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Managing in the Age of Outrage
Almost every leader in every sector is now dealing with angry stakeholders. Even a revered company like Apple can find itself suddenly managing outrage flashpoints, both with employees and with external groups. Such encounters are nothing new; what sets this time apart is a perfect storm of three forces: (1) Many people feel unhopeful about the future. (2) Many feel, rightly or wrongly, that the game has been rigged against them. (3) Many are being drawn toward ideologies that legitimize an us-versus-them approach. The author offers a five-step framework for dealing with outrage that draws on analytical insights from disciplines as wide-ranging as the science of aggression, managerial economics, organizational behavior, and political philosophy. It forms the basis of a course he teaches at Oxford and has been built inductively through a series of deep-dive case studies on a variety of organizations, including IKEA, the London Metropolitan Police, Nestlé, and Oxford University Hospitals. -
Korea: The Miracle on the Han River
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OneSmart
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Northvolt: Building Batteries to Fight Climate Change
In 2016, Swedish entrepreneurs Carl-Erik Lagercrantz and Peter Carlsson founded an electric battery company called Northvolt with the dual goals of creating a company to address climate change and bringing battery manufacture to Europe. Northvolt, which succeeded in building a "gigafactory" near the arctic circle in Sweden, was soon on track to become one of the largest and most sustainable battery manufacturers in the world. But, building "the world's greenest battery" to fight climate change was a difficult-and perhaps unrealistic-goal. How much could Northvolt really contribute to the European effort against society's greatest challenge? -
Chene Bleu: Caught in the Trade Tariff Crossfire
A French wine estate faced a 25% tariff on its U.S. exports following a multi-decade-long EU-U.S. trade dispute in the aerospace industry. -
National Security and Transnational Capitalism
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Hiring with the Community in Saint Paul
This case reviews Saint Paul Mayor Melvin Carter's decision to involve the community in the process of hiring his cabinet members. Rather than relying on an executive recruiting firm or choosing cabinet heads from his own network, Carter recruited 100 community members and asked them to vet, screen, and interview candidates for ten city directorships, with Carter reserving the right to make final decisions. While his choices aligned with the panels for seven positions, they diverged for the remaining three. In January 2018, as Carter prepared to announce his decisions, he hoped his choices would not undermine belief in the participatory hiring process and his credibility as a mayor who valued community voices. -
Spaceport America, Public Sector Risk-Taking, and Political Accountability (B)
B case to case 723011 Sitting quietly in the heart of the New Mexico desert in the summer of 2014, Spaceport America (SA) housed little of the activity its supporters anticipated when opening its hangar doors in 2011. Despite $1 million in annual rent from Virgin Galactic, British billionaire Richard Branson's space tourism company and SA's anchor tenant, the spaceport was still heavily reliant on government funds. Flight delays and a crash on Halloween of 2014 that left one pilot dead and stalled Virgin Galactic's testing and development meant that the New Mexico Spaceport Authority (NMSA) was not receiving critical user fees to run spaceport operations. As a result, state and local taxpayers were bearing much of the cost of the underutilized spaceport, even after having invested $218 million from local and state funds. With the 2015 session of New Mexico's congress looming, the fate of the world's first "purpose-built" spaceport was in question. -
Spaceport America, Public Sector Risk-taking, and Political Accountability (A)
Sitting quietly in the heart of the New Mexico desert in the summer of 2014, Spaceport America (SA) housed little of the activity its supporters anticipated when opening its hangar doors in 2011. Despite $1 million in annual rent from Virgin Galactic, British billionaire Richard Branson's space tourism company and SA's anchor tenant, the spaceport was still heavily reliant on government funds. Flight delays and a crash on Halloween of 2014 that left one pilot dead and stalled Virgin Galactic's testing and development meant that the New Mexico Spaceport Authority (NMSA) was not receiving critical user fees to run spaceport operations. As a result, state and local taxpayers were bearing much of the cost of the underutilized spaceport, even after having invested $218 million from local and state funds. With the 2015 session of New Mexico's congress looming, the fate of the world's first "purpose-built" spaceport was in question. -
Afrigen Biologics: Vaccines for the Global South
