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Sushma Industries: The Gordian Knot of Compensation Design
Sushma Industries Private Limited (SIPL) wanted to accelerate its growth after two decades as a small enterprise. Enabling growth required having the right talent in place, by first attracting these employees, and then evaluating and appropriately rewarding their performance. The new chief executive officer hired a human resources specialist to design and implement a compensation structure to recognize the changing competitive environment and to align SIPL's human capital strategy with the organization’s strategic goals. The human resources specialist faced the challenges of establishing a new compensation structure in a growing organization, timing the change appropriately in the organization's growth journey, and aligning and positioning it to fit within the current organizational and industry context. -
Femu Advertising: The Expansion Opportunity
In May 2016, a business student from Addis Ababa, Ethiopia, was considering expanding his print advertising business, which he had been operating out of his home for the past five years. He was about to graduate from the School of Commerce at Addis Ababa University, and he needed to put together an action plan for his company’s potential expansion. His options were: (1) continue operating his business as is; (2) invest in an office location and move the business out of his home; and (3) invest in new machines that would allow him to bring banner printing operations in-house. Now it was time to consider the pros and cons of these options and prepare an action plan, including how to obtain the financing for fixed asset investments. -
Harley’s Corner: Positioning Dilemma in the Pet Food Market
In January 2016, the chief executive officer of Harley’s Corner, an India-based online retailer of gourmet dog food, faced a decision dilemma. He needed to decide on the most suitable positioning strategy for the business, which competed against several well-known brands, including other fresh, gourmet, home-cooked food for pets. Harley’s Corner needed to convey a proposition that ran deeper than simply representing an “all-natural, home-cooked” fresh pet food. How could he differentiate the offerings in a relevant way to retain his loyal customers, attract new customers, and thereby grow the business? What was the best way to position his brand, Harley’s Corner, which catered to a niche segment? -
Transformation at Eli Lilly & Co. (B)
Supplement to case 817070. -
Transformation at Eli Lilly & Co. (C)
Supplement to case 817070. -
ColoredCow: Creating New Milestones for Business Growth
Indian start-up firm ColoredCow achieved impressive growth in its first three years. In 2016, the company earned ₹725 million in net revenue, an increase of 140 per cent over the previous year. In early 2017, the company’s target for 2020 was very ambitious: its founder hoped to reach ₹2.5 billion in total revenues, which would be challenging for a company with only 16 employees and a multi-directional focus. ColoredCow's founder wanted to build a direct sales channel to help achieve this target. With rapid changes taking place across the information technology industry, the firm faced some serious questions: What technical and digital capabilities would ColoredCow need to implement to achieve success in the future? What scalability issues would the company likely face? What should ColoredCow’s strategic plan for growth be? -
HKS-Dessous: A Main Street Retail Entrepreneur Handling Digital Change
Late in 2016, the owner of a lingerie business in Düsseldorf, Germany, faced a series of questions regarding the health of her business in a changing environment. The German retail environment had traditionally consisted of many specialized (often family-owned) small- to medium-sized retailers, and many of these stores had not kept pace with globalization and the digital revolution; market changes and increasing competition forced them to close. Other main street retailers managed to grow in these challenging environments, overcoming and moving in front of their previous competitors. HKS Wäsche & Dessous was one of those independent retailers. How could the owner of such a business continue to cope with the changing business environment? How could she deal with the digital revolution or even turn it to her advantage? What can entrepreneurs do to maintain and even develop their businesses? -
ColoredCow: Creating New Milestones for Business Growth
Indian start-up firm ColoredCow achieved impressive growth in its first three years. In 2016, the company earned ₹725 million in net revenue, an increase of 140 per cent over the previous year. In early 2017, the company's target for 2020 was very ambitious: its founder hoped to reach ₹2.5 billion in total revenues by that year-an extremely challenging goal for a company with only 16 employees and a multi-directional focus. ColoredCow's founder wanted to build a direct sales channel to help achieve this target. With rapid changes taking place across the information technology industry, the firm faced some serious questions: What technical and digital capabilities would ColoredCow need to implement to achieve success in the future? What scalability issues would the company likely face? What should ColoredCow's strategic plan for growth be? What marketing strategies should ColoredCow devise to increase its customer base and achieve its ambitious objective of ₹2.5 billion in revenue by 2020? -
Waze Connected Citizens Program
