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Capital Coast Health Limited: Being a Good Employer in the Midst of Change (B)
The new chief executive officer of Capital Coast Health Limited, a government funded healthcare provider, has made many changes and succeeded in substantially reducing the financial deficit in his first year and a half. However, there were still a number of pressing concerns that needed to be addressed. The governing board of Capital Coast Health Limited has requested information about the Equal Employment Opportunity policies and practices in the organization. The request serves as a reminder to the CEO that internal issues should be a priority in the future. This is a supplement to Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A), product 905M09. -
Offshoring at EDC
According to the American Management Association, 25 per cent of companies are dissatisfied with outsourcing and more than half have brought outsourced services back in house. Education Development Center (EDC), a non-governmental organization, is an example of offshoring best practice and will help identify factors for successful implementation of an outsourcing project. The case starts with a description of EDC and its inability to manage a high level of growth with a fragmented and outdated information infrastructure. As a non-profit organization, EDC had different pressures on its cost and revenues that for-profit organization. -
Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A)
Capital Coast Health Limited is a public healthcare facility in central New Zealand. The new chief executive is confronted with serious internal problems and a persistent annual financial deficit that has been with the organization since its inception. Working in an uncertain and rapidly changing healthcare environment and constrained by government regulations, the chief executive officer must find a way to deliver quality care to the community and at the same time, motivate a large team of professionals who were already weary after years of change. The supplement Capital Coast Health Limited: Being a Good Employer in the Midst of Change (B), product 9B05M010 looks at one of the policies the chief executive officer must focus on. -
Capital Coast Health Limited: Being a Good Employer in the Midst of Change (B)
The new chief executive officer of Capital Coast Health Limited, a government funded healthcare provider, has made many changes and succeeded in substantially reducing the financial deficit in his first year and a half. However, there were still a number of pressing concerns that needed to be addressed. The governing board of Capital Coast Health Limited has requested information about the Equal Employment Opportunity policies and practices in the organization. The request serves as a reminder to the CEO that internal issues should be a priority in the future. This is a supplement to Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A), product 9B05M009. -
Note on Banking in the Caribbean
This is a descriptive note of banking in the Caribbean region. It illustrates the complex and dynamic environment in which banking takes place in the region, and it serves as a background paper for the series of cases associated with the formation and operation of the FirstCaribbean International Bank. -
LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT
In 2005 Logitech launched a new and improved cordless presenter which was the next generation product of its presentation device line. The entire process to launch was unusual for Logitech as the following factors took place: a Director of Engineering played a key marketing role, a new method of customer feedback and research was used to decide on product features and the entire project was outsourced to a firm in Taiwan - which was a first for this product unit. The case goes over the issues and challenges that were faced along the way and how marketing and engineering had to work together in an unusual pairing in order to get to a successful product launch. -
PCAOB (A)
Members of the Public Co. Accounting Oversight Board--a private-sector, nonprofit body created by the Sarbanes-Oxley Act of 2002--must determine the form and content of a new auditing standard on internal control that will fulfill the requirements of Section 404 of the act. After receiving comments from issuers, investors, and accounting firms, board members contemplate the necessary scope of an audit engagement to evaluate the effectiveness of internal controls and restore investors' confidence in financial reporting. Gives students an opportunity to consider the role of external regulation and self-regulation and such issues as the difficulties of cost-benefit analysis for proposed regulations, the relation between rules and discretion, the differences between investor and executive perspectives, and the apportionment of responsibilities among management, internal auditors, and external auditors. -
PCAOB (B)
Supplements the (A) case. -
GLAXOSMITHKLINE AND AIDS DRUGS IN SOUTH AFRICA (A): THE FIGHT FOR LIVES AND PROFITS
