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Stelios Haji-Ioannou, the 32-year-old CEO and founder of easyJet airlines, achieved profitability for the first time in 1999, almost four years after launching his London-based, low-cost carrier. The concept behind easyJet was to offer low-cost airline service to the masses, and the airline accomplished this by adopting an efficiency-driven operating model, creating brand awareness, and maintaining high levels of customer satisfaction. A key issue in the case is whether the airline will continue to grow and survive in the highly competitive, low-cost segment of the market. In 2000, Haji-Ioannou was anxious to try his hand at launching other businesses, so he started a chain of Internet cafes. Some questioned whether Haji-Ioannou would be able to transfer his low-cost business model successfully to Internet cafes. Undeterred, Haji-Ioannou moved ahead with his plan to create easyEverything, with the belief that he could make a profit by encouraging customers to surf the Internet, send e-mail, and shop online. A 2002 and 2001 ECCH award winner.

By February 2000, easyEverything, the first chain of large Internet cafes to be conceived anywhere in the world, had already successfully launched five shops in London. The company also aggressively planned to launch an additional 50 shops across Europe by 2002. EasyEverything was just one of several companies operating under the U.K.-based parent company easyGroup, which also managed easyJet airlines and several other start-up ventures. Stelios Haji-Ioannou, chairman and owner of easyGroup, was a charismatic and wealthy entrepreneur known for his down-to-earth, no-frills style that had come to exemplify the easy brand. His mission for easyEverything was simple: to make easyEverything the cheapest way to access the Internet. He also envisioned easyEverything as a virtual alternative to department stores, where users could shop, send e-mails, and surf the Internet. However, some industry experts questioned whether Internet cafes were a viable long-term concept because of rapid changes in technology, such as wireless Internet access.

In April 2000, Stelios Haji-Ioannou launched easyRentacar, his latest Internet-based business. EasyRentacar was just one of several companies operating under the U.K.-based parent company, easyGroup, which also managed easyJet airlines and easyEverything, a chain of Internet shops. Haji-Ioannou, chairman and owner of easyGroup, was a charismatic and wealthy entrepreneur known for his down-to-earth, no-frills style that had come to exemplify the easy brand. After signing a deal with DaimlerChrysler to lease 5,000 of its Mercedes A-Class vehicles, Haji-Ioannou entered the rental car business with the goal of offering low rates. He believed that established players in the rental car business, such as Budget, Avis, and Hertz, had formed a cartel that fed off the corporate client. He aimed to provide a low-cost alternative for consumers who paid out of their own pockets. Illustrates how Haji-Ioannou has once again entered a new business with the goal of redefining the existing industry business model to add shattering value for the customer.

This case teaches the student how to apply economic and NPV analysis to the fundamentals of a B2C transactional e-commerce business. It uses as an application how a new entrant online broker such as Ameritrade attacks incumbent financial service providers in the U.S. by unbundling its services, offering prices close to marginal production costs, and by expanding consumer choice and convenience, all supported by intensive investments in aggressive advertising. It analyses marketing expenses as an investment in the acquisition of customer accounts and deepens the understanding of the profit model of this B2C activity, reflecting on the relative importance of net income from transactions versus net income from margin loans and on the relevance of transaction costs and trading volumes. The emphasis of the case is on the particular free cash flows economics of many B2C business and the annuity free cash flow income stream to be collected from a customer. It allows estimating NPV and IRR of the marketing investments. It provides an opportunity for students to study the sensitivity of this NPV to the different account value drivers. This gives students an insight into the strategic threats and opportunities of the business, and into the economic reasons for the high volatility on Internet stocks during a period in which contenders compete intensively to gain significant first mover advantages and to be ahead on the power curve in order to attain a winner take all position.

AllerGen, a young biotechnology firm, is heading for trouble, possibly even bankruptcy. The company's one product--a vaccine for people allergic to cats--may never make it to market. And turnover is on the rise, not only because of the vaccine's uncertain future but also because employees are increasingly unhappy working for founder and Chief Scientific Officer Harry Huston. Although Harry is an excellent scientist, he has no business background. Several years ago he recruited a president and COO to bring some much-needed business savvy to the organization, but that executive left after a year because Harry simply wouldn't let him do his job. It hasn't helped matters that AllerGen's board consists mainly of Harry's friends and family, who go along with whatever he wants. Recently some scientists at AllerGen had the phenomenal good luck to develop, almost by accident, an alternative potentially lucrative product. But Harry won't give the go-ahead to develop a business plan for it. "There has to be someone who stays the course and works for the sheer joy of finding the cure," he says. "There are people out there who need this vaccine. Some very badly. That's why we're here. Not for the money." It's up to two senior scientists to make Harry see that he is holding AllerGen back. How can they convince Harry that changing course is critical? In R00106 and R00114, commentators Matt Benasutti, Mark Lipton, George N. Hatsopoulos, Dorothy Beckert, and Warren D. Miller offer advice on this fictional case study.

