the company and individuals are disguised, the data are real and adjusted by an unspecified constant so that all relationships are preserved. -
Predicting Customer Churn at QWE Inc. (SPREADSHEET)
Spreadsheet Supplement for UV6694 -
The Tale of Two Peregrines
Founded in 1980, Peregrine Financial Group, Inc. ("PFG") was incorporated in 1992 as a futures commission merchant in the USA and officially registered with the National Futures Association, specializing in commodities and foreign exchange futures brokerage services. In 2008 PFG was rebranded as PFGBest, it purported to have customers in more than 80 countries and more than US$600 million in customer assets by 2012. On 10 July 2012 PFG filed for Chapter 7 protection after its founder and chairman, Russell Wasendorf, Sr. attempted suicide. In his suicide note, he described his fraudulent act of embezzled as much as US$220 million from PFG's bank accounts in the past 20 years. He admitted that his ego was too big to admit failure and so he cheated. A totally unrelated company Peregrine Investment Holdings Limited ("PIHL") was founded in 1988 by former Citibankers Philip Tose and Francis Leung who were backed by many of Hong Kong's business elites. It was "Asia's only indigenous investment bank" and took prominent roles in the local bourses. PIHL underwrote a US$265 million bond issue by Steady Safe, an Indonesian transportation company, which collapsed by the end of 1997. In January 1998 PIHL was forced into liquidation after it lost all liquidity and failed to get white knights or emergency relief from the Hong Kong Monetary Authority. A report commissioned by the Hong Kong Government cited poor risk management and flawed internal control as the causes for the downfall of PIHL. . -
Shriners Hospitals for Children
A large, international benevolent association operating 22 children's hospitals and four research centres in three countries has been negatively impacted by a number of external factors. The effect of the 2008 global financial crisis on its endowment funds coupled with rising health care costs and flat donations, have resulted in the hospitals running at a loss. To ensure the long-term viability of their not-for-profit hospital system, management feels it must present drastic options to delegates at its annual general meeting, including reconsidering the policy of providing free medical care to children regardless of their ability to pay, shutting down research facilities and closing over a quarter of their hospitals. While management is confident that the quality of care for pediatric patients will not be compromised, all of the options being considered will significantly impact hospital operations and the organization's culture. For the first time in the 87 years of the organization's existence, some very difficult options are on the table. -
Shriners Hospitals for Children
A large, international benevolent association operating 22 children’s hospitals and four research centres in three countries has been negatively impacted by a number of external factors. The effect of the 2008 global financial crisis on its endowment funds coupled with rising health care costs and flat donations, have resulted in the hospitals running at a loss. To ensure the long-term viability of their not-for-profit hospital system, management feels it must present drastic options to delegates at its annual general meeting, including reconsidering the policy of providing free medical care to children regardless of their ability to pay, shutting down research facilities and closing over a quarter of their hospitals. While management is confident that the quality of care for pediatric patients will not be compromised, all of the options being considered will significantly impact hospital operations and the organization’s culture. For the first time in the 87 years of the organization’s existence, some very difficult options are on the table. -
The Gallery Project
A young entrepreneur is considering options for starting an art dealership. Everyone has some commonsense knowledge of what an art gallery is, yet very few have realized how competitive the art market is and what it takes to succeed in that industry. The price of a painting can be anywhere between $50 and $500,000, and that price typically does not depend on the objective properties of the artwork itself. This is where the art dealer plays an important role. The budding entrepreneur has to make strategic decisions regarding which segment of the art market to serve (high or low brow?), where to start his business (mid-size hometown or large city?), how to deliver the art to market (by opening a traditional art gallery, by partnering with retail locations such as restaurants to put the artworks on display or by organizing temporary exhibitions in rented spaces) and whether he should ally with a local arts collective. -
