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This case discusses the concepts of broadband and its adoption in developing and developed countries around the world, specifically in Indonesia. The telecom sector in Indonesia had under-developed infrastructure, and been dominated by two monopolies, PT Telkom and PT Indosat ("Indosat"), for many decades until September 2000, when the government opened up the sector to competition. The market has subsequently become highly competitive. This case highlights the strategies proposed by Indosat to succeed in this market, with broadband penetration being identified as one of the primary revenue-generating and growth areas for 2008. As is the case with most developing countries where the fixed-line infrastructure is minimal, the plan is for broadband technology to evolve through wireless platforms. This case can be used to understand Indosat's proposed strategy to promote broadband, particularly wireless broadband, in Indonesia. It can also be used to discuss the general issues that emerge in providing telecom services in a developing country, particularly where a formerly government-owned monopoly player faces an increasingly competitive market. The case provides students an opportunity to discuss the best way to implement the company's proposed strategy, given its competitive advantages and the constraints imposed by the external political, regulatory and economic environments.

Grocery store chain Winn-Dixie had rapidly expanded in an effort to become a national retailer, and by 1999 it had more than 1,000 stores. The company began manufacturing its own products, reasoning that by owning more of the supply chain, it could offer the customer less expensive options. With its new geographic focus and manufacturing facilities, Winn-Dixie attempted to secure a position as a low-cost provider with a national presence. Instead of improving the company's position in the market, however, this strategy crippled both the short- and long-term prospects for Winn-Dixie. The company paid a high premium to expand and increased its leverage without ever realizing the purposed synergies. In fact, there were dis-economies of scale because the distribution, marketing, and administrative costs had risen along with the increased revenue. The expansion and inefficient manufacturing added complexity to its distribution network, and with a greater debt load and less cash, the company was unable to reposition itself in the market when its low-cost provider strategy failed. Not only was the company unable to pursue other opportunities but it also did not have the cash to properly maintain many of its existing stores, which quickly became run down. Winn-Dixie was stuck as a general grocer with few options at a time when the industry was rapidly evolving. Following faulty strategies of expansion, supply chain changes, and increased debt, Winn-Dixie declared bankruptcy. Students will take the view that Paul "Flip" Huffard, lead consultant from Blackstone LP, had in determining the valuation and new capital structure of the company. These decisions would be critical, as they affected what each creditor class would receive and whether Winn-Dixie could emerge from bankruptcy.

Under pressure from the European Union, which had admitted Italy to the "Eurozone" hesitantly, on condition that the country control its deficit spending and reduce its high public debt, the central government in Italy initiated dozens of cost-cutting programs in the late 1990s and early 2000s. One such program aimed to economize, to the tune of billions of euros, on public procurement of goods and services. The program's first priority was to identify products and services bought widely by public agencies at every level of government, and consolidate them into nation-spanning mega contracts. By aggregating public sector demand in this manner, analysts had reasoned, Italy's public sector could greatly increase its market leverage and win big discounts from suppliers. This appraisal proved correct-but also politically explosive. In November 2003, Italy's Minister of Economy and Finance ordered a temporary halt to the program to give political and administrative leaders a chance to figure out what to do. This decision-forcing case allows students to consider how Italy might have averted this political backlash, and challenges them to propose how the government might adjust the project in ways that address the concerns of the critics, but still allow it to improve procurement efficiency and reduce its costs. HKS Case Number 1925.0

Hearts On Fire, a successful branded diamond producer, established the position of Brand Development Manager (BDM) to build the company's presence, sales, and relationships with its retail customers. After 1 year, the CEO, CFO and President must evaluate the impact of the BDM on retail customers, the type of person required to be successful in this position, internal coordination issues with the company's sales force, and the financial returns versus other uses of capital for the company. The case raises issues in aligning business strategy and sales management systems, motivating and managing resellers, people selection, and financial analysis of alternatives.

Tata Consultancy Services (TCS), a leading outsourced software services provider based in India, must decide whether to bid on a high-profile government project within India. The project, if completed successfully, would mark another step in TCS' progression from a provider of low-cost technical resources to their goal of becoming an end-to-end technology enabled services provider. However, the project was not only complex but also presented considerable hazards to the firm. The case permits the exploration of how and when companies in developing countries can leverage their domestic markets to build capabilities to serve global customers, by using their home market as a base for learning. The case is also designed to examine strategies (more generally) for such organizations to climb the value chain, and access higher-margin businesses with powerful incumbents.

In the spring of 2007, a vacationer is upset by the poor hotel experience he has had on the island of Guam. At the onset, the reasons for the bad experience seem to point to seemingly minor issues: bad management, poor service and old rooms. The value of the case lies in the analysis of the symptoms and arriving at the root causes of the problem, particularly the profit maximization strategy of the hotel's owners in a mature industry. The case uses a different method of analysis, starting with micro indicators and moving to macro indicators: the analysis of symptoms, arriving at root causes, determining company strategy and finally assessing the company's position using the Product Life Cycle Model.

