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Unicommerce eSolutions: The Exit Decision
On a late evening in December 2014, three co-founders of Unicommerce eSolutions Pvt. Ltd. (Unicommerce) assembled for a meeting. A couple of months earlier, Unicommerce, an India-based software-as-a-service solution provider for order- and warehouse-management activities in the e-commerce industry, had received an offer of US$10 million in series-B funding from Tiger Global Management to fund their business growth. The offer seemed fair, and the three co-founders were inclined to pursue a deal with them. However, just a few days before, they had received an unexpected offer from Snapdeal, a leading e-commerce firm in India, to buy out Unicommerce. Over the past week, the co-founders had discussed and debated their options several times without converging. However, the time for deliberations was over. By 9:00 a.m. the next day, the Unicommerce team would have to call up Snapdeal to confirm their decision. -
BoKlok's Growth Strategy in 2018 and Beyond: Navigating External and Internal Contexts
Supplement to case SM298A. Jonas Spangenberg, CEO of BoKlok, an entrepreneurial industrialized construction venture focused on providing low-cost housing to a sharply defined, relatively low-price market segment, must identify and manage forces within three contexts as he develops and guides BoKlok's growth strategy: the residential construction industry, and Skanksa and IKEA, BoKlok's parent companies. Students are asked to consider Spangenberg's strategic actions in relation to the external context-an industry beginning to feel the impact of information technologies (digitalization) in the design, manufacture and assembly phases of construction-and in relation to the company's internal context: parent companies Skanska and IKEA. Organizationally, BoKlok was nested within Skanska, one of the top ten construction companies in the world, and was dependent on Skanska for BoKlok's continued growth and development. Yet, historically, culturally, and from a brand perspective, BoKlok was patterned after IKEA, the low-cost furniture retailer. Spangenberg's most direct strategic challenges relate to fine-tuning BoKlok's business strategy in light of industry turbulence and, with the support of Skanska, developing a strategy for entering the U.K. market, and preparing his organization for executing the U.K. strategy. The first case can be used on its own to develop a deep understanding of the conditions that led to the founding of BoKlok and to clearly identify its novel business strategy and the success that it has been able to achieve by January 2018. The second case is set in September 2018, at the time that the Swedish housing market entered a downturn and BoKlok and parent company Skanska were dealing with the effects of contraction in their home market while preparing for BoKlok's expansion into the United Kingdom. -
Walmart's Workforce of the Future
Faced with intense competition from Amazon, in 2015 Walmart began a transformation of its operations and workforce. The goal was to create an omnichannel retail experience for customers that seamlessly joined online and offline shopping. This case explores Walmart's efforts to deliver this through investments in its workforce makeup and training, digital infrastructure, and automation technology. -
Orpea's European-Based Nursing Facilities: Expanding to China
Founded in 1989, Orpea Group (Orpea) was a French nursing care company that had successfully expanded into 10 European countries with a network of about 700 facilities. In early 2016, Orpea opened its first establishment in Asia in the Chinese city of Nanjing. Seeing an increased demand for elderly care in China, the Nanjing government encouraged the company. However, Orpea was facing several challenges, including cultural and legal differences between China and Europe, as well as competition with local companies. Orpea needed to determine how best to test the company's Nanjing facility in the Chinese market and whether or not to pursue further expansion in China. -
Kutesmart: The Digital Transformation of Apparel Manufacturing
In 2017, Chinese clothing manufacturer Qingdao Kutesmart Co. Ltd. (Kutesmart) had been transformed into a customer-to-manufacturer platform company, where customers could order individualized products directly from the makers over the Internet. Since 2000, Kutesmart had been upgrading its information system as its business strategy evolved, and the company had become a widely known, successful case study of mass-customization-based manufacturing in China. However, as the company leaped forward into the age of digitization and globalization, its founder faced a number of questions: How could Kutesmart extract more value from its data resources and technology? The company was assessing and pursuing a platform strategy; could this strategy help Kutesmart take its business to the next level? What were the opportunities and challenges? -
Using Effectuation to Start up a New Venture Through Instagram
In January 2019, a second-year master of business administration student has come up with an idea for a new venture: sourcing products from her social contacts, using Instagram to direct traffic to her company website, and utilizing the postal service to deliver goods. Does a viable business opportunity really exist, or are there too many unknowns? -
Implementing Big Data Strategies: A Managerial Perspective
