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  • Experience China: A National Image Campaign in the United States

    The China national image film “People Chapter” — officially a sub-series of the “Experience China” campaign — was launched by the Chinese government to coincide with President Hu Jintao’s visit to the United States in mid-January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per day, and had appeared approximately 8,400 times when the broadcast ended on February 14, 2011. The video showed a series of Chinese people, ranging from ordinary citizens to celebrities. It was a publicity effort aimed at promoting a truer image of China abroad, and signalling that China was opening to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly mixed since the initial release of the promotional film. Experts from China and abroad were skeptical of the effectiveness of the campaign in promoting the national image of modern China to the world. This case presents the opportunity to examine the basic elements in the marketing communication process, analyze how decisions in marketing design affect outcomes, and understand the differences between nation and product promotion.
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  • Sumeru Software Solutions: Creating a Culture of Serene Dynamism

    Sumeru Software Solutions was a software development consultancy firm headquartered in Bangalore, India, with offices in Washington, D.C., Dubai, and London. It began operations in July 2001 as a single project with two employees, and grew over 10 years into an organization with approximately 200 employees. The founding objective of Sumeru Software Solutions was to support Art of Living’s social development initiatives through profits earned from delivering high-quality services. Art of Living (AOL) was founded in 1981 by Sri Sri Ravi Shankarji as a not-for-profit, educational, humanitarian non-governmental organization engaged in stress-management programs, including yoga and meditation. Sumeru had developed a unique culture that combined corporate culture with the Art of Living principles of Seva, Satsang, Sadhana, and positivity even in the face of adversity. In line with the AOL principles, the four pillars of Sumeru culture were ethics, caring, sharing and trust. It purported to follow a peaceful yet aggressive way of doing business called “Serene Dynamism.” Harish Ramachandran, CEO of Sumeru Software Solutions, had created an enterprise that was different from other IT organizations. He was wondering how he would sustain the culture of the organization and make Sumeru a high-performing company over the next 10 years as it expanded its business and hired new employees.
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  • A Few Excel Tips: Data Validation Tool, Offset and Vlookup, Dynamic Charts, Form Controls, Pivot Tables, VBA

    This note is designed to give readers an overview of some useful tools within Excel and VBA. These include Offset, Vlookup, Dynamic Charts, Form Controls and Pivot Tables. The note contains explanations followed by examples for each tool.
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  • Coca-Cola and Huiyuan (B): Antitrust Barriers to Buying Top Chinese Brands

    The Coca-Cola Company ("Coca-Cola") announced a plan in September 2008 to acquire China's biggest domestic juice manufacturer, China Huiyuan Juice Group Limited ("Huiyuan"). This acquisition will boost the market share of Coca-Cola from 12.7% to 20.2% in the country's juice market that year. Because Huiyuan-branded fruit juice is one of China's home-grown prominent brands, this news has triggered a public outcry rooted in patriotic nationalism against Coca-Cola's acquisition. Local juice manufacturers have also protested, claiming that Coca-Cola's enhanced market position would drive them out of business. China's antitrust officials plan to conduct a public hearing in late December 2008. Coca-Cola's senior executives are mulling over the best strategies to convince the authorities that this acquisition benefits the consumers and the society at large. Factors of considerations may include the rationale of regulatory control of M&A, synergies of the merging companies, and the potential effects of merging on competition, consumer interests and industry development. (Note: Case B covers the ruling by China's antitrust authorities on Coca-Cola's case and its implications for foreign companies trying to expand business in the country through acquisition of top domestic brands.)
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  • Coca-Cola and Huiyuan (A): Antitrust Barriers to Buying Top Chinese Brands

