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Tata: Leadership With Trust
The case illustrates the opportunities, challenges and trade-offs involved in the design, evolution and institutionalization of corporate social responsibility (CSR) and corporate sustainability (CS) within the Tata Group, an India-based indigenous multinational enterprise (MNE) with a unique 140-year old commitment to the community as the key stakeholder of business. Despite the 2008-2009 global recession, the Tata Group topped the economic value creation charts. In 2008-2009, the Group had grossed US$70.8 billion in revenues; 64.7 per cent of the Group's revenues were now coming from outside India. Its 96 independent companies spanned seven sectors: information systems and communications, engineering, materials, services, energy, consumer products and chemicals. Economic turbulence had put a break on social and environmental investing for many other companies, but renewed Tata Group's commitment: the Group had recently revised its charitable giving, adopted a group-wide climate change policy, and separated its mandatory and voluntary initiatives. The case deals with the intricate connections between the Group's profitability and competitiveness on the one hand and its long-standing tradition of social responsibility on the other. It explores value-creation, leadership, ethics and sustainable development on the backdrop of rapid internationalizations and shifting stakeholders' expectations for corporate social responsibility. -
Lundbeck Korea: Managing an International Growth Engine
In 2005, the vice-president of Lundbeck, a Danish based pharmaceutical firm, needed to decide what to do with one of his most promising subsidiaries, Lundbeck Korea. Over its short lifetime, under the leadership of the country manager and the Asia regional manager, the subsidiary had grown well beyond the original goals set for it. The vice-president wanted to create a reporting structure and management mix that would balance the local demands that Lundbeck Korea required for growth with Lundbeck's overall strategy of specialization, speed, integration and results. The case also traces Lundbeck's internationalization efforts in Asia over the past 20 years. The company had grown from pure licensing arrangements to establishing its own country level subsidiaries. This case introduces the dynamic tensions between taking advantage of local management expertise and executing a corporate strategy developed for an entire global group. In addition, it illustrates the importance, but difficulties, of being sensitive to local management goals, while promoting a global corporate culture. -
Hydro One Inc.: CEO Compensation
The case presents the situation faced by the board of directors at Hydro One, a government-owned Canadian electric utility, as they discuss updating the current executive compensation packages because of the pending privatization of Hydro One. As a government owned enterprise, compensation was moderated by the job security and prospects of career advancement in the public sector, but the imminent privatization required the compensation system to be revisited. The case presents details of the current compensation system for Hydro One's key officers and the comparative data for their counterparts at similar firms. The case allows for discussion of the interplay between corporate governance processes, the corresponding responsibilities of directors and the decisions they make, in particular chief executive officer and executive compensation. The postscript to the case allows for a lively class room discussion of corporate governance, fiduciary responsibility and communication among major stakeholders. -
Barrick Gold Corporation - Tanzania
This case examines the giant Canadian mining corporation, Barrick Gold Corporation (Barrick), (called Africa Barrick Gold plc since 2009), and the way it engages in sustainable community developments that surround its mining activities in Tanzania. Following recent organized tensions and heightened criticism from local communities, media, international social lobbyists and local not-for-profit organizations (NFOs), Barrick has attempted to deal with the local communities in a responsible manner. At issue for senior management was whether there was much more that it could reasonably do to resolve the tensions.<br><br>The case considers: how MNEs seek social license and local legitimacy; the relevance of hybrid institutional infrastructures; the evolving global roles for MNEs and their subsidiaries. The case is appropriate for use in courses in international management, global corporations and society, and international development and sustainable value creation. -
Immunovaccine (IMV): Preparing to Cross the Valley of Death
The case describes the challenges faced by Immunovaccine (IMV), a small biotechnology company founded in Halifax, Canada. The company has seen early success in the effectiveness of its technology in animal health and is looking for ways to exploit the potential of its technology more broadly, particularly in human health. The company's challenges are presented in the context of the evolving relationship between the pharmaceutical and biotechnology industries. The case describes the various issues the company faces around 2008, shortly after the new president and CEO has taken over. It then provides details on strategy formulation and execution under the new CEO. -
