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Spreadsheet Supplement for Case W27745

Aftertaste Foundation (Aftertaste) was an organization that provided livelihood support to women living in the impoverished urban areas of Mumbai, India, who created sustainable handicrafts. Aftertaste was started in 2013 and initially employed three craftswomen. By 2021, the organization had expanded to two locations and had increased the number of craftswomen employed to 40. Aftertaste’s business model was focused on creating social impact by generating revenue through the sale of handcrafted items to corporate and retail buyers. For six years, Aftertaste was supported financially by the social impact organization Avanti Foundation. In September 2019, Aftertaste was registered as an independent entity. However, shortly after its transition, in March 2020, the foundation was confronted by the challenges of the COVID-19 pandemic. A nationwide order for temporary lockdowns soon forced Aftertaste to stop all in-person operations. When the country started reopening after pandemic lockdowns, Aftertaste’s owner struggled to maintain the financial sustainability of her organization. Surrounded by enduring pandemic uncertainty, she had to decide what strategy to pursue for the future of her organization. How could she overcome her venture’s losses and lead Aftertaste on a path of financially sustainable growth?

In September 2019, the project manager of Washington, DC, technology company Zinthro found a serious calculation error in her company’s bid for a major government project. When she discovered the mistake, the bid had already been accepted and the project was well under way. The issue threatened her working relationship with several key individuals related to the project, including the executive overseeing the project, the client representative, the team that put together the original bid for the project, fellow project managers, and team leaders. Although she was not the one who made the mistake, she was the one who had discovered it and had to decide what to do next. Who should she talk to about the error? Who should be told first? How should she deliver the bad news?

In September 2019, the project manager of Washington, DC, technology company Zinthro found a serious calculation error in her company's bid for a major government project. When she discovered the mistake, the bid had already been accepted and the project was well under way. The issue threatened her working relationship with several key individuals related to the project, including the executive overseeing the project, the client representative, the team that put together the original bid for the project, fellow project managers, and team leaders. Although she was not the one who made the mistake, she was the one who had discovered it and had to decide what to do next. Who should she talk to about the error? Who should be told first? How should she deliver the bad news?

Mahindra Rural Housing Finance Limited (Mahindra Home Finance), a rapidly growing non-banking financial corporation (NBFC) in India, was on the cusp of a historic decision: Should the organization be among India’s first NBFCs to launch a machine-learning-led predictive platform that aimed to revolutionize the way loans were disbursed in rural India? Mahindra Home Finance had a strong focus on social impact, and the firm had to decide whether to take this giant leap. If successful, the project might become a beacon for many such businesses trying to create positive change across communities, as it would reduce the “risk” involved in lending to a segment that was traditionally shunned by the formal banking system. The decision was important—both to the company and to the industry as a whole. Was it time for the field of sustainability to embrace machine learning?

Michael Katchen, chief executive officer and co-founder of Wealthsimple Technologies Inc. (Wealthsimple), made history when his company launched Canada’s first regulated cryptocurrency exchange in 2020. By designing a platform complying with regulations, Wealthsimple provided Canadians with a safer and more secure platform to invest in cryptocurrency, thereby creating a point of differentiation and source of competitive advantage for the company. However, the perceived risks of cryptocurrency-based products meant that Wealthsimple’s pivot into cryptocurrency had not been met with unanimous support, with some industry commentators claiming that Wealthsimple’s strategy to enter cryptocurrency and the higher transaction fees that followed stood in stark contrast to the low-risk investment strategy and principle of wealth democratization upon which Katchen had founded the company. In 2022, with an aim to grow its user base, Wealthsimple had to consider whether to continue to expand in the Canadian cryptocurrency industry. Could it achieve its growth objectives by expanding its crypto offerings, or should it explore alternatives outside the sector?

In January 2022, the leaders of the Canadian charity organization International Needs Canada recognized that individual child sponsorship had serious flaws and was not as impactful as it once had been. They sought to move donors from individual child sponsorship to the more beneficial group sponsorship model. The director of communications and marketing had to determine which donor group to target as he launched the program. As the new model could disrupt the industry. The organization also had to consider the reaction of much larger competitors. Furthermore, International Needs Canada was not replacing its own individual child sponsorship model with group sponsorship; instead, both programs would run simultaneously.

In January 2022, the leaders of the Canadian charity organization International Needs Canada recognized that individual child sponsorship had serious flaws and was not as impactful as it once had been. They sought to move donors from individual child sponsorship to the more beneficial group sponsorship model. The director of communications and marketing had to determine which donor group to target as he launched the program. As the new model could disrupt the industry. The organization also had to consider the reaction of much larger competitors. Furthermore, International Needs Canada was not replacing its own individual child sponsorship model with group sponsorship; instead, both programs would run simultaneously.

