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Drishti Eye Hospitals: Balancing Financial and Social Goals
In 2011, after decades of the eye-care needs of India's semi-urban and rural population being largely ignored by both government and commercial enterprises, the corporate team of Drishti established two eye hospitals to address these unmet needs. However, Drishti faced some tough challenges in expanding its operations. Given that Drishti's hospitals were located in semi-urban and rural areas, attracting and retaining highly-trained professional staff was very difficult. Drishti also needed to consider the implications of accessing equity capital to pursue its social goals. With its business model showing positive results, should Drishti opt for rapid growth or achieve slower growth by using internally generated funds? In the pursuit of financial goals, would Drishti need to compromise on any of its social goals? -
When the Tone of an Email Went Wrong
A tense situation arose in 2015 after a faculty member at the Premier School of Management in New Delhi, India, mistakenly emailed a test paper to a group email address that included the school’s students, faculty, and alumni. An alumna who received the email responded to the professor using the “reply to all” option. The tone of her email was considered to be disrespectful to the professor. The professor responded by sending his own “reply to all,” explaining his error to the alumna and chastising her for using a tone inappropriate for a student-to-teacher communication. The alumna apologized, but one of the students on the group email then wrote his own offensive email to the alumna. Was there a way to defuse the mounting tension and avoid a possible rift between the alumna and her former school? -
Lenovo 2009: The Role of Board Chairperson in a Turnaround
Lenovo, China’s largest personal computer manufacturer, had just replaced its American chief executive officer (CEO), the third replacement since the company’s 2005 acquisition of IBM’s personal computer business. The leadership shakeup was seemingly caused by the worsening conditions in Lenovo’s key target market and the company’s subsequent disastrous financial loss, but, in reality, the reasons were more complicated. Lenovo was dealing with the most challenging internal issues that a globalizing Chinese company could experience: retaining international executives under severe distress, integrating two companies with distinct cultural roots, and dealing with changed power relations on the board, including the awkward relationship between a Chinese executive chairperson and a foreign CEO. -
Distribution Management at World Peace Industrial Group
In November 2005, World Peace Industrial Group was at an important milestone as it prepared to join two other major electronics components distributors to form the WPG Holdings and become a dominant player in its industry. As its chief executive officer prepared for the merger, it became apparent that the company’s financial position was threatened by inventory management and forecasting problems. Although sales and market share were increasing, profit margins were dropping as a result of increasing inventory costs. The chief executive officer asked the director of the Business Effective Promotion Group to resolve the worsening problem. How would the director identify the sources of weakness and recommend a plan of action as soon as possible? -
Rajwant Engineering: Survival or ethical values?
In October 2014, the owner of Rajwant Engineering Pvt. Ltd., a small-scale manufacturing business in Jamshedpur, India, needed to make some key strategic decisions. The immediate challenge was that the company had recently been asked for a bribe by the procurement manager of its most important client. The business owner was a highly ethical entrepreneur, so he was tempted to discontinue his relationship with the client on ethical grounds. However, the business was facing major financial difficulties, and the owner felt great responsibility toward his employees. The business owner wondered if he should instead compromise on his values in order to save his business from bankruptcy. -
Lenovo: Is the Cultural Integration Template Reusable?
The number and value of Chinese enterprises’ cross-border mergers and acquisitions (M&As) are increasing, but their success rate remains very low. The failure of cultural integration is one of the most important reasons. In 2005, Lenovo Group Ltd., acquired IBM’s PC division in what was called a “snake swallows elephant” acquisition that caused a sensation worldwide. During the ten years after the M&A, Lenovo integrated IBM’s PC division’s culture through several stages of acculturation, which ended with great success. In 2014, Lenovo acquired IBM’s x86 Server. Lenovo faced a challenge: Should the first acquisition’s cultural integration be replayed and copied for the x86 Server acquisition? Or should Lenovo look for a new approach? -
wetlandPOOLS: Wetlands and Blue Oceans
In 2011, the sole proprietor of wetlandPOOLS, a specialist installer of non-chemical swimming pools based in Johannesburg, South Africa, was looking at the design of his latest creation. He was satisfied with the work he had done, yet frustrated that it had taken so long to complete the project. His company had been in existence for 10 years. During that time, wetlandPOOLS had grown organically by taking on new projects as they arose. This approach allowed wetlandPOOLS to remain distinct from traditional pool builders and true to its original principles; however, its opportunities for growth appeared to be somewhat limited. The owner wondered how he could have the best of both worlds—owning a company that would operate efficiently and grow at a reasonable, sustainable pace, while also maintaining its unique nature. -
Matrix Cellular: Tapping into Innovation to Disrupt a Regulated and Saturated Indian Telecom Market
