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Set in 2021, the case highlights how S4Capital, a digital-first advertising and marketing services company, develops a disruptive and innovative business model to meet the industry's growing demand for agility, digital prowess, flexibility, and efficiency, better than the traditional, analogue, holding company model of existing advertising networks. The company's practice of a 'zero earn-out' approach in its mergers and acquisitions, along with an upfront cash payment, share in its equity to the entrepreneur-founders, and incentives to retain the senior management of the acquired firms, also made it a favourite potential partner for like-minded technologically savvy companies in the domain. By September 2021, the S4Capital group comprised more than 26 companies, had a market capitalisation of around US$6.5 billion, and its revenues had grown by 49%. However, it faced many challenges as well. While S4Capital's adoption of unitary branding provided a platform for seamless integration of talent and capabilities across its offices globally, it required constituent agencies to give up their individual, and often highly iconic identities, and build a collaborative mindset for the collective good. In 2021, the group's merger with Zemoga, a digital transformation company, enabled S4Capital to plug a crucial gap in its menu and offer tech services besides content and media solutions. However, the inclusion and integration of a new practice area as the third pillar would entail having a more complex and unwieldy structure. In immediate terms, S4Capital faced an uphill task in acquiring and retaining talent in some of its markets. In Asia Pacific, where it was focusing on growth, the availability of suitably qualified tech-savvy manpower was inadequate. While in the US, its largest market, the pandemic had unleashed a wave of 'Great Resignation' in the corporate world, resulting in high staff turnover as people increasingly opted out of their current jobs.

In cross-border mergers and acquisitions (M&A), post-merger integration is a challenge. The main questions posed are how should the expected operating and financial targets and a smooth transition be achieved and synergies be generated. These factors directly affect the ultimate realization of the value of overseas M&A transactions. This case, as the third one in the series of cases on BlueStar's acquisition of Adisseo, highlights new strategic initiatives adopted by the Bluestar Group in recent years to boost Adisseo's growth. Furthermore, this case focuses on the promotion of further integration between the Bluestar Group and Adisseo at various levels since the completion of the acquisition of and integration with Adisseo in 2012. The case focuses on the following questions: How did China National Chemical Corporation Ltd. (ChemChina) and the Bluestar Group promote the successful listing of Adisseo, the acquired companyin China's A-share market? How did the A-share listing transform Adisseo's corporate governance? Backed by the Bluestar Group and ChemChina, which initiatives did Adisseo take in terms of related diversification, capacity expansion, and global layout? How did ChemChina and the Bluestar Group further promote the merger and integration, as well as the sustainable development of Adisseo? Which innovative practices were adopted by the parties and how did they benefit? These explorations and practices provide useful experience for Chinese companies' M&A of overseas companies and integration after M&A.

CEO Andres Gluski leads the transformation of the global energy company.

Spreadsheet supplement to 722357 In January 2021, Jalila Mezni, CEO of the SAH Group, was preparing to present the company's future growth plans to its board of directors. The Tunisian company was a leading producer and distributor of personal care and packaged hygiene products. In 2019, it expanded further by entering the detergents market. By 2020, the company employed over 4,500 people and had a presence in 20 African countries. The Lilas brand had become a household name in Tunisia, outperforming brands owned by global players like Procter and Gamble. In detergents, SAH was steadily gaining ground over multinational consumer goods companies like Unilever, Reckitt Benckiser, and Henkel. As Mezni looked ahead, she had to carefully evaluate three growth opportunities: introducing a range of kitchen cleaners, vertically integrating operations in the detergents business, and opening a subsidiary in Kenya. Which of these, if any, would be the right way forward for the SAH Group at this juncture?

This technical note examines two common methods for estimating customer demand using historical data observations that are constrained by availability. First, this note explains how to leverage the averaging method for unconstraining the demand of airline ticket bookings. Next, the expectation-maximization algorithm is introduced using historical product sales data. Both examples rely on fictious data, and an accompanying Excel workbook provides example calculations for both methods highlighted in this technical note.

