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  • Kate Spade New York: Will Expansion Deepen or Dilute the Brand?

    In 2012 Kate Spade New York's executive management believed that KSNY's brand equity could be further leveraged to benefit from explosive growth in the global luxury accessories market. Tasked to provide input on how to achieve this goal, the marketing team considered both how to expand the demographics of their customer base and how to brand any new products designed to target these new customers. Based in part on the company's own market research and interviews with President and Chief Marketing Officer Mary Beech, this case asks students to consider the course of action that would allow KSNY to preserve its established brand identity while continuing to grow sales among its loyal customer base.
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  • Precena Strategic Partners: Staff Relocation Cost Minimization

    A Japanese management consultant company seeks to relocate some of its instructors for a period of between one and three months to Singapore in order to conduct its flagship course catering to Japanese expatriate managers. It must determine which instructors to select in order to minimize relocation costs while taking into account their productivity and availability and the number of courses booked over three future months. Cost minimization is crucial due to the expensive service apartment rentals in Singapore. The firm must develop an optimization template in order to make the best possible decision.
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  • Intrapreneurship at Alcatel-Lucent

    Since 2006, Alcatel-Lucent, an international telecommunications equipment manufacturer based in Paris, France, has been conducting boot camps for its employees to provide business training and help them monetize their innovative ideas with a view to creating value for the company. The program has led to 32 projects of which two have been commercialized, three transferred to business units within Alcatel-Lucent and one spun off. In 2012, however, the boot camps were discontinued due to a cost reduction program aimed at making the company cash-flow positive. Now, in June 2014, after a change in top management and a desire to regain the innovative edge against its competition has revived the idea, the company's director of Open Innovation & Intrapreneurship is facing three dilemmas: how to reconcile the big business intolerance for failure with failure-prone intrapreneurship, how to design a forward-looking component into intrapreneurship and how to change the design and architecture of the boot camp in its new edition.
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  • McDonald's China: The Expired Meat Scandal

    In July 2014, a Shanghai television station revealed that Shanghai Husi, a Chinese subsidiary of a reputable US-owned food supplier, was producing substandard meat products. McDonald's was one of its biggest fast food clients and had been sourcing from the supplier for more than two decades. After cutting tie with Shanghai Husi, McDonald's China and its branches in Hong Kong and Japan were forced to pull a number of products from the menu due to a severe shortage of meat and vegetable supplies. The impact of the scandal was clearly reflected in the poor performance of its sales and stock. The food scare dissipated the general belief that food produced by foreign brands was better than that from Chinese counterparts. With large foreign-owned suppliers in China no longer guaranteeing reliability, what could McDonald's China do to strengthen its supply-chain management? What lessons should it learn from the incident? Would it be better for McDonald's China to run its own food processing plants in China?
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  • $19B 4 txt app WhatsApp...omg!

    In February 2014, Facebook announced the acquisition of WhatsApp for $19 billion. WhatsApp, founded in 2009, was a relatively young company that employed only 50 people and earned merely $10 million in revenue in 2013. It was one of many mobile messaging services that allowed users to contact each other without paying costly text message fees. However, its popularity and growth potential enticed Facebook, a company facing many challenges and looking for opportunities to expand its user base. Facebook, the social networking website that allowed users to share information with friends, believed WhatsApp was a logical next step that would help it achieve its mission of "making the world more open and connected." When Facebook announced the acquisition, it vowed to keep WhatsApp operating independently, letting the founders control the direction of the company and allowing WhatsApp to stay true to its mission. Yet, many debated the logic behind paying so much for such a small company with limited revenue streams. Was Facebook correct to purchase WhatsApp? Even at $22 billion? How could it create value if it did not integrate WhatsApp with Facebook?
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  • General Electric's Expansion in the Middle East

    In July 2012, a senior manager in the corporate strategy team of General Electric (GE) was wondering what changes he should recommend for its strategic plans in the MENAT region (the Middle East, North Africa, Turkey and Pakistan). First, the senior corporate strategist wanted to get a better understanding of how regional management had succeeded in growing its business despite the barriers it had faced, such as political instability, difficulties in dealing with family-owned firms with affiliate relationships, and institutional corruption. Second, given predictions of sluggish growth in developed markets, it was clear that GE MENAT would be an increasingly large part of GE's revenue base. The key challenge was how to continue to sustain GE MENAT's growth rate while maintaining the high corporate standards for which GE was known.
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  • Damaí Lovina Villas: Can Eco-standards and Certification Create Competitive Advantage for a Luxury Resort?