Mahindra Rural Housing Finance Limited (Mahindra Home Finance), a rapidly growing non-banking financial corporation (NBFC) in India, was on the cusp of a historic decision: Should the organization be among India's first NBFCs to launch a machine-learning-led predictive platform that aimed to revolutionize the way loans were disbursed in rural India? Mahindra Home Finance had a strong focus on social impact, and the firm had to decide whether to take this giant leap. If successful, the project might become a beacon for many such businesses trying to create positive change across communities, as it would reduce the "risk" involved in lending to a segment that was traditionally shunned by the formal banking system. The decision was important-both to the company and to the industry as a whole. Was it time for the field of sustainability to embrace machine learning?

Michael Katchen, chief executive officer and co-founder of Wealthsimple Technologies Inc. (Wealthsimple), made history when his company launched Canada's first regulated cryptocurrency exchange in 2020. By designing a platform complying with regulations, Wealthsimple provided Canadians with a safer and more secure platform to invest in cryptocurrency, thereby creating a point of differentiation and source of competitive advantage for the company. However, the perceived risks of cryptocurrency-based products meant that Wealthsimple's pivot into cryptocurrency had not been met with unanimous support, with some industry commentators claiming that Wealthsimple's strategy to enter cryptocurrency and the higher transaction fees that followed stood in stark contrast to the low-risk investment strategy and principle of wealth democratization upon which Katchen had founded the company. In 2022, with an aim to grow its user base, Wealthsimple had to consider whether to continue to expand in the Canadian cryptocurrency industry. Could it achieve its growth objectives by expanding its crypto offerings, or should it explore alternatives outside the sector?

This case teaches key success factors for both startups and established medtech firms. It examines how to structure a firm to maximize financial returns. Medtech entrepreneur Duke Rohlen is proposing a new model for innovation and business growth. From 2007 to 2019, Rohlen sold four medical technology (medtech) companies, all of which were acquired at significant multiples of the capital invested. While the average medtech startup exited 8.6 years after starting, Rohlen's companies had an average time to exit of 40 months. Rohlen then saw that the companies acquiring his startups were sold to larger firms, in short time spans after the initial sale, at prices significantly higher than their pre-acquisition value. Rohlen observed how much value his companies had created for others after he sold them: $1.5 billion for Covidien (after sale of FoxHollow to ev3), $1.1 billion for Philips (after sale of CVI's Stellarex from Covidien to Spectranetics), and $280 million for Stryker (after sale of Spirox to Entellus), for a total of about $2.9 billion. Rohlen wondered how he could still create innovative new products yet capture a higher portion of the financial returns. He proposed a new model for innovation and business growth, called the Chassis and Growth Drivers model. Partnering with major private equity firms Hellman & Friedman and Kohlberg Kravis Roberts & Company (KKR), Rohlen's firm Ajax Health plans to invest $1.3 billion to prove the model's viability. For $1 billion, they're submitting a bid to buy Cordis, a maker of medical devices for cardiovascular and endovascular procedures. Cordis was formerly a standalone business before it was bought by Johnson & Johnson and then its current owner and seller, Cardinal Health. If their bid is successful, they will invest an additional $300 million to fund an off-balance sheet accelerator, which will develop innovative new products that will drive revenue growth for Cordis.

Can an online, direct-to-consumer pharmacy both improve the quality and speed of care for patients who need branded drugs and stabilize profits for pharmaceutical manufacturers? UpScript, after years spent achieving legal and regulatory compliance and simultaneous technological innovation has developed a direct-to-consumer (DTC) channel that could upend the standard model of pharmaceutical insurance and pharmacy benefit manager channels that dominate the industry. But UpScript's reliance on self-investment constrains it from access to the capital it now needs to grow and remain at the forefront of its ability to provide pharma with this sales channel. With whom should UpScript invest to maintain growth and market leadership? And as it grows, how will UpScript be challenged by the deeply entrenched pharmacy benefit managers that currently cover most American lives? And how does UpScript stay ahead of the other online pharmacies or telehealth businesses offering a DTC sales channel, mostly for lifestyle generic drugs? This case is suitable both as a general business case for undergraduate and MBA students of any level, focused on strategy, entrepreneurship, DTC pharmaceutical strategies, the pharmaceutical sector, regulation of pharmaceutical marketing and advertising, pharmaceutical benefit managers, and the healthcare industry.