Set in July 2015, the case follows Matrix Cellular (International) Services (Matrix), a telecommunications company that forayed into the nascent cellular telephony market in India, as a retailer of mobile handsets, accessories and international SIM cards. The Managing Director and Chairman of the Risk Management Committee of the company, Gagan Dugal, identified the potential demand for international SIM cards in the Indian outbound travel market that was set to boom on the back of globalisation. MCIS bought international minutes in bulk from Mobile Service Providers (MSPs) in destination countries and retailed them through SIM cards to outbound Indian travellers. The service was an instant hit among elite travellers. Matrix, exploiting its pioneer advantage, began to strategically build its capabilities in the areas of sourcing, marketing, distribution and servicing, and expanded its product portfolio. Thus, from being a retailer of hardware and accessories, Matrix quickly evolved into a Mobile Virtual Network Operator (MVNO), trading and retailing talktime and data. From 2010 onwards, Matrix started facing intense competition from new market entrants and mainstream MSPs. Additionally, events that affected the outbound travel industry also impacted Matrix. Realising its twin identity as a telecom and travel company, Matrix launched additional services - forex cards, travel insurance and VAT recovery. While the services did not significantly contribute to the revenue of the company, they did add to the attractiveness of the company's competitive advantage. Amidst intensified competition and faltering revenue, Dugal and his team had to tap into their core resources to innovatively disrupt the market yet again, but how? -
Moshi Looks to Popularize Fusion Fare in Dubai
Moshi, a fusion restaurant in an upmarket area of Dubai, had carved out a niche for itself with its unique menu, high-quality food, and excellent service—all offered at a reasonable price. As the young owner planned to launch another outlet, he pondered his options for growth. Was it time to create a chain, or should he give the new outlet a completely different feel and target a specific customer segment? Should he increase his product range or stick with his unique offerings? Because of its fusion theme (Nepalese cuisine and Japanese sushi), Moshi did not have a clear positioning in terms of its menu. Would Moshi’s unique offerings be enough to sustain its continued existence in Dubai’s competitive restaurant industry? Would this business be scalable? The owner had relied on word-of-mouth publicity thus far; however, was this method adequate? What sort of marketing strategy should he adopt? -
Fraud at Bank of Baroda: Manage Risk or Manage Crisis
Bank of Baroda was the second-largest commercial bank in India, but it was struggling with a decline in profits and an increase in non-performing assets. Only a week before the new chief executive officer's term commenced, Bank of Baroda was in the news due to reports of fraud occurring at the bank’s Ahmedabad and New Delhi operations. The frauds involved bill discounting schemes and money laundering. The bank’s violations of its know your client and anti-money laundering standards raised concerns about its risk management practices—or lack of such practices. The new chief executive officer was only the second executive from the private sector to head a public sector bank. He needed to prove his value in the world of public sector banking by managing the crisis, implementing a strategy to stabilize the bank’s financial health, and preventing a recurrence of the problems. -
Ramcides: Growing Pains at an Emerging Market SME
During the Holi festival in March 2012, the managing director of Ramcides, a family-run agrochemical business, was considering the path of the company that his eldest brother had started in 1973. Ramcides had a goal to achieve US$50 million in revenues by March 2014 and $130 million in the following five years. The managing director reflected on whether the company was on the right path towards achieving that objective. Much had changed since an infusion of private equity from a venture capital firm in 2008, but there was still much to be done. There was also the matter of the venture capital firm’s planned exit, and where the company would then secure additional funding. All the stakeholders were clear on promoting the future growth and success of Ramcides, but the next three to five years were a critical time of transition. What needed to be done to ensure continued success? The current manager viewed himself as the managing director in transition—the bridge between Ramcides’s history as a family-run firm and its future as a professionalized agrochemical company. -
Summitry and Global Order
Today, the world's biggest challenges-from financial (in)stability to immigration, health, the environment, terrorism and food safety- are global in nature, and their solutions demand global thinking. The authors argue that modern summitry is one of the best ways to addresses such 'spillovers'. The philosophical foundations of arrangements to achieve consensus among otherwise sovereign states as they deal with joint problems is imbued with idealism, they say, and the advance of globalization has only made such collaboration a higher imperative. While the architecture of a new global order remains a question, they maintain that one thing is certain: summitry will have a continuing and crucial role to play. -
Din Tai Fung: The Art of the Dumpling (Traditional Chinese version)
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER - Best Teaching Case Studies Award at the Decision Sciences Institute (DSI)</strong></p><br>In 2014, as one of the most well-known Taiwanese cuisine brands, Din Tai Fung operated more than 100 restaurants around the world. Attracted by its signature xialongbao (soup dumpling), long queues of customers at Din Tai Fung’s storefront were a common sight. Requests for partnerships for global expansion were constantly arriving. Customer feedback from overseas, however, suggested a notable gap in service quality between the overseas and Taiwanese branches. The demand for support by overseas branches had also surged significantly due to the fast pace of growth in recent years. The company’s chief executive officer had deferred his plan to open the 10th branch in Taiwan. Nevertheless, plans to open new branches in overseas markets were enthusiastically evaluated by existing partners. Two new potential partnership offers from Dubai and the Philippines were being aggressively pursued. What was the best way to cope with the increasing number of requests for support from overseas branches and to ensure high quality? Should Din Tai Fung approve the two overseas offers for partnership that seemed promising? What was the best overseas expansion strategy? -
Sustainable Growth at TerraCycle: Should Manufacturing Be Moved?