Di-Ann Eisnor, Director of Growth at Waze, founded the company's Connected Citizens Program (CCP), a data-sharing partnership that provided officials with traffic incident and congestion data in exchange for data on anticipated road closures, re-routing, etc. Since 2015, her program had enabled officials in Kentucky and elsewhere to share more reliable traffic information more quickly with drivers. Amidst limited resources, her free program had become a key tool in their transit management arsenal. But now, facing ever-rising expectations and perhaps record crowds, the program that Eisnor and CCP's 3-person team had built, was short the analytical tools Kentucky officials felt they needed to prepare for the Kentucky Derby, their biggest event of the year. What would she do about that? Eisnor had a challenge on her hands in Kentucky. And also in Jakarta. And Los Angeles. From its launch in October 2014 through spring 2016, one-on-one contact by her small CCP team had spurred growth from 10 to more than 50 partners, including city, state and country government agencies, nonprofits and first responders. CCP's early successes had won numerous accolades in the international press. This high-profile media attention had, in turn, earned Eisnor and Paige Fitzgerald, CCP's Program Manager, kudos from their Waze colleagues and caught the attention of Waze's now-parent company, Google. But the successes came with high expectations, too. Waze was intensely focused on user-growth and Google's culture was to build things and then build those things "10x" bigger. How would Eisnor's team take a free program supported by three people to 500 partners, or more? -
StarTech.com: Supply Chain Strategy
In January 2017, the co-founder and chief executive officer (CEO) of StarTech.com was meeting with the chief operating officer to discuss the London, Ontario, company’s supply chain strategy. With sales of $190 million in 2016, StarTech.com, a manufacturer and distributor of hard-to-find technology products, had grown by almost $70 million in the previous four years and was expected to grow at 20 per cent a year for the next three years. The CEO wanted to ensure that the firm’s supply chain strategy simultaneously supported its aggressive growth targets and optimized its inventory investments. What initiatives should the company consider to ensure high levels of product availability for end-users? How could the company enhance its value proposition to customers while also improving operating margins and inventory productivity? -
StarTech.com: Supply Chain Strategy
In January 2017, the co-founder and chief executive officer (CEO) of StarTech.com was meeting with the chief operating officer to discuss the London, Ontario, company's supply chain strategy. With sales of $190 million in 2016, StarTech.com, a manufacturer and distributor of hard-to-find technology products, had grown by almost $70 million in the previous four years and was expected to grow at 20 per cent a year for the next three years. The CEO wanted to ensure that the firm's supply chain strategy simultaneously supported its aggressive growth targets and optimized its inventory investments. What initiatives should the company consider to ensure high levels of product availability for end-users? How could the company enhance its value proposition to customers while also improving operating margins and inventory productivity? -
1-800-Flowers.com: Collaborating with Suppliers
1-800-Flowers.com was a market leader in the floral gift industry, offering solutions for everyday gift needs as well as for special occasions. The U.S. company’s mission was to “deliver smiles” to its customers by designing and delivering innovative and valuable gifts. 1-800-Flowers.com had a very good brand in terms of floral distribution. However, the online market for flower and gift sales was changing rapidly, presenting new opportunities for efficiencies and market expansion. In March 2012, the company's chief executive officer was faced with a pressing decision. How could 1-800-Flowers.com gain competitive advantage through collaborations with the extended supply chain? -
Canadian Arrow Mines: The Nickel Price
In 2016, Canadian Arrow Mines Limited (CRO) had a promising nickel property, the Kenbridge deposit, located 70 kilometres southeast of Kenora, Ontario. The spot had been the site of significant exploration in the past. Further exploration by CRO had indicated that it could be profitable. CRO had spent close to CA$10 million on redevelopment, and needed a further $3 million for the final feasibility study before going into full operation. In 2007, nickel hit a high of $27 per pound, but by 2009, prices had dipped to under $8 per pound, which severely curtailed the firm’s ability to raise the final $3 million. CRO turned its attention to other projects to raise money in the hope of a recovery, but the trend had been negative until mid-2016. To save the property, CRO had laid off all of its employees and reduced expenses to the minimum required. With a small recovery evident, CRO management wondered if CRO should hang on further and wait for nickel prices to rise enough to support the final feasibility study. The team wanted to know what nickel price was required to run a profitable operation. Were there any indicators about which direction this price would take in the future? -
NeoGenius: B2B or Not To Be?
NeoGenius Co., Ltd. (NeoGenius) was an early-stage entrepreneurial venture based in South Korea. Founded in February 2000, NeoGenius provided a wide range of business-to-business (B2B) e-business software and related services. In June 2001, the company was up and running, but it faced competition from larger firms, and the effects of a global economic downturn; as a result, its financial performance was falling short of expectations. NeoGenius had received significant offers from three different entities: a business partner, a competitor, and a venture capitalist. The chief executive officer had only a short time to choose from several options, including growth and exit. -
Patanjali: Swadeshi Jeans or Foreign Shores?