The majority of vaccines used on the continent of Africa (99%) are produced offshore. This makes African nations reliant on the West for major health care needs, a problem which was exacerbated by the COVID-19 pandemic. Afrigen Biologics (in partnership with the WHO) is seeking to lessen this disparity by putting vaccine production in the hands of South Africans and other low- and middle-income countries. Afrigen Biologics is the first in a planned hub-and-spoke model which will extend throughout Africa and South America, allowing local labs to use shared knowledge to produce their own vaccines, particularly the COVID-19 vaccine. However, Afrigen and the WHO face a number of challenges to their proposed model. First, though Afrigen reports it has produced an original vaccine, the company did use publicly-available information about the Moderna vaccine as a starting point for their production. Long-term use of Moderna's "recipe" is not guaranteed, as it is unclear whether the company will enforce its intellectual property rights to prevent others from producing a similar vaccine. Second, Afrigen could begin facing local competition from Moderna and other large vaccine producers such as Pfizer and BioNTech. Pfizer and BioNTech have already begun sending modular lab "pods" to Africa to be able to produce its vaccine on the continent. Moderna also has proposed setting up vaccine centers in Africa. The presence of these larger companies within LMICs could threaten the development of the proposed hub-and-spoke model, thus continuing to limit the power of local labs to produce vaccines for their communities. Not to mention that demand for vaccines has recently been low in Africa, making it difficult for any new players to enter the market. -
Italy: Between Technocracy and Democracy
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The Trans-Pacific Partnership and the Management of Globalization (B)
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The Uyghur Forced Labor Prevention Act: Trade & Genocide in U.S.-China Relations
On June 21, 2022, the Uyghur Forced Labor Prevention Act (UFLPA) went into effect, requiring companies to prove that goods imported from the People's Republic of China were not made with forced labor. The bill was a reaction to reports of products being made with forced labor from Uyghurs and other Muslim minorities being held in camps in the PRC, chiefly in the Xinjiang Autonomous Region. However, implementation of the bill would be difficult. The PRC government denied the existence of forced labor, and this would make it nearly impossible for importers to trace their supply chains all the way to the origins of primary goods and prove that no forced labor was involved. Three industries were chiefly at stake - tomatoes, cotton, and polysilicon - at a time of high inflation and increasing urgency to do something about climate change, but the bill also threatened to fundamentally re-shape U.S.-PRC relations, potentially along the lines of a full-scale economic "decoupling." -
Multinationals Need Closer Ties as Globalization Retreats
Researchers studied eight multinational firms to learn what makes some companies better able to deal with a host country's hostility than others. They found that firms operating in foreign countries through a joint venture with local companies tended to rely too much on their partners to relate to stakeholders and missed early warning signs of hostile government actions. In comparison, companies that operated through directly controlled subsidiaries had better intelligence and better outcomes. -
Birla Carbon Egypt: Building Soft Power in a Foreign Country
Birla Carbon, a flagship business of the nearly $60-billion global conglomerate and India-headquartered Aditya Birla Group (ABG), is one of the world's top manufacturers and suppliers of high-quality carbon black. The largest among its 16 manufacturing plants is Birla Carbon Egypt (BCE), situated in the port city of Alexandria. BCE started its operations in 1994, to become the first carbon black manufacturing unit in Egypt and the Middle East. Over three decades it has grown to become a leading exporter in the region, playing a significant role in the Egyptian economy. However, the journey has not been without its challenges as BCE has tackled political unrest and frequent changes in government, besides growing concerns about pollution. Given Egypt's recent volatile political history, would BCE be able to successfully continue to separate business from politics? More broadly, what would BCE's success or failure mean on a global scale? As India seeks to grow into a great power, how would its economic footprint abroad distinguish it from other great powers? Could BCE represent a new, Indian version of FDI? -
A New "New Normal"?
Communities can thrive and grow, or they can struggle and decline, but what causes these two outcomes? Attracting and nurturing businesses and organizations is essential to creating vibrant economies, successful communities, and a higher quality of life. Political leaders and average community residents should know about economic and community development; shared knowledge and full participation from everyone will ultimately help communities flourish. In Rebooting Local Economies, the authors use their experience helping domestic and global communities prosper to offer a practical guide for others who want to help communities reach their goals and thrive; each chapter gives real-life examples and suggests concrete actions anyone can take within any community. In a constantly changing environment, communities and even larger regions can attain and maintain prosperity through better jobs, public services, and amenities. Chapter 1 explores the effects of the COVID-19 pandemic, looking at it through a community and economic development lens and putting it in historical perspective. Change, especially sudden change, can be difficult.. The phrase new normal is being used to describe how society has changed long-term due to the virus; the validity of this idea is discussed by looking at generational impacts, economic impacts, and how the structure of jobs has changed. Some pandemic-related changes will probably continue, and these changes can offer both challenges and opportunities for communities. For example, COVID-19 increased the rate of people moving out of big cities; this shift could be beneficial or not depending on how companies and communities react. -
How Prosperous Is Your Community?
