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DHL Global Forwarding: Consolidation Program
On October 13, 2015, the regional director of DHL Global Forwarding (DGF) was reviewing reports in preparation for a team meeting in Bengaluru, India. DGF provided air and ocean freight forwarding services. In September, the regional director’s team had successfully rolled out a new consolidation program in three Indian cities: Hyderabad, Bengaluru, and Chennai. While glancing through the respective consolidation teams’ reports, however, several questions occurred to the director: Was DGF paying more to airlines on specific days of the week in these three cities? Should the company continue to run the consolidation program in these locations? How could DGF consolidate its clients’ requirements across these cities? Would such consolidation benefit the company? The director had just one day to come up with a new plan for presentation at the next team meeting. -
DeliverMeal Ivory Coast: Addressing Headquarters' Demands
In 2015, DeliverMeal was a Norwegian online food delivery firm, mostly present in what could be considered emerging markets such as those in Africa. Founded in 2010, the company had experienced extremely rapid international expansion. DeliverMeal followed a global strategy, and standardized processes and turnkey solutions were provided from the headquarters to the subsidiaries.<br><br>The local business development manager at DeliverMeal’s Ivory Coast subsidiary needed to make some decisions on how to react to three demands that had recently been passed down from corporate headquarters, all of which were at odds with the West African environment. How could the Ivory Coast manager meet her headquarters’ corporate expectations and still conduct successful business operations within the local cultural context? -
DeliverMeal Ivory Coast: Addressing Headquarters' Demands
In 2015, DeliverMeal was a Norwegian online food delivery firm, mostly present in what could be considered emerging markets such as those in Africa. Founded in 2010, the company had experienced extremely rapid international expansion. DeliverMeal followed a global strategy, and standardized processes and turnkey solutions were provided from the headquarters to the subsidiaries.<br><br>The local business development manager at DeliverMeal's Ivory Coast subsidiary needed to make some decisions on how to react to three demands that had recently been passed down from corporate headquarters, all of which were at odds with the West African environment. How could the Ivory Coast manager meet her headquarters' corporate expectations and still conduct successful business operations within the local cultural context? -
The Taxi Wars and KITT Pvt. Ltd.
By 2016, the Indian taxi market was beginning to move from the unorganized sector to the organized sector, as evidenced by the emergence of radio cab services (cab operators that hired salaried drivers and used call centres for bookings) and cab aggregators (e.g., Uber and Ola Cabs). Initially, the market had only a few players, but the competition turned fierce after the entry of Ola Cabs and Uber led to major disruptions. None of the aggregators had yet achieved a positive bottom line, but industry reports and a speculated compound annual growth rate of 25-30 per cent suggested a bright future for the industry, provided the stakeholders could strategically tap into the opportunities. A small taxi firm, Kanika International Tour and Travel Pvt. Ltd. (KITT), needed to come to terms with its falling market share, difficulties in retaining drivers, and decreasing profitability. In light of the intensifying competition, should KITT and other independent players hold on to their business, or should they join the aggregators? -
The Taxi Wars and KITT Pvt. Ltd.
By 2016, the Indian taxi market was beginning to move from the unorganized sector to the organized sector, as evidenced by the emergence of radio cab services (cab operators that hired salaried drivers and used call centres for bookings) and cab aggregators (e.g., Uber and Ola Cabs). Initially, the market had only a few players, but the competition turned fierce after the entry of Ola Cabs and Uber led to major disruptions. None of the aggregators had yet achieved a positive bottom line, but industry reports and a speculated compound annual growth rate of 25–30 per cent suggested a bright future for the industry, provided the stakeholders could strategically tap into the opportunities. <br><br>A small taxi firm, Kanika International Tour and Travel Pvt. Ltd. (KITT), needed to come to terms with its falling market share, difficulties in retaining drivers, and decreasing profitability. In light of the intensifying competition, should KITT and other independent players hold on to their business, or should they join the aggregators? -
Sapmer: Strategic Growth and Its Financial Implications
