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Governance and Sustainability at Nike (B)
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. -
WALTER MEIER: JET INTERNATIONAL EXPANSION
Specifically he identified Brazil as an attractive new market for expansion. Success would hinge on developing the right market-entry strategy. To that end, four foreign market entry options were identified: 1) Greenfield company-owned distribution strategy; 2) Partner with a Brazilian master distributor; 3) Acquire or form a joint venture (JV) with a Brazilian tool distributor; 4) Acquire or form a joint venture with a Brazilian tool manufacturer. Quackenbos would have to sell a strategic vision for growth that was not resource-intensive - a challenge for a mid-size player in a market filled with a range of regional and national competitors. Based on what he was about to propose, and against the backdrop of a soft, recessionary global industrial economic environment, Walter Meier's executive team would question the merits of expanding into new emerging markets, the attractiveness of Latin America, and specifically the advantages of entering Brazil. The case provides background information on the company and the metal and woodworking machinery markets and competition in each of them. Walter Meier's international expansion aspirations are described, and the process for identifying Brazil as a new market for expansion is explained. The case concludes with the trigger issue of which foreign market entry mode will work best for Walter Meier in Brazil. A supplemental 10-minute video interview is also available. The video captures Doug Quackenbos's views on the international business development opportunities and challenges for a medium-size company, how he gathers market intelligence and manages uncertainty, and what he foresees for Walter Meier in Latin America and Brazil. Learning objectives: -
Joysun at the Crossroads
Joysun was established as a state-owned enterprise in the Shanghai Waigaoqiao Free Trade Zone in China in 1995. Thanks to the effective leadership of its general manager and to the monopolistic nature of the Chinese import and export industry in the mid-1990s, the company had grown rapidly from a shop with five employees in its early days to a major player in the logistics industry by the end of 2012. However, Joysun's journey had been rocky due to the profound and rapid transformation of the Chinese economy over the 17 years of the company's existence. By the end of 2012, the company had several projects underway to consolidate its market position. Nevertheless, the management team felt that it should undertake more initiatives in order to sustain Joysun's leadership over time. More specifically, the general manager wondered whether Joysun should enter the cold chain segment of the logistics industry. Considering the country- and industry-level context, what was the strategic relevance and operational feasibility of Joysun entering this new segment? -
Methanex: Developing Strategy in a Commodity Industry
Methanex, the world's largest producer of methanol, was a $2.5 billion global company based in Canada. Top management at Methanex undertook a quarterly risk review that included a systematic review of corporate strategy and the competitive landscape in the methanol industry. The review's primary objective was to identify organizational risks and opportunities and to develop appropriate strategic responses for both short-term profits and long-term growth. Methanex's CEO needed to prepare strategic recommendations and an action plan to present to the board of directors at the next quarterly risk review meeting. -
Joysun at the Crossroads
Joysun was established as a state-owned enterprise in the Shanghai Waigaoqiao Free Trade Zone in China in 1995. Thanks to the effective leadership of its general manager and to the monopolistic nature of the Chinese import and export industry in the mid-1990s, the company had grown rapidly from a shop with five employees in its early days to a major player in the logistics industry by the end of 2012. However, Joysun’s journey had been rocky due to the profound and rapid transformation of the Chinese economy over the 17 years of the company’s existence. By the end of 2012, the company had several projects underway to consolidate its market position. Nevertheless, the management team felt that it should undertake more initiatives in order to sustain Joysun’s leadership over time. More specifically, the general manager wondered whether Joysun should enter the cold chain segment of the logistics industry. Considering the country- and industry-level context, what was the strategic relevance and operational feasibility of Joysun entering this new segment? -
Methanex: Developing Strategy in a Commodity Industry
Methanex, the world’s largest producer of methanol, was a $2.5 billion global company based in Canada. Top management at Methanex undertook a quarterly risk review that included a systematic review of corporate strategy and the competitive landscape in the methanol industry. The review’s primary objective was to identify organizational risks and opportunities and to develop appropriate strategic responses for both short-term profits and long-term growth. Methanex’s CEO needed to prepare strategic recommendations and an action plan to present to the board of directors at the next quarterly risk review meeting. -
Wilshire Sports Importers Ltd.
The sole shareholder and manager of a premier soccer cleat retailer/wholesaler must analyze his company's 2010 performance. The company had experienced significant growth during the past two years and the manager was anxious to find out if the company's recent expansion was as profitable as he had predicted. -
SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A)
The Shorefast Foundation is a charitable organization that aims to spark a rural renaissance and promote economic and cultural resilience in the isolated communities of Fogo Island and Change Islands, Newfoundland, Canada, using a social entrepreneurship model. The cases also highlight the importance of rural places as repositories of local knowledge, culture and traditions. The two Shorefast cases illustrate the initial formation of the Foundation and the implementation issues surrounding the building of a multimillion dollar five star Inn. They are best used together as a series, but can be used independently as well. Case A provides information about the socioeconomic background of Fogo Island as well as an in depth profile of the founder of the Shorefast Foundation, Zita Cobb. The case illustrates how the founder of an organization can shape an organization's goals, vision, and beliefs. It also describes the model of social entrepreneurship that was being proposed and the organizational structure of the Shorefast Foundation and its affiliates as it stood before the construction of the revenue-generating Inn. Learning objectives: The case can be used to 1) introduce the concept of business models in general and explore the differences between 'traditional' and 'social entrepreneurship' business models; 2) help students understand the link between a founder's values, beliefs and objectives (managerial preferences) and strategy formulation and implementation; 3) introduce students to the organizational challenges involved in social entrepreneurship and the tensions to be negotiated between environmental, economic and social goals. -
SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (B)
Supplement for IMD612 -
Child in Need Institute: Non-Profit or Hybrid?
