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  • CA Technologies: Bringing the Cloud to Earth

    Adam Famularo, general manager, Cloud Computing business, CA Technologies, and David Dobson, WVP and group executive, Customer Solutions Group, were preparing for a presentation on communicating and positioning CA Technologies' new strategy for cloud computing. Analysts had voiced concern over several 2010 acquisitions, and highlighted CA Technologies' need to clearly state its strategy and objectives and identify a compelling way to position and differentiate its cloud offerings. Industry pundits claimed the mainframe- CA Technologies' bread and butter- was dead and would go away. Famularo knew CA Technologies' line of products was anything but outdated, having evolved to help enterprises manage and secure their increasingly complex IT environments. In 2010, analysts reported that CA Technologies' mainframe business was strong and accounted for over 60% of the firm's revenues and a majority of its profits, with no sign of slowing down. But given the attractiveness of CA Technologies' current mainframe and distributed business lines, how firmly would the company back the emergent cloud business? Should CA Technologies' cloud business be positioned as an incremental, complementary addition to its mainframe and client-server businesses or should it be framed as a disruptive and entirely revolutionary technology?
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  • Health Insurance to the Base of the Pyramid

    The case describes a unique insurance scheme called Krupa Arogya Suraksha, promoted by the Shree Krishna Arogya Trust (Trust). The product was designed with the aim of extending basic health coverage to the "base-of-the-pyramid" (BoP) population at an affordable premium. The services were provided by Shree Krishna Hospital, of which the Trust was an associate. The Trust was looking at a win-win situation: in providing modern health services to a larger, lower-income group, the facilities and infrastructure of the hospital would be better utilized. In the five years since its creation, membership in the scheme had increased threefold to 43,000. These members/consumers accounted for 13 per cent of patients treated by the hospital. Thus, the twin objectives of extending affordable healthcare to the lower-income segment and increased utilization of the facilities at the hospital were achieved to some extent. However, the Trust was not able to meet the cost of the health care offered under the scheme from the premiums collected and was dependent on donors to absorb the shortfall. The Trust's management was concerned about the sustainability of such an arrangement and was looking for ways to make the scheme pay for itself.
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  • South Side Restaurant's Low Carbon Wine List

    The owner of South Side Restaurant, a mid-upper class restaurant located in Chicago, Illinois, must decide which of the three bottles of wine to add to the restaurant's wine list. Given the restaurant prides itself on its environmental and social positioning and that its consumers have come to expect performance in this area, the wine's carbon footprint represents an important decision criterion. South Side Restaurant is a for-profit restaurant and the owner must balance this environmental criterion with short- and long-term financial return.
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  • Siemens CerberusEco in China: Introducing low-frills products in a high-quality company

    The case is set in November 2007. Matthias Rebellius, head of the business unit Fire Safety and Security Products, has to make a decision about the China strategy for the fire systems unit. Siemens has a very strong position globally in fire systems. Especially in developed markets, in the so-called M1 segments, Siemens is often number one or two. But worldwide and especially in China, the so-called M2 and M3 markets (Siemens terminology) had strong growth, but Siemens was not very well positioned in these segments of the market. The case begins with a short introduction outlining the situation. It then gives a detailed background on Siemens, especially the operating division Building Technologies (BT), and within BT the business unit Fire Safety & Security Products (FS). The case illustrates that the BT division was mainly active in mature, developed markets with slow growth rates. At the same time, there was an aggressive goal of achieving annual growth rates of more than five percent with an EBIT margin of 7 to 10%.
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  • Toyota: Accelerator Pedal Recall (A)

