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Din Tai Fung: The Art of the Dumpling
<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? -
uberPOOL
This case describes Uber's uberPOOL service, which let multiple Uber users who were headed in the same direction share a ride and pay substantially lower fares. -
Essent: From a State-Owned Utility to a Commercial Company
Patrick Lammers, Chief Commercial Officer (CCO) for the Dutch energy company Essent NV, once a state-owned company, was pleased with the progress Essent's consumer ("B2C") business had made: Earnings Before Income Tax (EBIT) for B2C had gone from a loss of €18 million in 2010 to a profit of €149 million in 2014; churn rates had decreased, and customer satisfaction had increased. The B2C brand had become a leader in the fully liberalized Dutch market. Behind B2C's performance there had been a strong focus on marketing, an optimization of the channel mix, and also changes in the company's operations by adopting lean management tools. Despite the strong performance of Essent's B2C business, Essent's B2B business had instead seen its profits drastically decrease from €47 million in 2011, to minus €15 million in 2015. For 2016, B2B expected to report €15 million losses. While pondering the reasons behind the difference in performance between B2B and B2C, Lammers wondered what Essent should do to improve its B2B business. -
Recruit Japan: Harnessing Data to Create Value
Recruit Holdings, Japan's largest staffing firm and a leading marketing media company started out in the early 1960s as an advertising company publishing magazines for jobseekers. It scaled up over the following decades to add business verticals such as real estate, bridal, travel, beauty salons and restaurants. Spurred by the internet revolution in the early 2000s, Recruit launched job boards and websites for its diverse media businesses while also moving content online by digitizing many of its popular magazines. In the early 2010s, it transitioned into becoming a service provider with the launch of a number of web-based platforms that allowed SMEs to digitize several key activities, such as point-of-sale registers, reservations and payments. By 2015 Recruit's digital platforms had gained significant popularity and the company was generating enormous amounts of online data on types of transactions, end-user behaviors and SME business characteristics. It also held significant deep offline data that resided within the sales team. However, the platforms and the data was specific to individual businesses. Recruit began to push for a unified backbone platform that would cut across all businesses with vertically stacked integrated solutions. It also established an artificial intelligence (AI) research laboratory in Silicon Valley. The mandate was to apply the latest technologies in data analytics, machine learning and AI to achieve breakthrough innovation. At the same time, Recruit harbored global aspirations and embarked on international expansion, mainly through acquisitions. Its goal was to become the world's largest staffing firm by 2020 and the largest media company by 2030. Could Recruit replicate its business model successfully overseas? Could it leverage its people and technological platforms to transform itself into a truly global internet corporation? Could it cannibalize its existing businesses through data-driven innovations to leapfrog into the future? -
Accounts Payable at Rockwell Collins: Process Simulation Model Note
The note provides documentation of a process simulation model that was prepared to simulate the invoicing work of 16 accounts payable analysts described in the case "Accounts Payable at Rockwell Collins" written by Professor Philip C. Jones, Tippie College of Business, University of Iowa. -
Recruit Japan: Harnessing Data to Create Value (Abridged)
Recruit Holdings, Japan's largest staffing firm and a leading marketing media company started out in the early 1960s as an advertising company publishing magazines for jobseekers. It scaled up over the following decades to add business verticals such as real estate, bridal, travel, beauty salons and restaurants. Spurred by the internet revolution in the early 2000s, Recruit launched job boards and websites for its diverse media businesses while also moving content online by digitizing many of its popular magazines. In the early 2010s, it transitioned into becoming a service provider with the launch of a number of web-based platforms that allowed SMEs to digitize several key activities, such as point-of-sale registers, reservations and payments. By 2015 Recruit's digital platforms had gained significant popularity and the company was generating enormous amounts of online data on types of transactions, end-user behaviors and SME business characteristics. It also held significant deep offline data that resided within the sales team. However, the platforms and the data was specific to individual businesses. Recruit began to push for a unified backbone platform that would cut across all businesses with vertically stacked integrated solutions. It also established an artificial intelligence (AI) research laboratory in Silicon Valley. The mandate was to apply the latest technologies in data analytics, machine learning and AI to achieve breakthrough innovation. At the same time, Recruit harbored global aspirations and embarked on international expansion, mainly through acquisitions. Its goal was to become the world's largest staffing firm by 2020 and the largest media company by 2030. Could Recruit replicate its business model successfully overseas? Could it leverage its people and technological platforms to transform itself into a truly global internet corporation? Could it cannibalize its existing businesses through data-driven innovations to leapfrog into the future? -
Rebels with a Parent Company
