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A Popular HR Chief Burned to Death: People Management Dynamics at the Indian Subsidiary of Suzuki Ltd
The case in intended to be used for MBA and executive education classes. It deals with (mis) handling by the Indian auto major issues such as new-generation workers, industrial relations (IR) dynamics, regional realities and cross-cultural HR. Perceiving harsh work environment, Gen Y workers of the new plant decided to form an independent trade union, which led to bitterness and grave tensions in IR. The emerging dynamics culminated in bubble burst when unexpected violence led to the tragic burning of the otherwise popular plant HR chief. The shocked management declared a month's lockout, and terminated the services of more than 500 core workers. The lockout caused production losses of Rs. 25 billion. Workers in general continued to remain disengaged due to large number of termination cases of their colleagues and seeing 147 of them behind the bar during murder and violence trial. Two years after the violence incident, the parent Suzuki tightened its control on this Indian subsidiary and took away executive powers from three top Indian executives, holding them responsible for the fiasco. Five years after the incident, the trial court sentenced a dozen union leaders to life imprisonment for the murder, and set free more than one hundred workers who had been charged of violence. The union was asking for their jobs back, which led to added complexity. Several strategic HR interventions taken by the management to contain workers' disengagement proved only partially effective. Management is in a dilemma about the using appropriate HR strategy for managing the situation. -
HNA Group: Global Excellence with Chinese Characteristics
By 2015, the HNA Group had grown from its roots as Hainan Airlines, a small airline founded in 1993 into a global conglomerate that ranked #464 in the Global 500. Much of this success it had achieved by cross-industry expansion within China, but since 2008, it had increasingly looked to expand globally. The HNA Group in general and Hainan Airlines in particular were recognized for their quality of service within China. However, this high reputation had yet to be translated across borders. Would HNA Group be able to bring its unique characteristics that made it successful within China to bear on the global marketplace? -
From Preparatory Academy to National Flagship: The Evolution of Tsinghua University
Tsinghua University is one of the most prominent universities in China, and, increasingly, in the world. Its evolution to this position reflects the major developments in Chinese history--outward looking internationalism in the 1920s and 1930s, creative survival in the 1940s, Sovietization in the 1950s and 1960s, chaos in the 1970s, rebuilding in the 1980s, and, since the 1990s, a laser focus on becoming one of the best higher education institutions in the world. This case study traces this institutional history and then examines Tsinghua University's recent attempts at reform in faculty governance, curriculum, and funding as it seeks "world-class" status. -
Nestlé SA: Nescafé Plan in China
Nestlé SA, in an effort to integrate sustainability into its business model, has recently established the NESCAFÉ Plan. This multi-faceted plan is based on creating shared value. It emphasizes sustainability as a source of competitive advantage and wealth creation, rather than viewing sustainability as a cost to be incurred to minimize risks and protect the company's reputation. Nestlé's manager of creating shared value in the beverages strategic business unit faces two core dilemmas in executing this plan in China. In the short term, should Nestlé purchase green coffee beans that are socially or environmentally certified (e.g., Fairtrade), or should it instead expand its efforts to work directly with farmers to develop better farming practices? Longer term, would a backward integration into coffee farming provide a better means of ensuring that sustainability is embedded in the business model? -
Gravity Payments: $70,000 Minimum Salary Company
In April 2015, Dan Price, chief executive officer and founder of Gravity Payments, a private credit card processing and financial services company, announced that every employee would receive a minimum annual salary of US$70,000 over the next three years. Price said he was concerned about the increasing pay gap in the United States and news of his bold move went viral, causing debate over employee compensation plans and the wealth gap in society. At first, there was applause for his radical actions, causing an initial rise in new business. However, there was almost an immediate backlash both internally and externally. One senior worker at the company resigned, claiming that lesser-skilled workers would simply clock in and out while highly skilled workers were not similarly compensated with raises. A lawsuit was filed by Price's brother, a minority shareholder, who believed that the move would hurt the company. A number of clients left Gravity Payments while other companies criticized the move, saying it made them look stingy. Price attempted to tackle pay inequality by increasing salaries, but this created controversy. Employees were not the only stakeholders affected by Price's actions. What should Price do now? -
miraclefeet.org: Fundraising and Financial Sustainability
