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CORRUPTION AT SIEMENS (A)
"In November 2006, 200 German policemen and prosecutors raided 30 offices and homes of Siemens managers to investigate allegations of embezzlement at Siemens' fixed-line phone unit. In the wake of internal investigations started at the end of 2006, Siemens finally admitted to having identified dubious payments amounting to €1.3 billion from the years 1999 to 2006. As a result, Siemens replaced all but one of its managing board members. At the end of July 2008, a former sales manager at Siemens' telecoms division, was convicted for his role in setting up the slush funds used to win contracts. The same day, the supervisory board approved the recommendations a well-known law firm to sue almost all executive committee members in charge between 2003 and 2006. Learning objectives: To introduce students to the issues surrounding corruption in international business." -
TATA MOTORS: BECOMING A GLOBAL CONTENDER
Tata Motors is one of the crown jewels of the Tata Group, India's premier industrial house. In Fiscal Year 2008 the company sold 585,649 vehicles and had a turnover of INR 335 billion (Indian rupees) (US$8.4 billion), making it the largest automobile company in India. Tata Motors had ambitious plans to double the number of vehicles that it sold in a mere five years by maintaining its lead in the booming Indian market and by establishing a greater global presence. The case describes Tata Motors' journey to becoming a global contender. It traces the company's business portfolio and strategy, its dramatic turnaround in 2000-2002, its strengthened position in India in both commercial vehicles and passenger cars, as well as its diversification into international markets through greenfield ventures, as well as acquisitions and alliances - notably the Jaguar LandRover purchase in 2008. In January 2008, Tata Motors unveiled the Tata Nano, priced at INR 100,000 or one lakh ($2,500), the cheapest car in the world. By entering two of the fastest growing areas of the automotive industry (the premium and small car segments), Tata Motors company was firmly on the path to becoming a global contender. Learning objectives: The case has the following objectives: 1) Introduce students to Tata Motors - an emerging global player in the auto industry from India; 2) Understand and critique the company's domestic strategy to date (including the launch of the Nano); 3) Review its international strategy to date (including its acquisition of Jaguar and LandRover; 4) Discuss how the company's Managing Director should address the challenges facing the company. -
Political and Economic History of the People's Republic of China: An Annotated Timeline
Brief political, economic and social timeline of China from 1949 to present to give context on and provide overview of modern Chinese history. -
Finding and Grooming Breakthrough Innovators
Sustaining innovation, many agree, is crucial for a company's long-term success. But truly innovative people are rare: They have excellent analytic skills, never rest on their laurels, and can identify the solutions likeliest to win over top leadership. They are socially savvy and can bring a diverse group of constituents into alignment. They tend to be both charming and persuasive. The right talent-management procedures can help in spotting potential innovators. Reuters, for example, interviews candidates one-on-one and gives them complex, real-world scenarios in which they must reach and defend decisions, accommodate new information, and convincingly sell their point of view. Starwood and McDonald's require would-be innovators to lead cross-functional teams in developing promising ideas and then present those ideas to senior management. One global industrial products company in the UK insists that they do a stint in the sales department. Developing breakthrough innovators requires mentoring and peer networks. Mentors provide insight into the motivations, goals, mind-set, and budget constraints of managers in a variety of relevant functions. At Allstate, for example, the CEO coaches and supports the mentors themselves, sending a strong signal about the importance of the program. Peer networks provide a sense of solidarity and a uniquely fertile environment in which to exchange ideas, impart information, and instill hope. Companies that excel in developing innovative leaders often remove them from revenue-generating line positions and plant them in the middle of the organization, where they form "innovation hubs," with easy access to influentials, more autonomy, and broader job responsibilities. Practices like these keep companies open to new ideas and prepare them to respond nimbly to innovation from elsewhere in their industries. -
Which Kind of Collaboration Is Right for You?