Spreadsheet Supplement for Technical Note UV8599

When should a board of directors push for a CEO change? This case explores the experiences of the board of directors of a popular and successful lifestyle-brand start-up as it grapples with a public-relations crisis after a young female CEO makes serious missteps in a public forum. This case allows for a discussion of the role and responsibilities of a board of a start-up backed by venture capital (VC), when and how to remove a CEO, and the evolution of executive leadership as a company rapidly scales up and approaches a potential IPO. Through the case discussion, students take the perspective of the board of directors to come to a decision about whether (and how) to implement a CEO transition amid an unexpected crisis. A supplemental B case (UVA-S-0362) presents what the board chose to do next and provides an opportunity to discuss the longer-term leadership challenges that followed the initial crisis.

This case is a follow-up to "Crisis at Away (A)" (UVA-S-0361), which explores the lifestyle-brand start-up Away as it grapples with a public-relations crisis. Its CEO has made serious missteps in a public forum and the board of directors must come to a decision about whether (and how) to implement a CEO transition amid an unexpected crisis. This case presents what the board chose to do next, and provides an opportunity to discuss the longer-term leadership challenges that followed the initial crisis.

Belinda Oliveri, managing director of Mercedes-Benz Starlight, reflected on the events of the past couple of years. At a 2021 meeting of its fifty-two Australian dealers, Mercedes-Benz Australia/Pacific Pty Ltd announced a new sales model through which customers would buy vehicles at a fixed price directly from the company and only step inside a dealership to collect their purchase. Oliveri knew that as a respected industry leader and significant player in Australia’s high-volume automotive business landscape, she had to develop an informed opinion on the matter. She also knew change was coming, but that there were also a lot of unanswered questions. Would the change be a good one? How would it affect customers? Should she support it or oppose it by joining the $650 million lawsuit 80 per cent of dealers filed against Mercedes-Benz Australia/Pacific?

As of August 2022, the Itau BBA had structured dozens of sustainability linked bonds, which made future interest payments a function of the borrower meeting a target for a sustainability metric, and had solidified its reputation as a pioneer of sustainable finance in Latin America. The next few years would provide the firm an opportunity to broaden its sustainable finance portfolio by engaging more firms in measuring and improving their performance on ESG issues, such as carbon emissions, biodiversity, workplace safety, and diversity and inclusion. At the same time, Itau BBA would need to carefully navigate the financial and reputational risks associated with underwriting, marketing, and distributing sustainable debt of firms exposed to significant ESG risks. Should Itau expand its sustainable debt business to firms with high ESG risks and if so, what must be done to gain support from Itau executives, investors, and high-risk issuers? What systems should Itau adopt to alleviate concerns and would the transaction costs of these systems, such as enhanced disclosure or monitoring, be too steep to justify underwriting the product? Luiza Dias Lopes Vasconcellos, the partner heading sustainable finance at Itau BBA, wondered whether pursuing growth in sustainable debt was worth the risks involved.

The case examines the strategic rationale for the acquisition of The Body Shop - from the perspective of the buyer (Natura) and the seller (L'Oréal) - with an emphasis on the study strategic fit, synergies, and integration challenges. In particular, it requires students to think about whether the various characteristics of the parent affect the success of the target company, and whether the target can be value-accretive to the parent. Discussion can go deeper into the notion of parenting styles and value added by reflecting on the challenges faced by The Body Shop under its former owner, L'Oréal, and the pros and cons of the new Brazilian parent, Natura. The financial analysis allows students to assess the "fair" value of The Body Shop - again from the perspective of the buyer and the seller. The case allows for a DCF-based company valuation (excluding and including synergies) as well as for a Multiples-based valuation. Students are able to compute the opportunity cost of capital (WACC) for The Body Shop based on case facts and the CAPM (as well as beta un- and re-levering). This can lead into a discussion about how the characteristics of different buyers (e.g., a strategic buyer vs. a private-equity firm) might affect the firm's valuation, and, indeed, might have affected the outcome of the auction.