In the summer of 2015, after reporting another year of strong growth in programming and fundraising at miraclefeet.org, a nonprofit dedicated to providing treatment to children born with clubfoot in developing countries, co-founder and executive director Chesca Colloredo-Mansfeld (MBA '92) found herself wanting to do more. While miraclefeet had reported record numbers in each year since its 2010 founding, she knew that she had the capacity to not only treat but also eradicate untreated clubfoot, one of the most common congenital deformities of the feet, and one of the leading causes of physical disability in the developing world. In order to achieve this vision, Colloredo-Mansfeld would have to alter the organization's current funding strategy, which relied heavily on high net-worth individuals. Finding the ideal combination of fundraising opportunities in a timely manner was critical to not only Colloredo-Mansfeld's eradication plan but also the long-term financial sustainability of the organization. This case describes the challenges of fundraising as it relates to the financial sustainability of a growing non-profit organization. It covers the founding vision and business model, a review of financials, impact metrics development, as well as a discussion of strategic opportunities. -
Alqueria: More than Just a Glass of Milk (A)
AlquerÃa was founded by Professor Jorge Cavelier and his son Enrique Cavelier with the motto, "A bottle of milk is a bottle of health." From AlquerÃa's inception, the Cavaliers looked for ways to innovate on their products and to substantially improve the quality of the milk they offered to their customers, introducing new packaging formats and production techniques. In 1992, Carlos Enrique Cavelier took over at AlquerÃa's helm. His studies in Sociology, Anthro¬pology and Public Administration abroad as well as his years in public service in Colombian po¬litics prepared him to become a business leader who cared not only about his family business' prosperity but also about the communities surrounding the company. During his tenure, Cave¬lier has shown a special commitment to his suppliers -small dairy farmers- helping them with training programs on nutrition and more updated, efficient and quality-enhancing production techniques. He has also played a key role in his organization's communication and identity buil¬ding efforts, as well as a strong network and partnership driver, engaging AlquerÃa stakeholders. Headed by Cavelier, AlquerÃa has taken a leading role in significant national debates, such as the ones on corporate responsibility in post-conflict scenarios, on free trade treaty challenges, and on Colombia's competitiveness issues, among others. The company's current management has received national and international awards. By 2013, AlquerÃa ranked among Colombia's largest dairy producers, following Colanta S.A. and Alpina S.A. -
IKEA in Saudi Arabia (A)
A Swedish newspaper reveals that IKEA has erased all images of women from its catalog for Saudi Arabia. The article sparks criticism of IKEA from the Swedish government and its customers in the West. Critics contend that IKEA is not living up to its own commitments to gender equality. Some threaten a boycott. IKEA must respond. Reissuing the catalog with women included risks running afoul of Saudi censors who can impose harsh penalties. The company has had a presence in Saudi Arabia for nearly 30 years. -
Rumie: Bringing Digital Education to the Underserved
In fall of 2015, the Toronto, Canada-based education technology non-profit Rumie had distributed thousands of computer tablets preloaded with collections of thousands of pieces of curated educational content to nongovernmental organizations (NGOs) in some of the most impoverished countries around the world that lacked basic educational resources. Founder and executive director Tariq Fancy, with his team, was deciding whether to accept a large new order from an NGO in Pakistan that would require Rumie for the first time to provide ongoing services such as teacher training, performance monitoring, and other support. Some on the team felt that providing a full suite of bundled services would detract from their recent push to decouple Rumie's software and services from the physical tablets to achieve greater reach and scale. In October 2015, Rumie opened the LearnCloud, its proprietary online content curation portal for NGOs, to the public. Now anyone could discover, share, and rate free digital educational content from any source. Fancy considered, "Education Access represents a big order and huge growth, but does it lead us into doing things we haven't done before, may not be good at, and may not be scalable to be used by different partners in different geographies?" -
SAP SE: Autism at Work
This case describes SAP's "Autism at Work" program, which integrates people with autism into the company's workforce. The company has a stated objective of making 1% of its workforce people with autism by 2020. SAP's rationale for the program is based on the belief that "neurodiversity" contributes to the company's overall innovative capabilities ("We believe that innovation comes from the edges.") Thus, the program is not viewed as a subsidized Corporate Social Responsibility activity but as a positive net benefit activity, as well as a way of addressing skills shortages by tapping into non-traditional pools of (considerable) talent. The case explores how SAP is also using the program to rethink and reengineer its Human Resource Management policies and processes to make them more inclusive and effective. -
Skyscanner: Globalising a Business Model for One-Stop Travel
