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Intertech: Instructors who Consult. Consultants who Teach
This case focuses on an entrepreneurial training and consulting company considering if it should invest in new virtual training technology as part of its growth strategy. The decision could significantly impact the nature of the company's face-to-face training business, change the company's historically successful business model, and affect long-range plans for growth. Intertech was founded in 1991 and provided technology training and consulting for a wide variety of clients, primarily in Minnesota. Intertech CEO and founder, Tom Salonek, was evaluating the next steps to achieve the company's growth goals. While the decision to spend $25,000 was not significant financially, the virtual training decision needed to be viewed from a variety of functional and strategic perspectives because of its impact on Intertech's business model -
The Midnight Journal Entry
How should a chief financial officer respond when he uncovers a serious accounting fraud? Richard Okumoto, the newly-appointed CFO of Electro Scientific Industries, Inc., learned that around midnight several months earlier, a group of managers, led by a man who later became CEO, had reversed an accrued liability associated with the anticipated cost of employee retirement benefits. This "midnight journal entry" had allowed the company to report a gain, rather than a loss, for the quarter. Okumoto believed that the reversal was improper and the company's earnings should be restated. When he approached the CEO, the general counsel, and the audit committee with his concerns, however, he was told to "just get past it." Okumoto had to decide how best to act on his conviction that the company had committed an unethical and illegal act, while minimizing the risk to himself and his future career prospects. -
Strategic Planning and Governance at Bridge Adult Service Centre: Where to Begin?
Susan Thibodeau, Executive Director of Bridge Adult Service Centre, contemplated how Bridge Adult could provide additional services and improved programming to current and new clients. Bridge Adult was a not-for-profit organization that aimed to enhance the lives and promote inclusion of intellectually challenged individuals in communities. There were 27 other service centres similar to Bridge Adult located throughout Nova Scotia, Canada. Funding from government sources remained relatively stagnant over the years but demand and programming needs had changed significantly in most of these centres. In order for Bridge Adult to continue to improve their current client offerings, programs that generated revenue while simultaneously provided meaningful experiences for clients were essential. Thibodeau, in collaboration with the Board, needed to determine strategic priorities for the next three years, her role in that process and who would be responsible for the various aspects of the implementation. This case was formulated for university undergraduate students in their fourth year of study or graduate students in a MBA program. It is intended to challenge students to consider the similarities and differences in strategy formulation and implementation and governance between for-profit and not-for-profit organizations. It should therefore be taught as a corporate governance or strategic planning case and ideally after students have been exposed to financial analysis, competitive analysis, value chain analysis, governance, SWOT analysis, and growth strategies. -
A Telemedicine Opportunity or Distraction?
Innovative IT applications such as patient-present telemedicine consultation services can save lives and reduce costs. Yet, despite extensive pilot-testing, few such services have achieved long-term viability. Partners HealthCare's TeleStroke service, in full operation and managed by the Massachusetts General Hospital Neurology department, is financially self-sustaining and serves a vital need. Clinicians at some participating hospitals are interested in using telemedicine for other medical applications outside of stroke care. Should Partners expand its service? What organizational, clinical, and technical issues would arise if Partners expand its telemedicine offerings? How can these issues best be managed? The case is intended for an MBA or advanced undergraduate course in IT Management. We use this case in the first module of a Strategic IT Management course. Module I, Use IT for Business Value, introduces students to the resource based view of management and the mechanisms through which IT (hardware, software, network, and data resources) can add business value-such as by being embedded in a product or service (Netflix case), by generating valuable data that enables management to make better decisions or improve operations (Harrah's Entertainment and Catching Tax Cheats cases), and by serving as a platform for collaboration (this Telemedicine case). -
Kingfisher Airlines: Managing Multiple Stakeholders
The case is based on the crisis faced by Kingfisher Airlines during November 2011. It describes the paradoxical situation faced by the airline industry in India which experienced exponential growth in passenger volumes; but with the exception of IndiGo Airlines, all the airlines failed to make profits. However, in general, the low-cost airlines did better than the full service airlines. Other than the government-owned Air India, Kingfisher Airlines, a full service airline, was in the worst possible shape and close to bankruptcy during that period. Lack of cash forced the airline to cancel about 35 flights in a day in November 2011, disappointing customers, the only stakeholder group that was happy with the airline. This event brought the whole industry under public scrutiny. Using the stakeholder perspective, the case suggests that owing to an excessive focus on one stakeholder group, the customers; and the neglect of the other four stakeholder groups, namely, suppliers, employees, community and society, including government agencies, and also the owners or shareholders; the organization had nearly gone bankrupt. The top management has to chalk out a strategy that reengages with all the stakeholders to get them to support it during Kingfisher's struggle for survival and to put the airline on a track of recovery. -
LabourNet: Empowering Informal Sector Labourers