AllerGen, a young biotechnology firm, is heading for trouble, possibly even bankruptcy. The company's one product--a vaccine for people allergic to cats--may never make it to market. And turnover is on the rise, not only because of the vaccine's uncertain future but also because employees are increasingly unhappy working for founder and Chief Scientific Officer Harry Huston. Although Harry is an excellent scientist, he has no business background. Several years ago he recruited a president and COO to bring some much-needed business savvy to the organization, but that executive left after a year because Harry simply wouldn't let him do his job. It hasn't helped matters that AllerGen's board consists mainly of Harry's friends and family, who go along with whatever he wants. Recently some scientists at AllerGen had the phenomenal good luck to develop, almost by accident, an alternative potentially lucrative product. But Harry won't give the go-ahead to develop a business plan for it. "There has to be someone who stays the course and works for the sheer joy of finding the cure," he says. "There are people out there who need this vaccine. Some very badly. That's why we're here. Not for the money." It's up to two senior scientists to make Harry see that he is holding AllerGen back. How can they convince Harry that changing course is critical? In R00106 and R00114, commentators Matt Benasutti, Mark Lipton, George N. Hatsopoulos, Dorothy Beckert, and Warren D. Miller offer advice on this fictional case study.

AllerGen, a young biotechnology firm, is heading for trouble, possibly even bankruptcy. The company's one product--a vaccine for people allergic to cats--may never make it to market. And turnover is on the rise, not only because of the vaccine's uncertain future but also because employees are increasingly unhappy working for founder and Chief Scientific Officer Harry Huston. Although Harry is an excellent scientist, he has no business background. Several years ago he recruited a president and COO to bring some much-needed business savvy to the organization, but that executive left after a year because Harry simply wouldn't let him do his job. It hasn't helped matters that AllerGen's board consists mainly of Harry's friends and family, who go along with whatever he wants. Recently some scientists at AllerGen had the phenomenal good luck to develop, almost by accident, an alternative potentially lucrative product. But Harry won't give the go-ahead to develop a business plan for it. "There has to be someone who stays the course and works for the sheer joy of finding the cure," he says. "There are people out there who need this vaccine. Some very badly. That's why we're here. Not for the money." It's up to two senior scientists to make Harry see that he is holding AllerGen back. How can they convince Harry that changing course is critical? In R00106 and R00114, commentators Matt Benasutti, Mark Lipton, George N. Hatsopoulos, Dorothy Beckert, and Warren D. Miller offer advice on this fictional case study.

Computer Reservation Systems (CRS) vendors have enjoyed an indispensable role in the travel industry--75% to 80% of all airline bookings are made by travel agents using CRSs. But by mid-1998, their solid position in the industry is being threatened by two forces: the Web Sites run by airlines that are capable of accepting bookings directly from customers, and a new CRS, supported by travel agencies around the world, called Genesis. It is scheduled to go on trial in fourth quarter of 1998 and for launch in 1999.

Shangri-La Hotels and Resorts (SLA) owns and manages the largest deluxe chain in Asia. In 1993, the managing director recognized that there was a need to create a common goal and a set of common values to bind all Shangri-La Hotels and to instill among them the feeling that they were all part of the same organization. The "Shangri-La 2000" strategic plan was developed to achieve these objectives. This case provides a detailed account of the formulation process of "Shangri-La 2000" and how it was communicated to every employee at Kowloon Shangri-La (KSL)--one of the 38 Shangri-La Hotels. A major challenge faced by the general manager of KSL was how to interpret the performance measurements taken before and after the implementation of the strategic plan to assess its effectiveness. He also wondered what he could do to maintain the momentum of "Shangri-La 2000" at KSL amid the adverse operating environment brought about by the Asian economic crisis.

Law, by definition, was jurisdictional, yet in cyberspace, it had become increasingly questionable whether laws regulating the physical marketplace were able to be superimposed onto this new marketspace or were altogether redundant. The collapsing of time and space that Internet-based commerce enabled had huge implications for international trade. This case outlines the international implications of "doing business" on the Internet. While the issues of "multi-jurisdictional compliance" are wide ranging, an example in the case draws attention to the protection of intellectual property rights. In particular, issues related to the use of trademarks on Web sites, in hyperlinks or as metatags are raised, as are the implications for registered trademark owners in cyberspace.

One of the first companies to practice the highly touted business-to-consumer Internet business model, Dell entered the PC market with force and shook up the industry with its revolutionary, customer-oriented, streamlined distribution style. Selling PCs online was a natural progression to Dell's existing strategy; Dell realized this synergy early and was the first market entrant. This case tracks Dells' evolving business and industry and highlights its entry strategy for China.

Torrington Wuxi Bearings (TWB) was a Sino-American joint venture that manufactured ball and roller bearings in China. When Jesse Chen, the new general manager, arrived, the company had recorded three straight years of losses. Together with his new management team, Jesse undertook a series of measures aimed at transforming TWB from a state-owned enterprise (SOE) to a market-driven sales organization. This case allows for a discussion of issues related to a radical organizational change in a former SOE in China and the strategic considerations in entering the Chinese market.