Conventional international business strategy preaches the need for subsidiaries of multinationals to align themselves with the agenda set by headquarters. But believing corporate parents always know best is a mistake. Although subsidiaries tend to seek approval of initiatives via dialogue with headquarters, there are also “maverick” subsidiaries that pursue independent initiatives covertly. And the author’s qualitative research on factors influencing independent subsidiary initiatives has found that maverick behaviour can deliver superior business results. <br><br>Whenever HQ has a different interpretation of local conditions, subsidiary managers tend to see their own assessment as superior (often rightly so). This situational awareness illustrates one of the pitfalls of the command-and-control approach adopted by most headquarters. Subsidiaries that fail to meet performance metrics established by headquarters tend to be subjected to more oversight than subsidiaries that beat expectations. As a result, rebel managers at these subsidiaries can be driven to covertly pursue independent subsidiary initiatives in a quest to show that they can deliver superior business results through more autonomy. Although sanctioned and unapproved subsidiary initiatives can deliver success, the independent initiatives the author has studied demonstrate that subsidiary managers tend to go rogue because they see it as a path to superior results. Subsidiaries should not, of course, be granted absolute freedom. After all, the trust handed to subsidiaries that beat expectations can transform into complacency. Nonetheless, there is a need for a better mixture of central control and local autonomy so that subsidiaries can be agile as multinationals continue to expand into new markets and monitoring becomes more difficult. -
Introduction
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. Chapter 1, Introduction (10 pages), explores the benefits of supply chains as well the inherent risks. While the increased global connections in a supply chain can provide greater cost efficiency, they also expose the system to a greater risk from disruptions like piracy, natural disasters, and epidemics. The author explains that, since a supply chain is often based on a "just-in-time" delivery, a problem in one section can throw off the entire process. Thus, he advises managers to incorporate flexibility into a supply chain, by methods such as diversified product sourcing, multiple transportation routes, and other contingency planning. He highlights the importance of anticipating unexpected consequences and categorizes risks into internal (such as government regulations and organizational delays) or external (such as market trends and political events). He provides a detailed discussion of examples in each risk category. -
Supply Chain Risk Management Process
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 2, Supply Chain Risk Management Process (18 pages), the author describes how modern supply chains have evolved in complexity due to the growth of global competition and technological change. He contends that the importance of risk management has grown accordingly, becoming part of part of organizational strategy and planning. He presents a basic model for risk management in four steps: identification, assessment, avoidance, and mitigation. He describes how risk mitigation focuses on the source of risk and outlines four areas of risk: supply, demand, products, and information, and provides examples for each. He also considers four methods of supply chain coordination, including Vendor-Managed Inventory (VMI) and continuous replenishment. He highlights examples of supply chain disruption due to natural disasters and provides nine coping strategies, including postponement, economic supply incentives, and dynamic assortment planning. -
Risk Matrices in Supply Chain Risk Management
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 3, Risk Matrices in Supply Chain Risk Management (14 pages), the authors discuss how to use a matrix planning tool and rating system. He considers risk identification and present an enterprise risk management framework to assist managers in approaching different risk types, such as legal, market, and operational. He explains how a risk matrix can help a manager determine the probability of success and identify areas that need attention. He demonstrated the matrix, reviews the challenges in using it, and then presents detailed analysis of several examples of decision-making with a matrix. -
Supply Chain Selection Decisions
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. Chapter 4, Supply Chain Selection Decisions (18 pages), reviews how to organize decision-making criteria when selecting sources, channels, or routes in a supply chain. The author reviews the creation of a value hierarchy to assess the risks involved in supply chain selection decisions. He considers decisions made on multiple criteria and explains each step in a simple multi-attribute rating theory (SMART). He illustrates this technique through a detailed example of a sourcing decision. He also provides examples of the supplier segmentation process and product design selection. -
Simulation of Supply Chain Risk
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 5, Simulation of Supply Chain Risk (16 pages), the author outlines basic concepts in modeling risk. When risks can be based on probability, he advises managers to use a Monte Carlo simulation and provides an example based on a military supply network. He demonstrates how to use Net Present Value (NPV) model and presents an example where levels of funding are uncertain. He also consider risk management for inventory systems and models a basic simulation using Crystal Ball to analyze data. -
Supply Chain Management Risk Models
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. Chapter 6, A Simulation of Supply Chain Risk Models (12 pages), focuses on a Monte Carlo simulation used to manage the risks of selecting supply vendors. The author uses vendor data to demonstrate in detail how a simulation can frame the uncertainties in the decision-making process. He also explains the need for a program such as Crystal Ball in the simulation. He explains how to use the Value at Risk (VaR) Concept to determine risk exposure in a supply chain and provides an example of a vendor selection model. The chapter ends with a real-world example of a furniture supply chain. -
Optimization Models in Supply Chain Risk Management
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 7, Optimization Models in Supply Chain Risk Management (22 pages), the author presents linear programming as a tool for operations management. He reviews different model types, such as product mix, blending, and transportation, and the corresponding variables, functions, and constraints. He provides detailed analysis of the components in linear programming through an example of a petroleum shipping supply chain, reviewing the solution, assumptions, and complications of the model. He also explores the metals production industry to show the potential of optimization models and outlines two real-world examples. First, how one company built a decision support system (DSS) to minimize costs. Second, how a mixed integer programming model optimizes medical supply transportation. -
