Spiegel-Verlag Rudolf Augstein GmbH & Co. KG.

Villalonga, Belen, Daniela Beyersdorfer, and Vincent Dessain
April 2008

Der Spiegel is Germany's most influential political news magazine. In the 1970s, its founder Rudolf Augstein gave a 50% ownership stake to his employees and sold another 25% to rival publisher Gruner+Jahr, but retained significant control during his lifetime by stipulating in the bylaws that every important business decision would require a 76% shareholder approval. When Augstein died in 2002, however, his co-owners exercised the option the same bylaws gave them to buy a 0.5% stake each from Augstein's heirs, who thus lost their veto rights. In September 2007, the benefits and costs of sharing ownership with employees became particularly salient when the employees block the CEO's proposal to acquire 50% of the Financial Times Deutschland. Faced with the new balance of power, Rudolf's eldest son Jakob Augstein is forced to rethink the role that his family can play in Spiegel going forward. Should he try to buy back the pivotal stake? Sell the family stake altogether? But to whom, and at what price?

Moët Hennessy España

Casciaro, Tiziana, Vincent Dessain, and Elena Corsi
April 2008

Since being appointed CEO of Moët Hennessy España (MHE), the Spanish subsidiary of the wine & spirits business of Louis Vuitton Moet Hennessy (LVMH), the world's leading luxury products group, Ramiro Otano had overseen a spectacularly successful run at the company by any financial measure. Despite the company's growth, some of the employees who had been at the company for years were complaining that the company had lost its "human touch" in the process of professionalizing and modernizing to capitalize on the fantastic market opportunities that had opened up in Spain. Some felt that the work was now too structured and interpersonal relationships too dry. Otano acknowledged that the financial success had happened on the expense of the informal and relational atmosphere that used to characterize the company. But did it matter, Otano wondered? How should he go forward?

Global Knowledge Management at Danone

Edmondson, Amy C., Bertrand Moingeon, Vincent Dessain, and Ane Damgaard Jensen
February 2008

The case explores French consumer goods company Danone's novel approach to knowledge management. Through informal knowledge marketplaces and sharing networks, Danone had helped managers connect with each other and share good practices peer-to-peer, rather than relying on traditional hierarchical lines of communication or IT repositories. From 2004 to 2007, the president of human resources and his team had found that 5,000 Danone managers around the world had shared about 640 now-documented good practices. In 2007, the strategic importance of saving time in a decentralized organization through adoption of colleagues' good practices was put to a test. The case illustrates Danone's options on taking knowledge management into the future of Danone.

Silic (A): Choosing Cost or Fair Value on Adoption of IFRS

Hawkins, David F., Vincent Dessain, and Andrew Barron
September 2007

This case addresses the implementation of International Reporting Standards (IFRS) at Silic, a publicly-listed real-estate company in France. The A case focuses on how Silic should implement International Accounting Standard 40 (IAS 40, Investment Properties). Students assume the role of CEO Dominique Schlissinger and must decide whether the company should report its primary asset (investment property) using either the historical cost or fair-value accounting method. The B case exposes the accounting methods eventually chosen by Silic and other publicly-quoted real-estate companies in France. It gives Silic the opportunity to explain the reasons behind and effects of it choice, and encourages students to reflect on whether Silic made the right decision.

Silic (B): Choosing Cost or Fair Value on Adoption of IFRS

Hawkins, David F., Vincent Dessain, and Andrew Barron
September 2007

Supplements the (A) case.

Using Investor Relations Proactively

Miller, Gregory S., Vincent Dessain, and Daniela Beyersdorfer
August 2007

Investor relations has a delicate balancing act. It communicates with stakeholders, of course, but can also help employees take a step back and analyze their firm as outsiders do. Harvard Business School's Gregory S. Miller, Vincent Dessain, and Daniela Beyersdorfer explain where IR is going, with energy giants BP and Total leading the way.

