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  • Cookie Man: Exploring New Frontiers

    Cookie Man, an Australian bakery chain, ventured into India in 2000 with the unique promise of providing “freshly baked premium cookies” on the spot. Opening with a manufacturing unit and its first outlet in Chennai, Tamil Nadu, it bought raw materials and most of its packaging locally and used a local refrigerated trucking firm to distribute its goods. By 2015, it was operating 70 company-owned and franchised stores in newly designed malls and high fashion streets in 25 cities across the country. Increasing competition, a move by competitors towards Internet distribution, and the changing tastes of consumers have hurt the financial health of the brand, and some drastic and quick strategic choices need to be made. Should the company grow horizontally and open more stores in India and/or expand into neighbouring countries? Should it look at new channels of delivery or new offerings? What is the right path for survival and growth?
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  • Hosted SP: Outsourced SharePoint

    The founder of a cloud computing business needs to determine the costs of providing the company's services to its clients. Students must perform an activity-based costing exercise to determine the cost of the company's two core product offerings and recommend which product should become the company's focus. Students must also consider the treatment of upfront capital costs when determining profitability. To make a decision, students must understand the company, the industry in which it operates and the costing issues involved.
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  • Spartan Building Products

    The logistics analyst at Spartan Building Products, a large, national distributor of building materials, needs to prepare a report analyzing the company’s logistics practices. Management is particularly concerned about the high cost of servicing customer deliveries. Students are asked to evaluate factors contributing to the logistics problems at Spartan, including freight costs and the sales mix. Students will analyze the cost implications of supporting a broad product line and servicing customer orders that have a small dollar value.
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  • The Ombudsman: Examining Portfolio Risk in Troubled Times (A)

    The chief compliance officer at NYR Financial Services (NYR) faces a decision-making dilemma regarding whether or not to increase a settlement offer to a client. This particular client has lodged a complaint against the investment firm, alleging that his money was inappropriately invested, given the risk tolerance level of his portfolio. The client believes that as a result of this mismanagement, he has lost over $100,000. The complaint has been reviewed by several panels of finance experts, including the Ombudsman for Banking Services and Investments (OBSI), with the latter concluding that NYR owes the client a settlement of $40,000. NYR’s compliance officer must now decide between two options: meet the client somewhere in the middle, or inform the OBSI that NYR will not be following the panel’s recommendation. If NYR chooses the latter option, OBSI will go public with NYR’s refusal to abide by the ombudsman’s advice. See supplemental case 9B14N026.
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  • The Cable and Satellite Broadcasting Association of Asia: Protecting Intellectual Property

    The vice-president of policy for the Cable and Satellite Broadcasting Association of Asia (CASBAA) was asked to deal with the growing problem of signal piracy in the Philippines. CASBAA was an organization of 125 companies involving all elements of the pay television industry in Asia, including major multinational content and broadcasting companies, as well as leading Philippine cable distributors. These were multinational content producers and broadcasters concerned about the growing issue of cable television signal piracy in the Philippines — a key bellwether market for many CASBAA members. Among CASBAA’s key objectives was the protection of the intellectual property of its members. CASBAA had already pursued legal options to curtail piracy in the Philippines with limited success and the vice-president was tasked with developing a strategy that did not involve expensive litigation. To do so, he needed to present a plan, with milestones, to his constituents to demonstrate that CASBAA was capable of dealing with its members’ concerns.
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  • YU Ranch: Growing a Sustainable Business

    The founder and owner of YU Ranch is selling all of the Texas Longhorn beef the ranch can produce. YU Ranch's grass-fed, sustainable beef is substantially leaner and healthier than conventionally produced beef. This highly differentiated product is sold at a premium to selected restaurants, food service companies and at the farm-gate. The local consumer segment has been tapped, while local businesses and distant customers need to be supplied. With the farm operating over its current capacity, expansion is inevitable but extremely expensive. What are the best ways to acquire new land, grow new business and leverage YU Ranch's core competencies — brand and reputation?
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  • Hatsune Miku: Japanese Virtual Idol Ignites Global Value Co-creation

