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Worldcoo: Creating a New Market for Consumer Sustainability
In April 2022, Sergi (CEO) and Aureli (COO), co-founders of Worldcoo, a Catalan social impact tech startup that offers fundraising solutions for Non-Governmental Organizations (NGOs) projects through a round-up donation system, are considering options for scalability and growth. Since the "redondeo solidario" (solidarity roundup) was launched in 2017, the startup has contributed funding to over 620 (2021) projects of local and international NGOs, making it the leader in rounding-up donations in Spain. For Worldcoo, one of its key successes has been the establishment of B2B relationships with diverse merchants and payment service providers (PSP). With constant negotiation and searching, the startup has developed partnerships with large retailers such as Condis and Eroski supermarkets, and MasterCard. In spite of the global COVID-19 pandemic crisis that affected physical retail, the company managed to increase revenues from €1.2 to €2 million in 2021. With scalability in mind, Sergi and Aureli aim to reach €5-€5.5 million in revenue by 2022, which presents challenges and opportunities for Worldcoo's strategy. -
AMB and ProLogis: A Momentous Proposition
"AMB and ProLogis: A Momentous Proposition" provides a sequel to the story of AMB's experience in the Global Financial Crisis (GFC) that is outlined in case RE134: AMB Property Corporation: Navigating Treacherous Waters. It is now October 2010, the world economy is recovering from the GFC, and AMB Property Corporation (AMB) encounters an unusual opportunity. It has the chance to acquire ProLogis (PLD), AMB's top (and much larger) competitor. Ahead of the GFC, PLD had borrowed heavily to fund risky speculative development; now, post-GFC, the consequences of PLD's hunger for return persist, and the company is no longer the darling it once was among REIT investors. PLD's ailing stock price has created a possibility that the top two industrial REITs could merge (together ""NewCo"") to become the world's largest industrial REIT. NewCo would control over $44 billion of assets, boast a global footprint of nearly 600 million square feet of real estate, and own a significant presence across the world's prime logistics corridors. Hamid Moghadam, AMB's co-founder and Chief Executive Officer, sees significant benefits from a merger. He believes savings in corporate G&A, coupled with lowered financing costs, can exceed $100 million per year, and anticipates the deal to generate further synergies by deepening NewCo's customer relationships and providing a valuation boost for PLD's fund management business. However, Moghadam also recognizes the complexities to executing a successful deal. AMB would need to absorb PLD's lower credit rating, higher debt load (which came with a higher interest rate), and assets in lower quality markets that AMB had long avoided. Moghadam also knows that the starkly different cultures at AMB and PLD would make the integration process challenging, while also complicating the negotiation of deal parameters-especially whether to pursue a ""merger of equals"" or a traditional acquisition. Moghadam knows that AMB needs to pursue an opportunity with -
Rio Tinto and Juukan Gorge (A)
In May 2020, Rio Tinto, the world's second-largest mining company, destroyed a cave system in Juukan Gorge, in the remote Pilbara region of Western Australia. The caves were of exceptional archaeological distinction - thought to be the oldest site of continuous human habitation on Earth - and were of deep spiritual and cultural significance to the local Aboriginal community, the Puutu Kunti Kurrama and Pinikura (PKKP) people. Rio Tinto was reputed to be an industry leader on Aboriginal partnerships, environmental protection, and other 'social licence' issues. The cave blast was entirely legal. It had received government approval and was supported by a signed agreement with the PKKP people. Nonetheless, the destruction sparked global outrage. Rio Tinto was panned in the local and international media for disregarding cultural heritage. Furious investors and shareholders demanded executive accountability. The Australian government launched a parliamentary inquiry. Trust between Rio Tinto and Aboriginal communities was shattered. The destruction of Juukan Gorge was the culmination of a decision-making process that lasted over a decade. What happened during that period was not unusual for a company of Rio Tinto's size - lucrative contracts were negotiated, new details trickled in on the Gorge's significance, a new executive team was installed, and changes were made to the organisational structure. Combined, these events cast uncertainty over who knew (or should have known) crucial information, the extent to which stakeholder consent was obtained, and how the company's values had evolved. Students step into the shoes of Simon Thompson, chairman of Rio Tinto, as he considers how to respond to the crisis. First, he must decide who to fire as a demonstration of accountability. Three top executives are implicated in the blast, but none is clearly individually responsible. Second, and perhaps more importantly, he must determine what went wrong at Rio Tinto that allowed it to -
Private Label Strategy at Amazon: Conflict Between Ethics, Seller Relationships, And Profitability
The case opens with the current crisis for Amazon because of its alleged use of sensitive and confidential business information from third-party sellers on its platform to develop competing products under Amazon's private label (PL) brands, a practice at odds with the company's stated policy. Such allegations not only hurt Amazon's reputation as one of the largest e-tailers but also brought to light a larger debate about the right way to launch PL brands. Although Amazon claims to have prohibited its employees from using nonpublic, seller-specific data, it agrees to have used aggregate customer data like other brick-and-mortar stores to improve customer experience. However, the third- party sellers feel that Amazon's unfair practice of using their private information has hurt them, decreasing their return on investment and compromising their product innovations. Russell Grandinetti, who currently runs Amazon's international consumer business, faces the following dilemma: Should Amazon continue its PL brands? Because PL brands are important for Amazon's business, Grandinetti must find ways to build synergy with third-party retailers while developing Amazon's PL brands. Grandinetti needs to address these concerns in the next shareholder's meeting. -
Farm Laws 2020: Battle of Wits or More?
