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  • Race, Accountability, and the Achievement Gap (A)

    In 2005, Montgomery County Public Schools (MCPS) leadership decided to take a hard look at issues of race and institutional barriers impeding the progress of African American and Hispanic students. Examines how a large, urban public school district attempts to systemically address and eliminate the district's minority student achievement gap. The (A) case gives an overview of MCPS' past efforts to address the district's minority student achievement gap leading up to July 2005. It shows how a school district with a long history of dealing with racial issues and the minority achievement gap continues to grapple with many of the same issues related to access, equity and belief systems. Picking up where the (A) case ends, the (B) case examines MCPS' new approach and specific efforts to narrow the district's achievement gap through data utilization, accountability mechanisms, and professional development after July 2005. The (B) case also details the leadership team's challenges in communicating about race. It is accompanied by a video supplement of MCPS Superintendent Jerry Weast speaking explicitly about race and the achievement gap to MCPS administrators.
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  • Lulu.com

    Lulu.com is an e-commerce company that distributes content for book authors, video producers, calendar designers and other intellectual property creators that can be captured in digital formats. At this time, Lulu.com has developed a successful niche market in print-on-demand books within the United States. However, the vision of its founder is much larger. The president is faced with the strategic dilemma of whether to expand Lulu.com's product offerings or to focus on internal operations for the next six to 12 months.
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  • CSU-CCA Group

    Deals with the concept of how to orchestrate a consistent CSR strategy consolidating many diverse social initiatives started within a business group. The CSU-CCA Group (CSU-CCA) is one of the leading retailing businesses in Central America. The Group includes the Corporacion de Supermercados Unidos (CSU), a supermarket chain, and the Corporacion de Companias Agroindustriales (CCA), in charge of fresh- and private-label product storage and distribution for CSU supermarkets. The CSU-CCA Group was involved in several social programs for both its personnel and other members of the communities in which it operated. Some of these programs were institutionalized, while others were not. In some cases, the Group's involvement had stemmed from a personal initiative driven by one of its employees or managers, although the programs were not aligned to company strategies. By mid-2002, the Group made a corporate decision to articulate its social engagements within its business strategy as a means of becoming more effectively involved in the communities in which it operated. Accordingly, in May 2002, the Corporate Affairs Department (CAD) was created to oversee corporate social responsibility issues and external communications with stakeholders. The CAD reported to the CSU-CCA Board Chairman. Discusses the role of Manuel Zuniga, Corporate Affairs Department Director and Social Responsibility Committee member, who, at the next meeting, will need to propose an overall CSR strategy for the Group, including a recommendation as to which social ventures to support and which not to. He would also need to answer other questions: How should the company draw away from the programs it would no longer support while preventing the alienation of those in charge of them? How should CSU-CCA develop future programs? How should it go about raising personnel awareness of, and commitment to, social programs?
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  • Jamnalal Bajaj, Mahatma Gandhi, and the Struggle for Indian Independence

    Describes the role of a leading Indian business leader in the campaign for independence before 1947 and his close relationship with the legendary Mahatma Gandhi. Provides the opportunity to consider the impact of colonialism on shaping Indian entrepreneurship and the role of the small Marwari group, originally from the Marwar region of Rajasthan, in creating many of India's leading business houses, including the Bajaj. The Bajaj, like other Marwari, were traders who after World War I transitioned into manufacturing, including sugar manufacturing and steel rolling.
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  • Arrow Electronics--The Apollo Acquistion

    Having already made 10 acquisitions of competitors in the last decade, the CEO of Arrow is evaluating the acquisition of another small competitor to boost sales, become #1 in a niche market segment, and achieve economies of scale. He is struggling with whether the deal makes strategic sense given forecasts that this niche segment is declining, whether the price is too high given the competitor's lack of profitability, and how to integrate the company into Arrow to maximize its value if he does the deal. Provides information to permit valuing the acquisition and developing a post-merger integration strategy and plan.
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  • Steve Parker and the GFS-China Technologies Venture (A)