    In January 2010, global automotive manufacturer Toyota faced the task of notifying customers of a recall that involved a faulty accelerator pedal on 1.7 million vehicles, spread across eight different models. In some cases the faulty accelerator pedal was found to stick in depressed position and be slow to return to the idle position, causing unintended vehicle acceleration. With the throttle stuck in the open position a vehicle would continue to accelerate while the driver is trying to brake and slow the vehicle down. Toyota had already come under intense public scrutiny in the previous year over an existing floor mat recall that affected 4.2 million vehicles. Lessons in the automotive industry had been learned the hard way from tire manufacturer Bridgestone. A public backlash occurred in 2003, with class action law suits against Bridgestone for faulty tires that caused some vehicles to roll over. In an attempt to reach the masses, Toyota created a letter to customers that was featured in major newspapers and on its own website. The letter released caused anger and outrage as Toyota stayed clear away from apologizing to consumers. Instead it talks about the companies 50 year heritage and how they are halting production to focus on fixing the vehicles that are on the road. Just days later Toyota drafted and released a second letter to customers. This time they attempt to use better language, but missed the mark on taking full accountability for the problem.
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  • ICICI Bank's Credit Card: Journey to Asian Leadership

    When ICICI, an Indian private bank, entered the retail banking market in the 1990's with little technology infrastructure, capital, and retail expertise, had expected it to succeed. Public-sector banks, holding 75 percent of deposits, were dominating the retail banking market, and foreign giants had cornered the market for high-net-worth individuals living in the major cities across India. With a strategy to offer credit cards to the middle class, abolish annual fees, and enter into partnerships with major retailers, ICICI quickly proved the skeptics wrong. Revenues per employee grew to over $9 million compared to about $3 million for the Bank of India and slightly below $160,000 for Standard Chartered. The lofty number one position was achieved by Vaidyanathan, ICICI's head of retail, and his team. Their progressive initiatives were focused on developing new products and improving consumer service experiences. As the 2008-2009 financial crisis tripled the percentage of nonperforming assets in the Indian banking industry, Vaidyanathan had to plan how ICICI would adapt to the new environment and maintain industry leadership.
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  • Making Balanced Scorecard Work: The Worldclass Lighting Experience

    In 2002, Worldclass Lighting launched an initiative to introduce the balanced scorecard into the Asia Pacific and Greater China regions, in order to provide a new management tool for its lighting business covering four perspectives-financial, customer, process, and learning and growth. The balanced scorecard ran successfully for a period of time until implementation issues surfaced that undermined its benefits, such as unquantifiable measures in target setting and the over-measurement of indicators. In 2009, a plan to terminate the balanced scorecard was presented to the Asia Pacific Chief Executive Officer ("AP CEO"). The AP CEO must now make a decision about whether to continue using the balanced scorecard.
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  • Teaching Excellence: Reflecting on What Makes Great Professors Great

    This short case presents two typical conversations surrounding the issue of classroom teaching excellence. One conversation is from a student perspective, and the other is from a faculty perspective. Both conversations take the reader to the point of articulating, based on their own college experience, the attributes possessed by the great professors they have had in class or that they have observed.
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  • Transportation National Group

    Consultant Tom Li, an expert on the airline industry's use of yield management, had been asked by two colleagues to speak with trailer-leasing client TNG about the technique, which incorporates customer segmentation and other steps to optimize pricing. Li felt unsure whether the technique would work in trailer leasing, a highly fragmented commodity business in which companies rent out semitrailers to customers needing to ship merchandise. In this case students examine the trailer-leasing industry and lease data from one of TNG's branches before deciding whether yield management should be introduced by TNG management.The case illustrates the application of the deterministic linear programming model in settings beyond airlines and hotels.
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  • Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture

    Jonathan Day, a recent MBA, is tasked with evaluating tax efficient divestitures for his company. Through his perspective, this case provides an overview of taxable and tax-free structures for corporate divestitures. Students will then analyze Disney's sale of ABC Radio, its portfolio of radio stations, to Citadel Broadcasting Corporation using a tax-free structure known as the reverse Morris Trust, and the tax advantages and financial ramifications of the ABC Radio sale for Disney, Disney's shareholders, and Citadel.
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  • IBM China Development Lab Shanghai: Capability by Design

    When IBM shifted from a traditional territory-based multinational organization to what it called a globally integrated enterprise, it established its headquarters for "Growth Markets" in Shanghai and "Established Markets" in New York. This positioned its China Development Labs (CDL) in Shanghai as a key platform for serving growth markets including the BRIC countries and other rapidly developing regions. Though quite young, CDL Shanghai had grown to become one of IBM's largest labs. The case examines IBM's early-mover establishment of its corporate research lab and CDL, and through the examination of three product development vignettes looks at the systematic approach taken to the development of lab personnel and capabilities.
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  • Is Sony Turning Around?