    The general manager of Damaí Lovina Villas, a boutique hotel located in northern Bali, wants to strengthen the hotel's competitive position by increasing utilization rates beyond the hotel's 65% occupancy. The central question that the case poses is whether leveraging an organization's sustainability activities, and participating in a voluntary environmental program (VEP) that promotes standardization and certification, is a reasonable vehicle to do so. This case considers what sustainability means in the context of a specific company, including issues related to value creation stemming from efficiency and productivity, reputation and legitimacy, innovation and repositioning, and strategic visioning opportunity framing. It presents an assessment framework (1) to evaluate a firm's environmental and social activities, (2) to assess the sustainability activities of various VEPs, and (3) compare the two to determine whether and how a company's sustainability programs align with the choices of VEPs under consideration. The framework creates a foundation to assess whether VEPs can offer strategic competitive advantage, and at what cost. The case is intended for an MBA or advanced undergraduate course to explore issues around strategic differentiation and standardization and strategy-environment fit, as well as courses dealing with topics related to sustainable enterprise, corporate social responsibility, international management, hospitality or hotel management, and eco-tourism.
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  • The Deutsch-Casella Joint Venture and [Yellow Tail]® Wines: Trading Up or Trading Down?

    In early February 2009, executives from a U.S. wine importer, W. J. Deutsch & Sons (Deutsch), met in White Plains, New York, to try and reach a consensus on how to respond to changes in the marketplace. Wine consumers had begun purchasing less expensive wines, or "trading down," amidst a global recession in 2008-2009, reversing a five-year "trading up" trend. Inventories ballooned in the wine industry supply chain. Some producers and importers, unable to sell stocks, went into default. After an initial failure in the late 1990s to create an import brand with Casella Wines in Australia, Deutsch found success with the [ yellow tail ] brand - the number one Australian wine export and U.S. import from 2003-2008. John Casella, Managing Director of Casella Wines, suggested repositioning the [ yellow tail ] brand, priced at $4.99 - $5.99 per 750ml bottle, while Deutsch's founder, Bill Deutsch, and his son, Peter (CEO), could not agree on a strategy.
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  • Artesanías de Colombia

    Upon becoming General Manager of Artesanías de Colombia (AC) in January 2007, Paola Muñoz faced the challenge of redefining the organization's strategy. The mission of AC, a mainly government organization with a 3 % private ownership, was to foster, promote, and market Colombian handicrafts, thus creating economic development opportunities for artisans, a low-income, mainly indigenous population. In early 2007, soon after assuming her role as General Manager, Paola evaluated the strategy, achievements, and limitations of her predecessor's 16-year-long management tenure, in order to craft her own strategy for the organization. Whereas the previous strategy focused on crafts-with a strong emphasis on the promotion of design and the positioning of crafts as very differentiated products among high-income clients-Paola wanted to discuss with her staff the pros and cons of reorienting the AC's strategy toward the artisans, through increased training, support, and capacity building especially in administrative, economic and organizational areas. The case is based on an organization that is primarily a public/ government organization with a social mission. Governments and government agencies still represent in most OECD countries between 40% and 50% of the economy. This case invites students to (1) strategy formulation in not-for-profit or governmental contexts (specifically in this case a hybrid organization with (a) a dual mandate -social and business orientations (b) in a sector in which the small focal organization promotes value creation with a vast number of producers -over 350,000 artisans in the country) and to (2) highlight the relevance and limitations of strategic management concepts and tools in such contexts. Besides a strategic management course, this case can be used in a corporate social responsibility course to illustrate the challenges of a hybrid organization, in which profit-making and social mission are complementary objectives.
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  • Envirofit International: Cracking the BoP Market

    In 2007, Envirofit International, a 501(c) (3) non-profit enterprise from Ft Collins, Colorado, USA, teamed up with the Shell Foundation to reduce indoor air pollution (IAP) in India by selling low-cost high-performance cookstoves designed to reduce carbon emissions by at least 50 percent. IAP was recognized as a silent killer in developing countries like India and a major environmental hazard in developing countries and around the world. The simple solution to this worldwide problem was a low or zero emissions cookstove. This case describes how Envirofit developed and marketed a high performance cookstove to the base of the pyramid (BoP) households in India earning $2-$7 a day and the challenges it encountered in the process. In spite of high investments in social marketing campaigns, Envirofit's push strategy did not result in strong sales growth in the BoP market segment in India. Harish Anchan, Envirofit India's country manager, and Tim Bauer, VP Operations at Envirofit, faced the daunting task of growing sales profitably in order to make the Indian venture financially sustainable. Students have the opportunity to analyze Envirofit India's market and financial performance and suggest alternatives to improve sales based on a sound understanding of consumer behavior in the Indian BoP market.
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  • Addons: Targeting Impulse

