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X: The Foghorn Decision
In February 2016, Kathy Hannun--a project leader at X, Alphabet Inc.'s so-called "moonshot factory--had to prepare a recommendation for the senior leadership of X regarding the future of Foghorn, a project she was leading to develop a carbon-neutral process for converting sea water into fuel. Recognizing the blueprint for projects at X--(1) addressing a huge problem with a (2) radical solution using (3) breakthrough technology--Hannun had to decide whether to recommend killing the project. Despite the technical feasibility of the Foghorn process, its expected cost per gallon of fuel produced was signficiantly higher than the established "kill metric"--the maximum unit cost that Hannun and colleagues had set for continuing the project. The case provides an opportunity to examine the management of radical innovation and the challenges associated with assessing early stage ideas. Topics covered include the importance of experimentation and failure as well as the management of opportunity costs in solving large problems. -
GiveDirectly
How should nonprofits design compensation systems to attract and retain talent? GiveDirectly is a respected charitable organization with an unconventional approach. Instead of spending on traditional aid programs in areas such as health care and food access in developing countries, GiveDirectly transfers cash directly to the poor. As experiments have shown this approach to be an effective and efficient way to improve recipients' life satisfaction, the organization has attracted considerable attention among donors and the media. Now, GiveDirectly is looking to grow, and it is contemplating how best to recruit talented employees and keep them motivated. In addition to offering salaries competitive with the private sector, GiveDirectly is considering linking employee compensation to organizational goals regarding the amount of cash transferred-an unusual strategy for a nonprofit. -
China Vanke: Battle for Control (A)
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Legal Aspects of Religion in the Workplace
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SoFi: A Journey towards Reintermediation
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Gene Lee Navigates the Darden Takeover
Following a full takeover of Darden Restaurant's Board of Directors, Darden COO Gene Lee is weighing an offer to become interim CEO. -
Yash Building Centre: Planning for Expansion
Yash Building Centre, based in Raipur, central India, was in the business of manufacturing fly ash bricks and blocks. At the beginning of 2016, after achieving decent growth and gaining goodwill among local builders and contractors, the managing partner was actively looking to expand business operations into tiles, pavers, and curbstones. He believed this expansion would improve the firm's profitability by allowing it to take full advantage of its reputation among existing customers. It would also enable the firm to increase its size. A key question was, would this decision facilitate value creation for the firm? To make the investment decision, the managing partner needed to consider the return on investment and the capacity at which the new unit would break even. -
Custom Closet Contractors: Making the Database Cut
In the summer of 2017, after completing his third year of business school, a student was eager to apply his newly developed business and technology skill sets at his father's company during his four-month summer position. His father's business, Custom Closet Contractors, designed and manufactured custom home organization solutions for home builders and individual clients. In the past year, the successful company's sales growth had slowed, while expenses as a percentage of sales had increased. The company had experienced operational problems leading to higher expenses, and the student had found that part of the problem was the lack of data organization, which led to miscommunication between the front office and the production staff. To solve the problem, he proposed to design a centralized database and set to work trying to understand the business processes in order to design a data model. -
Wiikano Orchards
Wiikano Orchards, a family-owned business, faces declining demand in a commodity industry. The president is considering rebranding Wiikano's apple juice, increasing its prices and promotions. If this proposal succeeds, wholesalers and retailers would be more likely to distribute and pay more for Wiikano's juice. The Wiikano case focuses on challenges related to product differentiation and can be used to discuss branding, pricing, and marketing communications. It also addresses issues that small- and medium-sized business owners face, by employing a product and distribution system that are easy to understand. The case is recommended for upper-level undergraduate students or first-year MBA students. It may also be used as an exam case. -
Knowledge Sharing at REMA 1000 (A)
A year after Norwegian grocery chain REMA 1000 adopted Workplace, Facebook's corporate social media network, CHRO Tore Hoylie is asked to evaluate its impact on company culture and communication. Almost 90% of the workforce is engaged with the platform, which they use to communicate with colleagues across the decentralized chain of independent outlets. However, there are some concerns that the site is overloaded with information and difficult to navigate. Hoylie must decide whether to try to improve the platform or look for an alternative. If REMA keeps Workplace, how can REMA improve the way employees interact with it? -
Sachem Head's Activism at Autodesk
In 2015, activist hedge fund Sachem Head Capital, led by founder Scott Ferguson, launched an activist campaign at (computer aided design) CAD software maker Autodesk. The activist campaign, waged mainly in private, was over Autodesk's lacklustre financial performance, with Ferguson thinking that Autodesk's performance could improve with better cost management. Facing a proxy contest, Autodesk added Ferguson and two others to its board in exchange for a standstill agreement. Following two years of significantly improved performance, Ferguson eventually stepped down when longtime Autodesk CEO Carl Bass announced his retirement in February 2017. The case illustrates how even companies with stellar products can underperform and how benchmarking and financial analysis can help identify drivers of firm performance. The case describes how boards and investors can engage to improve governance and ultimately achieve sustainable performance objectives. -
Blackstone-Invitation Homes IPO
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Lufax: FinTech and the Transformation of Wealth Management in China
