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Kindred Home Care: Choosing Growth Options
In June 2017, the chief executive officer (CEO) of Kindred Home Care, a home care company in the Canadian province of New Brunswick, bordering the United States, was grappling with three options for scaling up operations—take the familiar acquisition route, move toward the untested franchising route, or cross the border to the larger US market. The company has limited physical assets, and therefore the CEO cannot tap external capital to finance growth; however, he could access internally accrued funds of CA$2 million. -
Volkswagen Group: Adapting in the Age of AI
In 2016, the Volkswagen Group (VW Group) announced a new future program, Together–Strategy 2025, which outlined the company’s ambition of becoming “a world-leading provider of sustainable mobility” by 2025. The VW Group made it clear that innovation and technology would be essential enablers to the success of the new strategy. In 2018, VW Group, like other players in the automotive industry, was increasingly drawn to artificial intelligence (AI), which could be used in areas including manufacturing, autonomous vehicles, and data analytics. -
Budgeting Water Properly
A primary requirement for managing water effectively and sustainably is an accounting framework that registers the water that is available for use (supply) and the water that is being used (demand). A common accounting analogy is a water budget, or a water account. This note focuses on the water budgets of individual countries, defining concepts including renewable water, watershed, water withdrawal, water consumption, and dependency ratio. The note also includes data on the water budgets of Myanmar and Egypt. -
The Tragedy of the (Water) Commons
When left unattended, natural resources tend to inch toward depletion, overuse, spoilage, or pollution. Common pastures get overgrazed; lakes are overfished; rivers are polluted, and so on. In the case of water, some may wonder how overuse or depletion is possible, as water is a renewable natural resource. In spite of this, depletion and overuse can occur in a practical sense and on a local level. The reasons for this overuse are often related to the "tragedy of the commons," a situation where individual users of a common resource pursue their self-interest without coordination and thus behave collectively in ways that are not optimal for the resource as a whole. This note explores the concept of the tragedy of the commons in relation to water, considering especially the implications of water's status as an unprotected open-access resource. -
mjunction: The Branding Dilemma
By mid-2019, more than the 18 years since its inception, mjunction had grown to become India's largest e-commerce player and the world's largest e-marketplace for steel. The company had extended its presence to multiple business units, such as coaljunction, teajunction, and straightline.in, all of which operated under the corporate name of mjunction. Some of the business units enjoyed a strong brand identity, while others did not. The chief executive officer was worried about the implications of the diverse brand names being used. Should the organization use a common corporate name for all of its businesses, or follow an individual brand name strategy? And if mjunction chose to transition to a single brand name, how could it minimize the loss of brand assets and other issues? -
Google: Should “Dragonfly” Fly?
In 2018, China was the biggest market for Internet services in the world. Along with the country's huge market size, its comparatively low penetration made it an immensely attractive market for search engine services. To capture this market, Google was planning to re-enter the Chinese market—after leaving in 2010—with a censored search engine codenamed “Dragonfly.” The move was opposed by human rights activists, Google’s own employees, and the U.S. government. Google had the opportunity to improve its share in the global search-engine segment if it could somehow tap into the vast Chinese market. But the tight control over Internet services by the Chinese government on one hand, and the protests by various interest groups on the other, had put Google in a tight spot. Google had to decide if it should go ahead with the plan to offer Dragonfly in China. Should Google instead explore other market and non-market strategies to re-enter the Chinese market? -
Parle Products Private Limited: GST and Retaining Competitiveness
In July 2017, the government of India implemented goods and services tax (GST), which brought uniformity in the tax rates on all types of biscuits. Compared to the pre-GST regime, the uniform tax rate resulted in a higher tax rate on mass-market biscuits and a lower tax rate on premium biscuits. Parle-G, the most popular brand of Parle Products Private Limited (Parle), fell into the mass-market biscuit category. The Parle-G brand had 75 to 80 per cent market share in the mass-market biscuit category, and it contributed nearly 33 per cent of Parle’s total revenue. The brand was sold at a very low price point and was highly price sensitive. To mitigate the tax rate increase, one option was to raise Parle-G prices; however, any price increase or change in package size for a product in the highly price-sensitive category could reduce company revenue. Therefore, new business strategies were needed under the new tax regime and amid the country’s overall changing business and economic scenario so that Parle’s margins and leading position were retained. -
Ryanair: Flying Too Close to the Sun?