The case is set in May 2015 in Singapore, the regional headquarters of the UK-based travel metasearch firm, Skyscanner. After a successful launch as a start-up followed by a period of rapid expansion, the company is now facing the challenge of growth in Asia. In 2011, Skyscanner opened its regional headquarters for Asia in Singapore. The tech-savvy customers in Asia were gradually beginning to discover the Skyscanner service, but their behaviour in using the site was different from that of customers in Western markets. Many users were accessing the site through mobile devices and linking from social media sites, while Western market customers were traditionally searching from a computer using the Google search engine. Skyscanner traditionally worked closely with partners such as airlines and online travel agents to provide information, advertising, and data services. To help attract partners, Skyscanner allowed the partner to "own" the customer, by passing the consumer through to the partner site to complete the transaction. The partners got paid for click-through traffic or from advertising on the Skyscanner website. By May 2015, Skyscanner had created local websites for 14 countries in Asia Pacific, but the challenge was to scale up the business and get more customers using the site by meeting localised needs. How should it further adapt its local offerings and marketing strategies more effectively to better connect to the in-country users in Asia? How should Skyscanner change its internal organisation to be more nimble to respond to the market? This case targets participants who are interested in understanding the challenges associated with adapting an organisation and its business model for local market needs. The case is designed for use in postgraduate and executive education classes. It allows participants to better understand the Asian context and the challenges of growing a multi-national business in Asia. -
YOB Bank: Application of Text Analytics in a Retail Bank
It was April 2014, and Cadence Chong, a new analyst at YOB Bank Singapore's consumer banking department, is working on her first assignment. Chong has been hired to improve the bank's credit card business, as her manager believed that there was scope for the business to do better. A specific initiative that had been suggested was to enhance the bank's responsiveness to customer feedback on MyDiningDeals, a mobile application that offered special deals and promotions contingent upon customers using their YOB credit cards. Chong was tasked to apply analytical techniques to the user-generated data gathered by the application. She had to analyse the data in response to customer and internal feedback on the division's credit card offerings to investigate how the application could be made more user-friendly. Chong was eager to complete her task as she knew that her analyses and recommendations would help drive up profitability in the credit card division. -
EMPLOYEE PROVIDENT FUND SCHEME - BOON OR BANE?
The Employee Provident Fund Scheme (EPFS) had been established as a social security scheme for the Indian industry and has established a huge corpus through its 42 million contributors. At a relatively risk-free rate of nearly 8.75% return, EPFS is recommended as a good retirement product in the debt portfolio. However, administration of the scheme had come under considerable criticism, which had resulted in changes in the regulatory norms around the scheme. The government's interest in promoting a defined contribution approach to retirement benefits appears to work at cross-purposes with the interest of the low-income employees. With recent regulatory changes in the minimum contribution level, the effect on bottom-of-the-pyramid employees covered by this scheme further reduces their net income. The case discusses the impact of changes in the regulatory scheme on all employees, but more specifically on the lower income workforce, the financial impact for organizations. It debates the efficacy of the current social security scheme in India and the options for organizations to design and administer variable compensation structures adapted to individual and life-stage needs. -
Maxim in India A
Maxim, headquartered at San Jose in California, was founded in 1983 by Jack Gifford and other professionals with experience in semiconductor design and sales. The company posted $2.47 billion in sales in 2011, with 9,300 employees, and 35,000 customers worldwide. Maxim had developed expertise in designing and manufacturing highly integrated analog and mixed-signal semiconductors. Maxim set up a technology design center in Bangalore in 2006. The Bangalore center had grown over the years and moved up the value chain in terms of contributing to technology design at Maxim. Gopal Krishna, Head of India Operations, had joined Maxim in 2009. In mid-2011, Gopal Krishna was contemplating the new context that Maxim faced in India. India had been a location that contributed to design in Maxim while now India as a market appeared increasingly attractive. As a first step towards exploring this opportunity, Gopal decided to engage with the marketing faculty at Indian Institute of Management Bangalore who decided to examine the medical diagnostics space in India for value exchange opportunities. Interviews were conducted with healthcare professionals. The management team had to identify attractive market opportunities and develop a strategic plan to enter the Indian medical diagnostics market. -
Bühler India - Assessing Growth Opportunities
The case focuses on the dilemma faced by Dipak Mane, Bühler's President, South Asia as he pursues opportunities for sustainable growth in India's rapidly growing but competitive food processing industry. Buhler's corporate objectives, innovative technologies, superior quality, positioning as a premium global brand, competition and value chain requirements, determined its product - market strategies in India. Bühler was traditionally focused on the top-level market in several geographies that it served around the world. However, the company had experienced rapid growth during the last decade after it entered the mid-level market with new offerings and a value proposition tailored to the needs of the mill owners. Dipak's dilemma revolved around growing the business in India by consolidating in the mid-level market and/or targeting a new segment, namely the entry-level segment. The key issues relate to - Should Bühler target the entry-level segment? If yes, what adaptations will be needed to target customers in the entry-level segment? What will be the potential cannibalization in the mid-level segment where Bühler enjoyed a sizeable presence and reputation? What should be the differentiation strategy in the entry-level segment? What would be the go-to-market strategy for the entry level? -
