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WebTeb (A): A Very Palestinian Dilemma
Recent MBA graduate Majed finds his dream job: high-tech, entrepreneurial, senior, social - contributing to the economy of Palestine, a cause close to his heart. But the new CEO of WebTeb, an online medical information service in Arabic, finds it more challenging than expected. Recruiting IT talent in Palestine is particularly tough. Eventually, his team finds an android developer to help them launch, but then comes a fateful phone call. Majed has infringed an unwritten policy of Palestinian tech companies - never to poach each other's employees. The rationale behind this is to keep wages low and thus boost an industry with potential to transform the local economy. The injured party, an IT outsourcing company, asks Majed to rescind the offer. If he refuses, they threaten to put WebTeb out of business by offering better salaries to his entire web-development team. Case B shows how Majed resolves the dilemma. -
Google and Project Maven (A): Big Tech, Government and the AI Arms Race
In April 2018, after it became known that Google was collaborating with the US Department of Defense on Project Maven, over 3,000 employees signed an internal memo asking CEO Sundar Pichai to (a) cancel the project immediately, and (b) enforce a policy stating that the company would never build warfare technology. Project Maven had been launched in early 2017 as part of the DoD's efforts to integrate AI and machine learning into its defense strategies. Drones, robots and AI were increasingly deployed in intelligence gathering and combat operations in what was considered a 21st century "arms race." While Google described its role as "non-offensive," the memo argued that involvement in Project Maven might hurt its reputation and ability to attract talent at a time when public trust in technology was waning. The case puts students in the shoes of a recent hire faced with the choice of signing the memo. It also invites them to consider how they would respond, as CEO, to such a petition against one of the company's contracts. -
Volkswagen's Emissions Scandal: How Could It Happen?
The case is a detailed 'inside' account of the 'dieselgate' scandal at Volkswagen which revealed how engineers had programmed software that enabled its card to cheat emissions tests. It explores the origins of internal and external forces that propelled the company to market environmentally sustainable "clean diesel" cars while using engine management software to conceal on-the-road emissions of over 40 times the permitted levels. The scandal - one of the biggest of the decade - illustrates contributing factors that are common to many instances of organizational misconduct: obedience to authority, organizational culture, goal-setting, and corporate governance. -
BT Group: Managing Global Open Innovation
Jean-Marc Frangos, Managing Director of Products & Services Research and Open Innovation at BT Group is looking to optimize the London-based telcom company's external innovation process - scouting for new technologies from Silicon Valley, Israel and Asia. Having taken on responsibility for some of BT's internal research labs in 2017, he needs to boost synergies between internal research and external innovation, and to evaluate how these will play out in the future for telecom companies and the implications for BT. Please visit the dedicated case website (https://cases.insead.edu/bt-group/) to access supplementary material. -
PopChef: Creating a Tasty Foodtech Business
PopChef is a start-up foodtech business in the lunchtime food delivery market in Paris. The case centres on the period from launch in 2015 to 2017. PopChef is the first to enter the market with a new business model in France. As other well-funded domestic and international entrants arrive, the market becomes highly competitive market. PopChef aims to counter this by shifting from a technology-based company to a virtual food company. Will this be enough to ensure its survival? -
Offshoring: Where Should KindyBis Make Its Socks?