    Instead of adopting more commonly used standards that appeal to consumers' taste, Sony's traditional focus on its own technologies has trapped the company in the state of "Galapagos-ization" (garapagosu-ka) that segregates the company from global competition. Since the mid 1990s, the company has been struggling with unstable profit and sales in its core electronics business while it aggressively expands into the entertainment content sector. A number of restructuring strategies had been implemented, but the effect was not sustained due to various internal conflicts within the company. In mid 2005, a non-Japanese, Sir Howard Stringer, was appointed as the first Western CEO and chairman of Sony. Stringer pushed forward a series of operational restructurings and placed a greater focus on software and content development than on Sony's traditional business, hardware technology. Even though Stringer's change efforts had brought a blink of hope for Sony's comeback, the situation turned sour in early 2009 when the company announced its first operating loss in 14 years. While different voices about the problems of Sony arose and the leadership of Stringer was questioned, another round of restructuring attempts was pushed forward by Stringer. How could Stringer overcome the deep-rooted internal resistance that his predecessor had failed to overcome? What had gone wrong with the iconic electronics giant? Were all those restructuring and change efforts necessary and useful to Sony's turnaround?
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  • PremiumSoft: Managing Creative People

    PremiumSoft had been a competitive player in the SQL software market for 10 years. Like many software companies, PremiumSoft's business model required that it continuously evolve its current successful product lines through research and development. At the core of the business was its creative people: they were the company's largest asset. PremiumSoft had created a team-centric, informal work environment that promoted creativity and innovation and attracted the best candidates. As a small company, PremiumSoft had a mix of formal and informal controls when dealing with recruiting, retention, roles, and responsibilities. It had achieved success with hiring, retaining, and managing its current employees and wanted to ensure that it could maintain this success with future growth. In 2010, PremiumSoft's owners were looking to grow the business through the development of new software. This growth required an expansion of its staff by 25 percent and the addition of a new product line.
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  • The POSCO Way of Field Based Innovation

    POSCO is one of the largest and best steelmakers in the world. Since the construction of Pohang Steelworks in 1973, Pohang Iron and Steel Company ("POSCO") has grown continuously in the world's steel industry. But in the late 1990s, when the Asian financial crisis hit the Korean economy hard, the company began paying great attention to innovation as an important source of competitive advantage. Since then, POSCO has made every effort to promote an innovation-friendly environment: in 1999, it embarked on process innovation to build its innovation hardware, and in 2002, it adopted Six Sigma, an infrastructure for innovation, and finalised its manufacturing execution system ("MES") for effective decision-making. Even though the hardware and infrastructure for innovation were in place, the company needed to internalise the innovation in order to maximise corporate performance effectively. In 2008, the global recession and turbulent economic situation spread from America and dealt a serious blow to the company's innovation initiatives. Meanwhile, employees were exhibiting fatigue with the protracted innovation drive. POSCO's chief executive, Chung Joon-yang, is considering what the POSCO way of innovation has achieved since its takeoff in earnest in 2006. He must now make a hard decision on what additional measures the company must take to overcome the looming crisis.
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  • Kitchen Best: Ethics When Doing Cross-Boundary Business in Southern China

    Kitchen Best is a Hong Kong-based electrical-appliance company. The company has a manufacturing facility in China and sells its wares to customers around the world. Henry Chan, the newly appointed CEO, has ambitious plans for the business. However, a series of instances of misconduct and unethical behavior makes him realize that the business is suffering from a lack of internal control. What type of internal control mechanisms should he put in place to ensure the future success of the company?
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  • FIJI Water: Carbon Negative?

