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A Game of Two Halves: In-play Betting in Football
According to the Federation Internationale de Football Association (FIFA), while the sports industry itself generated revenue totalling USD 300 billion in 2011, sports betting was worth USD 350-400 billion. The primary objective of this case is to analyze the past data from the English Premier League (EPL) to develop winning strategies for in-play betting. In-play betting allows bettors to place their bets while the match is in progress. In most instances, the bettors can place bets any time during the match and can bet on the final score, match result, next goal scorer, and so on. Unlike the other bets, in-play betting odds are updated in real-time by the betting companies based on the events in the match. In-play betting provides an opportunity to the bettors to mitigate the risk on their other bets. For example, consider a bettor who has placed a bet on a particular team to win before the start of the play. During the match, if the other team leads, he/she can mitigate the risk of losing money by placing another in-play bet. The objective of the case is to predict the outcome of football matches using classification techniques such as multinomial logistic regression and chi-squared automatic interaction detection (CHAID). The accompanying data in the Excel spread-sheet (IMB403EPL.XLS) may be used by the instructor to demonstrate application of several classification tools. -
VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context
The business world-over, and especially in emerging markets, is undergoing a radical transformation with respect to markets, consumers, suppliers, and technology. While multinational organizations can benefit through cumulative knowledge expertise of managers who had worked in emerging markets, the planning of survival and competition strategies of small-scale businesses run by entrepreneurs, offers tremendous knowledge potential. The case looks at the antecedents and process of transformation of a small-scale Indian firm, VNFPP Ltd., into a marketing-oriented organization, through the lens of holistic marketing. VNFPP Ltd. was in the process of shifting its focus from exporting pickled and processed agro-products to select customers abroad, to domestic markets with an entirely new product/product line. The managing director, P S Madhusudhan (Madhu), was concerned about the process of transformation of the organization with a predominant sales-orientation to a customer-focused marketing company. Preliminary research suggested that an opportunity existed for one of VNFPP's products in the Indian market among the burgeoning class of Indian IT professionals. The real concern for VNFPP would be in designing an appropriate marketing organization. Until then, all employees had a product orientation, with a marked absence of any kind of marketing concept. Holistic marketing and internal marketing were concepts that were formulated for large companies. Incorporating them in a small-scale industry was full of complexities and challenges. The case is about how VNFPP could come to grips with such challenges. -
Exploring Brand Associations in the Indian Context: Cafe Coffee Day
India has traditionally been a tea drinking nation. The association of youth culture and coffee drinking opened up exciting avenues for the cafe market that earlier used to have lower priced offerings from udupi (small restaurants) cafes. The organized cafe market-which was branded and professionally run in terms of its marketing efforts-in India, it was worth INR 93100 million and was growing at 25-30% annually. Sensorial experience was vital to a café brand. Cafe Coffee Day had a striking lead in terms of pioneering the cafes in India. With brands such as Barista Lavazza, Gloria Jean's Coffees, and Au Bon Pain in the fray, the challenge for Cafe Coffee Day was to strengthen its strategic brand associations, taking several considerations into account. In categories such as beverages, brands need to build themselves on both symbolic and hedonic appeals besides offering good attributes and benefits. With cafes being associated with the urban youngsters, the challenge for brands is to ensure strong brand associations as they are a logical outcome of attributes, benefits, symbolism, and hedonism. With competitive brands of cafes offering quality of coffee that would no longer be a differentiator, Cafe Coffee Day had to establish itself on brand associations that would nurture its associations and give it a sustainable edge over the competitors. Such an approach proposes a few challenging questions : How should the brand differentiate itself from its competitors? What were the dominant associations of the brand, and how could it use these associations? How did loyal consumers of the brand perceive the brand? How could the brand develop unique associations and communicate these to its consumers? The case study emphasizes the importance of brand associations in a dynamic environment that is affected by competitive brands and changing lifestyles of consumers. -
Bosch in India