This case presents a fictitious firm, KindyBis, which must decide whether or not to engage in offshoring, and if so, how. Students structure and model an offshoring decision and choose an international site and suppliers. The case was designed to use a combined SWOT (Strengths-Weaknesses/Opportunities-Threats) - AHP (Analytic Hierarchy Process) technique, but other methods can be used. The instructor is provided with an Excel file containing details of the calculations. In addition, we have produced a generic analysis grid that can model different circumstances depending on the conclusions arrived at during class discussions. -
Uniqlo: Expansion into Canada
In September 2016, Fast Retailing Co. Ltd. entered the Canadian retail industry by opening its first Canadian Uniqlo store in Toronto. The retail industry in Canada had notably rejected foreign brands such as Target and Aéropostale, while other Canadian retailers, such as Reitmans Ltd. and Le Château were struggling to keep up with the competitive landscape. Uniqlo, a Japanese fashion retailer, had struggled in the U.S. market due to a lack of brand awareness and an aggressive expansion strategy. Hoping to become a dominant fashion brand in Canada, Uniqlo conducted extensive research prior to entering the Canadian market. How could Uniqlo increase its brand awareness and thrive in the Canadian fashion market? -
Summit Maritime: Facility Location and Layout Design
In September 2017, the managing director of Summit Maritime Pvt. Limited, a marine consulting firm and luxury boat manufacturer in Kochi, India, faced a dilemma. He needed to relocate a production facility and set up a service factory, where boats would be both manufactured and displayed. The managing director needed to decide on the optimal location for the new facility by considering multiple factors. He also needed to design a preliminary layout for the new facility. How should he decide on the optimal facility location and layout to restructure his growing business operations and ensure the company's future? -
District of Columbia Public Schools: Politics, Jobs, Race, Children & Reform
After nearly four years of controversial reform that included layoffs, school closures and battles with the Washington Teachers' Union over tenure and seniority, Michelle Rhee resigned as Chancellor of DC Public Schools on October, 13, 2010 when Mayor Adrian Fenty lost the democratic primaries to challenger and critic of Rhee's style, city councilman Vincent Gray. Education reform had been the central focus of Mayor Fenty's ambitious administration when he hired Michelle Rhee. But now the nation's most provocative urban school reform effort was thwarted and the fate of DC schools, under newly appointed Kaya Henderson, was once again up in the air. Case number 2117.0 -
Repositioning Chongqing as the Gateway to Central Asia and Europe
This case focuses on the economic landscape of the Chinese city of Chongqing from 2007, the year when its municipal economy began a decade-long ascent even as China's economic growth had slowed down, especially since the 2008 global financial crisis. The case examines the policies that Chongqing's government took to promote economic growth, as well as the socio-political and economic context surrounding them. It also highlights the challenges and opportunities that Chongqing faced at the end of 2017, and will have to deal with in its near future against the background of the Belt and Road Initiative (BRI). This case is suitable for a China-specific course as a "context case" on local and regional development. It may also be suitable for teaching the BRI initiative. This case could illustrate how Chinese provinces are adjusting their policies to the BRI, as well as the implications for businesses from the adjustment. -
TraumaLink: Providing Trauma First Aid Services in Bangladesh Using Trained Volunteers
This case describes the challenges facing Jon Moussally, the CEO of TraumaLink, a four-year-old social venture that provided trauma first aid to victims of traffic injuries in Bangladesh, a country that had some of the most dangerous highways in the world but no formal emergency response system. Jon, a practicing emergency room physician and public health student, had been shocked by the chaotic traffic that he observed during a trip to Dhaka, Bangladesh, for a course on global health issues. Over the next 18 months, Jon and three partners-two fellow students and the Bangladeshi head of a local social venture organization-decided on a three-pronged approach: they would train community-based volunteers who lived or worked close to the highway to provide free basic trauma first aid; they would develop an easy-to-use 911-type software system to deploy volunteers quickly to a crash scene; and they planned to raise operating funds by selling advertising or subscriptions to companies in Bangladesh whose workers travelled the dangerous highways daily. By the fall of 2017, TraumaLink had been successfully launched along two sections of particularly dangerous highways. Their trained volunteers had been able to quickly and effectively provide first aid to victims of traffic injuries. The software had worked well to notify and deploy volunteers and collect data. However, Jon and his partners had not yet found sustainable, long-term sources of revenue, despite almost four years of trying. After an initial pilot phase in November 2014, the organization had been awarded $142,500 by the US Agency for International Development, but these funds would run out by the end of 2018, with little chance of another round. TraumaLink had proven that they could deliver emergency services and save lives, but could Jon and his partners figure out how to become financially sustainable so that they could continue to support and expand their services within Bangladesh and possibly beyond? -
