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Electronics for You
EFY Group was a media group in the electronic industry, with four main activities: (1) publishing print magazines that focused mainly on the electronics industry in India-this was the main activity; (2) publishing digital (pdf) versions of the print magazines; (3) managing ten online communities; and (4) conducting events for the electronics industry. On June 16, 2016, the Board of EFY Group asked Rahul Chopra, Managing Director & CEO, to develop a "Digital First" strategy. It felt that the group had not paid adequate attention to digital publishing that was becoming common in the publishing industry and asked Rahul Chopra to focus on increasing the subscriptions to EFY's digital products. -
Airports Economic Regulatory Authority of India: Fair Rate of Return for Airports
An estimate of the fair rate of return on capital is a critical input into tariff regulation. A too high estimate will lead to high tariffs for consumers; a too low estimate will not provide adequate incentives for investment. The Airport Economic Regulatory Authority of India has issued a consultation paper for finalizing the norms and procedure for estimating the fair rate of return. It now needs to reconcile the differing view and approaches of different stakeholders. -
VMware and the Public Cloud
In 2015, VMware, a pioneer in server and network virtualization and a member of parent company EMC's "federation" of companies, had set its sights on becoming a leading public cloud provider. Two years prior, VMware first entered the public cloud market with its vCloud Air offering. In order to gain market share and compete with major cloud providers Amazon Web Services and Microsoft Azure, what strategy should VMware pursue? Should the company try to partner with an established cloud player, or build out its public cloud offering through its own internal investments and acquisitions? -
ABRY Partners and NSM Insurance Group
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DeliverMeal Ivory Coast: Addressing Headquarters' Demands
In 2015, DeliverMeal was a Norwegian online food delivery firm, mostly present in what could be considered emerging markets such as those in Africa. Founded in 2010, the company had experienced extremely rapid international expansion. DeliverMeal followed a global strategy, and standardized processes and turnkey solutions were provided from the headquarters to the subsidiaries.<br><br>The local business development manager at DeliverMeal's Ivory Coast subsidiary needed to make some decisions on how to react to three demands that had recently been passed down from corporate headquarters, all of which were at odds with the West African environment. How could the Ivory Coast manager meet her headquarters' corporate expectations and still conduct successful business operations within the local cultural context? -
Amgen: Launching Repatha
In March 2015, Amgen is preparing for the launch of Repatha, a new molecule that has demonstrated a remarkable ability to treat high cholesterol. Through a series of clinical trials, Amgen has proven that the molecule is both safe and effective for patients with high cholesterol. It also is effective for patients with familial hypercholesterolemia, a difficult-to-treat population that has exceptionally high levels of cholesterol. Amgen expects the FDA to approve the molecule before the end of the year. Now, the Repatha team has to develop a revenue forecast. -
Innovation at GSA: Zero Environmental Footprint and the Extreme Challenge (A)
In 2010, Martha Johnson, new Administrator of the General Services Agency (GSA), advanced the Zero Environmental Footprint (ZEF) initiative-a sustainability initiative to render GSA's activities environmentally neutral, agency-wide. She and her leadership team initiated a high-profile renovation project-dubbed the Extreme Challenge-at the agency's headquarters-one which sought to consolidate all GSA employee office space in the Washington, D.C. region into a single federal building. Doing so would require nothing short of a major organizational change effort within GSA, one which, if successful, could potentially serve as a model for other U.S. federal agencies looking to transform the way in which government employees organized themselves within modern office spaces. A year later, the agency approached a crucial moment in its evolution as a number of key leadership and organizational change questions needed to be answered: Could GSA execute on the vision put forth by Johnson's senior leadership team? Were the steps taken to date the right ones in setting the tone and preparing the agency for success? And what additional steps or strategies would need to be undertaken to ensure that the $5.5 billion investment in the Extreme Challenge would succeed, even as GSA pursued a longer-term vision of net zero impact through ZEF? The 13-min. video supplement includes 5 short segments exploring various aspects of the ZEF initiative. In it, Martha Johnson and her team describe their vision for the new office space and the challenges involved in changing the organizational culture at GSA. The videos also include footage of the old headquarters and examples of the new workspaces, as well some of the visual aids being used to increase staff engagement. -
Food Empire: Valuation and Investment
Food Empire Holdings Limited (Food Empire) was a food and beverage brand owner and manufacturer of instant beverage products, frozen convenience food, confectionery, and snacks. Its main markets were Russia and Ukraine. When the political tensions between Russia and Ukraine erupted and their currencies depreciated in 2014, Food Empire's bottom line was badly affected: its share price dropped 71 per cent in 30 months. In light of these developments, investors were not sure if they should sell their investments in Food Empire. Using financial statement analysis and various valuation concepts-including net tangible assets, dividend discount models, and peer multiples-it was hoped that the best course of action could be determined. -
Mubadala and EBX: To X or to X It?