Spreadsheet Supplement for Case IN1864

Lack of trust and transparency had long plagued the Indian Ayurveda industry. NirogStreet, a New Delhi-based start-up, seeks to mitigate this problem through its tech-enabled platform that offers digital solutions to Ayurveda practitioners and patients. The case study describes its history, macro environment, business model, growth trajectory, other industry players, and the potential opportunities and challenges ahead. It helps students understand how the macro environment affects a business, how a platform business gains competitive advantage from its internal resources and capabilities, and how to achieve rapid growth through value innovation and lean start-up process.

Shortly after Rich Hagen joins Paypal as Strategic Director in 2021, the CEO Dan Schulman asks for his input to choose between two promising directions for the business: venturing into retail investing or launching a super app. As a brokerage sector veteran, Hagen is intuitively inclined to favour online trading, but Schulman makes a strong case in favour of the super app. To prove himself in his new position, Hagen needs to weigh both options and make an informed recommendation.

In November 2021, Roxanne Petraeus and Anne Solmssen, founders of Brooklyn-based software-as-a-service (SaaS) startup Ethena, were looking to expand their compliance training business. The founders hired Arnie Gullov-Singh, an outside revenue consultant, to advise on whether to pursue mid-market sales or enterprise sales as the company scaled. Gullov-Singh performed a diagnostic of Ethena's sales funnel and found mid-market to be a reliable, growth-oriented trajectory for the company. The data for enterprise, however, was more limited, making it harder to recommend pursuing with confidence. Petraeus felt enterprise was attainable, nonetheless, especially given Ethena's client base already included some high-profile enterprise firms. Together with Vice President of Customer Success Akhila Iruku, the group discussed whether pursuing both mid- market and enterprise was feasible, and in light of the limited data on enterprise, whether it was wise. Ethena: A Go-to-Market Dilemma (HBS No. 723-363) also includes supplements: Ethena: Pre-Seed Pitch Deck Supplement 1 (HBS No. 723-385); Ethena: Seed Pitch Deck Supplement 2 (HBS No. 723-386); and Ethena: Series A Pitch Deck Supplement 3 (HBS No. 723-387).

Supplement to 723363.

Set in April 2022, this case delves into supply chain disruptions faced by 3M in and after the Covid-19 pandemic, and the strategies used by the company to cope with the challenges. The case begins by tracing the history of 3M as an 'Innovation Machine', and its internationalization strategy in its early years. It then talks about the company's regionalisation strategy, and complementary growth strategies like the 'Divide and Grow', 'Follow the Technology' and 'Renewal' tactics to expand and diversify internationally. It also talks about the digital transformation and the consolidated operating model, which the company embarked upon in 2019, to re-energise the company. In 2020, 3M faced massive supply chain disruptions amidst a 400% demand surge of N95 masks and personal protective equipment, and simultaneous closure of several manufacturing facilities worldwide. 3M continued to operate from manufacturing plants that were still open, with government support - in countries like Singapore - while facing resource and supply constraints and other uncertainties. To cope with the disruption, the company used several strategies like emergency response teams, 30/60/90-day cycles of supply management, additional supplier sourcing and airfreight for exporting finished goods. In 2022, even after the pandemic started to subside, supply chain disruptions continued to persist amidst increasing geopolitical tensions like the Russia-Ukraine war and a new surge of the pandemic in China. Given the prolonged and evolving supply chain disturbances, what could be the appropriate short-term and longer term strategies that 3M could implement to respond to such disruptions?

In September 2022, Mark Cuban Cost Plus Drugs Company CEO Alex Oshmyansky considered the future of the company. Cost Plus Drugs was a retailer for more than 340 generic oral medications, selling their drugs at significantly lower prices than typical pharmacies. Oshmyansky could focus resources on adding brand-name drugs to its medication portfolio or focus on the company's ongoing development of a facility to manufacture sterile injectable drugs.