Adcock Ingram: Decisions and Motives That Steer Acquisitions
The case sketches the story of a charismatic and ambitious young business leader who, through value-adding commercial transactions, has helped set a South African pharmaceutical company, Adcock Ingram, on a trajectory of growth. In May 2009, he faces lack of closure and an ambiguous outcome to an offer to acquire a smaller pharmaceutical company. The case demonstrates the power of relationships, where the ambitions of different parties around the negotiations table and the incentives that shape their alliances can make or break a strategic business deal. The case presents students with an opportunity to analyze an unfavourable outcome of a business deal, and build a concept of behavioural requirements of success in business transactions. The case has been designed for class discussion and analysis of factors of leadership that underpin or influence acquisitions. It focuses on the behavioural components of leadership decision-making and their effect on business results. The case can provide a platform for the discussion of motives, interpersonal skills and relationships, and business activities in acquisitions. -
Host Europe: Advancing CSR and Sustainability in a Medium-sized IT Company
The case deals with issues of corporate social responsibility (CSR) and sustainability in the specific setting of a medium-sized enterprise (Host Europe) in the IT industry. Host Europe is the third largest webhosting company in German-speaking Europe. In recent years, the company has put substantial efforts into living up to its CSR and improving sustainability. The case presents the IT sector in Europe and Germany and highlights several industry-related issues such as green IT (especially in terms of greenhouse gas emissions and e-waste) and the digital divide. Host Europe has already implemented a couple of measures, such as building a new energy-efficient green data centre, switching to renewable energy, promoting virtualization, introducing several workplace measures, pursuing efforts to improve family friendliness, and publishing a sustainability report. However, there are still some challenges ahead and students are asked to think about further efforts of Host Europe to complete its path to becoming a responsible and sustainable medium-sized IT company.The case can either be used as an introductory case for CSR in medium-sized businesses and sustainability in the IT industry, or in advanced-level CSR and sustainability courses. As an introductory case it provides in-depth insights into a company that has already put substantial efforts into becoming a responsible and sustainable IT company. Students learn about various sustainability and CSR issues and measures in the specific context of a medium-sized enterprise. As an advanced case for CSR and sustainability, it can be used to build upon the existing knowledge of students and to ask them to come up with other ideas and a sophisticated strategy to pursue further CSR and sustainability. For example, since Host Europe is not certified according to environmental or social standards yet, students could come up with a detailed and customized plan on how to implement such a management system for the company. -
Merging Esso Iceland and Bilanaust (A)
In 2006, Hermann Gudmundsson (the chief executive officer [CEO] of Bilanaust, an Icelandic automotive spare parts retailer) was part of a group of partners that had purchased Esso Iceland. He had subsequently been appointed to the CEO position at Esso Iceland. The two companies were quite different: Bilanaust dealt with real-time customer needs, carried a wide range of products, and enjoyed a rising market share and profits. Esso Iceland was 12 times the size of Bilanaust, skilled at developing and executing medium- to long-term strategies, and was operating in a stagnated market. Gudmundsson evaluated the opportunities in front of him: could a successful merger be wrought from the two companies or would it be better to maintain two separate entities? He determined that a lot of work would need to be done to gain consensus around the right strategic direction for the future. Careful thought identified three areas of initial focus: 1) improving staff morale; 2) creating a sense of optimism; 3) placing effective leaders at key points in the organization. -
Merging Esso Iceland and Bilanaust (B)
Hermann Gudmundsson, the new chief executive officer (CEO) of both Esso Iceland (provider of fuel and lubricants) and Bilanaust (an automotive spare parts retailer) was starting to develop an organizational strategy to carry the two firms forward for the next few years. His overriding concern was to create value for themselves and the customers they served, and Gudmundsson considered several methods to achieve that goal: should each company be led and managed on a stand-alone basis, or would a formal merger bring the hoped-for synergies? He determined that the best approach would be to capture an accurate picture of the talent existing in both organizations but was unsure of the best method to sort, rank and evaluate the talent existing in each of Esso Iceland and Bilanaust. Ultimately, he wanted to create a list of objectives for the evaluation program and methods to implement the findings. -