In February 2009, the additional director at the Child In Need Institute (CINI) received the most challenging assignment that CINI's board of governors had ever given him - to prepare a comprehensive proposal recommending whether the organization should continue as a non-government organization (NGO) driven primarily by donations and grants, or should venture into social business. He had a month to give his recommendations. CINI was a reputable 37-year-old NGO from Kolkata (Calcutta), India, with a mission of "sustainable development in education, protection, health and nutrition of child, adolescent and woman in need." Over the years, CINI had fought child malnutrition through health clinics and educating mothers, and had provided shelters and a path to betterment for street children. Despite recognition at CINI that donor funding was becoming scarce, any proposed social business was controversial because it ran the risk of alienating existing donors and replacing CINI's existing purpose with a profit motive. This case has global relevance, as the challenges that CINI met in 2009 are faced by thousands of social enterprises across the world. -
Chipotle Mexican Grill, Inc.: Food with Integrity
Chipotle Mexican Grill, Inc. competes in the fast casual segment of the restaurant industry. Its founder and current co-CEO has always emphasized not only good tasting food but also a commitment to sustainability through the mission statement: "Food with Integrity." The company has positioned itself as a differentiator, using both food quality and a commitment to sustainability as factors that isolate it from its competitors. However, in 2012, the company faces a number of challenges from increased competition and rising food costs. As a result, a hedge fund investor has recently called for shorting the company's stock. The co-CEOs must decide on the best course to confront these challenges as the company's stock price is in a free fall. -
GAZ Group Russia: The Gazelle Light Commercial Truck
In January 2013, the CEO of the Russian automotive company Gorky Automobile Plant (GAZ) was pleased with the results of the recently implemented changes to the company’s product-market strategy and the related organizational processes. He believed that this series of radical changes could help GAZ further cement its domestic market leadership position and at the same time allow it to complete a dramatic turnaround that had resulted in the company's most profitable year ever. He was now planning the launch of the third generation all-new Gazelle Next light transport truck, which he believed would take the company to a new level of competitiveness and revenue growth in Russia, and even more importantly, in other emerging markets. -
Canadian National Railway Company: Culture Change (A)
The executive vice-president and chief operating officer (COO) of Canadian National Railway Company (CN), wants to change the culture at his organization. The COO has been promoted to his current position after CN purchased Illinois Central, and his first task is to review CN’s operations across the country. He notices that employees are leaving work early, a practice called “early quits” that is supposed to reward employees for working harder during the day. He also notices there are other practices, such as late starts that encourage lower productivity. With the goal of improving productivity in mind, the COO elects to tackle the issue of late starts before fixing the early quits problem. This case introduces behavioural science as one of the many management tools that can be used to influence behaviour. -
Canadian National Railway Company: Culture Change (B)
This is a supplement to 9B13M090. -
Golden Tunes Records
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Kfar Giladi Quarries: Crisis During an Economic Recession
Kfar Giladi Quarries (KGQ), situated in northern Israel, faces a crisis: the national economy is in recession; the government budget for infrastructure development and construction, on which the company depends, has been reduced; transportation and distribution problems limit its ability to export (or import) cheap raw materials; and there is increasing competition in the industry. The company had recently dissolved its partnership with Malibu Israel Company Ltd., an international company that had given it access to the central part of Israel where most infrastructure and construction jobs and investments are located. The result has been loss in business and a negative cash flow. The case allows students to practise basic tools for strategic planning and permits guidance to companies hesitating over a recovery program, especially during an economic recession; companies in a reorganization phase after separation from a partner; and/or companies that have to shift their management paradigm. -
How to Give a Killer Presentation
For more than 30 years, the TED conference series has presented enlightening talks that people enjoy watching. In this article, Anderson, TED's curator, shares five keys to great presentations: Frame your story (figure out where to start and where to end). Plan your delivery (decide whether to memorize your speech word for word or develop bullet points and then rehearse it-over and over). Work on stage presence (but remember that your story matters more than how you stand or whether you're visibly nervous). Plan the multimedia (whatever you do, don't read from PowerPoint slides). Put it together (play to your strengths and be authentic). According to Anderson, presentations rise or fall on the quality of the idea, the narrative, and the passion of the speaker. It's about substance-not style. In fact, it's fairly easy to "coach out" the problems in a talk, but there's no way to "coach in" the basic story-the presenter has to have the raw material. So if your thinking is not there yet, he advises, decline that invitation to speak. Instead, keep working until you have an idea that's worth sharing. -
Life's Work: Arnold Palmer
Arnold Palmer talks about his strategy for winning, his opinion of coaches, and learning from losses. -
If You Want to Do Something Really Big
The general secretary of Rotary International and the Rotary Foundation describes his organization's success--in partnership with WHO, UNICEF, and the CDC--at eradicating polio worldwide over the past 25 years, and shares some managerial lessons learned in the process. -
Sullivan Container
Sullivan Container operated both new industrial steel barrel production and the reconditioning of industrial steel drum and plastic containers in several plant locations in the United States. The firm operated in an industry with a checkered past, characterized by periods of price fixing and environmental problems. A new management team acquired the firm in 2007 and began revamping manufacturing practices and focusing on environmentally sustainable practices. Faced with the severe economic crisis in 2009, the firm continued to pursue sustainable practices, but now faces a critical question as investment costs in sustainable practices increase. The key question we explore is: Given the industry history, will build sustainable practices into their business model drive a customer's Willingness to Pay? The case allows students to explore the challenges of creating a Willingness to Pay for aspects of value creation that may have no immediate positive effect on their customer's internal operations.