In April 2012, Mubadala, Abu Dhabi's sovereign wealth fund invested $2 billion in Brazlian conglomerate, EBX, believing the company to be undervaluing by the public markets. Shortly thereafter, however, EBX and its multiple business lines began to spiral downward. Hani Barhoush and Oscar Fahlgren, members of Mubadala's investment team, were now charged with leading the restructuring efforts on behalf of Mubadala. The situation was exceptionally complex and involved dealing with different creditors, untangling cross-collateral clauses from EBX's subsidiaries' loans, and foreclosing on personal guarantees from Batista. There were also strong political challenges, since most companies operated in tightly regulated markets, some were publicly-traded, and many had received substantial subsidized financing from Brazil's Development Bank (BNDES). Finally, the country's economic and political environments were rapidly deteriorating, with a combination of stagflation, rising interest rates, and successive popular demonstrations causing the gradual loss of governability and ultimate impeachment of President Dilma Vana Rousseff. -
Flashion: Art vs. Science in Fashion Retailing
Kate Wilson, retail analytics manager at Flashion-a fashion flash-sale site-is tasked with developing analytics to optimize pricing for first-exposure products on the site. Many in the industry have relied on years of experience and intuition to determine pricing, can Wilson provide new insights? -
Ant Financial (A)
Headquartered in Hangzhou (China), Ant Financial has grown into a fintech "Unicorn." The fintech empire that the company established spanned verticals such as mobile and online payment (Alipay), money market fund (Yu'e Bao), wealth management (Ant Fortune), digital-only banking (MYbank), credit scoring (Zhima Credit ), and consumer credit portal (Ant Credit Pay) among others. After another sales record during the 2016 11.11 Global Shopping Festival along with Alibaba, Long Chen, Chief Strategy Officer of Ant Financial was contemplating the various opportunities and challenges associated with the firm's international expansion, inclusive finance in rural regions, and regulatory uncertainties. -
CEO Activism (A)
This case introduces CEO activism, a phenomenon in which business leaders engage in political or social issues that do not relate directly to their companies. The case uses several examples to describe why business leaders are engaging in CEO activism, and the potential benefits and drawbacks: (1) how Angie's List's CEO responded to the state of Indiana passing a controversial religious freedom law; (2) how Duke Energy's CEO supported pending U.S. legislation addressing climate change, and (3) how Chobani Yogurt's CEO publicly supported refugees. Students are then provided with the situation faced by PayPal CEO Dan Schulman after North Carolina passed House Bill 2, which Schulman perceived as discriminatory against LGBTQ (lesbian, gay, bisexual, transgender, and queer) individuals. Students are asked to consider whether Schulman should engage in CEO activism, and if so, how best to approach the situation. The (B) case provides an update on Schulman's decision. -
Marketing Transformation at Mastercard
Since 2013, Mastercard CMO M. V. Rajamannar (Raja) had transformed the firm's marketing by using unique experiences, digital technology, and social media to intensify linkages not only with cardholders but also with Mastercard's direct bank and merchant stakeholders. Building on its influential but dated "Priceless" advertising campaign, Raja refocused Mastercard on four "Priceless Possibilities" that engaged cardholders directly in unexpected and sometimes unique opportunities reflecting their passions. The result was increased brand differentiation and deeper collaborative ties between Mastercard and its bank and merchant partners. -
From mHealth Hackathon to Reality: Diabetes Care
This case explores the development of a business plan for a mobile health application for diabetes care. The case depicts a student team excited about the opportunity to improve the care of patients with diabetes by contracting an app. They go through a rigorous evaluation of the FDA regulations, the existing market, and potential commercial competitors to try and identify a market opportunity. Since diabetes care involves behavior change, the case then moves to an exploration to concepts from behavioral economics that could help build a sustainable platform for the app. In the end, the case questions ask the team to decide on a basic business and financing strategy if they want to go forward, or offers them the opportunity to "fail-fast" by quitting at this stage. -
The Taxi Wars and KITT Pvt. Ltd.