Merging Esso Iceland and Bilanaust (C)
By December 2006, Hermann Gudmundsson (the chief executive officer of both Esso Iceland and Bilanaust) had spent the past 10 months evaluating the strengths and weaknesses of both organizations, and determined that the best approach going forward would be to, consider creating a new organization with a new structure and a new brand name. He weighed the advantages, disadvantages and costs of either retaining two separate companies and their associated brand-image, or merging into one new organization. Gudmundsson was facing resistance from both the board of directors and three different advertising agencies to forgo the Esso brand; but with an ultimate mandate to increase shareholder value he needed to figure out the best method, from a branding perspective, to achieve that objective. -
Merging Esso Iceland and Bilanaust (D)
In December 2006, Hermann Gudmundsson (the chief executive officer of both Esso Iceland and Bilanaust) announced to employees of both companies that a merger was to occur. Various workshops were held to involve employees in the developing structure of the new organization, resulting in a tenable logistics strategy and increased trust between members of the different organizations. By April 2007, Gudmundsson and his team had merged the two organizations, created a new company name and designed a new logo. On the official launch day, over 800 employees were expected to be in attendance as Gudmundsson unveiled the new brand. Gudmundsson wanted to deliver a memorable speech that captured all the excitement and conveyed the right message of the brand going forward - but was unsure of what issues to address in the speech and concepts he should emphasize to create the right first impression. -
Merging Esso Iceland and Bilanaust (E)
By the end of 2007, Hermann Gudmundsson (the chief executive officer of N1) created from the merger between Esso Iceland and Bilanaust) was focused on building trust within his organization. By involving employees in decision-making, N1 had received valuable suggestions on effective business operations. But Gudmundsson had noted a lack of chemistry between employees of the two former firms, and thought that a stumbling block to better relations was the separate clubs or societies for Esso Iceland and Bilanaust employees. After human resources was unable to find a satisfactory resolution, Gudmundsson reluctantly stepped in to render his opinion on how to resolve the issue. -
Merging Esso Iceland and Bilanaust (F)
By October 2008, the merger of Esso Iceland and Bilanaust into the new company N1 was considered a success. Earnings before interest, taxes, depreciation and amortization (EBITDA) was on its way to doubling in three years, and cross-selling was gaining traction. But N1's plans were under threat of derailing due to a looming currency crisis. In October 2008, the Icelandic banking sector collapsed. Gudmundsson called upon his team to determine what internal and external changes needed to be made to remain viable and productive now that they were without access to commercial credit. -
Ambrose & Bisaro
In February 2009,the human resources associate at the Toronto office of advertising agency Ambrose & Bisaro (A&B) had just finished interviewing a candidate for one of eight summer internship positions. Due to the economic downturn, A&B anticipated a larger number of qualified applicants for these positions, especially notable in 2009 as many of their direct competitors had scaled back their internship programs. Throughout the interview, the candidate impressed the human resources associate with their demeanor, enthusiasm and extra-curricular activities; however, the candidate had no previous marketing experience. At the end of the interview the candidate revealed she had secured interviews at five competing advertising agencies and had three firm offers. Somewhat taken aback, the human resources associate realized she had to make a very quick decision: extend an offer to the candidate, or wait and interview the remaining applicants and risk losing this one? -
Yola: Managing Multiple Challenges
