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In May 2021, Alibaba Group Holding Limited (Alibaba), China’s biggest e-commerce company, faced a number of challenges. Alibaba, which operated under a platform business model, was confronted with weakened consumer spending due to the coronavirus pandemic as well as increased competition from JD.com Inc. (JD.com) and other e-commerce entrants. To boost business growth and strengthen Alibaba’s leading position in China’s e-commerce market, Daniel Zhang, the company’s chief executive officer, would need to evaluate the possibility of adding a direct online retail model to complement the operations of its flagship platforms Taobao and Tmall. What challenges could Alibaba potentially face in its e-commerce business expansion?

Social determinants of health (SDOH) have gained significant attention in recent years. A growing body of research shows that a person's health is influenced by a large number of non-genetic factors, most of which operate outside the realm of health care and are directly attributable to socio-economic conditions. In the U.S., clinical and economic motivations have spurred health care providers, health insurance companies, local governments, and community-based organizations to take action to address SDOH. The fragmented structure of the healthcare industry has, on the one hand, stimulated innovation and experimentation. On the other hand, the lack of standardized measures to capture the effectiveness and efficiency of these interventions and the lack of loci to share information about best practices impede the identification and duplication of successful solutions. In this technical note, we describe the main players and their roles in the SDOH ecosystem, as well as the obstacles that hinder the development of successful, large-scale solutions. The note shines a light on the limitations of the current approach and highlights the potential of the U.S. SDOH ecosystem to succeed in addressing these important determinants of population health.

Many leaders recognize that their organization's corporate culture needs improvement but don't know where to start. Research on unhealthy corporate cultures points to toxic leadership, toxic social norms, and work design as the three most powerful predictors of toxic workplace behavior. The authors explore evidence-based interventions, organized around these key drivers of toxic culture, that leaders and companies can use to retain employees and create a more positive workplace culture.

The U.S. Supreme Court decision that overturned Roe v. Wade in late June is affecting some employees' decisions about where they want to live and work. As some states pass laws to ban or restrict access to abortion services, employers' responses may affect their ability to attract and retain top talent. The authors offer five actions organizational leaders can take to support and protect employees' reproductive freedom in light of some states' changing reproductive health care policies.

Ajith Rai hailed from a humble background. As a first-generation entrepreneur, over the last three decades he had built a successful automotive business under the umbrella of Suprajit Engineering Limited (SEL). Rai and his wife, Supriya, along with their three sons were a close-knit family. The two older sons were deeply involved in the family business, and the third son was close to finishing his engineering studies. Supriya, a dentist, was engaged in the philanthropic activities of Supriya Foundation, the corporate social responsibility (CSR) arm of the business. Rai had seen many business families disintegrate for lack of governance, and hence early on in his business career, he decided to formulate a family constitution. His sole objective was to safeguard family kinship and business longevity. The case reveals not only the process adopted by Rai to formulate the instrument of family governance-the family constitution-but also his ability to focus on building the capacity of all family members. The case closes with Rai reflecting on the satisfying journey thus far and hoping that the family constitution will be comprehensive enough to take care of the conflicting scenarios that could arise in the future.

Startups are often evaluated by how well they perform on unit economics, defined as the ratio of a customer's lifetime value (LTV) to acquisition costs (CAC). A common target for unit economics, advocated by many VCs and analysts, is 3:1 (i.e., LTV/CAC=3). While there is certainly appeal to having a relatively high unit economics - and it provides the firm with a guide on how much to expend on acquiring customers - it is not obvious whether this prescribed "rule of thumb" ratio is in the firm's best interest. This note analyzes the problem by exploring how a company should go about determining the optimal amount to expend on customer acquisition. The approach proposed, in effect, calls for maximizing customer equity (the sum of lifetime values gained from all customers that are acquired less the acquisition costs incurred) and takes into account that there are decreasing returns to marketing efforts. The resulting customer unit economics (referred to in this note as CUE for short) is shown to often be lower than 3:1 - suggesting that firms have more leeway to grow while at the same time being mindful of profits.

After sourdough bread, countertop chive gardens, and vaccine selfies came a pandemic-era trend that everyone seemed to be in on: one daily chance to guess a five-letter word and crow about your success on social media via little green and yellow squares. From a personal game between a developer and his girlfriend to a global phenomenon in just a few months, Wordle seems poised to outlast its pandemic peers when The New York Times makes an unexpected bid to acquire it. Dissect the journey of one programmer and his viral product as he debates a 7-figure exit before earning his first dollar of revenue.

Spreadsheet supplement for case 323037.

In March 2020, Canadian-based venture Braze Mobility was experiencing growth challenges. The company had commercialized an anti-collision system to enable safe wheelchair navigation, which had been well received by the US market following a fruitful collaboration with the US Department of Veterans Affairs. The chief executive officer of Braze Mobility was now facing some big decisions. Should the company continue to expand its current export model, diversify into the Canadian market, or tap into growing online demand directly from consumers? Compounding the complexity of the problem was the departure of a key member of the team and the onset of the COVID-19 pandemic. Braze Mobility was well positioned for growth, but its next steps would be crucial to its success or failure.<br><br>Related case: Academic Entrepreneurship: Navigating Commercialization Challenges, product number W28370.

In this installment of MIT Sloan Management Review's Leading With Impact series, CEO Rich Kesrchner and chief operating officer Yvonne Wang discuss DirectBooks' approach to innovation with coach and consultant Chris Clearfield. They also talk about the impetus for establishing a communications platform for underwriters and institutional investors, prioritizing ongoing workflow refinements, and their approach to managing multiple stakeholders.