Communities can thrive and grow, or they can struggle and decline, but what causes these two outcomes? Attracting and nurturing businesses and organizations is essential to creating vibrant economies, successful communities, and a higher quality of life. Political leaders and average community residents should know about economic and community development; shared knowledge and full participation from everyone will ultimately help communities flourish. In Rebooting Local Economies, the authors use their experience helping domestic and global communities prosper to offer a practical guide for others who want to help communities reach their goals and thrive; each chapter gives real-life examples and suggests concrete actions anyone can take within any community. In a constantly changing environment, communities and even larger regions can attain and maintain prosperity through better jobs, public services, and amenities. Chapter 2 discusses a broader, more holistic definition of prosperity and provides a guide to help attain it. Rather than simply describing the economy, community prosperity should include basic needs, quality of life, and community attachment; an example comparing two fictional cities is given. The idea of a prosperous community is mapped onto Maslow's hierarchy of needs. A strong economy is needed to help a community gain social characteristics its residents want. A roadmap is offered to help explore ideas on how to enhance the prosperity of a community and how to approach community-level decisions. Community budgeting is also discussed, comparing it to companies' investment decisions and providing steps to create an effective budget. -
Laying the Foundation
Communities can thrive and grow, or they can struggle and decline, but what causes these two outcomes? Attracting and nurturing businesses and organizations is essential to creating vibrant economies, successful communities, and a higher quality of life. Political leaders and average community residents should know about economic and community development; shared knowledge and full participation from everyone will ultimately help communities flourish. In Rebooting Local Economies, the authors use their experience helping domestic and global communities prosper to offer a practical guide for others who want to help communities reach their goals and thrive; each chapter gives real-life examples and suggests concrete actions anyone can take within any community. In a constantly changing environment, communities and even larger regions can attain and maintain prosperity through better jobs, public services, and amenities. Chapter 3 describes the process of community development as a tool to position a community for prosperity. The chapter begins with a discussion on the fundamentals of community development, including strategies such as leadership development, planning, and identifying assets in the community. Community development depends on believing that positive things can happen and on residents working together; having a vision and being creative are also vital. Two types of communities ("sunrise" and "sunset") are described. The community development chain is offered as a framework for community development. Well-being and sustainability are also factors that must be considered. When there is a good foundation of a prosperous-ready community, economic development can then build on that foundation to achieve prosperity. -
Building a Prosperous Community
Communities can thrive and grow, or they can struggle and decline, but what causes these two outcomes? Attracting and nurturing businesses and organizations is essential to creating vibrant economies, successful communities, and a higher quality of life. Political leaders and average community residents should know about economic and community development; shared knowledge and full participation from everyone will ultimately help communities flourish. In Rebooting Local Economies, the authors use their experience helping domestic and global communities prosper to offer a practical guide for others who want to help communities reach their goals and thrive; each chapter gives real-life examples and suggests concrete actions anyone can take within any community. In a constantly changing environment, communities and even larger regions can attain and maintain prosperity through better jobs, public services, and amenities. Chapter 4 builds on the previous chapter, exploring how to create a prosperous community through economic development once there is a solid foundation. A model is given to visualize money flow and wealth within a community. Economic development can be defined differently by different communities; communities should try to avoid economic development outcomes that happen "to them" and try to achieve those that happen "for them." Certain factors, such as transportation infrastructure and available sites, can attract a business to a community; a practical approach to attracting businesses is offered. The economic development stool describes three ways prosperity can increase: business recruitment, business retention and expansion, and new startups. Each of these methods, as well as community enterprise, is discussed. Guidelines on how to organize and fund economic development are also provided. -
Sustaining Prosperity
Communities can thrive and grow, or they can struggle and decline, but what causes these two outcomes? Attracting and nurturing businesses and organizations is essential to creating vibrant economies, successful communities, and a higher quality of life. Political leaders and average community residents should know about economic and community development; shared knowledge and full participation from everyone will ultimately help communities flourish. In Rebooting Local Economies, the authors use their experience helping domestic and global communities prosper to offer a practical guide for others who want to help communities reach their goals and thrive; each chapter gives real-life examples and suggests concrete actions anyone can take within any community. In a constantly changing environment, communities and even larger regions can attain and maintain prosperity through better jobs, public services, and amenities. Chapter 5 offers a summary of key lessons from the text and provides more examples of successful communities. COVID-19 created different challenges for different communities around the world, and long-term changes (a "new normal") may differ between communities. In order to build a prosperous community, what is being built needs to be defined; strategic and budget decisions should be based on the community's vision and definition of prosperity. Community development, or community building, can create a foundation for a prosperous-ready community to build off of with economic development. Once a community achieves its prosperity goals, it needs to continue putting in the work to maintain and support that prosperity.