Nowadays, virtually no companies innovate alone. Firms team up with a variety of partners, in a wide number of ways, to create new technologies, products, and services. But what is the best way to leverage the power of outsiders? To help executives answer that question, Pisano, of Harvard Business School, and Verganti, of Politecnico di Milano, developed a simple framework focused on two questions: Given your strategy, how open or closed should your network of collaborators be? And who should decide which problems to tackle and which solutions to adopt? There are four basic modes of collaboration, say the authors. An elite circle is a closed network with a hierarchical governance: One company selects the participants, defines the problem, and chooses the solution. For instance, Alessi, an Italian home-products company, invited 200 outside experts in postmodern architecture to contribute ideas for new home-product designs. An innovation mall is hierarchical but open: Anyone can post a problem or propose solutions in it, but the company posting the problem chooses the solution. An example is InnoCentive.com, an eBay-like site where companies post scientific challenges. An innovation community is open and decentralized: Anyone can propose problems, offer solutions, and decide which ideas to use - as happens in the open-source software community Linux. A consortium is a private group of participants that operate as equals and jointly select problems, decide how to conduct work, and choose solutions. IBM has set up a number of consortia with other companies to develop next-generation semiconductor technologies. No one approach is superior; each involves strategic trade-offs. When choosing among modes, firms must weigh their advantages and challenges, and assess which will work best with their strategy, capabilities, structure, and assets. -
Delivering on the Promise of Nonprofits
As U.S. nonprofits take on an increasing share of society's work, they face mounting pressure from stakeholders - donors, boards, employees - to show results. To make the greatest possible impact, they need to explicitly state the outcomes they're aiming for and how they plan to accomplish those goals. The authors, of the Bridgespan Group, say organizations should start by rigorously addressing a few interdependent questions: Which results will we hold ourselves accountable for? How will we achieve them? What will the results really cost, and how can we fund them? How do we build the organization we need to deliver those results? Together, those questions provide a framework for developing pragmatic, specific plans of action. Rheedlen Centers for Children and Families stepped up its performance by using such a framework. Ten years ago, the agency offered a host of programs - including an initiative called the Harlem Children's Zone - designed to improve the lives of poor children in devastated U.S. communities. Despite Rheedlen's efforts, supported by a $7 million budget, the prospects for Harlem's children appeared to be getting worse. So the organization changed its name simply to the Harlem Children's Zone, and linked its mission to a concrete statement of intended impact: namely, that 3,000 children, ages 0 to 18, living in the zone should have demographic and achievement profiles consistent with those found in an average U.S. middle-class community. HCZ's leaders discontinued or transitioned out of activities that were not in line with that outcome and took on new ones that were. They also diversified HCZ's funding, shook up and expanded the management ranks, and invested money in evaluating results. Over the past five years, HCZ has added 10,500 children to the population it serves and almost $40 million dollars to its budget. -
American Cancer Society: Access to Care
CEO John Seffrin decides to radically change the strategy of the American Cancer Society. The new Access to Care strategy relies on advocacy to change public policy and increase the number of Americans eligible for cancer prevention and treatment. The new strategy brings with it considerable political risk. Leveraging an organization with 3 million volunteers, this case describes how he skillfully transforms the organization (structure, control systems, staff, shared values, etc.) to implement the new strategy. -
HNA Group: Moving China's Air Transport Industry in a New Direction
HNA Group, the parent company of Hainan Airlines, was positioning itself to go global and make a mark for itself as the largest private airline in China. Positioned squarely behind the "Big Three" state-owned carriers, Hainan Airlines sought to create a world-class business. Following modern management practices, keeping sharp attention to cost control and capital operations, making aggressive entries into international markets, and maintaining a special corporate culture, Chairman Chen Feng was confident these factors were the engine that would drive HNA's continued growth. -
South Pole Carbon Asset Management--Going for Gold?
In late 2008, Christoph Sutter, CEO of South Pole Carbon Asset Management, reflects on his firm's early success at originating carbon credits in developing nations, and selling them to governments and firms who seek to offset their greenhouse gas emissions voluntarily or to fulfill regulatory obligations. South Pole's early strategy has focused on being a first mover in the niche market for premium quality carbon credits. But as the market evolves in the face of significant policy uncertainty, Sutter wonders what South Pole's strategy should be for the future. This case study can facilitate discussions about environmental markets, about opportunities for entrepreneurship raised by new environmental regulations and about challenges in markets for tradable pollution permits. -
The Bridgespan Group: Chapter 2
The Bridgespan Group was launched in 2000 by management consulting group Bain & Company as a nonprofit focused on strategy consulting for nonprofits and philanthropists. Over the next eight years, Bridgespan expanded its services to include executive search, knowledge sharing, and a web-based job matching service. While its growth was welcome, Bridgespan's leaders and board wanted to strengthen Bridgespan's positive impact on the nonprofit sector as a whole. -
Revolution Foods
In April 2007, Kristin Richmond laced up her sneakers and began the four mile run to Kirsten Tobey's house. It was a Saturday morning, but the two co-founders of Revolution Foods (RevFoods), a provider of healthy meals and nutrition education to schools in San Francisco and Los Angeles, felt pressure to finalize a plan for effectively managing their relationship with Maria Nunez. Nunez, a skeptical and influential food service administrator, had been undermining the RevFoods program at Green Academy, a charter school in California's Bay Area. Richmond and Tobey believed that if they did not address the issue now, their contract with the school could be revoked, an outcome that could threaten RevFoods's standing with other schools. As Richmond jogged up the last hill before reaching Tobey's residence, she wondered how best to turn their tense relationship with Nunez into a productive partnership. -
K2: Brotherhood of the Rope (A)