SAPMER SA was a Southern Ocean fishing company started by three Réunion Island entrepreneurs with one ship in 1947. The company grew from an entrepreneurial venture to a corporate acquisition, then back to a beloved family business not expected to make much money. But in 2006, SAPMER SA tested the waters with a new tuna venture. The venture was successful, but the company saw a better long-term opportunity in occupying a niche position. SAPMER SA launched a strategic rebirth with a five-year plan to develop a new segment: super-frozen tuna fishing and processing in the Indian Ocean, addressing premium Asian markets in sashimi, tataki, and tuna loins and steak. SAPMER SA’s strategy resulted in strong performance, but in early 2013, when examining the financial records and the terms for purchasing newly acquired ships, the owner could see challenges ahead. To manage the challenges, the owner needs to know the reason for the improvement in return on equity, what potential problems could be identified from a DuPont analysis of the financials, and what bottlenecks to anticipate in the coming years. -
Haiti: Energizing Socio-Economic Reform
The minister of Haiti’s Department of Energy Security needed to prepare a presentation for the country’s prime minister that proposed a solution for transforming Haiti’s energy infrastructure. Haiti wanted to attract foreign direct investment that would spur socio-economic reform; however, the opportunities depended on a solid energy infrastructure providing reliable electricity to businesses, which Haiti did not have. Also, the residents of Haiti were in dire need of a low-cost, reliable energy solution that would allow them to move away from biomass and petroleum products, which were expensive and bad for the environment. How should the minister structure his proposal? What criteria would be required to support a strategy that considered the energy value chain, types of public-private partnerships, and need for socio-economic reform? -
Lie, Cheat, and Steel: Governance and Scandal at ThyssenKrupp
On March 7, 2013, ThyssenKrupp Group CEO Heinrich Hiesinger was shocked to receive a resignation letter from Gerhard Cromme, chairman of the company's supervisory board. Hiesinger had been CEO since 2010. Early in his tenure, ThyssenKrupp incurred massive losses from disastrous steel investments and faced allegations of colluding with other companies to fix prices in its railway steel operations. As a result, Hiesinger had been forced to dismiss three executive board members, one for violating company policy. After a supervisory board member also was dismissed for violating company policy, the company's offices were raided in an investigation of price-fixing in steel contracts to the automotive industry. Cromme had been sharply criticized by shareholders and analysts as an impediment to the cultural, strategic, and governance changes Hiesinger was trying to make to address the scandals at ThyssenKrupp, but for months he defiantly had resisted calls for his removal. With no warning, he resigned without naming a successor or creating a plan to select one. Now that he no longer needed to deal with the distractions created by Cromme's presence, Hiesinger was free to finalize a plan to address the defects in ThyssenKrupp's governance. -
Burberry's New Challenges
In 2014, Burberry’s new chief executive officer was facing a changing environment and digital disruption in the luxury fashion industry. The Burberry brand image had improved considerably over the past decade. However, several changes within the fashion world had had a significant impact on the overall luxury fashion industry. Fast fashion, digital technology, and new communication channels had changed the way the world’s leading luxury brands operated. The industry experienced financial growth year-over-year, and Burberry and other luxury brands continued to be the industry trendsetters. However, the luxury companies were slowly losing some of their power and control over their brand image, both artistically and financially. Burberry’s business strategy needed to adapt to this changing environment, respond to the latest global fashion trends, and improve the communication of its brand. Should Burberry lead or follow with regard to making changes to its stores and fashion shows, dealing with fast fashion, and integrating a clear digital strategy as part of the company’s marketing strategy? -
Mawlyngot’s Tea Growers' Cooperative
In 2003, Mawlyngot Tea Growers’ Cooperative Society (MTG), a village cooperative in Meghalaya, India, was spearheaded by a local teacher who wished to lift the village’s people up from poverty, transform their lives, and improve their economic condition. The cooperative started with just a few farmers from the village, but by the end of 2013, the village was growing tea on nearly 90 hectares of land, involving almost all 45 households of the village. <br><br>Although MTG was a successful model of cooperation for income and social well-being, competition was increasing in the tea market as local players and big multinationals expanded their offerings in the region. In competing for market share, MTG did not want to compromise on its farming practices, which were 100 per cent sustainable and organic. MTG also wanted to build its brand. The cooperative needed to reposition and grow to expand its capacity, sales, and market presence, but the founder was uncertain how to proceed. -
Attrition at Silver Spark Apparel Ltd.
