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Connections Education: Shifting the Paradigm?
The online virtual learning (K-12) industry in 2017 remains an industry moving fast with many different players and stakeholders. While online virtual learning is beginning to make its way into school districts, it is far from being mainstream and a long way from full adoption. One company - Connections Education - is at the forefront of the movement. The case provides information on the company and the industry (historical and current as of 2017) and introduces the challenges the company faces in its quest to create a better way of learning for all students. -
Pintura Corporation: The Lena Launch Decision
A maker of paints and product coatings is considering introducing a new high-performance, environmentally-friendly hardwood coating called Lena. To proceed with the next phase of development, Pintura's VP of new product development must present a convincing analysis of the product's feasibility-along with a proposed marketing program. The VP must consider the relationship of the proposed product to the rest of the Industrial Finishes Group's product line, as well as how it would contribute to corporate and divisional objectives. The Pintura case can be used in a variety of classes, including an introductory marketing course, a capstone course, or a business-to-business (B2B) marketing course. The primary focus is on product-policy decisions. The most likely use for the case is in a module on product-line planning. It also can be used as a case on marketing planning. -
Edwin Land: The Art and Science of Innovation
Throughout the second half of the 20th century, Polaroid first invented-and then continuously reinvented-the field of instant photography. Under the leadership of its mercurial founder Edwin Land, the company regularly released new instant cameras and films, often without any market research. Land created a culture of innovation and exploration within Polaroid that became conducive to the development of new customer value propositions. However, this proved difficult to sustain over the long run, and the business ultimately went into bankruptcy in 2001. How did Polaroid rise to a position of such preeminence, and was its downfall inevitable? -
SKS Microfinance (Abridged)
Vikram Akula, CEO of SKS Microfinance, seeks a venture capital investment to fund his firm. SKS, one of the largest and fastest growing microfinance institutions in India, is a profitable, for-profit institution with a social mission. In what is one of the first commercial financing deals in the world, Akula must decide at what value to sell equity in SKS, and to whom to sell it. The case focuses on valuation, which is difficult because at the time there are no publicly traded comparable companies, and the strategic aspects of raising money. -
Molto Delizioso: Pricing and Profits Following Brexit Devaluation
When the June 2016 referendum on the United Kingdom's withdrawal from the European Union, or Brexit, resulted in a vote to leave, the managing director of the U.K. subsidiary of Italian coffee-machine maker Molto Delizioso, SRL, faced a scenario that affected many international firms and their subsidiaries. The U.K. subsidiary imported and paid for coffee machines in euros, but when it sold these items in the United Kingdom, the revenue earned was in pounds. The devaluation of the pound after the Brexit vote affected both the company's revenues and costs and, therefore, its profits. Molto Delizioso's managing director had to decide what to do about pricing after the devaluation of the pound caused an increase in the cost of importing his gourmet coffee machines. If he kept prices the same, profits would go down significantly. Should he raise the prices he charged to the customer? And if so, by how much? -
Planes, Trains and Social Media
Set in 2016, the case explores the role of social media in the public transportation sector. It highlights how social media has emerged to be a dominant platform offering both opportunities and challenges for organisations. SMRT, a mass service provider in Singapore, counted amongst the best in the world was struggling to manage consumer expectations in face of a series of train breakdowns and disruptions that had seriously tarnished the company's reputation. The company had a presence on social media; however it largely relied on traditional media in its communication strategy. At the times of crisis, the inability of the traditional media to provide an interactive platform and live updates had often resulted in disgruntled customers. Lack of real- time engagement with the commuters had widened the chasm between their expectations and perceived performance of the transport system negating the painstaking technical and operational improvements done by SMRT over time to provide a more reliable service. Could SMRT better leverage social media in effectively engaging with riders during crises and otherwise? The case showcases the examples of other public transportation firms - KLM and South West Trains that have been successful in this endeavour. Could their social media experiences be applied to SMRT? Through this case, students will gain an understanding of the multi-dimensional impact of social media on an organisation. They will be able to analyse and compare its impact when adopted comprehensively versus a piece-meal approach. Students will also learn about the essential elements of an effective social media strategy and be able to assess the gap between an organization's social media goals and its resource allocation for the same. The case will help students to learn about the evolution of social media and evaluate its effectiveness versus that of traditional media especially in the services domain. -