HCL Technologies, a major Indian IT services company, rolled out a radical new strategy, "Employee First, Customer Second" (EFCS) in 2005. The strategic goals for EFCS were to create a unique employee organization, drive an inverted organizational structure, create transparency and accountability within the organization, and encourage a value-driven culture. The case describes the different aspects of this program, and its impact on employee engagement, customer experience, financial performance, and innovation in 2005-08.

In the wake of slumping sales and sagging profit margins, a leading manufacturer and retailer of high-end women's apparel, Harrington Collection, must evaluate an opportunity to expand into the high-growth active-wear market. Sara Huey, Vice President of Strategic Planning, calls on two of her colleagues to help perform a comprehensive market evaluation. They must analyze the financial implications of the opportunity, assess trade and competitor reactions, consider the risks, and determine whether the Vigor division of the company will be able to successfully launch and manage the new product line.

Marketers are often tasked with exploring the factors that impact the long-run adoption of a new product or technology. The new product under consideration here is the drug-eluting stent: a device which props open a clogged artery to the heart and then releases medication that reduces the risk of artery re-blockage. In light of recent medical and competitive trends in the market, the case prompts students to examine the future adoption of drug-eluting stents as well as to consider the potential marketing actions to be taken by Medtronic for ENDEAVOR - a newly approved stent that will hit the market in 2008.

Columbus Tubing must choose to improve an old technology (steel) or to develop a new material (carbon fiber). The decision must take into account a complicated context: increased demand for the "old" steel products made in Italy, increasing power of carbon fiber manufacturing partners in Asia, growing wage rates in Asia, and high wage rates in Italy. Two plans have been presented to the CEO, Antonio Colombo. The first is to push development of all of the company's technologies, perhaps even seeking new markets for them. The second is to rationalize operations and to redirect R&D resources to marketing of stylish, lower-tech bicycles. The company's future hangs in the balance.

When Robert A. "Bob" Eckert was named Chief Executive Officer (CEO) of Mattel Toys in May 2000, he found a company which many considered lost. Its former CEO, Jill Barad, who had brought Barbie back from the toy-dead in the 1990s and CEO since 1997, had been forced out months before as the company's earnings had plummeted. The company was now losing roughly $1 million per day, and Barbie, the cornerstone of the company's sales and profits for a decade, was aging. Mattel's share price had plummeted from $46 per share in 1998 to a current low of $10. Bob Eckert and his team had moved quickly to slash operating costs, divest massive money losers, refocus on core products and brands, all in the hope of reviving profitability. The financial and operational measures taken had been rapid and, in some cases, brutal. The market had been patient with Bob Eckert, but now, in the summer of 2004, four years after his entrance, it was time to review accomplishments and renew and revise expectations. The toy industry was infamously short-cycled, and many worried that Barbie, Hot Wheels, Fischer Price, and American Girl would no longer provide the growth Mattel needed. The business mantra of profitable growth was very real to Bob Eckert and Mattel.

This case examines currency risks faced by Microfinance Institutions, and evaluates strategies to hedge them in countries with pegged currency regimes and no derivatives markets. An MFI based in Western Samoa borrows in different currencies like the US dollar and the New Zealand dollar is worried about the additional variability in its cash flows due to unexpected currency fluctuations, and wants to explore strategies to hedge this risk in the absence of a derivatives market for the Samoan Tala. It seems to the president of the company that borrowing in different currencies, in proportions equal to the weights of the currencies in the basket peg, would reduce the currency risk. He wants to estimate the exact weights of the currencies in the basket peg and measure the reduction of currency risk using this strategy.

The case examines the tools a manager can use to keep her project on track and manage conflict and tension as Adobe prepares to launch Creative Suite 3, the biggest software release in the company's 25-year history. The protagonist, Yvonne Murray, is a group program manager at Adobe and responsible for coordinating the integration of her business unit's product-Device Central-in Creative Suite 3. Murray is copied on an email that warns the Device Central product team that Device Central may be pulled from the Creative Suite 3 marketing materials and from the launch entirely because it was in danger of missing a deadline. Murray wonders if and how to respond to the email that was addressed to her Device Central colleague, group product manager Carol Linburn.

