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Unilever's Lifebuoy in India: Implementing the Sustainability Plan
Unilever's new Global Brand VP must not only revitalize Lifebuoy soap's sagging market performance, but simultaneously impact the health of one billion people worldwide. The latter challenge comes from Unilever's new CEO who has introduced the Unilever Sustainable Living Program (USLP), a set of bold environmental and social objectives that he has integrated into the heart of the company's global strategy. In contrast to most corporate social responsibility programs, USLP's quantified objectives are clearly defined, tightly specified, and independently audited. And managers are held strictly accountable for their achievement. After describing the background of the 100 year old Lifebuoy soap brand which is now sold primarily in developing country markets, the case outlines the steps taken by Samir Singh, Lifebuoy's newly appointed Global Brand VP as he tries to reverse its declining sales and profit performance. The case then focuses on Singh's relationship with Sudir Sitapiti, the category manager for Lifebuoy in India, the brand's largest market worldwide. Although Sitapiti has done a creditable job in turning around sales and profitability, he has fallen behind on his USLP challenge to bring handwashing behavior change to 450 million people in poor, remote Indian villages. The case concludes with some specific marketing investment decisions that Sitapati is considering and that Singh hopes to influence. -
RCA: Color Television and the Department of Justice (B)
This case is a supplement to 614-072, which examines the early history of the color television receiver market, and the global consequences of an historic 1958 consent decree with the U.S. Department of Justice that opened RCA's patents to licensing by domestic competitors royalty-free. This externality had a dramatic impact on the long-term health of the U.S. consumer electronics industry. -
Apple Inc.: Managing a Global Supply Chain
An analyst for a money management firm is studying Apple Inc. as one of the firm's key investments. In 2013, Apple had a market capitalization of nearly US$500 billion and sales of US$171 billion. According to the research firm, Gartner Group, it had the world's best supply chain, ranking ahead of companies such as Walmart, Amazon and Inditex (Zara). As part of the analysis, a full review of Apple's supply chain is required to look for insight into the future performance of the company in order to decide whether or not the analyst's firm should continue to hold Apple shares. -
SK Planet in 2013: A Korean Giant's Big Bet on the U.S. Market
The case details the strategic decisions that SK Planet, a leader in web and mobile services in its home country of Korea, needed to make regarding the best way to carry out an aggressive global expansion-most importantly into the United States. The $1 billion company had a war chest of $600 million in cash, which allowed company leadership to consider three strategic options for evaluation: 1) Port or rebrand SK Planet's top-ranked Korean services to the U.S. A challenge with this option was that these platforms were developed largely for the Korean market and might not translate to U.S. audiences. Also, many of these services would face entrenched, direct competition within the U.S.; 2) Develop or expand organically, by way of chartering new SK Planet divisions under experienced Korean or American executives. The downside was that this would involve delays in getting new divisions off the ground, and the company needed to invest significant time and energy in researching the U.S. market; 3) Follow a Merger & Acquisitions strategy using its $600 million in cash. However, this would involve a high degree of risk, and if not managed carefully, mergers could lead to culture clashes between U.S. and Korean executives. Whichever option it chose, SK Planet set a three-year goal for its expansion efforts. While nominally short, the company saw this as the critical time frame before the smartphone ecosystem in the U.S. reached maturation and the incumbents fortified their market positions. -
Six Payment Services (A): Disruptive Innovation in the European Payments Industry?