HBS Working Knowledge

Moulin Rouge (A)

Edmondson, Amy C., Bertrand Moingeon, Vincent Dessain, and Ane Damgaard Jensen
September 2007

The case explores the Parisian cabaret following its bankruptcy in 1998. Under court supervision, the family-owned cabaret was forced to let an outside person step in to supervise the company. Set in 2004, the A case follows the new CEO in his attempts to turn the company around and asks participants to consider how leaders can effectively motivate employees to create a successful business in an old, well-known entertainment company. The B case brings the Moulin Rouge turnaround story up to the year 2007 and illustrates the collaboration between external managers and the family and describes the continuous empowerment of the employees.

Moulin Rouge (B)

Edmondson, Amy C., Bertrand Moingeon, Vincent Dessain, and Ane Damgaard Jensen
September 2007

Supplements the (A) case.

Metro International

Khanna, Tarun, Felix Oberholzer-Gee, Anders Sjoman, Ane Damgaard Jensen, and Vincent Dessain
September 2007

The case explores the business model of Metro International, a company publishing 70 editions of its free newspaper in 20 countries. Set in 2007, the case looks at the decision facing top management regarding the company's future strategy. A pioneer in the free newspaper market, Metro had fought incumbent publishers distributing traditional paid-for newspapers, but while the company had also generated profits, new challenges had surfaced; competition had increased and advertising-the free newspaper's only source of income-was shifting from newspapers to the internet.

PlaNet Finance: Broad Scope in Microfinance

Hagiu, Andrei, and Elena Corsi
August 2007

PlaNet Finance was a French NGO providing technical support and training services to microfinance institutions (i.e., institutions providing financial services to the poor) and other microfinance actors, ratings and management and advisory services to microfinance investors and investment funds. It was also creating a network of microfinance banks through a microfinance holding company. Yet, in a context of rapid change and explosive growth of the microfinance sector, Jacques Attali, the founder and president, wondered whether PlaNet Finance's scope was sufficiently broad to fulfil its mission or, on the contrary, whether it needed to be narrowed in order to eliminate organizational challenges and external perceptions of conflicts of interest.

Ericsson: Leading in Times of Change

Das Narayandas, Daniela Beyersdorfer, Vincent Dessain, and Anders Sjoman
August 2007

After its dramatic corporate turnaround, the Swedish telecom infrastructure company Ericsson hires a new CEO to bring the former Swedish flagship company back on track. Puts students in the shoes of Carl-Henric Svanberg, an industry outsider and CEO of locks group Assy Abloy, who does not hesitate a moment when he gets the call in early 2003. Looks back on the reasons for Ericsson's current situation and the recent restructuring programs that cut the company's staff and operating expenses in half. Presents Svanberg's vision for how to re-energize the ailing company and reach profitability once again, and gives students the opportunity to debate these issues.

Reinventing Ericsson

Narayandas, Das, Daniela Beyersdorfer, Vincent Dessain, and Anders Sjoman
August 2007

Carl-Henric Svanberg, CEO of the Swedish telecom infrastructure company Ericsson, has to reorganize the recovering company in late 2003 after a major industry downturn. He is convinced that only a more market-orientated and customer-focused organization will be able to remain competitive in this maturing, high-technology focused industry. Presents his change project, in which the sales and marketing structure play a central role. Will his ideas allow the company to keep its customers and successfully go after new markets?

Rovná dan: The Flat Tax in Slovakia

Alfaro, Laura, Rafael Di Tella, Ane Damgaard Jensen, and Vincent Dessain
July 2007

Explores the tax policy choices made by Slovakia and the impact of reforms. Set in 2006, looks at the decision facing new Prime Minister Robert Fico as he faces the public's "reform fatigue." Traces the development of tax and fiscal policies since Slovakia's independence in 1993, focusing on the 2004 implementation of the rovna dan, or "equal tax," a drastic simplification of the tax system. A major theme is the impact of labor market and welfare reform, as well as the effective tax rates of both investors and workers. Another important theme relates to Slovakia's desire to join the EU and adopt the Euro.

SAP: Industry Transformation

Hagiu, Andrei, Pai-Ling Yin, Daniela Beyersdorfer, and Vincent Dessain
June 2007

SAP seeks growth in the small- and medium-sized enterprise market. To do so, it has created a platform strategy with SAP Netweaver. What are the advantages and challenges for an incumbent entering a new market? What are the benefits and challenges of implementing a platform strategy?