    GFS-China Technologies is a joint venture between Standard Industries (Standard) of the United States and Good Fortune Enterprises (Good Fortune) of China. The joint venture was created to manufacture various automotive heating ventilation and air conditioning parts. Two weeks after GFS-China began operating, Good Fortune's president stopped the joint venture and would not allow the joint venture general manager into the plant. Good Fortune's president wrote a letter to Standard and demanded that the venture general manager be replaced. After various meetings and communications between the partners, it was decided that a new general manager would be appointed and would come from Stan-dard. Steve Parker, a Standard manager who was in China working as Asia Pacific purchasing manager for Standard HVAC, was asked if would be interim general manager in GFS-China. It was now up to Parker to decide if he should accept the position and, if so, what he should do to get the joint venture back on track.
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  • Managing at Scale in the Long Beach Unified School District

    Examines the ways in which a leader can create, influence, and manage a school district's organizational culture to support continuous improvement of student achievement outcomes.
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  • Skype Technologies, S.A.

    Since the company launched its software product in August 2003, the word "Skype" has become synonymous with free calls over the Internet. Skype developed software that allowed people around the world to talk to each other for free. Prior to the company's $2.6 billion acquisition by eBay, announced in September 2005 and finalized in October 2005, the Skype network had grown to over 55 million registered users. Within two years of the Skype beta product launch, the software had been downloaded over 205 million times and the user growth rate had climbed to an impressive 130,000 new users per day. Skype's registered user growth rate exceeded that of KaZaa, Hotmail, and ICQ over the initial 24-month period after each company launched its product. From Skype's inception until the company's acquisition by eBay, the company had secured over $20 million in venture capital funding, while operating with just over 200 employees. eBay announced its intention to acquire Skype in a cash and stock transaction totaling $2.6 billion on September 12, 2005. The acquisition was completed on October 14, 2005. Within six months of the announcement, Skype went on to sign co-marketing deals and partnerships with Motorola, Intel, Kodak, Netgear, Panasonic, Philips, and Warner Music Group. Skype continued to break new records and achieve significant growth: the total number of registered users climbed to over 100 million in April 2006 and the number of simultaneous Skype users online was propelled to 6 million. By mid-2006, it was believed that Skype carried an estimated 7% of all global international voice traffic. Looking forward, the Skype team had a number of challenges with which to contend. How would the eBay acquisition impact Skype's distinctive culture? How would Skype compete with emerging services such as GoogleTalk and incumbents such as AT&T? What strategy should Skype pursue to sustain its growth?
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  • Hong Kong's Ocean Park: Taking on Disney

    Ocean Park was the only amusement park in Hong Kong until 2005, when Hong Kong Disney exploded onto the scene. Outlines Ocean Park's history and its response to Disney's encroachment into its market. Ocean Park acted swiftly and decisively to capitalize on the excitement generated by Disney, thus turning what could have been a threat into an opportunity. In terms of business-level strategy, the park moved to accentuate the differences with Disney rather than compete head-on. As the CEO stated, "We have no intention of trying to out-Disney Disney." The park focused on its aquarium, animals, and thrill-rides as opposed to the "fantasy" and animated characters that make up Disney's core competence. By following this strategy, the park was able to capture a large portion of Disney visitors that came from Mainland China. Also discusses a recent restructuring, human resources management issues, and other challenges that the park faced in 2006.
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  • Circus Oz

