個案總覽

Emaan Modaraba, a Shariah compliant publicly traded modaraba based in Pakistan, made an investment in shares of Indus Motor Company Limited, a listed company assembling Toyota vehicles, in July 2020 – whose shares were designated to be Shariah Compliant and included in the Pakistan Stock Exchange’s KMI-All Share Islamic Index. In August 2020, Indus’ annual report disclosed that the company increased its short-term investments in interest-bearing instruments in order to be financially resilient in the wake of the COVID-19 pandemic. Ms. Khan, CEO of Emaan Modaraba, instructs Ms. Amina Ali, an investment manager, to provide her opinion on the annual report and whether Indus would remain Shariah Compliant and be included in the portfolio.

In November 2020, A&W Food Services of Canada Inc. (A&W Canada) had a difficult decision to make. As a fast-food chain with a track record on advancing sustainability issues, the company could not ignore the mounting public concern about plastic and packaging waste or the continuously evolving regulatory environment regarding waste in Canada. The company had already taken steps in this direction by introducing paper straws and compostable burger bags, for example. However, it was the large number of beverage cups that stood out as generating the largest amount of disposable waste. Regulations on extended producer responsibility were being introduced across Canada, although the details in each province varied. New materials were constantly being developed, which provided various potential alternatives. A&W Canada had to make a decision but was unsure what criteria to apply. How would this decision affect key stakeholders? How could the company make a more informed decision?

Since its inception in 1994, Sterlite Copper (Sterlite), a subsidiary of UK-based mining and metals conglomerate Vedanta Resources plc, had encountered many controversies. Sterlite’s difficulties included accusations of manipulative compliance practices, legal issues arising out of land acquisition, gas leaks, and the depletion of the environment around its plant in Thoothukudi (also known as Tuticorin) in the Indian state of Tamil Nadu. Sterlite planned to expand and double its copper production, but various stakeholders raised concerns regarding alleged misconduct by the company and the adverse impact of its actions on the lives of the community surrounding the plant.<br><br>In May 2018, these agitations took a violent turn. The public protest led to the death of 13 citizens, and the events attracted negative media exposure. As Sterlite awaited Madras High Court’s ruling which was due in August 2020, the possibility of the plant’s permanent closure seemed likely.<br><br>While Sterlite Copper had been an organization of national importance, contributing to the GDP and creating employment, it suffered from adverse community opinion of allegedly being unethical while remaining in the realm of legality. The entire incident had Sterlite fighting more for its image than its environmental and legal positions. What had gone wrong for Sterlite by August 2020?

In 2019, the head of leadership development for Anglo American plc (Anglo American), a global mining conglomerate, was reviewing the two years she had been working with the human resources (HR) leadership team to establish the company’s international Leadership Academy. Her task was to determine leadership development solutions that supported Anglo American’s strategy and to recommend how to resource, identify, develop, and retain the diverse talent pool required to achieve the company’s business objectives. She had gone to great lengths to ensure the Leadership Academy’s offerings underpinned the organization’s strategic imperatives. She now pondered how to assess the impact of the Learning Academy. Was the human resources leadership team looking at and measuring the right things?

Homemaking had been a centuries-old industry that supplied a variety of services to customers, from more commoditized tasks such as cleaning and laundry to specialized tasks such as elderly care, and prenatal and postpartum care. In China, this industry had traditionally been fragmented and associated with limited innovation. Homeking At Home Information Technology Co., Ltd. (HAH), a company founded in 2010, set the goal of transforming China’s home services industry in the digital age. Using an Internet-based operating model and a digital-first mindset, the company sought to reinvent homemaking, and grew from a startup into a leading player in the homemaking market in China. To sustain its success, the company needed to continually evolve.

Luckin Coffee Inc. (Luckin), an emerging growth firm that aimed to become the market leader in the coffee industry in China, had quickly grabbed market share by using freebies and discounts to entice cost-conscious Chinese consumers to try its products. Luckin sold its coffee and snacks through a proprietary mobile app, and customers either picked up their orders from strategically located stores or had them delivered. By the end of 2019, Luckin had served 40 million customers from its 4,500 stores. While the path to Luckin’s goal was clear, investigations revealed that key executives and board members had allegedly defrauded investors by distorting revenue and expense figures and engaging in related-party transactions that channeled resources out of the company. The accounting scandal led to further investigations, penalties from Chinese regulators, and a drop in the company’s share price and valuation, which went from $12 billion to below $1 billion within 11 months of listing. By August 2020, the company had been delisted from the Nasdaq exchange, its board composition had been changed, and it had been placed under the supervision of “light touch” provisional liquidators in the Cayman Islands. Was there a chance that Luckin could survive the scandal and its investors could recoup their funds? What could the company do to restore investor confidence and regain its path to becoming the market leader in the Chinese coffee industry? What were the implications of the accounting scandal to current and future listings on US stock exchanges?