By 2016, the Indian taxi market was beginning to move from the unorganized sector to the organized sector, as evidenced by the emergence of radio cab services (cab operators that hired salaried drivers and used call centres for bookings) and cab aggregators (e.g., Uber and Ola Cabs). Initially, the market had only a few players, but the competition turned fierce after the entry of Ola Cabs and Uber led to major disruptions. None of the aggregators had yet achieved a positive bottom line, but industry reports and a speculated compound annual growth rate of 25-30 per cent suggested a bright future for the industry, provided the stakeholders could strategically tap into the opportunities. A small taxi firm, Kanika International Tour and Travel Pvt. Ltd. (KITT), needed to come to terms with its falling market share, difficulties in retaining drivers, and decreasing profitability. In light of the intensifying competition, should KITT and other independent players hold on to their business, or should they join the aggregators? -
SAPMER: Strategic Growth and Its Financial Implications
SAPMER SA was a Southern Ocean fishing company started by three Réunion Island entrepreneurs with one ship in 1947. The company grew from an entrepreneurial venture to a corporate acquisition, then back to a beloved family business not expected to make much money. But in 2006, SAPMER SA tested the waters with a new tuna venture. The venture was successful, but the company saw a better long-term opportunity in occupying a niche position. SAPMER SA launched a strategic rebirth with a five-year plan to develop a new segment: super-frozen tuna fishing and processing in the Indian Ocean, addressing premium Asian markets in sashimi, tataki, and tuna loins and steak. SAPMER SA's strategy resulted in strong performance, but in early 2013, when examining the financial records and the terms for purchasing newly acquired ships, the owner could see challenges ahead. To manage the challenges, the owner needs to know the reason for the improvement in return on equity, what potential problems could be identified from a DuPont analysis of the financials, and what bottlenecks to anticipate in the coming years. -
Mawlyngot's Tea Growers' Cooperative
In 2003, Mawlyngot Tea Growers' Cooperative Society (MTG), a village cooperative in Meghalaya, India, was spearheaded by a local teacher who wished to lift the village's people up from poverty, transform their lives, and improve their economic condition. The cooperative started with just a few farmers from the village, but by the end of 2013, the village was growing tea on nearly 90 hectares of land, involving almost all 45 households of the village. Although MTG was a successful model of cooperation for income and social well-being, competition was increasing in the tea market as local players and big multinationals expanded their offerings in the region. In competing for market share, MTG did not want to compromise on its farming practices, which were 100 per cent sustainable and organic. MTG also wanted to build its brand. The cooperative needed to reposition and grow to expand its capacity, sales, and market presence, but the founder was uncertain how to proceed. -
A. Lange & Sohne
The case describes how A. Lange & Sohne became one of world's leading watch companies. Its obsession with quality and innovation were behind its initial rise in the 19th century and, after a 40-year involuntary hiatus under the East German regime, again at the end of the 20th century. In 2016 its current CEO Wilhelm Schmid and the heads of product development and production have to decide on how to price its innovative watch collection and how to grow the Glashutte-based watchmaker. -
Catalant: The Future of Work?
Catalant, founded in 2013 as an online marketplace where MBAs could bid on consulting projects posted by small- to medium-sized businesses, had expanded by 2016 to provide Fortune 1000 companies with access to over 35,000 independent experts. The founders envisioned extending their matching solutions to help enterprises staff projects with a mix of current employees and external experts, hypothesizing that the "future of work" would involve more flexible employment arrangements. They debated how much to invest in new functionality versus improving their existing marketplace, and how to pitch their evolving strategic vision to investors. -
Tequila Patrón
Tequila Patrón was one of the most successful tequila marketers in the United States. Patrón needed to grow and in Mexico, the second largest market for tequila, the brand was perceived as American. What portfolio and branding strategy would best serve Patrón to conquer the Mexican market? Furthermore, what would expanding in Mexico imply for the company's marketing operations?