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Porsche Canada: Selling Winter Driving
Porsche Canada wants to encourage its Canadian customers to drive their cars in winter. The goal is increased sales of cars (by consumers unwilling to buy a Porsche only for summer driving) and winter accessories such as snow tires. This is a three-fold challenge because Canadians generally believe that luxury vehicles should not be driven in winter due to ice and salt; that sports cars generally perform poorly in winter conditions; and that it is unwise to drive a luxury car in winter when it could be more easily scratched or damaged. -
Toyota: Accelerator Pedal Recall (A)
In January 2010, global automotive manufacturer Toyota faced the task of notifying customers of a recall that involved a faulty accelerator pedal on 1.7 million vehicles. Toyota had already come under intense public scrutiny the previous year over a floor mat recall that affected 4.2 million vehicles. In an attempt to reach the masses for the current recall, Toyota created a letter to customers that was featured in major newspapers and on its website. The letter caused outrage as Toyota did not apologize to consumers. Instead, it talked about the company’s 50-year heritage and how Toyota was halting production to focus on fixing the vehicles that were on the road. The president of Toyota Motor Sales, U.S.A. Inc. needed to identify the problems with the letter before drafting a new one. -
Toyota: Accelerator Pedal Recall (B)
This case is a supplement to Toyota: Accelerator Pedal Recall (A). -
AT&T Wireless: Text Messaging
This case examines AT&T’s wireless business with a focus on its text messaging services. The industry features a high proportion of fixed costs in relation to acquiring spectrum and building a network. Variable costs are relatively low, especially in the case of SMS text messages. Pricing and margins in text messaging have attracted regulatory scrutiny in the Unites States, Canada, and elsewhere. The case requires the use of key concepts in cost behaviour, cost volume profit analysis, and product costing to understand the nature of the business and the profit margins involved. Many service or high-tech businesses exhibit similar cost behaviours, and so the case gives students insight into the management of such enterprises. -
The Tim Hortons Brier
The Tim Hortons Brier is the annual Canadian men’s national curling championship. In the case, students will assume the role of Peter Inch, chair of the 2011 Brier Host Committee, to create and finalize the promotional plan for the 2011 Brier, to be held in London, Ontario. Inch’s objectives are two-fold: i) create interest for the event and the sport of curling and ii) execute a safe and profitable event. -
Bunny Butcher: PETA Protests Donna Karan New York
November 29, 2010, was “Cyber Monday,” one of the busiest online shopping days of the year, with the potential to approach $1 billion in online sales in North America. The chief designer of fashion company Donna Karan New York (DKNY) was facing a difficult situation. On this particular Cyber Monday, activists for the animal rights group People for the Ethical Treatment of Animals (PETA) had posted simultaneous messages on DKNY’s Facebook page. Anyone viewing the page could not fail to discern the “DK Bunny Butcher” message. This action by PETA was the culmination of several years, beginning in 2005, of attempting to convince DKNY to stop using fur in its collections. This November 29 message was a sharp reminder to both DKNY and its Cyber Monday customers that, up to this point, the company had refused to stop using fur. It was available to be viewed by DKNY’s over 200,000 Facebook fans as well as millions of online Cyber Monday shoppers. The chief designer was unsure how to respond: on one hand was the desire to clearly explain the use of fur, but on the other was the desire to avoid escalating the publicity surrounding the matter. She needed an immediate strategy that would retain her brand’s image and protect future sales. -
OSSCube: Leveraging Social Media
Established in 2006, OSSCube was an open source software development company based in North Carolina, United States, which had its India office in Noida and its development centres in Delhi, Bangalore, and Noida. OSSCube started as a software training provider and gradually emerged as an open source software development and consulting company. The marketing of OSSCube’s offerings was primarily executed by search engine optimization (SEO) initiatives. Later, OSSCube created a social media presence on a variety of social media platforms such as Facebook, Twitter, and Vimeo. The primary objective of creating a presence on these social media platforms was to augment the company’s SEO initiatives. Although this strategy helped OSSCube in gaining business leads, the community manager of the firm realized that the strategy was not building the brand identity of OSSCube. Also, the prospect of having a wide presence on social media platforms to augment SEO activities created confusion in consumers’ minds regarding OSSCube’s expertise. Hence, in 2010, the manager was reviewing the social media approach with some definite objectives such as branding employees, branding OSSCube, and promoting open source software. He faced the challenge of forming an appropriate social media strategy that would address these objectives. -
