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Keep or Sell the Healthcare Family Business: The Case of Promamec in Morocco
This case depicts the fascinating success story of Promamec, a family-owned business and an unexpected healthcare champion, amid unprecedented business environment changes, in Morocco's business capital, Casablanca. Known as one of the poorest Arab countries in the world, Morocco has become an emerging market that has attracted many foreign investors. Competition has intensified and financial resources have become more limited for Promamec. More specifically, the case draws attention to a crucial leadership transition between generations (2006) and a game-changing strategic decision (2018) to ensure future prosperity. This success story brings together several business disciplines including but not limited to strategy and entrepreneurship. Until 2018, Promamec's leadership created permanent value for more than three decades, growing organically at a double-digit rate in one of the most challenging business environments in the world. However, the son of the founder who remains the major shareholder must then make a very challenging decision: keep the business ("baby" of his father) in the family or sell it to private investors? -
Enemies with benefits: Daimler and BMW's mobility ecosystem "YOUR NOW"
The case study "Enemies with benefits: Daimler and BMW's mobility ecosystem" portrays how the German automotive giants Daimler AG and the BMW Group, strong competitors for decades, bundle different ventures and activities in the field of new mobility solutions to create a joint ecosystem called "YOUR NOW". The ecosystem entails a variety of different business models covering car sharing, ride-hailing, charging, parking, and mobility-as-a-service offerings. These different divisions (that Daimler and BMW often refer to as "verticals") oftentimes complement each other, but partly also compete with each other. This situation creates a unique potential to combine complementary resources and capabilities, but also causes tensions from competitive behaviors among the single ventures. -
TEGA Industries Ltd: Journey of an Indian MNC (Part A)
Madan Mohanka (MM) set up Tega Industries Ltd. in 1976 to manufacture abrasion-resistant rubber mill-lining products used in the mining and mineral-processing industries. This was a completely new technology for India; in fact, he had set up a plant for mill liners even before any takers for his products in the market existed. Tega first set foot in overseas markets in 1998 after it became free of the export restraint imposed on it by its mentor and stakeholder, Skega AB, a Swedish company. It received its first international order from Ghana and subsequently set up a sales subsidiary in the country. It then gradually opened sales and distribution offices in Australia, the USA, Mexico and Canada. The business was slow to develop in each of these countries, and sales picked up after a tenuous ride. In 2006, as part of its inorganic expansion strategy, Tega bought a small rubber-manufacturing company that sold mill liners in South Africa. Between 2006 and 2011, Tega's business grew at 40% compound annual growth rate. Buoyed by this growth, Tega made two back to back acquisitions in Australia and Chile in 2011. However, several managerial, legal and commercial problems crept up in its Chilean manufacturing facilities after the acquisition. These problems led to a severe financial downturn in Tega's fortunes in 2016, compelling it to either plan a revival or divest its interest in its Chilean plant. -
TEGA Industries Ltd: Journey of an Indian MNC (Part B)
Case Supplement for Case A00301 -
Conquering America: Can Peugeot Stage a Successful Return to the US?
In 2016, French car manufacturer Peugeot announced its will to return to the US, one of the most competitive market in the world. Peugeot had previously attempted to conquer the US, but that effort failed: In 1991, after having sold a grand total of 4,261 cars in the whole country the year before, Peugeot left the US and remained away for 25 years. Now eager to stage a successful comeback in a market that only got even more fiercely competitive and in the midst of rapid changes affecting the industry, Peugeot needed to first figure out how to overcome its key competitive weakness, namely its lack of a distribution network. For Peugeot's CEO, one question dominated all others: How should Peugeot fulfill its distribution needs in the US (defined as selling cars and providing maintenance), given that it did not have a distribution network? -
IMPAAKT: Crowdsourcing Better ESG Ratings
The global rise of responsible investing in the last decades (boosted by the increasing debates around climate change, business ethics and distribution of wealth) urged the development of coherent and reliable methodologies gauging the effect of business on Environmental, Societal and Governance (ESG) aspects. However, existing ESG rating methods not only differs greatly among themselves, but they are also typically based on companies' own practices (outputs), not on the final impact (outcome). To measure the latter, a Geneva-based company called Impaakt developed a digital platform, using the 17 United Nations' Sustainable Development Goals (SDGs) as benchmark, engaging the collective intelligence of the global community (on a Wikipedia-like model) to achieve this ambitious goal. This case explores the strategies behind the design of such a platform, investigates the importance of scale and sides, and analyses to what extent social and environmental impact can be measured objectively. -
Sterlite Copper: Profit Versus Public Health
Sterlite Copper (Sterlite), owned by Vedanta Resources Limited (Vedanta), was one of three major copper plants in India. However, the plant had been the subject of controversy and public protests. The people residing in Tuticorin, where the plant was located, considered Sterlite to be a major contributor to the air and water pollution in the neighbouring area. In light of the latest public protest on May 23, 2018, which was supported by several national and international non-government organizations, human rights activists, and Tamil solidarity groups, the Government of Tamil Nadu ordered a permanent shutdown of the plant. Since the plant contributed around 5 per cent to Vedanta's operating profit, the closure of the plant not only threatened the earnings and profitability of the parent company but also damaged its brand image. The plant was a major source of copper for over 400 small and medium-sized industries in its downstream value chain. The closure of the plant put at risk the jobs of a large number of employees, which Sterlite supported both directly and indirectly through its value chain. What should Vedanta do in such a hostile environment? -