Chris Warner led a team of experienced mountain climbers on an expedition to reach the summit of K2-the second-highest in the world. After failing to succeed on their first few attempts, Warner and his team brought together other teams hoping to reach the summit, and representing eight different countries, to work together for success. Their story is a narrative full of examples, where in some instances, a leadership point of view was taken, and other times it was not. The successes and failures of the expedition's approach makes for a story bursting with real-world examples and offers an exciting framework to house theoretical concepts about team-building and leadership. Although grounded in the written cases, the series also includes an optional a multimedia supplement offers compelling photos and video for students and instructors. The A case presents a challenging moment in the climbers' trek: After the tragic death of another team's Sherpa, Warner must decide case whether his team should abandon its summit push or continue forward. -
K2: Brotherhood of the Rope (B)
Chris Warner led a team of experienced mountain climbers on an expedition to reach the summit of K2-the second-highest in the world. After failing to succeed on their first few attempts, Warner and his team brought together other teams hoping to reach the summit, and representing eight different countries, to work together for success. Their story is a narrative full of examples, where in some instances, a leadership point of view was taken, and other times it was not. The successes and failures of the expedition's approach makes for a story bursting with real-world examples and offers an exciting framework to house theoretical concepts about team-building and leadership. Although grounded in the written cases, the series also includes an optional a multimedia supplement offers compelling photos and video for students and instructors. After working together with several other international teams to reach the K2 summit, the descent becomes extremely dangerous. The B case finds the climbers in the midst of a raging blizzard. With a missing Italian mountaineer, a Czech climber suffering from hypothermia and cerebral edema, and the theft of a critical survival tool, Warner must decide whether to go look for the missing climber or try to get his expedition off K2 safely. -
K2: Brotherhood of the Rope (C)
Chris Warner led a team of experienced mountain climbers on an expedition to reach the summit of K2-the second-highest in the world. After failing to succeed on their first few attempts, Warner and his team brought together other teams hoping to reach the summit, and representing eight different countries, to work together for success. Their story is a narrative full of examples, where in some instances, a leadership point of view was taken, and other times it was not. The successes and failures of the expedition's approach makes for a story bursting with real-world examples and offers an exciting framework to house theoretical concepts about team-building and leadership. Although grounded in the written cases, the series also includes an optional a multimedia supplement offers compelling photos and video for students and instructors. The C case epilogue describes the daunting physical and moral task team members face while descending K2. One of Warner's team members suggests they faced the ultimate moral dilemma: Do you look to your own self-preservation and survive, or do you look to try to help somebody else at all costs? -
Scotts Miracle-Gro: The Spreader Sourcing Decision
The Scotts Miracle-Gro company is the world's largest marketer of branded consumer lawn and garden products, with a full range of products for professional horticulture as well. Headquartered in Marysville, Ohio, the company is a market leader in a number of consumer lawn and garden and professional horticultural products. The case describes a series of decisions regarding the ownership and organization of the assets used to manufacture fertilizer spreaders. This case is intended to illustrate the application of and tradeoffs between financial, strategic and operations perspectives in a relatively straightforward manufacturing make-buy decision. The case involves a well-known, easily-described product that most students would assume is made overseas. Sufficient information is provided to roughly estimate the direct financial cost associated with internal (domestic) production, offshore (non-domestic) production and outsourced production. In addition, information is included that may be used to estimate potential transaction costs as well as costs associated with foreign exchange risk. -
Youth Villages
Tennessee-based nonprofit Youth Villages had an impressive record of serving emotionally and behaviorally troubled youth and their families, with higher success rates and lower costs than most child services providers. Yet expanding to offer its services on a broader scale proved challenging. -
Implementing Sales Force Automation at Quantum Technology
Ann Rothman, newly arrived Executive Vice President of Global Sales at Quantium Technology needs to address the challenges associated with Quantium's implementation of Siebel Sales, a sales force automation (SFA) software solution. Sales representatives were abandoning the system, sales managers were complaining that sales pipeline data in the system were not accurate, and the system did not appear to be increasing win rate or shortening the sales cycle as expected. Rothman needed to decide how to resolve the problems, which meant either fixing the system or abandoning the project altogether. -
Cheung Yan: China's Paper Queen
Cheung Yan, the chairperson and co-founder of the Nine Dragons Paper Holdings Company ("Nine Dragons") has been globally recognized as one of the foremost strategic business leaders of Asia. Cheung had started off modestly in 1990, by setting up a paper-recycling unit in the US, called America Chung Nam. This unit collected waste paper from the US and shipped it to China. By 1995, Cheung had recognized the huge opportunity for paper manufacturing in China, given its ever-rising demand for export packaging. With the support of her husband and brother, she returned to China and established Nine Dragons, which started off with two paper machines and made 600,000 tons of kraft linerboard per year. By June 2007, the company was a behemoth paper powerhouse, with 13 giant paper-making machines, about 8,600 full-time employees, US$1.4 billion in annual revenue and US$300 million in profits. With a huge expansion program in place, it was expected that by 2009, Nine Dragons would be Asia's top producer of packaging paper, and the first in the world in terms of production capacity. In a male-dominated industry of Asia, how has Cheung succeeded in being celebrated globally as a business leader? What are the qualities and abilities she possesses that have made her such an effective strategic leader? -
ASUSTek Computer Inc. Eee PC (B)
Provides an update to the 609-011 (A) case. -
Transformation of COFCO in a Changing Environment
China's COFCO, the country's leading edible oil and food importer and exporter and its largest food manufacturer, had in its 50-plus years of operation undergone four stages of transformation and was about to embark on a fifth. The global agriculture system was undergoing major changes and the standard of living in China was increasing, changing the food consumption and dietary habits of the nation's 1.3 billion people. COFCO's management needed to decide how the company should transform to seize the opportunities in the industry and in China.