The South-African founder of Yola, a San Francisco-based company that provides simple website creation software, has developed a vibrant business that went from eight to more than 40 employees in only a year. He has secured two rounds of funding from a South African venture capitalist, and the growth in the Yola user base has been exceeding that predicted in the business plan. Yet the business faces multiple challenges. There are offices in both Cape Town (because of both personal ties and a substantial cost advantage) and San Francisco (because of the need to be connected to the heart of the industry), but managing across a 10-hour time difference is challenging. The rapid growth in employees is also placing demands on the company in terms of integrating people into the culture, and in finding an appropriate organization structure. The business model for online offerings is also not yet established, and Yola has to deal with substantial complexity in terms of its revenue models. In addition, the market place is heating up, and Yola may be losing its relative position in the market place.The case maps the challenges of managing a successful company in an emerging and fast-growing industry, and specifically focuses on the integrated decisions that an entrepreneur has to take. -
New York Bakery (A)
A technical consultant is travelling to New York Bakery, an eastern U.S. confectionery company that is under bankruptcy protection. The consultant's task is to assess New York Bakery's readiness for the installation of a new payroll system, which will help it move through the bankruptcy process. By his first week on the job, the consultant realizes that his task is greater than he imagined. In trying to help the organization prepare for the changeover, he faces a series of tough decisions that require his immediate attention. The objective of this case series is to expose students to leadership dilemmas that have to be decided upon in real-time. Collectively, the series of choices the consultant has to make will determine whether or not the project stays on track or is derailed. The series consists of cases A to J, product numbers 9B10C023A to 9B10C023J. -
New York Bakery (B)
A technical consultant is travelling to New York Bakery, and eastern U.S. confectionery company that is under bankruptcy protection. The consultant's task is to assess New York Bakery's readiness for the installation of a new payroll system, which will help it move through the bankruptcy process. By his first week on the job, the consultant realizes that his task is greater than he imagined. In trying to help the organization prepare for the changeover, he faces a series of tough decisions that require his immediate attention. The objective of this case series is to expose students to leadership dilemmas that have to be decided upon in real-time. Collectively, the series of choices the consultant has to make will determine whether or not the project stays on track or is derailed. The series consists of cases A to J, product numbers 9B10C023A to 9B10C023J. -
New York Bakery (C)
A technical consultant is travelling to New York Bakery, and eastern U.S. confectionery company that is under bankruptcy protection. The consultant's task is to assess New York Bakery's readiness for the installation of a new payroll system, which will help it move through the bankruptcy process. By his first week on the job, the consultant realizes that his task is greater than he imagined. In trying to help the organization prepare for the changeover, he faces a series of tough decisions that require his immediate attention. The objective of this case series is to expose students to leadership dilemmas that have to be decided upon in real-time. Collectively, the series of choices the consultant has to make will determine whether or not the project stays on track or is derailed. The series consists of cases A to J, product numbers 9B10C023A to 9B10C023J. -
New York Bakery (D)
A technical consultant is travelling to New York Bakery, and eastern U.S. confectionery company that is under bankruptcy protection. The consultant's task is to assess New York Bakery's readiness for the installation of a new payroll system, which will help it move through the bankruptcy process. By his first week on the job, the consultant realizes that his task is greater than he imagined. In trying to help the organization prepare for the changeover, he faces a series of tough decisions that require his immediate attention. The objective of this case series is to expose students to leadership dilemmas that have to be decided upon in real-time. Collectively, the series of choices the consultant has to make will determine whether or not the project stays on track or is derailed. The series consists of cases A to J, product numbers 9B10C023A to 9B10C023J. -
New York Bakery (E)
A technical consultant is travelling to New York Bakery, and eastern U.S. confectionery company that is under bankruptcy protection. The consultant's task is to assess New York Bakery's readiness for the installation of a new payroll system, which will help it move through the bankruptcy process. By his first week on the job, the consultant realizes that his task is greater than he imagined. In trying to help the organization prepare for the changeover, he faces a series of tough decisions that require his immediate attention. The objective of this case series is to expose students to leadership dilemmas that have to be decided upon in real-time. Collectively, the series of choices the consultant has to make will determine whether or not the project stays on track or is derailed. The series consists of cases A to J, product numbers 9B10C023A to 9B10C023J.