    Circus Oz was Australia's premier international circus, having performed in 26 countries on five continents. In early 2002, Circus Oz enjoyed its strongest financial position since its founding in 1977, making a profit and sitting on a surplus of AUD$1,169,313. Although in recent years the company had increased the percentage of revenue generated from the box office, more than 60% of its funding still came from the Australia Council, its largest government sponsor. Linda Mickleborough, general manager of Circus Oz, was pondering how to respond to a recent offer by the Australia Council to fund a new position, director of development, at Circus Oz. The Australia Council was strongly encouraging the circus to hire development professionals to expand its funding from corporate donors. As an enticement, the council offered to underwrite the cost of the position for two years. Mickleborough had found the ideal candidate. The decision, however, was still a difficult one. Circus Oz had relatively flat salaries, reflecting deeply held egalitarian and democratic values. These values were central to the company's creative process, culture, and aesthetic. The suggested salary of the development director position was more than two times the highest salary currently paid to any employee at Circus Oz. Such a large salary disparity might wreak havoc on the company's morale and culture.
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  • Horniman Horticulture

    This case captures the cash-flow and working-capital management problems typical of small, growing businesses. At the end of 2015, Bob and Maggie Brown have completed their third year of operating Horniman Horticulture, a $1-million-revenue woody-shrub grower in central Virginia. While experiencing booming demand and improving margins, the couple is puzzled by their plummeting cash balance. The case highlights the difference between cash flow and accounting profits, as well as the common negative effects of growth on cash flow. The case provides a forum for establishing appreciation for the relevance of free cash flow to business owners and managers, introducing financial ratio analysis, developing the concept of the cash cycle and working-capital management, and motivating the use of financial models.
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  • Medco Energi Internasional

    In late 2004, Hilmi Panigoro, CEO of the publicly traded Indonesian oil company Medco Energi Internasional, is striving to regain majority control of the company his brother Arifin founded in 1980. The Asian financial crisis of 1999 led to a major restructuring that left the Panigoros with a 34.1% equity stake in Medco. Two other large shareholders are now looking to sell their combined stake of the 50.9% and have selected Temasek, the Singapore government's investment arm, as their preferred bidder. The Panigoros have a right of first refusal, but only a four-month window to raise the capital needed to head off Temasek's bid. The Panigoro brothers are considering a two-stage plan: a leveraged buyout to be followed by a secondary equity offering at a share price high enough to enable them to repay the loan and maintain majority control of their company. As attractive as the plan seems, they worry about the high cost of the loan and the risk that the offering might fail. In January 2005, with no time left to consider alternative financing plans, the Panigoro brothers have to decide whether to go ahead with the plan or lose control of Medco to Temasek.
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  • SUN Brewing (A)

    The Khemka family of India--founders, managers, and majority owners of Russia-based SUN Brewing--faces a difficult decision in 1998. Following the ruble's massive devaluation in August 1998, the stock price of SUN Brewing, which is publicly listed on the Luxemburg exchange, has declined by over 90%. Only two months earlier they had planned a $200 million to $400 million equity and debt offering on the New York Stock Exchange to finance major investments in the face of increased competition from international beer companies in the Russian market. However, the rouble devaluation and the deep financial crisis that has ensued has led to the cancellation of the proposed NYSE listings--and to a $40 million bridge loan that now needs to be repaid. The family is debating the merits of two main alternatives: To bring in a major global beer company as a strategic partner at this difficult time or to stay on as controlling owners, inject millions of dollars into the company from other parts of the family business group, and weather the storm until better terms can be expected from any outside capital provider.
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  • Natura: Global Beauty Made in Brazil

    Explores the globalization strategies of Natura, Brazil's largest cosmetics company. Founded in 1969, Natura grew using a direct selling model. Led by its three founders, the firm made distinctive use of Brazil's diversity and became characterized by high ethical and environmental standards. Natura began to seek international markets in 1982, but experienced many setbacks until surviving the economic crisis in Argentina in 2001. The company opened operations in France and Mexico in 2005, and the three founders are now exploring opportunities in Moscow. To pursue further globalization, Natura must now decide whether to continue to rely primarily on the direct sales model or to experiment with other models--and whether to make acquisitions or become part of a larger group.
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  • Ahold: A Royal Dutch Disaster