Nokia India: Battery Recall Logistics
This case presents the challenge faced by Nokia India in 2007. Nokia had built a strong brand reputation over a ten-year period and was a market leader in Indian mobile devices. India, incidentally, was also Nokia’s second-largest market, next only to China. Suddenly, what corporate headquarters considered a routine product advisory for a defective battery resulted in panic in customers after the Indian media widely publicized the potential dangers that defective batteries could pose. Over a three-month period, Nokia India had to recall a few million batteries and replace them with new ones.<br><br>The case provides an opportunity for students to develop practical knowledge of the role of operations management in a product recall situation, particularly in an emerging market context. Product recalls are an integral part of supply chain management (SCM). Companies inevitably face a question of when, not if, a recall will be necessary. These recall situations combine the complexity of operations with the time-urgency of a mission-critical task. The case also provides a rich context to learn about the interaction of SCM, information systems and reverse logistics, and to understand the marketing, logistics, and communication challenges faced by a multinational company operating in an emerging market such as India. -
Orascom Telecom: Risks of Internationalization
Orascom Telecom Holding S.A.E. (OTH) was established in 1998 in Egypt and grew to become a major player in the global telecommunications market. OTH was among the largest and most diversified network operators in the Middle East, Africa, and South Asia. Orascom Telecom Algeria (Djezzy) was launched in February 2002 and grew to become the market leader in Algeria in terms of both subscriber numbers and the quality of telecommunications services provided. Djezzy served more than 14.7 million subscribers on its network and had a 62.9 per cent market share.<br><br>Orascom wanted to further expand, and India was considered a great opportunity. In 2006, OTH agreed to acquire a 19.3 per cent stake in Hutchison to penetrate the Indian market. India was a promising market as there were strong complementary similarities between Orascom and Hutchinson Telecom. However, Orascom was not able to enter the market because it did not consider the expenses in an accurate way and ignored many factors. Now, in 2009, the treasury director of OTH was wondering what lessons in the risks of internationalization he could learn from the company’s failure in India and present difficulties in Algeria. -
Partnership for Lebanon and Cisco Systems: Promoting Development in a Post-war Context
The project manager of the Partnership for Lebanon (PFL) and Cisco Systems’s regional director of corporate affairs for the Middle East and Africa met in September 2009, three years after the PFL was first initiated. The meeting primarily revolved around the challenge of sustainability and what useful suggestions they could put forward to their partners to ensure that the projects initiated through the PFL were not dependent on the continuous investments of the partners.<br><br><br><br>The PFL, a major partnering initiative in a post-war context, was initiated in September 2006 after President George W. Bush called for the assistance of U.S. companies to help in the relief and reconstruction efforts in Lebanon after the 2006 war between Israel and Hezbollah. The five companies involved were Cisco Systems, Intel Corporation, Ghafari Inc., Occidental Petroleum, and Microsoft. They leveraged their core competence under five main work streams: emergency relief/response, job creation/private-sector revival, developing information and communication technology infrastructure, workforce training/education, and developing connected communities. Cisco took a leadership position within the PFL, establishing a management office in Beirut staffed by five senior full-time Cisco employees, and committed an investment of $10 million in the Lebanese private sector over a three-year period. The PFL’s corporate partners engaged closely with the Lebanese government as well as with various international and local NGOs to develop initiatives under the five work streams and yield a long-term sustainable impact. -
Singareni Collieries: From Gloom to Glory