Balanced Scorecard in Supply Chain Risk Management
Supply Chain Risk Management Tools for Analysis, Second Edition, is an eight-chapter book published by Business Expert Press in 2014 and written by David L. Olson, James & H. K. Stuart Professor in Management Information Systems and Chancellor's Professor at the University of Nebraska. In this book, the author explores the growth of global supply chains as well as the risks associated, such as political unrest and natural disasters. He highlights the importance of managing risk in a supply chain and outlines the categories of risk that managers must consider. He presents several quantitative tools and methods for risk management with extensive real-world examples and detailed models that have been updated in the new edition. In Chapter 8, Balanced Scorecard in Supply Chain Management (14 pages), the author explores tools to monitor organizational progress. He explain the basics of a balanced scorecard, selecting four strategic elements to measure, and add the SMART approach as a way to gauge performance within the scorecard framework. He outlines guidelines for using balanced scorecard for supply chain management, linking risk management to strategic performance. He provides detailed analysis of using both a balanced scorecard and SMART for supply chain management, including examples from construction contractors, port authority, and petroleum businesses. -
Indigo Agriculture
Indigo Agriculture had successfully developed and launched its first commercial product, microbe-enhanced cotton seeds, on an accelerated product development timeline. In late 2016, as the company was about to launch their second product, winter wheat, the management team proposed to again accelerate their development timeline and introduce six new products in four countries within the next 12 months. The CEO and Director of Business Development met to discuss the feasibility of accelerating their timeline, potential bottlenecks in the product development process, resource management, and the potential need for a more formalized development process. -
Product Development Fundamentals
This note introduces key managerial issues in new product development. It describes the product development funnel and alternative approaches to structuring product development teams including functional, lightweight, heavyweight, and autonomous/dedicated teams, which vary in their capacity to manage integration. More formal product development approaches including the stage-gate process and critical-path method are described, as are agile methods and principles-and related tools such as scrum, extreme programming, feature-driven development. Product development metrics including lead time, capacity, and productivity are defined and discussed. -
Ace Designers - Competing Through Process Improvement
This case provides an opportunity to perform value stream mapping for an assembly line and use the same to identify inefficiencies and areas of improvement in the operations processes using VSM. It features a manufacturer of machine tools who has recently doubled the throughput rate one of the assembly lines, through half-day indexing. Amid cut throat competition, the firm needs to reduce costs throughout the plant and therefore the case prods students to come up with further process improvements the firm could implement, before adopting the half-day indexing to other assembly lines in the plant. -
The Case Against Long-Term Incentive Plans
Despite their popularity, pay-for-performance incentives haven't worked as well as proponents had expected. Research by Alexander Pepper, of the London School of Economics, identifies four reasons why: (1) Executives are more risk-adverse than financial theory suggests, so they don't see the at-risk portion of their pay packages as very valuable. (2) They discount heavily for time, so they don't assign much worth to long-term incentives. (3) They care more about relative pay--creating an arms-race mentality that drives packages higher. (4) Pay packages undervalue intrinsic, nonmonetary motivations to work--and many executives would happily take less pay in exchange for a job that was better in other respects. What should companies do in response to these findings? Pepper suggests, among other steps, eliminating long-term incentive pay, raising salaries, and using annual cash bonuses to encourage desired behaviors. "You can pay executives considerably less in total--but do it in a different way," he says. -
3D Printing at Imaginarium: If You Think It, We Can Build It
This case presents an instance of the challenges faced by a firm that has adopted a rapidly evolving technology that is novel, yet non-proprietary. The case focuses on a small, pioneering firm (Imaginarium) in a developing country (India) which has evolved using 3D printing technology extensively. The case views Imaginarium in three phases. Imaginarium 1.0, the first phase relates to the period when jewelry prototyping services was the primary offering of the company; Imaginarium 2.0 refers to the current phase of the firm in which the firm has diversified its offerings and clients from jewelry to industrial prototyping and even small-batch manufacturing in various, often unrelated, verticals. In this phase, Imaginarium has also been involved in advising its clients in the design and development of their parts towards adopting 3D printing. Imaginarium 3.0 represents the next phase that needs to be decided. The case takes the perspective of Ankit Mehta, the promoter of Imaginarium. Mehta has various options: (a) sell-off the firm, (b) maintain status quo and grow along some more verticals with the same level of client engagement, and (c) grow more capabilities towards becoming an integrated service bureau. The case dwells on (1) What are the opportunities and benefits that 3D printing technology has brought forward? (2) How do firms that have evolved around 3D printing remain sustainable? (3) How do firms that have probably not adopted 3D printing but are now part of the 3D printing ecosystem, remain sustainable?