    Addons Retail Private Limited was incorporated in 2006 in Mumbai, Maharashtra, India. The objective behind the venture was to sell lifestyle products and fashion accessories to cater to the impulsive buying urges of urban Indian men and women. The retail chain store sold a range of fashion accessories and products; competitors included both small mom-and-pop stores and kiosks as well as multinational chains. By summer 2014, the founder and director had painstakingly created 80 retail touch points in shopping malls and high streets in a range of cities across the country; his goal was to grow to 500 retail outlets by 2019. The company was on a rapid growth model, but it needed customer footfall and loyalty to support its aspirations. How could it achieve the fine balance between novelty and loyalty for a whimsical, impulse fashion product?
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  • Oberoi Hotels: Train Whistle in the Tiger Reserve

    Celebrated as one of the world's premiere luxury hotel brands, Oberoi Hotels attracts and serves some of the most quality sensitive guests in the world. The case considers the challenge of how an organization, with a standardized service model, can repeatedly delight customers whose expectations grow with every interaction. To explore this question, the case details the design elements of Oberoi's complex service operation, including its approaches to employee management and continuous improvement, as well as the dynamics of service competition in a rapidly growing market.
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  • Burberry in 2014

    In February 2014, Burberry's chief executive officer Angela Ahrendts is preparing to hand the reins of the English luxury fashion company to chief creative officer Christopher Bailey. Under Ahrendts and Bailey's partnership, in place since 2006, Burberry's revenues have tripled to more than two billion English pounds, and operating profits have more than doubled. Ahrendts has led Burberry to become a brand that once again stands for luxury and that has a strong global and digital footprint. Yet the leadership change is met with skepticism. Is Burberry's current strategy also the right one for the future, and can Bailey continue Burberry's transformation?
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  • Rebranding Godiva: The Yildiz Strategy

    This case concerns Yildiz Holding's acquisition of Godiva Chocolatier from its previous owner, Campbell Soup, and its strategy in preserving Godiva's "made in Belgium" brand position. Provenance Paradox, a problem faced by companies in emerging countries trying to establish their brands in developed markets, had not become a problem for Yildiz Holding. After patiently waiting five years and seeing the company not performing as desired, Murat Ülker, the chairman of Yildiz, decides to change the management structure and encourage rethinking brand positioning, channels, and communications in the U.S. market. How was the Godiva brand affected by the execution problems of previous management? Why did Godiva succeed in international markets while it declined in the U.S.? What were the implications of the change in marketing strategy to Godiva's brand image?
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  • The Blonde Salad

    In 2014, Chiara Ferragni, a globe-trotting founder of the world's most popular fashion blog The Blonde Salad, and Riccardo Pozzoli, her co-founder and business partner, had to decide how to best monetize her blog as well as her shoe line called the "Chiara Ferragni Collection". A year earlier, Ferragni and Pozzoli had already made a decision to transform her blog into an online lifestyle magazine and to build its positioning as a high-end brand. It meant that The Blonde Salad envisaged to only cooperate with a limited number of luxury fashion advertisers, inevitably reducing the blog's revenues. Ferragni and Pozzoli considered changing the revenue-generating model by incorporating an online market place within The Blonde Salad, but which strategy and timeline would she need to achieve her aim? Should Ferragni's shoe line, a separate company with a different ownership structure, be merged with The Blonde Salad or was it desirable to keep the two apart?
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  • CJ E&M: Creating a K-Culture in the U.S.

