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Reike Technology: Revenue Recognition and "Pay-When-Paid" Clauses
In December 2013, Reike Technology Co. Ltd. (Reike), a Chinese information technology and outsourcing company, faced an accounting revenue recognition problem. Reike had a well-deserved reputation in the software outsourcing industry, having built partnerships with Fortune 500 companies since the 1990s. However, in 2012, it collaborated on a project with a multinational software company that included a “pay-when-paid” clause in the contract. According to this clause, payments to Reike would be based on the percentage of the project completed upon review, as long as the software company received the corresponding proportion of payments from the owner. As the project progressed, Reike’s managers became troubled by the following issues: Should the “pay-when-paid” contract containing legal risks have been signed? When should Reike recognize the project revenue? How should the company deal with the project costs considering there was unrecognized revenue at the end of the year? Would there be any effect on performance assessments? -
Yalla Momos: Targeting the Expatriate
Yalla Momos was a restaurant in Dubai, United Arab Emirates, that served momos, which were Nepal’s answer to the Chinese dumpling. Yalla Momos’ sales have grown exponentially since brothers Prashant and Ishan Goel founded the restaurant in 2012. Recently, in order to safeguard their share of the market, the Goels have been considering how to take their venture forward in the face of competition from both the organized (big retail outlets) and unorganized (individually managed) food sectors. The founders want to secure a position as market leaders in providing nutritious, affordable restaurant food to the expatriate (expat) community in Dubai. How could they communicate with the public and persuade a wider target audience of South Asian expats to adopt this healthy food choice? Should they diversify the menu to attract more customers, or would that cause the restaurant to lose its core competitive advantage of serving healthy, nutritious food? Would harnessing social media attract the expats? -
Suntech Power Holdings: How to Avoid Bankruptcy
In 2013, Suntech Power Holdings Co., Ltd. (STP) was facing the threat of bankruptcy. The chief executive officer (CEO), who had founded the company in China in 2001, was aware of the complexity and challenges of an emerging global industry (solar energy) and economy (China). Fears of energy shortages had fuelled the growth rate for the global solar energy industry, and governments in many countries had introduced subsidies for solar energy initiatives. Consequently, the company had grown from a technology start-up to the leading global producer of photovoltaic solar cells and modules in 2011. However, by 2013, the company was facing financial distress and the threat of bankruptcy. Many factors, including the fluctuating cost of silicon, difficulty finding a stable silicon supplier, the 2008 economic downturn, an uncooperative management team, and the subsequent decline in the solar energy market had caused major problems for STP. How could the CEO turn this company around and avoid bankruptcy? -
K-Pop: A Global Music Factory Fizzling Out
As shown with Psy's hit song, "Gangnam Style," K-Pop (Korean Pop) music has been successful recently, not only in Asia but also in many other countries. K-Pop's current success largely stems from its systematic production system and this new business model has changed the managerial paradigm in the entertainment industry. However, recently, there has been a growing concern that K-Pop may be just a case of short-lived hype, thus it may not have sustained success. -
A Pathway for Scotiabank's Innovation: Leveraging FinTech Partnerships
In February 2017, Scotiabank’s vice-president of digital enablement was sitting in his office at Scotiabank’s Digital Factory in downtown Toronto. He was reflecting on his recent introduction to the financial technology (fintech) company Kabbage, and on how successfully the partnership was progressing. Scotiabank’s vice-president was considering what opportunities the bank should pursue next, specifically in the area of blockchain. The Scotiabank–Kabbage partnership provided a valuable guideline for future partnerships. At the partnership’s launch, the group head of Canadian banking at Scotiabank said that the partnership with Kabbage set “an example of how banks and fintechs are working together to provide customers with a better banking experience.” However, all partnerships did not work in the same way. How could Scotiabank devise an effective partnership strategy, considering the unique contexts in different sectors and geographic markets? -
Alsea: A New CEO Comes on Board
Alsea was a Mexican-based, family-founded conglomerate operating in six countries in Latin America and Spain. It was a master franchiser for such well-known brands as Starbucks, Domino’s, and Burger King. In late 2016, after years of dramatic growth, Alsea appointed its first chief executive officer (CEO) who was not a family member or had not been involved with the company’s founding or early development. However, family members continued to occupy senior executive roles, serve on the company’s board, and hold significant shares in the company. In March 2017, the new CEO needed to decide on Alsea’s corporate strategy. He also needed to build trust with the founding family, which held a controlling interest in the firm. How should he engage the current executives in building a world-class senior management team? How could he best demonstrate his value to Alsea's board? -