Jimmy Lai launched adM@rt, a home-delivery shopping service, in June 1999. The concept, a virtual shopping store on a Web site that allowed customers to browse through competitively priced merchandise, select foods, and complete transactions on-line, was a first in Asia. Lai's vision was to build a virtual shopping mall, rent out virtual store space to niche marketers, and deliver their goods and its own within a few hours of receiving an order.

Price Waterhouse and Coopers & Lybrand merged in July 1998, creating one of the world's largest full-service professional organizations. This case provides a study of how two major organizations are putting together a global knowledge base that would facilitate communication and coordination within the PricewaterhouseCoopers (PwC) practice. Eventually, this knowledge base would be made available to PwC clients. Discusses the changes, issues, and challenges at PwC in building its Intranet, called KnowledgeCurve, a knowledge management system that incorporates all the assets (knowledge, people, skills) of the company to be utilized by the firm. In order for the organization to be successful, it is crucial for PwC to encourage the users to fully utilize the available resources and to contribute information to the KnowledgeCurve. At the time this case was written, PwC is in its initial stages of setting up its Global Knowledge Curve, which would ultimately serve the entire practice. The limitations in using the Global Knowledge Curve led to the creation of Knowledge Curve at each office level, which incorporates the knowledge base and information important to the local level.

Set in 2000, the case provides a comprehensive analysis of transportation logistics and FedEx's internal integrated logistics applications. FedEx demonstrates the shift from "physical" to "information and value-added services" in an e-commerce environment. An excellent scenario to discuss whether companies should focus on core competencies or seek vertical and forward integration to provide integrated services. Also addresses issues that companies face when they wish to transform themselves from a conventional to an e-business model.

Not content with nine million customers per day, Toshifumi Suzuki, the chairman and CEO of Seven-Eleven Japan Co. Ltd., was looking for ways to attract more customers and more sales. Fascinated by the optimistic outlook on the growth of business-to-consumer (B2C) e-commerce in Japan, he contacted several prominent Japanese companies to explore the possibility of working together to launch the biggest B2C e-commerce web site in Japan. Suzuki knew that successfully launching and operating a B2C e-commerce business in Japan, known for its citizens' hesitancy to buy on-line, could be a big coup for him. His challenge now was to convince his would-be partners that he had a potentially successful and lucrative business model. Set in December 1999, this case is primarily about the aspiration of Suzuki to establish a business-to-consumer e-commerce venture targeted at Japanese consumers. Depicts the obstacles that he faces and the methods planned to overcome these obstacles.

In mid-1999, negotiators for Walt Disney Co. and the Hong Kong government were having intensive discussions about the possibility of building a theme park known as Hong Kong Disneyland on Lantau. The case presents detailed information about the proposed theme park and the assumptions made by Walt Disney in conducting an economic assessment of the project. Also lays out other alternatives for Disney's entry into the China market.

By March 2000's first quarter evaluation, it was evident that EUROCAP Equities Japan had performed beyond expectations. Its primary year-2000 objective was to become the top-choice broker for its client for Japanese equities. However, when bonuses were handed out in March for 1999's performance, two key research analysts threatened to resign and the team was overall dispirited, as bonuses were lower than expected and lower than industry payouts. Key issues facing EUROCAP Equities Japan management included: How would key employees' expectations be managed in 2000? How was EUROCAP Equities Japan going to retain its employees in a bull-run with competitive pressures on the small local resource pool? How would employees be motivated through compensation packages, and what other methods would be used to make employees excel in their performance and thrust EUROCAP Equities Japan's performance into the limelight?

Since the Hospital Authority officially took over the management of the public hospitals in December 1991, it initiated numerous schemes aimed at improving the quality and efficiency of its staff and health care services. This included implementing a new management structure in most of the hospitals under its jurisdiction, including Patient Care Hospital. A few of the steps taken to improve the delivery of medical services were successfully and smoothly implemented, but a few met with resistance and complaints from the medical staff. This case takes a look at the management of medical professionals, and also at the role of medical professionals as managers. It introduces students to the culture of medical professionals, and aims to help students understand the reaction of medical professionals toward changes that affect their work routines.

On February 18, 2000, month-old Internet startup, Tom.com, began its initial public offering and would open for trading on March 1 on Hong Kong's Growth Enterprise Market. The Internet company, majority-owned by Mr. Li Ka-shing's Cheung Kong Holdings and Hutchison Whampoa, planned to catch the frenzy that Hong Kong's investors had for new Internet stocks. The huge demand for Tom.com shares raised Internet frenzy in Hong Kong to new levels reminiscent of the red chip fever of 1997. Many of the retail investors had no idea what the company did but were betting on the IPO being a winner largely because of Mr. Li's clout with China. In this case, the student is asked to serve as an investment advisor to a retail investor considering subscribing to Tom.com's IPO. The student will provide an analysis of the risks and opportunities of investing in Tom.com and make a recommendation on whether the client should buy Tom.com's shares at the offer price.