Silver Spark Apparel Ltd. (SSAL), established in 2004 near Bangalore, India, was a wholly owned subsidiary of Raymond Ltd. The plant had significant expertise in the manufacturing of jackets. SSAL faced a significant challenge when it came to the attraction and retention of workers, with the predominantly female workers often citing family issues as a reason for quitting. In order to combat attrition, SSAL’s head of human resources had initiated various employee engagement initiatives that had helped the company reach fourth place in manufacturing and production among “India’s Best Companies to Work For, 2014.” Nevertheless, the high rate of attrition had not been stemmed, and the data for the first quarter of 2015 was alarming. -
Blossom Inners: Designing Nonsensual Communication for Lingerie Marketing
Until 2014, Blossom Inners Pvt. Ltd. (Blossom), a leading lingerie brand in India, had followed the accepted standard of advertising lingerie with images of skin-revealing models. Influenced by their personal philosophy and concern about increasing crimes against women, the company’s directors decided to break from the time-tested lingerie industry standards of communicating with sensual appeal. According to the managing director, Blossom would gain moral support from its customers by being the first in the industry to do away with body-revealing advertisements; however, sales figures dropped to low levels, senior marketing employees left the company, and customer service was flooded with calls. The directors, who were determined to stick to their plan, approached an innovative designer to create a new marketing strategy. Could this new advertising partner help Blossom stem its declining sales? What information should be included in the brief given to the designer? How could the designer advertise Blossom’s lingerie while honouring the directors’ philosophy? -
The Vanca: Reworking Digital Marketing Strategy
Since its inception in 2011, The Vanca, an Indian e-commerce brand selling women’s Western apparel, had come a long way. After overcoming initial problems typical of many entrepreneurial start-ups, The Vanca made significant progress in terms of sales. However, its brand-building activities had not been very successful. Having concentrated entirely on online digital marketing, the company did not see the expected results. The digital space offered many opportunities, but it was replete with cases of promising companies facing failure. In addition to the dynamic nature of the online retail space, there were new government regulations in India as of March 2016, which restricted online retailers in many ways, in an attempt to bring order to the previously unregulated industry. Accordingly, in May 2016, The Vanca hired a specific digital marketing manager with the goal of reworking the brand’s digital strategy. The company's management knew that multiple marketing issues needed to be addressed in order for The Vanca to achieve success. -
Tesco: From Troubles to Turnaround
In 2016, Tesco PLC, a leading U.K. retail chain, had undergone tremendous financial turmoil. Profitability had been decreasing since 2013 with heavy losses registered during fiscal year (FY) 2014/15. Net profit had decreased by 304 per cent from 2012 to 2015. However, after the appointment of a new chief executive officer in 2014, Tesco managed to register a net profit of £138 million in FY 2015/16: an astonishing turnaround. Evidently, Tesco was recovering from its losses, but the share price of the company had fallen by more than 20 per cent from 2015 to 2016. What course of action would enable Tesco to maintain and improve its value for shareholders? What areas should the chief executive officer focus on in order to change Tesco’s financial performance? -
Arcenciel: Transforming Threats into Opportunities
As a Lebanese non-governmental organization, Arcenciel (AeC) had successfully created several sustainable development programs and projects that addressed the needs of marginalized populations in Lebanon’s society. At the same time, AeC based its activities on an economic strategy that guaranteed financial independence from donations and public funding. This social entrepreneur had been able to develop and adjust its strategy in a very challenging environment over the course of several decades, successfully bridging the gap between non-profit objectives and the necessity to be financially profitable. In December 2015, the organization was about to win a prestigious national peace award in recognition of its research and activities. Government institutions, municipalities, and individuals alike had recently sought AeC’s assistance in dealing with a waste-management crisis. Although this project represented a useful opportunity for AeC to communicate its vision, the co-founder wondered whether the organization was prepared to assume a larger role in Lebanon or, even further, to introduce its concept abroad. He needed to think carefully about AeC’s evolution as well as its past success factors and the possibilities for expansion. -
IXSIR Winery of Lebanon
In the summer of 2016, the general manager of IXSIR Winery of Lebanon (IXSIR)—a young winery in Lebanon that offered customers a new level of quality by producing wine from a mixture of grapes harvested from different terroirs—received news of a bomb striking Beirut. IXSIR had been facing challenges competing in the unstable and risky local market, and the general manager realized that the bombing signalled rougher economic times ahead and likely a decrease in wine consumption. He was concerned about how the political unrest in the country could negatively impact wine sales and started thinking about different ways to tackle the threat of an ongoing economic downturn. He also wondered how to mitigate a potential decrease in revenue. Should IXSIR pursue revenue-generating activities such as oenotourism or diversify into different products? -
Kaffeine: The Nepalese Cafe Opportunity
In early 2013, three young Nepalese entrepreneurs were deciding whether to launch Kaffeine, the first of a large chain of coffee shops, in Kathmandu, the capital city of Nepal. As experienced entrepreneurs, the partners were interested in a recently vacated location near Durbar Marg, a major street and shopping destination in Kathmandu that represented a unique opportunity to build a highly successful coffee chain. Coupled with the increasing trend in Nepal toward coffee drinking rather than tea, this was an opportunity the trio felt they could not pass up. The entrepreneurs had many things to consider, such as location, competition, target market, and how to measure the feasibility of this new venture. -
Impex Kitchen Appliances: Evaluating the "Reader's Offer" (Hard), Student Spreadsheet
Student spreadsheet (hard) for case W17145. -
Impex Kitchen Appliances: Evaluating the "Reader's Offer" (Easy), Student Spreadsheet
Student spreadsheet (easy) for case W17145. -
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?