    The Coca-Cola Company (Coca-Cola) announced a plan in September 2008 to acquire China's biggest domestic juice manufacturer, China Huiyuan Juice Group Limited (Huiyuan). This acquisition will boost the market share of Coca-Cola from 12.7 percent to 20.2 percent in the country's juice market that year. Because Huiyuan-brand fruit juice is one of China's prominent homegrown brands, this news has triggered a public outcry rooted in patriotic nationalism against Coca-Cola's acquisition. Local juice manufacturers have also protested, claiming that Coca-Cola's enhanced market position would drive them out of business. China's antitrust officials plan to conduct a public hearing in late December 2008. Coca-Cola's senior executives are mulling over the best strategies to convince the authorities that this acquisition benefits the consumers and the society at large. Factors of considerations may include the rationale of regulatory control of M&A; synergies of the merging companies; and the potential effects of merging on competition, consumer interests, and industry development. (Note: Case B covers the ruling by China's antitrust authorities on Coca-Cola's case and its implications for foreign companies trying to expand business in the country through acquisition of top domestic brands.)
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  • Sms For Life (B): Living The Implementation Challenges Of A Successful Pilot Project

    Supplement for IMD582
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  • Subsidies: Rationales and Trade and Investment Distortions

    Governments throughout the world have offered subsidies for a wide variety of reasons, including the objectives of increasing investments and jobs, particularly those that are high-tech, stimulating economically depressed regions, supporting domestic agriculture, and preventing bankruptcies through "bail-outs." Subsidies now play a key role in business location decisions, and impact their international competitiveness. Recipients of subsidies can offer their goods and services for sale at lower prices than would exist in the absence of subsidies. Foreign-based corporations may regard these lower prices as unfair competition in international trade. Consequently, international trade negotiations have come to focus on many of these subsidy programs as trade distortions that should be limited by formal international agreements. Some countries, especially the US, impose special countervail duties if their corporations are being hurt by foreign subsidies. With current and projected reductions in trade barriers, subsidies will become relatively more important as a trade-determining process. Nevertheless, subsidies are implemented to pursue certain social objectives, and so an intergovernmental pact that limits subsidies may diminish, rather that improve, the well-being of signatories.
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  • The Big Idea: Before You Make That Big Decision...

    When an executive makes a big bet, he or she typically relies on the judgment of a team that has put together a proposal for a strategic course of action. After all, the team will have delved into the pros and cons much more deeply than the executive has time to do. The problem is, biases invariably creep into any team's reasoning-and often dangerously distort its thinking. A team that has fallen in love with its recommendation, for instance, may subconsciously dismiss evidence that contradicts its theories, give far too much weight to one piece of data, or make faulty comparisons to another business case. That's why, with important decisions, executives need to conduct a careful review not only of the content of recommendations but of the recommendation process. To that end, the authors-Kahneman, who won a Nobel Prize in economics for his work on cognitive biases; Lovallo of the University of Sydney; and Sibony of McKinsey-have put together a 12-question checklist intended to unearth and neutralize defects in teams' thinking. These questions help leaders examine whether a team has explored alternatives appropriately, gathered all the right information, and used well-grounded numbers to support its case. They also highlight considerations such as whether the team might be unduly influenced by self-interest, overconfidence, or attachment to past decisions. By using this practical tool, executives will build decision processes over time that reduce the effects of biases and upgrade the quality of decisions their organizations make. The payoffs can be significant: A recent McKinsey study of more than 1,000 business investments, for instance, showed that when companies worked to reduce the effects of bias, they raised their returns on investment by seven percentage points. Executives need to realize that the judgment of even highly experienced, superbly competent managers can be fallible. A disciplined decision-making process, not individual genius, is the key to good strategy.
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  • How P&G Tripled Its Innovation Success Rate

    In the early 2000s, faced with an alarming gap between its growth goals and what its innovation pipeline was delivering, Procter & Gamble created a "new-growth factory"-a network of novel structures and capabilities to rapidly shepherd new products and even business models from inception to market. The resulting innovations range from a 33-cent razor for customers in emerging economies to Tide Dry Cleaners-establishments with drive-through windows and 24-hour drop-off and pickup. Brown, who is P&G's chief technology officer, and Anthony describe the factory's components and practices: new-business-creation groups, entrepreneurial "guides" to help them, an innovation manual, a disruptive-innovation "college," and more. They also offer six lessons for leaders seeking to set up new-growth factories of their own. Although the factory is still ramping up, its early successes suggest that collective creativity can be managed-and can generate sustainable sources of revenue growth no matter how big a company becomes.
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  • The Ambidextrous CEO