The Gallery Project
A young entrepreneur is considering options for starting an art dealership. Everyone has some commonsense knowledge of what an art gallery is, yet very few have realized how competitive the art market is and what it takes to succeed in that industry. The price of a painting can be anywhere between $50 and $500,000, and that price typically does not depend on the objective properties of the artwork itself. This is where the art dealer plays an important role. The budding entrepreneur has to make strategic decisions regarding which segment of the art market to serve (high or low brow?), where to start his business (mid-size hometown or large city?), how to deliver the art to market (by opening a traditional art gallery, by partnering with retail locations such as restaurants to put the artworks on display or by organizing temporary exhibitions in rented spaces) and whether he should ally with a local arts collective. -
TENCENT: EXPANDING FROM CHINA TO THE WORLD
China, an internet walled garden, has offered opportunities to its home-bred companies to thrive. These local internet companies, which earned their initial success mostly by cloning their Western counterparts in fulfilling the needs of the country's demanding internet users, are insulated from the rest of the virtual world. Among these local internet companies, Tencent is the most successful one. A listed company on the Hong Kong Stock Exchange since 2004, Tencent's 2011 annual report recorded revenue of RMB25.8 billion with an almost 40% profit margin. Its 845 million active user accounts have wide penetration to the 538 million internet users and 1.05 billion mobile users. After achieving sustainable success in China's internet market, Tencent has its eyes on the world. But as a company nurtured by the walled-garden environment, how can it make its way outside of its comfort zone? What does it have to offer to the global market, with its pockets of look-alike internet services, that the rest of the world is not deprived of? Will Tencent be able to globalise? -
Comprosa
Jose Angel Medina, had previously been involved in many turnarounds; this one was different. Comprosa, a Spanish manufacturer of packaging films, had a long history of success but had recently fallen on tough times due to decisions made by the CEO in his attempt to find a buyer for the company coupled with the financial crises in Europe in 2008. Medina, a turnaround professional, had been brought in to save it. In March, 2009, eight months after taking charge, the situation had stabilized but the company had not shown profits. As Comprosa reached breakeven, Medina reflected on how to continue to drive up the company profits. Their markets were mature and powerful Indian and Chinese competitors had achieved economies of scale that Comprosa could never reach. Tired and exhausted he needed to implement with urgency a plan to finalize the turnaround. After determining that the business was worth saving and stablizing the cash situation, Medina takes a number of steps to bring the company quickly back to break even. Now he is faced with determining what steps to take to get the company back to solid profitability. -
ITC Limited's Dairy Development Initiative: Corporate Social Responsibilty or Shared Value?
In June 2012, ITC Limited, an Indian conglomerate recognized globally for its sustainability initiatives, was deliberating on how to apply its model of inclusive growth to a new initiative in dairy farming. Known for its expertise in creating innovative business models, ITC had created shared value for societies, businesses and shareholders by leveraging synergies across businesses. However, the expertise required in dairy farming was unexplored, logistical issues loomed large and a lack of clarity surrounded the dairy development's integration with existing ITC businesses. Because of the complexities involved in diversifying and expanding to a new sector, ITC's chairman and his leadership team wondered whether they could once again create shared value. -
Women and Children First on the Titanic
The sinking of the Titanic in April 1912, with more than 1,500 lives lost, can be used to conduct interesting statistical analyses. Demographic information on the passengers includes age, gender, passenger class and point of embarkation. Both crosstabulations and logistic regression tables based on an available dataset provide interesting results about gender and class distinctions in place at that time in history. -
Loblaw Inc. and Rana Plaza
A business professor who teaches sustainability must decide whether to sell his shares in the Canadian company, Loblaw Inc., after learning that the company produced garments for its clothing line in a Bangladeshi garment factory that collapsed, killing 1,127 workers. -
ITC Limited's Dairy Development Initiative: Corporate Social Responsibility or Shared Value?