The case describes the interactions among pharmaceutical companies, NGOs, and governments in the context of the AIDS epidemic in South Africa. Oxfam singled out GSK as the target for its new campaign, "Cut the Cost." The goal was to hit where it would hurt the most--GSK's share price. At the same time other NGOs also went after GSK. For GSK the situation in South Africa was extremely delicate. The ultimate issues were patent and price protection globally. The pharmaceutical companies were afraid that cheap generic drugs could flood the West, undermining the entire pricing structure and their ability to fund new research. Defending the patents and prices seemed essential. Yet, fighting the NGOs could bring negative publicity and, ultimately, be self-defeating. Meanwhile, million of people were dying of AIDS in South Africa. -
Jay Nielson & AKKA International: Outsourcing in India
Jay Nielson has done charity work in India with AKKA International for a number of years. After a recent trip, the president of AKKA proposed that Nielson enter into a joint venture with AKKA to provide information technology outsourcing services to American companies. AKKA was willing to provide $100,000 in seed money to fund the venture. Nielson must decide whether he wants to undertake this challenge and what it would take to make it work. This also poses an ethical dilemma for him: Should he risk losing the much-needed funds in the hope of bettering a number of lives or request the seed money be used to provide direct services to the most needy? -
Beyond Valuation: "Options Thinking" in IT Project Management
Real options can be a powerful tool for quantifying the value of strategic and operational flexibility associated with uncertain IT investments. However, they also constitute a new way of thinking about how projects can be organized and managed to maximize upside potential while minimizing downside risk. Explains how practitioners can incorporate options thinking into contemporary IT project management. Options thinking means recognizing real options and how they add value. Just as important is managing projects so that the option value that exists in theory is realized in practice. Several real-world examples illustrate how the value of embedded real options can be realized through active project management. There are pitfalls associated with each option, as well as benefits and limitations of different approaches to valuing options. Organizations must decide whether to undertake the challenges of adopting options thinking as a project management philosophy. -
WLR Foods and Tyson Foods, Spreadsheet Supplement
What are the agency costs of management-owner conflicts? In this case, Tyson Foods attempts to acquire WLR Foods. But WLR management and the poultry farmers who own 20% of it actively oppose the takeover. A B case (UV2530) and both student (UV4328) and instructor (UV4333) spreadsheets are available to enhance the learning experience. -
WLR Foods and Tyson Foods
What are the agency costs of management-owner conflicts? In this case, Tyson Foods attempts to acquire WLR Foods. But WLR management and the poultry farmers who own 20% of it actively oppose the takeover. A B case (UV2530) and both student (UV4328) and instructor (UV4333) spreadsheets are available to enhance the learning experience. -
Banco Comercial Português in 2000: New Frontiers for a Local Champion
This study of Banco Comercial Português ("BCP") raises broad issues relating to strategy by growth and acquisition and how market leadership can best be created and extended at home or abroad. The authors trace the history of the bank from a much-admired startup to becoming the largest publicly listed Portuguese financial institution and an up-and-coming player in other European retail banking markets. -
Banco Comercial Português in 2002: Frontiers Nearer Home
This study of Banco Comercial Português ("BCP") raises broad issues relating to strategy by growth and acquisition and how market leadership can best be created and extended at home or abroad. The authors trace the history of the bank from a much-admired startup to becoming the largest publicly listed Portuguese financial institution and an up-and-coming player in other European retail banking markets. -
Congestion Charging in London (A) The Western Extension
In July 2004, Ken Livingstone, the Mayor of Greater London, had to decide whether or not to expand the system of congestion charging he had implemented 17 months earlier. Skeptics had predicted fierce popular opposition or chaos from the original scheme, which required that cars and trucks pay a charge of £5 (US$7.95) to enter an 8-square-mile area of Central London between the hours of 7:00 am and 6:30 pm, Monday through Friday. The critics were confounded, however, when the £5 charge resulted in a substantial reduction in Central London congestion and the payment and enforcement mechanisms proved to be remarkably convenient and fair. The Mayor's proposal to extend the £5 charge to a congested area immediately to the west seemed risky, however, since the technical and political problems of charging might grow disproportionately with the size of the charging zone. HKS Case Number 1788.0 -
Congestion Charging in London (B): The Economics of Charging