    Although most managers publicly acknowledge the need to explore new businesses and markets, the claims of established businesses on company resources almost always come first, especially when times are hard. When top teams allow the tension between core and speculative units to play out at lower levels of management, innovation loses out. At best, leaders of core business units dismiss innovation initiatives as irrelevancies. At worst, they see the new businesses as threats to the firm's core identity and values. Many CEOs take a backseat in debates over resources, ceding much of their power to middle managers, and the company ends up as a collection of feudal baronies. This is a recipe for long-term failure, say the authors. Their research of 12 top management teams at major companies suggests that firms thrive only when senior teams lead ambidextrously-when they foster a state of constant creative conflict between the old and the new. Successful CEOs first develop a broad, forward-looking strategic aspiration that sets ambitious targets both for innovation and core business growth. They then hold the tension between innovation unit demands and core business demands at the very top of the organization. And finally they embrace inconsistency, allowing themselves the latitude to pursue multiple and often conflicting agendas.
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  • The Innovation Catalysts

    A few years ago the software development company Intuit realized that it needed a new approach to galvanizing customers. The company's Net Promoter Score was faltering, and customer recommendations of new products were especially disappointing. Intuit decided to hold a two-day offsite for the company's top 300 managers with a focus on the role of design in innovation. One of the days was dedicated to a program called Design for Delight. The centerpiece of the day was a PowerPoint presentation by Scott Cook, who realized midway through that he was no Steve Jobs: The managers listened dutifully, but there was little energy in the room. By contrast, an exercise that followed, in which the participants worked through a design challenge by creating prototypes, getting feedback, iterating, and refining, had them mesmerized. The eventual result was an organized program in which a team of nine design thinking coaches-"innovation catalysts"- from across Intuit were made available to help any work group create prototypes, run experiments, and learn from customers. The process includes a "painstorm" (to determine the customer's greatest pain point), a "sol-jam" (to generate and then winnow possible solutions), and a "code-jam" (to write code "good enough" to take to customers within two weeks). Design for Delight has enabled employees throughout Intuit to move from satisfying customers to delighting them.
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  • Innovating on the Cheap

    No investment in innovation is ever a sure bet. Typically, innovation success rates are low, and returns are slow to materialize-if they're generated at all. This makes innovation initiatives hard to justify when money is tight. But even then, it's still possible to launch new offerings that excite customers. The trick is to find the promising assets you already have in hand. According to strategy consultant Lance Bettencourt and consumer-products executive Scott Betten-court, almost every company has previous discoveries with overlooked market potential. The six most common types of in-hand innovations include products that failed to launch because of particular circumstances, which may have changed since then; previously developed capabilities and features addressing customer needs that have recently risen in prominence; products that customers like for unexpected reasons and that could take off if repositioned; extras created for bundled offerings that could be spun out as stand-alone products; separate components that could be combined into an enhanced offering; and overdesigned products that could be simplified to help the company reach new customer segments. With such innovations, much of the work has already been done. They can be brought to market with relatively minimal effort, resources, and risk and swiftly boost a company's bottom line.
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  • The Paradox of Excellence

    Why is it that so many smart, ambitious professionals are less productive and satisfied than they could be? Thomas DeLong, an academic and consultant to executives, and Sara DeLong, a psychiatrist, argue that it's often because they're afraid to demonstrate any sign of weakness. They're reluctant to ask important questions or try new approaches that push them outside their comfort zones. For high achievers, looking stupid or incompetent is anathema. So they stick to the tasks they're good at, even while the rest of the organization may be passing them by. In short, they'd rather do the wrong thing well than do the right thing poorly. They get stuck in this unproductive and unfulfilling pattern and can't break free. Of course, leaders in organizations bear some of the blame for this type of play-it-safe mind-set. They don't always want to hear that a person is struggling, nor do they necessarily reward risk taking, even though they might pay lip service to innovative initiative. The authors outline several steps that individuals can take to shake off fear and paralysis, including looking at past negative experiences from somebody else's point of view and seeking out safe ways to allow themselves to become vulnerable.
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  • The Reluctant Social Entrepreneur