Despite considerable recent advances in big data analytics, there is substantial evidence that many organizations have failed to incorporate them effectively in their own decision making processes. Advancing the existing understandings, this article lays out the steps necessary to implement big data strategies successfully. To this end, we first explain how the big data analytics cycle can provide useful insights into the characteristics of the environments in which many organizations operate. Next, we review some common challenges faced by many organizations in their uses of big data analytics and offer specific recommendations for mitigating them. Among these recommendations, which are rooted in the findings of strategy implementation research, we emphasize managerial responsibilities in providing continued commitment and support, the effective communication and coordination of efforts, and the development of big data knowledge and expertise. Finally, in order to help managers obtain a fundamental knowledge of big data analytics, we provide an easy-to-understand explanation of important big data algorithms and illustrate their successful applications through a number of real-life examples. -
Opening Up Strategy Formulation: Benefits, Risks, and Some Suggestions
Strategy is an important tool for competitive success and how firms formulate and implement strategy is widely discussed in both the academic and practitioner literature. Historically, there has been a divide between strategy formulation and execution. Strategy formulation has largely been associated with top management teams, while implementation was assigned to middle and lower-level managers. Organizations can benefit from broadening the strategy formulation process to include a range of both external and internal stakeholders. In this article, we explore the promise and risks associated with open strategy and offer some suggestions for overcoming associated dysfunctions. -
Building a Global Corporate Social Responsibility Program via Mergers and Acquisitions: A Managerial Framework
While previous studies and management conventions often adopted a finance-centric perspective of cross-border mergers and acquisitions (CBM&A or CBA), we demonstrate that CBA can be an effective platform upon which to build a global corporate social responsibility (CSR) program and that CSR initiatives can be customized for different locales. These CSR-CBA interconnections and customizations respond to a range of stakeholder interests associated with both national and societal institutional factors. We develop a managerial framework for the CSR-CBA setting and illustrate the framework with an exemplar of international expansion through acquisitions combined with the international development and implementation of CSR. -
Elon Musk's Big Bets Update, 2019
This short case provides an update to Elon Musk's strategy and tactical moves with Tesla, Solar City, and SpaceX from 2016-2019. -
Alexa: A Pandora's Box of Risks
Launched in 2014, Amazon's Echo and Echo Dot smart speakers led the category's rapid adoption by households and enabled the penetration of artificial intelligence (AI) voice assistants into the everyday lives of millions of people. By 2019, Alexa the virtual brains behind Amazon's smart speakers was able to play music, create reminders, get weather reports, control lights and other home appliances, shop, and do much more in response to voice commands. Amazon had developed significant new capabilities for Alexa, developed an entire ecosysgtem around it, expanded Alexa's user base to more than 100 million users, and made significant progress in monetizing its digital voice assistant. However, Alexa's progress also created new challenges for Amazon, its Alexa-enabled customers, and society at large. Amazon needed to identify and address these challenges in order to encourage continued consumer acceptance and preclude detrimental government or regulatory action. -
BoKlok's Housing for the Many People: On-the-Money Homes for Pinpointed Buyers
Jonas Spangenberg, CEO of BoKlok, an entrepreneurial industrialized construction venture focused on providing low-cost housing to a sharply defined, relatively low-price market segment, must identify and manage forces within three contexts as he develops and guides BoKlok's growth strategy: the residential construction industry, and Skanksa and IKEA, BoKlok's parent companies. Students are asked to consider Spangenberg's strategic actions in relation to the external context-an industry beginning to feel the impact of information technologies (digitalization) in the design, manufacture and assembly phases of construction-and in relation to the company's internal context: parent companies Skanska and IKEA. Organizationally, BoKlok was nested within Skanska, one of the top ten construction companies in the world, and was dependent on Skanska for BoKlok's continued growth and development. Yet, historically, culturally, and from a brand perspective, BoKlok was patterned after IKEA, the low-cost furniture retailer. Spangenberg's most direct strategic challenges relate to fine-tuning BoKlok's business strategy in light of industry turbulence and, with the support of Skanska, developing a strategy for entering the U.K. market, and preparing his organization for executing the U.K. strategy. The first case can be used on its own to develop a deep understanding of the conditions that led to the founding of BoKlok and to clearly identify its novel business strategy and the success that it has been able to achieve by January 2018. The second case is set in September 2018, at the time that the Swedish housing market entered a downturn and BoKlok and parent company Skanska were dealing with the effects of contraction in their home market while preparing for BoKlok's expansion into the United Kingdom. -
Mobileye Update, 2019
Mobileye was an Israeli company, officially headquartered in The Netherlands, which was a Tier 2 supplier to the global automobile industry. This short case updates Mobileye's business performance and strategy, following the acquisition by Intel in 2017. -
Amazon's HQ2 (C): Choices