Examining the Role of Child Welfare in Addressing the Needs of the CSEC Population in Kentucky
In 2013 the Kentucky legislature passed legislation that made the child welfare agency (DCBS) responsible for investigating reported cases of Commercially Sexually Exploited Children and responding to their needs, but gave them no additional resources. What is the nature of the CSEC problem in Kentucky? How do these youth come to the attention of DCBS? How does DCBS respond to their needs? It is not clear that this policy was designed in a way that it could ever be effective? Why did Kentucky choose this strategy? What can other states learn? Case number 2076.0 -
DHL Global Forwarding: Consolidation Program
On October 13, 2015, the regional director of DHL Global Forwarding (DGF) was reviewing reports in preparation for a team meeting based in Bengaluru, India. DGF provided air and ocean freight forwarding services. In September, the regional director's team had successfully rolled out a new consolidation program in three Indian cities: Hyderabad, Bengaluru, and Chennai. While glancing through the respective consolidation teams' reports, however, several questions occurred to the director: Was DGF paying more to airlines on specific days of the week in these three cities? Should the company continue to run the consolidation program in these locations? How could DGF consolidate its clients' requirements across these cities? Would such consolidation benefit the company? The director had just one day to come up with a new plan for presentation at the next team meeting. -
Paillasse International SA: Global Market Selection
Paillasse International SA was a Swiss-based bread company operating in 15 European markets as of 2016. The company had invented a proprietary, patented process for producing bread concentrate that was used to make high quality, healthy breads. The company was successfully using licensing agreements for the bread concentrate with bakeries throughout the European markets; the latest agreement was with a retailer in Spain. The chief executive officer had just shared the good news with the company owner. The conversation then turned to questions concerning the future growth of the company. Where should it expand next? What impact would the maturing industry have on the company's growth plans? How could the company maintain its competitive position in the market? -
Neptune Orient Lines: Valuation and Capital Structure
Neptune Orient Lines Limited (NOL) was started as Singapore's national shipping line to facilitate industrial development and support the economy. The CMA CGM Group (CMA CGM) had acquired 67 per cent of NOL from Temasek Holdings Private Limited for SG$2.3 billion or $1.30 per share-a 6 per cent premium over the last closing price. In 2016, CMA CGM sought to acquire the remaining shares at the same price so that it could delist NOL and take it private. In order to delist, the company would need to acquire another 23 per cent of shares to hit the acceptance threshold of 90 per cent. Should the remaining shareholders sell their shares at $1.30 per share, or hold out for a better price? Should bondholders of CMA CGA and NOL be concerned about the acquisition? -
Deregulating the Sale of Alcohol in Ontario
Following a report by the Premier's Advisory Council on Government Assets in 2015, the sale of beverage alcohol products in Ontario was deregulated: in 2016, 60 grocery stores were licensed to sell beer and cider to consumers. The intention was for up to 450 grocery stores to eventually sell beer and cider products, and for 300 of these stores to also sell wine. The move to deregulate the industry was contentious; the province generated substantial tax revenues from its provincially owned liquor stores, and many stakeholders had concerns about expanding the availability of alcohol. Retailers, policy-makers, and consumers faced questions about the role of regulation in a market. The provincial government had been trying to achieve specific historic and public-welfare goals by regulating the sale of alcohol and taxing sales of this controlled substance. Policy-makers needed to consider the impact of deregulation on health care and on tax revenues. Independent grocers wondered whether substituting their current products with beverage alcohol products would boost their overall income; they also wondered what future restrictions the government would place on the sale of beverage alcohol products. The impact of this regulation was felt by consumers and by industry players, including retail stores, restaurants, and alcoholic beverage manufacturers. -
Shenzhen JIT Technology: Accounts Receivable Management Issues
In March 2012, the president of Shenzhen JIT Technology Co., Ltd., a small electronics manufacturing company in Shenzhen, China, was facing a problem with the company's uncollected accounts receivables (AR). The company had a high level of AR, and the time it was taking to settle these accounts was much longer than the industry average, which had led to financial difficulties. The company had formalized its sales commission structure to include a system of rewards and penalties related to the collection of outstanding AR payments, but these new rules had not solved the AR problem. The president needed answers: What was the main reason for the company's high AR and receivable turnover? What was wrong with its AR policy? What specific approach for quantity management of AR would resolve these issues? -
Shang Xia: Selling High-Quality Goods "Proudly Made in China"