HR Analytics at ScaleneWorks: Behavioral Modeling to Predict Renege
ScaleneWorks People Solutions LLP (ScaleneWorks), is a Bangalore-based talent management company, which commenced its operations in the summer of 2010 with a vision to build an organization of great value and be among the most respected talent acquisition solution providers globally. Sanjay Shelvankar, CEO of ScaleneWorks was considering the use of an analytical approach to predict renege. Past data from Indian IT companies revealed that 30% of the candidates did not join the company after offer acceptance, which significantly increased the overall cost of recruitment. Sanjay wondered if Analytics could possibly help in identifying the key drivers that influence a candidate in either joining/not-joining a company after accepting the offer, as it would largely help clients save both cost and time. However, there was a risk involved: any error in this prediction could turn out to be a costly affair, as the client could ''wrongly'' reject a potential candidate even without interviewing him/her. -
Customer Analytics at Flipkart.Com
Flipkart, the poster child of Indian e-commerce, was an early entrant in the nascent Indian e-commerce market and quickly established itself as the leading company in this space. Flipkart has grown into an online retail giant, valued at over USD 15.2 billion as of 2015. Flipkart has been selling over 30 million products from more than 50,000 sellers in 70+ categories as well as has 30 exclusive brand associations with an in-a-day guarantee in 50 cities and a same-day guarantee in 13 cities. Flipkart was 33,000 people strong and had over 50 million registered users with over 10 million daily visits and 8 million shipments per month. Flipkart has been putting in much effort and emphasis on the use of Analytics in every aspect of decision making. Headed by Ravi Vijayaraghavan, the analytics team had over 100 data scientists in 2015. Customer churn is a major concern for Flipkart since it has direct impact on Customer Lifetime Value (CLV). CLV is an important measure to differentiate customers, which can further help the organization manage them effectively. The main challenge in calculating the lifetime value of customers of e-commerce companies such as Flipkart is that the exact life of the customer is unknown owing to data truncation, that is, the actual point in time of customer churn, which may not be identified in e-commerce since there would be no prior communication from the customer about the churn. Hence, traditional models of CLV calculation may not be appropriate for e-commerce companies such as Flipkart. -
M Power Micro Finance: Early Battle for Survival
When M Power Micro Finance was founded in 2009 in the Indian state of Gujarat, a number of challenges in the microfinance market made it difficult for the company to survive. Just months after M Power's founding, the microfinance industry was hit by a repayment crisis that eroded both profitability and confidence in the industry. With public sentiment turning against microfinance institutions, M Power's bright growth prospects suddenly disappeared and its CEO struggled to keep the business afloat. The flow of funding into the microfinance sector dried up, and the management of funds had to be closely monitored on a monthly basis. The CEO's woes were not over: some of his business partners left the organization as the situation worsened. The company's future was uncertain. As the industry began to show signs of recovery in 2013, though, the CEO hoped to secure a financing deal and persevere. -
TransCanada's Keystone XL Pipeline: Unfinished Business
The senior management team at TransCanada Corporation in Calgary, Alberta, was stunned by the U.S. Department of State announcement that it was deferring its decision on a presidential permit, which was required for all construction of infrastructure crossing U.S. international borders. The infrastructure in question was the proposed Keystone XL pipeline, which would create a 2,735-kilometre direct route for Canadian crude from the Alberta oil sands to refineries in Oklahoma and the Gulf Coast. Because the pipeline would pass through environmentally sensitive landscapes, especially in the state of Nebraska, non-governmental organizations, climate change activists, citizens, celebrities and federal and state politicians pressured the Obama administration to halt the project. Company executives had initially seen the Keystone XL pipeline as a readily achievable, financially significant and strategically compelling venture but now wondered whether they had missed the indications and opportunities to avoid controversy. Extensive advertising campaigns and intensive lobbying in Washington did not seem to have improved the likelihood of the pipeline's construction. What could be done now to increase the likelihood of permit approval and bring the Keystone XL pipeline to fruition? -
Easepal: Transforming a Chinese OEM Supplier
As one of the world's largest OEM suppliers of electric massaging equipment, China's Easepal has faced increasing challenges in its traditional OEM business over the course of two decades. Since the company's inception in the 1990s, its founder has always had the ambitious goal of becoming more than just a supplier in the global electric massager market. Easepal's mature research and development and manufacturing capabilities have the potential to deliver some valuable opportunities in both the Chinese and international markets. With the goal in mind of becoming the international market leader, how can Easepal systematically transform itself from an OEM supplier into a global brand?