Resolving Trade-Offs: From Simple Heuristics to Multicriteria Analysis
This note discusses a variety of methods to assist intuition in complex situations with multiple objectives and a potentially large set of alternatives. It begins with heuristic rules, which are relatively simple ways to sort out alternatives without thinking too much about trade-offs. After discussing the reliability of such rules, it moves to multicriteria analysis, which is a more rational method of balancing conflicting objectives. -
Chiban Leather: Designing The Next Chapter
In May 2019, Chiban Leather, a socially conscious leather manufacturing firm based in Addis Ababa, Ethiopia, was undergoing an expansion and the company's chief executive officer was contemplating its strategic future. She wanted to take advantage of opportunities in the Ethiopian leather industry and expand her client base to include 10 primary wholesalers. She was proud of the social impact the company had achieved so far, and she hoped to be able to focus more on this by expanding the company's production process. She was also considering other options, including developing Chiban Leather as a retail brand, focusing on trade shows, and pursuing alternative exposure through diversified products and subscription boxes. She wondered if this was the right time to establish the brand and sell directly to clients. She also had to consider whether this option would align with her current goals and strategy. -
Boeing versus Bombardier: Conflict over Tariffs
Bombardier Inc., a Canadian manufacturer of business jets and small aircraft, developed the C Series aircraft amid numerous technical and financial challenges. In 2016, the US aviation company Delta Air Lines Inc. made a large purchase of the plane at an allegedly highly discounted price, which was expected to help Bombardier Inc. enter the lucrative US aviation market. In response, The Boeing Company, the world's largest aerospace company, filed a complaint about the deal with the US Department of Commerce and with the United States International Trade Commission. The complaint was consistent with the current US administration position of promoting protectionist economic and trade policies. The US Department of Commerce concurred with The Boeing Company and levied anti-dumping and countervailing duties of 292.21 per cent against Bombardier Inc. However, the United States International Trade Commission found the tariffs unjustified and overturned the decision on the grounds that The Boeing Company was not materially harmed by the transaction. The Boeing Company had multiple options for pursuing a challenge, but each option had potential consequences. -
Academic Integrity at Botsworth Business School
During the spring 2020 semester, Botsworth Business School had suddenly moved all classes to remote teaching due to the spread of the COVID-19 pandemic. The school's associate dean had to consider the implications of this new learning environment for academic integrity. She also had to manage the challenges of a new infrastructure and differing student and instructor needs. In May 2020, with urgency subsiding, and with the university confirming that classes would be taught remotely through the spring 2021 semester, the associate dean was considering the risks and benefits of what services had been-and what could be-implemented to support remote teaching and learning. Leading up to the remote fall 2020 semester, she was wondering how to best identify and manage risk from contract cheating-a form of academic dishonesty that occurred when a student submitted work for academic credit that was completed by a third party. The associate dean's task would have been complex and difficult in normal times, but it had become an especially salient problem after moving to online remote instruction due to the COVID-19 pandemic. -
VIA Science (A)
Via (a) captures the early days of the data analytics startup as founders Gounden and Ravanis considered which markets offer the right opportunities for their firm and what kinds of experiments will help them narrow their choice. Supplement Via (b) reveals the experiments they ran, and what they learned. Via (c) explores the strategic choices they face about product and service offerings once they determine which market(s) to target. -
VIA Science (B)
Via (a) captures the early days of the data analytics startup as founders Gounden and Ravanis considered which markets offer the right opportunities for their firm and what kinds of experiments will help them narrow their choice. Supplement Via (b) reveals the experiments they ran, and what they learned. Via (c) explores the strategic choices they face about product and service offerings once they determine which market(s) to target. -
Sun Pharmaceutical Industries Limited: Disclosure Practices
In December 2018, Dilip Shanghvi, the CEO and majority shareholder of Sun Pharma, scheduled an urgent investor call to address the questions raised about the level of corporate governance at Sun Pharma. A whistleblower complaint and an analyst report was being circulated in the market that highlighted concerns about the undisclosed related party transactions with promoter owned companies, unexplained loans with third parties, and subsidiaries being audited by firms related to a promoter, among other similar concerns. The stock markets responded negatively to the clarifications provided by Dilip Shanghvi, forcing Sun Pharma to reverse some of the transactions undertaken and constitute a corporate governance and ethics committee to restore investor confidence. The case provides extensive detail about the two primary governance issues raised viz., an insufficiently disclosed loan transaction with an unnamed third party and a related party transaction with a promoter owned entity, and tracks a few interesting reactions from market participants about the expectations of good governance from an industry leader. To provide a background to this discussion, the case also tracks the development of Sun Pharma from its inception in the 1980s to becoming the fifth largest generic pharmaceutical company in the world. -
