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Google Inc.
The case 'Google Inc.' describes Google's history, business model, governance structure, corporate culture, and processes for managing innovation. It reviews Google's recent strategic initiatives and the threats they pose to Yahoo!, Microsoft, and others. It also asks what Google should do next. One option is to stay focused on the company's core competence, i.e., developing superior search solutions and monetizing them through targeted advertising. Another option is to branch into new arenas; for example, build Google into a portal like Yahoo! or MSN; extend Google's role in e-commerce beyond search, to encompass a more active role as an intermediary (like eBay) facilitating transactions; or challenge Microsoft's position on the PC desktop by developing software to compete with Office and Windows. -
New Balance: Developing an Integrated CSR Strategy
"This case focuses on New Balance - a privately held company and the fourth largest athletic footwear manufacturer in the world. Founded over 100 years ago, New Balance has a strong social responsibility culture and mission established by its owners. Its commitment to employees, for example, was expressed through maintaining domestic manufacturing in the United States (the only large footwear manufacturer to do so presently) and avoiding layoffs in the deep recession of 2007-2009. In the late 1990s, the company established the Responsible Leadership Steering Committee to address human rights issues in overseas factories. Throughout the years, private ownership had allowed New Balance to take risks and make choices that publicly held companies might not have been able to do; at the same time, private ownership also meant lower pressures to disclose social and environmental performance. The owners were also very "humble" and hesitant to talk aloud about social responsibility. As a global player, the present challenge for the company has become to move corporate social responsibility (CSR) to the next level - from "doing what's right" to fully integrating CSR into the business strategy. The overall goal of the case is to use the provided information from a comprehensive company assessment to identify a few key areas where New Balance can focus on and demonstrate industry leadership while also supporting the bottom line. A set of key questions is included at the end of the paper to guide students' discussion around critical issues for building an integrated CSR strategy for New Balance, considering its culture, structure and present level of corporate citizenship management." -
Gobi Partners and DMG
Thomas G. Tsao, founding general partner of Gobi Partners, an early stage venture capital firm in China, must decide how to manage his firm's largest investment after the departure of the CEO. Tom has temporarily stepped in as CEO, but finding a replacement with the necessary technical and language skills is difficult. Moreover, the company is facing significant challenges in winning business and restructuring its own operations. Should Tom stay on as CEO? Revisit one of the candidates who had withdrawn? Try harder to sell the company? At what price? The case provides an opportunity to discuss the issue of active investment management in an emerging market from the perspectives of the many stakeholders involved. -
Kyle Evans at Ruffian Apparel: Staffing a Retail Establishment
Ruffian Kelowna, one of 19 British Columbia Ruffian Apparel locations, is under performing. Recent management turnover and low unemployment in the region have left Kelowna short-staffed and in need of a new store manager to take over for the interim manager. Both sales and performance results are far below acceptable levels, and the store appears to be floundering. The newly hired B.C. regional manager for Ruffian Apparel is looking into the problem and needs to report back to Vancouver with his recommendations. This case can be used to demonstrate how different theories of motivation might apply to goal-setting and compensation plans. The case illustrates how an inappropriate or poorly structured compensation plan and motivational goals can lead to ineffective and detrimental results. Students who immediately attribute the problems of the case to the lack of a store manager will fail to explore the potential for increasing employee motivation and productivity across the board. -
Hongxing Auto Sales and Service Co.