The case narrates how A.P.V.N. Sarma, chairman and managing director of Singareni Collieries Company (SCCL) since 1997, realized the need for change to rescue the company from impending bankruptcy. SCCL, a supplier of coal to the power and energy sectors, had been declared bankrupt by the Board for Industrial and Financial Reconstruction twice, in 1992 and 1996, and had accumulated losses of 12.19 billion rupees. As it provided direct and indirect employment to people residing in the region around SCCL, the health of the organization was critical not only to the massive workforce, but also to the state of Andhra Pradesh. The power generation units of the state relied significantly on the coal supplied by SCCL. <br><br>The case captures various initiatives undertaken by Sarma to bridge the trust deficit between management and blue-collar workers with low literacy and income levels. It discusses the novel communication strategies to connect with workers. The case describes how numerous strikes plaguing SCCL were curbed and order was restored to allow productivity to rise. Under Sarma’s leadership, SCCL achieved a net profit of 894 million rupees for the fourth consecutive year in 2001. Sarma had a fixed tenure of five years, ending in 2001. The task for the new leader was to build on the foundations laid by Sarma and take SCCL to new heights. -
Experience China: A National Image Campaign in the United States
The China national image film “People Chapter” — officially a sub-series of the “Experience China” campaign — was launched by the Chinese government to coincide with President Hu Jintao’s visit to the United States in mid-January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per day, and had appeared approximately 8,400 times when the broadcast ended on February 14, 2011. The video showed a series of Chinese people, ranging from ordinary citizens to celebrities. It was a publicity effort aimed at promoting a truer image of China abroad, and signalling that China was opening to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly mixed since the initial release of the promotional film. Experts from China and abroad were skeptical of the effectiveness of the campaign in promoting the national image of modern China to the world. This case presents the opportunity to examine the basic elements in the marketing communication process, analyze how decisions in marketing design affect outcomes, and understand the differences between nation and product promotion. -
Solutions Care Association: Developing an Integrated CSR Strategy
This case focuses on Solutions Care Association (SCA) — a nonprofit health care organization established in 2000 that quickly became a leader in environmental stewardship and social responsibility. With headquarters in Nevada, United States, the company had a strong mission and socially responsible culture, which helped attract talent and launch social and environmental initiatives. Despite its numerous achievements and awards, however, there was limited awareness internally and externally about these initiatives and their impact on business and society. In addition, the company did not have a comprehensive way to track and report these achievements. As an emerging leader of the integrated health care plan in the United States, Solutions Care Association had both the responsibility and the opportunity to be a model of what American health care should look like. With growing concerns over and scrutiny of the health care industry, there was no better time for Solutions Care Association to continue to strengthen its leadership position in addressing key social and environmental problems, such as providing affordable health care, reducing climate change impacts, phasing out toxic chemicals and creating a safe, culturally sensitive, and supportive environment for employees, patients, and suppliers. -
Dr. Amita Joshi at Samuel Drugs Limited
AWARD-WINNING CASE: Adjudged second-best case at the ISB Case Competition 2010 held in partnership with the Richard Ivey School of Business and the Association of Indian Management Schools and sponsored by the Chartered Institute of Management Accountants.<br><br>This case describes the successful journey of Dr. Amita Joshi in a medium-sized Indian pharmaceuticals organization, Samuel Drugs, which was facing serious performance problems. As CEO, Joshi realized that the organization had strong manufacturing capability but that it lacked marketing excellence and badly needed someone who could be tasked with making the company marketing-oriented. Joshi selected a young general manager of sales, Rajesh Mishra, as director of marketing. He proved to be an excellent choice and performed very well in his new role. Samuel Drugs had three subsidiaries and one of them, Eastern Pharmaceuticals Limited, required a managing director and Mishra was selected. He also continued to perform his previous role of director of marketing. Then conflict ensued between Joshi and Mishra. This case reveals the important roles of communication, co-ordination, multiple and diverse stakeholders, and organizational conflict in determining organizational effectiveness. It also highlights the point that managers need to tackle both formal and informal aspects of an organization, rational and social sides of organizational life, and changing dynamics of relationships. -