This case can be utilized to highlight the importance of the various aspects and stages of the change management process. The case follows the farmer's protest against the three farm laws introduced by the Government of India in 2020. It retraces the events that led the government to repeal the three farm laws on November 19, 2021. The case does not have a protagonist; however, role plays can be used in the class to draw attention to the points of conflict in the case. The case highlights the missteps of the Government of India at various levels in the change management process related to the three farm laws. The government's oversight in assessing the risk of resistance to the farm laws is also emphasized in the case. The case also identifies how the farm unions were able to initiate and sustain the protest for almost a year (which too, is an example of change management). The case at no point attempts to comment on or analyze the merits of the three farm laws framed by the Government of India. The case indicates that a change was imperative, but a judgment on the appropriateness of the three farm laws is beyond the scope of this case. -
Organic Mandya: Challenges in Scaling a Social Enterprise
The Organic Mandya (OM) case explores the journey of Madhu Chandan, a successful entrepreneur who gave up his comfortable life in the United States to return to his home state, Karnataka, in India and set up OM, a first-of-its-kind organic movement led by farmers in Mandya. Over the years leading up to his return to his roots, Chandan had observed certain disturbing trends such as increasing farmer suicides in Karnataka, the reduced life expectancy of the rural population, and large-scale migration of youth to cities for employment opportunities. He began to delve deeper to understand the problems faced by these farmers. He observed that the adoption of chemical farming in Mandya over the past few decades had led to an increase in lifestyle diseases and reduced life expectancy-a phenomenon hitherto unheard of within rural communities. OM was born out of Chandan's journey to change consumer and farmer behavior and encourage farmers to revert to traditional and more ecologically friendly farming practices. The case examines the challenges that Chandan encountered in convincing farmers to revert to sustainable farming practices, while simultaneously attempting to change the mindset of urban consumers by encouraging them to seek health-promoting, organically grown farm produce. This case will help students understand the traits that an entrepreneur driving a socially oriented business and led by a strong sense of purpose will need for success, as well as the challenges and opportunities in building a community-based enterprise. The case is set in August 2020, when Chandan was forced to reflect on the sustainability of OM's business model in the rapidly changing social context and increasing competition from big players. Consumer preference for online shopping for foodstuff was making it imperative for Chandan to continue to innovate OM's business model and to identify new opportunities to continue to stay relevant. -
Fluid Ai-Breaking New Ground with Artificial Intelligence
The case is set in 2017 and covers the journey of Fluid AI. Fluid AI is a five-year-old artificial intelligence (AI) startup that emerged as a pioneer in offering various AI-based products to solve various business problems. Its customers were primarily international and domestic (Indian) banks that generated and held enormous data but struggled to make sense of it. These banks needed help in solving problems such as predicting which customers they should lend money to, having an effective collection mechanism with reduced reliance on human decision-making, and using AI as modern technology to enhance the overall quality of customer experience. High cost-to-income ratios in banks provided another business imperative for building AI-based solutions to automate various operational processes in banks. Recognizing these needs, Fluid AI's founders-Raghav and Abhinav Aggarwal-built a core set of products powered by deep technical expertise and knowledge of AI algorithms. Enthused by the success from their first banking customer, the duo invested heavily in creating a two-pronged AI value proposition: predictive AI capabilities and conversational bots, with the ability to deploy solutions both on the customer's premises and on the cloud. This unique capability put Fluid AI in a formidable position to compete with more established AI startups, including some large IT service providers and product companies. The brothers did all of this in a completely bootstrapped mode, allowing the Fluid AI team full freedom to make technology, architectural, and business model decisions. They reached a critical mass of customers as more banks signed up and started using Fluid AI's products. A turning point came when Forbes magazine approached Fluid AI to help create a virtual avatar of Warren Buffett. This case traces Fluid AI's journey from being a startup, including its young founders and their dreams. -
Steve Jobs: Changing the World
This case traces the life of Steve Jobs who throughout his career flaunted convention and chose an unusual path to success. The case describes how Jobs, as young man, acquired an appreciation for aesthetics and the liberal arts, but was also quick to recognize and capitalize on new information-technology innovations. The case also describes how his demanding personality and continuing quest for perfection influenced those around him and led to the growth and success of Apple, one of the most valuable companies in history. Students will learn how Steve Jobs navigated life's choices to leave a lasting impact on the world. -
Layla's Delicacies: Scaling Up a Small Business with Insights from Marketing Research