As of April 2012, TerraCycle had witnessed exponential growth over the past few years due to its unique value proposition of creating a line of consumer products out of trash. With continued global expansion, the firm’s biggest challenge was how to move forward while staying true to its mission to eliminate as much waste as possible from landfills, make fun products that consumers liked, and turn a profit. Operationally, TerraCycle was losing money on every domestically manufactured product and was regularly late on delivering its shipments to a major retail customer. All signs indicated that the company should move some of its manufacturing to an offshore location; however, TerraCycle had built its reputation on its strict adherence to the principles of sustainability, and such a move could cause a significant public-relations problem. There was little time to act, as orders from Walmart and Target were piling up. Should the CEO move some of TerraCycle’s production to China? -
Building a "Backdoor" to the iPhone: an Ethical Dilemma
In February 2016, Tim Cook, Apple’s chief executive officer, challenged a U.S. Federal Court order for Apple to assist the Federal Bureau of Investigation (FBI) in a case involving suspected international terrorism. The government wanted Apple to provide the FBI with access to encrypted data on an Apple product, the iPhone. Cook's refusal to acquiesce to the government's demands drew strong public debate, pitting the proponents of national security against those in favour of customers’ digital privacy and security. The case invoked an ethical dilemma faced by management in issues involving right-versus-right decisions. Which right should Cook choose? What are the ethical dilemmas involved in making this decision? How should Cook resolve the dilemma? -
Li-Ning Co. Ltd.: A Leading Chinese Company Stumbles
In 2012, Li-Ning Co. Ltd. (LNCL) was the third-largest sportswear company in China in terms of revenue, after international brands Nike and Adidas. Following its highly successful founding in 1990 by China’s Olympic champion and company namesake, Li Ning, the firm attempted to formalize its organizational structure and establish a professionally managed organization, while dealing with the rise of well-established international sportswear brands in China like Nike and Adidas. By 2013, however, the company’s performance had started to decline. LNCL found itself caught in a tough spot, with profit margins falling as the company was squeezed between international and local sportswear brands. Furthermore, its aggressive past expansion had resulted in heavy expenditures in market promotion, large unsold inventories, and low operational efficiency. What should the new leadership team do to turn around the company’s performance? -
Diamond Developers: Measuring Sustainability
In late 2014, Diamond Developers was building Dubai’s first large sustainable city, which was a mixed-use community designed to set new standards in environmental sustainability in the Middle East and beyond. As the project neared completion, the company’s co-founders needed to decide how to measure the development’s sustainability performance. Existing sustainability rating schemes had faced heavy criticism and were not easily applicable in Dubai’s desert climate. The co-founders therefore needed to determine whether the company should adapt one of the existing measurement systems or design its own sustainability performance measures. Regardless of the measurement system the company chose, the co-founders needed to decide how to define, measure, and manage sustainability as part of a unique real estate development project. -
Netflix: International Expansion
Netflix adopted an aggressive growth strategy to establish itself as a global force in the video streaming industry. To solidify its position as an industry leader, Netflix invested heavily in the production of in-house content. In January 2016, to deal with slow growth in the domestic market, the company announced an aggressive expansion of its services into a total of 190 countries, thereby giving Netflix coverage over nearly the entire world. International expansion did not come without its challenges. Netflix faced regulatory compliance issues in its targeted markets, competition with domestic competitors, and the need to satisfy local preferences. Was the enormous cost of such an aggressive expansion strategy the right direction for the company? -
CPT: The Constant Hunt for Entrepreneurial Opportunities
After continuous business growth and taking advantage of new business opportunities, China Precision Technology Group transformed from a small producer of coils for television tuners to an enterprise with five different business sectors: consumer electronics, automobile parts, optical, health care, and stamping equipment. In 2014, on the company’s 24th anniversary, the company’s founder and chief executive officer was evaluating the achievements of each business and considering the concerns of each sector’s employees. He understood that some problems were associated with the transformation strategy developed four years earlier, in 2010. The business development of the five business sectors had been uneven, with varying levels of profitability. He hoped to list some of the enterprise’s businesses on a stock exchange but now wondered how to move the company forward along the transformation path it had established. -
ROQ.AD and the Ad-Tech Industry
By August 2015, Berlin-based advertising technology venture Roq.ad had grown from a chance encounter between its two co-founders to become a revenue generating operation with 18 full-time employees in Germany and Poland -- in just 10 months. Their goal was to develop new cross-device, user-recognition technology that would enable advertisers to accurately target consumers across a range of devices such as personal computers and peripheral devices. Roq.ad’s co-founders had decided from the beginning not to seek out venture capital and instead to retain tight control of their business. Given the lead time needed to develop technology, they had also decided to use an industry-standard agency model for generating revenues that would be used to fund the development of technology and the eventual launch of the program. As Roq.ad approached the end of its first year in business, the co-founders faced an important strategic challenge: How could they successfully transform the company from its initial mobile-advertising agency model to become Europe’s number one provider of cross-device, user-recognition technology?