Globalive: Change in the Canadian Wireless Telecom Industry
This case describes the situation for Globalive in 2009 shortly after its bid to enter the Canadian wireless telecommunications sector had been denied by the regulatory agency on the grounds that it breached foreign ownership restrictions. The case covers the background to Globalive and the events leading to the regulator’s decision. Andrea Wood, the chief legal officer of WIND Mobile, the wireless brand owned by Globalive, must decide what recommendations to make to Globalive’s chief executive officer. -
Canadian Telecommunications: Industry Regulation and Policy
This case study is based on a high-profile issue facing the Canadian federal government that began in 2008 and was still ongoing as of December 2010. Industry Canada, working from a set of policy objectives crafted over a period of three years, had decided that in the auction sale of wireless spectrum licenses in 2008, it would set aside 40 per cent of the licenses for new entrants. This decision had come about because research indicated that Canadian usage of wireless services had lagged behind that of other developed countries, mainly due to the high relative cost of wireless services. <br><br>One of the new entrants was Globalive Communications Corporation (Globalive), a start-up which was funded by Orascom Telecom Holding S.A.E., an Egyptian company. Despite the fact that Canada had well-defined foreign ownership restrictions for the telecommunications sector, Globalive was allowed to bid. It won, and paid $442 million for its spectrum, began to hire hundreds of staff, and committed another $300 million to investing in wireless infrastructure. From the time Globalive applied to participate in the spectrum auction to the period prior to its official launch, the firm met several times with Industry Canada, the Canadian Radio-television and Telecommunications Commission (CRTC), and the Prime Minister’s Office (PMO) to ensure that its ownership was structured so as to fit within the foreign ownership restrictions.<br><br>Pressure had been put on the CRTC by carriers such as Rogers and Bell to conduct a formal review of Globalive, and this review had determined that Globalive did not fit within foreign ownership restrictions. However, the government had overturned this decision, revealing a conflict between regulation and policy. -
A Bomb in Your Pocket? Crisis Leadership at Nokia India (A)
This case addresses the theme of crisis leadership in a multinational enterprise in order to help students internalize the critical challenges of a multinational company in an emerging market. In August 2007, a routine product feedback and defect analysis process identified a defective batch of batteries supplied by a Japanese vendor. India happened to be the recipient of the largest proportion of the defective batch. Nokia’s corporate communications team, based in Finland, in cooperation with the Indian team, responded with a customary global product advisory. Instructions were made available on the Internet for customers to diagnose a defective battery and get a free replacement. Nokia was shocked to see the antagonistic response from the Indian press to the product advisory and the ensuing mayhem that spread quickly through the country. The head of Nokia India and his team had to act swiftly to preserve the company’s hard-earned reputation and market share. Case (A) is set as a midnight strategy session at Nokia’s Indian headquarters to chart out the way forward. A Bomb in Your Pocket? Crisis Leadership at Nokia India (B) is a short version of what actually happened: how Nokia and the team responded to the crisis and and used the situation to create new organizational capabilities. -
A Bomb in Your Pocket? Crisis Leadership at Nokia India (B)
This case is a supplement to A Bomb in Your Pocket? Crisis Leadership at Nokia India (A). -
CAA Roadside APP
This case describes a real scenario in which an elderly couple's vehicle is stranded in a remote location, causing emergency services to be dispatched at significant effort and cost, whereas an inexpensive tow truck dispatch would have completely resolved the problem. To prevent these kinds of false alarm situations, the Canadian Automobile Association (CAA) has developed a free iPhone application called CAA Roadside, which takes advantage of location-based technology that is built into the iPhone. Discussion questions invite students to consider the business benefits of developing mobile apps, tradeoffs involved in choosing one development platform over another, and long-term positive and negative impacts of the diffusion of mobile location-based technologies. -
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.