The Art of Living: Celebrating Life
This case brings to life how an organization, Art of Living, developed around one man's lofty aspiration and then multiplied into a movement across geographies. It provides a tangible appreciation of an otherwise amorphous notion of "Purpose", by demonstrating how Art of Living moved beyond conventional levers of growth to creating offerings and galvanizing its members around its evolving purpose (that too in a context of limited resources, since it is predominantly volunteer-run). It further delves into the organizational culture Art of Living created that supported its continued growth. Set in 2020, during the global Coronavirus pandemic, it also invites the students to engage in a provocative discussion about Art of Living's future as it embraces social media and other online channels to help people deal with the crisis through its various on-line initiatives. The case opens with a glimpse of how the founder reaches out to the world in a new way, during the Coronavirus crisis of 2020. It rewinds to its origins in 1981, with the founder's aspiration of 'Bringing a Smile on Every Face', and traces the first phase of growth of Art of Living, as it built a second line that replicated the success of the founder's offering and grew the organization's reach over the 1980s and 90s, so much so that its 25th anniversary celebration demonstrably displayed its "global" reach. The next section (over 2006-2016), illustrates how Art of Living grew in scale and scope, by broadening its purview to include a series of programs and social projects that addressed different sections of society and their various needs. As it grew, it put in place an organization that 'enabled' rather than 'restricted' its entrepreneurial culture. The subsequent section (2017 to 2019), presents an interesting evolution of its core-from meditation to mediation-that the founder adopted to further widen Art of Living's purview to include a world without violence; while the last section (2020), presents -
American Broadcasting during the Hungarian Revolution of 1956: Incitement or Observation?
In the fall of 1956, under the shadow of the Soviet Union, Hungarian students revolted against the Communist Party in Budapest. But their calls for reform and a moderate government were silenced by Soviet troops. America's broadcaster to Hungary, Radio Free Europe (RFE), was wrapped up in the Hungarian Revolution due to its role as one key voice of the American government. Some blamed the radio station for an overly assertive tone, encouraging protesters, and even incitement. Others argued that the station was a mild factor, in addition to many others, and that revolution had been brewing for years. Looking back, a debate emerges: What was the role of American broadcasting in fueling public optimism for change, and even revolution, in 1956 Budapest? -
Thinx, Inc. - Breaking Barriers in Feminine Care (Abridged)
An examination of the strategic marketing challenges facing Thinx as it tries to grow in the face of menstruation taboos and competition from large incumbents. -
Komatsu and Smart Construction
Komatsu, Japan's leading construction equipment manufacturer, is considering investing in a digital platform "Smart Construction" that will digitise the entire work process on a construction site, allowing for substantial reductions in cost and time while improving safety. The platform will combine data from drones, automated construction equipment, subcontractors, etc., on a single integrated online website. However, there are many impediments, both internal and external, to the adoption of "Smart Construction" and takeup of the initiative has been slower than hoped even in Japan. The case describes the origins and development of "Smart Construction" within Komatsu as well as the advantages to its usage, and a description of the construction industry in Japan and the possible causes of its slow adoption. -
Kerry Group: Inspiring Food, Nourishing Life
The Irish company Kerry Group, one of the leading global players in the taste and nutrition industry, wants to ensure its future growth in developing and developed markets. Founded in 1972 as a dairy cooperative, it had grown into a provider of taste and nutrition solutions through many acquisitions, but also through organic growth. In 2020, Kerry rolled out its new sustainability strategy, "Beyond the Horizon", with the goal of reaching 2 billion people a day with sustainable nutrition solutions by 2030. In order to reach that goal, Kerry had identified channels where it could grow and that were compatible with environmental sustainability, namely food waste reduction, plant-based protein, and proactive health products. Kerry's customer base was changing as well, with many FMCG companies losing market share to new, innovative market entrants in the food and nutrition space. Kerry was looking for ways to attract those new customers, while helping its existing customers shift to more sustainable solutions as well. Kerry had already adapted its recruitment strategy to meet its changing needs, but it still had to simplify its organization to better integrate new acquisitions and talent. Would this be enough to reach the 2030 goal of 2 billion people reached daily? -
Vivos Shelters: A Route to Stable Demand Post COVID-19 Pandemic
California-based Vivos Group (Vivos) built and sold luxury bunkers designed to withstand catastrophes. The founder himself had acknowledged that the majority of US residents could not afford them: while competitors offered bunkers with down payments as low as a US$1,300 -which middle-income consumers could afford-Vivos's $35,000+ bunkers were for the rich. By May 2020, several of Vivos's bunker properties were sold out, but it was uncertain whether this indicated some permanent change in consumers' buying behaviour or an effect of the COVID-19 pandemic. Vivos's founder now faced several challenges: should he focus on constructing more luxury apartment-based bunkers or low-cost, community-sharing bunkers to provide consumers with protection from COVID-19? What aspects of bunker management should he improve, given the criticism that bunker companies had made false claims about the air filtration systems in the bunkers? How could he help Vivos achieve growth in the long run?