Environmental Platform LEEDership at USGBC
By 2018, it was clear that U.S. Green Building Council (USGBC) had significantly contributed to the growth of green building, and over its 25-year history had become a powerful brand in the construction sector with its Leadership in Energy and Environmental Design (LEED) standard. Nonetheless, USGBC faced two significant challenges moving forward: maintaining LEED's leadership position as the green building standard in the U.S., and increasing the proportion of building stock that met the LEED standard. The case provides background on the USGBC and the evolution of its LEED standard, including how the standards are set, and green building benefits and costs. -
Teva's Turnaround
Teva Pharmaceuticals, the largest company domiciled in Israel, is a multinational pharmaceutical company that develops, manufactures, and distributes both patented and generic versions of ethical pharmaceuticals. In 2017, the company was in dire need of a turnaround plan based on a variety of factors: $17 billion in debt maturing in 2021; declining cash flows from its largest selling drug, Copaxone; intensified competitive challenges in its core generics business; and an inefficient organizational structure. In this case students are presented with detailed data on Teva's financial circumstances as well as an overview of the challenges facing the global pharmaceutical industry in order to determine whether the company can avoid the need for Chapter 15 protection. -
Eggscellence: SKM Products Export (India) Limited
SKM Egg Products Export (India) Limited (SKM) manufactured processed egg products, including egg powder and liquid egg, which it exported to advanced international markets. The company had gone through phases of turnaround, countering challenges and a severe debt overload. In 2016, it had overseas subsidiaries in Japan, the Netherlands, and Russia. The chief executive officer had promoted SKM's use of technology, quality processes, and accreditations to move up the value chain. India was the third-largest egg producer in the world, and he saw India's specific advantages of scale and a mature eco-system in egg production, collection, feed, and poultry as logical elements for selecting an export-led growth strategy. He was planning another turnaround to counter a 20 per cent revenue hit that his top line had suffered in 2016-17 because of the impact of the 2015 avian flu epidemic in the United States and the resulting drop in global egg-product consumption and prices. His mission was to make SKM a ₹7.5 billion company by 2022. What actions should the company take regarding genetically modified crops? How should it approach opportunities to import feed material ingredients, eggs, and egg products from other source countries? Should it consolidate its overseas operations and leverage the domestic market? If so, how? -
Can One Size Fit All? The Case of ACEM and Community Credit
This case study focuses on the Montreal Community Loan Fund (ACEM), which fights poverty and exclusion through the administration of community credit. More specifically, ACEM provides training and offers loans to marginalized and vulnerable people for pre-start-up, start-up, and consolidation of businesses. The case describes ACEM's recent history and how the organization long chose to increase the scale of community credit services through collaborations and partnerships, avoiding for decades the need to grow its own organization. In 2012, ACEM broke with tradition and launched its own scaling process to double its size. The case thus describes an organization trying to stay focused on its social mission and core values while ensuring its own financial stability and protecting the interests of the network of independent community credit organizations that it co-founded. It thus provides an opportunity to discuss the variants of scaling and the challenges faced by a growing not-for-profit organization. The case ends by describing a dilemma regarding ACEM's financial instability. Students will be asked to make a decision regarding the current scaling process and propose a sustainable model that will make ACEM less dependent on government grants while respecting its core values. -
Campana Dos' challenge: betting on Argentina's Vaca Muerta oil and gas fields for survival