The case describes the brand migration from MICO to Bosch in India. The case elaborates the integrated communication strategy for change in corporate identity - advertising, public relations, and media strategy. It details the communication strategy adopted for different stakeholders - employees, opinion leaders, aftermarket, and original equipment manufacturers. The metrics for measurement of effectiveness of communication strategy allow for a rich discussion of the extent to which brand migration can lead to transfer of equity. The case invites students to discuss the extent to which brand equity of Bosch has been built and the way forward. -
Wooqer: Making Business Social (A)
Information technologies enable key divisions of an organization such as HR, Training, Operations, and Legal, to achieve operational efficiency. In addition, IT can and must be used to enhance the company's strategic positioning by "socially" engaging an ecosystem of stakeholders: employees, suppliers, and customers. For this, the company's back-end IT infrastructure must be linked up with the front-line so that information can flow smoothly, and important decisions can be made in real-time. In this context, we make a distinction between Systems of Record and Systems of Engagement. The latter category of IT is now emerging, and will change the business landscape in substantial ways. This case is about one such platform of engagement called Wooqer, which business heads can harness to tackle a variety of problems. Wooqer facilitates communities of users to function independently, without requiring constant assistance from IT. The case begins by describing the information systems that drive business at Madura Fashion & Lifestyle, India's largest apparel retailer. In a rapidly expanding retail environment, Madura's Strategy Head has to decide between implementing point solutions to different technology problems, and rolling out a system of engagement. -
Indraprastha Cold Storage Ltd: Value Added Strategy in an Emerging Market
This case examines the business strategies available to an Indian company, Indraprastha Cold Storage Ltd. (IPCSL). It has made substantial investments in upgrading its existing cold storage to differentiate itself from the competition based on the premise that by providing superior product quality, it could charge a premium for its value added cold storage service. However, competitors lowered their rates in an attempt to capture even more customers, and IPCSL was concerned about the long-term viability of the business. It must decide on a course of action, taking into consideration the constraints of growing, transporting, storing and selling fruit in India; the asymmetry in price information available to growers and commission agents in the market, coupled with the old-fashioned way of doing business through open and closed auctions; and the costs and benefits of vertical integration between grower and IPCSL. -
Eight19 (A) : A Social Enterprise?
Eight19 is a technology-based start-up company based on Cambridge Science Park. The company is developing a new (and very low cost) solar-panel technology aimed primarily at domestic use in developing countries. The case describes the issues faced by eight19 as it develops a business model for the new technology - in particular balancing competing needs: to generate sufficient revenue to fund operations (and not run out of cash), to generate a sufficient return for investors, to ensure widespread adoption of the system by users by users who cannot afford the up-front costs, to incentivise distributors, to guard against opportunistic behaviour by users, to create loyal users and to build and maintain a positive brand. The case illustrates the importance of the business model (rather than the product per se) and the imperative to build and maintain the 'social legitimacy' of a venture in order to assure profitability in the long term. -
Groom Energy Solutions: Selling Efficiency
Groom Energy Solutions helps organizations reduce their energy use and costs through the implementation of energy efficiency measures, which create long-term financial and environmental benefits. With early success serving customers in the cold storage and industrial manufacturing sectors, the seven-year-old company must now decide whether to continue expanding within these segments or transition into commercial retail and office buildings, which offer growth potential and unique challenges. Groom Energy must also decide which geographic regions provide the best opportunity. This case study provides background on the history of the energy efficiency industry, the energy efficiency paradox, and the benefits and challenges of a business focused on implementing efficiency measures. The case is particularly relevant to courses focused on energy management, environmental sustainability, and entrepreneurship within the energy and sustainability areas. -
Chef Davide Oldani and Ristorante D'O