The Li family, the sole owners of Hongxing Auto Sales and Service, are ready to sell the company. They must determine how much the business is worth and the best method of negotiating the sale of the business. This case deals with the valuation of a small, privately-owned business, and will develop students' skills in sizing up a business and placing a value on a business using a variety of methods, including liquidation value, discounted cash flow and price-earnings multiples. -
Change at Pfizer: Jeff Kindler (A)
Pfizer Inc., the largest research based drug company in the world, is faced with multiple challenges. The key challenges include fierce court battles with generic companies over the patents of Lipitor, reduced productivity from research and development, and a changing external healthcare environment globally with growing importance of emerging markets. These challenges are set within a business environment itself characterized by multi-level change and uncertainty. The case dwells on the newly appointed chief executive officer's strategy in transforming a giant pharmaceutical organization by changing the business model, the strategy and structure to foster organic growth, as well as to explore external opportunities. Does Pfizer need more change or is it merely a matter of time before the new strategy generates results? -
RBC - Financing Oil Sands (A)
Under pressure from the Rainforest Action Network to make their lending policies more sustainable, executives at the Royal Bank of Canada who deal with issues of corporate citizenship and sustainability must decide whether to continue financing companies involved in extracting oil from the tar sands of Alberta, Canada. The case asks students to consider the following questions: 1) Should banks lend to any business or industry the government deems to be sustainable? 2) What are the risks of lending to businesses some stakeholders deem unsustainable? 3) How should banks respond when pressured by an interest group? 4) How does a bank decide what is sustainable lending practice? The supplement B case RBC-Financing Oil Sands (B), product number 910M16, is also available. -
Transforming ASUSTeK: Breaking from the Past
What happens when an original design manufacturer (ODM) firm tries to transform itself into a branded goods seller? The case traces the evolution of ASUSTeK from a motherboard supplier, to an ODM of desktop and notebook PCs, through its split into three companies that separately pursue the branded business, ODM, and contract manufacturing. Chairman Jonney Shih has to not only confront the challenges of brand building, but he must also build new organizational capabilities in ASUSTeK, while Pegatron struggles to win business from ASUSTeK's former customers and now competitors. The case offers an opportunity to apply the lens of disruptive innovations to a discussion of outsourcing, examining the consequences for firms like HP and Dell that have outsourced most of their computer product design to ODM firms like ASUSTeK, only to watch them morph into competitors. Students can also examine how organizational resources, processes, and values can shape or limit its ability to move into new areas. -
Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy (A)
Aubrey McClendon, founder and CEO of Chesapeake Energy, was, according to Fortune Magazine, the highest paid U.S. CEO in 2008 receiving over $100 million in total compensation. McClendon received this compensation despite a significant drop in the company's stock price and financial performance during the year. The (A) case addresses the specifics of the compensation and the rationale for the compensation from the perspective of Chesapeake's board and its compensation committee including McClendon's role in consummating several joint ventures, which the board and committee believed positioned the company for future growth in the relatively young industry of unconventional natural gas exploration and extraction. In addition, the (A) case describes the role of the compensation committee and the company's executive performance measurement factors. -
SVEDKA Vodka (A)
Suitable for both MBA- and undergraduate-level courses such as integrated marketing communications, this case traces a product from idea to established, successful brand. A spirits industry executive perceives a gap between the under-$10 and the $25-and-up "prestige" vodkas. Could a midpriced vodka capture some volume from each of those markets? Decisions on pricing, target, distribution, branding, and promotion are considered in the A case. The B case (UV4285) presents the results, which include the important benchmark of one million case sales by 2006. It also presents the founder's assessment of which initial decisions were most critical and explores the new choices he faces, including changes to the distribution channels and additions to the product line. -
Akbank Part A: A Crisis Is a Terrible Thing to Waste
This case looks at the provision of financial services both when a banking system is weak and inefficient and when it is liquid, solvent, and highly competitive, seen through the lens of Akbank's adaptation to the evolution of Turkey's banking sector. Of special interest are the effects on financial depth and financial inclusion of a commercial bank's efforts to align its internal capabilities with external opportunities. This case is accompanied by a video supplement that provides insights into contemporary Turkey as one of its most successful banks explores options for future growth. Images of urban and rural Turkey, cityscape and campus life, are viewed through the lenses of both Akbank's management and independent observers. Includes vignettes of bank customers and "unbanked" businesses. -
Shenzhen Filtroil: Finding Balance
Jeremy Leahman, president of Filtroil, Inc., and Albert Randolph, founder of the firm, had partnered with a supplier in China to ramp up the manufacture of their China-based filtration system and start a new zinc alloy venture. They opened a new factory in Dongwan that was a merger between Shenzhen Filtroil and their supplier, Liu Li-whose own factory was on the verge of bankruptcy. Liu would own 10% of the merged factory and Shenzhen Filtroil would own the rest and acquire all of the necessary equipment. The two businesses filter and zinc would operate under the same roof. One year later Leahman was on a plane headed for China to hash out problems with Liu, who had demanded a monthly raise for himself and his wife, a new company car, and an increase in profit sharing. He had also threatened to delay product shipment to the United States if his conditions were left unmet. Qian Kai Nam (Qian) and Shea Kai Young (Thomas), who ran Shenzhen Filtroil and were in on the zinc partnership, believed that Liu's behavior put the entire business relationship at risk. The case reveals options Leahman could take to manage the situation. The case is suitable for use in organizational behavior, human resource management, and strategy classes at the MBA and executive education levels. The material can be used to exemplify the challenges of changing a U.S.-based company into a global competitor. -
Genzyme: The Synvisc-One Investment Decision
Executives at biotechnology firm Genzyme are debating funding a clinical trial for a new version of a medical device called Synvisc. The trial is expensive and the odds of success are not high, but the upside is substantial. The case presents a common business question: invest or not? The case forces students to wrestle with a number of complex issues and analyze the financials of their decisions. -
Dell Inc.'s Production System
This mini-case details the history of Dell and its made-to-order production system. From a simple computer assembly and delivery company, Dell grew to dominate the PC industry by leveraging information and focusing on efficiency throughout the supply chain. However, changes in consumer tastes and supplier cost structure led to the decline of Dell's performance in 2005. What happened? This case is included in Module 2 of the course Business Thought & Action. -
IFP, Indonesia
IFP, Ltd. is a Europe-based multinational mining and minerals company contemplating an investment to produce forest products in Indonesia. The primary case decisions are 1) how to assess political and operating risk, 2) how to integrate economic and political risk analysis in order to select among the alternative spatial and operating configurations, and 3) how to manage operations in order to minimize risk. This case is an effective vehicle for discussing the complex issues involved in operating in the difficult, uncertain political environment of a developing country. -
Are We Ready for an Automotive Plant?