A Pathway for Scotiabank's Innovation: Leveraging FinTech Partnerships
In February 2017, Scotiabank's vice-president of digital enablement was sitting in his office at Scotiabank's Digital Factory in downtown Toronto. He was reflecting on his recent introduction to the financial technology (fintech) company Kabbage, and on how successfully the partnership was progressing. Scotiabank's vice-president was considering what opportunities the bank should pursue next, specifically in the area of blockchain. The Scotiabank-Kabbage partnership provided a valuable guideline for future partnerships. At the partnership's launch, the group head of Canadian banking at Scotiabank said that the partnership with Kabbage set "an example of how banks and fintechs are working together to provide customers with a better banking experience." However, all partnerships did not work in the same way. How could Scotiabank devise an effective partnership strategy, considering the unique contexts in different sectors and geographic markets? -
Ingersoll Rand: Creating Effective Engineering and Technology Centres (A)
In 2012, Ingersoll Rand India added the position of senior director of engineering for its engineering and technology centres, which were originally established to support the product development activities of the company. The new position was established to lead the currently low-performing engineering and technology centres to a new, more efficient and effective path. Projects had been missing their delivery targets, and there were major differences in the understanding of the requirements among the strategic business unit teams. This all led to continuous changes in deliverables and resulted in customer dissatisfaction. Key employees were unhappy, and some high-performing team members had left the organization. The new senior director of engineering needed to assess the situation and determine whether he had the right organizational configuration to grow and sustain the engineering for its engineering and technology centres in Ingersoll Rand India. <br><br>The case comprises two parts: Part A describes the challenges faced by the organization overall, and Part B discusses the progress between 2012 and 2015. -
Ingersoll Rand: Creating Effective Engineering and Technology Centres (B)
Supplement for product 9B17C027. -
Agoda: People Analytics and Business Culture (A)
In the spring of 2016, the chief executive officer of Agoda Company Pte. Ltd. (Agoda), a subsidiary of The Priceline Group, Inc., wanted to transform the firm’s human resource practices using data analytics. The idea was not just to get more data, but to use this data to help managers gain insights to make better decisions. The three main focal areas of this exercise were recruitment, performance evaluation, and compensation. As key executives worked at transforming Agoda into an organization that emphasized people and development, they faced various challenges related to collecting, managing, and leveraging large volumes of data. -
Agoda: People Analytics and Business Culture (B)
Supplement for product 9B17C024. -
Tech Talk: Creating a Social Media Strategy
Tech Talk is an electronic content publishing portal that publishes articles on information and communication technologies. The articles cover specialized areas such as business analytics, e-governance, e-commerce, web technologies, big data analytics, software project management, telecommunication systems, business management theories, service science, e-payments, and Internet marketing. As a growth strategy, the co- founder of Tech Talk wants to draw traffic by creating a larger social media presence. He wants to use established strategies, and has the following questions: How should he strategize the interaction with readers on social media? With so many platforms like Facebook, Twitter, and LinkedIn, which ones should he focus on? Should he manage the social media marketing in-house or outsource it? -
Nestlé KITKAT in Japan (A): Sparking a Cultural Revolution
In 2008, the marketing manager for Nestlé Japan’s confectionery business and his team were struggling to redefine the KITKAT brand within the Japanese market. KITKAT as a brand faced a real threat as the retail environment rapidly shifted toward increasingly powerful convenience store chains and consumer preferences shifted toward more novel consumable products. With more than 200 companies competing within Japan’s crowded and relatively stable confectionery market, Nestlé Japan was facing the harsh realities of Japan’s famed position as the world’s toughest consumer market. To address these challenges, Nestlé Japan worked over 15 years to instill deep meaning in the KITKAT brand and then, based upon this foundation, created a comprehensive product portfolio. How can KITKAT capitalize on its past success as it moves forward? -
Nestlé KITKAT in Japan (B): The Roots of Premiumization
Supplement for product 9B17A037. The KITKAT team had experienced great success over the past few years by building a powerful and resonating brand and enhancing their production capabilities to enable them to adapt to changing demands from their channel partners. However, the harsh realities of a changing market demographic, and increasingly powerful convenience store chains, created a clear sense of urgency for creative solutions to continue their growth. The KITKAT team leaders felt that the ideas that had been generated in the closing months of 2007 held enormous potential to create growth through a previously overlooked retail channel. As they sat down to review the strategies, they wondered: Had they overlooked any important details that could affect their 2008 year? -