Unlike any other European airline, Ryanair DAC had long experienced impressive growth and performance thanks to its well-designed and ruthlessly executed low-cost carrier business model. However, the limits of growth did begin to appear, at which time the company adjusted its business model with an increased emphasis on customer orientation. As a result, cracks in the business model appeared and labour issues came to the fore. While the media and industry analysts were focused on these challenges, Ryanair was undergoing a quiet digital revolution, shifting the airline’s business model toward a technology-based travel platform. With the problems in the business model and a shifting business strategy, could Ryanair achieve the ambitious growth targets it set for 2024? -
Norlha: Scaling Up Sustainable Luxury on the Tibetan Plateau
Norlha Textiles was a yak wool enterprise located on the Tibetan Plateau in China. Founded in 2007, the company designed and produced yak wool textiles made by Tibetan nomads and sold globally to customers that included such luxury brands as Hermès, Louis Vuitton, and Yves Saint Laurent. In 2015, the company employed 120 local people, enabling them to adapt to the modern world while preserving their local traditions. Also in 2015, the local government invited the company to expand its model to another nomadic community on the Tibetan Plateau. Although this seemed to be a good opportunity to grow the company’s influence, the chief executive officer hesitated, reflecting on the pros and cons. Was such a partnership the right opportunity to grow the company? -
Babyonline: Leveraging Cross-Border E-Commerce
In June 2018, the wedding dress industry in Suzhou, China, was confronted with "the harshest clampdown," which required all unqualified wedding dress factories to move out within one week. The initiative from the local government had been expected, although its speed and force were surprising to the founder and chief executive officer of Suzhou Beibao E-Commerce Co. Ltd. (Babyonline). Established in 2012 and engaged in cross-border e-commerce of wedding dresses, Babyonline was unlikely to be affected by the clampdown. However, changes across the wedding dress industry as a result of the initiative had started the founder thinking about issues in the management of his company. At the end of 2015, Babyonline had moved to a make-to-stock system, which lowered costs but seemed to have raised inventory issues. Particularly in recent times, selective selling by some sales representatives had led to structural inventory problems. The founder wondered how he should resolve the inventory issue. -
The Spinach King: scaling opportunity in social enterprise
A social entrepreneur running a business in Khayelitsha, near Cape Town, South Africa, made and distributed healthy bread-based products for consumers in a poor community through his social enterprise, the Spinach King. His aim was to improve consumers’ eating habits and help them improve their health. In early 2014, after facing and overcoming many difficulties related to starting this social enterprise start-up in a resource-constrained context, this entrepreneur had a successful business. The business model had evolved over time, and while it was still small in scale, the owner was convinced that it was ready to scale. He needed to determine what business model would be most appropriate going forward and how he could implement it. -
Greatwall Consulting: Exploring New Directions after Rapid Growth
In 1993, when the Chinese economy was in a major recession, Beijing’s Greatwall Enterprise Institute was founded by six consultants. The company eventually found its niche providing strategic and operational consulting to the governmental agencies (administrative committees) that managed science and technology parks. These agencies had witnessed explosive growth in China since the early 1990s. In 2019, with more than 350 consultants, headquarters in Beijing, 12 branch offices throughout China, and an annual revenue greater than ¥200 million (US$30 million), Greatwall Enterprise Institute faced new threats and opportunities: its success with so many government administrative committees meant that there was little room for it to grow in this area. The company wondered if it should expand to other local governments and their agencies in China. Or would business firm clients and the international market offer new opportunities? -
GLAMI Global Expansion Dilemma: Where, When and How?