In April 2021, the chair and managing director of India’s JSW Steel Limited (JSW Steel) was facing questions about how to encourage sustainability in an expanding company. JSW Steel was the flagship company of the JSW Group, which started with a small steel plant in 1982 and grew into a conglomerate with interests in steel, cement, infrastructure, energy, paints, and sports. Steelmaking had numerous impacts on the environment. To offset the impact on the environment, JSW Steel had decided to use its by-product, slag, to manufacture cement. The managing director was acutely aware of sustainability concerns and was focused on making his sustainability vision a reality. JSW Steel was at the cusp of a large capacity expansion that would come from existing projects as well as inorganic growth through acquisitions, and both modes of expansion posed challenges for sustainability at JSW Steel.

On May 11, 2021, US federal agents raided the premises of a Bochasanwasi Akshar Purushottam Swaminarayan Sanstha (BAPS) temple in New Jersey and freed dozens of workers who had been operating under modern slavery conditions. Shortly afterward, six workers filed a class-action lawsuit against BAPS at the United States District Court, District of New Jersey. The lawsuit solicited to address the violation of the laws applied to workers, including laws prohibiting forced labour. The lawsuit claimed, among other things, that BAPS isolated workers, coerced workers to live and work in conditions causing psychological deterioration, limited workers’ outside contacts, and caused financial and reputational harm. Although this was only one particular case to come to light, it pointed to a broader problem faced by many companies across the world, either within their own operations or in the supply chains of the organizations they partnered with for corporate social responsibility purposes. How could companies ensure that they abided by fair labour practices and avoided the use of modern slavery?

Drawing on her new book, The Innovation Mindset, IBM Watson Health's Lorraine Marchand discusses common mistakes leaders make in managing innovation. One of her key pieces of advice for managers: Ask, "What problem are we solving for the customer?" and then follow a disciplined process to design a customer-focused solution, rather than first developing a new technology and then figuring out where it could be applied.

The chief executive officer (CEO)of NorthCan Packaging and Logistics (NorthCan) was considering options for NorthCan’s planned expansion into the United States. He had to decide whether NorthCan should (1) construct or purchase a facility in the United States; (2) develop a strategic partnership with an established, complementary US-based packaging solutions company; (3) franchise sales and service in the United States; or (4) expand into the United States, while keeping core operations in Canada. The CEO had to ensure that, with any option, the full-service and value-added aspects of NorthCan remained central. He had to also consider the social and economic costs and benefits of each option, including potential for international growth and competitive advantage, sustainability, regulations, and stakeholder preferences.

Digital technologies are increasingly changing the nature of competition and generating externalities that impact society. On the one hand, digitalization allows organizations to create substantial economic value in shorter periods of time through improved economies of scale, scope, and learning, resulting is increasing returns on capital and competitive concentration. On the other hand, ensuing societal concerns with inequities, regulatory lapses, and lack of transparency and truthfulness represent significant challenges for effective corporate governance. This article addresses the consequences to stakeholders that emerge from the digital economy, discussing how traditional governance mechanisms are ill-equipped to subvert negative externalities. We offer a stewardship-based model of corporate governance as a solution to the pressing problems plaguing consumers, employees, and other salient stakeholders of digital business excesses, with an emphasis on truthful disclosures, enhanced transparency, improvements in equitable allocation of organizational resources, and heightened trust relationships. The focus is on the positive role that organizational leaders can play as exemplars of virtuous stewardship in a highly networked society. The article redefines a modern view of stewardship in a digital economy and applies its principles to the four Ts of virtuous stewardship, a practical corporate governance model that encompasses truthfulness, transparency, trust, and technological equity.

The legal and compliance departments in organizations have more influence than ever before. Why then are companies so vulnerable to legal liability? The problem may not be with talented legal professionals, but with the lack of legal knowledge held by MBAs and other business school graduates that make day-to-day decisions in modern organizations. Firms can close this knowledge gap and minimize legal liability by training their managers in legal astuteness--the ability of a manager to address legal issues successfully--by instilling four essential traits: respecting the rule of law, recognizing legal issues, resolving problems proactively, and reporting complex legal issues to experts. Job candidates should also be screened for traits of legal astuteness. A legally astute candidate, especially a graduate of a business school that requires legal education for all its students, can be a cultural ambassador for legal astuteness and a valuable liaison between legal and compliance departments and the candidate's functional area. A legally ignorant candidate will require significant training and a frank assessment of the legal risk they bring to the organization. Modern firms in today's legal environment face two choices: hire a legally astute manager now or deal with a compliance headache later.

Many organizations in the public, private, and nonprofit sectors have begun to take action to address the systemic racism entrenched in their processes, systems, and structures. This has included commitments to elevate initiatives for equity, diversity, and inclusion. Data indicate that such good-faith efforts are often not as successful as leaders and organizations had envisioned. Our assertion is that if we really want to address systemic racism in organizations, we must first attend to the people who work there. This is because their individual and collective character, revealed through behavior, drives and determines organizational processes, systems, structures, and culture. The purpose of this article is to connect character to the creation and sustainment of organizational cultures of equity, diversity, and inclusion with a specific focus on anti-Black racism. Character is not a subjective, amorphous entity but manifests as a set of observable behaviors. We explain that character equips people with consciousness and the conduct to embrace and cultivate equity, diversity, and inclusion in their organizations and in their lives. We provide concrete examples of the dimensions of character in action using brief illustrations.

Managing risk effectively is essential for business success, and thus understanding risk is vital for business executives. Effective risk management increases firm value, whereas poor risk management will damage shareholder wealth. In this article, we examine the risk literacy of business executives and find significant variation among the leaders we sample. Our findings suggest that business executives would be well served to evaluate their own risk literacy, and remediate, if necessary; to work to increase risk literacy in the company's employees; and to include risk literacy as an important and routine part of the firm's overall culture. Because the importance of risk literacy increases with business complexity, we believe that risk literacy will only become more important in the future.