In June 2012, ITC Limited, an Indian conglomerate recognized globally for its sustainability initiatives, was deliberating on how to apply its model of inclusive growth to a new initiative in dairy farming. Known for its expertise in creating innovative business models, ITC had created shared value for societies, businesses and shareholders by leveraging synergies across businesses. However, the expertise required in dairy farming was unexplored, logistical issues loomed large and a lack of clarity surrounded the dairy development’s integration with existing ITC businesses. Because of the complexities involved in diversifying and expanding to a new sector, ITC’s chairman and his leadership team wondered whether they could once again create shared value. -
Loblaw Inc. and Rana Plaza
A business professor who teaches sustainability must decide whether to sell his shares in the Canadian company, Loblaw Inc., after learning that the company produced garments for its clothing line in a Bangladeshi garment factory that collapsed, killing 1,127 workers. -
Five Hole for Food: Entrepreneurial Strategy
The founder of a non-profit organization that ran a cross-country ball hockey tournament in support of Food Banks Canada had to discuss the future of the organization with his team as it headed into its third year of operations. Foremost in his mind were questions about whether to continue Five Hole for Food as it had run for the first two years — organized exclusively on social media, managed completely by volunteers and funded by sponsorship donations — or else restructure it as a more formal organization, either independently or under the corporate social responsibility umbrella of a large corporation. The founder also faced serious challenges in assembling and organizing his management and operations teams: as the organization continued to grow, relying only on volunteer labour was going to become increasingly problematic. But if he started hiring and paying people for their time, would that change the organic nature of Five Hole for Food’s culture? He also wondered whether he should start to formalize the structure of the organization more, so it was less dependent on him as an individual. Could Five Hole for Food, which had raised over 50,000 pounds of food in its first two seasons, ever continue without him at the helm? -
Five Hole for Food: Entrepreneurial Strategy
The founder of a non-profit organization that ran a cross-country ball hockey tournament in support of Food Banks Canada had to discuss the future of the organization with his team as it headed into its third year of operations. Foremost in his mind were questions about whether to continue Five Hole for Food as it had run for the first two years - organized exclusively on social media, managed completely by volunteers and funded by sponsorship donations - or else restructure it as a more formal organization, either independently or under the corporate social responsibility umbrella of a large corporation. The founder also faced serious challenges in assembling and organizing his management and operations teams: as the organization continued to grow, relying only on volunteer labour was going to become increasingly problematic. But if he started hiring and paying people for their time, would that change the organic nature of Five Hole for Food's culture? He also wondered whether he should start to formalize the structure of the organization more, so it was less dependent on him as an individual. Could Five Hole for Food, which had raised over 50,000 pounds of food in its first two seasons, ever continue without him at the helm? -
The Social Economy and the Traditional Market: The Dilemma of Justa Trama
This case is about Justa Trama, a network created in 2005 in Porto Alegre, Brazil, composed of six organizations working in different fields across Brazil. The network involves a complete production chain of clothing and accessories made from organic cotton, from planting to the consumer. This network employs more than 700 workers and its primary goal is the elimination of all intermediaries in the production and commercialization process. The main dilemma is how to reconcile the different members' views on the commercialization process by creating alternative strategies to grow and increase profit without compromising the social economy principles. -
The Manager's Job at BP: Decision Making and Responsibilities on the High Seas
Based on public documents, the case revisits the recent history of the world's fourth largest company, BP p.l.c. The events described confront students with some of the challenging situations top managers face when corporate reputation and performance are at stake. Two issues in particular are addressed: first, the Gulf of Mexico oil spill caused by the Deepwater Horizon explosion in April 2010; and, second, BP's "beyond petroleum" corporate development and rebranding strategy. These two interwoven storylines contrast BP's efforts at building a "green" reputation with the inherent environmental and social risks of the oil industry. Each storyline offers a unique perspective on the British oil major, while focusing on the central topics of corporate responsibility and decision making in complex situations, whether short term (oil spill) or long term ("beyond petroleum"). The case is presented from the point of view of Steve, a fictional executive assistant of former BP CEO Tony Hayward. -
Governance and Sustainability at Nike (A)
Two members of Nike's executive team must decide what sustainability targets to propose to Nike's CEO and to the corporate responsibility committee of Nike's board of directors. Set in 2012, the case traces the evolution of Nike's approach to environmental and social concerns from its origins in student protests against labor conditions in the supply chain in the 1990s through the development of a board-level corporate responsibility (CR) committee in 2001 to the creation of the Sustainable Business & Innovation (SB&I) strategy in 2009. In this context, Hannah Jones, Nike's VP of SB&I, and Eric Sprunk, VP of Merchandising & Product, are working to finalize the company's next round of sustainability targets for presentation to the CR committee. When Nike signs on to the Roadmap to Zero, a Greenpeace-inspired initiative to eliminate the discharge of toxic chemicals into the water supply by 2020, the company's target-setting process becomes more complex. Jones and Sprunk must decide whether to recommend that Nike dial back other sustainability goals to meet the zero toxics challenge, modify its commitment to zero toxics, or find another solution.