    Seeking to go beyond global best practices in reducing environmental impacts, FIJI Water, a premium artesian bottled water company in the United States, launched a Carbon-Negative campaign that would offset more greenhouse gas emissions than were released by the company's operations and products. The case examines the controversies surrounding this program as well as the program's impacts on the environment and FIJI Water's brand image. The company also faced decisions regarding how to best manage its relationship with the Fijian government, which recently dramatically raised imposed export taxes and could limit FIJI Water's access to water, its primary raw material. The case enables students to better understand the challenges of implementing an environmental strategy and of negotiating with parties that control raw materials, and invites discussion of the effectiveness of various approaches and the general lessons for the management of companies seeking to operate in an environmentally responsible manner.
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  • Reed Supermarkets: A New Wave of Competitors

    Reed Supermarkets is a high-end supermarket chain with operations in several Midwestern states. Meredith Collins, vice president of marketing, visits stores located in Columbus, Ohio, an important region with the largest market and the greatest impact on revenue growth. She is concerned about increased competition from dollar stores and limited-assortment stores offering very low, appealing price points. Reed's market research shows that as a result of the economic downturn, customer loyalty is dwindling and consumers are willing to go to multiple stores to get the best deals. Collins must decide whether to change the current marketing and positioning plan in an effort to increase market share to meet challenging corporate targets. Her options include retreating from price competition and focusing on quality or embracing more private-label brands and competing more aggressively on price. She can also maintain the current positioning and appeal to customers looking for a quality shopping experience. The case contains an implicit quantitative assignment that instructors can emphasize to the degree they choose.
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  • Innovation Strategy at Microsoft: Clouds on the Horizon

    Microsoft employs 90,000 people and its products affect millions of users around the world every day. Developing the next version of Windows or Office is easy for Microsoft, but the company has struggled when it comes to more radical innovation. Intense competition from Google, Apple, and others threatens a business model that has delivered tremendous success over 25 years. This case highlights the strategic challenges facing Microsoft and provides insights into the organizational, leadership, and operational issues that must be addressed in order to define a successful innovation strategy at one of the world's most well-known companies.
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  • Mandatory Environmental, Social, and Governance Disclosure in the European Union

    In 2011, the European Commission was deciding on how to best modify the existing European Union policy on corporate disclosure of environmental, social, and governance (ESG) information. Previous directives had recommended that European companies report ESG information, but now the EC was deciding if organizations should be required to disclose nonfinancial information. The EC had to determine what types of organizations would be required to disclose, which international framework would serve as a standard reporting guideline, and if ESG disclosure would be integrated with financial material in one annual report. This case outlines the history and trends of corporate social responsibility reporting to encourage a discussion around the decision points and implications of reporting regulations.
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  • Steering Monetary Policy Through Unprecedented Crises

    In early April 2008, economic conditions in Europe appeared to be deteriorating on almost all fronts: sales figures were falling, business and consumer confidence were slumping, forecasts for European growth were being revised downward, and inflation was rising. In fact, figures for the month of March revealed that inflation had reached an annualized rate of 3.5%, Europe's highest level since 1992. On top of these broad economic problems, the European financial sector-indeed, the financial sector worldwide-was in turmoil. By April 2008, global financial institutions had written down the value of their mortgage-related investments and other assets by at least $230 billion, and businesses around the world were complaining that it was ever more difficult to secure credit. In America, meanwhile, consumer confidence was falling, consumer spending had slowed to a near halt, and inflation had crept above 4%. In reaction to these dismal economic conditions, the Federal Reserve had steadily cut interest rates over a seven-month period, most recently lowering its key rate to 2.25% on March18. In sharp contrast to the Fed, the European Central Bank (ECB) had long held its key rate at 4%, where it stood when the ECB's Governing Council reconvened on April 10, 2008. Given both the market turmoil and the evident inflationary pressure, members of the ECB's Governing Council would have to weigh the available data extremely carefully as they decided whether to raise, lower, or maintain their benchmark interest rate. The significance of this decision could hardly be overstated, since it had the potential to send a strong signal about the nature of European monetary policy and the priorities of the ECB going forward.
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