In fall 2021, André Bolduc was contemplating retirement and passing down his maple syrup farm, or “sugar bush,” to his children. David Bolduc, the youngest in the family of three siblings, was the only family member who wanted to continue the generational tradition of the family’s maple sugar farm, which was located in Saint-Jacques-de-Leeds, a municipality close to Montreal and Quebec City. David and his wife had three children under the age of ten. David was evaluating the option of expanding the family’s maple syrup business in order to reach greater profits from production so that he could continue his family’s traditional legacy and also be able to support his family. While the 2021 maple syrup season was over, David would have to make a decision well before spring 2022.

Using the example of a matrix implementation at Atrium Health, the authors discuss the challenges that emerge when an organization moves to a matrix reporting structure that is, when employees shift from straight-line reporting to having two bosses, and when leaders' reports also report to someone else. They describe the four elements that make up a well-functioning matrix model, best practices for creating balance among those elements, and the mindset and skills leaders need to thrive.

Businesses' past involvement or complicity in atrocities and human rights abuses such as slavery and genocide is a pressing concern for stakeholders today. Managers who meaningfully engage with their companies' past actions can address historic harms while simultaneously contributing to their companies' future success. The authors examine the factors that are pushing companies to take action now, and they offer guidance to help leaders begin the process of moving forward.

Dupe--slang for duplicate--influencers are individuals who persuade buyers to purchase counterfeits using social media platforms to drive a brand message intended to confer legitimacy on the purchase decision. Dupe influencers sell fake luxury goods online to their cadres of followers, who relate to the influencers' fashion savviness and who trust their judgment of products' quality. In this article, I provide a synopsis of a case Amazon settled against two dupe influencers who used social media to promote the sale of counterfeit luxury products. I highlight the persistent challenge of luxury counterfeits sold online, the consumer complicity of obtaining luxury fakes, and the problem of discerning a knockoff from a counterfeit product. Dupe influencers leverage trust with their followers and use social media tactics, such as unboxing videos and designer haul promotions, to peddle luxury fakes. Recommendations to combat dupe influencers center on monitoring and working with e-commerce platforms to shut down social media posts that infringe a company's intellectual property, raising consumer awareness of the illicit activities of counterfeiters through education campaigns, leveraging legitimate social influencers to debunk the dupe influencers, and pursuing legal remedies.

Who doesn't love a magic trick? When we watch magicians perform, we enjoy being fooled by their manipulations and sleights of hand. But when leaders in our workplaces use the same techniques as magicians to further personal agendas, they engage in a special and unique form of falsity. This can be useful in furthering organizational goals and performance, but it can also lead to frustration, dysfunction, and even the collapse of the organization. Drawing on research on the psychology of magic, we explain how business leaders construct "magical processes" that can be used to mislead and manipulate workers in the same ways that magicians trick their audiences. We propose a typology of magic tricks in organizations and introduce the acronym CARD to summarize the four steps in these processes: concealing, attracting attention, retaining attention, and directing behavior. We describe each step, provide illustrations, and explain how managers and employees might detect and defend against each one. Finally, we identify structural conditions that may make organizations vulnerable to magical processes. We hope to improve readers' ability to detect magic and CARD tricks, and to pierce through to the agendas hidden behind these false facades.

Influencer marketing has become a dominant and targeted means for brands to connect with consumers, but it also brings risks associated with influencer transgression and reputation damage. In recent years, virtual influencers have gained popularity and given rise to falsity, or artificially created and manipulated influencers that are revolutionizing the field of influencer marketing. A virtual influencer is an entity--humanlike or not--that is autonomously controlled by artificial intelligence and visually presented as an interactive, real-time rendered being in a digital environment. As brands increasingly seek to engage virtual influencers to connect with and sell to audiences, we take a step back and discuss the opportunities and challenges they present for firms and managers. To help marketers understand this emerging field, we first document the rise of virtual influencers. Then, we discuss consumer reactions to virtual influencers before unpacking their associated opportunities and challenges for brands and marketers. Finally, we conclude with an overview of implications and future considerations.

Jennie O’Keefe and Chris Johnson, owners of Rough Waters Brewing Company, were deliberating how to make further inroads into an increasingly competitive provincial craft beer market. The new entrepreneurs were at a crossroads as they considered several possibilities for business growth in the face of a highly uncertain environment that included an unfavourable economic outlook and a global pandemic. They knew there were many things to consider in weighing their options, and that they did not have all the information they wanted or needed to confidently decide. O’Keefe and Johnson needed a framework to guide their decision-making in charting the best course for the brewery in the midst of so many unknowns. 

Spreadsheet Supplement for Technical Note UV7169