This case examines the rise and competitive positioning of Lufax, an online marketplace headquartered in Shanghai, China, and a pioneer in the origination and trading of financial assets. The company had grown at a remarkable rate, and was awarded "Trading Platform of the Year" for 2017 by the Asian Banker Financial Markets Awards Programme. Case protagonist Gregory Gibb, Chairman & CEO of Lufax, must decide how to navigate the challenging regulatory and competitive landscape, in order to achieve Lufax's goal of transforming and expanding the wealth management industry in China. Whether the technology giants (e.g. Baidu, Alibaba, and Tencent, often collectively known as "BAT") would be able to develop strong capabilities in the "Fin" part of "FinTech," and whether traditional financial institutions would become technologically sophisticated enough for their "Tech" capabilities to materialize, were among some of the key uncertainties and potential challenges that Lufax had to confront. There were also looming risks and lingering uncertainties on the political and regulatory front. The focal point of the case centers around how Gibb can strategize and position Lufax going forward, and leverage its unique "finance DNA" to try to win market share in the rapidly changing FinTech and wealth management sectors in mainland China. -
McKinsey & Company: Early Career Choices (A)
This case profiles the early career choices faced by three McKinsey associates. The A case profiles the dilemma faced by each individual and sets up the class discussion. The B case outlines the choices made by the associates in real life and the consequences of such choices. -
Coca-Cola India: More than Just Sugar and Fizz
When the chief executive officer of The Coca-Cola Company made his maiden visit to India in August 2017, it was clear that he wanted the Indian branch of the company, Coca-Cola India Private Limited, to achieve many ambitious goals. These included reducing the sugar content in the company's products, introducing more juice-based drinks and water, and making small entries into the dairy segment. For a company that had long stressed its carbonated and fruit-based drink segments, Coca-Cola India Private Limited was now indicating its strong intent to steer away from its core competency. The aim was to recast the company as a "total beverage company," with possible ventures across all relevant beverage categories. Should the company take a chance and move away from its core competency? Should it tweak existing products, seek to extend its brands, or try to create entirely new offerings? How could Coca-Cola India Private Limited succeed in its shift towards "total beverage" solutions, and what challenges should it prepare for as part of this shift? -
SMRT: Getting Back on Track
On July 7, 2015, a power fault during the evening commute led to a system-wide disruption on SMRT, Singapore's heavily used mass rapid transit lines. Train service on both lines was shut down for more than two hours, affecting more than 413,000 commuters. The public was outraged at the scale of the breakdown and how ineffectively it was handled. Detailed investigations revealed the breakdown to be a result of maintenance lapses, and SMRT was criticized for its failure to provide clear and timely information and instructions to passengers. Following the breakdown, the company embarked on a service recovery process encompassing various new initiatives. This case illustrates the tensions SMRT faced during and after the breakdown, and its journey to recover the public's confidence in is transit services. -
Seijing Motor Corporation: Reposition or Extend the Pickup Brand
In early 2016, the country head for Seijing Motor Corporation (SMC) in India was worried about stagnant sales of the company's Supreme pickup brand. The Supreme brand had gained only a single-digit market share over the past year, and SMC's share of the growing large pickup market had steadily fallen, from 40 per cent in 2005 to 10 per cent in 2015. SMC's Supreme brand was competing with the market leader in the pickup segment. The pickup needed to be repositioned immediately so that it appealed to customers; otherwise, its market share would erode even further. Should the company fight existing consumer perceptions or leverage them? Should the Supreme brand be repositioned, or should SMC offer new brands in other segments? Should it extend the Supreme brand name into those other segments, or should it introduce new brand names? -
Ecotricity: An Optimal Investment Decision for Electric Highway Expansion
Ecotricity Group Ltd., founded in 1995, had grown to be a major renewable energy utility service provider in the United Kingdom. In 2016, the company wanted to expand its "electric highway"-a network of charging stations for electric vehicles along major U.K. motorways. The expansion plans involved two chargers: Type A chargers, installed in public locations along the motorway, and Type B chargers, installed in suitable home garages owned by Ecotricity customers. To meet the projected traffic flow of electric vehicles in the future, the company needed to optimally expand the number of both types of charging points in each highway zone.<br><br>This case uses integer programming to determine the optimal number of Type A and Type B chargers that Ecotricity should install to expand its electric highway. The solution is obtained by using Microsoft Excel Solver and interpreting the results. The case also provides a platform for discussing optimal investment strategies, and for considering another topic not emphasized extensively in the case-how an operational strategy affects image building. -
United Airlines' Service-Recovery Challenge After Reputation Meltdown
In 2017, United Airlines suffered a blow to its corporate reputation throughout the United States and international markets, including China, mainly due to an incident on United flight 3411, in which an airport enforcement officer forcibly dragged a passenger out of a plane. The inadequate public relations reaction following the incident and ineffective crisis management left the company reeling. The company became subject to scathing social media attacks, customer dissatisfaction, passenger anger, and a drop in its stock value. The airline, which had already been grappling with very low rankings in customer satisfaction indexes, realized the need to rebuild its brand and greatly improve its customer satisfaction ratings. To prevent such instances from occurring in the future, United needed to take steps to rebuild its tarnished brand image and consider some important questions: What service expectations did customers have of airlines such as United? How would these expectations develop over time? How important were customer satisfaction, client relationships, and passenger experience to United? How could an airline company conduct a root cause analysis for service failure? How could it analyze the different gaps in delivering good quality service? -
Tesla: Testing a Business Model at Its (R)evolutionary Best
Tesla Motors, Inc. (Tesla), the electric car company, unveiled its Model 3 in late July 2017 as its stock price continued to appreciate. The Model 3 was priced to sell to the mass market and to potentially compete with the mass-market leaders such as Toyota. The stock market had also responded favourably to Tesla's decision in 2016 to acquire SolarCity, a manufacturer of solar cells, and its decision to build the Gigafactory, the world's largest lithium battery plant. Could Tesla justify its sky-high stock price multiple by simply selling electric cars, or should Tesla become a battery company that could fundamentally change the energy storage industry-or for that matter, some other type of company?