    Kathy Giusti never had any desire to be an entrepreneur, especially not one in the nonprofit sector. She was on the fast track at a huge corporation-and loving it. Then at, the age of 37, she learned she had a deadly form of blood cancer. That life-altering news would put her on a new path: galvanizing efforts to find a cure. In the process, she would found two nonprofits, building unprecedented discipline into their mode of operation.
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  • Life's Work: Ferran Adria

    Adria, the head chef of elBulli-a Spanish restaurant regularly ranked the world's best-on efficient service culture, the best way to nurture talent, and the creative inspiration behind new foods like sea urchin foam and curry ice cream.
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  • On Stepping Down Gracefully

    How you handle yourself in your final weeks and months in power will have a big impact on how you are remembered.
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  • Reckitt Benckiser: Fast and Focused Innovation

    Since its 1999 merger Reckitt Benckiser (RB), a global consumer goods company, led by its CEO Bart Becht, RB developed a reputation for rapid product innovation and industry leading profit margins. RB's stated strategy was to focus on its Powerbrands and high growth categories and to nurture the Powerbrands with innovation and roll them out globally. The Powerbrands had steady double digit growth year over year, attracted a devoted customer base and typically grabbed high margins. This case examines the Powerbrands strategy, RB's devotion to fast and focused innovation and its execution of that strategy.
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  • Grocery Checkout Inc. (GCO)

    Grocery Checkout Inc., an online grocery delivery service, had experienced dramatic growth since its founding in 2005, but investors were pressuring the chief executive officer (CEO) for even faster growth. An improved distribution network and order fulfillment system meant that GCO could handle a greater volume of customers. The CEO considered a number of growth options, including a sell option, and needed to decide which would best fit GCO and how his role might change within the company.
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  • Dr. Narendran's Dilemma

    Dr. Narendran, Director, Indian Medicine (Siddha) College, has been requested by the Head of the College's Pharmacology Department to ensure intellectual protection for, and commercialisation of, a formulation that he had developed for coronary atherosclerosis. Such a request has been made for the first time in the College, and the Director has to decide how it fits into the educational and research mandate of the College. He also has with him a brief market study of the formulation's potential.
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  • The Ultimate Fighting Championship and Cultural Viability

    The Ultimate Fighting Championship (UFC) is an American mixed martial arts (MMA) company based in Las Vegas, Nevada. The UFC is controlled by its parent company Zuffa LLC, which is owned by Frank and Lorenzo Fertitta and Dana White. The UFC has seen a great deal of success since its purchase from its founders in 2001 for $2 million. The owners have made MMA a highly marketable product in terms of live event ticket sales, at home pay-per-view (PPV) purchases and general popularity among their key demographic: men aged 18 to 34. However, this success has mainly occurred within the United States and Lorenzo, current UFC chief executive officer (CEO), wants to expand the organization's reach across the globe. With several successful international events in countries that are fairly culturally comparable to the United States (the United Kingdom, Germany, and Canada), Lorenzo must decide if the UFC can be culturally viable in several new international markets. Specifically, he is interested in the potential to operate in China, India and South Korea. This case has been designed for use in: International Business, Organizational Behaviour, Strategic Management, Business and Society (Business, Government and Society), Leadership and Marketing to address the following topics: The difficulty inherent in determining if a potential market (i.e. international location) will be a cultural fit for a product or service, competitive advantage, strategic development, analyzing the external environment, government regulation, the impact a leader has on organizational expansion, and brand development and management.
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