GLAMI was launched in October 2013 in the Czech Republic as a fashion search engine with a focus on providing consumers with an accessible platform. It operated a neatly organized online fashion catalogue that consisted of combined products from fashion e-shops that functioned throughout various countries. Through its five years of existence, GLAMI had expanded throughout Europe and Asia. Fashion retailers and e-shops partnered with GLAMI as free or priority members, and had their items placed throughout GLAMI’s website. The company’s business model functioned through a cost-per-click (CPC) model, where GLAMI would charge priority members according to how much they were willing to pay per click. In August 2018, due to its success and the increasing size of the fashion industry and the online retail space, GLAMI was looking to expand beyond its current boundaries to a high-growth area—Latin America. However, considering the vast differences among Latin American countries, GLAMI was finding it difficult to narrow down the list of countries in which to explore international expansion. -
Street Child Europe: Growing a Charity
At the end of March 2018, the director of the Barcelona office of Street Child, a charity organization with headquarters in the United Kingdom, was looking back at the changes he had introduced in 2017. The Barcelona office was responsible for growing Street Child in continental Europe, so it was internally known as Street Child Europe. Since January 2018, the office had added a paid employee. This employee was also the director of Street Child Netherlands and a former program support officer in Sierra Leone. The office could now employ up to eight interns, twice as many as before. However, Street Child Europe still needed to accomplish five key tasks: address its governance structure, clarify its brand positioning, consolidate its fundraising strategy, increase the appeal of its international volunteer program, and sett up an internal system to use its network effectively. The director needed concrete and executable strategies to ensure stable and sustainable growth of the charity across Europe. -
ObiSoft: Negotiating in China
In 2015, a Shanghai businessman contacted the director of ObiSoft, an American software company, to request becoming the company’s partner in China. Over the next two years, they proceeded to develop the partnership and grow ObiSoft's business in China. The Shanghai businessman became ObiSoft’s partner and master reseller in China. In 2018, the Shanghai businessman proposed moving the company's research and development on software to China, and ObiSoft scheduled an August 2018 board meeting to discuss this issue. What should ObiSoft’s board decide regarding the company’s software development and future in China? -
WittyFeed 2.0: Virality Without Social Media
WittyFeed, an emerging digital content and technology company, was launched in September 2014 by three friends in the small Indian town of Indore. Within four years, the company had become one of the world’s largest creators and distributors of content that was followed and circulated online. In the process of scaling up and becoming larger, WittyFeed’s founders faced many challenges in areas like technology, distribution, and talent. These internal and external market issues interacted in a constantly changing environment. In January 2018, the founders were in the process of finding strategic solutions that would help their company double its existing number of monthly impressions to achieve 1 billion touchpoints, while becoming independent of its dominant revenue source, Facebook. What strategies could the founders deploy to reach this target? -
TikTok’s Rise to Global Markets
TikTok was a short-video sharing app based in China. On November 9, 2017, TikTok’s parent company, the Chinese tech company Beijing ByteDance Technology Co. (ByteDance), announced a strategic acquisition of Musical.ly, a popular short-video sharing app based in the United States. With more than 100 million users and similar features to TikTok, Musical.ly was a powerful competitor for TikTok’s international expansion into the North American markets. For ByteDance and TikTok, the closing of the Musical.ly acquisition in August 2018 was not the end goal, as it would create another new challenge. Would it be better to keep Musical.ly as a separate platform, as Musical.ly had achieved a good reputation and millions of users in the United States? Or should Musical.ly be replaced to create a global app under the TikTok brand, which was relatively new to the US market? -
Shakey’s Initial Public Offering: The Dilemma of Investing
In early December 2016, a student member of the Philippine Fund of the finance lab at the Asian Institute of Management was wondering whether to invest in the initial public offering (IPO) of Shakey’s Pizza Asia Ventures Inc. (Shakey’s). Shakey’s was the market leader in the full-service chain restaurants industry in the Philippines and would be the fourth company to be listed in the Philippine Stock Exchange. The IPO period was from December 2 to December 8, 2016, and the company was offering a total of 306 million shares. The student member must decide whether to buy Shakey’s stock based on her estimate of the intrinsic value of Shakey’s relative to the IPO price, Shakey’s strategy and prior performance, and the attractiveness of the food service and restaurant industry. -
Singapore Post Ltd.: Recurrent Service Failures
For 160 years, Singapore Post had been one of Singapore’s main postal service providers, delivering trusted and reliable postal services to homes and businesses. However, in 2019, Singapore Post was plagued by recent service lapses and operational problems, which had elicited customer complaints and concern from various stakeholders. Singapore Post was also facing increasing pressure from rising customer expectations, surging mail volumes, and the growing popularity of e-commerce. In response, Singapore Post pursued several initiatives to improve service operations and maintain its competitiveness in the postal industry. However, the company needed to devise a long-term plan to address recent problems, market changes, and deeply-rooted operational issues—and to regain consumer confidence over the long term. -
Carestream Health Inc.: When Disruption Hits a Lean Supply Chain
In October 2014, Carestream Health Inc. (Xiamen) (CHX) was faced with a supply chain disruption caused by a labour dispute involving most of the ports on the west coast of the United States. The work-to-rule strike was having a considerable impact on the operations of the ports and was putting pressure on CHX’s lean supply chain. In particular, the supply of wide rolls of films, the key material to CHX operations, was compromised. In an emergency meeting, CHX’s management team discussed using other shipping options. One of these options, (airfreighting) appeared to be feasible but costly. The meeting’s leader who was the director of the Asia Pacific Lean Six Sigma asked the management team to determine when CHX should use airfreight for its supply of wide rolls, how many rolls should be airfreighted each time, and what the best mechanism would be to govern the use of airfreight.