Over the past five years, Patanjali Ayurved Ltd. (Patanjali) had emerged as a major player in India's fast-moving consumer goods industry. Building on the capabilities of its two founders, the company had differentiated its products with a unique mix of Indian nationalism, yoga spiritualism, and natural/Ayurvedic ingredients. In combination with its low-price and low-cost position, this strategy had challenged the incumbent multinational and conventional Indian competitors. In October 2016, Patanjali's two co-founders considered adding blue jeans to the company's business portfolio and expanding its current products into international markets. However, some observers doubted whether Patanjali's successful strategies could be successfully extended to fashion. Others believed the jeans initiative would be problematic because Patanjali had more compelling growth opportunities, such as increasing sales of its existing products within India and abroad. Patanjali's founders needed to decide on the appropriate priorities for their company's continued growth and success. -
Business Model Innovation at Wildfang
CEO Emma Mcilroy and her team weighed the merits of two distinct business models, as they prepared for a funding pitch to scale Wildfang, a menswear-inspired fashion brand built around a badass tomboy image. The funding pitch would hinge on the resource and process gaps the company would need to address in its business model coupled with the outcome of a customer lifetime value (CLV) analysis. Tools for scenario testing, including CLV modeling and the Business Model Canvas (BMC) template are used to contrast a bricks-and-clicks private label strategy with a multisided fashion platform. An Excel supplement included with the case, allows students to analyze segment-specific CLV and weigh financial versus business model design assumptions in order to decide which expansion strategy to recommend. This case illustrates how the descriptive modules of a firm's BMC can be linked to the financial implications of business model design using lifetime value modeling techniques. -
Business Model Innovation at Wildfang, Student Spreadsheet
Student spreadsheet for case NA0460. -
Rwanda Trading Company: Facing a Cash Flow Crisis
This case is about a for-profit social enterprise in Rwanda named the Rwanda Trading Company (RTC) which purchases coffee beans from coffee growers in the country, roasts the beans and exports them to other coumtries. The company was begun in 2009 by Todd Brogdon who also managed the organization. The primary goals of the company were twofold: (1) Have a positive impact on the poorest of the poor in the country; and (2) To be profitable. RTC has been able to achieve these goals since its founding by working with the Rwandan coffee growers on a multi-year agriculturalo training program. All had gone well until the spring of 2016, when a German company named SRO which owned such coffee companies as Peet's Coffee & Tea and Green Mountain (which was owned by Keurig) decided to change the terms of its contract with RTC. A provision in the contract RTC signed with SRO was that their company would carry 180-day receivables. Brogdon immediately realized that this would lead to a serious cash flow problem that would threaten all of the good work they had been able to perform with the Rwandan coffee growers. -
Zola
The case describes the journey of Zola, an online wedding registry designed to greatly improve the clunky and impersonal wedding registry process. With innovative features such as group gifting, scheduled delivery, and honeymoon donations, Zola was described as the registry for Millenials. As the company achieved significant traction and looked to scale, it had to choose from three distinct strategic growth paths to pursue: 1) become the go-to registry site for all major life events; 2) become the online home department store for Millenials; 3) become the premier all things wedding website. As well, the CEO and her team needed to decide whether and how to raise capital in the context of this strategic decision. -
Roposo.com: Share Your Style: Entrepreneurial Pivoting & Strategic Thinking in Indian Fashion Social Networking
Roposo founders from their original days as founders of Giveter learnt about sustainable ways of doing business in the e-commerce world and therein lay the roots of Roposo. Over time, they acquired new knowledge about user behavior and exhibited agility in acquiring new functionalities and setting up of new teams to respond to evolving user behavior on the internet both using product development skills and by creating network effects. In doing so, they seem to be stepping on new competitive realms with existing competitors from the Silicon Valley or even from Asian entrepreneurial firms. The question now arises for Roposo founders on what to do and what not to do so that the firm can continue creating competitive advantage both in its original niche space of fashion social networking and more in fashion social e-commerce going forward. At a broad level, this case is ideal to teach MBA students: 1) How firms dynamically acquire capabilities over time responding to the market and external conditions and build competitive advantage. 2) In addition, it also addresses the issue of entrepreneurial pivoting that is essential to entrepreneurial survival. 3) Finally, the case also raises the issue of focus as a key construct in strategy - where firms need to decide whether it wants to build and/or acquire new capabilities keeping in mind anticipated competitive responses from the market.