The payment processing industry in Europe had operated in largely the same way for decades. A standard system of financial processing and clearing ensured a steady profit pool for most of the players. However, the payments system in Europe was facing threats on a series of fronts, including changing regulation that shifted power away from some incumbents, lower prices, new competitors, and more demanding customers. One of the region's large players, Swiss-based SIX Payment Services, needed to decide how to respond to these threats. -
Six Payment Services (B): A Response to Disruptive Threats
Supplement to case IMD797. The case explores the response that Swiss-based SIX Payment Services decided to make in the face of disruptive threats to the European payments industry. -
RCA: Color Television and the Department of Justice (A)
This case examines the early history of the color television receiver market, and the global consequences of an historic 1958 consent decree with the U.S. Department of Justice that opened RCA's patents to licensing by domestic competitors royalty-free. This externality had a dramatic impact on the long-term health of the U.S. consumer electronics industry. The associated (B) case is 614-073. -
Intellectual Property Strategy at North Technology Group-Sailing Downwind
North Sails is the world's leading sailmaker. The company commands a global market share of more than 50% and is largely responsible for the rapid technological progress in the sailmaking industry over the past 30 years. CEO Tom Whidden needs to consider how to best defend the company's leading position. Specifically, North currently uses neither patents nor copyright to protect its technology. The company even allows its designers to use its software when they do independent work. The case encourages a discussion of the role of intellectual property rights in safeguarding technology and know-how. By highlighting the costs and benefits of patents and copyright, the case points to a challenge that is common across many companies: Their most valuable assets are largely intangible, and these assets cannot easily be pinned down and protected. North's solution to this challenge is highly unusual and creative. -
Health City Cayman Islands
Narayana Health (NH) had been successfully delivering affordable high quality tertiary care to the masses in India through its chain of hospitals for over a decade. To encourage the adoption of the NH affordable care delivery model worldwide, Dr. Shetty, Chairman of NH, was keen to establish a hospital in the western hemisphere and believed that it was important to demonstrate the model to the US. Thus when the Cayman Islands Government was interested in developing the island as a medical tourism hub during 2008-09, Dr. Shetty agreed to develop the Health City Cayman Islands (HCCI), a 2,000 bed conglomeration of multiple super-specialty hospitals within a single campus located on the Grand Cayman Island. The first phase of HCCI, a 104 bed hospital focused on cardiac care and orthopedics, was developed jointly by NH and Ascension, the largest non-profit hospital system in US. The hospital was inaugurated in February, 2014 but there were open questions related to pricing of the procedures and the related target patient segment and volumes. Also, HCCI senior management realized the need to adapt the NH model developed in and for India to fit the new environment at Cayman and was open to experimentation in coming months. -
Lenhage AG: Ethical Dilemma
The general manager at the Seoul location of a European manufacturing company faces an ethical dilemma involving bribery and "facilitation" payments. A key decision maker in a local construction company's purchasing department has asked for a "facilitation" payment as a necessary condition for securing an order. If the expatriate manager decides to pay the money, he will secure an order that will lift his company to a new level of success for years to come. If he decides not to pay, the order and all the company has worked for over the last year will be lost. The expatriate manager must decide whether or not the payment would violate laws internationally, locally and in his home country. What are the real risks? Who can help him answer the many questions he has regarding this local practice? -
AAC Technologies (B): Strategies for Development and Growth
Supplement to case NTU087. AAC Technologies Holdings Inc., headquartered in Shenzhen, was listed on the Hong Kong Stock Exchange in 2005. The case describes AAC's transformation from a small Chinese family business into a leading global technology solutions provider in the mobile devices industry. The focus is on how the founders developed the company's strategic capabilities through R&D and acquisitions to win major customers and integrated its technological leadership strategy with industry trends and developments, and hence poised to seize market opportunities. -
Right Up the Middle: How Israeli Firms Go Global
Small and midsize companies that want to expand abroad often face a daunting task: finding the sweet spot between multinationals, with their extensive resources and economies of scale, and the smaller players in the foreign markets, which have an intimate understanding of local conditions. The more than 75 Israeli companies that have transformed themselves into global players in the past four decades prove that it can be done. Their approach: Focus on countries and regions that offer an opportunity that multinationals don't find attractive and local companies can't adequately address, and then penetrate this middle ground in ways that won't immediately trigger a response. Given the size of their home market and their limited opportunities in the Middle East, Israeli companies have not had many other options for pursuing growth. The stories of three Israeli companies--Netafim, Teva Pharmaceutical, and Amdocs--illustrate tactics for seizing the middle ground: Evade the giants, disguise yourself as a local, and focus on weak spots. -
Shareholder Activism at Canadian Pacific
Canadian Pacific (CP), a North American railway company, had recently come under attack from an activist shareholder, Pershing Square Capital Management (Pershing). Pershing had accumulated a 14 per cent shareholding in CP and had recently announced its intention to replace the CP board of directors and its chief executive officer. The case reviews the history of CP, its recent performance relative to Canadian National, and the basis for Pershing's allegations that CP had lagged its competitor in terms of performance and that this was attributable to poor governance and management. The board of CP must decide whether to make concessions to Pershing or risk an all-out proxy battle which it may well lose. -
The Monopolistic Power of the NCAA