Nestlé KITKAT in Japan (C): Power of The Postal Service
Supplement for product 9B17A037. In the spring of 2009, the KITKAT team was fresh from a successful marketing campaign targeting students. After reviewing recent figures however, they realized that they had a critical decision to make regarding the fate of the overall KITKAT brand portfolio: was KITKAT too sweet for some of their older customers? How could they address this issue of taste without undermining the overall brand that they had worked so hard to create through their recent postal service campaign? -
Nestlé KITKAT in Japan (D): A Trajectory For Future Growth
Supplement for product 9B17A037. It was 2017 and the KITKAT brand in Japan was at a critical juncture. The KITKAT marketing leaders sat down for a special meeting to review how Nestlé Japan had been able to create meaning and value for their brand. However, as they began to discuss their options for future growth, they faced difficult decisions: Should they look to export the flavor variations that had become such big hits in Japan to overseas markets such as China, the European Union, or the United States? Travelers from these countries regularly bought a wide range of KITKAT flavor varieties during their trips to Japan to bring home. Or should they focus on expanding the e-commerce sales of premium KITKAT flavors? -
BRAC: Shasthya Shebikas’ Role in Delivering Health Care Service to Rural Markets
BRAC was the largest non-governmental organization in the world, reaching out to 138 million people. It made a significant contribution to reducing poverty in Bangladesh by employing more than 117,000 community workers (Shasthya Shebikas) to improve the health and nutrition of the rural poor. The manager of BRAC's Health, Nutrition and Population program was faced with two significant challenges. First, she had to find a way to encourage more people to use BRAC’s services; more than 60 per cent of the population sought the services of unqualified health care service providers, despite the significant contribution made by Shasthya Shebikas. Second, she had to bring down the 10 to 20 per cent turnover rate of the Shasthya Shebikas. -
Branding BY-HEALTH: The Value and Cost of Transparency
BY-HEALTH Co., Ltd. (BY-HEALTH), a Chinese dietary supplement company founded in 1995, had a first-mover advantage as a contemporary health supplement provider in Mainland China. It had successfully utilized this advantage to conquer a significant portion of the market. However, by early 2017, maintaining this leadership position in the market had become increasingly difficult, largely due to deteriorating public perception of consumables originating in China. BY-HEALTH had sought to differentiate itself by actively making its sourcing and production processes fully transparent to stakeholders, most notably by opening a transparent factory in Guangdong Province.<br><br>While BY-HEALTH’s transparent factory and corporate social responsibility activities developed consumer trust and positively contributed to the environment within which the company operated, they were also prohibitively expensive to maintain. It was also difficult to determine how they affected the company’s bottom line. As he prepared for a company shareholders’ meeting in January 2017, the company’s chief operating officer was faced with difficult questions. What programs should the company continue to invest in for the future? Should some of these initiatives have an end date? If they were ended, what effect would this have on the community? How could he communicate the value of the transparent factory to consumers and shareholders? -
Pepperfry.com: Marketing to Manage Customer Experience
In 2016, Pepperfry.com (Pepperfry) was India’s leading online retailer of furniture and home products. As a pioneer in the online furniture and furnishings space, Pepperfry had a first-mover advantage that led to the achievement of significant milestones within a short period. Online marketing, however, involved distinct challenges compared with traditional marketing practices. Improving customer experience at the different stages of a consumer’s purchase could be the foundational strategy to resolve these challenges. How could Pepperfry’s service design further enhance the customer experience and achieve a competitive advantage? -
Impex Kitchen Appliances: Evaluating the "Reader's Offer"
Impex, a division of the South Indian firm KCM Appliances, dealt with kitchen, household, and home entertainment appliances. KCM’s managing director needed to decide on a year-end sales promotion for Impex. One option was direct-response advertising in the Times of India newspaper, which could potentially help Impex expand its reach in India. This option was in contrast to the previous year’s promotion, which involved collaboration with distributors and retailers in the Kerala region of South India. Deciding between the two options required a quantitative analysis to estimate the incremental volume and sales revenue gained from the previous year’s promotion. Those gains could then be compared with the break-even volumes required to cover the costs of the promotion with the Times of India. Impex also needed to consider a qualitative analysis by examining the tensions created by the two options, including channel relations versus brand awareness, an existing market focus versus a future market focus, and product management versus sales management. Should Impex repeat the previous year’s tried-and-tested promotion, or pursue the Times of India offer, whereby it could sidestep its local channel partners and directly sell to consumers?