In 2020, the chief executive officer of Zhida Environmental Technology, a waste management company based in Nanjing, China, was considering adopting blockchain technology into the company’s work process. With the concept of Internet plus recycling, the company was committed to waste sorting and had introduced innovative household waste solutions. However, new challenges were emerging, including stagnant resident participation rates, low profit returns, competitor expansion, and limited support from the local government. Inherent blockchain technology functions such as digital token services, a transparent recycling chain, and collaborative governance mechanisms could potentially improve the company’s current operations and provide a first mover position in the market. However, the chief executive officer had to thoroughly consider the decision of adopting blockchain technology: What true value could it offer and what potential challenges could arise?

On February 20, 2020, the executive vice-president and chief financial officer of Input Capital Corporation, the first agricultural commodity streaming company in Canada, was reviewing a capital stream contract that one of his associates had prepared for Sustainable Farms Inc. and submitted for his approval. One important consideration was the rate of return expected from the contract and the risks involved. The executive called a co-op student to his office and assigned her the task of calculating the internal rate of return, or effective yield, on this capital stream contract. He also hinted at an alternative way to assess the profitability of the contract, which was to estimate the contract’s mark-to-market value.

Xiaomi India Private Limited (Xiaomi India), a subsidiary of the Chinese smart phone company Xiaomi Corporation, controlled a major share in the Indian market. However, its dominance was threatened by geopolitical tensions between India and China. The two countries shared a 4,000 kilometre border and a history of dispute over the border’s actual demarcation. Tensions brewing over the international border during early 2020 precipitated an armed clash between Indian and Chinese troops at one border post that resulted in the death of 20 Indian soldiers. In response, the Indian government issued orders for companies to declare the identity of products made in China, with a preference for products made in India. A consumer boycott of Chinese products was also posing a threat to the Xiaomi brand’s market leadership position, while competitors saw an opportunity to expand their market share. How could Xiaomi India overcome the current negative environment and prepare for similar potential conflicts in the future?

In early 2021, PepsiCo Inc. (PepsiCo), one of the world’s largest food and beverage companies, was undergoing immense criticism for its role in global health issues including obesity, diabetes, heart disease, malnutrition, and cancer. As far back as 2010, executives at PepsiCo had recognized that “society, people, and lifestyles have changed” and that PepsiCo had no choice but to move in healthier directions. Although PepsiCo had made impressive strides in reducing the negative health impacts of some of its products, criticism persisted that it was not going far enough.

On July 29, 2020, Jeff Bezos, the founder and chief executive officer of Amazon.com Inc. (Amazon), testified before a United States House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law that was investigating the company for engaging in anti-competitive practices. Although the company offered low prices and did not distort consumer welfare principles despite its large market size, the Committee questioned whether it had exploited its sellers on both Amazon Marketplace and the Amazon Web Services Marketplace. The company was accused of not only exploiting sellers but also using their sales data for developing its private-label brands. As committee members were looking to redefine monopolistic practices, it was also recommended that Amazon should be split to avoid anti-competitive practices. Was it time for Bezos to proactively split Amazon and avoid antitrust actions against his company owing to its market dominance? What could he do to manage antitrust issues against his company?

In 2020, the head of the Union of European Football Associations (UEFA) Academy, faced some tough decisions surrounding co-creation initiatives. The UEFA Academy was founded in early 2019 to address the learning needs of the football world with the aim of advancing the game. Since its inception, the UEFA Academy had been enthusiastically received by the sporting world. However, in pursuit of constant improvement, the head of the UEFA Academy wondered whether the use of co-creation could bring innovation and excellence to the UEFA Academy’s programs. Which key stakeholders should the UEFA Academy involve in this initiative? What factors should be considered when formulating the UEFA Academy's value co-creation strategy? And what co-creating activities should the co-creation initiative focus on?

In February 2020, the president of South African Chefs Association was exploring ways to ensure a sustained revenue stream for the association, which relied primarily on membership fees for survival. As a non-profit organization, South African Chefs Association had a rich history of representing chefs, enabling them to compete on the international stage, supporting their training and education, and providing members with networking opportunities and a community. The association faced several challenges; most notably, it needed to find an innovative solution to sustainable growth in terms of both membership and revenue numbers and the value created for members. The association’s president needed to establish a sense of relevance and community for its members through a range of strategic partnerships and innovative value contributions, ensure its leadership reflected the racial makeup of the country, and reconsider its structure and purpose.

Innovative US apparel retailer Everlane Inc. (Everlane) employed "radical transparency," disclosing detailed information about the costs it incurred and the factories that manufactured its clothes. The company also claimed to prioritize ethics and sustainability. For example, Everlane committed both to supporting its suppliers by addressing their needs and to eliminating virgin plastics from its entire supply chain by 2021. The company's approach had been successful: since its founding in 2010, Everlane had seen growth in its customer base and revenues. However, in 2020, the company faced a public relations crisis, encountering backlash after laying off a number of employees. While these layoffs were purportedly due to the economic effects of the COVID-19 pandemic, they coincided with employees’ unionization efforts. In addition, many former employees reported that the company was not, in fact, ethical but was anti-Black and anti-union and had a toxic internal culture. As the company had built its business on its image and its promise of ethics, transparency, and sustainability, the crisis called into question the foundation of the organization. How could Everlane move forward according to its stated values and continue to both meet the needs of its customers and to earn a profit?