Amazon's initial request for proposals for a second headquarters (HQ2), released in September 2017, attracted great attention and, ultimately, proposals from 238 cities and regions in North America. This case discusses the company's decision to split its HQ2 between two locations, and the ensuing response from local politicians and the public. -
Xinke: Transforming Service through the Crowd Innovation Space
Founded in late 2014, Xinke used a crowdfunding café model to provide a platform for communication among entrepreneurs and investors. In June 2015, Xinke co-operated with a leading real estate company to create a crowd innovation café, and in August 2016, it received A-round financing that led to the establishment of a crowd innovation fund and the creation of a self-access media platform. Xinke had opened a high-end shared office to provide all around services such as funds, publicity, and venues for settled enterprises. It had a network of crowd innovation space (CIS) platforms in various cities across China and was beginning to build a nationwide CIS platform. Could the crowd innovation ecology designed by Xinke inject new vitality into the development of the CIS? How should Xinke's crowd innovation eco-strategy be improved? How could Xinke realize professionalization in and improvement of the crowd innovation ecology? -
Flashfood.Shop: Self-Service Retailing of Fresh Meals in China
On April 1, 2017, Flashfood.Shop, a new brand in self-service retailing of fresh meals, was founded in Dalian, Liaoning province, China. The self-service retail platform provided office workers with affordable and convenient fresh meals 24 hours per day. Flashfood.Shop used intelligent self-catering machines as its physical sales terminals and it used an intelligent self-catering system as its online service interface. By the end of June 2018, Flashfood.Shop had launched 51 catering machines, where customers could buy fresh meals. The company had 14 catering suppliers, 135 different types of catering products, and over 500,000 customers. However, along with its success, Flashfood.Shop incurred a loss in five consecutive quarters. After its establishment, the only source of income for the company was the sale of its catered products. However, operating costs were high due to the instability of the hardware and software systems, as well as low operating efficiency and other factors. Faced with these issues, the start-up's founder and general manager was wondering how to resolve his company's ongoing losses. -
General Electric and Suez: Deal or No Deal?
On Wednesday, March 1, 2017, Jean-Louis Chaussade, the chief executive officer (CEO) of Suez SA (Suez), a French utility company that primarily operated in water and waste management, had to decide whether or not to acquire General Electric Water & Process Technologies. During the negotiations between Chaussade and the CEO of General Electric Company (GE), there had been many drastic changes, including the January 2017 inauguration of a US president with no political experience and an agenda that did not favour international co-operation. The deal represented a significant investment of US$2-$3 billion, and Suez would have to rely on an external partner to have even a chance of winning the bid GE had launched only a few weeks earlier. The complex negotiations were also fraught with risks due to increasing political interference from the new US president. What should Chaussade do? -
Naledo Foods and Beverages Inc.: In Search of Investment Capital
Naledo Foods and Beverages Inc. (Naledo) was a small start-up headquartered in Vancouver, British Columbia, that operated as a social enterprise in the Toledo District of Belize. In 2018, Naledo's operation in Belize produced about 500 jars a day of wildcrafted turmeric paste. With large orders sometimes taking up to six weeks to fill, it was imperative for Naledo to find a way to increase production, and for that, the company needed capital. Naledo's chief operating officer was thus considering ways to raise the necessary capital. -
Tyson Foods and Alternative Proteins: Where to Invest for Sustainable Growth?
This case describes the first investment decision of Tyson Ventures, the venture capital arm of Tyson Foods-the largest protein producer in the United States and one of the largest in the world. Throughout its history, Tyson shifted from producing raw protein to processing protein products and grew significantly, both organically as well as through acquisitions. Tyson Ventures aimed to invest in promising food startups related to sustainability and the case explores four possible investment strategies: plant-based proteins, lab-grown proteins, edible insect proteins, and traditional agriculture investments. Each option has implications for Tyson's operations and profitability, stakeholder perceptions, and sustainability goals. Students will analyze how established corporations in traditional industries, like food, are being disrupted by technology and innovations. -
Tesla Inc.: Strategic Partnerships for Growth
In 2018, California-based Tesla Inc. (Tesla) seemed to be gaining momentum after a series of setbacks in the production of its mass-market Model 3 car. Tesla's partnership strategy, guided by founder and chief executive officer Elon Musk, had been key to its success, yet Tesla did not appear to be succeeding as a stand-alone firm. It continued to command a small portion of overall vehicle sales, it had not mastered mass-production techniques, and it had not solved its sales dilemma by receiving permission to bypass the car dealership network in the United States. Tesla would continue to need partners for growth even as the nature of its partnerships changed. The challenge was to determine Tesla's partnership strategy in the short to medium term.