Shang Xia is a story of a female entrepreneur whose goal is to open the Chinese luxury-goods market to products proudly made in China. It is the story of a young Chinese designer named Jiang Qiong Er who was convinced that the craft of making luxury goods, which had been deeply rooted in ancient Chinese culture, could be revived by Chinese artisans working to her modern designs. By the sheer force of her convictions, the seasoned CEO of Hermès was won over to her business plan. The story starts in 2007, when Shang Xia was first born in a small workshop in Shanghai, and continues to the present day when the brand is expanding its footprint in other cities in China and the surrounding region. Although Shang Xia has not yet turned a profit since it opened its first boutique in Shanghai in 2010, Hermès is patiently convinced that the value proposition is sound and continues to own a 90% stake in the company. -
Carvajal: From Soldiers to Diplomats, from Family-Run to Professionally-Managed
Carvajal traces the 110-year history of one of Colombian's oldest family-owned firms from a small print shop to one of the largest paper product conglomerates in Latin America. Founded in 1904 by Manuel Carvajal, a Colombian educator and erstwhile politician, the company has contributed to Colombia's economic and intellectual development ever since. By the 1950s Carvajal was the leading printer and publishing house in Latin America. Although the company benefitted from state protection, a tradition of technical innovation was established - in 1958 it printed the first telephone directory for Bogotá on two-sheet offset press - and thereafter expanded into neighboring countries, diversifying into inter-linked activities. Throughout the 20th century the firm was led by descendants of the founder. In the 21st century, a non-family CEO was hired for the first time. -
Chalhoub Group: A Luxury Success Story in the Middle East
This case illustrates the key role played by a local distributor in the luxury goods industry in the Middle East. By partnering with the Chalhoub Group, western firms have built a competitive advantage across the six countries of the Gulf Cooperation Council (GCC). While not typical of western luxury brands selling to global markets other than the Middle East, their alliances with the Chalhoub Group offer access to a vast network of 650 stores in prime locations in the GCC, many in new shopping malls. Chalhoub has retail outlets in 14 countries in the MENA region. Since its establishment in 1955, the Dubai-based Chalhoub has developed partnerships with Christian Dior, Sephora, Louis Vuitton, Fendi and many others. In so doing it has laid the foundations for the creation of own-concept stores, where it sells its own branded products. -
Smartick vs. Khan Academy: A Marketing Strategy for Moving Free Users to a Paying Model
The case describes how Spanish entrepreneurs Daniel González de Vega and Javier Arroyo founded Smartick with the aim of tackling the poor level of math education in their native Spain. Smartick is a self-financed enterprise that combines social impact with profitability. The two entrepreneurs are up against stiff competition, notably from the education giant Khan Academy, who not only has major financial backing but also offers its service free of charge. After two years of developing and testing a mix of the leading offline methods and state-of-the-art web-based technologies, Smartick is ready to make a big push into the after-school math learning space. Javier and Daniel are mulling over three options for their long-term marketing strategy. They are looking to segment the market and find the right segment to implement the strong brand positioning necessary to impact Spain's math education culture and society. The three options are to focus on B2B through schools, a combination of B2B and B2C, and a B2C-only approach. They must also decide on a pricing model and a communication strategy. -
Durian Capital Inc.
The case shows how concepts from operations management can be applied to a service setting (as opposed to manufacturing). With private equity as the setting, it aims to help students understand how to use systematic process and queuing analysis to design a professional service operation. Please visit the dedicated case website https://cases.insead.edu/durian-capital to access supplementary material. -
Acumen Fund: Lean Data in 2017
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The Ready-Made Garment Industry: A Bangladeshi Perspective (A)
Responsibility for working conditions in contract factories within the supply chain presents an ongoing challenge for managers and area of debate. Much of the debate approaches the challenge from the perspective of large global apparel brands. This case helps students take the perspective of a Bangladeshi contract factory that is part of the brands' supply chain, but must also deal with challenges in its own supply chain. The case leads up to the Tazreen factory fire of 2012, in which over 100 people died, and covers subsequent developments in Bangladesh and the apparel industry. -
The Akal Academies
In July 2016, Baba Iqbal Singh Kingra Ji, Chairperson, The Kalgidhar Trust-Society (TKTS), a non-profit social development organization based in Himachal Pradesh, India, wanted a plan for expanding the rural school activities of TKTS. In 2012, TKTS had fixed a target of 500 academies with 250,000 students to be achieved by 2020. As of 2016, it ran 129 schools that catered to 62,000 students. Apart from continuing with its donations and bank loan-based model, TKTS could explore franchising, entering into management contracts with existing schools, lease in land, or enter into public-private partnerships with the government.