Nobel Prize in Economics S. Kuznets (71) said there were four kinds of countries: "developed, developing, Japan, and Argentina. Argentina can do things wrong, but its lack of humility and its ability to fascinate and generate expectations is undeniable". Aswath Damodaran defined Argentina as "that crazy and drunk uncle living in the attic of your house". When he is sober, he is wonderful, but when he is drunk, he does crazy things". At the beginning of 2015, the directors of a passenger transport company in Argentina (Campana Dos), developed a brilliant business through a corporate strategy that would only work in a chaotic market like Argentina, however they are facing a new challenge due to the political context in an election either a continuation of protectionist populism or a move towards an open economy. The directors evaluate a 2x2 decision matrix that has four possible scenarios (Invest- Do not invest // Demand Grows - Does not grow). Each one has a marginal value that is calculated by x6 EBITDAs. The company has a serious risk of bankrupting if any of the first three scenarios come true due to non-controllable factors. Students will face a complex decision that principals must make for which there is no concrete solution. At the beginning of 2015, the company directors faced a possible exponential growth of the population of 600,000 to 2.5 million inhabitants due to the discovery of the second largest global gas depot (Vaca Muerta). They had to decide whether to invest ARS $ 47 million (USD $ 5.5 million) (1.9 times the total of their assets and 29.3 times their net profit) to avoid demand, but this can lead the company to the Bankruptcy after twenty successful years. Students must ask themselves if Vaca Muerta was just a bluff to justify the governor's family investments -which evolved from 4.9% of participation in public works in 2003 to 55% of the public works in 2010- or was there really going to be an exponential growth in investments and population. -
From Pitchfork To Fork: Vertical Integration at Otrada Group (Russia)
As a French engineer, nothing predestined Patrick Hoffmann to ever launch and lead a small pig empire in Russia. What had started out as an ambitious high-technology pig multiplication facility in the region of Lipetsk had evolved over the period 2005-2018 into one of the country's premier multipliers, at the leading edge of genetics and pig raising techniques. The company expanded to cover multiple stages in the pig industry, from manufacturing concrete floor slats for the pig farms to farming 12,000 ha of land, producing high quality animal feeds, slaughtering animals, and further processing meat all the way to running eight French-style butcheries. The company now truly operated "from pitchfork to fork". But the journey was never over. The vertical integration had happened more by default than by strategic choice, and it was fair now to question the whole montage. Patrick had just been presented with the chance to integrate backward into genetic selection as their Danish supplier restructured. Retail and meat processing had been unqualified disappointments; should they continue to be involved? On the positive side, Patrick had just fielded a call from the governor of the region, informing him of another 12,000 ha of farm land for leasing. Unfavorable price evolutions in the industry also suggested some less efficient competitors would soon face financial distress, creating interesting acquisition opportunities. Learning objective: Doing business in Russia, agro-industries, vertical integration strategies, building teams, managing the value chain, technology as barrier to entry, innovation, genetics, growth management, entrepreneurship, entrepreneurial leadership, managing stakeholders, capital budgeting, business models, project management, growth financing. -
Innovium 2018
Innovium has been focusing on disrupting an entrenched space. After getting product market fit the company wrestles with how to scale up, how to build a strong culture and how to raise more funds. -
Flipkart vs. Amazon vs. Snapdeal: Winner-Take-All Battle in India
This Case presents the Internet retail battle in India among the e-commerce giants Flipkart, Amazon, and Snapdeal. The domestic player Flipkart had been a dominant player and was followed by Snapdeal until the global player Amazon entered in 2013. The competitive dynamics were focused on the marketplace model, basic logistic and delivery, and customer satisfaction. With the new regulations and technology disruption in the recent years, the competitive landscape shifted to private labels, artificial intelligence (AI) and data analytics, and omni-channeling. As the competition got more and more intense, Flipkart - the first home-grown e-tailor- was determined to be the market leader. -
WeWork: Tech Comes to Commercial Real Estate
In February 2018 New York-based coworking company WeWork was valued at approximately $20 billion, making it the fourth-most-valuable start-up in the U.S., behind only Uber, Airbnb, and SpaceX. WeWork had experienced explosive growth since its 2010 founding, however it was revealed, during a private bond offering in mid-2018, that the company had posted a net loss for 2017 of $884 million. WeWork's founders insisted that the company's reliance on innovative technology-along with its mission to "create a world where people make a life, not just a living"- would secure its future success. This case outlines WeWork's business model and growth strategy and asks students to consider whether its market position is unique and defensible-and whether or not its valuation is overstated.