In May 2020, amid the lockdown in India brought about by COVID-19, P. C. Musthafa, chief executive officer of iD Fresh Food (iD), a food company located in Bengaluru, India, was preparing for a virtual meeting with his co-founders. The company offered customers the value proposition of “freshness” and operated in the ready-to-cook and ready-to-eat segments. iD’s flagship product was batter for preparing idlis and dosas, which were popular Indian breakfast dishes. The co-founders had to decide how to address the challenges arising on both the demand and the supply side of the business brought about by the pandemic, including production and logistics challenges on the supply side, a dip in demand, and the growth of competitors in the segments. How should iD plan its production amid the disruption to the supply chains and logistics sector brought on by the pandemic and ensure that its products maintain the promised value proposition of freshness? How could it ensure that customers continued to trust iD? Could iD script a fresh story and reach its vision of becoming a ₹10-billion company by 2023, despite an economy ravaged by the pandemic?

The Vancouver Coastal Health Authority (VCHA), with guidance from the British Colombia (BC) Provincial Health Services Authority, had been responsible for organizing and executing an effective COVID-19 response. Its approach for testing capacity and supply chain management had been influenced by several factors: lack of supply, lack of labour, lack of testing expertise, and provincial government mandates. Although these factors had constrained the VCHA’s ability to control the virus, BC’s projected case increases posed serious concerns within the current management. The head of the VCHA wondered how she could better position the VCHA to combat COVID-19 in the long term while securing enough supplies. As she was concerned that COVID-19 cases would continue to surge, she knew this strategy had to be effective and time-sensitive.

In 2016, Peter Keith and his cofounders started Meuwly’s Ltd. (Meuwly's) as a subscription food-box service, and in 2018, they established a physical presence in one of the liveliest locations in downtown Edmonton, Alberta. The expansion diversified the company’s revenue streams, including retail, wholesale, special events, and subscription sales. The company strove to be sustainable, but faced a number of challenges. First, customers valued the sustainable, “eat-local” ethos of Meuwly’s locally sourced products but not its single-use product packaging, which failed to reflect the company's sustainability goals; Meuwly’s experimented with alternatives, but these compromised the product quality customers expected. Second, the company’s commitment to paying employees above minimum wage affected its profit margins and financial resources and constrained its availability to pursue sustainability initiatives. Third, misleading industry marketing pervaded the delicatessen market, compromising growth and pricing strategies. Finally, the local delicatessen market was saturated and very competitive. In November 2019, Keith faced important questions regarding the future direction of the company’s sustainability strategy: how could he design an appropriate stage-two sustainability strategy for Meuwly’s while retaining the company’s loyal customer base?

The general director of Northern Canada Evangelical Mission (NCEM) wanted to make some changes to the organization’s accounting system to coincide with the calendar year-end. The changes involved consolidating the financial records for 20 separate ministries operating across the country to reduce the number of redundant, time-wasting, manual entries needed and to align the general ledger accounts with the charitable activities report required by the government. As well, the process for tracking and reporting taxes needed to be improved. Finally, NCEM’s board of directors wanted an increased level of professionalism and timeliness in the organization’s financial statements. The chief financial officer and accounting staff would need a carefully planned schedule to carry out the changes, which would involve bookkeepers, ministry leaders, and the executive team, all while minimizing the interruption to NCEM’s operations. How could the general director make the changes without causing additional problems along the way?

In early 2019, just a year after opening a gallery in Sydney, Australia, the elders of the APY Art Centre Collective proposed opening a second gallery in Adelaide, a much smaller city. The first year in Sydney had been profitable, in part due to an aggressive digital presence. The Collective had some seed money, an offer of a small gallery space, and the draw of serving a large number of the APY community who were residents in Adelaide. But the Adelaide art market was tiny compared to Sydney’s, staff was stretched thin, and budgets were tight. The board’s vision was certainly compelling, but was it practical? Could a digital strategy help Adelaide’s success without cannibalizing the Collective’s success in Sydney? What would such a strategy look like?

In 2019, the development officer at Rowing South Africa was contemplating how to continue the growth of the sport of rowing in a challenging environment. More funding was needed to attain her mandate of extending the sport to previously unexposed communities. Rowing South Africa operated in a complex setting, but the sport had much to contribute to participants. The benefits of rowing were physical and psychological, personal and professional, and often leading to success in many aspects of life. How could she articulate these benefits to increase participation in the sport and attract more funding to support?