This case examines the unique business model of Ristorante D'O, a high end gourmet restaurant located near Milan, Italy. Founded by Chef Davide Oldani, D'O offers meals at approximately one-third the price of other Michelin starred restaurants. Oldani has made this business model profitable by making a conscious set of operating strategy choices (menu, meal design, service process, lay-out, reservation process) that reduce waste and inefficiency, while preserving quality. The case enables students to understand how cost-quality trade-offs can be altered through creative operating strategies, and sufficient data are available to analyze the operating model in depth. A second focal point of the case concerns Oldani's choices for growth. The wait list for D'O is currently 18 months. He can presumably open another D'O at a different location. At the time of the case, however, is considering opening a new restaurant in the same vicinity as D'O that would operate at an even lower price point. Case debate can center around whether this new restaurant format makes sense from a strategic point of view, and, in particular, whether the capabilities and know-how acquired in operating D'O are applicable to the new restaurant. The deeper issue in the case concerns how businesses based on the creative talent of an individual (like Chef Oldani) can grow, without losing what makes them special. -
Chorus and Telecom: Building the Boards
In 2011, Sarah Naudé and Matt Stanley sat down with the chairman of Telecom New Zealand, Wayne Boyd. Telecom, a publicly listed company and the largest telecom provider in New Zealand, was being divided into two publicly traded companies, Chorus, a telecom infrastructure company, and new Telecom, a telecom retail services provider. In connection with this split, Naudé and Stanley were charged with overseeing the process of creating two new boards of directors for these companies. As part of this process, the team reviews the roles and responsibilities of a board, defines what capabilities the new boards need, and reduces a preliminary list of candidates to a short list. They must now use this short list to create two strong boards. -
Beth Stewart: Navigating the Boardroom
After rising through the ranks of Corporate America, Beth Stewart has become a corporate director on the board of General Growth Properties. Stewart is struggling with how to address her mounting concerns over the financial health of the growing large publically traded real estate investment trust (REIT) to her fellow board members and company management. The case explores interpersonal communications, influencing one's peers, leadership style, and board dynamics. The case also chronicles Stewart's career progression focusing on different stages including work/life choices she made as a wife and mother of five children. -
Leopard Capital: Private Equity in Cambodia
This case describes the formation and operation of Leopard Capital, a "Frontier Market Private Equity Fund" from its establishment in 2007 up through the end of 2012. The case focuses on the fund's founder, Douglas Clayton, and his history doing business in Asia and what led him to the decision to start Leopard Capital as a Cambodia- focused private equity fund, and later to expand into other frontier markets such as Mynmar, Mongolia, and Haiti. The case emphasizes the fundraising challenges Clayton faced as a first-time fund manager operating in a developing country, and some of the creative strategies Leopard employed in order to attract capital from investors. The case also overviews the economic and political history of Cambodia. -
Creating a Luxury Experience at Value Retail
Value Retail PLC owned and managed a number of premium shopping destinations (Villages) across Europe. Soon the company would be moving into an entirely new market: China. The company's Villages had proven popular with both shoppers (many of whom were international tourists who had come to Europe specifically to visit one of Value Retail's Villages) and brands, a number of which were luxury brands that had historically avoided selling product at outlet locations. The company's Founder and Chairman, Scott Malkin, looked to the future challenges his company might face in China, as well as to the challenges his company faced around human resource management and organizational control as the company grew in size and formalized parts of its processes, and how his company would be impacted by the ongoing changes in the retail industry, including the rise of online shopping. -
The Origins and Development of Silicon Valley
On October 1, 1891, as Senator Leland Stanford cut the ribbon at the ceremony gifting 8,000-acres of his Palo Alto, California, stock farm to a new, 559-student university bearing his name and seeking to produce "useful" in addition to "cultured" graduates, the majority of onlookers were orange groves and wildflowers. There was, as Gertrude Stein would remark of nearby Bay Area city, Oakland, nearly 50 years later, almost "no there, there." That is, it was a place with little social depth, identity, or culture. But over time, the region became synonymous with a culture of entrepreneurialism and developed into the most significant innovation hotspot in the world. What factors, if any, made what was to become known as "Silicon Valley" unique? Will Silicon Valley remain a vibrant community of technological innovation and economic growth, or will it decline like other previously thriving U.S. regions? -
Sunrun: Raising the Series A Round