Fritidsresor Under Pressure (A): The First 10 Hours

Margolis, Joshua, Vincent Dessain, and Anders Sjoman
May 2007

When a tsunami hit Southeast Asia on December 26, 2004, the leadership team at a Swedish tour company must manage a devastating crisis affecting thousands of its customers and employees in Thailand. Documents the challenges the company faced in the first ten hours of the crisis. Amid the uncertainty of those first hours, the leadership team must make a range of decisions to orchestrate the company's response and manage the rest of its business. Describes the chaotic environment of a crisis, especially when the normal course of business is interrupted, and puts students in the shoes of a range of managers, each having to make decisions on his/her own, while coordinating with one another to enable the company to respond effectively.

Fritidsresor Under Pressure (B): The First Week

Margolis, Joshua, Vincent Dessain, and Anders Sjoman
May 2007

Supplements the (A) case.

Fritidsresor Under Pressure (C): After the Tsunami

Margolis, Joshua, Vincent Dessain, and Anders Sjoman
May 2007

Supplements the (A) case.

French Unemployment: The Crisis Continues

Alfaro, Laura, Patrick Vachey, and Vincent Dessain
May 2007

Supplements the (A) case.

Common Agricultural Policy and the Future of French Farming

Trumbull, Gunnar, Elena Corsi, and Vincent Dessain
March 2007

Presents the history and evolution of the EU Common Agricultural Policy, from early price supports to the 2003 decision to "decouple" payments to European farmers. Explores the logic behind agricultural supports, with a focus on the economic, political, and cultural context of French farming. Discusses efforts to reform the CAP in the context of the Doha Round of WTO negotiations against the backdrop of European enlargement.

Navigating Turbulent Waters: Glitnir Bank's Communication Challenge during a Macroeconomic Crisis

Kimbrough, Michael D., Gregory S. Miller, Vincent Dessain, and Ane Damgaard Jensen
March 2007

Glitnir Bank is an Icelandic company following an aggressive growth strategy that relies heavily on foreign debt. Access to such debt is suddenly curtailed when there is a downturn in market sentiment regarding the Icelandic economy as a whole. Students will reflect on the essential elements of a communications strategy, including the role of the media and analysts. Class discussion will focus on creating infrastructure that will increase the bank's ability to communicate effectively in an environment of macroeconomic uncertainty.

Vipp A/S

Austin, Robert D., and Daniela Beyersdorfer
February 2007

Rapidly growing Vipp sells highly differentiated (and expensive) "designer" versions of a product that most buyers think about in purely functional terms: Trash bins. Examines how the company successfully produces and positions a trash bin so that it is regarded as an "art object" (and which has been displayed as such as the Paris Louvre). Though it is a tangible product, a Vipp bin's price cannot be even remotely justified by its functional features; customers, rather, pay dearly for the intangible aspects of the product, which the firm works very hard to keep integrated with the physical product. Deals with a range of issues confronting creative economy companies, such as how to produce products with very important intangible components, how to assure and manage the design integrity of a family of products, how far to extend a brand, how to manage creative employees, and where to source creative work.

Marketing Chateau Margaux

Deighton, John A., Vincent Dessain, Leyland Pitt, Daniela Beyersdorfer, and Anders Sjoman
December 2006

Chateau Margaux, luxury brand or connoisseur brand? Although France is awash with unsold wine, demand has never been stronger for the very finest Bordeaux. How should Margaux sustain and grow its business? The Chateau management team is wondering if it can take more control of distribution instead of leaving it to the Bordeaux wine merchants. Also, can the Chateau build marketing and sales capabilities on its own? Who is the target market, wine connoisseurs or the newly rich? Corinne Mentzelopoulous, who took over the estate from her father in 1980, wonders whether a new lower-priced wine should be added to the portfolio.