In July 2004, Ken Livingstone, the Mayor of Greater London, had to decide whether or not to expand the system of congestion charging he had implemented 17 months earlier. Skeptics had predicted fierce popular opposition or chaos from the original scheme, which required that cars and trucks pay a charge of £5 (US$7.95) to enter an 8-square-mile area of Central London between the hours of 7:00 am and 6:30 pm, Monday through Friday. The critics were confounded, however, when the £5 charge resulted in a substantial reduction in Central London congestion and the payment and enforcement mechanisms proved to be remarkably convenient and fair. The Mayor's proposal to extend the £5 charge to a congested area immediately to the west seemed risky, however, since the technical and political problems of charging might grow disproportionately with the size of the charging zone. HKS Case Number 1788.0 -
HBR List: Breakthrough Ideas for 2005
The List is HBR's annual attempt to capture ideas in the state of becoming--when they're teetering between what one person suspects and what everyone accepts. Roderick M. Kramer says it isn't bad when leaders flip-flop. Julia Kirby describes new efforts to redefine the problem of organizational performance. Joseph L. Bower praises the "Velcro organization," where managerial responsibilities can be rearranged. Jeffrey F. Rayport argues that companies must refocus innovation on the "demand side." Eric Bonabeau describes a future in which computer-generated sound can be used to transmit vast amounts of data. Roger L. Martin says highly reliable corporate systems such as CRM tend to have little validity. Kirthi Kalyanam and Monte Zweben report that marketers are learning to contact customers at just the right moment. Robert C. Merton explains how equity swaps could help developing countries avoid some of the risk of boom and bust. Thomas A. Stewart says companies need champions of the status quo. Mohanbir Sawhney suggests marketing strategies for the blogosphere. Denise Caruso shows how to deal with risks that lack owners. Thomas H. Davenport says personal information management--how well we use our PDAs and PCs--is the next productivity frontier. Leigh Buchanan explores workplace taboos. Henry W. Chesbrough argues that the time is ripe for services science to become an academic field. Kenneth Lieberthal says China may change everyone's approach to intellectual property. Jochen Wirtz and Loizos Heracleous describe customer service apps for biometrics. Mary Catherine Bateson envisions a midlife sabbatical for workers. Jeffrey Rosen explains why one privacy policy won't fit everyone. Tihamer von Ghyczy and Janis Antonovics say firms should embrace parasites. And Jeffrey Pfeffer warns business-book buyers to beware. Additionally, HBR offers a list of intriguing business titles due out in 2005. -
Should Nonprofits Seek Profits?
Twenty years ago, it would have been shocking for a children's choir to sell singing telegrams or for an organization serving the homeless to dabble in property management. Today, it seems routine. Nonprofits increasingly feel compelled to launch earned income ventures--not only to appear more disciplined and businesslike to stakeholders but also to reduce their reliance on fundraising. There's plenty of hype about the value of earned income ventures in the nonprofit world, but such projects account for only a small share of funding in most nonprofit domains, and few of the ventures make money. Moreover, when the authors examined how nonprofits evaluate potential enterprises, they discovered a pattern of unwarranted optimism. The potential financial returns are often exaggerated, and the challenges of running a successful business are routinely discounted. But the biggest downside of such ventures is that they can distract nonprofits' managers from their core social missions and, in some cases, even subvert those missions. There are several reasons for the gap between the hype and the reality. One is that an organization's nonfinancial concerns--such as a desire to hire the disadvantaged--can hamper it in the commercial marketplace. Another is that nonprofits' executives tend to overlook the distinction between revenue and profit. For example, a youth services organization that had received funding to launch a food products enterprise hired young people and began making salad dressing. The nonprofit believed it spent $3.15 to produce each bottle of dressing that was sold for $3.50. But when expenses such as unused ingredients and managers' salaries were factored in, the cost per bottle reached a staggering $90. Earned income ventures do have a role in the nonprofit sector, the authors say, but unrealistic expectations are distorting managers' decisions, wasting precious resources, and leaving important social needs unmet. -
Ireka Construction Berhad: A Chinese Family Business Goes Public
Ireka Construction Berhad is a small Chinese family business in Malaysia founded in 1967. The company's primary business was earthmoving for the mining industry, factory sites and housing lots, and has expanded its business into civil and structural engineering projects, building and construction, and hotel and property development. In 1992 it became a public company. This case illustrates the process of going from a private to a public company and discusses change management processes.