The case covers and analyzes the major players in the Electric Car Industry, with a focus on the United States and China. The case looks at start-ups and incumbent automakers, battery makers, retrofitters, utility companies and the government. In 2009, the electric car industry was poised to take a giant leap forward, with start-up companies a step ahead of large automakers. Venture capital firms were pouring hundreds of millions of dollars in promising electric car and Plug-in Hybrid (PHEV) start-ups, while existing companies were pouring billions of dollars into electric car and PHEV research. There were also companies that retrofitted existing cars, turning them into Plug-in Hybrids. The case also examines the role of the U.S. and China's government in promoting the electric car industry by providing grants and loans to electric car and battery makers, as well as giving subsidies for consumers to buy electric cars. At the same time, battery makers were racing to build enough lithium-ion batteries for automobiles to meet the expected demand. Most batteries were developed and manufactured in Asia. The electric car industry also required a vast infrastructure of charging stations in each country to enable electric car and PHEV owners to charge their cars outside their homes. Electricity companies were taking an interest in the industry, and began partnering with automakers to test how extensively electric cars used the grid. The case also explores how internal combustion engine makers were striking back with new engines that were smaller, more fuel efficient and more environmentally friendly.

The chief executive officer of an oil and gas company must decide whether he wants to invest heavily in reducing greenhouse gases. Specifically, Suncor Energy must evaluate whether it should invest $425 million in carbon capture and storage or wait until there is greater certainty in the political, social and business environment. The case will help students develop skills of analyzing business decisions under higher environmental uncertainty, especially when the outcome is a long-term goal. Further, the issues presented in the case open up discussions about climate change and the interaction between business actions and societal expectations. There is also an opportunity to speak about the interaction between business and public policy.

Jennifer Parks, a newly appointed business development officer at PillarPoint Home Loans, is given a mandate to identify and develop a new-growth initiative for her company, a small mortgage division of one of the largest U.S. credit card issuers. The company has more than 60 million accounts worldwide and a reputation as a leader in direct marketing and online services. After studying the industry, Parks identifies what she believes is a high-potential growth opportunity: a home mortgage product aimed at high-net-worth customers of the parent company. As she gets ready to present her idea to PillarPoint's executives, what should she propose as the next steps for moving the initiative forward?

In November 2003, John Fruehwirth, a principal at Allied Capital, was considering a $20 million mezzanine investment in growth capital for Elephant Bar, a California restaurant chain. Elephant Bar had had some initial success in California but now Allied's investment committee had to wrestle with the question of whether the restaurant concept was strong enough to travel and become a national brand or whether it was mainly a "California Concept." And if the concept was strong enough to travel, would Allied Capital be able to meet its underwriting standards? Because Elephant Bar is a company with aggressive growth plans, it is significantly riskier than traditional mezzanine investments. The case can be used in courses on venture investing to illustrate another funding source available to young companies. Traditional mezzanine financing is often used to provide a portion of the funding for late-stage investments, such as leveraged buyouts. The case can also be used in courses on private equity to illustrate the perspective, risk mitigation strategies, and return expectations of mezzanine investors. This case has a teaching note and a spreadsheet, which are available to registered faculty members.

This case presents an interesting acquisition opportunity that SunTrust considered in 2004: National Commerce Financial, a large commercial bank, based in Memphis, Tennessee, with a strong footprint in North and South Carolina. The case shows how capital ratios are often a key component in the bank-merger process, and it allows for the evaluation of whether Phil Humann (SunTrust's CEO) could justify a multi-billion-dollar acquisition that had the potential to deplete capital, even if the deal were accretive to earnings.

The "TRX, Inc.: Initial Public Offering" case provides comprehensive coverage of a firm's decision to undertake an initial public offering (IPO) and the process of going public. The case follows the sequence of events from the company's incorporation in 1999 through the completion of an IPO in September 2005. In addition to raising capital, the TRX IPO case also includes consideration of another motivation for going public. At the time of its incorporation in November 1999, TRX attempted to go public but in the ensuing dot-com collapse, the IPO was never completed. In response to the failed IPO, TRX president and CEO, Trip Davis, turned to strategic investors to raise $20 million in a note convertible into equity at $11 per share. Although Davis had hoped the strategic investors would provide guidance and business opportunities for TRX, they never materialized. By 2004, he had come to believe that the largest strategic investor, Sabre, Inc. was not working in TRX's best interest. Thus, the IPO is motivated by a twofold purpose: to raise money and to provide for a strategic reorganization of the firm's ownership structure.

This case concerns Gene Cattie Enterprises (GCE), a manufacturer of a variety of fabricated metal house accessories, including mailboxes and window boxes. Founded in 2001 by Gene Cattie, a former HR professional for a large diversified financial-services company, GCE manufactures window boxes in five basic colors in a small plant in central Virginia. Historically, GCE has competed by providing a low-cost, high-quality product, sold mostly to specialty stores and catalog retailers. Competitive pressures have recently made delivery lead time an issue. Cattie believes that if he can significantly reduce the manufacturing lead time, he will be able to respond to market fluctuations as well as provide a line of custom-made window boxes. He wonders whether he can improve the effectiveness of his window-box production operation. As a former HR professional, he is unsure what his choices are. He is even unsure of the measures he should use to evaluate his decisions. He is, however, sure of one thing: his goal is to make money. His gut tells him that he is not making as much as he could.