Bang & Olufsen: Design Driven Innovation

Austin, Robert D., and Daniela Beyersdorfer
October 2006

A successful company, recognized worldwide for exquisite design of consumer electronics products, strives to better integrate software design into its traditional physical product design processes to meet the demands of a post-iPod world. Details the Bang & Olufsen "design driven innovation" process, that works very differently than many companies' product development processes, but allows this company to produce very high profit margin products that retain their margins for a very long time in an industry in which products come and go very quickly. The case helps students understand processes and practices that support the creation of highly differentiated products. It also deals with issues of change in an already successful context, and of managing highly creative staff who are vital to a company's business model.

IR at BP: Investor Relations and Information Reconnaissance

Miller, Gregory S., Daniela Beyersdorfer, and Anders Sjoman
October 2006

BP's IR director has begun a program to use information regarding external views of BP and the industry as part of the firm's planning and operational activities. This information is generated as a portion of their award winning investor relations program, and had previously been used only to enhance communications. Allows a discussion of the relative merit of more formally including this information in BP's planning and operations. Also provides "best practices" insights into IR.

IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor (A)

Bartlett, Christopher A., Vincent Dessain, and Anders Sjoman
September 2006

Traces the history of IKEA's response to a TV report that its Indian carpet suppliers were using child labor. Describes IKEA's growth, including the importance of a sourcing strategy based on its close relationships with suppliers in developing countries. Details the development of IKEA's strong culture and values that include a commitment "to create a better everyday life for many people." Describes how, in response to regulatory and public pressure, IKEA developed a set of environmental policies that grew to encompass a relationship with Greenpeace and WWF on forest management and conservation. Then, in 1994, Marianne Barner, a newly appointed IKEA product manager, is surprised by a Swedish television documentary on the use of child labor by Indian carpet suppliers, including some that supply IKEA's rugs. She immediately implements a strict policy that provides for contract cancellation if any IKEA supplier uses child labor. Then Barner is confronted by a German TV producer who advises her that he is about to broadcast an investigative program documenting the use of child labor in one of the company's major suppliers. How should she react to the crisis? How should the company deal with the ongoing issue of child labor in the supply chain?

RFID at the METRO Group

Ton, Zeynep, Vincent Dessain, and Monika Stachowiak-Joulain
June 2006

Introduces radio frequency identification (RFID) as the next generation of automatic identification technologies that is expected to improve the performance of retail supply chains through reduced shrink, increased product availability, and improved labor productivity. Showcases the implementation of the technology by the METRO Group, the world's third-largest retailer. Places students in the position of Dr. Gerd Wolfram, managing director of METRO's internal IT service group, and Zygmunt Mierdorf, the company's chief information officer, who, in mid-2005, evaluate the results of the RFID rollout and decide on the next stage in the implementation.

Blogs at Dresdner Kleinwort Wasserstein (A)

McAfee, Andrew P. and Anders Sjoman
June 2006

In May 2005, JP Rangaswami, the chief information officer at investment bank Dresdner Kleinwort Wasserstein (DrKW), wonders how to extend the bank's use of blogs. Corporations are now increasingly using these tools to diffuse news, opinions, and knowledge and improve collaboration. At DrKW, there are already over 300 internal blogs and Rangaswami now wants to encourage their internal spread. He has to make a compelling case for using blogs as well as make them easy to use. In addition, Rangaswami wants the bank to allow external blogs that others can view on the Internet. However, given the strict disclosure regulations that govern the bank's operations, Rangaswami wonders whether there are any safeguards that would help convince the bank's executive staff to allow external blogs.

Deutsche Borse and the European Markets

Crane, Dwight B., and Monika Stachowiak-Joulain
May 2006

Introduces radio frequency identification (RFID) as the next generation of automatic identification technologies that is expected to improve the performance of retail supply chains through reduced shrink, increased product availability, and improved labor productivity. Showcases the implementation of the technology by the METRO Group, the world's third-largest retailer. Places students in the position of Dr. Gerd Wolfram, managing director of METRO's internal IT service group, and Zygmunt Mierdorf, the company's chief information officer, who, in mid-2005, evaluate the results of the RFID rollout and decide on the next stage in the implementation.