This case examines the relationship between the National Collegiate Athletic Association (NCAA) and its member institutions, with a primary focus on how power evolves and is administered at an organizational level. Through a close look at the history of the NCAA, the case highlights the unique tale of the organization's rise to power and its ability to regulate all collegiate athletics within the United States. In light of the increasing commercialization of collegiate athletics, the perceived cartel-like nature of the NCAA has brought into question the mission and core values of the non-profit organization and whether the NCAA truly has the best interests of its member institutions in mind. Facing antitrust lawsuits, scandals, the looming threat of the formation of super-conferences and a myriad of other issues, the NCAA must choose its path forward very carefully. -
Philips-Indal: The Deal from Heaven? (A)
Philips' new venture integration (NVI) department is aware of the fact that many acquisitions turn into "deals from hell" instead of "deals from heaven." Its post-merger integration specialists have learned that cost synergies are far easier to realize than sales (or growth) synergies. Stimulated by the urge to grow, the NVI department has developed a new methodology called the "sales integration approach" to realize sales (or growth) synergies. It tries to implement this approach during the acquisition integration of Indal, a Spanish lighting company.The main challenge is presented by the shift in acquisition-integration capability following Philips' evolved corporate strategy. While historically Philips had a substantive acquisition program, Philip's new CEO has stressed the need for organic growth and set the stage for a series of medium and small acquisitions. Philips needs to become more customer-centric to increase corporate growth. This has required a focus not just on cost synergies (e.g., economies of scale and increased efficiency), but also on capturing sales (or growth) synergies. Philips-Indal must choose to defend regions in which it has a strong position or target regions where it has a weaker position. Furthermore, Philips' post-merger integration leader must choose an organizational structure for Philips-Indal and convince Indal's executive team to adopt the NVI department's sales integration approach. This case can be used with Lighting Up Philips' Asian Entertainment Activities (B) 9B14M019. -
The Lac-Mégantic Disaster
In July 2013, the chairman of Montreal Maine & Atlantic Railway is facing a public outcry as well as possible bankruptcy and the revocation of his operating licence. When one of the company's trains derailed in the town of Lac-Mégantic, Quebec, several of its cars carrying crude oil exploded. The explosions and subsequent fires destroyed the downtown core and killed several dozen people. The oil spill also contaminated the local lake and river, leading to an environmental disaster for the community. The company was slow in issuing a press release, which pointed the finger of blame on the train's engineer and the fire department that had responded to an earlier engine fire on the train. Someone had powered down the train and that had released the brakes. Since the train was parked on an incline, without brakes it had rolled into town, gathering speed until it hit a crossroads and derailed. Five days after the derailment, the chairman finally visited the town where he spoke off the cuff and without French translation, further angering the grieving citizens. Now he faces the kind of public and professional censure that might end his career. -
Lighting Up Philips' Asian Entertainment Activities (B)
The case illustrates how Philips' new venture integration team applies a new capability, captured in the "sales integration approach" (SIA), to organically grow its Asian Professional Lighting Entertainment activities. The capability, designed for acquisition integration, has previously helped realize substantial growth (or sales) synergies in a recent acquisition. The main challenge is to understand how to apply the SIA to realize organic (instead of acquisitive) growth (i.e., internal development). This case can be used with Philips-Indal: The Deal from Heaven? (A) 9B14M018. -
Punch Up In the Potash Industry (C): PotashCorp - Between a Rock and a Hard Place
Uralkali, the giant Russian potash producer, decided to stop export sales through the Belarusian Potash Company - an export cartel it had formed with Belaruskali. Uralkali planned to increase potash production and export it independently through its own trading company. This move threatened to reduce global potash prices by up to 25 per cent. Immediately, the stock prices of major potash producers around the world plummeted. This set of three cases looks at the potential competitive strategies of three key players in the industry: PotashCorp, the firm with the world's largest potash reserves; Agrium, a firm in the midst of a large potash mine expansion; and BHP Billiton, the world's largest mining company planning huge potash mine development. See A case 9B14M031A and B case 9B14M031B. -
Punch Up In the Potash Industry (B): BHP Billiton Ltd - Resourcing the Future or Mining Their Own Grave?
Uralkali, the giant Russian potash producer, decided to stop export sales through the Belarusian Potash Company - an export cartel it had formed with Belaruskali. Uralkali planned to increase potash production and export it independently through its own trading company. This move threatened to reduce global potash prices by up to 25 per cent. Immediately, the stock prices of major potash producers around the world plummeted. This set of three cases looks at the potential competitive strategies of three key players in the industry: PotashCorp, the firm with the world's largest potash reserves; Agrium, a firm in the midst of a large potash mine expansion; and BHP Billiton, the world's largest mining company planning huge potash mine development. See A case 9B14M031A and C case 9B14M031C. -
Punch Up In the Potash Industry (A): Agrium Inc. - The Fertilizer Hits the Fan
Uralkali, the giant Russian potash producer, decided to stop export sales through the Belarusian Potash Company - an export cartel it had formed with Belaruskali. Uralkali planned to increase potash production and export it independently through its own trading company. This move threatened to reduce global potash prices by up to 25 per cent. Immediately, the stock prices of major potash producers around the world plummeted. This set of three cases looks at the potential competitive strategies of three key players in the industry: PotashCorp, the firm with the world's largest potash reserves; Agrium, a firm in the midst of a large potash mine expansion; and BHP Billiton, the world's largest mining company planning huge potash mine development. See B case 9B14M031B and C case 9B14M031C.