    Buoyed by the success of K-pop music and K-drama television shows in Asian countries, Jay Lee, Chairman of the South Korean conglomerate CJ Group, believed that the time was ripe for taking Korean cultural content to the West. One initiative, carried out by the Group's Entertainment & Media (E&M) division, was a daylong fan convention, called 'KCON' , that was held in Irvine CA in October 2012 and which featured various Korean cultural elements, such as music, dance, film, and food. In the spring of 2013, Miky Lee, the Group's Vice Chairman, called a meeting with key executives to review the results of KCON 2012's and make a recommendation to the Chairman on whether to hold a similar event in 2013. As part of their deliberations, the executives were expected to consider where a potential 2013 convention should be held, which artists to invite, which target consumers to focus on, how to price tickets and how to attract more sponsors. With KCON 2012 having lost money, despite a robust turnout, it was far from clear whether to repeat the event and, if so, whether its scale should be expanded beyond 2012's $1.1 million budget. With CJ recently opening a chain of mid-market Korean food restaurants in the Los Angeles area called Bibigo, the meeting would also touch on the restaurant's U.S. growth plans and how they might be connected to KCON. More broadly, the executives had to wrestle with the question of whether Americans would ever really embrace Hallyu, the Korean Wave, beyond one-off success stories like PSY's "Gangnam Style". And even if they believed so, was KCON the right vehicle to make it happen, or was the event just a waste of the company's time and money?
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  • Monte-Carlo Weddings

    Monte-Carlo Weddings, established by Frank Damgaard in 2005, is the most respectable and exclusive wedding planning business in the South of France. Frank has organized the largest, most expensive and luxurious weddings in Europe, serving celebrities, CEOs, and other high-net-worth individuals from around the world. After 10 years in operation, constantly innovating and pushing the bar higher, Frank is wondering what is next for him and his company. Could he further elevate a wedding experience and exceed his demanding clients' expectations? Is it possible or even desirable to grow his high-touch, fully customized service provider business? How can he leverage his brand, reputation, and success in the French Riviera to build a larger business and stronger brand? What should he do next? Is he ready for another change?
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  • Hatsune Miku: Japanese Virtual Idol Ignites Global Value Co-creation

    Crypton Future Media, a music software company based in Sapporo, Japan, developed Hatsune Miku (HM), a singing voice synthesizer software program (Vocaloid). Users entered lyrics and melodies to create songs, which were then sung by Hatsune Miku, a 16-year-old female virtual singer featured on the software packaging.<br><br>Initially targeting professionals, HM unexpectedly caught on among amateurs who produced music, lyrics, artwork and videos, which they shared via websites such as YouTube, Nico Nico Douga and Crypton's Piapro. Users often worked collaboratively, and by March 2014, Miku had over 110,000 released songs, 170,000 uploaded videos, 1,000,000 created artworks and nearly two million Facebook "likes." Miku's popularity led to international media coverage and numerous new business opportunities for Crypton. She held sold out "live" concerts worldwide, starred in her own video game series produced by SEGA Games and was "hired" to advertise for companies including Toyota, Google and Domino's Pizza.<br><br>Six years after the initial launch, Crypton and its chief executive officer were faced with a series of challenges related to the future development of their virtual idol and the businesses that grew around her.
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  • Conseco Senior Health Insurance: A Strategic Problem of Reputation and Regulation

    In 2007 Conseco's CEO, C. James Prieur, faced a complicated set of problems with his company's long-term care (LTC) insurance subsidiary, Conseco Senior Health Insurance (CSHI). CSHI faced the threat of congressional hearings and an investigation by the U.S. Government Accountability Office, triggered by an unflattering New York Times article alleging that CSHI had an unusually large number of customer complaints and was denying legitimate claims. This threat came in addition to broader systemic problems, including the fact that the entire LTC industry was barely profitable. What little profitability existed was dependent on the goodwill of state insurance regulators, to whom the industry was highly beholden for approvals of rate increases to keep it afloat. Furthermore, CSHI had unique strategic challenges that could not be ignored: First, the expense of administering CSHI's uniquely heterogeneous set of policies put it at a disadvantage relative to the rest of the industry and made rate increases especially necessary. Second, state regulators were negatively predisposed toward Conseco because of its notorious reputation and thus were often unwilling to grant rate increases. Finally, CSHI was dependent on capital infusions totaling more than $1 billion from its parent company, Conseco, for which Conseco had received no dividends in return. Faced with pressure from Conseco shareholders and the looming congressional investigations, what should Prieur do? Students will discuss the available options in the context of a long-term relationship between Conseco and state insurance regulators. Prieur's solution to this problem proved to be innovative for the industry and to have far-reaching consequences for CSHI's corporate structure.
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  • E-Cigarettes: The Wild, Wild West

    In 2014, tobacco giant Reynolds American Inc. (RAI) had to confront the rapidly evolving global tobacco industry landscape. E-cigarettes, once considered a fad, were becoming increasingly popular. Facing uncharted territory, tobacco companies were uncertain about how to most successfully enter this market and how to do so rapidly.
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