This case chronicles the evolution and challenges faced by LabourNet, an organization that was conceptualized as a social enterprise to create and enhance income opportunities for workers in the Indian urban informal sector, workers who are typically poor, exploited, and disenfranchised. LabourNet endeavored to establish linkages between informal-sector labourers and potential employers through an Internet-based portal and cellular phones, bringing about efficiency in the search process as well as reducing the role of intermediaries who typically exploited the labourers and reduced their share of wages. Realizing that informal sector labourers were mostly migrants from rural India who did not possess any proof of identity or social security, LabourNet worked with banks and insurance companies to provide the registered labourers with proof of identity, insurance, bank accounts, and ATM facilities. Further, LabourNet provided the registered labourers with training so that they could command better prices for their services. However, LabourNet struggled to earn revenue and to become financially self-reliant because of difficulties in scaling its operations, its inability to monetize the services that it provided as well as for being unable to command any price premium for their labourers from the markets. The case ends at a point where LabourNet had to decide its future course of action because the donor funds on which it was relying was becoming exhausted and LabourNet was unsure about the strategy that it should adopt in order to create a business model that was both inclusive and financially sustainable -
The Saffola Journey
This case critically analyzes the positioning journey traversed by Saffola, one of India's leading cooking oils. For nearly half a century, Saffola was strongly associated with the health of the human heart, with its visual language, communication strategy, and brand positioning, all revolving around heart-related risks. With changing trends and market sentiments, Saffola became painfully cognizant of its shrinking relevance as a brand, indicated by stagnating sales, thus posing a unique conundrum: how should Saffola expand its user base to include non-heart patients while still being relevant to its current, loyal user base? In order to address this, the marketing team at Saffola undertook two re-positioning exercises, one in 2001 and the other in 2004. This case studies both these efforts in detail, analyzing the dynamics of the brand's image, identity, and positioning in tandem with changing consumer trends and market conditions. -
Estimating Demand for a New Regional Transport Aircraft (A)
In India, air travel in the early twentieth century is mostly between major cities and has historically been driven by businesses. However, a set of relatively unused airfields exist in or near smaller cities, presenting a potential opportunity for generating air travel demand in these locations. This would require a thorough understanding of existing travel options and the design of an air travel offering that can successfully compete with these options. The three-part case describes a methodology to arrive at the appropriate new air travel offering and an assessment of the extent of potential demand in this context. In the first part (A), competing travel modes are examined and the attributes that are relevant to the design of a new air travel offering are identified. A choice-based conjoint experiment is designed and pilot data is obtained and analyzed. -
When to Make Private News Public (HBR Case Study and Commentary)
Betsy Sugarman, a rising star in a biotech company, finds out that she is pregnant. This is good news for her, but bad timing for her career. She has been interviewing internally to take on a new role as the director of overseas operations, a position that requires a great deal of travel. Her prospective boss has all but offered her the job and is expecting a commitment from her within a week. She wants the job and feels she is prepared to do what it requires, but she's hesitant to disclose such personal information. Should she tell him about the pregnancy or not? With commentaries by Mary B. Cranston, the firm senior partner at Pillsbury Winthrop Shaw Pittman, and Michael Hamilton, a partner at Ernst & Young. -
When to Make Private News Public (HBR Case Study)
Betsy Sugarman, a rising star in a biotech company, finds out that she is pregnant. This is good news for her, but bad timing for her career. She has been interviewing internally to take on a new role as the director of overseas operations, a position that requires a great deal of travel. Her prospective boss has all but offered her the job and is expecting a commitment from her within a week. She wants the job and feels she is prepared to do what it requires, but she's hesitant to disclose such personal information. Should she tell him about the pregnancy or not? -
When to Make Private News Public (Commentary for HBR Case Study)
Betsy Sugarman, a rising star in a biotech company, finds out that she is pregnant. This is good news for her, but bad timing for her career. She has been interviewing internally to take on a new role as the director of overseas operations, a position that requires a great deal of travel. Her prospective boss has all but offered her the job and is expecting a commitment from her within a week. She wants the job and feels she is prepared to do what it requires, but she's hesitant to disclose such personal information. Should she tell him about the pregnancy or not? With commentaries by Mary B. Cranston, the firm senior partner at Pillsbury Winthrop Shaw Pittman, and Michael Hamilton, a partner at Ernst & Young. -
Firstwell Corporation and the Production Mandate Question
Two facilities owned by large U.S.-based multinational enterprise (one in Canada, one in the United States) are competing for a regional manufacturing and distribution mandate. The head of Firstwell's global operating committee must decide whether the proposal from Firstwell Canada is best not only for the Kingston, Ontario plant but also for Firstwell Corporation worldwide. -
Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue
The case takes place in Peru in the aftermath of the worst mercury spill in history by a transportation contractor for Newmont Mining Corporation. BHP Billiton, which has no connection to Newmont, but is affected by increased hostility toward mining companies, enters into an agreement with Oxfam to conduct training on sustainability and "the impacts of large-scale infrastructure projects on communities." Executives from the company's various international business units were selected to participate in the program, to be held each year in Orissa, India. One of the first managers selected to attend the program is the general manager for BHP Billiton's Tintaya Copper Mine. The case discusses the process, objectives, and outcome of the resulting dialogue between BHP Billiton and local inidigenous residents. -
Mining and Corporate Social Responsibility: Newmont Mining Corporation
The case takes place in Peru in the aftermath of the worst mercury spill in history by a transportation contractor for Newmont Mining Corporation. Newmont's senior vice president and chief administrative officer is sent to Peru to assess the situation. The subsequent audit revealed that Newmont's mining operations in Peru met neither U.S. nor Peruvian mining standards. "There were water issues, there were air issues, there were road issues, there were health issues - all arising out of the mining operation," the report concluded. The investigation also found that Newmont executives could be subject to "criminal prosecution and imprisonment" for the company's actions in Peru. More importantly, the company had violated its "social license" with local communities, putting in jeopardy its ability to conduct business in that country. -
Tiny Prints (A)
The Tiny Prints case describes the founding of the online stationery company in 2004, through its growth and evolution to 2007. The three cofounders bootstrapped the company from the beginning, primarily so that they could retain control over the decision-making and strategic direction of the company. While that decision allowed the cofounders flexibility and independence, it also led to capital constraints and a "good enough" culture that had a variety of positive and negative implications for the company. Ultimately, Tiny Prints was able to grow because of its very specific focus on the birth announcement, and later holiday, market, an emphasis on customer service and innovations in design and distribution. As of 2007, the founders faced questions regarding their future growth strategy, particularly given increasing competition in the market, and were at an inflection point where they needed to consider the important decision of bringing in outside capital. Part B of the case explores the management team's decision to move forward with a purchase offer from Shutterfly or to maintain control of the company and continue to grow organically. -
First Quantum Minerals vs. Eurasian Natural Resources
The case describes the battle between First Quantum Mineral and Eurasian Resources over mines in Democratic Republic of Congo. After FQM's license to operate was revoked by the government of the DRC, Eurasian bought the rights over the mines that were previously under FQM's control raising questions about the effectiveness of corporate governance at Eurasian. -
Reawakening the World's Most Famous Office Building: Economics behind a Groundbreaking Energy Efficiency Retrofit
This case highlights a recent and important type of new sustainability project for existing buildings commonly referred to as an integrated energy retrofit (IER) project. Anthony Malkin of Malkin Holdings, owner of the Empire State Building (ESB), acknowledged the importance of making the existing building stock, particularly in New York City, more energy efficient, as it comprises a large part of the real estate in most cities. Taking a bold leadership position, Malkin vowed to make the ESB the most energy-efficient, sustainable, "green" pre-war office building through an IER project that examined several facets of the building's systems, operations, and tenant behaviors. In addition to making the ESB a green icon in Manhattan, Malkin also stated the importance of making the project transparent and economical so other pre-war buildings could copy the model. This case study examines in depth the process that Malkin Holdings underwent in attaining its goal of establishing the ESB as a leader in existing building sustainability. -
Supply Chain Structural Change: Pharmaceutical Industry
The case investigates the impact of the increasing trend of pharmaceutical firms to outsource core research activities to biotech firms and other contract research organizations. The fluid nature of supply chain design in evolving industries is highlighted, and robust supply chain policies to respond to this evolution are proposed. -
The Bullwhip Phenomenon in the Management of an Oil Refinery
The case examines the impact of variability in demand and the supply chain on the operations of an oil refinery. The impact of external financial metrics by other stakeholders in the refinery is discussed, and policy measures for the improvement of the operations of the oil refinery are proposed. -
Stonestreet Farms: Making a Business in the "Sport of Kings"
By the early 21st century, the economics of thoroughbred horse racing in the United States was backwards - owners invested about four times as much money into the sport than the total amount of purse money available. Owners raced their horses as early as possible, and for as short a time as possible to prove that they were valuable for breeding-then sold them to breeding operations. The industry relied heavily on new entrants who had money from outside horse racing to buy and race their foals. Stonestreet Farms was founded by Jess Jackson, a billionaire wine entrepreneur, who invested more than $200 million in the sport. Unlike most in the horse racing business, Stonestreet was involved in both training and racing horses and in breeding. Two of its horses, Curlin and Rachael Alexandra, won the coveted North American Horse of the year for three consecutive years, from 2007-2009. Both later became part of Stonestreet's breeding operation. This case discusses the challenges facing owners and breeders in the North American thoroughbred racing industry. It can be used as a companion case to SPM-49: Del Mar Racetrack: Reinventing the Horse Racing Fan Experience, which focuses on the industry from the perspective of race tracks.