From modest beginnings in 2018, selling to a few enthusiasts from her apartment, Madame Berrima quickly built Layla's Delicacies, an exotic Tunisian pastries company, into a thriving mail order business. Her sweets were handmade, customers posted rave reviews, and the New York Times attested to the product line's authenticity. The company invested heavily in product design, packaging, and branding and rode a wave of popularity of artisanal foods, which were enjoying brisk growth in the US. But by 2020, Layla's had fallen short of its goals. -
Learning Resources: Driven by Purpose
In January 2023, CEO Rick Woldenberg must make several strategic decisions for his family-owned toy company Learning Resources. -
EKI Energy Services: One Billion Carbon Credits
Within nine months from the time of its Initial Public Offering (IPO) in April of 2021, EKI Energy Services (EKI) shares had increased by more than 8,000%. Equally explosive was the growth of the company's revenues and Earnings Before Interest, Taxes and Depreciation (EBITDA), which rose in 2022 by almost ten and twenty times respectively. However, in 2022, several commentators started doubting the credibility of the carbon credits that firms, such as EKI, purchased or developed and sold to customers worldwide. Given that most of EKI's revenues relied on these credits, the company focused on its ongoing efforts to diversify the types of carbon credits that it developed and sold, while defending the validity of its existing carbon credit inventory. On April 25, 2022, EKI announced its intention to supply one billion carbon credits to clients within the next five years. In the next few months, EKI's stock price declined significantly from the highs of early 2022 but still traded close to 4,000% higher than its IPO price. Was this a reasonable price to pay for EKI's assets and future profitability? How sustainable were the earnings of the company and its stock market valuation in the fast-changing carbon credit market? Did the recent decline in EKI's stock price represent a buying opportunity, given its growth ambition? -
Procter & Gamble: Recall of Old Spice Deodorants
In November 2021, Procter & Gamble Company (P&G)'s announcement regarding the recall of more than a dozen of its Old Spice and Secret aerosol deodorants and sprays over elevated levels of benzene threatened to damage their brand value. Considering that product recalls come at a cost and involve various phases, P&G need to assess how the recall will impact their brand value. As the Cincinnati, Ohio, multinational consumer goods corporation progress with their recall, what can they do to sustain trust and confidence among their consumers and use the recall as an opportunity to solidify their brand image and superiority proposition and prevent an irreversible loss in their profits? -
Essential Coffee Group Australia: Valuation of a Potential Acquisition
In July 2020, the chief executive officer and board chair of Essential Coffee Group based on the Gold Coast, Australia, was perusing the company's financials. After continuous company growth and a distressed coffee consumption industry due to the COVID-19 pandemic, it was the perfect time to explore inorganic growth opportunities. To continue to compete at a high level in the Australian coffee industry, Essential Coffee Group had to move fast by exploring opportunities to expand horizontally, such as acquiring the analogous coffee bean roasting company Coffee Time Pty Ltd. To determine the feasibility of the transaction, the Essential Coffee Group financial team would need to undertake comprehensive external, internal, and financial analyses. They would also have to complete a discounted cash flow valuation and a precedent transactions analysis to determine an appropriate offer price for the targeted firm. -
Runhua: An Auto Dealer's Sales Channel Dilemma
In 2022, Runhua Group was a well-known automobile dealer in China with a large market share in the traditional fuel vehicle market. The recent surge of new energy (i.e., plug-in electric) vehicles was having a strong impact on the company's main business. The high number of new automobile companies entering this promising market was threatening the dealership model, the traditional sales and distribution channel that dominated the market. Runhua Group had always held a long-term vision and a cautious attitude. However, it had to make a decision on how to respond to the subversive changes in the automotive industry in a timely manner. What should be the company's strategy for the new energy vehicle business? How should it select which new energy brands to partner with? -
Huaxi Hospital: Digital Transformation of Healthcare
As a top-ranking hospital in Western China, Huaxi (which means West China in Chinese) Hospital of Sichuan University (Huaxi Hospital) had been navigating a digital transformation journey. In the early phases, Huaxi Hospital focused on the development of setting up a digital foundation. Specifically, it created the relevant supporting departments and built eighteen digitalized systems. In 2013, when Weimin Li became president of Huaxi Hospital, he prompted the expansion of digitalization. Telemedicine services, hospital services using smart technologies, and online hospital services represented examples of the digital innovation adopted. More recently, the COVID-19 epidemic further accelerated the process of hospital digitalization, and Huaxi Hospital continued to advance and keep up with the rapid changes. Artificial intelligence-assisted diagnosis and big-data platforms were implemented during this later phase. However, despite its success and facing an increasingly turbulent and complex health care industry, Huaxi Hospital needed to continually explore future digital transformation strategies. What could the future of Huaxi Hospital look like in the digital age? How should the hospital prioritize its different initiatives plans and design a road map for its future digitalization? -
Zomato: An Ignorant Customer Communication Mistake or a National Issue?