The city of McAllen, Texas and its partners have worked on attracting an automotive assembly plant to the region for over fifteen years. Under the North American Free Trade Agreement (NAFTA) provision, this region enjoys the advantages offered by both sides of the Mexican-U.S. border. Even during the economic downturn of 2007 to 2008, McAllen experienced a lower unemployment rate compared to other cities in the United States. One of the primary reasons was its close proximity and economic ties to Mexico. Lower labor cost, a right-to-work state and proximity to Mexico were some of this region's strengths, while a high illiteracy rate, limited numbers of automotive suppliers and small workforce were among its weaknesses. Based on publicly available data and aggregate score evaluation methods, McAllen is compared to other potential sites. The case addresses a wide range of issue regarding site selection factors within the automotive industry. Teaching objectives include: 1) to examine essential factors for site location of different industries, including the automotive industry 2) to evaluate the potential sites based on a quantitative method, such as the relative aggregate score 3) to understand other qualitative factors that can affect the decision. The case is suitable for courses and workshops concerning operations management, supply chain management, production management, project management, decision science and management science. Exhibits can be omitted for graduate and executive levels, requiring the students to research and come up with their own factors. -
Credit Suisse Group: Managing Equity Research as a Business
In 2003, in the midst of industry turmoil and company-specific challenges, Stefano Natella was named Global Head of Equity Research at Credit Suisse. Over a six-year period, Natella implemented and refined a new methodology for valuing equity research analysts, both individually and as a collective unit. Natella's system, known as the 'Scorecard' was also used as the basis for compensating, hiring, and promoting analysts. Over time, the Scorecard was refined to allow Credit Suisse to improve its customer service efforts in a way that maximized profitability for the firm. -
Twitter
Twitter is a micro-blogging company that allows users to send short text updates to others. The site is used by people, including celebrities, government officials, and businesses. It helps to raise money for non-profit organizations and provides first-responders with information during a natural disaster. Even though almost 10 million people visited the site in early 2009, the site had no strategy for monetizing the traffic. The case allows students to examine potential monetization strategies for Twitter. -
Ledina Lushko: Navigating Health Care Delivery
Ledina Lushko was diagnosed with Adrenal Cortical Carcinoma in 2008 and sought care at a highly regarded medical institution in the United States. This case lays out her journey through the health care system in detail and all of the effort involved in finding appropriate care. It is meant not to illustrate good or bad care, but to reflect on the nature of the current health care delivery system and serve as a starting point for discussion. -
BCE Inc.: In Play
BCE Inc. (BCE), one of Canada's leading telecommunications companies, had struggled under its weak stock price performance and low valuation relative to its comparable peers, and faced increasing pressure from its largest shareholder, the powerful Ontario Teachers' Pension Plan (Teachers'). On March 29, 2007, it was reported that private equity firm Kohlberg Kravis & Roberts (KKR) had held informal meetings with BCE executives in the hopes of launching a friendly takeover bid for the company. This essentially put BCE "in play" with the leadership team confirming, on April 17, 2007, that it would be reviewing its strategic alternatives, which included discussions with various Canadian-led consortiums to explore the possibility of a privatization. As the deadline to the bid date drew closer, four contending bidding consortiums emerged, including three consortiums of financial buyers and one strategic buyer. The case provides a good opportunity to discuss private equity investments as well as valuation in a mergers and acquisition context. This case is a follow-up to Ivey case "BCE Inc.: Facing the Future," product # 909N15.