    Crypton Future Media, a music software company based in Sapporo, Japan, developed Hatsune Miku (HM), a singing voice synthesizer software program (Vocaloid). Users entered lyrics and melodies to create songs, which were then sung by Hatsune Miku, a 16-year-old female virtual singer featured on the software packaging.<br><br>Initially targeting professionals, HM unexpectedly caught on among amateurs who produced music, lyrics, artwork and videos, which they shared via websites such as YouTube, Nico Nico Douga and Crypton’s Piapro. Users often worked collaboratively, and by March 2014, Miku had over 110,000 released songs, 170,000 uploaded videos, 1,000,000 created artworks and nearly two million Facebook “likes.” Miku’s popularity led to international media coverage and numerous new business opportunities for Crypton. She held sold out “live” concerts worldwide, starred in her own video game series produced by SEGA Games and was “hired” to advertise for companies including Toyota, Google and Domino’s Pizza.<br><br>Six years after the initial launch, Crypton and its chief executive officer were faced with a series of challenges related to the future development of their virtual idol and the businesses that grew around her.
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  • AyurVAID: Grandma's Remedies or Blue Ocean Strategy

    AyurVAID is a chain of Ayurveda (traditional Hindu medicine) hospitals founded by Rajiv Vasudevan, who moved to entrepreneurship after 16 years in the corporate sector and identified Ayurveda’s potential for root-cause diagnosis. AyurVAID provides Ayurveda-based healthcare to treat non-communicable diseases and chronic diseases, which together comprise two-thirds of the Indian healthcare market. Ayurveda’s system of root-cause diagnosis and subsequent disease management results in no side effects, but most Ayurveda companies are content to operate in the wellness sector and to provide Ayurvedic formulations in the over-the-counter consumer market. AyurVAID hospitals are positioned differently, catering to people with lifestyle diseases and offering long-term solutions to many chronic diseases. Over a period of 10 years, AyurvVAID’s approach has led to rapid growth for the hospitals; however, the founder and chief executive officer wants to identify the most appropriate strategy for AyurVAID. Should it focus on strengthening its position as a multi-specialty hospital, or should it explore specializing in India’s large and growing market for the treatment of diabetes?
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  • United Daily News Group (A)

    The United Daily News Group, a leader in Taiwan’s media, faces the imminent death of the country’s newspaper industry. The founder’s grandson took over as the company’s chair just four years earlier, during a time when an increasing number of readers were turning to the Internet for their news. Looking ahead, he needs to sustain the company’s future development while recognizing that the business of running traditional newspapers may no longer be profitable. He needs to assess the company’s strengths, integrate the group’s resources, improve news content, introduce digital media and, in doing so, create a new business model. He wonders how to best initiate the integration of resources and which media innovations he should introduce. See supplement cases 9B15M076 and 9B15M077.
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  • Ntl Lemnis: Exploring the B2C Market

    NTL Lemnis, a joint venture between NTL Electronics of India and Lemnis Lighting of the Netherlands, has ambitious sales targets and is considering entry into the business-to-consumer (B2C) segment. The company aims to offer energy-efficient LED products to Indian and international markets under the globally acclaimed Lemnis brand Pharox. Top management is planning a sales force structure for the consumer market and is analyzing the design of a sales force in the context of generalist and specialist structures. It is pondering the recruitment and selection strategies at NTL Lemnis so that it can hire a best-in-class sales force. What is the proper size of the sales team? Apprehensions about the effective distribution model to use to increase the reach of the company’s products also persist.
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  • Rebranding DSM: Creating Sustainable Shared Value

    DSM, a global life sciences, business-to-business company, is in the midst of a massive multi-year corporate rebranding exercise to incorporate the concept of creating sustainable shared value. With few precedents in this industry, the company must develop its own processes and implementation. Students are challenged to define the next steps in the rebranding, including the promotion of DSM’s sustainability positioning as its key differentiator.
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  • Flatpebble.com: Online Services Marketplace

    Flatpebble is an innovative start-up e-business that acts as an online marketplace where customers can connect with professional wedding photographers. Flatpebble has reached a stage wherein it already has a good revenue stream and a recognized brand name across India. It is poised for rapid expansion, and the management team must evaluate the various strategic alternatives available. The Flatpebble team must design a comprehensive, consistent and coherent business strategy that will allow the company to scale up quickly, beat its competitors and stay relevant in the dynamic and rapidly evolving e-business industry.
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  • Strides Arcolab Limited's Dividend Payout Decision