Bloemenveiling Aalsmeer

Oberholzer-Gee, Felix, Vincent Dessain, Daniela Beyersdorfer, and Anders Sjoman

April 2006

The Dutch "Verenigde Bloemenveiling Aalsmeer Cooperative" (VBA) was on of the world's largest flower exchanges. Around 6,300 flower growers, one half of them located in the Netherlands, used the auction to sell cut flowers and plants to more than 1,000 wholesalers. In 2004, the value of the flowers and plants traded at Aalsmeer exceeded 1.6 billion euros, representing 36% of the world's trade in cut flowers. Every morning, VBA held 55,000 Dutch auctions to match buyers and suppliers. While formidable in size, VBA management worried about the future of the exchange because direct sales between growers and buyers had started to bypass the auction. Kenyan growers, for instance, often shipped roses directly to wholesalers. VBA's management considered a number of strategic initiatives and tactical moves in response to the growth in direct sales. Should the exchange allow non-Dutch growers to become members? Would it make sense to have the wholesalers bear a larger fraction of the trading cost? Philip Smits, CEO of VBA, knew that expanding VBA membership and adjusting trading commissions were guaranteed to be hotly contested topics at the upcoming general meeting.

Fraikin SA

Kester, W. Carl, Vincent Dessain, and Monika Stachowiak-Joulain
April 2006

Provides an example of a so-called "whole business" securitization. In early 2004, Fraikin, France's leading industrial vehicle rental company, compares several alternatives for refinancing a large bridge loan within a year. Presents three primary options: a classic leveraged buyout, an asset-backed loan, and a loan based on securitizing Fraikin's truck rental contracts. Asks students to evaluate the advantages and disadvantages of each option, particularly the securitization. Elicits discussion about why securitization appears to be the least cost financing alternative and whether it is worth the high transaction costs involved.

Wikis at Dresdner Kleinwort Wasserstein: (A)

Anders Sjoman, McAfee, Andrew
March 2006

In October 2005, Myrto Lazopoulou, head of user centered design at the investment bank Dresdner Kleinwort Wasserstein (DrKW), contemplates how to spread the usage of wikis inside the company. As a "social software" like chats and blogs (both already in use at DrKW), wikis facilitate collaboration. At its barest, a wiki is a Web site that anybody visiting could edit without having to know HTML or Web-authoring tools. The IT department at DrKW had decided to experiment with the technology in late 2004, and now, soon a year later, it had to decide whether and how to roll out the tool for widespread use at the investment bank. Is DrKW ready for such technology?

Migros

Reinhardt, Forest L., Vincent Dessain, and Anders Sjoman
March 2006

In October 2005, Urs Riedener, head of marketing at Swiss retailer Migros, is contemplating the company's competitive position. Primarily a retailer for foods and near-foods products, the cooperative Migros, with close to 600 retail outlets in Switzerland (but only four outside its domestic market), is facing stiffer competition, both from existing competitors (such as Coop) and new arrivals (such as hard discounters Lidi and Aldi). Riedener and Migros management have so far always had faith in Migros' position in the marketplace, built around its governance structure (the customers were also the owners, creating a close link between the retailer and the market) and its emphasis on never selling harmful products. Socially, ecologically, and ethically produced products were key aspects of Migros' product offering. Riedener knows that Migros benefited from a unique position--and he wants to make sure that Migros defends it from both new and old competitors.

Investor Relations at TOTAL

Miller, Gregory S., Vincent Dessain, and Anders Sjoman
January 2006

Examines investor relations and financial communications in a large company with a diverse group of financial stakeholders. Total is an "energy major" based in Paris, France. The importance of its product and its impact on economies and environments combine with the size of the company to make Total highly visible to investors, governments, environmental groups, and other shareholders. The highly technical nature of Total's many internal activities and the breadth of its complex operations further impacts communication efforts. In addition, as a Continental European firm (in particular, French), Total has strong societal expectations regarding its interactions with employees/citizens vs. shareholders. Examines how Total creates a consistent and clear financial communication that provides information to these diverse stakeholder bases and their different desires for the company. Also asks students to consider how this communication strategy will need adjustment due to a period of high oil prices and a resulting windfall profit during 2005.