On October 18, 2021 a Zomato app user wanted a refund for a missing item in his online food service order and contacted the company's customer care agent over Twitter. The customer was from the southern Indian state of Tamil Nadu, where Tamil was the native language and a matter of parochial pride. What had started as a minor food order detail escalated into an online nationwide language debate with the accompanying hashtag #Reject_Zomato. The entire episode and ensuing online debate lasted less than 24 hours. But the matter created an indelible trail of negative publicity and scathing media coverage for Zomato, denting the company's reputation. Was Zomato's public response to the issue appropriate? Should the company review its use of Twitter as a customer care channel? More broadly, what changes should be considered for Zomato's customer support function to deal effectively with culturally-attuned customer communication in a diverse market of 1.4 billion people with many different regional identities, cultural pride levels, and spoken languages? -
The END Fund: To Eliminate Neglected Tropical Diseases
Founded in 2012, the END fund focused on eliminating five Neglected Tropical Diseases that accounted for 80% of the tropical diseases affecting nearly 1.5 billion people worldwide. Its roughly $25 million/year annual budget was fully committed when it got news that the British Government would be cutting back its funding for the sector, putting at risk nearly 50,000 people for a tropical disease (visceral leishmaniasis-VL), which the End Fund was currently not addressing. The case question is whether the End Fund should redirect its resources to VL. The case highlights the difficult decisions that nonprofits have to make balancing resource stretch and mission focus. -
Proday: Calling the Right Play
Sarah Kunst knew the elements of a successful startup from her tenure at venture capital firms. In April 2018, however, her own app - Proday, a home fitness platform featuring exercises filmed by professional sports stars - was floundering. Kunst theorized that Facebook algorithm changes had ruined her marketing plan, but needed to be confident in her diagnosis before allocating resources to a solution. She thought back to Proday's launch two years earlier to see if she could pinpoint where it all went wrong. -
Oak Street Health
This case describes the founding and evolution of Oak Street Health, a primary care provider operating in the "value-based" health care space, focused on Medicare patients in the United States. This case introduces students to value-based health care in the United States, in which providers assume full risk for the overall cost of patient care under a system of capitated payments, and contrasts it with traditional fee-for-service health care. Oak Street Health was focused on a resource-intensive model of primary care clinics in more than 20 states, primarily serving low-income seniors. The company had grown rapidly since 2013 and had an IPO in 2020. However, the company was facing increasing competition from large players as health care groups like CVS became more vertically integrated and tech companies like Amazon expressed interest in the industry. This poses strategic questions for Oak Street on how fast to continue growing and what next steps to take, and how to deal with competition while driving toward profitability in a challenging macroeconomic environment. -
Altius Education: Obstacles to Innovation in Higher Education
This case tells the story of education-technology entrepreneur Paul Freedman and the company he founded in 2007, Altius Education. The case briefly describes the history and landscape of higher education in the US, and provides examples of various changes and recent notable industry innovations that had taken place. Specifically, the case highlights the important role of accreditation (and Title IV funding) in higher education and how such a strong non-market force can pose serious challenges to industry disruption and innovation. Freedman founded Altius Education to make the possibility of a high-quality, affordable higher education attainable for more students, specifically part-time and working students. Altius entered into a joint venture with liberal arts college Tiffin University in Ohio to create Ivy Bridge College, a for-profit, accredited, two-year online associates degree program. Ivy Bridge offered its students success coaching and automatic transfer into bachelor's degree programs through articulation agreements with traditional four-year colleges and universities. Altius served as the online program manager (OPM), responsible for the non-academic and technical aspects of the program, whereas Tiffin handled all aspects of the academics, curriculum design, and instruction. Years later, several events took place that led to the closure of Ivy Bridge College and the end of Altius Education. The case discusses these events and the role of non-market forces in Altius' journey.