    The case traces the history of Ahold, the world's third largest food retailer, describing in detail the events in the 10 years leading up to its collapse. After the new CEO, Cees van der Hoeven, took over in 1993, Ahold embarked on a program of rapid expansion with a target of 15 per cent growth in earnings per share per year. The strategy took the form of penetrating new geographic markets and diversification into related industries. While van der Hoeven appeared to be achieving his targets, in reality, he was sowing the seeds of his own destruction. While the apparent reason for Ahold's downfall was the discovery of fraud at one of its US subsidiaries, the actual causes were much more complex. The company itself survived, thanks in part to the existence of a "poison pill", but was radically restructured over the next two years with many of van der Hoeven's ventures being dismantled. The case offers the opportunity to discuss many of the common causes of company failure: 1) poor strategic decisions, 2) over-expansion, especially through ill-judged acquisitions, 3) a dominant CEO driven by greed and hubris, 4) weak internal controls, particularly in regard to remote operations, 5) ineffective boards. The case can also be used to comment on the existence and effect of "poison pills" and other restrictions on ordinary shareholder power; corporate governance and the many reforms now in place or being proposed; and how distant operations can be effectively controlled.
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  • Eccho: Business Initiative or Leadership Development Program?

    To ensure transformation beyond its core brand, the European management team of Eccho, a globally operating fast-moving consumer goods company, had decided to invest in building leaders who could deliver growth in new categories. This case describes how Eccho goes about putting together a European leadership development program.
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  • The KIPP Schools: Deciding How to Go to Scale

    When Michael Feinberg and Dan Levin established their fledgling Knowledge is Power Program (KIPP) school in Houston in the early 1990s, they hoped only to prove in their own school that a highly-structured and demanding program could lift the academic performance of disadvantaged students. Little more than 10 years later, however, the name KIPP and the approach they had honed had become an education "brand name," used by more than 40 schools overseen by the KIPP Foundation they had helped to establish and operate. This case tells the story of how KIPP grew from a single school to an education franchise, all the while taking steps to ensure that its special approach continued to be employed in schools bearing the KIPP name. More specifically, the case focuses on the relationship between KIPP founders Levin and Feinberg and two key philanthropists, Donald and Doris Fisher, who used the fortune earned in their GAP apparel chain to help the KIPP idea "go to scale." The case focuses on the decisions of Fisher, Feinberg, Levin, and the legal staff of the San Francisco based KIPP Foundation, financed by the Fishers, to ensure that KIPP standards would be maintained at KIPP schools. HKS Case Number 1847.0
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  • Management Levels at Staples (A): Company and Organization

    One of six cases that describe the roles and responsibilities of managers at each of the hierarchical levels of management within the U.S. Stores business unit of Staples, the world's largest office supply company. Together, the cases form a complete integrated package. Explores five distinct jobs--store manager, district manager, regional vice-president, division senior vice-president, and president of the U.S. Stories business units--and, for each level, describes the key management tasks, planning, decision-making, and leadership processes and critical choices that lead to superior execution and operational performance. Provides background information on Staples' organization and strategy.
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  • Scopie's Enlarged Gland Shrinker

    Describes a firm that markets a laser for a fictional problem. Asks readers to evaluate Scopie's marketing and production strategy (it plans to start in India and then expand to the United States) and its long-term viability.
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  • Eat2Eat.com

    Eat2Eat.com was an Internet-based restaurant reservation service covering a dozen cities in the Asia Pacific region. The principal business of Singapore-based Eat2Eat Pte Ltd., it was launched in 2000 by an entrepreneur and former investment banker with US$1 million of his own capital. He quickly established the capabilities and business model, but after five years the registered user base remained relatively small at about 12,000. He thought the next step for the company was to expand that user base and hoped that the company could change the way people made plans to eat out. Resources--specifically, time and money--were limited, so any promotional efforts would have to be innovative and efficient. Focuses on entrepreneurial marketing with sub-themes of financing and small enterprise management as it tells the story of an entrepreneur who had an idea and enough money to launch it, but then struggled to achieve adequate scale.
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