    Arun Kumar, founder and group chief executive officer of Strides Arcolab Limited — a first generation, Indian pharmaceutical company headquartered in Bengaluru — is preparing for a crucial meeting of the Board of Directors. The meeting was called to discuss the proposed dividend payout to the company’s shareholders following the completion of a US$1.725 billion sale of its specialty division — Agila Specialties — to the U.S.-based pharmaceutical company Mylan Inc. Kumar proposed that Strides distribute all the free cash available from the sale — after the retirement of debt and internal payouts — in the form of dividends to its shareholders. Strides had already communicated its decision to retire debts and reduce its leverage.
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  • Mi Tiendecita de Moda: Selling Fashion Through Facebook in Peru

    A young Peruvian MBA graduate, who previously had worked in international marketing firms, founded an online fashion store and has been selling North American fashion products through Facebook, personal sales events and pop-up stores. The business has been growing profitably with an increasing customer base, overcoming initial supply side issues. Three years after the launch, however, the personal approach to satisfy each customer, a stronghold of the founder’s business philosophy, is making expansion difficult. The business has grown to a point where it is barely manageable personally. Is expansion the right decision and if so, which type? Can the fashion store founder scale the business and still enjoy the lifestyle benefits of independence and flexible working hours?
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  • Succession in Chinese Family Businesses (A): Fotile and the Mao Family

    The three cases in this series focus on two Chinese families’ experiences with entrepreneurship and succession. Because most family businesses in China are relatively young, these first-generation entrepreneurs use their own approach to identify and develop their successors, and to pass their “wealth” to their offspring in a context shaped by unique Chinese cultural elements. The role-play exercise that relates to the (C) case illustrates the current Chinese cultural characteristics that influence leadership succession and highlights the case issues to be explored in the case discussion. See also 9B15C021 and 9B15C022.
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  • Succession in Chinese Family Businesses (B): Huamano and the Xu Family

    This is the second case in a three-case series. See also 9B15C020 and 9B15C022.
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  • Succession in Chinese Family Businesses (C): An Urgent Family Meeting

    This is the third case in a three-case series. The role-play exercise that relates to the (C) case illustrates the current Chinese cultural characteristics that influence leadership succession and highlights the case issues to be explored in the case discussion. See also 9B15C020 and 9B15C021.
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  • ID Fresh: The Way Forward

    As a result of teamwork and small steps taken by the four cousins and founders, who also fill the top management positions, ID Fresh has grown, in less than 10 years, from a kirana store (a small Indian neighbourhood grocery/retail shop) to a successful mid-sized ready-to-eat and ready-to-cook food company. The managing director recognizes the need to transition to a more proficient organization by recruiting highly motivated professionals to fill the management positions. In doing so, the company will need to reconcile the working style of the incoming professionals with the founders’ humble background and strong ethics and values that are based in their religious faith.
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  • Channel Change at the BIG PASTURE in Inner Mongolia

    BIG PASTURE Animal Husbandry Company (Group) Co., Ltd. (BIG PASTURE) had achieved great success after nearly 10 years of development. It had started as a ready-to-eat food processing factory that supplied individually owned stores and franchises with self-produced food. Since then, its product line was extended to include fresh and processed beef and mutton. At the same time, BIG PASTURE undertook a major shift from company-operated stores to community convenience stores, further fostering its community economy. However, since the rapid development of e-commerce had contributed toward the success of many local sellers in China, BIG PASTURE saw the possibility of a breakthrough. Thus, the major challenges facing the company included creating a national market through e-commerce and developing community economies.
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  • Dürr AG From Premium to Mid Market in China

    In the autumn of 2013, the president and chief executive officer of Schenck Shanghai Machinery Corp. Ltd., a subsidiary of the Dürr Group situated in Shanghai, China, was reviewing his business operations. The Dürr Group was a multinational machine tool manufacturer based in Germany. In emerging economies, the mid-market had become the battleground between foreign and local firms. Traditionally, foreign investors earned healthy margins in the premium segment, but many realized that they were missing out on fast-growing market segments and were facing potential threats from local competitors who were moving up-market. To remain competitive and to ensure future growth and profitability, while not compromising the brand's reputation, the Chinese subsidiary had to ensure continued support from headquarters in Germany.
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