The Sunrun case profiles the evolution of this residential solar financing startup, focusing on the company's milestones leading up to the Series A financing round. Founded by two GSB graduates, Ed Fenster and Lynn Jurich, together with one of Fenster's high school classmates, Sunrun applied an innovative model from the commercial sector to residential solar, whereby homeowners could lease the solar panels that Sunrun owned and installed on rooftops. The case goes on to describe the co-founders' journey seeking Series A funding after they have invested their own money and raised outside capital from angel investors. It also provides the perspective of one of the leading VC firms in the Valley with regard to the strengths and weaknesses of the deal. Ultimately, the co-founders faced a decision: Should they accept more favorable terms with lower valuation from VC #1, more onerous terms but a higher valuation from VC #2, or could they afford to wait a bit longer until they closed a partnership to create a tax equity fund (used to fund the solar installations), which would potentially increase their valuation and the overall attractiveness of the investment? -
Luotang Power: Variances Explained
The general manager of Luotang Power, a coal-fired power plant located in central China, reviews annual results before a meeting with the board of directors. He thought the company performed well during the year and both plant availability and fuel economy had improved over the previous year. However, the positive performance does not show in the financial results and he must investigate before presenting to the board. He considers performing a variance analysis to better understand plant performance compared to the previous year. He also examines the contractual arrangement the plant has with the provincial power company for a minimum purchase of electricity to supplement regional demand. The company had been successful at selling excess electricity to the power plant but over the past 12 months, demand has decreased. Students must complete a quantitative analysis of the plant's performance and prepare recommendations to improve reporting and evaluation of the plant's performance. This case can be used in an introductory managerial accounting course to explore variance analysis and incentives in contracts. -
ExerciseApp
The CEO and founder of ExerciseApp decided to take the plunge and spec out the features of his new iPhone mobile application and supporting website. He planned for ExerciseApp to stream exercise workouts from pro-athletes to followers who wanted to "Train. Play. Be. Like the Pros" and get an edge to their workouts. As he envisioned the application, he realized he would need a lot of help with the technology and the setup of this entrepreneurial venture in order to successfully bring it to market. With limited funding, he must decide on the next steps for the business, including the application's features, business model and market strategy. -
Team Conflict: The "Chatty" Accusation at the Customer Support Call Center
This case is used in Darden's core Leading Organizations course and is appropriate for MBA, Executive MBA, GEMBA, and executive education programs. The manager of a baby product company's global customer support center observes friction among her staff about the only non-American on the team, whom the others accuse of increasing their call response rate time-thus effectively lowering their pay. When conflict arises on a multicultural team, to what extent can it be attributed to cultural differences and when should a manager become involved? -
Jeffrey Offutt and Jita Printing: Getting to Yes
Jeffrey Offutt had overcome many hardships and personal difficulties to better himself and build his own graphic-design and corporate-printing business: Jita Printing. Just as it seemed his efforts had begun to pay off in the form of steady work and a loyal clientele, Offutt was hit with two problems. First, designing and printing marketing materials for a small local theater had started as a quick, small undertaking for deeply discounted prices, but had turned into a drawn-out job with multiple design stages. Second, a hardcover book design for a flower shop, involved an entirely new business venture for Jita, and Offutt was having a difficult time coming up with a quote that was both competitive and profitable. How should Offutt deal with these two problems? This case is used in entrepreneurship electives at Darden, but would also fit well in a small business strategy course for non-MBA audiences. -
Salesforce.com: Creating a Blue Ocean in the B2B Space
The case describes a series of blue ocean strategic moves made by Salesforce.com in the CRM application market. In particular, the case addresses the concern of business executives over the applicability of blue ocean strategy in the B2B area. B2B managers often find that they are locked into providing products of certain types and specifications to their immediate customers. But in fact, value innovation can take place on the three platforms of a business offering, i.e., product, service and delivery. Salesforce.com's strategic moves provide an exemplary demonstration of how a company can effectively create and renew its blue ocean in the B2B field by value innovating its single business on the product, service and delivery platforms alternately. The case is accompanied by a comprehensive teaching note that analyzes and explains the key strategic moves of Salesforce.com using major BOS frameworks and tools. The case comes with a teaching note and a lecture slide pack. The lectures slides can be downloaded from https://www.blueoceanstrategy.com/teaching-materials/salesforce-com/ The case and teaching note are also available in Chinese.